N.Y. Private Housing Finance Law § 1106-e: Reserve fund

§ 1106-e. Reserve fund. There shall be a reserve fund for each project

which in no event shall initially be less than five percent of the

turnkey/enhanced rental project costs, exclusive of any reserve fund.

Such reserve fund may be provided by the corporation or any other source

and, if provided by another source, shall be provided in cash or the

payment of such cash shall be assured by deposit of adequate marketable

collateral prior to the payment by the corporation of any project costs,

excluding advances for planning costs.