N.Y. Public Authorities Law § 3056: Payments to the corporation; funds of the corporation

§ 3056. 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 October first, nineteen

hundred ninety-five for the fiscal year ending December thirty-first,

nineteen hundred ninety-five), the chairman of the board of directors of

the corporation shall certify to the state comptroller and to the

governor 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 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 bonds and notes

payable from the sources hereinafter identified in this section and

maturing or otherwise coming due during such fiscal year; (ii) 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 to the extent not otherwise provided for; (iii) the amounts

required to be deposited in the bond reserve fund created and

established pursuant to the agreements of the corporation made with the

holders of its bonds or notes issued pursuant to section three thousand

fifty-three of this title during such fiscal year in order to maintain

the bond reserve fund level required in accordance with the agreements

of the corporation made with the holders of its bonds or notes issued

pursuant to section three thousand fifty-three of this title; (iv) the

amount, if any, due to any provider of any bond or note facility,

representing payments made by it as provided in the applicable

resolution or trust indenture, including any related reasonable

interest, fees or charges so provided; (v) the amount, if any, required

to be rebated to the United States to provide for continued federal tax

exemption for bonds and notes of the corporation; and (vi) the amount,

if any, required to be paid to the commissioner of environmental

conservation to secure obligations of the city related to post-closure

care and potential corrective measures of the city's landfill. Such

certification shall also set forth the amount which would be necessary

to be appropriated and available for deposit into the special account

established for the corporation under subdivision one of section

ninety-two-e of the state finance law in the next succeeding state

fiscal year to provide a minimum coverage ratio of one and one-half to

one on the debt service payable by the corporation in such succeeding

fiscal year; provided, however, that for the purposes of the foregoing

calculation the term "debt service payable" shall include redemption

premiums and the reasonably estimated amount of debt service on bonds

and notes the corporation expects to issue after the date of the

certification and prior to the close of such succeeding fiscal year, and

shall also include the interest on but not the principal of any notes

issued or expected to be issued by the corporation pursuant to

subdivision two-a of section three thousand fifty-three of this title.

In determining the amount certified as necessary to provide the minimum

coverage ratio described in the preceding sentence, the chairman shall

make estimates covering the period corresponding to the next succeeding

state fiscal year of (a) the moneys available from other sources and

pledged to the payment of debt service in accordance with any agreements

between the corporation and the holders of its bonds or notes, (b) the

amount of investment earnings on funds held by the corporation that the

corporation will apply to the payment of debt service, and (c) the

funding needed to meet the operating requirements and other expenses of

the corporation. If any increase shall occur in such 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, or if the city shall fail to make timely payment of

any amount due and owing from the city to the corporation under any

contract or agreement between the city and the corporation, such

chairman shall certify a revised schedule of such additional cash

requirements for such fiscal year to the state comptroller and to the

governor. Such chairman shall, as changed conditions or estimates may

warrant, certify to the state comptroller and to the governor as to a

revised amount which would be necessary to be appropriated and available

for deposit into the corporation's special account under subdivision one

of section ninety-two-e of the state finance law in order to maintain

the minimum coverage ratio described above provided, however, that no

such revised certification shall be made after the adoption by the

legislature of a budget for the state fiscal year to which the

certification pertains. 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 and

subject to agreements with holders of outstanding bonds and notes of the

corporation, 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 subject, however,

to the provisions of paragraph (b) of subdivision five-a of such

section, and 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. 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 pursuant to

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

except as to amounts paid to the corporation pursuant to paragraph (b)

of subdivision five-a of section ninety-two-e of the state finance law,

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

any additional payments. Any amount so paid to the corporation from the

municipal assistance tax fund shall 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. The

city shall pay to the corporation such additional payments as may be

necessary to fund items (i), (ii), (iii), (iv), (v) and (vi) of this

subdivision.

2. Nothing contained in this title shall be deemed to restrict the

right of the state to amend, repeal, modify or otherwise alter sections

fifty-four and ninety-two-e of the state finance law or section twenty

of a chapter of the laws of nineteen hundred ninety-six entitled "AN ACT

to amend chapter 721 of the laws of 1994 authorizing the city of Troy to

issue serial bonds for the purpose of liquidating cumulative and

projected deficits in the city's general fund, establishing a

supervisory board, and establishing a debt service fund, in relation to

granting a lien to the county of Rensselaer relating to certain taxes

collected on behalf of such county by the city of Troy" which chapter

added a new paragraph (b) to subdivision five-a of section ninety-two-e

of the state finance law. The corporation shall not include within any

resolution, contract or agreement with holders of the bonds or notes

issued under this title any provision which provides that a default

occurs as a result of the state exercising its right to amend, repeal,

modify or otherwise alter sections fifty-four and ninety-two-e of the

state finance law or the above described section twenty of such chapter

of the laws of nineteen hundred ninety-six.

3. The corporation shall create a bond reserve fund, 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.

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

year of the city.