N.Y. Public Authorities Law § 3036-a: Further payments to the corporation; additional funds of the corporation

* § 3036-a. Further payments to the corporation; additional funds of

the corporation. 1. In addition to the total amount certified by such

chairman for such fiscal year, all as referred to in subdivision one of

section three thousand thirty-six, the chairman shall at the same time

certify to the state comptroller and to the mayor a schedule setting

forth additional cash requirements of the corporation which 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 two of this section (in this section called the capital

reserve fund) during such fiscal year in order to maintain the capital

reserve fund at the level required in accordance with subdivision four

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

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

principal and redemption premium, if any, on notes and bonds payable

from the sources hereinafter identified in this section and maturing or

otherwise coming due during such fiscal year; and (iii) the amounts

required to be deposited in the operating fund of the corporation

heretofore established, 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 such additional 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 such additional 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 under this section 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 referred to in this section, in accordance with such

certification from the special account established for the corporation

in the municipal assistance state aid fund in accordance with

subdivision one of section ninety-two-e of the state finance law and,

subject to agreements with outstanding bond and note holders of the

corporation, 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 ninety-two-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 paid to the corporation from

such municipal assistance state aid fund shall be deducted from the

amount otherwise payable to the city as per capita aid pursuant to

sections fifty-four and ninety-two-e of the state finance law and shall

not obligate the state to make, nor entitle the city to receive, any

additional payments of per capita aid. Any amount so paid to the

corporation from the municipal assistance tax fund shall, in addition to

the amount deducted pursuant to subdivision one of section three

thousand thirty-six, be deducted from the amount otherwise payable to

the city from the municipal assistance tax fund and shall not obligate

the state to make, nor entitle the city to receive, any additional

payments from such municipal assistance tax fund.

2. The corporation shall create and establish a capital reserve fund

as an additional special 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 or 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 corporate, the payment of interest on 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 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 secured by such capital

reserve fund, 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 due or 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 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.

3. 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.

4. The corporation shall not issue bonds secured by the capital

reserve fund 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 such bonds of the

corporation then outstanding will exceed the amount of the capital

reserve fund requirement 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 the capital reserve fund

outstanding on such date:

Calendar Year Percentage

1975 0%

1976 0%

1977 25%

1978 50%

1979 75%

1980 100%

5. 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.

6. The corporation shall create a bond service fund.

* 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.