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There is hereby continued the fund known as the "water sinking fund of the city of New York" which shall have for its purpose the amortization and redemption of all corporate stock of the city of New York issued on and after the first day of January, eighteen hundred ninety-eight, to provide for the supply of water, excepting that issued since the first day of July nineteen hundred eighty-one which is redeemable from the general sinking fund or any other sinking fund established pursuant to sections two hundred ninety through two hundred ninety-nine.
There is hereby continued the fund known as the "rapid transit sinking fund of the city of New York" which shall have for its purpose the amortization and redemption of all corporate stock of the city of New York issued on and after the first day of January, nineteen hundred ten, for rapid transit purposes, excepting that issued since the first day of July nineteen hundred eighty-one which is redeemable from the general sinking fund or any other sinking fund established pursuant to sections two hundred ninety through two hundred ninety-nine.
There is hereby continued the fund known as the "transit unification sinking fund of the city of New York" which shall have for its purpose the amortization and redemption of all corporate stock of the city of New York issued on and after the first day of January, nineteen hundred thirty-nine, for transit unification purposes.
The comptroller shall administer and manage the several sinking funds of the city established prior to July first, nineteen hundred eighty-one, and shall have custody of the securities in such funds. In the administration of such funds the comptroller shall be deemed to be acting in a fiduciary capacity. Where moneys of such sinking funds are invested pursuant to section two hundred seventy-five, in securities which are obligations of the United States or of any agency, subdivision, department, division or instrumentality thereof, or obligations fully guaranteed or insured as to interest and principal by an agency, subdivision, department, division or instrumentality of the United States, acting pursuant to a grant of authority from the congress of the United States, notwithstanding any other provision of law, the comptroller may turn over the physical custody and safekeeping of these obligations to (a) any bank or trust company incorporated in this state, or (b) any national bank located in this state, or (c) any private banker duly authorized by the superintendent of banks of this state to engage in business here. All such private bankers shall, as private bankers, maintain a permanent capital of not less than one million dollars in this state. The comptroller may direct such bank, trust company or private banker to register and hold any such securities in its custody, in the name of its nominee. The comptroller may deposit, or authorize such bank, trust company or private banker, to deposit, or arrange for the deposit of, any of such securities with a federal reserve bank to be credited to an account as to which the ownership of, and other interest in, such securities may be transferred by entries on the books of such federal reserve bank without physical delivery of any such securities. The records of any such bank, trust company or private banker shall show, at all times, the ownership of such obligations, and they shall, when held in the possession of such bank, trust company or private banker be, at all times, kept separate from the assets of such bank, trust company or private banker. When any such obligations are so registered in the name of a nominee, such bank, trust company or private banker shall be absolutely liable for any loss occasioned by the acts of such nominee with respect to such obligations.
The comptroller may invest the moneys of the several sinking funds of the city established prior to July first, nineteen hundred eighty-one in any of the following securities:
1. Obligations of the city of New York.
2. Obligations of the state of New York.
3. Obligations of the United States or of any agency, subdivision, department, division or instrumentality thereof, or obligations fully guaranteed or insured as to interest and principal by any agency, subdivision, department, division or instrumentality of the United States, acting pursuant to a grant of authority from the congress of the United States.
4. Obligations of the municipal assistance corporation for the city of New York.
For the redemption of the corporate stock redeemable from the several sinking funds of the city established prior to July first, nineteen hundred eighty-one there shall be included annually in the budget and paid into each of such sinking funds an amount to be estimated and certified by the comptroller, which amount shall be not less than the aggregate of such annual contributions, as calculated at the time each issue of corporate stock redeemable from such sinking fund was made, would be sufficient if thereafter annually contributed to such fund together with the accumulations of interest thereon computed at the rate of four per centum per annum to meet and discharge such outstanding corporate stock when the same shall be payable; provided, however, that if at the close of a fiscal year there is in any sinking fund a surplus over and above the reserve required by such sinking fund computed as hereinabove provided, the comptroller, in estimating the amount to be included for such sinking fund in the budget, shall reduce the amount of the annual contributions by the amount of such surplus. Amounts received annually from the operation of any rapid transit railroad for the construction, equipment or acquisition of which corporate stock redeemable from any such fund shall have been issued, shall not be considered or treated as surplus, but such amounts shall be deducted from the amount certified by the comptroller for the budget for the ensuing year.
Not later than the tenth day in each month, the comptroller shall submit to the mayor and the council a certified report, which shall be published forthwith in the City Record, setting forth the operations of the several sinking funds during the preceding month and the condition of such funds at the commencement and close of such month and such other information as may be required.
Not later than the first day of September in each year, the comptroller shall submit to the mayor and the council a certified report, which shall be published forthwith in convenient form as a supplement to the City Record and which shall set forth in detail the operations of the several sinking funds during the preceding fiscal year, the reserves required, the assets of such funds at the close of such year, the obligations redeemable from such funds, the dates of their maturities and such other information as may be required.
The provisions of sections two hundred ninety-one through two hundred ninety-nine shall apply to the establishment, operation and administration of sinking funds established on or after July first, nineteen hundred eighty-one.
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