§ 5284 - Reserve fund - Vermont Statutes

§ 5284. Reserve fund

(a) The authority shall establish and maintain a special fund called the Vermont independent school financing authority reserve fund in which there shall be deposited:

(1) all moneys appropriated by the state for the purpose of the fund;

(2) all proceeds of bonds required to be deposited therein by terms of any contract between the authority and its bondholders or any resolution of the authority with respect to the proceeds of bonds; and

(3) any other moneys or funds of the authority which it determines to deposit therein.

(b) Moneys in the reserve fund shall be held and applied solely to the payment of the interest on and principal of outstanding bonds to the authority and any bonds issued on a parity therewith and any bonds issued to refund such bonds, all as they become due and payable and for the retirement of bonds. Money may not be withdrawn if it reduces the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on bonds and the principal of bonds then maturing and payable and for the retirement of bonds in accordance with the terms of any contract between the authority and its bondholders and for which payments other moneys of the authority are not then available. Required debt service reserve shall not be required by resolution of the authority to exceed maximum debt service. (Added 1999, No. 121 (Adj. Sess.), § 1.)