N.Y. Private Housing Finance Law § 47: Reserve funds and appropriations

§ 47. Reserve funds and appropriations. 1. (a) The agency shall create

and establish a special fund (herein referred to as capital reserve

fund), and shall pay into such capital reserve fund (1) any monies

appropriated and made available by the state for the purposes of such

fund, (2) any proceeds of sale of notes or bonds other than state

university construction notes or state university construction bonds,

equity notes or equity bonds, non-profit project notes or non-profit

project bonds, hospital and nursing home project notes or hospital and

nursing home project bonds, urban rental project notes or urban rental

project bonds, health facilities notes or health facilities bonds, youth

facilities project notes or youth facilities project bonds, community

mental health services and developmental disabilities services project

notes or community mental health services and developmental disabilities

services project bonds, community senior citizens services project notes

or community senior citizens services project bonds, mental hygiene

improvement notes or mental hygiene improvement bonds and revenue

housing bonds, and bonds and notes for the housing program to the extent

provided in the resolution of the agency authorizing the issuance

thereof, and (3) any other moneys which may be made available to the

agency for the purpose of such 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 agency other than state university construction bonds, equity

bonds, non-profit project bonds, hospital and nursing home project

bonds, urban rental project bonds, health facilities bonds, youth

facilities project bonds, community mental health services and

developmental disabilities services project bonds, community senior

citizens services project bonds, mental hygiene improvement bonds and

revenue housing bonds, and bonds and notes for the housing program as

the same mature, required payments to any sinking fund established in a

resolution of the agency for the amortization of term bonds (hereinafter

referred to as "sinking fund payments"), the purchase or redemption of

bonds of the agency other than state university construction bonds,

equity bonds, non-profit project bonds, hospital and nursing home

project bonds, urban rental project bonds, health facilities bonds,

youth facilities project bonds, community mental health services and

developmental disabilities services project bonds, community senior

citizens services project bonds, mental hygiene improvement bonds and

revenue housing bonds, and bonds and notes for the housing program the

payment of interest on such bonds of the agency or the payment of any

redemption premium required to be paid when such bonds are redeemed

prior to maturity; provided, however, that monies in such 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 and sinking fund payments required to

be made in any succeeding calendar year on all bonds of the agency then

outstanding other than state university construction bonds, equity

bonds, non-profit project bonds, hospital and nursing home project

bonds, urban rental project bonds, health facilities bonds, youth

facilities project bonds, community mental health services and

developmental disabilities services project bonds, community senior

citizens services project bonds, mental hygiene improvement bonds and

revenue housing bonds and bonds and notes for the housing program,

except for the purpose of paying principal of, interest and sinking fund

payments becoming due on such bonds of the agency maturing and becoming

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

available. For the purposes of this subdivision, in computing the

maximum amount of principal maturing at a single future date (herein

called "term bonds") in any succeeding calendar year, the principal

amount of any such term bonds which are subject to mandatory redemption

prior to such future date by sinking fund payments shall not be included

in the computation determining the maximum amount of principal maturing

in said future year. Any income or interest earned by, or increment to,

the capital reserve fund due to the investment thereof may be

transferred by the agency to the general reserve fund or other fund of

the agency to the extent it does not reduce the amount of the capital

reserve fund below the maximum amount of principal and interest maturing

and becoming due and sinking fund payments required to be made in any

succeeding calendar year on all such bonds of the agency then

outstanding other than state university construction bonds, equity

bonds, non-profit project bonds, hospital and nursing home project

bonds, urban rental project bonds, health facilities bonds, youth

facilities project bonds, community mental health services and

developmental disabilities services project bonds, community senior

citizens services project bonds, mental hygiene improvement bonds and

revenue housing bonds and bonds and notes for the housing program.

(b) The agency shall not issue bonds other than state university

construction bonds, equity bonds, non-profit project bonds, hospital and

nursing home project bonds, urban rental project bonds, health

facilities bonds, youth facilities project bonds, community mental

health services and developmental disabilities services project bonds,

community senior citizens services project bonds, mental hygiene

improvement bonds and revenue housing bonds and bonds and notes for the

housing program at any time secured by the capital reserve fund if the

maximum amount of principal and interest maturing and becoming due and

sinking fund payments required to be made in a succeeding calendar year

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

then outstanding other than state university construction bonds, equity

bonds, non-profit project bonds, hospital and nursing home project

bonds, urban rental project bonds, health facilities bonds, youth

facilities project bonds, community mental health services and

developmental disabilities services project bonds, community senior

citizens services project bonds, mental hygiene improvement bonds and

revenue housing bonds and bonds and notes for the housing program will

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

unless the agency, at the time of issuance of such bonds, shall deposit

in such 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 be not less than the maximum amount of principal and interest

maturing and becoming due and sinking fund payments required to be made

in any succeeding calendar year on such bonds then to be issued and on

all other bonds of the agency then outstanding other than state

university construction bonds, equity bonds, non-profit project bonds,

hospital and nursing home project bonds, urban rental project bonds,

health facilities bonds, youth facilities project bonds, community

mental health services and developmental disabilities services project

bonds, community senior citizens services project bonds, mental hygiene

improvement bonds and revenue housing bonds and bonds and notes for the

housing program.

(c) The agency shall not issue bonds and notes other than state

university construction bonds and state university construction notes,

hospital and nursing home project bonds and hospital and nursing home

project notes, health facilities bonds and health facilities notes,

youth facilities project bonds and youth facilities project notes,

community mental health services and developmental disabilities services

project bonds and community mental health services and developmental

disabilities services project notes, community senior citizens services

project notes or community senior citizens services project bonds and

mental hygiene improvement bonds and mental hygiene improvement notes

and bonds and notes for the housing program for any of its corporate

purposes in an aggregate principal amount exceeding thirty-six billion

two hundred eighty million dollars, excluding bonds and notes issued to

refund outstanding bonds and notes.

(d) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article, provision is

made in paragraph (a) of this subdivision for the accumulation in the

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

principal and interest maturing and becoming due and sinking fund

payments required to be made in any succeeding calendar year on all

bonds of the agency then outstanding other than state university

construction bonds, equity bonds, non-profit project bonds, hospital and

nursing home project bonds, urban rental project bonds, health

facilities bonds, youth facilities project bonds, community mental

health services and developmental disabilities services project bonds,

community senior citizens services project bonds, mental hygiene

improvement bonds and revenue housing bonds and bonds and notes for the

housing program. In order further to assure such maintenance of the

capital reserve fund, there shall be annually apportioned and paid to

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

shall be certified by the chairman of the agency to the governor and

director of the budget as necessary to restore the capital reserve fund

to an amount equal to the maximum amount of principal and interest

maturing and becoming due and sinking fund payments required to be made

in any succeeding calendar year on the bonds of the agency then

outstanding other than state university construction bonds, equity

bonds, non-profit project bonds, hospital and nursing home project

bonds, urban rental project bonds, health facilities bonds, youth

facilities project bonds, community mental health services and

developmental disabilities services project bonds, community senior

citizens services project bonds, mental hygiene improvement bonds and

revenue housing bonds and bonds and notes for the housing program. The

chairman of the agency shall annually, on or before December first, make

and deliver to the governor and director of the budget his certificate

stating the amount, if any, required to restore the capital reserve fund

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

apportioned and paid to the agency during the then current state fiscal

year. The principal amount of bonds secured by the capital reserve fund

to which state funds are apportionable pursuant to this paragraph shall

be limited to the total amount of bonds and notes outstanding on the

effective date of this act, plus the total amount of bonds and notes

contracted after the effective date of this act to finance projects in

progress on the effective date of this act as determined by the New York

state public authorities control board created pursuant to section fifty

of the public authorities law whose affirmative determination shall be

conclusive as to all matters of law and fact solely for the purposes of

the limitations contained in this paragraph, but in no event shall the

total amount of bonds so secured by such a capital reserve fund or funds

exceed three hundred thirty-eight million dollars, excluding bonds

issued to refund such outstanding bonds until the date of redemption of

such outstanding bonds. As outstanding bonds so secured are paid, the

amount so secured shall be reduced accordingly but the redemption of

such outstanding bonds from the proceeds of refunding bonds shall not

reduce the amount so secured.

(e) In computing the amount of the capital reserve fund for the

purposes of this section, securities in which all or a portion of such

fund shall be invested shall be valued at par or if purchased at less

than par, at their cost to the agency.

2. The agency shall create and establish a special fund (herein

referred to as general reserve fund) and shall pay into such fund all

fees and charges collected by the agency pursuant to paragraph (a) of

subdivision eleven of section forty-four of this article, or otherwise,

other than fees and charges collected in connection with the making of

mortgage loans (or commitments therefor) to mutual companies, non-profit

companies, urban rental companies or community development corporations,

and any monies which the agency shall transfer from the capital reserve

fund pursuant to the provisions of paragraph (a) of subdivision one of

this section. Such monies and any other monies paid into the general

reserve fund may, in the discretion of the agency but subject to

agreements with bondholders and noteholders, be used by the agency (a)

for the repayment of advances from the state in accordance with the

provisions of repayment agreements between the agency and the director

of the budget, (b) to reimburse the division of housing and community

renewal the reasonable costs of the services performed by the

commissioner of housing and community renewal and division of housing

and community renewal pursuant to section fifty-five of this article,

(c) to pay all costs, expenses and charges of financing, including fees

and expenses of trustees and paying agents, (d) for transfers to the

capital reserve fund, (e) for the payment of the principal of and

interest on bonds or notes other than state university construction

bonds or state university construction notes, equity bonds or equity

notes, non-profit project bonds or non-profit project notes, hospital

and nursing home project bonds or hospital and nursing home project

notes, urban rental project bonds or urban rental project notes, health

facilities bonds or health facilities notes, youth facilities project

bonds or youth facilities project notes, community mental health

services and developmental disabilities services project bonds or

community mental health services and developmental disabilities services

project notes, community senior citizens services project notes or

community senior citizens services project bonds, mental hygiene

improvement bonds or mental hygiene improvement notes and revenue

housing bonds and bonds and notes for the housing program issued by the

agency when the same shall become due whether at maturity or on call for

redemption and for the payment of any redemption premium required to be

paid where such bonds or notes are redeemed prior to their stated

maturities, and to purchase bonds or notes other than state university

construction bonds or state university construction notes, equity bonds

or equity notes, non-profit project bonds or non-profit project notes,

hospital and nursing home project bonds or hospital and nursing home

project notes, urban rental project bonds or urban rental project notes,

health facilities bonds or health facilities notes, youth facilities

project bonds or youth facilities project notes, community mental health

services and developmental disabilities services project bonds or

community mental health services and developmental disabilities services

project notes, community senior citizens services project notes or

community senior citizens services project bonds, mental hygiene

improvement bonds or mental hygiene improvement notes and revenue

housing bonds and bonds and notes for the housing program issued by the

agency, or (f) for such other corporate purposes of the agency as the

agency in its discretion shall determine and provide.

3. (a) The agency shall create and establish a special fund (herein

referred to as equity reserve fund), and shall pay into such equity

reserve fund (1) any monies appropriated and made available by the state

for the purposes of such fund, (2) any proceeds of sale of equity notes

or equity bonds, to the extent provided in the resolution of the agency

authorizing the issuance thereof, and (3) any other monies which may be

made available to the agency for the purpose of such fund from any other

source or sources. All moneys held in the equity reserve fund, except as

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

principal of equity bonds of the agency, as the same mature, the

purchase of equity bonds of the agency, the payment of interest on

equity bonds of the agency 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 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 calendar year on all equity bonds of

the agency then outstanding, except for the purpose of paying principal

and interest on equity bonds of the agency maturing and becoming due and

for the payment of which other monies of the agency are not available.

Any income or interest earned by, or increment to, the equity reserve

fund due to the investment thereof may be transferred to the equity loan

fund or other fund of the agency to the extent it does not reduce the

amount of the equity reserve fund below the maximum amount of principal

and interest maturing and becoming due in any succeeding calendar year

on all equity bonds of the agency then outstanding.

(b) The agency shall not issue equity bonds at any time secured by the

equity reserve fund if the maximum amount of principal and interest

maturing and becoming due in a succeeding calendar year on the equity

bonds then to be issued and on all other equity bonds of the agency then

outstanding will exceed the amount of the equity reserve fund at the

time of issuance, unless the agency, at the time of issuance of such

bonds, shall deposit in such 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 be not less than the maximum amount of principal and

interest maturing and becoming due in any succeeding calendar year on

the equity bonds then to be issued and on all other equity bonds of the

agency then outstanding.

(c) The agency shall not issue equity bonds and equity notes in an

aggregate principal amount exceeding fifty million dollars, excluding

equity bonds and notes issued to refund outstanding equity bonds and

notes.

(d) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article, provision is

made in paragraph (a) of this subdivision for the accumulation in the

equity reserve fund of an amount equal to the maximum amount of

principal and interest maturing and becoming due in any succeeding

calendar year on all equity bonds of the agency then outstanding. In

order further to assure such maintenance of the equity reserve fund,

there shall be annually apportioned and paid to the agency for deposit

in the equity reserve fund such sum, if any, as shall be certified by

the chairman of the agency to the governor and director of the budget as

necessary to restore the equity reserve fund to an amount equal to the

maximum amount of principal and interest maturing and becoming due in

any succeeding calendar year on the equity bonds of the agency then

outstanding. The chairman of the agency shall annually, on or before

December first, make and deliver to the governor and director of the

budget his certificate stating the amount, if any, required to restore

the equity reserve fund to the amount aforesaid and the amount so

stated, if any, shall be apportioned and paid to the agency during the

then current state fiscal year. The principal amount of bonds secured by

the equity reserve fund to which state funds are apportionable pursuant

to this paragraph shall be limited to the total amount of bonds and

notes outstanding on the effective date of this act, plus the total

amount of bonds and notes contracted after the effective date of this

act to finance projects in progress on the effective date of this act,

as determined by the New York state public authorities control board

created pursuant to section fifty of the public authorities law whose

affirmative determination shall be conclusive as to all matters of law

and fact solely for the purposes of the limitations contained in this

paragraph, but in no event shall the total amount of bonds so secured by

such a equity reserve fund or funds exceed three hundred fifteen

thousand dollars, excluding bonds issued to refund such outstanding

bonds until the date of redemption of such outstanding bonds. As

outstanding bonds so secured are paid, the amount so secured shall be

reduced accordingly but the redemption of such outstanding bonds from

the proceeds of refunding bonds shall not reduce the amount so secured.

(e) In computing the amount of the equity reserve fund for the

purposes of this section, securities in which all or a portion of such

fund shall be invested shall be valued at par if purchased at par, or if

purchased at other than par, at amortized value.

4. The agency shall create and establish a special fund (herein

referred to as equity loan fund) and shall pay into such fund any monies

which the agency shall transfer from the equity reserve fund pursuant to

the provisions of paragraph (a) of subdivision three of this section and

any monies received in payment of principal of or interest on equity

loans. Such monies and any other monies paid into the equity loan fund

may, in the discretion of the agency, but subject to agreements with the

holders of equity bonds and equity notes be used by the agency (a) for

the repayment of advances from the state in accordance with the

provisions of repayment agreements between the agency and the director

of the budget, (b) to reimburse the division of housing the reasonable

costs of the services performed by the commissioner of housing and

division of housing pursuant to section fifty-five of this article, (c)

to pay all costs, expenses and charges of financing equity loans,

including fees and expenses of trustees and paying agents, (d) for

transfers to the equity reserve fund, (e) for the payment of the

principal of and interest on equity bonds or equity notes issued by the

agency when the same shall become due whether at maturity or on call for

redemption and for the payment of any redemption premium required to be

paid where such bonds or notes are redeemed prior to their stated

maturities, and to purchase equity bonds or equity notes issued by the

agency, or (f) for such other corporate purposes of the agency as the

agency in its discretion shall determine and provide.

5. (a) The agency may create and establish one or more additional

reserve funds to be known as debt service reserve funds and may pay into

such reserve funds (1) any moneys appropriated and made available by the

state for the purposes of such funds, (2) any proceeds of sale of

non-profit project notes or non-profit project bonds, to the extent

provided in the resolution of the agency authorizing the issuance

thereof, and (3) any other moneys which may be made available to the

agency for the purposes of such funds from any other source or sources.

The moneys held in or credited to any debt service reserve fund

established under this subdivision except as hereinafter provided, shall

be used solely for the payment of the principal of non-profit project

bonds of the agency secured by such reserve fund, as the same mature,

required payments to any sinking fund established in a resolution of the

agency for the amortization of term bonds (hereinafter referred to as

"sinking fund payments"), the purchase or redemption of such non-profit

project bonds of the agency, the payment of interest on such non-profit

project bonds of the agency or the payment of any redemption premium

required to be paid when such bonds are redeemed prior to maturity;

provided, however, that moneys in any such 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, interest maturing and

becoming due and sinking fund payments required to be made in any

succeeding calendar year on the non-profit project bonds of the agency

then outstanding and secured by such reserve fund, except for the

purpose of paying principal and interest and sinking fund payments

becoming due on the non-profit project bonds of the agency secured by

such reserve fund maturing and becoming due and for the payment of which

other moneys of the agency are not available. For the purposes of this

subdivision five, in computing the maximum amount of principal maturing

at a single future date (herein called "term bonds") in any succeeding

calendar year, the principal amount of any such term bonds which are

subject to mandatory redemption prior to such future date by sinking

fund payments shall not be included in the computation determining the

maximum amount of principal maturing in said future year. Any income or

interest earned by, or increment to, any such debt service reserve fund

due to the investment thereof may be transferred to any other fund or

account of the agency to the extent it does not reduce the amount of

such debt service reserve fund below the maximum amount of principal and

interest maturing and becoming due and sinking fund payments required to

be made in any succeeding calendar year on all non-profit project bonds

of the agency then outstanding and secured by such reserve fund.

(b) The agency shall not issue non-profit project bonds at any time if

the maximum amount of principal and interest maturing and becoming due

and sinking fund payments required to be made in a succeeding calendar

year on the non-profit project bonds outstanding and then to be issued

and secured by a debt service reserve fund will exceed the amount of

such reserve account at the time of issuance, unless the agency, at the

time of issuance of such bonds, shall deposit in such reserve fund from

the proceeds of the bonds so to be issued, or otherwise, an amount which

together with the amount then in such reserve fund, will be not less

than the maximum amount of principal and interest maturing and becoming

due and sinking fund payments required to be made in any succeeding

calendar year on the non-profit project bonds then to be issued and on

all other non-profit project bonds of the agency then outstanding and

secured by such reserve fund.

(c) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article provision is

made in paragraph (a) of this subdivision for the accumulation in each

debt service reserve fund of an amount equal to the maximum amount of

principal and interest maturing and becoming due and sinking fund

payments required to be made in any succeeding calendar year on all

non-profit project bonds of the agency then outstanding and secured by

such reserve fund. In order further to assure the maintenance of such

debt service reserve funds, there shall be annually apportioned and paid

to the agency for deposit in each debt service reserve fund such sum, if

any, as shall be certified by the chairman of the agency to the governor

and director of the budget as necessary to restore such reserve fund to

an amount equal to the maximum amount of principal and interest maturing

and becoming due and sinking fund payments required to be made in any

succeeding calendar year on the non-profit project bonds of the agency

then outstanding and secured by such reserve fund. The chairman of the

agency shall annually, on or before December first, make and deliver to

the governor and director of the budget his certificate stating the sum,

if any, required to restore each such debt service reserve fund to the

amount aforesaid, and the sum or sums so certified, if any, shall be

apportioned and paid to the agency during the then current state fiscal

year. The principal amount of bonds secured by a debt service reserve

fund or funds to which state funds are apportionable pursuant to this

paragraph shall be limited to the total amount of bonds and notes

outstanding on the effective date of this act, plus the total amount of

bonds and notes contracted after the effective date of this act to

finance projects in progress on the effective date of this act as

determined by the New York state public authorities control board

created pursuant to section fifty of the public authorities law whose

affirmative determination shall be conclusive as to all matters of law

and fact solely for the purpose of the limitations contained in this

paragraph, but in no event shall the total amount of bonds so secured by

such a debt service reserve fund or funds exceed seven hundred

ninety-three million dollars, excluding bonds issued to refund such

outstanding bonds until the date of redemption of such outstanding

bonds. As outstanding bonds so secured are paid, the amount so secured

shall be reduced accordingly but the redemption of such outstanding

bonds from the proceeds of refunding bonds shall not reduce the amount

so secured.

(d) In computing any debt service reserve fund for the purposes of

this section, securities in which all or a portion of such reserve fund

shall be invested shall be valued at par, or if purchased at less than

par, at their cost to the agency.

6. (a) The agency may create and establish a special fund to be known

as hospital and nursing home capital reserve fund and may pay into such

reserve funds (1) any monies appropriated and made available by the

state for the purposes of such funds, (2) any proceeds of sale of

hospital and nursing home project notes or hospital and nursing home

project bonds, to the extent provided in the resolution of the agency

authorizing the issuance thereof, and (3) any other monies which may be

made available to the agency for the purposes of such accounts from any

other source or sources. The monies held in or credited to the capital

reserve fund established under this subdivision except as hereinafter

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

hospital and nursing home project bonds of the agency secured by such

reserve fund, as the same mature, required payments to any sinking fund

established in a resolution of the agency for the amortization of term

bonds (hereinafter referred to as "sinking fund payments") the purchase

or redemption of such hospital and nursing home project bonds of the

agency, the payment of interest on such hospital and nursing home

project bonds of the agency, or the payment of any redemption premium

required to be paid when such bonds are redeemed prior to maturity;

provided, however, that monies in any such 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 and sinking fund payments required to be made in any

succeeding calendar year on the hospital and nursing home project bonds

of the agency then outstanding and secured by such reserve fund, except

for the purpose of paying principal, interest on hospital and nursing

home project bonds of the agency secured by such reserve fund maturing

and becoming due and sinking fund payments becoming due and for the

payment of which other monies of the agency are not available. For the

purposes of this subdivision six, in computing the maximum amount of

principal maturing at a single future date (herein called "term bonds")

in any succeeding calendar year, the principal amount of any such term

bonds which are subject to mandatory redemption prior to such future

date by sinking fund payments shall not be included in the computation

determining the maximum amount of principal maturing in said future

year. Any income or interest earned by, or increment to, any such

hospital and nursing home capital reserve fund due to the investment

thereof may be transferred to the hospital and nursing home general

reserve fund or other fund of the agency, to the extent it does not

reduce the amount of such hospital and nursing home capital reserve fund

below the maximum amount of principal and interest maturing and becoming

due and sinking fund payments required to be made in any succeeding

calendar year on all hospital and nursing home project bonds of the

agency then outstanding and secured by such reserve fund.

(b) The agency shall not issue hospital and nursing home project bonds

and notes in an aggregate principal amount exceeding one billion nine

hundred fifty million dollars excluding hospital and nursing home

project bonds and hospital and nursing home project notes issued to

refund outstanding hospital and nursing home project bonds and hospital

and nursing home project notes, nor shall it issue hospital and nursing

home project bonds at any time secured by the hospital and nursing home

capital reserve fund if the maximum amount of principal and interest

maturing and becoming due and sinking fund payments required to be made

in a succeeding calendar year on the hospital and nursing home project

bonds outstanding and then to be issued and secured by the hospital and

nursing home capital reserve fund will exceed the amount of such reserve

fund at the time of issuance, unless the agency, at the time of issuance

of such bonds, shall deposit in such reserve fund from the proceeds of

the bonds so to be issued, or otherwise, an amount which together with

the amount then in such reserve fund, will be not less than the maximum

amount of principal and interest maturing and becoming due and sinking

fund payments required to be made in any succeeding calendar year on the

hospital and nursing home project bonds then to be issued and on all

other hospital and nursing home project bonds of the agency then

outstanding and secured by such reserve fund.

(c) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article provision is

made in paragraph (a) of this subdivision for the accumulation in the

hospital and nursing home capital reserve fund of an amount equal to the

maximum amount of principal and interest maturing and becoming due and

sinking fund payments to be made in any succeeding calendar year on all

hospital and nursing home project bonds of the agency then outstanding

and secured by such reserve fund. In order further to assure the

maintenance of such hospital and nursing home capital reserve fund,

there shall be annually apportioned and paid to the agency for deposit

in such hospital and nursing home capital reserve fund such sum, if any,

as shall be certified by the chairman of the agency to the governor and

director of the budget as necessary to restore such reserve fund to an

amount equal to the maximum amount of principal and interest maturing

and becoming due and sinking fund payments required to be made in any

succeeding calendar year on the hospital and nursing home project bonds

of the agency then outstanding and secured by such reserve fund. The

chairman of the agency shall annually, on or before December first, make

and deliver to the governor and director of the budget his certificate

stating the sums, if any, required to restore such hospital and nursing

home capital reserve fund to the amount aforesaid, and the sums so

certified, if any, shall be apportioned and paid to the agency during

the then current state fiscal year. The principal amount of bonds

secured by the hospital and nursing home capital reserve fund to which

state funds are apportionable pursuant to this paragraph shall be

limited to the total amount of bonds and notes outstanding on the

effective date of this act, plus the total amount of bonds and notes

contracted after the effective date of this act to finance projects on

progress on the effective date of this act as determined by the New York

state public authorities control board created pursuant to section fifty

of the public authorities law whose affirmative determination shall be

conclusive as to all matters of law and fact solely for the purposes of

the limitations contained in this paragraph, but in no event shall the

total amount of bonds so secured by such a capital reserve fund or funds

exceed nine hundred sixteen million dollars, excluding bonds issued to

refund such outstanding bonds until the date of redemption of such

outstanding bonds. As outstanding bonds so secured are paid, the amount

so secured shall be reduced accordingly but the redemption of such

outstanding bonds from the proceeds of refunding bonds shall not reduce

the amount so secured.

(d) In computing any hospital and nursing home capital reserve fund

for the purposes of this section, securities in which all or a portion

of such reserve fund shall be invested shall be valued at par, or if

purchased at less than par, at their cost to the agency.

7. The agency shall create and establish one or more additional

special funds (herein referred to as hospital and nursing home general

reserve funds) and shall, to the extent provided in the applicable bond

resolution of the agency authorizing the issuance of hospital and

nursing home project bonds, pay into any such fund the fees and charges

collected by the agency pursuant to paragraph (b) of subdivision eleven

of section forty-four of this article and any monies which the agency

shall transfer from the hospital and nursing home capital reserve fund

pursuant to the provisions of paragraph (a) of subdivision six of this

section. Such monies and any other monies paid into a hospital and

nursing home general reserve fund may, in the discretion of the agency,

but subject to agreements with bondholders and noteholders, be used by

the agency (a) for the repayment of advances from the state in

accordance with the provisions of repayment agreements between the

agency and the director of the budget, (b) to reimburse the department

of health the reasonable costs of the services performed by the

commissioner of health and the department of health pursuant to

subdivision three of section fifty-five of this article, (c) to pay all

costs, expenses and charges of financing, including fees and expenses of

trustees and paying agents, (d) for transfers to the hospital and

nursing home capital reserve fund, (e) for the payment of principal and

interest on hospital and nursing home project bonds and notes issued by

the agency when the same shall become due whether at maturity or on call

for redemption and for the payment of any redemption premium required to

be paid where such hospital and nursing home project bonds and notes are

redeemed prior to their stated maturities and to purchase hospital and

nursing home project bonds or notes issued by the agency, or (f) for

such other corporate purposes of the agency as the agency in its

discretion shall determine and provide.

8. (a) The agency may create and establish one or more additional

reserve funds to be known as health facilities reserve funds and may pay

into such reserve funds (1) any monies appropriated and made available

by the state for the purposes of such funds, (2) any proceeds of sale of

health facilities notes or health facilities bonds, to the extent

provided in the resolution of the agency authorizing the issuance

thereof, and (3) any other monies which may be made available to the

agency for the purposes of such funds from any other source or sources.

The monies held in or credited to any health facilities reserve fund

established under this subdivision, except as hereinafter provided,

shall be used solely for the payment of the principal of health

facilities bonds of the agency secured by such reserve fund, as the same

mature, required payments to any sinking fund established in a

resolution of the agency for the amortization of term bonds (hereinafter

referred to as "sinking fund payments") the purchase or redemption of

such health facilities bonds of the agency, the payment of interest on

such health facilities bonds of the agency, or the payment of any

redemption premium required to be paid when such bonds are redeemed

prior to maturity; provided, however, that monies in any such 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 and sinking fund payments required to

be made in any succeeding calendar year on the health facilities bonds

of the agency then outstanding and secured by such reserve fund, except

for the purpose of paying principal, interest and sinking fund payments

becoming due on the health facilities bonds of the agency secured by

such reserve fund maturing and becoming due and for the payment of which

other monies of the agency are not available. For the purposes of this

subdivision eight, in computing the maximum amount of principal maturing

at a single future date (herein called "term bonds") in any succeeding

calendar year, the principal amount of any such term bonds which are

subject to mandatory redemption prior to such future date by sinking

fund payments shall not be included in the computation determining the

maximum amount of principal maturing in said future year. Any income or

interest earned by, or increment to, any such health facilities reserve

fund due to the investment thereof may be transferred to any other fund

or account of the agency to the extent it does not reduce the amount of

such health facilities reserve fund below the maximum amount of

principal and interest maturing and becoming due and sinking fund

payments required to be made in any succeeding calendar year on all

health facilities bonds of the agency then outstanding and secured by

such reserve fund.

(b) The agency shall not issue health facilities bonds at any time if

the maximum amount of principal and interest maturing and becoming due

and sinking fund payments required to be made in a succeeding calendar

year on the health facilities bonds outstanding and then to be issued

and secured by any health facilities reserve fund will exceed the amount

of such reserve account at the time of issuance, unless the agency, at

the time of issuance of such bonds, shall deposit in such reserve fund

from the proceeds of the bonds so to be issued, or otherwise, an amount

which together with the amount then in such reserve fund will be not

less than the maximum amount of principal and interest maturing and

becoming due and sinking fund payments required to be made in any

succeeding calendar year on the health facilities bonds then to be

issued and on all other health facilities bonds of the agency then

outstanding and secured by such reserve fund.

(c) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article, provision is

made in paragraph (a) of this subdivision for the accumulation in each

health facilities reserve fund of an amount equal to the maximum amount

of principal and interest maturing and becoming due and sinking fund

payments required to be made in any succeeding calendar year on all

health facilities bonds of the agency then outstanding and secured by

such reserve fund. In order further to assure the maintenance of such

health facilities reserve funds, there shall be annually apportioned and

paid to the agency for deposit in each health facilities reserve fund

such sum, if any, as shall be certified by the chairman of the agency to

the governor and director of the budget as necessary to restore such

reserve fund to an amount equal to the maximum amount of principal and

interest maturing and becoming due and sinking fund payments required to

be made in any succeeding calendar year on the health facilities bonds

of the agency then outstanding and secured by such reserve fund. The

chairman of the agency shall annually, on or before December first, make

and deliver to the governor and director of the budget his certificate

stating the sums, if any, required to restore each such health

facilities reserve fund to the amount aforesaid, and the sums so

certified, if any, shall be apportioned and paid to the agency during

the then current state fiscal year. The principal amount of bonds

secured by a health facilities reserve fund or funds to which state

funds are apportionable pursuant to this paragraph shall be limited to

the total amount of bonds and notes outstanding on the effective date of

this act, plus the total amount of bonds and notes contracted after the

effective date of this act to finance projects in progress on the

effective date of this act as determined by the New York state public

authorities control board created pursuant to section fifty of the

public authorities law whose affirmative determination shall be

conclusive as to all matters of law and fact solely for the purposes of

the limitations contained in this paragraph, but in no event shall the

total amount of bonds so secured by such a reserve fund or funds exceed

six hundred seventy-five million dollars, excluding bonds issued to

refund such outstanding bonds until the date of redemption of such

outstanding bonds. As outstanding bonds so secured are paid, the amount

so secured shall be reduced accordingly but the redemption of such

outstanding bonds from the proceeds of refunding bonds shall not reduce

the amounts so secured.

(d) In computing any health facilities reserve fund for the purposes

of this section, securities in which all or a portion of such reserve

fund shall be invested shall be valued at par, or if purchased at less

than par, at their cost to the agency.

9. (a) The agency may create and establish one or more additional

reserve funds to be known as urban rental debt service reserve funds and

may pay into such reserve funds (1) any monies appropriated and made

available by the state for the purposes of such funds, (2) any proceeds

of sale of urban rental project notes or urban rental project bonds, to

the extent provided in the resolution of the agency authorizing the

issuance thereof, and (3) any other monies which may be made available

to the agency for the purposes of such funds from any other source or

sources. The monies held in or credited to any urban rental debt service

reserve fund established under this subdivision except as hereinafter

provided, shall be used solely for the payment of the principal of urban

rental project bonds of the agency secured by such reserve fund, as the

same mature, required payments to any sinking fund established in a

resolution of the agency for the amortization of term bonds (hereinafter

referred to as "sinking fund payments"), the purchase or redemption of

such urban rental project bonds of the agency, the payment of interest

on such urban rental project bonds of the agency, or the payment of any

redemption premium required to be paid when such bonds are redeemed

prior to maturity; provided, however, that monies in any such 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 and sinking fund payments required to

be made in any succeeding calendar year on the urban rental project

bonds of the agency then outstanding and secured by such reserve fund,

except for the purpose of paying principal, interest and sinking fund

payments becoming due on the urban rental project bonds of the agency

secured by such reserve fund maturing and becoming due and for the

payment of which other monies of the agency are not available. For the

purposes of this subdivision nine, in computing the maximum amount of

principal maturing at a single future date (herein called "term bonds")

in any succeeding calendar year, the principal amount of any such term

bonds which are subject to mandatory redemption prior to such future

date by sinking fund payments shall not be included in the computation

determining the maximum amount of principal maturing in said future

year. Any income or interest earned by, or increment to, any such urban

rental debt service reserve fund due to the investment thereof may be

transferred to any other fund or account of the agency to the extent it

does not reduce the amount of such urban rental debt service reserve

fund below the maximum amount of principal and interest maturing and

becoming due and sinking fund payments required to be made in any

succeeding calendar year on all urban rental project bonds of the agency

then outstanding and secured by such reserve fund.

(b) The agency shall not issue urban rental project bonds at any time

if the maximum amount of principal and interest maturing and becoming

due and sinking fund payments required to be made in any succeeding

calendar year on the urban rental project bonds outstanding and then to

be issued and secured by an urban rental debt service reserve fund will

exceed the amount of such reserve account at the time of issuance,

unless the agency, at the time of issuance of such bonds, shall deposit

in such reserve fund from the proceeds of the bonds so to be issued, or

otherwise, an amount which together with the amount then in such reserve

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

maturing and becoming due and sinking fund payments required to be made

in any succeeding calendar year on the urban rental project bonds then

to be issued and on all other urban rental project bonds of the agency

then outstanding and secured by such reserve fund.

(c) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article provision is

made in paragraph (a) of this subdivision for the accumulation in each

urban rental debt service reserve fund of an amount equal to the maximum

amount of principal and interest maturing and becoming due and sinking

fund payments required to be made in any succeeding calendar year on all

urban rental project bonds of the agency then outstanding and secured by

such reserve fund. In order further to assure the maintenance of such

urban rental debt service reserve funds, there shall be annually

apportioned and paid to the agency for deposit in each urban rental debt

service reserve fund such sum, if any, as shall be certified by the

chairman of the agency to the governor and director of the budget as

necessary to restore such reserve fund to an amount equal to the maximum

amount of principal and interest maturing and becoming due and sinking

fund payments required to be made in any succeeding calendar year on the

urban rental project bonds of the agency then outstanding and secured by

such reserve fund. The chairman of the agency shall annually, on or

before December first, make and deliver to the governor and director of

the budget his certificate stating the sums, if any, required to restore

each such urban rental debt service reserve fund to the amount

aforesaid, and the sums so certified, if any, shall be apportioned and

paid to the agency during the then current state fiscal year. The

principal amount of bonds secured by an urban rental debt service

reserve fund or funds to which state funds are apportionable pursuant to

this paragraph shall be limited to the total amount of bonds and notes

outstanding on the effective date of this act, plus the total amount of

bonds and notes contracted after the effective date of this act to

finance projects in progress on the effective date of this act as

determined by the New York state public authorities control board

created pursuant to section fifty of the public authorities law whose

affirmative determination shall be conclusive as to all matters of law

and fact solely for the purposes of the limitations contained in this

paragraph, but in no event shall the total amount of bonds so secured by

such a debt service reserve fund or funds exceed six hundred forty-five

million dollars, excluding bonds issued to refund such outstanding bonds

until the date of redemption of such outstanding bonds. As outstanding

bonds so secured are paid, the amount so secured shall be reduced

accordingly but the redemption of such outstanding bonds from the

proceeds of refunding bonds shall not reduce the amount so secured.

(d) In computing any urban rental debt service reserve fund for the

purposes of this section, securities in which all or a portion of such

reserve fund shall be invested shall be valued at par if purchased at

par, or if purchased at other than par, at amortized value.

10. (a) The agency may create and establish a special fund to be known

as youth facilities capital reserve fund and may pay into such reserve

funds (1) any monies appropriated and made available by the state for

the purposes of such funds, (2) any proceeds of sale of youth facilities

project notes or youth facilities project bonds, to the extent provided

in the resolution of the agency authorizing the issuance thereof, and

(3) any other monies which may be made available to the agency for the

purposes of such accounts from any other source or sources. The monies

held in or credited to the capital reserve fund established under this

subdivision except as hereinafter provided, shall be used solely for the

payment of principal of youth facilities project bonds of the agency

secured by such reserve fund, as the same mature, the purchase of such

youth facilities project bonds of the agency, the payment of interest on

youth facilities project bonds of the agency, or the payment of any

redemption premium required to be paid when such bonds are redeemed

prior to maturity; provided, however, that monies in any such 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 calendar year on

the youth facilities project bonds of the agency then outstanding and

secured by such reserve fund, except for the purpose of paying principal

and interest on youth facilities project bonds of the agency secured by

such reserve fund maturing and becoming due and for the payment of which

other monies of the agency are not available. Any income or interest

earned by, or increment to, any such youth facilities capital reserve

fund due to the investment thereof may be transferred to the youth

facilities general reserve fund or other fund of the agency, to the

extent it does not reduce the amount of such youth facilities capital

reserve fund below the maximum amount of principal and interest maturing

and becoming due in any succeeding calendar year on all youth facilities

project bonds of the agency then outstanding and secured by such reserve

fund.

(b) The agency shall not issue youth facilities project bonds and

notes in an aggregate principal amount exceeding one hundred million

dollars excluding youth facilities project bonds and youth facilities

project notes issued to refund outstanding youth facilities project

bonds and youth facilities project notes, nor shall it issue youth

facilities project bonds at any time secured by the youth facilities

capital reserve fund if the maximum amount of principal and interest

maturing and becoming due in a succeeding calendar year on the youth

facilities project bonds outstanding and then to be issued and secured

by the youth facilities capital reserve fund will exceed the amount of

such reserve fund at the time of issuance, unless the agency, at the

time of issuance of such bonds, shall deposit in such reserve fund from

the proceeds of the bonds so to be issued, or otherwise, an amount which

together with the amount then in such reserve fund, will be not less

than the maximum amount of principal and interest maturing and becoming

due in any succeeding calendar year on the youth facilities project

bonds then to be issued and on all other youth facilities project bonds

of the agency then outstanding and secured by such reserve fund.

(c) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article provision is

made in paragraph (a) of this subdivision for the accumulation in the

youth facilities capital reserve fund of an amount equal to the maximum

amount of principal and interest maturing and becoming due in any

succeeding calendar year on all youth facilities project bonds of the

agency then outstanding and secured by such reserve fund. In order

further to assure the maintenance of such youth facilities capital

reserve fund, there shall be annually apportioned and paid to the agency

for deposit in such youth facilities capital reserve fund such sum, if

any, as shall be certified by the chairman of the agency to the governor

and director of the budget as necessary to restore such reserve fund to

an amount equal to the maximum amount of principal and interest maturing

and becoming due in any succeeding calendar year on the youth facilities

project bonds of the agency then outstanding and secured by such reserve

fund. The chairman of the agency shall annually, on or before December

first, make and deliver to the governor and director of the budget his

certificate stating the sums, if any, required to restore such youth

facilities capital reserve fund to the amount aforesaid, and the sums so

certified, if any, shall be apportioned and paid to the agency during

the then current state fiscal year. The principal amount of bonds

secured by the youth facilities capital reserve fund to which state

funds are apportionable pursuant to this paragraph shall be limited to

the total amount of bonds and notes outstanding on the effective date of

this act, plus the total amount of bonds and notes contracted after the

effective date of this act to finance projects in progress on the

effective date of this act as determined by the New York state public

authorities control board created pursuant to section fifty of the

public authorities law whose affirmative determination shall be

conclusive as to all matters of law and fact solely for the purposes of

the limitations contained in this paragraph, but in no event shall the

total amount of bonds so secured by such a capital reserve fund exceed

twenty-four million dollars, excluding bonds issued to refund such

outstanding bonds until the date of redemption of such outstanding

bonds. As outstanding bonds so secured are paid, the amount so secured

shall be reduced accordingly but the redemption of such outstanding

bonds from the proceeds of refunding bonds shall not reduce the amount

so secured.

(d) In computing any youth facilities capital reserve fund for the

purpose of this section, securities in which all or a portion of such

reserve fund shall be invested shall be valued at par if purchased at

par, or if purchased at other than par, at amortized value.

11. The agency shall create and establish a special fund (herein

referred to as the youth facilities general reserve fund) and shall pay

into such fund all fees and charges collected by the agency pursuant to

paragraph (c) of subdivision eleven of section forty-four of this

article and any monies which the agency shall transfer from the youth

facilities capital reserve fund pursuant to the provisions of paragraph

(a) of subdivision ten of this section. Such monies and any other monies

paid into the youth facilities general reserve fund may, in the

discretion of the agency, but subject to agreements with bondholders and

noteholders, be used by the agency (a) for the repayment of advances

from the state in accordance with the provisions of repayment agreements

between the agency and the director of the budget, (b) to reimburse the

department of social services the reasonable costs of the services

performed by the commissioner of social services and the department of

social services pursuant to subdivision four of section fifty-five of

this article, (c) to pay all costs, expenses and charges of financing,

including fees and expenses of trustees and paying agents, (d) for

transfers to the youth facilities capital reserve fund, (e) for the

payment of principal of and interest on youth facilities project bonds

and notes issued by the agency when the same shall become due whether at

maturity or on call for redemption and for the payment of any redemption

premium required to be paid where such youth facilities project bonds

and notes are redeemed prior to their stated maturities and to purchase

youth facilities project bonds or notes issued by the agency, or (f) for

such other corporate purposes of the agency as the agency in its

discretion shall determine and provide.

12. (a) The agency may create and establish a special fund to be known

as community mental health services and developmental disabilities

services capital reserve fund and may pay into such reserve funds (1)

any monies appropriated and made available by the state for the purposes

of such funds, (2) any proceeds of sale of community mental health

services and developmental disabilities services project notes or

community mental health services and developmental disabilities services

project bonds, to the extent provided in the resolution of the agency

authorizing the issuance thereof, and (3) any other monies which may be

made available to the agency for the purposes of such accounts from any

other source or sources. The monies held in or credited to the capital

reserve fund established under this subdivision except as hereinafter

provided, shall be used solely for the payment of principal of community

mental health services and developmental disabilities services project

bonds of the agency secured by such reserve fund, as the same mature,

the purchase of such community mental health services and developmental

disabilities services project bonds of the agency, the payment of

interest on such community mental health services and developmental

disabilities services project bonds of the agency, or the payment of any

redemption premium required to be paid when such bonds are redeemed

prior to maturity; provided, however, that monies in any such 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 calendar year on

the community mental health services and developmental disabilities

services project bonds of the agency then outstanding and secured by

such reserve fund, except for the purpose of paying principal and

interest on community mental health services and developmental

disabilities services project bonds of the agency secured by such

reserve fund maturing and becoming due and for the payment of which

other monies of the agency are not available. Any income or interest

earned by, or increment to, any such community mental health services

and developmental disabilities services capital reserve fund due to the

investment thereof may be transferred to the community mental health

services and developmental disabilities services general reserve fund or

other fund of the agency, to the extent it does not reduce the amount of

such community mental health services and developmental disabilities

services capital reserve fund below the maximum amount of principal and

interest maturing and becoming due in any succeeding calendar year on

all community mental health services and developmental disabilities

services project bonds of the agency then outstanding and secured by

such reserve fund.

(b) The agency shall not issue community mental health services and

developmental disabilities services project bonds and notes in an

aggregate principal amount exceeding one hundred million dollars

excluding community mental health services and developmental

disabilities services project bonds and community mental health services

and developmental disabilities services project notes issued to refund

outstanding community mental health services and developmental

disabilities services project bonds and community mental health services

and developmental disabilities services project notes, nor shall it

issue community mental health services and developmental disabilities

services project bonds at any time secured by the community mental

health services and developmental disabilities services capital reserve

fund if the maximum amount of principal and interest maturing and

becoming due in a succeeding calendar year on the community mental

health services and developmental disabilities services project bonds

outstanding and then to be issued and secured by the community mental

health services and developmental disabilities services capital reserve

fund will exceed the amount of such reserve fund at the time of

issuance, unless the agency, at the time of issuance of such bonds,

shall deposit in such reserve fund from the proceeds of the bonds so to

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

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

principal and interest maturing and becoming due in any succeeding

calendar year on the community mental health services and developmental

disabilities services project bonds then to be issued and on all other

community mental health services and developmental disabilities services

project bonds of the agency then outstanding and secured by such reserve

fund.

(c) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article provision is

made in paragraph (a) of this subdivision for the accumulation in the

community mental health services and developmental disabilities services

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

principal and interest maturing and becoming due in any succeeding

calendar year on all community mental health services and developmental

disabilities services project bonds of the agency then outstanding and

secured by such reserve fund. In order further to assure the maintenance

of such community mental health services and developmental disabilities

services capital reserve fund, there shall be annually apportioned and

paid to the agency for deposit in such community mental health services

and developmental disabilities services capital reserve fund such sum,

if any, as shall be certified by the chairman of the agency to the

governor and director of the budget as necessary to restore such reserve

fund to an amount equal to the maximum amount of principal and interest

maturing and becoming due in any succeeding calendar year on the

community mental health services and developmental disabilities services

project bonds of the agency then outstanding and secured by such reserve

fund. The chairman of the agency shall annually, on or before December

first, make and deliver to the governor and director of the budget his

or her certificate stating the sums, if any, required to restore such

community mental health services and developmental disabilities services

capital reserve fund to the amount aforesaid, and the sums so certified,

if any, shall be apportioned and paid to the agency during the then

current state fiscal year. The principal amount of bonds secured by the

community mental health services and developmental disabilities services

capital reserve fund to which state funds are apportionable pursuant to

this paragraph shall be limited to the total amount of bonds and notes

outstanding on the effective date of this act, plus the total amount of

bonds and notes contracted after the effective date of this act to

finance projects in progress on the effective date of this act as

determined by the New York state public authorities control board

created pursuant to section fifty of the public authorities law whose

affirmative determination shall be conclusive as to all matters of law

and fact solely for the purposes of the limitations contained in this

paragraph, but in no event shall the total amount of bonds so secured by

such a capital reserve fund or funds exceed thirteen million dollars,

excluding bonds issued to refund such outstanding bonds until the date

of redemption of such outstanding bonds. As outstanding bonds so secured

are paid, the amount so secured shall be reduced accordingly but the

redemption of such outstanding bonds from the proceeds of refunding

bonds shall not reduce the amount so secured.

(d) In computing any community mental health services and

developmental disabilities services capital reserve fund for the

purposes of this section, securities in which all or a portion of such

reserve fund shall be invested shall be valued at par if purchased at

par, or if purchased at other than par, at amortized value.

13. The agency shall create and establish a special fund (herein

referred to as community mental health services and developmental

disabilities services general reserve fund) and shall pay into such fund

all fees and charges collected by the agency pursuant to paragraph (c)

of subdivision eleven of section forty-four of this article and any

monies which the agency shall transfer from the community mental health

services and developmental disabilities services capital reserve fund

pursuant to the provisions of paragraph (a) of subdivision ten of this

section. Such monies and any other monies paid into the community mental

health services and developmental disabilities services general reserve

fund may, in the discretion of the agency, but subject to agreements

with bondholders and noteholders, be used by the agency (a) for the

repayment of advances from the state in accordance with the provisions

of repayment agreements between the agency and the director of the

budget, (b) to reimburse the department of mental hygiene the reasonable

costs of the services performed by the commissioner of mental hygiene

and the department of mental hygiene pursuant to subdivision four of

section fifty-five of this article, including the reasonable costs of

such services performed by the health and mental hygiene facilities

improvement corporation upon request by the commissioner of mental

hygiene pursuant to the provisions of section 75.25 of the mental

hygiene law, (c) to pay all costs, expenses and charges of financing,

including fees and expenses of trustees and paying agents, (d) for

transfers to the community mental health services and developmental

disabilities services capital reserve fund, (e) for the payment of

principal of and interest on community mental health services and

developmental disabilities services project bonds and notes issued by

the agency when the same shall become due whether at maturity or on call

for redemption and for the payment of any redemption premium required to

be paid where such community mental health services and developmental

disabilities services project bonds and notes are redeemed prior to

their stated maturities and to purchase community mental health services

and developmental disabilities services project bonds or notes issued by

the agency, or (f) for such other corporate purposes of the agency as

the agency in its discretion shall determine and provide.

14. (a) The agency may create and establish a special fund to be known

as community senior citizens services capital reserve fund and may pay

into such reserve fund (1) any moneys appropriated and made available by

the state for the purposes of such fund, (2) any proceeds of sale of

community senior citizens services project notes or community senior

citizens services project bonds, to the extent provided in the

resolution of the agency authorizing the issuance thereof, and (3) any

other moneys which may be made available to the agency for the purposes

of such accounts from any other source or sources. The moneys held in or

credited to the capital reserve fund established under this subdivision

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

principal of community senior citizens services project bonds of the

agency secured by such reserve fund, as the same mature, the purchase of

such community senior citizens services project bonds of the agency, the

payment of interest on such community senior citizens services project

bonds of the agency, or the payment of any redemption premium required

to be paid when such bonds are redeemed prior to maturity; provided,

however, that moneys in any such fund shall not be withdrawn thereform

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 calendar year on the community senior

citizens services project bonds of the agency then outstanding and

secured by such reserve fund, except for the purpose of paying principal

and interest on community senior citizens services project bonds of the

agency secured by such reserve fund maturing and becoming due and for

the payment of which other moneys of the agency are not available. Any

income or interest earned by, or increment to, any such community senior

citizens services capital reserve fund due to the investment thereof may

be transferred to the community senior citizens services general reserve

fund or other fund of the agency, to the extent it does not reduce the

amount of such community senior citizens services capital reserve fund

below the maximum amount of principal and interest maturing and becoming

due in any succeeding calendar year on all community senior citizens

services project bonds of the agency then outstanding and secured by

such reserve fund.

(b) The agency shall not issue community senior citizens services

project bonds and notes in an aggregate principal amount exceeding fifty

million dollars excluding community senior citizens services project

bonds and community senior citizens services project notes issued to

refund outstanding community senior citizens services project bonds and

community senior citizens services project notes, nor shall it issue

community senior citizens services project bonds at any time secured by

the community senior citizens capital reserve fund if the maximum amount

of principal and interest maturing and becoming due in a succeeding

calendar year on the community senior citizens services project bonds

outstanding and then to be issued and secured by the community senior

citizens services capital reserve fund will exceed the amount of such

reserve fund at the time of issuance, unless the agency, at the time of

issuance of such bonds, shall deposit in such reserve fund from the

proceeds of the bonds so to be issued, or otherwise, an amount which

together with the amount then in such reserve fund, will be not less

than the maximum amount of principal and interest maturing and becoming

due in any succeeding calendar year on the community senior citizens

services project bonds then to be issued and on all other community

senior citizens services project bonds of the agency then outstanding

and secured by such reserve fund.

(c) To assure the continued operation and solvency of the agency for

the carrying out of the public purposes of this article provision is

made in paragraph (a) of this subdivision for the accumulation in the

community senior citizens services capital reserve fund of an amount

equal to the maximum amount of principal and interest maturing and

becoming due in any succeeding calendar year on all community senior

citizens services project bonds of the agency then outstanding and

secured by such reserve fund. In order further to assure the maintenance

of such community senior citizens services capital reserve fund, there

shall be annually apportioned and paid to the agency for deposit in such

community senior citizens services capital reserve fund such sum, if

any, as shall be certified by the chairman of the agency to the governor

and director of the budget as necessary to restore such reserve fund to

an amount equal to the maximum amount of principal and interest maturing

and becoming due in any succeeding calendar year on the community senior

citizens services project bonds of the agency then outstanding and

secured by such reserve fund. The chairman of the agency shall annually,

on or before December first, make and deliver to the governor and

director of the budget his certificate stating the sums, if any,

required to restore such community senior citizens services capital

reserve fund to the amount aforesaid, and the sums so certified, if any,

shall be apportioned and paid to the agency during the then current

state fiscal year. The principal amount of bonds secured by the

community senior citizens services capital reserve fund to which state

funds are apportionable pursuant to this paragraph shall be limited to

the total amount of bonds and notes outstanding on the effective date of

this act, plus the total amount of bonds and notes contracted after the

effective date of this act to finance projects in progress on the

effective date of this act as determined by the New York state public

authorities control board created pursuant to section fifty of the

public authorities law whose affirmative determination shall be

conclusive as to all matters of law and fact solely for the purposes of

the limitations contained in this paragraph, but in no event shall the

total amount of bonds so secured by such a capital reserve fund or funds

exceed two million eight hundred thousand dollars, excluding bonds

issued to refund such outstanding bonds until the date of redemption of

such outstanding bonds. As outstanding bonds so secured are paid, the

amount so secured shall be reduced accordingly but the redemption of

such outstanding bonds from the proceeds of refunding bonds shall not

reduce the amount so secured.

(d) In computing any community senior citizens services capital

reserve fund for the purposes of this section, securities in which all

or a portion of such reserve fund shall be invested shall be valued at

par if purchased at par, or if purchased at other than par, at amortized

value.

15. The agency shall create and establish a special fund (herein

referred to as community senior citizens services general reserve fund)

and shall pay into such fund all fees and charges collected by the

agency pursuant to subdivision eleven-a of section forty-four of this

article and any moneys which the agency shall transfer from the

community senior citizens services capital reserve fund pursuant to the

provisions of paragraph (a) of subdivision fourteen of this section.

Such moneys and any other moneys paid into the community senior citizens

services general reserve fund may, in the discretion of the agency, but

subject to agreements with bondholders and noteholders, be used by the

agency (a) for the repayment of advances from the state in accordance

with the provisions of repayment agreements between the agency and the

director of the budget, (b) to reimburse the department of social

services of the state of New York for the reasonable costs of the

services performed by such department pursuant to subdivision six of

section fifty-five of this article, (c) to pay all costs, expenses and

charges of financing, including fees and expenses of trustees and paying

agents, (d) for transfers to the community senior citizens services

capital reserve fund, (e) for the payment of principal of and interest

on community senior citizens services project bonds and notes issued by

the agency when the same shall become due whether at maturity or on call

for redemption and for the payment of any redemption premium required to

be paid where such community senior citizens services project bonds and

notes are redeemed prior to their stated maturities and to purchase

community senior citizens services project bonds or notes issued by the

agency, or (f) for such other corporate purposes of the agency as it, in

its discretion, shall determine and provide.

16. (a) The agency may create and establish one or more special funds

to be known as community mental health services and developmental

disabilities services capital reserve funds and may pay into such

reserve funds (1) any monies appropriated and made available by the

state for the purposes of such funds, (2) any proceeds of the sale of

community mental health services and developmental disabilities services

project revenue bonds or notes, to the extent provided in the resolution

of the agency authorizing the issuance thereof, and (3) any other monies

which may be made available to the agency for the purposes of such fund

or funds from any other source or sources. The monies held in or

credited to a capital reserve fund established under this subdivision,

except as hereinafter provided and as provided in agreements with

bondholders and noteholders, shall be used solely for the payment of

principal of community mental health services and developmental

disabilities services project revenue bonds of the agency secured by

such reserve fund, as the same mature, required payments to any sinking

fund established in a resolution of the agency for the amortization of

term bonds (hereinafter referred to as "sinking fund payments"), the

purchase of such revenue bonds of the agency, the payment of interest on

such revenue bonds of the agency, or the payment of any redemption

premium required to be paid when such bonds are redeemed prior to

maturity. Any income or interest earned by, or increment to, any such

community mental health services and developmental disabilities services

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

the agency, subject to agreements with bondholders and noteholders.

(b) In computing any community mental health services and

developmental disabilities services capital reserve fund for the

purposes of this section, securities in which all or a portion of such

reserve fund shall be invested shall be valued at par if purchased at

par, or if purchased at other than par, at the amortized value.

(c) The agency shall create and establish one or more special funds

(herein referred to as community mental health services and

developmental disabilities services general reserve funds) and shall to

the extent provided in the applicable bond resolution of the agency

authorizing the issuance of community mental health services and

developmental disabilities services project revenue bonds, pay into any

such fund the fees and charges collected by the agency pursuant to

paragraph (d) of subdivision eleven of section forty-four of this

article and any monies which the agency shall transfer from a community

mental health services and developmental disabilities services capital

reserve fund pursuant to the provisions of paragraph (a) of this

subdivision. Such monies and any other monies paid into a community

mental health services and developmental disabilities service general

reserve fund may, in the discretion of the agency, but subject to

agreements with bondholders and noteholders, be used by the agency (i)

for the repayment of advances from the state in accordance with the

provisions of repayment agreements between the agency and the director

of the budget, (ii) to reimburse the department of mental hygiene the

reasonable costs of the services performed by the commissioner of mental

hygiene and the department of mental hygiene pursuant to subdivision

five of section fifty-five of this article, including the reasonable

costs of such services performed by the facilities development

corporation upon request by the commissioner of mental hygiene pursuant

to the provisions of section 75.25 of the mental hygiene law, (iii) to

pay all costs, expenses and charges of financing, including fees and

expenses of trustees and paying agents, (iv) for transfers to a

community mental health services and developmental disabilities services

capital reserve fund, (v) for the payment of principal of and interest

on community mental health services and developmental disabilities

services project revenue bonds and notes issued by the agency when the

same shall become due whether at maturity or on call for redemption and

for the payment of any redemption premium required to be paid where such

community mental health services and developmental disabilities services

project revenue bonds and notes are redeemed prior to their stated

maturities and to purchase community mental health services and

developmental disabilities services revenue bonds or notes issued by the

agency, or (vi) for such other corporate purposes of the agency as the

agency in its discretion shall determine and provide.