N.Y. General Municipal Law § 412: Use of revenue of undertaking

§ 412. Use of revenue of undertaking. Any municipality issuing bonds

for the acquisition, construction, reconstruction, improvement,

betterment or extension of an undertaking shall have the right to

appropriate, apply or expend the revenue of such undertaking for the

following purposes: (a) to pay when due all bonds and interest thereon,

for the payment of which such revenue is or shall have been pledged,

charged or otherwise encumbered, including reserves therefor, (b) to

provide for all expenses of operation and maintenance of such

undertaking, including reserves therefor, (c) to pay and discharge

notes, bonds or other obligations and interest thereon, not issued under

this article for the payment of which the revenue of such undertaking

may have been pledged, charged or encumbered, (d) to pay and discharge

notes, bonds or other obligations and interest thereon, which do not

constitute a lien, charge or encumbrance on the revenue of such

undertaking, which may have been issued for the purpose of financing the

acquisition, construction, reconstruction, improvement, betterment or

extension of such undertaking, and (e) provide a reserve for

improvements to such undertaking. Unless and until full and adequate

provision has been made for the foregoing purposes, no municipality

shall have the right to transfer the revenue of such undertaking to its

general fund.