N.Y. Environmental Conservation Law § 15-2129: Financing

§ 15-2129. Financing.

1. After the cost of any improvement made or to be made under title 21

of this article has been apportioned among the public corporations and

parcels of real estate benefited as herein provided and after such

apportionment has been assessed upon such public corporations and

parcels of real estate, the board may finance the cost of any such

improvement pursuant to the Local Finance Law. Any bonds issued for such

purposes shall not be construed in any event as bonds or indebtedness of

the state, and the state shall not be obligated to pay the principal or

interest therefor. Such bonds shall be lawful investments for trustees

and savings banks of the state and for any of the funds of the state

which by law may be invested.

2. The board shall annually include in the installment of the

assessment to be collected in that year a sum sufficient to provide for

the payment of the principal of and interest on obligations issued for

such purposes and maturing in that year.

3. The proceeds of the sale of obligations issued for the purposes of

title 21 of this article, together with all other revenues of the board

from whatever source derived, shall be deposited in such national or

state bank or banks or trust company or trust companies at Albany or

within the regulating district as are approved by the Comptroller and

the board, subject, however, to the provisions of section 165.00 of the

Local Finance Law. Before any such deposit is made the Comptroller shall

require from any such bank or trust company security for repayment of

the same to such board or to the Comptroller upon demand for the money

so deposited in the manner provided in section 106 of the State Finance

Law. All moneys received by the board under the provisions of title 21

of this article, except from assessments levied to pay the cost of

construction, shall constitute a fund to be known as the "general fund"

of the district.

4. All moneys received from assessments levied to pay the cost of

construction, together with such part of any surplus in the "general

fund" as shall be determined by the board over and above the

requirements for the construction, maintenance and operation of the

reservoir, including the amount raised for a reasonable return to the

state, shall constitute a separate fund, to be known as the "debt

service fund," the moneys in which shall be applied to the payment of

principal of and interest on obligations issued for the purposes of

title 21 of this article, except when the total cost of construction is

paid without the issuance of obligations, in which case the moneys

applicable thereto shall be paid into the "general fund." Any

installment or installments of the assessment which shall become payable

before any obligations have been issued, shall be paid by the

Comptroller into the "general fund" and applied to the payment of the

cost of construction. The Comptroller is authorized and directed to pay

from the "debt service fund" the principal of and interest on

obligations issued for the purposes of title 21 of this article.

5. All moneys in said "debt service fund" shall be applied by the

Comptroller to the payment of the principal of and interest on such

obligations, except as aforesaid, and to the purchase of the same in the

open market when possible and while awaiting such purchase such excess

shall be invested or kept at interest in the same manner as sinking

funds of the state of like nature are invested. If any moneys remain in

the "debt service fund" after all outstanding obligations have been paid

up and redeemed, such moneys shall be paid into the "general fund" and

may be used to pay the expenses of maintenance and operation and other

expenses.

6. The board may invest and reinvest any moneys of the "general fund"

which are not required to be deposited in accordance with the provisions

of section 165.00 of the Local Finance Law. Any such investment shall be

made only in obligations of the federal government and the State of New

York, and in certificates of deposit of banks or trust companies or in

bank or trust accounts of banks in this state, secured by obligations of

the United States of America or of the state of New York of a market

value equal at all times to the amount of the deposit and with the

approval of the Comptroller. The board may sell and dispose of any

securities purchased for investment pursuant to this paragraph at any

time with the consent of the Comptroller, and the proceeds thereof shall

be paid to the Comptroller and deposited in the "general fund."

7. Any obligations purchased for investment pursuant to this section

shall be delivered by the seller to the Comptroller who shall be the

custodian thereof until the same are sold or otherwise disposed of. The

Comptroller also shall collect the income of such investments and

deposit such income in the "general fund." Except that certificates of

deposit purchased for the Black river regulating district shall be

retained in the office of the said Black river regulating district at

Watertown, New York and a statement shall be filed with the Comptroller

listing such certificate or certificates, the amount thereof, the

interest due and payable thereon, the mateurity date thereof, the issuer

of such certificate and such other information as shall be required by

the Comptroller.

8. All payments from the "general fund" of the district shall be made

by requisition of the board signed by the board or by the officer or

officers thereof authorized by it so to do and audited and countersigned

by the Comptroller.

9. The board shall keep in suitable books a complete record of its

financial transactions, and the books shall be audited from time to time

by the Comptroller.