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§1053. Capital reserve funds; obligation of State


Published: 2015

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§1053. Capital reserve funds; obligation of State








1. Capital reserve fund. 
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 sale by the authority
of revenue obligation securities to the extent determined by the authority and any
other money available to the authority. For purposes of this section, the amount
of any letter of credit, insurance contract, surety bond or similar financial undertaking
available to be drawn on and applied to obligations to which money in any such fund
may be applied shall be deemed to be and counted as money in the capital reserve fund.


[
1987, c. 697, §11 (AMD)
.]








2. Application. 
Money held in any capital reserve fund, except as provided in this section, shall
be used solely with respect to revenue obligation securities, repayment of which is
secured by any such fund and solely for the payment of principal of the securities,
the purchase or redemption of the securities, including any fees or premiums or the
payment of interest on the securities. 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 subsection 1, money in the fund may be used
to pay, as and when due, whether by acceleration or otherwise, 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
established as provided in subsection 3 may be transferred to other funds and accounts
of the authority.


[
1989, c. 552, §16 (AMD);
1989, c. 594, §1 (AMD);
1989, c. 594, §3 (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The authority may provide that money in any such fund shall not be withdrawn at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 below an amount
established by the authority with respect to the fund, the amount established by the
authority being referred to as the "capital reserve requirement," except for the purpose
of paying the amount due and payable with respect to revenue obligation securities,
repayment of which is secured by any such fund, or reimbursement obligations of the
authority with respect to any letter of credit, insurance contract, surety bond or
similar financial undertaking pertaining to any such fund.


[
1989, c. 552, §17 (AMD);
1989, c. 594, §2 (AMD);
1989, c. 594, §3 (AFF)
.]








4. Issuance limit. 
The authority may provide that it shall not issue revenue obligation securities
if the capital reserve requirement established by the authority with respect to securities
outstanding and then to be issued and secured by any such fund will exceed the amount
of any such fund, including the amount available under any letter of credit, insurance
contract, surety bond or other similar financial undertaking given to secure the capital
reserve requirement, at the time of issuance, unless the authority, at the time of
issuance of the securities, shall deposit in any such fund from proceeds of the securities
so to be issued, or from other sources, an amount, which, together with the amounts
then in any such fund and amounts available under any letter of credit, insurance
contract, surety bond or other similar financial undertaking, will not be less than
the capital reserve requirement.


[
1989, c. 552, §17 (AMD);
1989, c. 594, §2 (AMD);
1989, c. 594, §3 (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 forthwith pay from the Contingent
Account to any such fund so much of the amount as is available in the Contingent Account
and shall forthwith transmit to the Legislature such certification and a statement
of the amount, if any, remaining to be paid and the amount so certified shall be appropriated
and paid to the authority during the then current state fiscal year.


[
1985, c. 344, §78 (NEW)
.]








6. Securities outstanding. 
The principal amount of revenue obligation securities the authority may have outstanding
at any one time, to which subsection 5 is stated to apply in the trust agreement or
other document, may not exceed an aggregate principal amount equal to $912,000,000 as follows:





A. The sum of $180,000,000 consisting of not more than $150,000,000 for loans and up to $30,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities
issued pursuant to this subchapter relating to loans for electric rate stabilization
projects or loans for energy distribution system projects; [2011, c. 586, §5 (AMD).]










B. The sum of $120,000,000 consisting of not more than $100,000,000 for loans and up
to $20,000,000 for use of bond proceeds to fund capital reserve funds for revenue
obligation securities issued pursuant to this subchapter relating to loans for major
business expansion projects; [1999, c. 531, Pt. G, §1 (RPR).]










C. The sum of $57,000,000 consisting of not more than $45,000,000 for loans and up
to $12,000,000 for use of bond proceeds to fund capital reserve funds for revenue
obligation securities issued pursuant to this subchapter relating to workers' compensation
residual market mechanism projects; [1999, c. 531, Pt. G, §1 (RPR).]










D. The sum of $150,000,000 less the aggregate outstanding balance of mortgage loans
secured by capital reserve funds pursuant to section 1032 for all other revenue obligation
securities issued pursuant to this subchapter; [2003, c. 506, §5 (AMD).]










E. The sum of $120,000,000 consisting of not more than $100,000,000 for loans and up
to $20,000,000 for use of bond proceeds to fund capital reserve funds for revenue
obligation securities issued pursuant to this subchapter relating to loans for paper
industry job retention projects; [2007, c. 464, §9 (AMD).]










F. The sum of $100,000,000 consisting of not more than $85,000,000 for loans and up
to $15,000,000 for use of bond proceeds to fund capital reserve funds for revenue
obligation securities issued pursuant to this subchapter relating to loans for transmission
facilities projects as defined in section 963-A, subsection 49-H; and [2007, c. 464, §9 (AMD).]










G. The sum of $35,000,000 consisting of not more than $30,000,000 for the purposes stated
in section 1020-A, subsection 1, paragraphs A and C and up to $5,000,000 for use of
bond proceeds to fund capital reserve funds for revenue obligation securities issued
pursuant to section 1020-A, subsection 1, paragraph A. [2007, c. 464, §9 (NEW).]







The amount of revenue obligation securities issued to refund securities previously
issued may not be taken into account in determining the principal amount of securities
outstanding, as long as proceeds of the refunding securities are applied as promptly
as possible to the refunding of the previously issued securities. In computing the
total amount of revenue obligation securities of the authority that may at any time
be outstanding for any purpose, the amounts of the outstanding revenue obligation
securities that have been issued as capital appreciation bonds or as similar instruments
are valued as of any date of calculation at their then current accreted value rather
than their face value.


[
2011, c. 586, §5 (AMD)
.]





SECTION HISTORY

1985, c. 344, §78 (NEW).
1985, c. 714, §33 (AMD).
1987, c. 697, §§11-13 (AMD).
1989, c. 552, §18 (AMD).
1989, c. 594, §§1-3 (AMD).
1993, c. 460, §8 (AMD).
1993, c. 712, §5 (AMD).
1995, c. 4, §8 (AMD).
1995, c. 120, §1 (AMD).
1995, c. 120, §5 (AFF).
1995, c. 289, §6 (AMD).
1997, c. 489, §7 (AMD).
1997, c. 492, §1 (AMD).
1997, c. 492, §7 (AFF).
1997, c. 781, §1 (AMD).
1999, c. 484, §8 (AMD).
1999, c. 513, §5 (AMD).
1999, c. 531, §G1 (AMD).
2003, c. 506, §5 (AMD).
2007, c. 464, §9 (AMD).
2011, c. 261, §6 (AMD).
2011, c. 586, §5 (AMD).