§ 2472 — Reserve fund

* § 2472. Reserve fund. 1. The authority may create and establish one\nor more reserve funds to be known as debt service reserve funds and may\npay into such reserve funds (a) any payments received from a\nparticipating municipality (b) any moneys appropriated and made\navailable by the state for the purposes of such funds (c) any proceeds\nof sale of bonds and notes to the extent provided in the resolution of\nthe authority authorizing the issuance thereof (d) any moneys directed\nto be transferred by the authority to such funds, and (e) any other\nmoneys which may be made available to the authority for the purposes of\nsuch funds from any other source or sources. The moneys held in or\ncredited to any debt service reserve fund established under this\nsubdivision, except as hereinafter provided, shall be used solely for\nthe payment of the principal of and interest on bonds of the authority\nsecured by such reserve fund, as the same mature, required payments to\nany sinking fund established for the amortization of such bonds\n(hereinafter referred to as "sinking fund payments"), the purchase or\nredemption of such bonds of the authority or the payment of any\nredemption premium required to be paid when such bonds are redeemed\nprior to maturity; provided, however, that moneys in any such fund shall\nnot be withdrawn therefrom at any time in such amount as would reduce\nthe amount of such fund to less than the maximum amount of principal and\ninterest maturing and becoming due in the then current or any succeeding\ncalendar year on the bonds of the authority then outstanding and secured\nby such reserve fund, except for the purpose of paying principal and\ninterest on the bonds of the authority secured by such reserve fund\nmaturing and becoming due and sinking fund payments for the payment of\nwhich other moneys of the authority are not available. Any income or\ninterest earned by, or increment to, any such debt service reserve fund\ndue to the investment thereof may be transferred to any other fund or\naccount of the authority to the extent it does not reduce the amount of\nsuch debt service reserve fund below the maximum amount of principal and\ninterest maturing and becoming due in the then current or any succeeding\ncalendar year on all bonds of the authority then outstanding and secured\nby such reserve fund. In computing the amount of any debt service\nreserve fund for the purposes of this section, securities in which all\nor a portion of such reserve fund are invested shall be valued at par if\npurchased at par or, if purchased at other than par, at amortized value.\n 2. The authority shall not issue bonds at any time if the maximum\namount of principal and interest maturing and becoming due in the then\ncurrent or any succeeding calendar year on the bonds outstanding and\nthen to be issued and secured by a debt service reserve fund will exceed\nthe amount of such reserve fund at the time of issuance, unless the\nauthority, at the time of issuance of such bonds, shall deposit in such\nreserve fund from the proceeds of the bonds so to be issued, or\notherwise, an amount which together with the amount then in such reserve\nfund, will be not less than the maximum amount of principal and interest\nmaturing and becoming due in the then current or any succeeding calendar\nyear on the bonds then to be issued and on all other bonds of the\nauthority then outstanding and secured by such reserve fund.\n 3. To assure the continued operation and solvency of the authority for\nthe carrying out of the public purposes of this act, provision is made\nin subdivision one of this section for the accumulation in each debt\nservice reserve fund of an amount equal to the maximum amount of\nprincipal and interest maturing and becoming due in the then current or\nany succeeding calendar year on all bonds of the authority then\noutstanding and secured by such reserve fund.\n 4. Upon full amortization of any outstanding bonds issued for the\nacquisition, construction or rehabilitation of sports facilities, the\nauthority is empowered to provide for the transfer or sale of such\nfacilities to the participating municipality.\n * NB (Disbanded March, 1980)\n