§ 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be withdrawn therefrom at any time in such amount as would reduce the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.