§ 1299-J — Reserve funds and appropriations

§ 1299-j. Reserve funds and appropriations. 1. The authority may\ncreate and establish one or more reserve funds to be known as debt\nservice reserve funds and may pay into such debt service reserve funds\n(a) any monies appropriated and made available by the state for the\npurposes of such funds, (b) any proceeds of sale of notes or bonds to\nthe extent provided in the resolution of the authority authorizing the\nissuance thereof, and (c) any other monies which may be made available\nto the authority for the purpose of such funds from any other source or\nsources. The monies held in or credited to any debt service reserve fund\nestablished under this section, except as hereinafter provided, shall be\nused solely for the payment of the principal of bonds of the authority\nsecured by such debt service reserve fund as the same mature, the\npurchase of such bonds of the authority, the payment of interest on such\nbonds of the authority or the payment of any redemption premium required\nto be paid when such bonds are redeemed prior to maturity; provided,\nhowever, that the authority shall have power to provide that monies in\nany such fund shall not be withdrawn therefrom at any time in such\namount as would reduce the amount of such fund to less than the maximum\namount of principal and interest maturing and becoming due in any\nsucceeding calendar year or years not exceeding two such years on the\nbonds of the authority then outstanding and secured by such debt service\nreserve fund, except for the purpose of paying principal of and interest\non such bonds of the authority secured by such debt service reserve fund\nmaturing and becoming due and for the payment of which other monies of\nthe authority are not available. Any income or interest earned by, or\nincrement to, any such debt service reserve fund due to the investment\nthereof may be transferred by the authority to any other fund or account\nof the authority and the authority shall have power to provide that any\nsuch transfer shall not reduce the amount of such debt service reserve\nfund below the maximum amount of principal and interest maturing and\nbecoming due in any succeeding calendar year or years not exceeding two\nsuch years on all bonds of the authority then outstanding and secured by\nsuch debt service reserve fund.\n 2. The authority shall have power to provide that it shall not issue\nbonds at any time if the maximum amount of principal and interest\nmaturing and becoming due in any succeeding calendar year or years not\nexceeding two such years on the bonds outstanding and then to be issued\nand secured by a debt service reserve fund will exceed the amount of\nsuch debt service reserve fund at the time of issuance, unless the\nauthority, at the time of the issuance of such bonds, shall deposit in\nsuch debt service reserve fund from the proceeds of the bonds so to be\nissued, or otherwise, an amount which, together with the amount then in\nsuch debt service reserve fund, will be not less than the maximum amount\nof principal and interest maturing and becoming due in any such\nsucceeding calendar year or years not exceeding two such years on the\nbonds then to be issued and on all other bonds of the authority then\noutstanding and secured by such debt service reserve fund.\n 3. In computing the amount of any debt service reserve fund for the\npurposes of this section, securities in which all or a portion of such\nfund shall be invested shall be valued at par, or if purchased at less\nthan par, at their cost to the authority.\n