Section 527-H. Reserve fund requirement

1. The division shall require that
  a reserve fund shall be established  for  each  facility  rehabilitation
  grant  or  new  facility operation agreement awarded to a not-for-profit
  corporation pursuant to this title. In no event shall such reserve  fund
  be  in  an  amount which is less than five percent of the project costs.
  Such reserve fund shall be provided by the division from funds available
  to it.
    2. Such moneys shall be deposited to the custody of  the  comptroller,
  who  shall  maintain  a  separate account for each such grant awarded or
  agreement  funded  pursuant  to  this  article.  Upon  application,  the
  comptroller  shall  make  moneys  in  the  reserve fund available to the
  not-for-profit corporation only for  purposes  of  making  extraordinary
  repairs,  other  than  ordinary  and  regular maintenance and repair, to
  either new facility project property or the areas, buildings, structures
  or facilities for which a facility rehabilitation grant was awarded, and
  only after the commissioner of the office of general  services  approves
  of,  the need for such repair and certifies to the comptroller such need
  and the amount approved  for  withdrawal  from  the  reserve  fund.  Any
  interest  earned on the moneys in a reserve fund shall be applied to pay
  debt service on such bonds except for any amount which must  be  rebated
  to  the  United  States  in  order  to provide for continued federal tax
  exempt status for the bonds and notes. Unless expended  earlier,  moneys
  shall  be  maintained  in  a  reserve  fund created for a not-for-profit
  corporation to which a facility rehabilitation grant was awarded  for  a
  period  of  fifteen  years  from the date of commencement of renovation,
  rehabilitation, repair, remodeling or improvement, and for a  period  of
  thirty  years  from  the  date  of commencement of construction on a new
  facility project. At the end of such fifteen or  thirty  years,  as  the
  case may be, any moneys then still to the credit of a reserve fund shall
  be transferred to the state's general fund.