N.Y. Public Authorities Law § 1820: Pollution control funds

§ 1820. Pollution control funds. 1. The following shall constitute

pollution control funds of the authority and shall be kept separate and

apart from all other funds of the authority: (a) the proceeds of sale of

pollution control bonds and notes (b) any moneys appropriated and made

available by the state for the purposes of this subtitle only, (c) any

moneys made available to the authority for the purposes of this subtitle

only from any other source or sources, (d) any moneys received by the

authority as payments on account of loans made by the authority pursuant

to this subtitle, (e) any fees, charges or other moneys received by the

authority in respect of projects assisted by the authority pursuant to

this subtitle or on account of applications therefor, and (f) any income

or interest earned by, or any increment added to, any pollution control

funds due to the investment thereof.

2. The authority shall further create and establish a separate fund to

be known as the "pollution control capital reserve fund" and shall pay

into such capital reserve fund (1) any moneys apportioned and paid by

the state for the purposes of such fund pursuant to subdivision two of

section eighteen hundred twenty-eight of this title, (2) any proceeds of

sale of pollution control bonds or notes to the extent provided in the

resolution of the authority authorizing the issuance thereof, (3) any

pollution control funds directed to be transferred by the authority to

such capital reserve fund, and (4) any other moneys which may be made

available to the authority for the purposes of such fund from any other

source or sources.

The moneys credited to such pollution control capital reserve fund

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

the principal of pollution control bonds of the authority, as the same

mature, the purchase of pollution control bonds, the payment of interest

on pollution control bonds, and the payment of principal and any

redemption premium required to be paid upon a redemption of such bonds

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be withdrawn therefrom at any time in such amount as would reduce the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 pollution control bonds of the authority then outstanding, except

for the purpose of paying the principal of and interest on the pollution

control bonds of the authority maturing and becoming due for the payment

of which other moneys of the authority are not available.

Moneys in the pollution control capital reserve fund not required for

immediate use or disbursement may be invested in accordance with all the

otherwise consistent provisions of section ninety-eight-a of the state

finance law. In computing the amount of the pollution control capital

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

or a portion of such fund are invested shall be valued at par or, if

purchased at less than par, at their cost to the authority. The

authority shall not issue pollution control bonds at any time secured by

the pollution control capital reserve fund if the maximum amount of

principal and interest maturing and becoming due in any succeeding

calendar year on the pollution control bonds then to be issued and on

all other pollution control bonds of the authority then outstanding will

exceed the amount of the pollution control capital reserve fund at the

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

pollution control bonds, shall deposit in such fund from the proceeds of

the pollution control bonds 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 pollution control bonds then to be

issued and on all other pollution control bonds of the authority then

outstanding.

Any excess in the pollution control capital reserve fund at the close

of any fiscal year of the authority over the maximum amount of the

principal and interest maturing and becoming due in any succeeding

calendar year on all pollution control bonds of the authority then

outstanding shall be withdrawn by the authority from said capital

reserve fund and, subject to the provisions of subdivision four of

section eighteen hundred twenty-eight of this title, used as pollution

control funds.

3. Subject to the terms of any agreement with pollution control

bondholders and noteholders, pollution control funds may be used by the

authority (a) to make loans to local development corporations for costs

of projects specified in section eighteen hundred seventeen in any area

of the state, (b) to pay the expenses of the authority referred to in

any of the clauses of subdivision one of section eighteen hundred

twenty-eight of this title, (c) to make payments to the pollution

control capital reserve fund, (d) to repay advances from the state for

use as pollution control funds in accordance with any provision of law

or repayment agreement between the authority and the director of the

budget, (e) to pay the principal and redemption price of or interest on

pollution control bonds or notes, (f) to purchase pollution control

bonds or notes, or (g) in connection with projects financed with

pollution control funds to exercise any of the powers conferred in this

title. Investment proceeds and repayments from borrowers credited to the

pollution control fund may, to the extent that they are not required

pursuant to the preceding sentence of this subdivision, be used for

other purposes of the authority.