§ 1977-B — Reserve funds and appropriations

§ 1977-b. Reserve funds and appropriations. 1. In addition to setting\naside of such other reserves or sinking funds as it shall deem advisable\nand necessary, and the regulation and disposition thereof, the authority\nshall create and establish a special fund to be known as and hereinafter\ncalled the "Battery Park project area capital reserve fund" and shall\npay into such fund (a) any moneys appropriated and made available by the\nstate only for the purposes of such fund, (b) any proceeds of sale of\nany bonds issued to finance the Battery Park project area to the extent\nprovided in the resolution of the authority authorizing the issuance\nthereof, (c) any funds directed to be transferred by the authority to\nsuch fund, and (d) any other moneys made available to the authority only\nfor the purposes of such fund from any other source or sources. The\nmoneys held in or credited to such capital reserve fund, except as\nhereinafter provided, shall be used solely for the payment of the\nprincipal of such bonds or of the sinking fund payments hereinafter\nmentioned with respect to such bonds, the purchase or redemption of such\nbonds, the payment of interest on such bonds, or the payment of any\nredemption premium required to be paid when any of such bonds are\nredeemed prior to maturity; provided, however, that moneys in such fund\nshall not be withdrawn therefrom at any time in such amount as would\nreduce the amount of such fund to less than the amount of the Battery\nPark project area capital reserve fund requirement hereinbelow referred\nto, except for the purpose of making with respect to such bonds payment,\nwhen due, of principal, interest and the sinking fund payments\nhereinafter mentioned for the payment of which other moneys of the\nauthority are not available. Moneys in such capital reserve fund not\nrequired for immediate use or disbursement may be invested in\nobligations of the state or the United States of America or obligations\nthe principal and interest of which are guaranteed by the state or the\nUnited States of America or obligations of agencies of the United States\nof America which may from time to time be legally purchased by savings\nbanks of the state as investment of funds belonging to them or in their\ncontrol. In computing the amount of such capital reserve fund for the\npurposes of this section, securities in which all or a portion of such\nfund are invested shall be valued at par or, if purchased at less than\npar, at their cost to the authority.\n 2. The authority shall not issue any of such bonds at any time secured\nby such capital reserve fund if the amount in such capital reserve fund\nat the time of issuance does not equal or exceed the amount of said\ncapital reserve fund requirement unless the authority at the time of\nissuance of such bonds shall deposit in such fund from the proceeds of\nsuch bonds or other sources an amount which together with the amount\nthen in such fund will not be less than the amount of said capital\nreserve fund requirement.\n 3. In order to assure the continued operation and solvency of the\nauthority for the fulfillment of its corporate purposes with respect to\nthe Battery Park project area, the chairman of the authority shall\nannually, on or before December first, make and deliver to the governor\nand director of the budget his certificate stating the sum, if any,\nrequired to restore such capital reserve fund to the amount as of the\nparticular date of computation equal to the greatest (herein sometimes\ncalled the "Battery Park project area capital reserve fund requirement")\nof the respective amounts for the then current or any future fiscal year\nof the authority, of annual debt service with respect to such bonds,\nsuch annual debt service for any fiscal year being the amount of money\nequal to the aggregate of (a) all interest payable during such fiscal\nyear on all such bonds outstanding on said date of computation, plus (b)\nthe principal amount of all such bonds outstanding on said date of\ncomputation which mature during such fiscal year, plus (c) all amounts\nspecified in any resolution of the authority authorizing any of such\nbonds as payable during such fiscal year as a sinking fund payment with\nrespect to any of such bonds which mature after such fiscal year, all\ncalculated on the assumption that bonds will after said date of\ncomputation cease to be outstanding by reason, but only by reason, of\nthe payment of bonds when due and the payment when due and application\nin accordance with the resolution authorizing those bonds of all of such\nsinking fund payments payable at or after said date of computation; and\nthere shall be annually apportioned and paid to the authority for\ndeposit in such capital reserve fund the sums so certified by the\nchairman of the authority. All sums so apportioned and paid shall be\ndeposited by the authority in such capital reserve fund. The principal\namount of bonds secured by such capital reserve fund to which state\nfunds are apportionable pursuant to this subdivision shall be limited to\nthe total amount of bonds and notes outstanding on the effective date of\nthis act, plus the total amount of bonds and notes contracted after the\neffective date of this act to finance projects in progress on the\neffective date of this act as determined by the New York state public\nauthorities control board created pursuant to section fifty of this\nchapter whose affirmative determination shall be conclusive as to all\nmatters of law and fact solely for the purposes of the limitations\ncontained in this subdivision, but in no event shall the total amount of\nbonds so secured by such a capital reserve fund or funds exceed two\nhundred million dollars, excluding bonds issued to refund such\noutstanding bonds until the date of redemption of such outstanding\nbonds. As outstanding bonds so secured are paid, the amount so secured\nshall be reduced accordingly but the redemption of such outstanding\nbonds from the proceeds of refunding bonds shall not reduce the amount\nso secured.\n 4. All amounts paid over to the authority by the state pursuant to the\nprovisions of this section shall constitute and be accounted for as\nadvances by the state to the authority and, subject only to the rights\nof the holders of any bonds or notes of the authority theretofore or\nthereafter issued, shall be repaid to the state from all available\noperating revenues of the authority in excess of the capital reserve\nfund requirement and operating expenses.\n 5. As used in this section, (a) the term "operating expenses" for the\nfiscal year shall mean ordinary expenditures for operation and\nadministration of the authority; and (b) the term "available operating\nrevenues" for the fiscal year shall mean all amounts received on account\nof rentals and fees charged by the authority, if any, and income or\ninterest earned or added to funds of the authority due to the investment\nthereof, and not required under the terms or provisions of any convenant\nor agreement with holders of any bonds or notes of the authority to be\napplied to any purposes other than payment of expenses of the authority.\n 6. This section is applicable only to the Battery Park project area\ncapital reserve fund.\n