Section 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.N.Y. City of Troy Issuance of Serial Bonds Law § 8-a