N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 612: Reserve fund

§ 612. Reserve fund. 1. The corporation shall create and establish a

special fund herein referred to as the capital reserve fund, and shall

pay into such capital reserve fund:

a. any moneys appropriated and made available by the state for the

purpose of such capital reserve fund,

b. any proceeds of sale of bonds or notes to the extent provided in

the resolution or resolutions of the corporation authorizing the

issuance thereof, and

c. any other moneys that may be made available to the corporation for

the purpose of such capital reserve 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 of the corporation, the payment of interest on such

bonds, or the payment of any redemption premium required to be paid when

such bonds are redeemed prior to maturity; provided, however, that

moneys in such capital reserve fund shall not be withdrawn therefrom at

any time in such amount as would reduce the amount of such fund to less

than the maximum amount of principal and interest maturing and becoming

due in any succeeding fiscal year of the corporation on all bonds of the

corporation then outstanding, except for the purpose of paying principal

of and interest on such bonds of the corporation maturing and 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 to

other funds or accounts to the extent it does not reduce the amount of

the capital reserve fund below the maximum amount of principal and

interest maturing and becoming due in any such succeeding fiscal year on

all bonds of the corporation then outstanding.

2. The corporation shall not issue bonds at any time if the maximum

amount of principal and interest maturing and becoming due in a

succeeding fiscal year of the corporation on such bonds then to be

issued and on all other bonds of the corporation then outstanding will

exceed the amount of the capital reserve fund at the time of issuance of

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

bonds, 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 not be less than the maximum amount

of principal and interest maturing and becoming due in any such

succeeding fiscal year on such bonds then to be issued and on all other

bonds of the corporation then outstanding.

3. For the purposes of computing the amount of the capital reserve

fund, any securities in which any portion of such fund is invested shall

be valued at the par value thereof or at the cost thereof to the

corporation if such cost was less than said par value.