N.Y. Public Authorities Law § 3865: Resources of the authority

§ 3865. 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

moneys of the authority from whatever source derived including (a)

revenues and (b) proceeds of bonds, notes or other obligations.

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

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

be commingled with any other money.

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

checks signed by the treasurer of the authority, 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 at

least 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 authority shall have the power, notwithstanding the provisions of

this section, to contract with the holders of any of its bonds, notes or

other obligations 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, notes or other obligations or in any

way to secure bonds, notes or other obligations, 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, notes or other obligations or in any

way to secure bonds, notes or other obligations, 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. Revenues of the authority shall be applied in the following order

of priority: first to pay debt service or for set asides to pay debt

service on the authority's bonds, notes, or other obligations and to

replenish any reserve funds securing such bonds, notes or other

obligations of the authority, in accordance with the provision of any

indenture or bond resolution of the authority; then to pay the

authority's operating expenses not otherwise provided for; and then,

subject to the authority's agreement with the city, for itself or on

behalf of the city's dependent school district and any other covered

organization, to transfer as frequently as practicable the balance of

revenues not required to meet contractual or other obligations of the

authority to the city or the city's dependent school district as

provided in subdivision seven of this section.

6. (a) Any such payment of state aid revenues to the authority shall

not obligate the state to make available, nor entitle the city to

receive, any additional state aid.

(b) Nothing contained in this title shall be construed to create a

debt of the state within the meaning of any constitutional or statutory

provisions. Any provision with respect to state aid or state aid

revenues shall be deemed executory only to the extent of moneys

available, and no liability shall be incurred by the state beyond the

moneys available for that purpose, and any such payment by the

comptroller of state aid revenues is subject to annual appropriation of

state aid by the state legislature.

(c) Nothing contained in this title shall be deemed to restrict the

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

fifty-four of the state finance law or any provision relating to state

aid to municipalities. The authority shall include within any

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

other obligations a provision which states that no default occurs as a

result of the state's exercising its right to amend, repeal, modify, or

otherwise alter section fifty-four of the state finance law or any other

provision relating to state aid to municipalities.

7. On a monthly basis, the authority shall prepare and provide to the

city and the city's dependent school district a detailed separate

accounting of all revenues received and payments and debt service set

asides made, as attributable to the city and the city's dependent school

district. Such accounting shall reflect (a) the amount of state aid

revenues, city tax revenues and school district tax revenues received

during such month, (b) the respective portion of debt service paid or

set aside during such month by the authority for its notes, bonds and

other obligations attributable to the city and the city's dependent

school district; (c) the respective portion of reserve fund

replenishment made or set aside during such month by the authority in

connection with its notes, bonds and other obligations attributable to

the city and the city's dependent school district; and (d) the

respective portion of administrative expenses of the authority paid or

set aside during such month by the authority attributable to the city

and the city's dependent school district. As soon as practicable after

each monthly payment or set aside, the authority shall make respective

payments of the remaining monthly balance or revenues to the city and

the city's dependent school district in accordance with such separate

accounting. To the extent that such respective monthly payments of the

remaining balance of revenues result in an overpayment or underpayment

to the city or the city's dependent school district, the authority shall

in the immediately subsequent month, after making debt service payments

or debt service set asides, replenishing any reserve funds and paying

the administrative expenses of the authority for such month, make an

adjustment in favor of the city or the city's dependent school district,

as the case may be, before determining the remaining amount of the

balance of revenues for such subsequent month and paying such remaining

monthly balance of revenues to the city and the city's dependent school

district. Nothing in this title shall be deemed to restrict the

authority of the state comptroller and the commissioner of taxation and

finance to adjust for overpayments or underpayments pursuant to the tax

law.