§ 5-1.5-5-1 — Establishment; application of funds; required debt service reserve; excess money

Indiana § 5-1.5-5-1

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.5: INDIANA BOND BANK
• Ch. 5: Reserve Fund

Text

(a) The board may establish and maintain a
reserve fund for each issue of bonds or notes in which there shall be
deposited or transferred:
(1) all money appropriated by the general assembly for the
purpose of the fund in accordance with section 4(a) of this
chapter;
(2) all proceeds of bonds or notes required to be deposited in the
fund by terms of a contract between the bank and its holders or a
resolution of the bank with respect to the proceeds of bonds or
notes;
(3) all other money appropriated by the general assembly to a
reserve fund; and
(4) any other money or funds of the bank that it decides to deposit
in the fund.
(b) Subject to section 4(b) of this chapter, money in any reserve
fund shall be held and applied solely to the payment of the interest on
and principal of bonds or notes of the bank as the interest and principal
become due and payable and for the retirement of bonds or notes. The
money may not be withdrawn if a withdrawal would reduce the amount
in the reserve fund to an amount less than the required debt service
reserve, except for payment of interest then due and payable on bonds
or notes and the principal of bonds or notes then maturing and payable,
whether by reason of maturity or mandatory redemption, for which
payments other money of the bank is not then available. As used in this
chapter, "required debt service reserve" means, as of the date of
computation, the amount required to be on deposit in the reserve fund
as provided by resolution or trust agreement of the bank.
(c) Money in any reserve fund in excess of the required debt service
reserve, whether by reason of investment or otherwise, may be
withdrawn at any time by the bank and transferred to another fund or
account of the bank, subject to the provisions of any agreement with
the holders of any bonds or notes.

Legislative History

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.18; P.L.46-1987, SEC.13.