N.Y. New York City health and hospitals corporation act 1016/69 § 13: Reserve fund

§ 13. Reserve fund. 1. The corporation shall create and establish a

special fund (herein referred to as the capital reserve fund), and shall

pay into such capital reserve fund

(a) any moneys appropriated and made available by the state or city

for the purpose of such capital reserve fund,

(b) any proceeds of sale of bonds or notes to the extent provided in

the resolution or resolutions of the corporation authorizing the

issuance thereof, and

(c) any other moneys which may be made available to the corporation

for the purpose of such capital reserve fund from any other source or

sources. All moneys held in the capital reserve fund, except as

hereinafter provided, shall be used solely for the payment of the

principal of bonds of the corporation, the payment of interest on such

bonds, or the payment of any redemption premium required to be paid when

such bonds are redeemed prior to maturity; provided, however, that

moneys in such capital reserve fund shall not be withdrawn therefrom at

any time in such amount as would reduce the amount of such fund to less

than the maximum amount of principal and interest maturing and becoming

due in any succeeding fiscal year of the corporation on all bonds of the

corporation then outstanding, except for the purpose of paying principal

of and interest on such bonds of the corporation maturing and becoming

due and for the payment of which other moneys of the corporation are not

available. Any income or interest earned by, or increment to, the

capital reserve fund due to the investment thereof may be transferred to

other funds or accounts to the extent it does not reduce the amount of

the capital reserve fund below the maximum amount of principal and

interest maturing and become due in any such succeeding fiscal year on

all bonds of the corporation then outstanding.

2. The corporation shall not issue bonds at any time if the maximum

amount of principal and interest maturing and becoming due in a

succeeding fiscal year of the corporation on such bonds then to be

issued and on all other bonds of the corporation then outstanding will

exceed the amount of the capital reserve fund at the time of issuance

unless the corporation, at the time of issuance of such bonds, shall

deposit in the capital reserve fund from the proceeds of the bonds so to

be issued, or otherwise, an amount which, together with the amount then

in such fund, will not be less than the maximum amount of principal and

interest maturing and becoming due in any such succeeding fiscal year on

such bonds then to be issued and on all other bonds of the corporation

then outstanding.

3. For the purposes of computing the amount of the capital reserve

fund, any securities in which any portion of such fund is invested shall

be valued at the par value thereof or at the cost thereof to the

corporation if such cost was less than said par value.

4. In order to assure the continued operation and solvency of the

corporation for the carrying out of its public purposes as provided in

this act, provision is made in subdivision one of this section for the

accumulation in the capital reserve fund of an amount equal to the

maximum amount of principal and interest maturing and becoming due in

any succeeding fiscal year of the corporation on all bonds of the

corporation then outstanding. In order further to assure such

maintenance of the capital reserve fund, the chairman of the corporation

shall annually request from the city to be paid over to the corporation,

for deposit in the capital reserve fund, such sum, if any, as shall be

certified by the chairman of the corporation to the mayor as necessary

to restore the capital reserve fund to an amount equal to the maximum

amount of principal and interest maturing and becoming due in any

succeeding fiscal year of the corporation on all of the bonds of the

corporation then outstanding; provided, however, that such sum shall

have been first appropriated by the city or shall otherwise have been

made lawfully available for such purpose. The chairman of the

corporation shall, on or before the fifteenth day of February in each

year, make and deliver to the mayor his certificate stating the amount,

if any, needed to restore the capital reserve fund to the amount

aforesaid and the amount so stated, if any, shall be paid to the

corporation by the city. Notwithstanding any of the provisions of this

act, in the event of the failure or inability of the city to pay over

the stated amount to the corporation on or before the first day of

August of the same year, the chairman of the corporation shall then

forthwith make and deliver to the comptroller and to the director of

management and budget a further certificate restating the amount so

required and such amount shall then be paid over to the corporation,

upon the warrant of the comptroller on vouchers certified as correct by

the director of management and budget, out of the general fund of the

city.