§ 1977-C — Reserve funds and appropriations for loans, advances and mortgage financing to housing companies

§ 1977-c. Reserve funds and appropriations for loans, advances and\nmortgage financing to housing companies.\n 1. Definitions.\n (a) "Revenues". All amounts received on account of fees and other\ncharges imposed by the authority for loans, advances and mortgage loans,\nif any, and all or any part of the moneys received in payment of loans,\nadvances and mortgage loans and interest thereon, including prepayments.\n (b) "Housing loan capital reserve fund requirement". The amount of\nmoney, as of any particular date of computation and with reference to\noutstanding bonds issued by the authority for the purposes of financing\nloans, advances and mortgage loans to housing companies, equal to the\ngreatest of the respective amounts for the then current or any future\nfiscal year of the authority, of annual debt service with respect to\nsuch bonds.\n For purposes of the housing loan capital reserve fund requirement,\n"annual debt service" shall mean an amount of money equal to the\naggregate of:\n (i) All interest payable during such fiscal year on all such bonds\noutstanding on said date of computation; plus,\n (ii) The principal amount of all such bonds outstanding on said date\nof computation which mature during such fiscal year; plus,\n (iii) All amounts specified in any resolution of the authority\nauthorizing any of such bonds as payable during such fiscal year as a\nsinking fund payment with respect to any of such bonds which mature\nafter such fiscal year, such sinking fund payments to be calculated on\nthe assumption that bonds will after said date of computation cease to\nbe outstanding by reason, but only by reason, of the payment of bonds\nwhen due and the payment when due and application in accordance with the\nresolution authorizing those bonds of all of such sinking fund payments\npayable at or after said date of computation.\n (c) "Operating expenses". All ordinary expenditures for operation and\nadministration of the authority in connection with its loans, advances\nand mortgage loans to housing companies.\n (d) "Amortized value". When used with respect to securities purchased\nat a premium above or a discount below par, the value as of any given\ndate obtained by dividing the total amount of the premium or discount at\nwhich such securities were purchased by the number of days remaining to\nmaturity on such securities at the time of such purchase and by\nmultiplying the amount so calculated by the number of days having passed\nsince the date of such purchase; and (a) in the case of securities\npurchased at a premium, by deducting the product thus obtained from the\npurchase price, and (b) in the case of securities purchased at a\ndiscount, by adding the product thus obtained to the purchase price.\n 2. Reserve funds. (a) In addition to the setting aside of such other\nreserves or sinking funds as it shall deem advisable and necessary, and\nthe regulation and disposition thereof, the authority may create and\nestablish one or more capital reserve funds for bonds issued by the\nauthority for the purposes of financing loans, advances and mortgage\nloans to housing companies.\n (b) The authority shall pay into each such fund: (i) any monies\nappropriated and made available by the state only for the purposes of\nsuch fund; (ii) any proceeds of the sale of any bonds issued to the\nextent provided in the resolution of the authority authorizing the\nissuance of such bonds; (iii) any moneys directed to be transferred by\nthe authority to such fund; and (iv) any other moneys made available to\nthe authority only for the purposes of such fund from any other source\nor sources.\n (c) The moneys held in or credited to each such capital reserve fund,\nexcept as hereinafter provided, shall be used solely for the payment of\nthe principal of bonds issued to finance loans, advances and mortgage\nloans to housing companies or of the sinking fund payments with respect\nto such bonds, the purchase or redemption of such bonds, the payment of\ninterest on such bonds or the payment of any redemption premium required\nto be paid when any of such bonds are redeemed prior to maturity;\nprovided, however, that moneys in such capital reserve fund shall not be\nwithdrawn therefrom at any time in such amount as would reduce the\namount of such fund to less than the amount of the housing loan capital\nreserve fund requirement therefor, except for the purpose of making with\nrespect to such bonds payment, when due, of principal, interest and the\nsinking fund payments for the payment of which other moneys of the\nauthority are not available. All income or interest earned by, or\nincrement to, each such capital reserve fund due to the investment\nthereof may be transferred by the authority to other funds or accounts\nof the authority to the extent it does not reduce the amount of such\ncapital reserve fund below the housing loan capital reserve fund\nrequirement therefor.\n (d) Moneys in such a capital reserve fund not required for immediate\nuse or disbursement may be invested in obligations of the state or the\nUnited States of America or obligations the principal of and interest on\nwhich are guaranteed by the state or the United States of America or\nobligations of agencies of the United States of America or obligations\nwhich may from time to time be legally purchased by savings banks of the\nstate, as investment of funds belonging to them or in their control. In\ncomputing the amount of a capital reserve fund for the purposes of this\nsection, securities in which all or a portion of such fund are invested\nshall be valued at par if purchased at par or, if purchased at other\nthan par, at their amortized value.\n (e) The authority shall not issue any bonds at any time secured by\nsuch a capital reserve fund if the amount in the capital reserve fund\nwhich will secure such bonds at the time of issuance does not equal or\nexceed the amount of the housing loan capital reserve fund requirement\nfor such fund unless the authority at the time of issuance of such bonds\nshall deposit in such fund from the proceeds of such bonds or other\nsources an amount which together with the amount then in such fund will\nnot be less than the amount of the housing loan capital reserve fund\nrequirement for such fund.\n 3. Preservation of solvency. (a) In order to assure the continued\noperation and solvency of the authority for the fulfillment of its\ncorporate purposes, the chairman of the authority shall annually, on or\nbefore December first, make and deliver to the governor and director of\nthe budget his certificate stating the sum, if any, required to restore\neach capital reserve fund to the housing loan capital reserve fund\nrequirement therefor. There shall be annually apportioned and paid to\nthe authority for deposit in each such capital reserve fund the sum so\ncertified by the chairman of the authority as required to restore such\ncapital reserve fund to the housing loan capital reserve fund\nrequirement therefor. All sums so apportioned and paid shall be\ndeposited by the authority in the respective capital reserve funds. The\nprincipal amount of bonds secured by a capital reserve fund or funds to\nwhich state funds are apportionable pursuant to this paragraph shall be\nlimited to the total amount of bonds and notes outstanding on the\neffective date of this act, plus the total amount of bonds and notes\ncontracted after the effective date of this act to finance projects in\nprogress on the effective date of this act as determined by the New York\nstate public authorities control board created pursuant to section fifty\nof this chapter whose affirmative determination shall be conclusive as\nto all matters of law and fact solely for the purposes of the\nlimitations contained in this paragraph, but in no event shall the total\namount of bonds so secured by such a capital reserve fund or funds\nexceed eighty-five million dollars, excluding bonds issued to refund\nsuch outstanding 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 (b) All amounts paid over to the authority by the state pursuant to\nthe provisions 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\nrevenues of the authority in excess of housing loan capital reserve fund\nrequirements and operating expenses.\n 4. Applicability. This section is applicable solely to capital reserve\nfunds for bonds issued to finance housing loans, advances and mortgage\nloans and is not applicable to the Battery Park project area capital\nreserve fund.\n