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§11424. Capital reserve funds; obligation of the State


Published: 2015

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§11424. Capital reserve funds; obligation of the State








1. Capital reserve fund. 
In connection with bonds issued under this chapter, the authority may create and establish one or more capital reserve funds and may pay
into any such capital reserve fund any money appropriated and made available by the
State for the purposes of any such fund, any proceeds of the sale by the authority
of bonds to the extent determined by the authority and any other money available to
the authority.


[
2015, c. 170, §22 (AMD);
2015, c. 170, §30 (AFF)
.]








2. Application. 
Money held in any capital reserve fund created in connection with bonds issued under this chapter, except as provided in this section, must be used solely with respect to bonds, repayment of which is secured by any such fund
and solely for the payment of principal of bonds, the purchase or redemption of those
bonds, including any fees or premiums and the payment of interest on those bonds.
In addition, if the authority obtains a letter of credit, insurance contract, surety
bond or similar financial undertaking to establish and fund a capital reserve fund
under this section, money in that capital reserve fund may be used to pay, as and
when due, all reimbursement obligations of the authority established in connection
with that letter of credit, insurance contract, surety bond or similar financial undertaking,
including, but not limited to, all fees, expenses, indemnities and commissions. Money
in excess of the reserve requirement set forth in subsection 3 may be transferred
to other funds and accounts of the authority.


[
2015, c. 170, §23 (AMD);
2015, c. 170, §30 (AFF)
.]








3. Reserve requirement. 
The authority may provide that money in any such fund shall not be withdrawn at
any time in such amount as would reduce the amount of any such fund to less than the
maximum amount of principal and interest becoming due by reason of maturity or a required
sinking fund payment in the next succeeding 12-month period within which any such
maturity occurs or any such payment is required, the amount being referred to as the
"capital reserve requirement," except for the purpose of paying the amount due at
any such maturity or the sinking fund payment with respect to bonds, repayment of
which is secured by any such fund.


[
1987, c. 807, §3 (NEW)
.]








4. Issuance limit. 
The authority may provide that it will not issue bonds under this chapter if the capital reserve requirement with respect to bonds outstanding and then to
be issued and secured by any such fund will exceed the amount of any such fund at
the time of issuance, unless the authority, at the time of issuance of the bonds, deposits in any such fund from proceeds of the bonds to be issued, or from other sources,
an amount that, together with the amount then in any such fund, will not be less than the capital
reserve requirement.


[
2015, c. 170, §24 (AMD);
2015, c. 170, §30 (AFF)
.]








5. Appropriation. 
On or before December 1st, annually, the authority shall certify to the Governor
the amount, if any, necessary to restore the amount in any capital reserve fund, to
which this subsection is stated in the trust agreement or other document to apply,
to the capital reserve requirement. The Governor shall pay directly from the Contingent
Account to any such fund as much of the amount as is available in the Contingent Account
and shall transmit directly to the Legislature that certification and a statement
of the amount, if any, remaining to be paid and the amount certified shall be appropriated
and paid to the authority during the current state fiscal year.


[
1987, c. 807, §3 (NEW)
.]








6. Bonds outstanding. 
The authority may not have at any one time outstanding bonds to which subsection
5 is stated in the trust agreement or other document to apply in principal amount
exceeding $225,000,000. The amount of bonds issued to refund bonds previously issued may not be taken into
account in determining the principal amount of the bonds outstanding, as long as the
proceeds of the refunding bonds are applied as promptly as possible to the refunding
of the previously issued bonds. In computing the total amount of bonds of the authority
that may at any time be outstanding for any purpose, the amount of the outstanding
bonds that have been issued as capital appreciation bonds or as similar instruments
must be valued as of any date of calculation at their current accreted value rather
than their face value.


[
2011, c. 401, §2 (AMD)
.]





SECTION HISTORY

1987, c. 807, §3 (NEW).
2009, c. 40, §§1-3 (AMD).
2011, c. 401, §§1, 2 (AMD).
2015, c. 170, §§22-24 (AMD).
2015, c. 170, §30 (AFF).