§ 8-a. Establishment and application of a general debt service fund.
(a) The city shall establish a general debt service fund for the purpose
of paying debt service due or becoming due in the then current fiscal
year and in subsequent fiscal years and for making payments to the
county of Rensselaer in accordance with section eight-b of this act. All
monies in the fund shall be held by the comptroller, who shall
administer and maintain the fund in accordance with the provisions of
this section and section eight-b.

(b) All payments of or on account of real estate taxes or assessments
collected by the city on its own behalf or on behalf of the county of
Rensselaer shall be immediately upon receipt deposited in such fund. On
or before the fifth business day of each month, the city shall certify
to the comptroller the amount of deposits during the immediately
preceding month that constitute collections of or on account of real
estate taxes or assessments on behalf of the county of Rensselaer.
Except as otherwise provided in section eight-b of this act, the
comptroller shall retain, disburse and apply monies in the fund during
each month as follows:

1. During the first month of each fiscal quarter, there shall be
retained in the fund, subject to the provisions of subdivision (c) of
this section, all real estate tax payments deposited in the fund until
there shall have been retained from monies so deposited during such
month an amount equal to the total monthly debt service, computed as of
the date of any disbursement of money from the fund, for the second and
third months of such fiscal quarter; provided that such amount shall be
reduced by any amount already on deposit in the fund which may be used
to pay the monthly debt service for such months.

For purposes of this section, fiscal quarter shall mean the
three-month period beginning January first, April first, July first or
October first, and monthly debt service shall mean, as of any date of
computation, the amount of monies equal to the aggregate of (i) all
interest payable during such month on bonds and notes of the city, plus
(ii) the amount of principal (including payments into sinking funds)
maturing or otherwise coming due during such month on all bonds of the
city (excluding principal payments made from sinking funds required by
the terms of certain city bonds), plus (iii) the amount of principal to
be paid on notes of the city during such month from sources other than
the proceeds of bonds or renewal notes (exclusive of revenue
anticipation notes and tax anticipation notes or renewals thereof issued
less than two years prior to the date of computation).

2. During the second and third months of each fiscal quarter, there
shall be retained in the fund, subject to the provisions of subdivision
(c) of this section, all real estate tax payments deposited in the fund
until there shall have been retained from monies so deposited during
such month an amount equal to the total monthly debt service, computed
as of the date of any disbursement of monies from the fund, for the
first month of the next succeeding fiscal quarter; provided that such
amount shall be reduced by any amount already on deposit in the fund
which may be used to pay the monthly debt service for such month.

3. The city may at any time pay into the fund any monies required by
law to be used to pay monthly debt service and any other monies
available for such purpose.

(c) The board may approve, subject to agreements made with the holders
or guarantors of outstanding notes or bonds issued by or for the benefit
of the city after the effective date of this act, criteria for
calculating a proportion of real estate tax receipts to be retained in
the fund in order to provide for the retention of amounts required by
the provisions of subdivision (b) of this section in lieu of the
retention of all initial receipts as required by such subdivision;
provided, that if the board at any time determines that retentions in
the fund pursuant to the provisions of such subdivision are or are
likely to be insufficient to provide for the payment of monthly debt
service when due, in order to ensure that the amounts on deposit in the
fund will be sufficient to pay monthly debt service when due, the board
shall require (i) that real estate tax receipts be retained in the fund
in greater amounts or at earlier dates than the provisions of such
subdivision require, or (ii) that other revenues or cash resources of
the city be paid into the fund. Prior to the issuance by the city of any
bonds or notes, the board shall review any criteria then in effect which
determine the proportion of real estate tax receipts to be retained in
the fund to determine whether the proposed debt service schedule for
such bonds or notes is consistent with the monies which will be
available therefor or whether such criteria should be revised. The board
shall from time to time take such action as it determines is necessary,
including disapproval of a proposed issue pursuant to paragraph (vi) of
subdivision (g-1) of section 10 of this act, so that the monies in the
fund shall be adequate to meet debt service requirements.

(d) The board may approve criteria for calculating a proportion of
real estate tax receipts to be retained in the fund in order to provide
for the retention of amounts required by section eight-b of this act,
but only in accordance with the real property tax law, the charter of
the city, and any agreement concerning such matters between the city and
the county of Rensselaer.

(e) The comptroller shall invest the monies in the fund in permissible
investments under sections 98 and 98-a of the state finance law, subject
in all respects to any agreements made with holders or guarantors of
outstanding notes or bonds issued by or for the benefit of the city
after the effective date of this subdivision. Any earnings accruing on
such investment shall inure to the benefit of the city. At least one
business day prior to the beginning of each month the city shall provide
the comptroller with a detailed schedule of cash flow requirements from
the fund under this section and section eight-b of this act for the
ensuing three month period. Notwithstanding any other provision of law
to the contrary, the decisions of the comptroller as to the investments
purchased from monies in the fund shall be conclusive.

(f) Notwithstanding any other provision of this section, the city may,
at any time, subject to approval by the comptroller, designate a trust
company or bank having its principal place of business in the state of
New York and having the powers of a trust company in the state of New
York to hold all or any part of the monies in the fund and to administer
and maintain the monies so held in accordance with the applicable
provisions of this section and any agreements made pursuant thereto.