§ 42-55-14. Reserve funds and appropriations.
(a) The corporation may create and establish one or more special funds ("capital reserve
funds�), and shall pay into each capital reserve fund (1) any moneys appropriated
and made available by the state for the purpose of the fund, (2) any proceeds of sale
of notes or bonds to the extent provided in the resolution or resolutions of the corporation
authorizing the issuance thereof, and (3) any other moneys which may be made available
to the corporation for the purpose of the fund from any other source or sources. All
moneys held in any capital reserve fund, except as provided in this section, shall
be used, as required, solely from 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 moneys 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fund shall not be withdrawn at any time in an amount that would reduce the amount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 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 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
that fund.
(b) 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 bonds, the amount in the capital reserve
fund will be less than the minimum capital reserve fund requirement for that fund,
unless the corporation, at the time of issuance of those bonds, shall deposit in the
fund from the proceeds of the bonds so 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; provided, however, that the corporation
by resolution may permit the issuance of bonds to provide loans to mortgage lenders
pursuant to § 42-55-10(e) without complying with the foregoing limitation. For the purposes of this section,
the term "minimum capital reserve fund requirement� shall mean, except to the extent
the corporation by resolution may modify that term with respect to bonds issued to
finance loans to mortgage lenders pursuant to § 42-55-10(e), as of any particular date of computation, an amount of money, as provided in the
resolution or resolutions of the corporation authorizing the bonds or notes with respect
to which that 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 that fund,
the annual debt service for any fiscal year being the amount of money equal to the
aggregate of:
(1) 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
(2) The principal amount of all of those bonds outstanding on the date of computation
which mature during that fiscal year; plus
(3) 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
those 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 of those sinking fund payments
payable at or after the date of computation.
(c) In computing the amount of the capital reserve funds for the purpose of this section,
securities in which all or a portion of those funds shall be invested shall be valued
at par or, if purchased at less than par, at their cost to the corporation.
(d) To assure the continued operation and solvency of the corporation for 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; provided, however, the foregoing computation shall not
apply to bonds issued to fund loans to mortgage lenders pursuant to § 42-55-10(e). In order further to assure the maintenance of the capital reserve funds, the chairperson
of the corporation shall annually, on or before December 1, 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.
(e) 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, 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.
(f) The corporation shall create and establish any other fund or funds that may be necessary
or desirable for its corporate purposes.