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This entry was published on 2014-09-22
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Reserve fund
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 25
* § 2512. Reserve fund. 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 city 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 section, except
as hereinafter provided, shall be used solely for the payment of the
principal of an interest on 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 or the payment or 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that moneys in any such fund shall not be withdrawn therefrom at any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

* NB (Discontinued-Board of Directors never appointed)