§ 2537. Reserve fund and appropriations. 1. (a) The corporation shall
create and establish a special fund (herein referred to as the capital
reserve fund) on or before December first, nineteen hundred seventy-five
and shall pay into such capital reserve fund (1) any monies appropriated
and made available by the city for the purpose of such fund, (2) any
proceeds of sale of notes or bonds, to the extent provided in the
resolution or resolutions of the corporation authorizing the issuance
thereof, and (3) any other monies which may be made available to the
corporation for the purpose of such fund from any other source. All
monies held in the capital reserve fund, except as hereinafter provided,
shall be used as required solely for the payment of the principal of
bonds as the same mature, sinking fund payments, the purchase or
redemption of bonds, the payment of interest on bonds or the payment of
any redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that monies 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be withdrawn therefrom at any time in such amount as would reduce the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 capital reserve fund requirement,
except for the purposes provided herein, for which other monies of the
corporation are not available. Any income or interest earned by, or
increment to, the capital reserve fund due to the investment thereof may
be transferred by the corporation to other funds or accounts of the
corporation to the extent it does not reduce the amount of the capital
reserve fund below the capital reserve fund requirement.

(b) 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 corporation.

(c) To assure the continued operation and solvency of the corporation
for the carrying out of its corporate purpose, provision is made in
paragraph (a) of this subdivision for the accumulation in the capital
reserve fund of an amount equal to the capital reserve fund requirement.
In order further to assure such maintenance of the capital reserve fund,
there shall be paid by the city to the corporation for deposit in the
capital reserve fund on or before the first day of December, in each
year, such amount, if any, needed for the purpose of maintaining the
capital reserve fund at the capital reserve fund requirement as shall be
certified by the chairman of the corporation to the mayor and the
director of management and budget on or before the fifteenth day of
February next preceding; provided that any such amount shall have been
first appropriated by or on behalf of the city for such purpose or shall
have been otherwise made available.

2. The corporation may create and establish such other fund or funds
as may be necessary or desirable for its corporate purpose.