§ 8. Establishment and application of supervisory board fund for the
city of Troy. (a) There is hereby established a fund designated the
supervisory board fund for the city of Troy. Commencing on the effective
date of the initial financial plan approved by the supervisory board and
for the duration of the emergency period, all revenues received or to be
received by the city of Troy or any covered organization shall, unless
exempted by order of the supervisory board be revenues of the
supervisory board fund and shall be for the account of the city of Troy
and the appropriate covered organizations, but disbursement from the
supervisory board fund shall be made by the supervisory board in
accordance with the approved financial plan, except to the extent
expressly prohibited by federal law or where such revenues are pledged
to the payment of any outstanding bonds, notes or other obligations of
covered organizations. Notwithstanding the foregoing, the supervisory
board shall authorize the city of Troy to make all disbursements of city
of Troy revenues from the supervisory board fund, which disbursements
shall be made in accordance with the approved financial plan; provided,
that the supervisory board may withdraw such authorization if it
determines that (i) any disbursements made or to be made by the city of
Troy have not been or are likely not to be in compliance with the
approved financial plan, (ii) the city of Troy has violated any other
provisions of this act, or (iii) the city of Troy has violated an
agreement with any holder or guarantor of bonds or notes issued by the
city of Troy or a state financing agency. Commencing on the effective
date of the initial financial plan approved by the supervisory board,
and for the duration of any emergency period, all funds and accounts
established or thereafter established by the city of Troy of the covered
organizations shall, unless exempted by order of the supervisory board,
thereafter be funds and accounts of the supervisory board fund except to
the extend expressly prohibited by federal law or to the extent
prohibited by covenants or agreements relating to any outstanding bonds,
notes or other obligations of covered organizations. All such accounts
of the supervisory board shall have such captions and entries as the
supervisory board shall determine to be necessary to credit the
foregoing revenues and receipts to the supervisory board fund. The
moneys of the supervisory board fund shall not be deemed to be money of
the state or money under its control.

(b) The deposit of revenues into the supervisory board fund and the
investment or deposit of moneys therein shall be made in accordance with
and pursuant to procedures established by the supervisory board.

(c) In order to assure compliance with the financial plan, the
supervisory board shall from time to time adopt procedures controlling
the disbursement of moneys from the supervisory board fund.

(d) If at any time the supervisory board determines that the amount
then held in the supervisory board fund or the amount estimated by the
supervisory board to be held in the supervisory board fund is or will be
insufficient to meet the expenditures in the amounts and at the times
required by the financial plan, the supervisory board shall require
disbursements from the supervisory board fund to be made in the
following order or priority unless otherwise required by law of the
United States of America: (i) to the payment of debt service
requirements on all bonds and notes of the city of Troy and the covered
organizations whose money are included in the supervisory board fund,
(ii) to the payment of other liabilities having statutory or contractual
priority over remaining liabilities of the city of Troy and the covered
organizations whose moneys are included in the supervisory board fund,
and (iii) to the payment of other obligations on an allocated basis as
specified by the city of Troy for expenditures in accordance with the
financial plan provided that, in the event that the city of Troy fails
to so specify, the supervisory board may withhold payment of any of such
other obligations or may direct their payment pro rata.

(e) Notwithstanding anything to the contrary in subdivision (a) of
this section, so long as any bonds or notes issued pursuant to this act
are outstanding, all revenues pledged as additional security for any
bonds or notes in accordance with subdivision (a) of section nine of
this act shall be revenues of the supervisory board fund and shall be
for the account of the city of Troy, but disbursement shall be made by
the supervisory board to the municipal assistance corporation for the
city of Troy or to such other person in accordance with the terms and
conditions of any pledge of such revenues to the payment of principal of
and interest on any bonds or notes as permitted by subdivision (a) of
section nine of this act.

(f) The supervisory board shall cause to be performed such pre-audit
and post-audit reviews of the supervisory board fund and disbursements
therefrom as it may determine.