N.Y. Public Authorities Law § 1828: Expenses and reserve funds

§ 1828. Expenses and reserve funds. 1. There shall be included in the

financial information to be submitted annually by the authority pursuant

to the provisions of section eighteen hundred twenty-nine of the public

authorities law, and in the annual report referred to in said section,

items separately showing the respective totals during the last completed

fiscal year of the authority, of (i) all expenses of the authority

clearly attributable to its operations under subtitle II of this title,

(ii) all expenses of the authority clearly attributable to its

operations under subtitle III of this title, and (iii) expenses of the

authority not clearly attributable to a category set forth in clauses

(i) and (ii) of this subdivision.

2. To assure the continued operation and solvency of the authority for

the fulfillment of its corporate purposes with pollution control funds,

provision is made in subdivision two of section eighteen hundred twenty

of this title for the accumulation in the pollution control 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 pollution control bonds of the authority then outstanding. In order

further to secure such maintenance of the pollution control capital

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

authority for deposit in the pollution control capital reserve fund such

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

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

pollution control capital 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 pollution control bonds of the authority

then outstanding. The chairman of the authority 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 pollution control capital reserve fund to the amount

aforesaid and the amount so stated in said certificate, if any, shall be

apportioned and paid to the authority during the then current state

fiscal year. No amount or amounts shall be apportioned and paid to the

authority pursuant to this subdivision two until the authority has

entered into a written agreement with the director of the budget

providing for the repayment thereof to the state. Any such agreement

shall provide, in lieu of any other provisions required by law regarding

such repayment, that the authority will repay the state in full from

pollution control funds the amount or amounts so apportioned and paid on

the date one year after all pollution control bonds and notes of the

authority outstanding at the date of such agreement or thereafter

issued, together with the interest thereon, with interest on any unpaid

installments of interest, and all costs and expenses in connection with

any action or proceeding by or on behalf of the holders thereof, are

fully met and discharged. The principal amount of bonds secured by the

pollution control capital reserve fund to which state funds are

apportionable pursuant to this subdivision 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 this chapter whose

affirmative determination shall be conclusive as to all matters of law

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

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

by such a capital reserve fund or funds exceed 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.

3. The authority may make and enter into all such covenants and

agreements with respect to accounting for or paying its expenses with

holders of any of its bonds and notes, or of any issue thereof, as it

may determine to be necessary and desirable.

4. To assure the continued operation and solvency of the authority for

the fulfillment of its corporate purposes, there shall be annually paid

to the authority such sum as shall have been appropriated for the

expenses of the authority. The chairman of the authority shall make and

deliver to the governor and director of the budget on or before December

first, nineteen hundred sixty-six and on or before December first in

each year thereafter, a certificate stating the amount estimated to be

required for payment of or provision for expenses of the authority for

the next ensuing state fiscal year. The amount so stated for any such

ensuing state fiscal year shall be the sum of the amounts, if any,

estimated for such fiscal year, by which pollution control expenses

exceed pollution control available revenues, by which special purpose

expenses in respect of loans and the special purpose expenses in respect

of loan guarantees exceed special purpose available revenues. The entire

amount appropriated for each such fiscal year for the expenses of the

authority shall be paid to the authority not later than the tenth day of

each such fiscal year. As used in this subdivision, (i) the term

"expenses" for the fiscal year means ordinary expenditures for operation

and administration of the authority, including interest paid by the

authority on its bonds and notes, and, in addition, such amounts as the

authority may determine to be reasonable and necessary as a reserve

against defaults on its loans and as a reserve against defaults in the

payment or terms of loans guaranteed by the authority, but shall not

include amounts required to be paid to the state under or pursuant to

any written agreement entered into pursuant to subdivision two of this

section; and (ii) the term "available revenues" for the fiscal year

means all amounts received on account of loans (exclusive of principal

repayments), and loan guarantees and applications therefor, and income

or interest earned or added to funds of the authority due to investment

thereof, and not required under the terms or provisions of any covenant

or agreement with holders of any bonds or notes of the authority to be

applied to any purposes other than payment of expenses of the authority.

5. The members of the authority shall formulate a plan and policy to

provide an expedited financial assistance process for fixed asset

financing and other financing assistance programs provided by the

authority for new businesses and expansions of existing businesses

within areas designated as empire zones pursuant to article eighteen-B

of the general municipal law.