§ 509 — Reserve fund

§ 509. Reserve fund. 1. The corporation shall create and establish a\nspecial fund (herein referred to as the capital reserve fund), and shall\npay into such capital reserve fund:\n a. Any moneys appropriated and made available by participating\ncounties for the purpose of such capital reserve fund;\n b. Any proceeds of sale of bonds or notes to the extent provided in\nthe resolution or resolutions of the corporation authorizing the\nissuance thereof; and\n c. Any other moneys that may be made available to the corporation for\nthe purpose of such capital reserve fund from any other source or\nsources. All moneys held in the capital reserve fund, except as\nhereinafter provided, shall be used solely for the payment of the\nprincipal of bonds of the corporation, the payment of interest on such\nbonds, or the payment of any redemption premium required to be paid when\nsuch bonds are redeemed prior to maturity; provided, however, that\nmoneys in such capital reserve fund shall not be withdrawn therefrom at\nany time in such amount as would reduce the amount of such fund to less\nthan the maximum amount of principal and interest maturing and becoming\ndue in any succeeding fiscal year of the corporation on all bonds of the\ncorporation then outstanding, except for the purpose of paying principal\nof and interest on such bonds of the corporation maturing and becoming\ndue and for the payment of which other moneys of the corporation are not\navailable. Any income or interest earned by, or increment to, the\ncapital reserve fund due to the investment thereof may be transferred to\nother funds or accounts to the extent it does not reduce the amount of\nthe capital reserve fund below the maximum amount of principal and\ninterest maturing and becoming due in any such succeeding fiscal year on\nall bonds of the corporation then outstanding.\n 2. The corporation shall not issue bonds at any time if the maximum\namount of principal and interest maturing and becoming due in a\nsucceeding fiscal year of the corporation on such bonds then to be\nissued and on all other bonds of the corporation then outstanding will\nexceed the amount of the capital reserve fund at the time of issuance of\nsuch bonds, unless the corporation, at the time of issuance of such\nbonds, shall deposit in the capital reserve fund from the proceeds of\nthe bonds so to be issued, or otherwise, an amount which, together with\nthe amount then in such fund, will not be less than the maximum amount\nof principal and interest maturing and becoming due in any such\nsucceeding fiscal year on such bonds then to be issued and on all other\nbonds of the corporation then outstanding.\n 3. For the purposes of computing the amount of the capital reserve\nfund, any securities in which any portion of such fund is invested shall\nbe valued at the par value thereof or at the cost thereof to the\ncorporation if such cost was less than said par value.\n