§ 3865 — Resources of the authority

§ 3865. Resources of the authority. 1. Subject to the provisions of\nthis title, the directors of the authority shall receive, accept,\ninvest, administer, expend and disburse for its corporate purposes all\nmoneys of the authority from whatever source derived including (a)\nrevenues and (b) proceeds of bonds, notes or other obligations.\n 2. Subject to the provisions of any contract with bondholders,\nrevenues of the authority shall be paid to the authority and shall not\nbe commingled with any other money.\n 3. The money in any of the authority's accounts shall be paid out on\nchecks signed by the treasurer of the authority, or by other lawful and\nappropriate means such as wire or electronic transfer, on requisitions\nof the chairperson of the authority or of such other officer as the\ndirectors shall authorize to make such requisition, or pursuant to a\nbond resolution or trust indenture.\n 4. All deposits of authority money shall be secured by obligations of\nthe United States or of the state or of the city at a market value at\nleast equal at all times to the amount of the deposit, and all banks and\ntrust companies are authorized to give such security for such deposits.\nThe authority shall have the power, notwithstanding the provisions of\nthis section, to contract with the holders of any of its bonds, notes or\nother obligations as to the custody, collection, securing, investment\nand payment of any money of the authority or any money held in trust or\notherwise for the payment of bonds, notes or other obligations or in any\nway to secure bonds, notes or other obligations, and to carry out any\nsuch contract notwithstanding that such contract may be inconsistent\nwith the other provisions of this title. Money held in trust or\notherwise for the payment of bonds, notes or other obligations or in any\nway to secure bonds, notes or other obligations, and deposits of such\nmoney, may be secured in the same manner as money of the authority, and\nall banks and trust companies are authorized to give such security for\nsuch deposits.\n 5. Revenues of the authority shall be applied in the following order\nof priority: first to pay debt service or for set asides to pay debt\nservice on the authority's bonds, notes, or other obligations and to\nreplenish any reserve funds securing such bonds, notes or other\nobligations of the authority, in accordance with the provision of any\nindenture or bond resolution of the authority; then to pay the\nauthority's operating expenses not otherwise provided for; and then,\nsubject to the authority's agreement with the city, for itself or on\nbehalf of the city's dependent school district and any other covered\norganization, to transfer as frequently as practicable the balance of\nrevenues not required to meet contractual or other obligations of the\nauthority to the city or the city's dependent school district as\nprovided in subdivision seven of this section.\n 6. (a) Any such payment of state aid revenues to the authority shall\nnot obligate the state to make available, nor entitle the city to\nreceive, any additional state aid.\n (b) Nothing contained in this title shall be construed to create a\ndebt of the state within the meaning of any constitutional or statutory\nprovisions. Any provision with respect to state aid or state aid\nrevenues shall be deemed executory only to the extent of moneys\navailable, and no liability shall be incurred by the state beyond the\nmoneys available for that purpose, and any such payment by the\ncomptroller of state aid revenues is subject to annual appropriation of\nstate aid by the state legislature.\n (c) Nothing contained in this title shall be deemed to restrict the\nright of the state to amend, repeal, modify, or otherwise alter section\nfifty-four of the state finance law or any provision relating to state\naid to municipalities. The authority shall include within any\nresolution, contract, or agreement with holders of its bonds, notes or\nother obligations a provision which states that no default occurs as a\nresult of the state's exercising its right to amend, repeal, modify, or\notherwise alter section fifty-four of the state finance law or any other\nprovision relating to state aid to municipalities.\n 7. On a monthly basis, the authority shall prepare and provide to the\ncity and the city's dependent school district a detailed separate\naccounting of all revenues received and payments and debt service set\nasides made, as attributable to the city and the city's dependent school\ndistrict. Such accounting shall reflect (a) the amount of state aid\nrevenues, city tax revenues and school district tax revenues received\nduring such month, (b) the respective portion of debt service paid or\nset aside during such month by the authority for its notes, bonds and\nother obligations attributable to the city and the city's dependent\nschool district; (c) the respective portion of reserve fund\nreplenishment made or set aside during such month by the authority in\nconnection with its notes, bonds and other obligations attributable to\nthe city and the city's dependent school district; and (d) the\nrespective portion of administrative expenses of the authority paid or\nset aside during such month by the authority attributable to the city\nand the city's dependent school district. As soon as practicable after\neach monthly payment or set aside, the authority shall make respective\npayments of the remaining monthly balance or revenues to the city and\nthe city's dependent school district in accordance with such separate\naccounting. To the extent that such respective monthly payments of the\nremaining balance of revenues result in an overpayment or underpayment\nto the city or the city's dependent school district, the authority shall\nin the immediately subsequent month, after making debt service payments\nor debt service set asides, replenishing any reserve funds and paying\nthe administrative expenses of the authority for such month, make an\nadjustment in favor of the city or the city's dependent school district,\nas the case may be, before determining the remaining amount of the\nbalance of revenues for such subsequent month and paying such remaining\nmonthly balance of revenues to the city and the city's dependent school\ndistrict. Nothing in this title shall be deemed to restrict the\nauthority of the state comptroller and the commissioner of taxation and\nfinance to adjust for overpayments or underpayments pursuant to the tax\nlaw.\n