Section 13-231. Guarantee of funds

a. Regular interest, charges payable, the
  creation  and maintenance of reserves in the contingent reserve fund and
  the pension reserve  fund  and  the  maintenance  of  annuity  reserves,
  pension      reserves,      dependent      benefit      reserves     and
  reserves-for-increased-take-home-pay as provided for in this  subchapter
  and         the         payment         of         all         pensions,
  pensions-providing-for-increased-take-home-pay,  annuities,   retirement
  allowances,  refunds,  death  benefits, dependent benefits and any other
  benefits granted under the provisions of  this  subchapter,  are  hereby
  made  obligations  of the city. Except as otherwise provided in sections
  13-232, 13-232.1, 13-232.2 and 13-232.3 of this subchapter, all  income,
  interest  and dividends derived from deposits and investments authorized
  by this  subchapter  shall  be  used  and  disposed  of  in  the  manner
  prescribed  by  subdivision  b  of  this section. Upon the basis of each
  actuarial determination and appraisal provided for in  this  subchapter,
  the commissioner shall prepare pursuant to section one hundred twelve of
  the  charter  and  submit  to  the  director of management and budget an
  itemized estimate of the amounts necessary to  be  appropriated  by  the
  city  to  the  various  funds  to provide for payment in full during the
  ensuing fiscal year of all such obligations of the city accruing  during
  the  ensuing fiscal year. There shall be included annually in the budget
  a sum sufficient to provide  for  such  obligations  of  the  city.  The
  comptroller  shall  pay  the  sums  so  provided  into the various funds
  provided  for  by  this  subchapter,  subject  to  the   provisions   of
  subdivision b of this section.
    b.  (1) Subject to the provisions of paragraphs two, three and four of
  this subdivision,  all  income,  interest  and  dividends  derived  from
  deposits  and  investments  authorized by this subchapter, which income,
  interest and dividends were heretofore or are hereafter received  during
  any city fiscal year commencing on or after July first, nineteen hundred
  eighty,  shall  (after payment therefrom of the sum, if any, required to
  be paid pursuant to sections 13-232, 13-232.1, 13-232.2 and 13-232.3  of
  this   subchapter)  be  used  in  such  fiscal  year  for  the  purposes
  hereinafter specified in this paragraph (to the extent that such income,
  interest and dividends are sufficient for such purposes), in  the  order
  of priority herein stated, as follows:
    (A)  first,  to  pay into the funds of the pension fund the amounts of
  regular interest which are required to be paid into such funds  in  such
  fiscal  year  by  reason  of  being required to be allowed to such funds
  pursuant to the provisions of section 13-234 of this subchapter, and  to
  pay  into  such  funds  the  amount  of  supplementary interest, if any,
  required to be  so  paid  in  such  fiscal  year  under  the  applicable
  provisions of such section, and to pay into the annuity savings fund the
  amounts  of  special  interest,  if  any, required to be so paid in such
  fiscal year under the applicable provisions of such section, and to  pay
  into  the contingent reserve fund the amounts of additional interest, if
  any, required to be paid  in  such  fiscal  year  under  the  applicable
  provisions of such section;
    (B)  second, to pay into the contingent reserve fund the amount of any
  losses in excess  of  gains  (i)  which  net  losses  the  pension  fund
  sustained   during  such  fiscal  year  by  reason  of  sales  or  other
  dispositions of securities, and (ii) for which net  losses  the  pension
  fund  is  required  to  be  reimbursed in such fiscal year, and (iii) to
  which net losses section 13-704 of this  title,  relating  to  graduated
  crediting of gains and amortization of losses on dispositions of certain
  securities, does not apply;
    (C)  third, if the total amount of such income, interest and dividends
  received during such fiscal year  is  in  excess  of  the  total  amount

  required  to  make,  in  such  fiscal  year,  the payments prescribed by
  subparagraphs (A) and (B) of this paragraph, the amount of  such  excess
  shall  be  paid into the contingent reserve fund and shall become a part
  of the assets of such fund.
    (2)   Notwithstanding   the   provisions  of  paragraph  one  of  this
  subdivision or any other law to the contrary, any such income,  interest
  or  dividends which are received by the pension fund may be used for the
  purpose specified in section 13-705 of this title (relating to  expenses
  incurred  in the acquisition, management and protection of investments),
  regardless of when received and prior to use for the purposes stated  in
  such paragraph one.
    (3)  (A)  Notwithstanding  any  other provision of this section or any
  other law to the contrary, the term "all income, interest and  dividends
  derived from deposits and investments", as used in paragraph two of this
  subdivision  (as  such  subdivision  was  in effect prior to July first,
  nineteen hundred eighty), shall be construed, in relation to disposition
  of all income, interest and dividends received by the  pension  fund  in
  each  of  the  city's  nineteen  hundred  seventy-six--nineteen  hundred
  seventy-seven  and  nineteen  hundred  seventy-seven--nineteen   hundred
  seventy-eight  obligations  fiscal  years  (as  such  fiscal  years were
  defined by paragraph one of this subdivision prior to such  July  first)
  as meaning the remainder obtained:
    (i) by subtracting from such income, interest and dividends the amount
  of  any  expenses  charged thereto pursuant to the provisions of section
  13-705 of this title; and
    (ii) by subtracting from such amount computed pursuant to item (i)  of
  this  subparagraph (A) the amount, if any, required to be paid therefrom
  pursuant to section 13-232 of this subchapter; and
    (iii) by subtracting from the amount computed pursuant to item (ii) of
  this subparagraph (A) the sum of:
    (1)  the  amounts  of  regular,  supplementary  and  special  interest
  required  to  be  allowed  and  paid  into  the appropriate funds of the
  retirement system  in  such  fiscal  year  pursuant  to  the  applicable
  provisions of section 13-234 of this subchapter; and
    (2)  the  amount of any losses in excess of gains (a) which net losses
  were sustained by the pension fund during such fiscal year and which net
  losses were sustained by  reason  of  sales  or  other  dispositions  of
  securities, and (b) to which net losses the provisions of section 13-704
  of this title do not apply.
    (B)   for  the  purposes  of  the  order  of  priority  governing  the
  disposition, in the payment  fiscal  year  with  respect  to  each  such
  obligations   fiscal  year,  of  such  remainder  computed  pursuant  to
  subparagraph (A) of  this  paragraph  three  (as  such  disposition  was
  prescribed  by  the  provisions  of this subdivision as in effect during
  each such payment fiscal year) the provisions of subparagraphs  (A)  and
  (B)  of such paragraph two shall be deemed to have been inapplicable and
  the order of priority for such disposition shall be first, the  use  set
  forth  in  subparagraph (C) of such paragraph, second, the use set forth
  in subparagraph (D) of such paragraph,  third,  the  use  set  forth  in
  subparagraph  (E)  of  such  paragraph  and fourth, the use set forth in
  subparagraph (F) of such paragraph, as such subparagraphs were in effect
  during such payment fiscal year.
    (4)  (a)  Subject  to  the  provisions  of  paragraph  five  of   this
  subdivision  b,  all  income,  interest and dividends which were derived
  from deposits and investments authorized by this title  and  which  were
  received    during    each    of    the    city's    nineteen    hundred
  seventy-eight--nineteen  hundred  seventy-nine  and   nineteen   hundred
  seventy-nine--nineteen  hundred eighty fiscal years shall be used (after

  payment therefrom of the sum, if any, required to be  paid  pursuant  to
  section  13-232  of  this  subchapter  in  each such fiscal year for the
  purposes hereinafter stated in this subparagraph (a), in  the  order  of
  priority herein stated, as follows:
    (A)  first,  (i) to pay into the funds of the pension fund the amounts
  of regular interest which are required to be paid  into  such  funds  in
  such  fiscal  year  wherein  such  income,  interest  and dividends were
  received, which interest is so payable by reason of being required to be
  allowed to such funds in such fiscal year pursuant to the provisions  of
  section  13-234  of this subchapter, and (ii) to pay into such funds the
  amounts of supplementary interest required to be so paid in such  fiscal
  year  under  the applicable provisions of such section, and (iii) to pay
  into the annuity savings fund the amounts of special  interest  required
  to  be  so  paid  in such fiscal year under the applicable provisions of
  such section, and (iv) to pay  into  the  contingent  reserve  fund  the
  amounts  of  additional interest required to be paid in such fiscal year
  under the applicable provisions of such section;
    (B) second, to pay into the contingent reserve fund the amount of  any
  losses  in  excess  of  gains (i) which net losses were sustained by the
  pension fund during such fiscal year in which such income, interest  and
  dividends were received and which net losses were sustained by reason of
  sales or other dispositions of securities, and (ii) for which net losses
  the  pension  fund is required to be reimbursed in such fiscal year, and
  (iii) to which net losses section 13-704  of  this  title,  relating  to
  graduated  crediting of gains and amortization of losses on dispositions
  of certain securities, does not apply; and
    (C) third, to pay into the contingent reserve fund the amount, if any,
  by which,
    (i) the total of all losses which the pension  fund  sustained  during
  such  fiscal year by reason of sales of securities within the meaning of
  such section 13-704 of this  title  and  which  the  responsible  public
  employer,  as defined in paragraph four of subdivision a of such section
  13-704 of this title, would otherwise be required to  amortize  pursuant
  to such section, exceeds
    (ii)  the  total  of  all gains which were realized during such fiscal
  year by reason of sales of securities within the meaning of such section
  and which would otherwise be required by such section to be credited  in
  favor of the responsible public employer in installments.
    (b)  if  the  total  amount  of  such  income,  interest and dividends
  received during each such fiscal year referred to in subparagraph (a) of
  this paragraph four is in excess of the total amount required  to  make,
  in  the  same fiscal year, the payments prescribed by items (A), (B) and
  (C) of such subparagraph (a), the amount of such excess  shall  be  paid
  into  the  contingent  reserve  fund as of June thirtieth of such fiscal
  year and shall become a part of the assets of such fund as of such date.
    (5)  Notwithstanding  the  provisions  of  paragraph  four   of   this
  subdivision  or any other law to the contrary, any such income, interest
  or dividends which were received by the  pension  fund  in  either  such
  fiscal  year  referred  to  in  such  paragraph four may be used for the
  purpose specified in section 13-705 of this title (relating to  expenses
  incurred  in  the  acquisition, management and protection of investment)
  prior to use for the purposes stated in such paragraph four.
    c. (1) The comptroller shall make monthly payments,  in  twelve  equal
  installments,  with  respect to obligations which the city incurs to pay
  sums to the pension fund.
    (2) In the city's nineteen hundred eighty--nineteen hundred eighty-one
  fiscal year and in each city fiscal year thereafter, the  equal  monthly
  payments  shall be in respect of obligations which accrue in such fiscal

  year and shall be made in such fiscal year on or before the last day  of
  each month.
    (3)  The  board  of  trustees  of  the  pension  fund  may  waive  the
  requirements of  the  foregoing  provisions  of  this  subdivision  with
  respect  to  time of payment to such fund, provided that any such waiver
  of time of payment in any instance  shall  not  apply  to  the  time  of
  subsequent payments unless there shall be a subsequent waiver.