Section 486. Reserve funds, appropriations and other funds and accounts

1.
  (a) The fund shall create and establish a special fund (herein  referred
  to  as  capital  reserve  fund), and shall pay into such capital reserve
  fund (1)any monies appropriated and made available by the state  or  the
  city  of Yonkers for the purposes of such fund, (2) any proceeds of sale
  of notes or bonds to the extent provided in the resolution of  the  fund
  authorizing  the issuance thereof, and (3) any other monies which may be
  made available to the fund for the purpose of such capital reserve  fund
  from any other source or sources. All monies held in the capital reserve
  fund,  except  as  hereinafter  provided,  shall  be used solely for the
  payment of the principal of bonds of the fund as the  same  mature,  the
  purchase  of bonds of the fund, the payment of interest on such bonds of
  the fund 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  moneys in such capital reserve fund shall not be withdrawn therefrom  at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  on  all  bonds  of the fund then
  outstanding, except for the purpose of paying principal of and  interest
  on  such bonds of the fund maturing and becoming due and for the payment
  of which other monies of the fund  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  succeeding  calendar  year  on  all  bonds  of  the  fund  then
  outstanding.
    (b)  The  fund shall not issue bonds at any time if the maximum amount
  of principal and interest maturing and  becoming  due  in  a  succeeding
  fiscal  year  on  such bonds then to be issued and on all other bonds of
  the fund then outstanding will exceed the amount of the capital  reserve
  fund at the time of issuance unless the fund, 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 be not less than the maximum
  amount of principal and  interest  maturing  and  becoming  due  in  any
  succeeding  fiscal year on such bonds then to be issued and on all other
  bonds of the fund then outstanding.
    (c) To assure the continued operation and solvency of the fund for the
  carrying out of the public purposes of this article, provision  is  made
  in paragraph (a) of this subdivision for the accumulation in the capital
  reserve  fund  of an amount equal to the maximum amount of principal and
  interest maturing and becoming due in any succeeding fiscal year on  all
  bonds  of  the  fund  then  outstanding. In order further to assure such
  maintenance of the capital reserve fund, the board  of  education  shall
  annually  request from the city of Yonkers and pay over to the fund, for
  deposit in the capital reserve fund, such  sum,  if  any,  as  shall  be
  certified  by  the  chairman of the fund to the board, the mayor and the
  director of the budget of the city of Yonkers as  necessary  to  restore
  the  capital  reserve  fund  to an amount equal to the maximum amount of
  principal and interest maturing and becoming due in the next  succeeding
  fiscal  year  on  the  bonds  of  the  fund  then outstanding; provided,
  however, that such sum shall have been first appropriated by the city to
  the board or shall otherwise have been made lawfully  available  to  the
  board  for  such  purpose.  The chairman of the fund shall annually, not
  later than the fifteenth day of February in each year, make and  deliver
  to  the  board and the mayor his certificate stating the amount, if any,
  required to restore the capital reserve fund to the amount aforesaid and

  the amount so stated, if any, shall be paid to the  fund  by  the  board
  during  the  then  current  fiscal year of the fund. In the event of the
  failure or inability of the board to pay over the stated amount  to  the
  fund  on  or  before  August first of the same year, the chairman of the
  fund shall forthwith make and deliver to the mayor a further certificate
  restating the amount so required and such amount shall be paid  over  to
  the fund by the commissioner of finance out of the next payment of state
  aid  apportioned  to  the  city  of Yonkers on behalf of the city school
  district of the city of Yonkers for the support of common  schools.  Any
  amount so paid over to the fund shall be deducted from the corresponding
  apportionment  of state aid otherwise credited to the board of education
  for its purposes and shall not obligate the state to make or entitle the
  city or the board of education to receive any  additional  or  increased
  apportionment or payment of state aid for school purposes.
    (d)  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 less
  than par, at their cost to the fund.
    2. The fund may create and establish with the commissioner of  finance
  or  with a trustee one or more additional funds or accounts and, subject
  to agreements with bondholders and noteholders, may pay into such  funds
  or  accounts  (i)  fees  and  charges collected by the fund, (ii) monies
  which shall be transferred from the capital reserve fund pursuant to the
  provisions of paragraph (a) of subdivision  one  of  this  section,  and
  (iii)  any other monies which may be made available to the fund from any
  other source or sources. The monies held in  or  credited  to  any  such
  reserve  fund  or account may, in the discretion of the fund but subject
  to agreements with bondholders and noteholders, be used by the fund  (a)
  for the repayment of advances from the city of Yonkers, (b) to reimburse
  the  board  of  education of the city of Yonkers the reasonable costs of
  services performed by the board for the fund pursuant  to  section  four
  hundred seventy-nine of this article, (c) to pay all costs, expenses and
  charges of financing, including fees and expenses of trustees and paying
  agents,  (d)  for  transfers  to  the  capital reserve fund, (e) for the
  payment of principal of and interest on bonds or  notes  issued  by  the
  fund  when the same shall become due, whether at maturity or on call for
  redemption, and for the payment of any redemption premium required to be
  paid where such bonds or  notes  are  redeemed  prior  to  their  stated
  maturities,  and  to purchase bonds or notes issued by the fund, (f) for
  such other corporate purposes  as  the  fund  in  its  discretion  shall
  determine  and provide, or (g) for payment to the board of education for
  school purposes.