§ 2439. Reserve funds and appropriations. The agency shall create and
establish one or more special funds to be known as debt service reserve
funds and shall 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 or notes, to the extent provided in the
resolution of the agency authorizing the issuance thereof and (c) any
other moneys which may be available to the agency for the purposes of
such funds from any other source or sources. The moneys held in or
credited to the debt service reserve fund established under this
subdivision, except as hereinafter provided, shall be used solely for
the payment of the principal of the bonds of the agency secured by such
reserve fund, as the same mature, sinking fund payments, the purchase of
such bonds of the agency, the payment of interest on such bonds of the
agency, 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moneys in any such fund shall not be withdrawn therefrom at any time in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
debt service reserve fund requirement, except for the purpose of paying
principal and interest on the bonds of the agency secured by such
reserve fund maturing and becoming due and any sinking fund payments and
for the payment of which other moneys of the agency are not available.
Moneys in any debt service reserve fund not required for immediate use
or disbursement, at the discretion of the agency may be invested in any
investments approved or authorized in accordance with the provisions of
section ninety-eight of the state finance law. 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 fund are invested shall be
valued at par if purchased at par, or if purchased at other than par, at
amortized value. The agency shall not issue bonds at any time if upon
issuance, the amount in the debt service reserve fund securing such
bonds will be less than the debt service reserve fund requirement,
unless the agency, 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 debt service reserve fund
requirement.

Any excess in any debt service reserve fund at the close of any fiscal
year of the agency over the debt service reserve fund requirement may be
transferred to any other fund or account of the agency as the agency may
determine.