§ 486. Reserve funds, appropriations and other funds and accounts. 1.
(a) The fund shall create and establish a special fund (herein referred
to as capital reserve fund), and shall pay into such capital reserve
fund (1) any monies appropriated and made available by the state or the
city of Yonkers for the purposes of such fund, (2) any proceeds of sale
of notes or bonds to the extent provided in the resolution of the fund
authorizing the issuance thereof, and (3) any other monies which may be
made available to the fund for the purpose of such capital reserve fund
from any other source or sources. All monies held in the capital reserve
fund, except as hereinafter provided, shall be used solely for the
payment of the principal of bonds of the fund as the same mature, the
purchase of bonds of the fund, the payment of interest on such bonds of
the fund or the payment of any redemption premium required to be paid
when such bonds are redeemed prior to maturity; provided, however, that
moneys in such capital reserve fund shall not be withdrawn therefrom at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 fiscal year on all bonds of the fund then
outstanding, except for the purpose of paying principal of and interest
on such bonds of the fund maturing and becoming due and for the payment
of which other monies of the fund are not available. Any income or
interest earned by, or increment to, the capital reserve fund due to the
investment thereof may be transferred to other funds or accounts to the
extent it does not reduce the amount of the capital reserve fund below
the maximum amount of principal and interest maturing and becoming due
in any succeeding calendar year on all bonds of the fund then
outstanding.

(b) The fund shall not issue bonds at any time if the maximum amount
of principal and interest maturing and becoming due in a succeeding
fiscal year on such bonds then to be issued and on all other bonds of
the fund then outstanding will exceed the amount of the capital reserve
fund at the time of issuance unless the fund, at the time of issuance of
such bonds, shall deposit in the capital reserve fund from the proceeds
of the bonds so 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 fiscal year on such bonds then to be issued and on all other
bonds of the fund then outstanding.

(c) To assure the continued operation and solvency of the fund for the
carrying out of the public purposes of this article, provision is made
in paragraph (a) of this subdivision for the accumulation in the capital
reserve fund of an amount equal to the maximum amount of principal and
interest maturing and becoming due in any succeeding fiscal year on all
bonds of the fund then outstanding. In order further to assure such
maintenance of the capital reserve fund, the board of education shall
annually request from the city of Yonkers and pay over to the fund, for
deposit in the capital reserve fund, such sum, if any, as shall be
certified by the chairman of the fund to the board, the mayor and the
director of the budget of the city of Yonkers as necessary to restore
the capital reserve fund to an amount equal to the maximum amount of
principal and interest maturing and becoming due in the next succeeding
fiscal year on the bonds of the fund then outstanding; provided,
however, that such sum shall have been first appropriated by the city to
the board or shall otherwise have been made lawfully available to the
board for such purpose. The chairman of the fund shall annually, not
later than the fifteenth day of February in each year, make and deliver
to the board and the mayor his certificate stating the amount, if any,
required to restore the capital reserve fund to the amount aforesaid and
the amount so stated, if any, shall be paid to the fund by the board
during the then current fiscal year of the fund. In the event of the
failure or inability of the board to pay over the stated amount to the
fund on or before August first of the same year, the chairman of the
fund shall forthwith make and deliver to the mayor a further certificate
restating the amount so required and such amount shall be paid over to
the fund by the commissioner of finance out of the next payment of state
aid apportioned to the city of Yonkers on behalf of the city school
district of the city of Yonkers for the support of common schools. Any
amount so paid over to the fund shall be deducted from the corresponding
apportionment of state aid otherwise credited to the board of education
for its purposes and shall not obligate the state to make or entitle the
city or the board of education to receive any additional or increased
apportionment or payment of state aid for school purposes.

(d) In computing the amount of the capital reserve fund for the
purposes of this section, securities in which all or a portion of such
fund shall be invested shall be valued at par, or if purchased at less
than par, at their cost to the fund.

2. The fund may create and establish with the commissioner of finance
or with a trustee one or more additional funds or accounts and, subject
to agreements with bondholders and noteholders, may pay into such funds
or accounts (i) fees and charges collected by the fund, (ii) monies
which shall be transferred from the capital reserve fund pursuant to the
provisions of paragraph (a) of subdivision one of this section, and
(iii) any other monies which may be made available to the fund from any
other source or sources. The monies held in or credited to any such
reserve fund or account may, in the discretion of the fund but subject
to agreements with bondholders and noteholders, be used by the fund (a)
for the repayment of advances from the city of Yonkers, (b) to reimburse
the board of education of the city of Yonkers the reasonable costs of
services performed by the board for the fund pursuant to section four
hundred seventy-nine of this article, (c) to pay all costs, expenses and
charges of financing, including fees and expenses of trustees and paying
agents, (d) for transfers to the capital reserve fund, (e) for the
payment of principal of and interest on bonds or notes issued by the
fund when the same shall become due, whether at maturity or on call for
redemption, and for the payment of any redemption premium required to be
paid where such bonds or notes are redeemed prior to their stated
maturities, and to purchase bonds or notes issued by the fund, (f) for
such other corporate purposes as the fund in its discretion shall
determine and provide, or (g) for payment to the board of education for
school purposes.