If there are funds of a municipality, school district or district corporation, other than: 1. The proceeds of bonds, bond anticipation notes, capital notes, urban renewal notes and budget notes, and 2. Funds which, by law, may be used only for stated purposes, which are not immediately required for the purpose or purposes for which the same were borrowed, raised or otherwise created, the finance board may authorize the temporary use of such funds for the purpose or purposes for which an issue of bonds, capital notes or urban renewal notes has been authorized. Suitable records shall be kept of the temporary diversion of such funds. Notwithstanding the provisions of section 165.00 of this chapter, such funds shall be made again available to the municipality, school district or district corporation from the proceeds of such bonds, capital notes or urban renewal notes or from the proceeds of the sale of bond anticipation notes issued in anticipation of the sale of such bonds.
New York Legal Code