N.Y. Public Authorities Law § 2799-hh: Resources of the authority

§ 2799-hh. Resources of the authority. 1. Subject to the provisions of

this title, the directors of the authority shall receive, accept,

invest, administer, expend and disburse for its corporate purposes all

money of the authority from whatever sources derived including (a)

payments by the state comptroller pursuant to this title; (b) the

proceeds of bonds; and (c) any other payments, gifts, or appropriations

to the authority from any other source.

2. Subject to the provisions of any contract with bondholders, (a) the

money of the authority shall be paid to the authority and shall not be

commingled with any other money, and (b) all money received by the

authority which, together with other money of the authority available

for the operating expenses of the authority, the payment of debt service

and payments to reserve funds, exceeds the amount required for such

purposes shall be transferred to the city on or before the last day of

each month.

3. The money in any of the authority's accounts shall be paid out on

checks signed by the treasurer, or by other lawful and appropriate means

such as wire or electronic transfer, on requisitions of the chairperson

of the authority or of such other officer as the directors shall

authorize to make such requisition, or pursuant to a bond resolution or

trust indenture.

4. All deposits of authority money shall be secured by obligations of

the United States or of the state or of the city at a market value equal

at all times to the amount of the deposit, and all banks and trust

companies are authorized to give such security for such deposits. The

comptroller and his or her legally authorized representative are

authorized and empowered from time to time to examine the accounts and

books of the authority, including its receipts, disbursements,

contracts, leases, sinking funds, investments and any other records and

papers relating to its financial standing. The authority shall have the

power, notwithstanding the provisions of this section, to contract with

the holders of any of its bonds as to the custody, collection, securing,

investment and payment of any money of the authority or any money held

in trust or otherwise for the payment of bonds or in any way to secure

bonds, and to carry out any such contract notwithstanding that such

contract may be inconsistent with the other provisions of this title.

Money held in trust or otherwise for the payment of bonds or in any way

to secure bonds and deposits of such money may be secured in the same

manner as money of the authority, and all banks and trust companies are

authorized to give such security for such deposits.

5. Tax revenues received by the authority pursuant to subsection (d)

of section eight hundred seventy-three, or section thirteen hundred

thirteen, of the tax law, together with any alternative revenues

received by the authority, shall be applied in the following order of

priority: first pursuant to the authority's contracts with bondholders,

then to pay the authority's operating expenses not otherwise provided

for, and then pursuant to the authority's agreements with the city,

which agreements shall require the authority to transfer the balance of

such taxes not required to meet contractual or other obligations of the

authority to the city as frequently as practicable.