§ 13 — Reserve fund

§ 13. Reserve fund. 1. The corporation shall create and establish a\nspecial fund (herein referred to as the capital reserve fund), and shall\npay into such capital reserve fund\n (a) any moneys appropriated and made available by the state or city\nfor the purpose of such capital reserve fund,\n (b) any proceeds of sale of bonds or notes to the extent provided in\nthe resolution or resolutions of the corporation authorizing the\nissuance thereof, and\n (c) any other moneys which may be made available to the corporation\nfor the purpose of such capital reserve fund from any other source or\nsources. All moneys held in the capital reserve fund, except as\nhereinafter provided, shall be used solely for the payment of the\nprincipal of bonds of the corporation, the payment of interest on such\nbonds, or the payment of any redemption premium required to be paid when\nsuch bonds are redeemed prior to maturity; provided, however, that\nmoneys in such capital reserve fund shall not be withdrawn therefrom at\nany time in such amount as would reduce the amount of such fund to less\nthan the maximum amount of principal and interest maturing and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 of the corporation on all bonds of the\ncorporation then outstanding, except for the purpose of paying principal\nof and interest on such bonds of the corporation maturing and becoming\ndue and for the payment of which other moneys of the corporation are not\navailable. Any income or interest earned by, or increment to, the\ncapital reserve fund due to the investment thereof may be transferred to\nother funds or accounts to the extent it does not reduce the amount of\nthe capital reserve fund below the maximum amount of principal and\ninterest maturing and become due in any such succeeding fiscal year on\nall bonds of the corporation then outstanding.\n 2. The corporation shall not issue bonds at any time if the maximum\namount of principal and interest maturing and becoming due in a\nsucceeding fiscal year of the corporation on such bonds then to be\nissued and on all other bonds of the corporation then outstanding will\nexceed the amount of the capital reserve fund at the time of issuance\nunless the corporation, at the time of issuance of such bonds, shall\ndeposit in the capital reserve fund from the proceeds of the bonds so to\nbe issued, or otherwise, an amount which, together with the amount then\nin such fund, will not be less than the maximum amount of principal and\ninterest maturing and becoming due in any such succeeding fiscal year on\nsuch bonds then to be issued and on all other bonds of the corporation\nthen outstanding.\n 3. For the purposes of computing the amount of the capital reserve\nfund, any securities in which any portion of such fund is invested shall\nbe valued at the par value thereof or at the cost thereof to the\ncorporation if such cost was less than said par value.\n 4. In order to assure the continued operation and solvency of the\ncorporation for the carrying out of its public purposes as provided in\nthis act, provision is made in subdivision one of this section for the\naccumulation in the capital reserve fund of an amount equal to the\nmaximum amount of principal and interest maturing and becoming due in\nany succeeding fiscal year of the corporation on all bonds of the\ncorporation then outstanding. In order further to assure such\nmaintenance of the capital reserve fund, the chairman of the corporation\nshall annually request from the city to be paid over to the corporation,\nfor deposit in the capital reserve fund, such sum, if any, as shall be\ncertified by the chairman of the corporation to the mayor as necessary\nto restore the capital reserve fund to an amount equal to the maximum\namount of principal and interest maturing and becoming due in any\nsucceeding fiscal year of the corporation on all of the bonds of the\ncorporation then outstanding; provided, however, that such sum shall\nhave been first appropriated by the city or shall otherwise have been\nmade lawfully available for such purpose. The chairman of the\ncorporation shall, on or before the fifteenth day of February in each\nyear, make and deliver to the mayor his certificate stating the amount,\nif any, needed to restore the capital reserve fund to the amount\naforesaid and the amount so stated, if any, shall be paid to the\ncorporation by the city. Notwithstanding any of the provisions of this\nact, in the event of the failure or inability of the city to pay over\nthe stated amount to the corporation on or before the first day of\nAugust of the same year, the chairman of the corporation shall then\nforthwith make and deliver to the comptroller and to the director of\nmanagement and budget a further certificate restating the amount so\nrequired and such amount shall then be paid over to the corporation,\nupon the warrant of the comptroller on vouchers certified as correct by\nthe director of management and budget, out of the general fund of the\ncity.\n