Section 1860-A. Reserve funds and appropriations

1. The authority may
  create and establish one or more reserve  funds  to  be  known  as  debt
  service reserve funds and may pay into such reserve funds (a) any moneys
  appropriated  and  made  available by the state for the purposes of such
  funds, (b) any proceeds of  sale  of  bonds  and  notes  to  the  extent
  provided  in  the  resolution  of the authority authorizing the issuance
  thereof, (c) any moneys directed to be transferred by the  authority  to
  such  funds, and (d) any other moneys which may be made available to the
  authority for the purposes of  such  funds  from  any  other  source  or
  sources. The moneys held in or credited to any debt service reserve fund
  established  under  this  subdivision,  except  as hereinafter provided,
  shall be used solely for the payment of the principal of  bonds  of  the
  authority  secured  by  such  reserve fund, as the same mature, required
  payments to any sinking fund established for the  amortization  of  such
  bonds (hereinafter referred to as "sinking fund payments"), the purchase
  or redemption of such bonds of the authority, the payment of interest on
  such  bonds  of  the  authority or the payment of any redemption premium
  required to be paid when such bonds  are  redeemed  prior  to  maturity;
  provided,  however,  that moneys in any such fund shall not be withdrawn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  the  bonds  of  the
  authority  then outstanding and secured by such reserve fund, except for
  the purpose of paying  principal  and  interest  on  the  bonds  of  the
  authority  secured  by  such  reserve fund maturing and becoming due and
  sinking fund payments for the payment  of  which  other  moneys  of  the
  authority  are  not  available.    Any  income or interest earned by, or
  increment to, any such debt service reserve fund due to  the  investment
  thereof may be transferred to any other fund or account of the authority
  to the extent it does not reduce the amount of such debt service reserve
  fund  below  the  maximum  amount of principal and interest maturing and
  becoming due in any  succeeding  calendar  year  on  all  bonds  of  the
  authority  then  outstanding  and  secured  by  such  reserve  fund.  In
  computing the amount of any debt service reserve fund for  the  purposes
  of  this  section,  securities in which all or a portion of such reserve
  fund are invested shall be valued at par or, if purchased at  less  than
  par, at their cost to the authority.
    2.  The  authority  shall  not  issue bonds at any time if the maximum
  amount of  principal  and  interest  maturing  and  becoming  due  in  a
  succeeding  calendar year on the bonds outstanding and then to be issued
  and secured by a debt service reserve fund will  exceed  the  amount  of
  such  reserve fund at the time of issuance, unless the authority, at the
  time of issuance of such bonds, shall deposit in such reserve fund  from
  the proceeds of the bonds so to be issued, or otherwise, an amount which
  together  with  the  amount  then in such reserve fund, will be not less
  than the maximum amount of principal and interest maturing and  becoming
  due  in  any succeeding calendar year on the bonds then to be issued and
  on all other bonds of the authority then outstanding and secured by such
  reserve fund.
    3. To assure the continued operation and solvency of the authority for
  the carrying out of the public purposes of this act provision is made in
  subdivision one of this  section  for  the  accumulation  in  each  debt
  service  reserve  fund  of  an  amount  equal  to  the maximum amount of
  principal and interest maturing  and  becoming  due  in  any  succeeding
  calendar year on all bonds of the authority then outstanding and secured
  by such reserve fund. In order further to assure the maintenance of such
  debt service reserve funds, there shall be annually apportioned and paid
  to the authority for deposit in each debt service reserve fund such sum,

  if  any,  as  shall be certified by the chairman of the authority to the
  governor and state director of the budget as necessary to  restore  such
  reserve  fund  to an amount equal to the maximum amount of principal and
  interest  maturing  and  becoming due in any succeeding calendar year on
  the bonds of the authority then outstanding and secured by such  reserve
  fund.  The  chairman  of  the  authority  shall  annually,  on or before
  December first, make and deliver to the governor and state  director  of
  the  budget his certificate stating the sum, if any, required to restore
  each such debt service reserve fund to the amount aforesaid, and the sum
  or sums so certified, if any, shall  be  apportioned  and  paid  to  the
  authority  during  the  then  current  state  fiscal year. The principal
  amount of bonds secured by a debt service reserve fund or funds to which
  state funds are apportionable pursuant  to  this  subdivision  shall  be
  limited  to  the  total  amount  of  bonds  and notes outstanding on the
  effective date of this act, plus the total amount  of  bonds  and  notes
  contracted  after  the effective date of this act to finance projects in
  progress on the effective date of this act as determined by the New York
  state public authorities control board created pursuant to section fifty
  of this chapter whose affirmative determination shall be  conclusive  as
  to  all  matters  of  law  and  fact  solely  for  the  purposes  of the
  limitations contained in this subdivision, but in  no  event  shall  the
  total  amount of bonds so secured by such a debt service reserve fund or
  funds exceed nine million six hundred sixty thousand dollars,  excluding
  bonds  issued  to  refund  such  outstanding  bonds  until  the  date of
  redemption of such outstanding bonds. As outstanding  bonds  so  secured
  are  paid,  the  amount  so secured shall be reduced accordingly but the
  redemption of such outstanding bonds  from  the  proceeds  of  refunding
  bonds shall not reduce the amount so secured.
    4. All amounts paid over to the authority by the state pursuant to the
  provisions  of  this  section  shall  constitute and be accounted for as
  advances by the state to the authority and, subject only to  the  rights
  of  the  holders  of  any bonds or notes of the authority theretofore or
  thereafter issued, shall be repaid  to  the  state  from  all  available
  operating  revenues  of  the authority in excess of debt service reserve
  fund requirements and operating expenses.
    5. As used in this section, (a) the term  "operating  expenses"  shall
  mean  ordinary  expenditures  for  operation  and  administration of the
  authority, including maintenance, repair and  replacement  of  authority
  property; and (b) the term "available operating revenues" shall mean all
  amounts  received  on  account  of  rentals  and  fees  charged  by  the
  authority, if any, and income or interest earned or added  to  funds  of
  the  authority due to the investment thereof, and not required under the
  terms or provisions of any covenant or agreement  with  holders  of  any
  bonds or notes of the authority to be applied to any purposes other than
  payment of operating expenses of the authority.