1840-G - Reserve funds.
§ 1840-g. Reserve funds. 1. The authority shall create and establish one or more reserve funds to be known as debt service reserve funds and may pay into such reserve funds: (a) any proceeds of sale of bonds and notes to the extent provided in the resolution of the authority authorizing the issuance thereof, and (b) any moneys appropriated and made available by the counties for the purposes of such funds, and (c) any other moneys made available to the authority from any other source or sources for the purposes of such funds, and (d) any moneys received by the authority or payments on account of any loan, lease, sale or other agreement made by the authority on an assisted project; and (e) any fees, charges or other moneys received by the authority on account of any loan, lease, sale or other agreement made by the authority on an assisted project or on account of applications therefore; and (f) any income or interest earned by, or any increment added to, any reserve funds due to the investment thereof. 2. The moneys held in or credited to any debt service reserve fund established pursuant to this section shall except as hereinafter provided, be used solely for the payment of the principal of bonds of the authority secured by such reserve funds, as the same mature, the purchase of such bonds of the authority, the payment of interest on such bonds of the authority or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; provided, however, that moneys in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on the bonds of the corporation then outstanding and secured by such reserve fund, except for the purpose of paying principal and interest on the bonds of the authority secured by such reserve fund maturing and becoming due and for the payment of which other moneys of the authority are not available. Any income or interest earned by, or increment to, any such debt service reserve fund due to the investment of the moneys thereof may be transferred to any other fund or account of the authority to the extent it does not reduce the amount of such debt service reserve fund below the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on all bonds of the authority then outstanding and secured by such reserve fund. 3. The authority shall not issue bonds at any time if the maximum amount of principal and interest maturing and becoming due in a succeeding calendar year on the bonds outstanding and then to be issued and secured by a debt service reserve fund will exceed the amount of such reserve fund at the time of issuance, unless the authority, at the time of issuance of such bonds, shall provide for the deposit in such reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which together with the amount then in such reserve fund, will be not less than the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on the bonds then to be issued and on all other bonds of the corporation then outstanding and secured by such reserve fund. 4. In computing any debt service reserve fund requirements pursuant to this section, securities in which all or a portion of such reserve fund shall be invested shall be valued at par, or if purchased at less than par, at their cost to the authority.