N.Y. Public Authorities Law § 2512: Reserve fund

* § 2512. Reserve fund. The authority may create and establish one or

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

into such reserve funds (a) any moneys appropriated and made available

by the city for the purposes of such funds (b) any proceeds of sale of

bonds and notes to the extent provided in the resolution of the

authority authorizing the issuance thereof (c) any moneys directed to be

transferred by the authority to such funds, and (d) any other moneys

which may be made available to the authority 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 section, except

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

principal of an interest on bonds of the authority secured by such

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

established for the amortization of such bonds (hereinafter referred to

as "sinking fund payments"), the purchase or redemption of such bonds of

the authority or the payment or 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that moneys in any such fund shall not be withdrawn therefrom at any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 and interest maturing and becoming due

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

outstanding and secured by such reserve fund, except for the purpose of

paying principal and interest on the bonds of the authority secured by

such reserve fund maturing and becoming due and sinking fund payments

for the payment of which other moneys of the authority are not

available.

* NB (Discontinued-Board of Directors never appointed)