§ 1815 — Special purpose funds

§ 1815. Special purpose funds. 1. The following shall constitute\nspecial purpose funds of the authority and shall, except as provided in\nparagraph (g) of subdivision two of this section, be kept separate and\napart from all other funds of the authority: (a) the proceeds of sale of\nspecial purpose bonds and notes, (b) any moneys made available by the\nstate for the purposes of this subtitle only, (c) any moneys made\navailable to the authority for the purposes of this subtitle only from\nany other source or sources, including, without limitation, any federal\nagency, (d) any moneys received by the authority as payments on account\nof loans and loan guarantees made by the authority pursuant to this\nsubtitle and any moneys now on hand or hereafter received by the\nauthority as payments on account of mortgage loans heretofore made by\nthe authority pursuant to subtitle three, (e) any fees, charges or other\nmoneys received by the authority in respect of projects assisted by the\nauthority pursuant to this subtitle or on account of applications\ntherefor, (f) any income or interest earned by, or increment to, any\nspecial purpose funds due to the investment thereof, and (g) the\nproceeds of the sale of general purpose bonds or notes heretofore\nissued; provided, however, amounts received by the authority in respect\nof loan guarantees, issued or to be issued, shall be kept separate and\napart from all other funds of the authority in a special purpose loan\nguarantee insurance fund as provided in subdivision three of this\nsection.\n 2. Subject to the terms of any agreement with special purpose\nbondholders and noteholders, special purpose funds may be used by the\nauthority only (a) to make mortgage loans to local development\ncorporations for costs of projects and loans for machinery and equipment\nas provided in section eighteen hundred fourteen hereof to improve\nemployment opportunities in any area of the state, (b) to pay the\nexpenses of the authority referred to in clause (i) of subdivision one\nof section eighteen hundred twenty-eight of this title, (c) to repay\nadvances from the state for use as special purpose funds in accordance\nwith any provision of law or repayment agreement between the authority\nand the director of the budget, (d) to pay the principal and redemption\nprice of or interest on special purpose bonds or notes, (e) to purchase\nspecial purpose bonds or notes, (f) to pay the principal and redemption\nprice of or interest on any general purpose bonds or notes heretofore\nissued, (g) to make deposits in the special purpose loan guarantee\ninsurance fund created by paragraph a of subdivision three of this\nsection, or (h) in connection with projects financed with special\npurpose funds to exercise any of the powers conferred in this title.\n 3. Special purpose loan guarantee insurance fund.\n a. There is hereby created a special purpose loan guarantee insurance\nfund for special purpose funds in respect of loan guarantees which shall\nbe kept separate and apart from all other funds of the authority.\n b. The authority is hereby directed and authorized to charge the\nfollowing expenses against the special purpose loan guarantee insurance\nfund:\n (i) any expenses which are clearly attributable, in the opinion of the\nauthority, to the exercise of any of the authority's powers in respect\nof loan guarantees issued or reasonably expected to be issued;\n (ii) any payments and all expenses attendant thereto which are\nrequired to be paid by the authority because of a default in the payment\nor in the other terms of a loan guaranteed by the authority;\n (iii) all expenses and payments for the protection of the authority's\ninterests in connection with defaulted or delinquent loans guaranteed by\nthe authority, or in property possessed in consequences thereof;\n (iv) all amounts required in the opinion of the authority to be set\naside to provide a reasonable reserve for losses expected to be incurred\nby the authority as a result of defaults or expected defaults in the\nterms and payment of loans guaranteed by the authority;\n (v) all amounts required to repay advances from the state for use as\nspecial purpose funds in respect of loan guarantees in accordance with\nany provision of law or repayment agreement between the authority and\nthe director of the budget;\n (vi) all amounts required to pay the principal and redemption price of\nor interest on special purpose bonds and notes specially issued for the\npurpose of providing funds to the special purpose loan guarantee\ninsurance fund; and\n (vii) all amounts required to purchase special purpose bonds or notes\nissued for the purpose of providing funds to the special purpose loan\nguarantee insurance fund.\n c. The following shall constitute special purpose funds in respect of\na loan guarantee:\n (i) the proceeds of the issuance and sale of special purpose bonds and\nnotes issued for the purpose of providing funds to the special purpose\nloan guarantee insurance fund;\n (ii) any moneys made available by the state for the purposes of\nproviding funds to the special purpose loan guarantee insurance fund and\nany other moneys made available for the purpose of providing funds to\nthe special purpose loan guarantee insurance fund from any other source\nor sources, including, without limitation, any federal agency;\n (iii) any moneys received in respect of loan guarantees including\namounts received as loan guarantee insurance premiums or fees, or assets\nor property of any kind or nature received by the authority as a result\nof a default or delinquency with respect to loans guaranteed by the\nauthority including the proceeds from the sale, disposal, lease or\nrental of real or personal property which the authority may receive in\nrespect of a loan guarantee;\n (iv) any moneys deposited in the special purpose loan guarantee\ninsurance fund pursuant to paragraph (g) of subdivision two of this\nsection.\n