1. (1) Except where defects or improprieties of the type specified in section 2051.2(b)(2) of this Part justify extension of the date by which contract payment must be made, the corporation shall be liable for the payment of interest on the contract payment if payment is made later than the date specified in section 2051.2(b)(1) of this Part, in which case interest shall be calculated from the date payment was due under said section 2051.2(b)(1) until the payment date.

2. (2) Interest shall be computed at the rate equal to the rate set by the New York State Tax Commission for corporate taxes pursuant to section 1096(e)(1) of the Tax Law.

   (b) Sources of funds.

   The corporation will make any payment of interest required by paragraph (a)(1) of this section with moneys in the corporation's operating funds, established pursuant to the corporation's Phase I indenture of trust or its Phase II/III indenture of trust.

(a) Payment of interest.