§ 486 — Reserve funds, appropriations and other funds and accounts

New York § 486

• Jurisdiction: New York
• Law EDN: Education
• Title 1: General Provisions Article 1 Short Title and Definitions (§§
• Art. 10-B: City of Yonkers Educational Construction Fund

Text

§ 486. Reserve funds, appropriations and other funds and accounts. 1.\n(a) The fund shall create and establish a special fund (herein referred\nto as capital reserve fund), and shall pay into such capital reserve\nfund (1) any monies appropriated and made available by the state or the\ncity of Yonkers for the purposes of such fund, (2) any proceeds of sale\nof notes or bonds to the extent provided in the resolution of the fund\nauthorizing the issuance thereof, and (3) any other monies which may be\nmade available to the fund for the purpose of such capital reserve fund\nfrom any other source or sources. All monies held in the capital reserve\nfund, except as hereinafter provided, shall be used solely for the\npayment of the principal of bonds of the fund as the same mature, the\npurchase of bonds of the fund, the payment of interest on such bonds of\nthe fund or the payment of any redemption premium required to be paid\nwhen such bonds are redeemed prior to maturity; provided, however, that\nmoneys in such capital reserve fund shall not be withdrawn therefrom at\nany time in such amount as would reduce the amount of such fund to less\nthan the maximum amount of principal and interest maturing and becoming\ndue in any succeeding fiscal year on all bonds of the fund then\noutstanding, except for the purpose of paying principal of and interest\non such bonds of the fund maturing and becoming due and for the payment\nof which other monies of the fund are not available. Any income or\ninterest earned by, or increment to, the capital reserve fund due to the\ninvestment thereof may be transferred to other funds or accounts to the\nextent it does not reduce the amount of the capital reserve fund below\nthe maximum amount of principal and interest maturing and becoming due\nin any succeeding calendar year on all bonds of the fund then\noutstanding.\n (b) The fund shall not issue bonds at any time if the maximum amount\nof principal and interest maturing and becoming due in a succeeding\nfiscal year on such bonds then to be issued and on all other bonds of\nthe fund then outstanding will exceed the amount of the capital reserve\nfund at the time of issuance unless the fund, at the time of issuance of\nsuch bonds, shall deposit in the capital reserve fund from the proceeds\nof the bonds so to be issued, or otherwise, an amount which, together\nwith the amount then in such fund, will be not less than the maximum\namount of principal and interest maturing and becoming due in any\nsucceeding fiscal year on such bonds then to be issued and on all other\nbonds of the fund then outstanding.\n (c) To assure the continued operation and solvency of the fund for the\ncarrying out of the public purposes of this article, provision is made\nin paragraph (a) of this subdivision for the accumulation in the capital\nreserve fund of an amount equal to the maximum amount of principal and\ninterest maturing and becoming due in any succeeding fiscal year on all\nbonds of the fund then outstanding. In order further to assure such\nmaintenance of the capital reserve fund, the board of education shall\nannually request from the city of Yonkers and pay over to the fund, for\ndeposit in the capital reserve fund, such sum, if any, as shall be\ncertified by the chairman of the fund to the board, the mayor and the\ndirector of the budget of the city of Yonkers as necessary to restore\nthe capital reserve fund to an amount equal to the maximum amount of\nprincipal and interest maturing and becoming due in the next succeeding\nfiscal year on the bonds of the fund then outstanding; provided,\nhowever, that such sum shall have been first appropriated by the city to\nthe board or shall otherwise have been made lawfully available to the\nboard for such purpose. The chairman of the fund shall annually, not\nlater than the fifteenth day of February in each year, make and deliver\nto the board and the mayor his certificate stating the amount, if any,\nrequired to restore the capital reserve fund to the amount aforesaid and\nthe amount so stated, if any, shall be paid to the fund by the board\nduring the then current fiscal year of the fund. In the event of the\nfailure or inability of the board to pay over the stated amount to the\nfund on or before August first of the same year, the chairman of the\nfund shall forthwith make and deliver to the mayor a further certificate\nrestating the amount so required and such amount shall be paid over to\nthe fund by the commissioner of finance out of the next payment of state\naid apportioned to the city of Yonkers on behalf of the city school\ndistrict of the city of Yonkers for the support of common schools. Any\namount so paid over to the fund shall be deducted from the corresponding\napportionment of state aid otherwise credited to the board of education\nfor its purposes and shall not obligate the state to make or entitle the\ncity or the board of education to receive any additional or increased\napportionment or payment of state aid for school purposes.\n (d) In computing the amount of the capital reserve fund for the\npurposes of this section, securities in which all or a portion of such\nfund shall be invested shall be valued at par, or if purchased at less\nthan par, at their cost to the fund.\n 2. The fund may create and establish with the commissioner of finance\nor with a trustee one or more additional funds or accounts and, subject\nto agreements with bondholders and noteholders, may pay into such funds\nor accounts (i) fees and charges collected by the fund, (ii) monies\nwhich shall be transferred from the capital reserve fund pursuant to the\nprovisions of paragraph (a) of subdivision one of this section, and\n(iii) any other monies which may be made available to the fund from any\nother source or sources. The monies held in or credited to any such\nreserve fund or account may, in the discretion of the fund but subject\nto agreements with bondholders and noteholders, be used by the fund (a)\nfor the repayment of advances from the city of Yonkers, (b) to reimburse\nthe board of education of the city of Yonkers the reasonable costs of\nservices performed by the board for the fund pursuant to section four\nhundred seventy-nine of this article, (c) to pay all costs, expenses and\ncharges of financing, including fees and expenses of trustees and paying\nagents, (d) for transfers to the capital reserve fund, (e) for the\npayment of principal of and interest on bonds or notes issued by the\nfund when the same shall become due, whether at maturity or on call for\nredemption, and for the payment of any redemption premium required to be\npaid where such bonds or notes are redeemed prior to their stated\nmaturities, and to purchase bonds or notes issued by the fund, (f) for\nsuch other corporate purposes as the fund in its discretion shall\ndetermine and provide, or (g) for payment to the board of education for\nschool purposes.\n