N.Y. Public Authorities Law § 3036: Payments to the corporation; funds of the corporation

* § 3036. Payments to the corporation; funds of the corporation. 1.

Not less than one hundred twenty days before the beginning of each

fiscal year of the corporation (but not later than July 1, 1975 for the

fiscal year ending June 30, 1976), the chairman of the board of

directors of the corporation shall certify to the state comptroller and

to the mayor a schedule setting forth the cash requirements of the

corporation for such fiscal year and the time or times when such cash is

required. The total amount so certified by such chairman for such fiscal

year shall be equal to: (i) the amounts which are required to be

deposited in the capital reserve fund authorized to be created and

established pursuant to subdivision three of this section during such

fiscal year in order to maintain such capital reserve fund of the

corporation at the level required in accordance with subdivision five of

this section; (ii) the amounts required to be deposited in the debt

service fund of the corporation to pay all interest and all payments of

principal and redemption premium, if any, on notes and bonds secured by

such debt service fund maturing or otherwise coming due during such

fiscal year; and (iii) the amounts required to be deposited in the

operating fund of the corporation, as determined by the corporation, to

meet the operating requirements and other expenses of the corporation

during such fiscal year. If any increase shall occur in the cash

requirements specified above, or if payments are required at a time or

times earlier than previously certified or if the city shall for any

reason fail to make timely payment of the principal and accrued interest

due on any obligation issued by the city to the corporation and maturing

within the same fiscal year, such chairman shall certify a revised

schedule of cash requirements for such fiscal year to the state

comptroller and to the mayor. The schedule accompanying each

certification (or revision thereof) shall provide for such payment dates

as the corporation deems appropriate to assure that sufficient funds

will be available from the sources identified below to enable it to meet

its current obligations as they come due. Upon receipt of such

certification, or any revision thereof, the state comptroller shall pay

such amount to the corporation for deposit in the appropriate funds, in

accordance with such certification from the special account established

for the corporation in the municipal assistance tax fund, in accordance

with subdivision one of section ninety-two-d of the state finance law,

including any amount transferred to the municipal assistance tax fund

from the stock transfer tax fund pursuant to subdivision four of section

92-b of the state finance law. Any such payment shall be made within

thirty days of receipt of the certification or at the time specified in

the certification, whichever is later; provided that any such amounts

shall have been first appropriated by the state for such purpose or

shall have been otherwise made available. Any amount so paid to the

corporation shall be deducted from the amount otherwise payable to the

city from the municipal assistance tax fund established by section

ninety-two-d of the state finance law and shall not obligate the state

to make, nor entitle the city to receive, any additional payments.

2. Notwithstanding subdivision one of this section, prior to any

transfers from the stock transfer tax fund to the municipal assistance

tax fund, moneys, if any, payable to any other public benefit

corporation from such fund pursuant to the provision of any law, the

effective date of which is prior to the effective date of this title,

shall be paid in full to such other corporation.

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

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

reserve fund (i) any moneys appropriated and made available by the state

for the purposes of such fund, (ii) any proceeds of sale of notes or

bonds, to the extent provided in the resolution of the corporation

authorizing the issuance thereof, and (iii) any other moneys which may

be made available to the corporation 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 secured by such capital reserve fund

of the corporation, as the same mature or otherwise become due, the

purchase of such bonds of the corporation, the payment of interest of

such bonds of the corporation or the payment of any redemption premium

required to be paid when such bonds are redeemed prior to maturity. If

the amount contained in the capital reserve fund exceeds the amount

required to be contained in such fund pursuant to this subdivision three

of this section plus any additional amounts required to be contained in

such fund pursuant to the terms of issuance of any bonds or notes, such

excess moneys may be withdrawn from the capital reserve fund by the

corporation; provided, however, that moneys in such fund shall not be

withdrawn therefrom at any time in such amounts as would reduce the

amount of such fund to less than the amount of principal and interest

maturing or otherwise becoming due in the succeeding calendar year on

all bonds of the corporation secured by such capital reserve fund then

outstanding, except for the purpose of paying principal of and interest

on such bonds of the corporation maturing or otherwise due or becoming

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

available. Any income or interest earned by, or increment to, the

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

the corporation to any other fund of the corporation to the extent it

does not reduce the amount of the capital reserve fund below the amount

of principal and interest maturing or otherwise due or becoming due in

the succeeding calendar year on all bonds of the corporation secured by

such capital reserve fund then outstanding.

4. In order further to assure the maintenance of the capital reserve

fund, there shall be annually appropriated and paid to the corporation

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

certified by the chairman to the governor and director of the budget as

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

capital reserve fund requirement. The chairman of the board of directors

of the corporation 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 the capital reserve fund to

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

appropriated and paid to the corporation during the then current state

fiscal year.

5. The corporation shall not issue bonds at any time if the amount of

principal and interest maturing or otherwise due or becoming due in the

succeeding calendar year on such bonds then to be issued and on all

other bonds of the corporation secured by such capital reserve fund then

outstanding will exceed the amount of the capital reserve fund

requirement with respect to such capital reserve fund at the time of

issuance, unless the corporation, at the time of such issuance, shall

deposit in the capital reserve 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 amount of principal and interest

maturing or otherwise due or becoming due in the succeeding calendar

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

corporation secured by such capital reserve fund then outstanding (such

amount is herein sometimes referred to as the capital reserve fund

requirement). Notwithstanding the foregoing provisions of this

subdivision for each of the calendar years set forth below the capital

reserve fund requirement, as of any date of calculation, shall equal the

percentage set forth opposite such calendar year of the amount of

principal and interest maturing or otherwise due or becoming due during

such calendar year on all bonds of the corporation secured by such

capital reserve fund outstanding on such date:

Calendar Year Percentage

_____________ __________

1975 0%

1976 0%

1977 25%

1978 50%

1979 75%

1980 100%

6. 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 other

than par, at amortized value.

7. The corporation shall create a debt service fund and an operating

fund and may create and establish such other fund or funds as may be

necessary or desirable for its corporate purposes.

8. The fiscal year of the corporation shall be the same as the fiscal

year of the city.

* NB The corporation shall continue for a term ending the later of

July 1, 2008 or one year after its liabilities have been fully paid and

discharged per § 3033 sub 1.