New York Unconsolidated|SECTION 16

                                                

  § 16. Reserve funds. (1) The corporation 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 proceeds of sale of bonds and notes
to the extent provided in the resolution of the corporation authorizing
the issuance thereof, and (b) any other moneys which may be made
available to the corporation 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 corporation secured by such reserve fund, as
the same mature, the purchase of such bonds of the corporation, the
payment of interest on such bonds of the corporation 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not be withdrawn therefrom at any time in such amount as would reduce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 corporation then outstanding and secured by such
reserve fund, except for the purpose of paying principal and interest on
the bonds of the corporation secured by such reserve fund maturing and
becoming due and for the payment of which other moneys of the
corporation 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
corporation 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 corporation then outstanding and secured by such reserve fund.

(2) The corporation 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 corporation, 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 corporation then outstanding and
secured by such reserve fund.

(3) In computing any debt service reserve fund for the purposes of
this section, securities in which all or a portion of such reserve fund
shall be invested shall be valued at the lower of cost or market value.

(4) With respect to any project, the corporation may create and
establish a special fund to be known as the project reserve fund and
deposit therein (a) such amount as may be determined by the corporation
in connection with any lease by the corporation to others to be charged
to such lessee for deposit in such fund, and (b) any other moneys which
may be made available to the corporation for the purpose of such fund
from any other source or sources. All moneys held in or credited to any
project reserve fund shall be first used for the payment of the
principal of and interest on the bonds or notes of the corporation
issued for the project secured by such project reserve fund in the event
that other moneys of the corporation, other than moneys held in the debt
service fund, are not available for such purpose. Upon the retirement of
the bonds or notes of the corporation issued for the project secured by
such project reserve fund, moneys so held in such fund may be used by
the corporation for any lawful purpose.