§ 3865. Resources of the authority. 1. Subject to the provisions of
this title, the directors of the authority shall receive, accept,
invest, administer, expend and disburse for its corporate purposes all
moneys of the authority from whatever source derived including (a)
revenues and (b) proceeds of bonds, notes or other obligations.

2. Subject to the provisions of any contract with bondholders,
revenues of the authority shall be paid to the authority and shall not
be commingled with any other money.

3. The money in any of the authority's accounts shall be paid out on
checks signed by the treasurer of the authority, or by other lawful and
appropriate means such as wire or electronic transfer, on requisitions
of the chairperson of the authority or of such other officer as the
directors shall authorize to make such requisition, or pursuant to a
bond resolution or trust indenture.

4. All deposits of authority money shall be secured by obligations of
the United States or of the state or of the city at a market value at
least equal at all times to the amount of the deposit, and all banks and
trust companies are authorized to give such security for such deposits.
The authority shall have the power, notwithstanding the provisions of
this section, to contract with the holders of any of its bonds, notes or
other obligations as to the custody, collection, securing, investment
and payment of any money of the authority or any money held in trust or
otherwise for the payment of bonds, notes or other obligations or in any
way to secure bonds, notes or other obligations, and to carry out any
such contract notwithstanding that such contract may be inconsistent
with the other provisions of this title. Money held in trust or
otherwise for the payment of bonds, notes or other obligations or in any
way to secure bonds, notes or other obligations, and deposits of such
money, may be secured in the same manner as money of the authority, and
all banks and trust companies are authorized to give such security for
such deposits.

5. Revenues of the authority shall be applied in the following order
of priority: first to pay debt service or for set asides to pay debt
service on the authority's bonds, notes, or other obligations and to
replenish any reserve funds securing such bonds, notes or other
obligations of the authority, in accordance with the provision of any
indenture or bond resolution of the authority; then to pay the
authority's operating expenses not otherwise provided for; and then,
subject to the authority's agreement with the city, for itself or on
behalf of the city's dependent school district and any other covered
organization, to transfer as frequently as practicable the balance of
revenues not required to meet contractual or other obligations of the
authority to the city or the city's dependent school district as
provided in subdivision seven of this section.

6. (a) Any such payment of state aid revenues to the authority shall
not obligate the state to make available, nor entitle the city to
receive, any additional state aid.

(b) Nothing contained in this title shall be construed to create a
debt of the state within the meaning of any constitutional or statutory
provisions. Any provision with respect to state aid or state aid
revenues shall be deemed executory only to the extent of moneys
available, and no liability shall be incurred by the state beyond the
moneys available for that purpose, and any such payment by the
comptroller of state aid revenues is subject to annual appropriation of
state aid by the state legislature.

(c) Nothing contained in this title shall be deemed to restrict the
right of the state to amend, repeal, modify, or otherwise alter section
fifty-four of the state finance law or any provision relating to state
aid to municipalities. The authority shall include within any
resolution, contract, or agreement with holders of its bonds, notes or
other obligations a provision which states that no default occurs as a
result of the state's exercising its right to amend, repeal, modify, or
otherwise alter section fifty-four of the state finance law or any other
provision relating to state aid to municipalities.

7. On a monthly basis, the authority shall prepare and provide to the
city and the city's dependent school district a detailed separate
accounting of all revenues received and payments and debt service set
asides made, as attributable to the city and the city's dependent school
district. Such accounting shall reflect (a) the amount of state aid
revenues, city tax revenues and school district tax revenues received
during such month, (b) the respective portion of debt service paid or
set aside during such month by the authority for its notes, bonds and
other obligations attributable to the city and the city's dependent
school district; (c) the respective portion of reserve fund
replenishment made or set aside during such month by the authority in
connection with its notes, bonds and other obligations attributable to
the city and the city's dependent school district; and (d) the
respective portion of administrative expenses of the authority paid or
set aside during such month by the authority attributable to the city
and the city's dependent school district. As soon as practicable after
each monthly payment or set aside, the authority shall make respective
payments of the remaining monthly balance or revenues to the city and
the city's dependent school district in accordance with such separate
accounting. To the extent that such respective monthly payments of the
remaining balance of revenues result in an overpayment or underpayment
to the city or the city's dependent school district, the authority shall
in the immediately subsequent month, after making debt service payments
or debt service set asides, replenishing any reserve funds and paying
the administrative expenses of the authority for such month, make an
adjustment in favor of the city or the city's dependent school district,
as the case may be, before determining the remaining amount of the
balance of revenues for such subsequent month and paying such remaining
monthly balance of revenues to the city and the city's dependent school
district. Nothing in this title shall be deemed to restrict the
authority of the state comptroller and the commissioner of taxation and
finance to adjust for overpayments or underpayments pursuant to the tax
law.