Section 1815. Special purpose funds

1.  The following shall constitute
  special purpose funds of the authority and shall, except as provided  in
  paragraph  (g)  of subdivision two of this section, be kept separate and
  apart from all other funds of the authority: (a) the proceeds of sale of
  special purpose bonds and notes, (b) any moneys made  available  by  the
  state  for  the  purposes  of  this  subtitle  only, (c) any moneys made
  available to the authority for the purposes of this subtitle  only  from
  any  other source or sources, including, without limitation, any federal
  agency, (d) any moneys received by the authority as payments on  account
  of  loans  and  loan  guarantees  made by the authority pursuant to this
  subtitle and any moneys  now  on  hand  or  hereafter  received  by  the
  authority  as  payments  on account of mortgage loans heretofore made by
  the authority pursuant to subtitle three, (e) any fees, charges or other
  moneys received by the authority in respect of projects assisted by  the
  authority  pursuant  to  this  subtitle  or  on  account of applications
  therefor, (f) any income or interest earned by,  or  increment  to,  any
  special  purpose  funds  due  to  the  investment  thereof,  and (g) the
  proceeds of the sale  of  general  purpose  bonds  or  notes  heretofore
  issued;  provided, however, amounts received by the authority in respect
  of loan guarantees, issued or to be issued, shall be kept  separate  and
  apart  from  all  other funds of the authority in a special purpose loan
  guarantee insurance fund  as  provided  in  subdivision  three  of  this
  section.
    2.  Subject  to  the  terms  of  any  agreement  with  special purpose
  bondholders and noteholders, special purpose funds may be  used  by  the
  authority   only  (a)  to  make  mortgage  loans  to  local  development
  corporations for costs of projects and loans for machinery and equipment
  as provided in section  eighteen  hundred  fourteen  hereof  to  improve
  employment  opportunities  in  any  area  of  the  state, (b) to pay the
  expenses of the authority referred to in clause (i) of  subdivision  one
  of  section  eighteen  hundred  twenty-eight of this title, (c) to repay
  advances from the state for use as special purpose funds  in  accordance
  with  any  provision of law or repayment agreement between the authority
  and the director of the budget, (d) to pay the principal and  redemption
  price  of or interest on special purpose bonds or notes, (e) to purchase
  special purpose bonds or notes, (f) to pay the principal and  redemption
  price  of  or  interest on any general purpose bonds or notes heretofore
  issued, (g) to make deposits  in  the  special  purpose  loan  guarantee
  insurance  fund  created  by  paragraph  a  of subdivision three of this
  section, or (h)  in  connection  with  projects  financed  with  special
  purpose funds to exercise any of the powers conferred in this title.
    3. Special purpose loan guarantee insurance fund.
    a.  There is hereby created a special purpose loan guarantee insurance
  fund for special purpose funds in respect of loan guarantees which shall
  be kept separate and apart from all other funds of the authority.
    b. The authority is hereby  directed  and  authorized  to  charge  the
  following  expenses against the special purpose loan guarantee insurance
  fund:
    (i) any expenses which are clearly attributable, in the opinion of the
  authority, to the exercise of any of the authority's powers  in  respect
  of loan guarantees issued or reasonably expected to be issued;
    (ii)  any  payments  and  all  expenses  attendant  thereto  which are
  required to be paid by the authority because of a default in the payment
  or in the other terms of a loan guaranteed by the authority;
    (iii) all expenses and payments for the protection of the  authority's
  interests in connection with defaulted or delinquent loans guaranteed by
  the authority, or in property possessed in consequences thereof;

    (iv)  all  amounts  required in the opinion of the authority to be set
  aside to provide a reasonable reserve for losses expected to be incurred
  by the authority as a result of defaults or  expected  defaults  in  the
  terms and payment of loans guaranteed by the authority;
    (v)  all  amounts required to repay advances from the state for use as
  special purpose funds in respect of loan guarantees in  accordance  with
  any  provision  of  law or repayment agreement between the authority and
  the director of the budget;
    (vi) all amounts required to pay the principal and redemption price of
  or interest on special purpose bonds and notes specially issued for  the
  purpose  of  providing  funds  to  the  special  purpose  loan guarantee
  insurance fund; and
    (vii) all amounts required to purchase special purpose bonds or  notes
  issued  for  the  purpose of providing funds to the special purpose loan
  guarantee insurance fund.
    c. The following shall constitute special purpose funds in respect  of
  a loan guarantee:
    (i) the proceeds of the issuance and sale of special purpose bonds and
  notes  issued  for the purpose of providing funds to the special purpose
  loan guarantee insurance fund;
    (ii) any moneys made available  by  the  state  for  the  purposes  of
  providing funds to the special purpose loan guarantee insurance fund and
  any  other  moneys  made available for the purpose of providing funds to
  the special purpose loan guarantee insurance fund from any other  source
  or sources, including, without limitation, any federal agency;
    (iii)  any  moneys  received  in  respect of loan guarantees including
  amounts received as loan guarantee insurance premiums or fees, or assets
  or property of any kind or nature received by the authority as a  result
  of  a  default  or  delinquency  with respect to loans guaranteed by the
  authority including the proceeds  from  the  sale,  disposal,  lease  or
  rental  of  real or personal property which the authority may receive in
  respect of a loan guarantee;
    (iv) any moneys  deposited  in  the  special  purpose  loan  guarantee
  insurance  fund  pursuant  to  paragraph  (g) of subdivision two of this
  section.