§ 23-19-17. Capital reserve funds and appropriations.
(a) The corporation may create and establish one or more special funds (referred to as
"capital reserve funds�) and shall pay into each capital reserve fund:
(1) Any money appropriated and made available by the state for the purpose of the fund;
(2) Any proceeds of the sale of notes or bonds to the extent provided in the resolution
or resolutions of the corporation authorizing the issuance of notes or bonds; and
(3) Any other money which may be made available to the corporation for the purpose of
the fund from any other source or sources.
(b) All money held in any capital reserve fund, except as hereinafter provided, shall
be used, as required, solely for the payment of the principal of bonds secured in
whole or in part by the fund or of the sinking fund payments hereinafter mentioned
with respect to the bonds, the purchase or redemption of the bonds, the payment of
interest on the bonds or the payment of any redemption premium required to be paid
when the bonds are redeemed prior to maturity; provided, however, that money in the
fund shall not be withdrawn at any time in an amount that would reduce the amount
of the fund to less than the minimum capital reserve requirement established for the
fund as hereinafter provided except for the purpose of making, with respect to bonds
secured in whole or in part by the fund, payment when due, of principal, interest,
redemption premiums, and the sinking fund payments hereinafter mentioned for the payment
of which other moneys of the corporation are not available. Any income or interest
earned by, or incremental to, any capital reserve fund due to the investment thereof,
may be transferred by the corporation to other funds or accounts of the corporation
to the extent it does not reduce the amount of the capital reserve fund below the
minimum capital reserve fund requirement for the fund.
(c)(1) The corporation shall not at any time issue bonds secured in whole or in part by a
capital reserve fund, if, upon the issuance of the bonds, the amount in the capital
reserve fund will be less than the minimum capital reserve fund requirement for the
fund, unless the corporation, at the time of the issuance of the bonds, shall deposit
in the fund from the proceeds of the bonds to be issued, or from other sources, an
amount which, together with the amount then in the fund, will not be less than the
minimum capital reserve fund requirement for the fund.
(2) For the purposes of this section, "minimum capital reserve fund requirement� means
an amount of money, as provided in the resolution or resolutions of the corporation
authorizing the bonds or notes with respect to which the fund is established, equal
to not more than the greatest of the respective amounts, for the current or any future
fiscal year of the corporation, of annual debt service on the bonds of the corporation
secured in whole or in part by the fund, the annual debt service for any fiscal year
being the amount of money equal to the aggregate of:
(i) All interest payable during the fiscal year on all bonds secured in whole or in part
by the fund outstanding on the date of computation; plus
(ii) The principal amount of all the bonds outstanding on the date of computation which
mature during the fiscal year; plus
(iii) All amounts specified in any resolution of the authority authorizing any of the bonds
as payable during the fiscal year as a sinking fund payment with respect to any of
the bonds which mature after the fiscal year, all calculated on the assumption that
the bonds will after the date of computation cease to be outstanding by reason, but
only by reason, of the payment of bonds when due and application in accordance with
the resolution authorizing those bonds of all the sinking fund payments payable at
or after the date of computation.
(d) In computing the amount of the capital reserve funds for the purpose of this section,
securities in which all or a portion of the funds shall be invested shall be valued
as provided in the proceedings under which the bonds are authorized, but in no event
shall be valued at a value greater than par.
(e) To assure the continued operation and solvency of the corporation for the carrying
out of its corporate purposes, provision is made in subsection (a) for the accumulation
in each capital reserve fund of an amount equal to the minimum capital reserve fund
requirements for the fund. To further assure the maintenance of the capital reserve
funds, the chairperson of the corporation shall annually, on or before December 1st,
make and deliver to the governor his or her certificate stating the sum, if any, required
to restore each capital reserve fund to the minimum capital reserve fund requirement
for the fund. During each January session of the general assembly, the governor shall
submit to the general assembly printed copies of a budget including the sum, if any,
required to restore each capital reserve fund to the minimum capital reserve fund
requirement for the fund. All sums appropriated by the general assembly, if any, and
paid to the corporation shall be deposited by the corporation in the applicable capital
reserve fund.
(f) All amounts paid over to the corporation by the state pursuant to the provisions of
this section shall constitute and be accounted for as advances by the state to the
corporation and, subject to the rights of the holders of any bonds or notes of the
corporation previously or thereafter issued, shall be repaid to the state without
interest from all available operating revenues of the corporation in excess of amounts
required for the payment of bonds, notes, or other obligations of the corporation,
the capital reserve funds and operating expenses.
(g) The corporation shall create and establish any other funds that may be necessary or
desirable for its corporate purposes.
(h) The corporation may by resolution permit the issuance of bonds and notes to carry
out the purposes of this chapter without establishing a capital reserve fund pursuant
to this section and without complying with the limitations set forth in this section.
Bonds and notes issued pursuant to this subsection may be secured by any other funds
or methods that the corporation may in its discretion determine by resolution.