Section 1820. Pollution control funds

1. The following shall constitute
  pollution control funds of the authority and shall be kept separate  and
  apart from all other funds of the authority: (a) the proceeds of sale of
  pollution  control  bonds and notes (b) any moneys appropriated and 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, (d) any moneys received by the
  authority as payments on account of loans made by the authority pursuant
  to this subtitle, (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, and (f) any income
  or interest earned by, or any increment added to, any pollution  control
  funds due to the investment thereof.
    2. The authority shall further create and establish a separate fund to
  be  known  as the "pollution control capital reserve fund" and shall pay
  into such capital reserve fund (1) any moneys apportioned  and  paid  by
  the  state  for the purposes of such fund pursuant to subdivision two of
  section eighteen hundred twenty-eight of this title, (2) any proceeds of
  sale of pollution control bonds or notes to the extent provided  in  the
  resolution  of  the  authority authorizing the issuance thereof, (3) any
  pollution control funds directed to be transferred by the  authority  to
  such  capital  reserve  fund, and (4) any other moneys which may be made
  available to the authority for the purposes of such fund from any  other
  source or sources.
    The  moneys  credited  to  such pollution control capital reserve fund
  shall be used, except as hereinafter provided, solely for the payment of
  the principal of pollution control bonds of the authority, as  the  same
  mature, the purchase of pollution control bonds, the payment of interest
  on  pollution  control  bonds,  and  the  payment  of  principal and any
  redemption premium required to be paid upon a redemption of  such  bonds
  prior to maturity; provided, however, that moneys in such 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  be  withdrawn  therefrom  at any time in such amount as would reduce the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 calendar year on
  all pollution control bonds of the authority  then  outstanding,  except
  for the purpose of paying the principal of and interest on the pollution
  control bonds of the authority maturing and becoming due for the payment
  of which other moneys of the authority are not available.
    Moneys  in the pollution control capital reserve fund not required for
  immediate use or disbursement may be invested in accordance with all the
  otherwise consistent provisions of section ninety-eight-a of  the  state
  finance  law.  In  computing the amount of the pollution control capital
  reserve fund for the purposes of this section, securities in  which  all
  or  a  portion  of  such fund are invested shall be valued at par or, if
  purchased at less  than  par,  at  their  cost  to  the  authority.  The
  authority shall not issue pollution control bonds at any time secured by
  the  pollution  control  capital  reserve  fund if the maximum amount of
  principal and interest maturing  and  becoming  due  in  any  succeeding
  calendar  year  on  the pollution control bonds then to be issued and on
  all other pollution control bonds of the authority then outstanding will
  exceed the amount of the pollution control capital reserve fund  at  the
  time  of  issuance unless the authority, at the time of issuance of such
  pollution control bonds, shall deposit in such fund from the proceeds of
  the pollution control bonds 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 calendar year on the pollution control bonds then  to  be

  issued  and  on  all other pollution control bonds of the authority then
  outstanding.
    Any  excess in the pollution control capital reserve fund at the close
  of any fiscal year of the authority  over  the  maximum  amount  of  the
  principal  and  interest  maturing  and  becoming  due in any succeeding
  calendar year on all pollution  control  bonds  of  the  authority  then
  outstanding  shall  be  withdrawn  by  the  authority  from said capital
  reserve fund and, subject to  the  provisions  of  subdivision  four  of
  section  eighteen  hundred twenty-eight of this title, used as pollution
  control funds.
    3. Subject to the  terms  of  any  agreement  with  pollution  control
  bondholders  and noteholders, pollution control funds may be used by the
  authority (a) to make loans to local development corporations for  costs
  of  projects specified in section eighteen hundred seventeen in any area
  of the state, (b) to pay the expenses of the authority  referred  to  in
  any  of  the  clauses  of  subdivision  one  of section eighteen hundred
  twenty-eight of this title,  (c)  to  make  payments  to  the  pollution
  control  capital  reserve fund, (d) to repay advances from the state for
  use as pollution control funds in accordance with any provision  of  law
  or  repayment  agreement  between  the authority and the director of the
  budget, (e) to pay the principal and redemption price of or interest  on
  pollution  control  bonds  or  notes,  (f) to purchase pollution control
  bonds or notes,  or  (g)  in  connection  with  projects  financed  with
  pollution  control funds to exercise any of the powers conferred in this
  title. Investment proceeds and repayments from borrowers credited to the
  pollution control fund may, to the extent that  they  are  not  required
  pursuant  to  the  preceding  sentence  of this subdivision, be used for
  other purposes of the authority.