House Journal: Page 1545: Wednesday, April 30, 2003
38 issuance, and any other moneys which may be available
39 to the treasurer of state for the purpose of the fund
40 from any other sources. All moneys held in a bond
41 reserve fund, except as otherwise provided in this
42 chapter, shall be used as required solely for the
43 payment of the principal of bonds secured in whole or
44 in part by the fund or of the sinking fund payments
45 with respect to the bonds, the purchase or redemption
46 of the bonds, the payment of interest on the bonds, or
47 the payments of any redemption premium required to be
48 paid when the bonds are redeemed prior to maturity.
49 b. Moneys in a bond reserve fund shall not be
50 withdrawn from it at any time in an amount that will
Page 6
1 reduce the amount of the fund to less than the bond
2 reserve fund requirement established for the fund, as
3 provided in this subsection, except for the purpose of
4 making, with respect to bonds secured in whole or in
5 part by the fund, payment when due of principal,
6 interest, redemption premiums, and the sinking fund
7 payments with respect to the bonds for the payment of
8 which other moneys of the treasurer of state are not
9 available.
10 Any income or interest earned by, or incremental
11 to, a bond reserve fund due to the investment of it
12 may be transferred by the treasurer of state to other
13 funds or accounts to the extent the transfer does not
14 reduce the amount of that bond reserve fund below the
15 bond reserve fund requirement for it.
16 c. The treasurer of state shall not at any time
17 issue bonds, secured in whole or in part by a bond
18 reserve fund, if, upon the issuance of the bonds, the
19 amount in the bond reserve fund will be less than the
20 bond reserve fund requirement for the fund, unless the
21 treasurer of state at the time of issuance of the
22 bonds deposits in the fund from the proceeds of the
23 bonds issued or from other sources an amount which,
24 together with the amount then in the fund, will not be
25 less than the bond reserve fund requirement for the
26 fund. For the purposes of this subsection, the term
27 "bond reserve fund requirement" means, as of any
28 particular date of computation, an amount of money, as
29 provided in the resolutions or trust indentures
30 authorizing the bonds with respect to which the fund
31 is established.
32 d. To assure the continued solvency of any bonds
33 secured by the bond reserve fund, provision is made in
34 paragraph "a" for the accumulation in each bond
35 reserve fund of an amount equal to the bond reserve
36 requirement for the fund. In order to further assure
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