§ 4681 - Revenue bond reserve fund
§ 4681. Revenue bond reserve fund
(a) The bank shall establish and maintain a special fund called the "Vermont municipal bond bank revenue bond reserve fund" in which there shall be deposited:
(1) all moneys appropriated by the state for the purpose of such fund;
(2) all proceeds of bonds required to be deposited therein by terms of any contract between the bank and its bondholders or any resolution of the bank with respect to the proceeds of bonds; and
(3) any other moneys or funds of the bank which it determines to deposit therein; provided, however, that no such deposit shall be made if such action would impair in any way any contracts between the bank and its bondholders or noteholders.
(b) Moneys in the revenue bond reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds of the bank as provided by resolution of the bank as they become due and payable and for the retirement of bonds. Money may not be withdrawn from the revenue bond reserve fund if it reduces the amount in the revenue bond reserve fund to an amount less than the "required debt service reserve," as defined in this subsection, except for payment of interest then due and payable on bonds and the principal of bonds then maturing and payable and for retirement of bonds in accordance with the terms of any contract between the bank and its bondholders and for which payments other moneys of the bank are not then available. As used in this subsection "required debt service reserve" means, as of any date of computation, the amount or amounts required to be on deposit in the revenue bond reserve fund as provided by resolution of the bank. Required debt service reserve shall not be required by resolution of the bank to exceed "maximum debt service reserve." As used in this subsection "maximum debt service reserve" means, as of any date of computation, the largest amount of money required by the terms of all contracts between the bank and its bondholders to be raised in any succeeding calendar year for the payment of interest on and maturing principal of outstanding bonds and payments required by the terms of any contracts to sinking funds established for the payment or redemption of bonds, all calculated on the assumption that the bonds will cease to be outstanding after date of the computation by reason of the payment of the bonds at their respective maturities and the payments of the required moneys to sinking funds and the application thereof in accordance with the terms of all contracts to the retirement of bonds.
(c) Nothing contained in this section shall require the deposit of moneys or funds in the revenue bond reserve fund which are required to be deposited in the reserve fund established pursuant to section 4671 of this chapter. (Added 1987, No. 55, § 25, eff. May 15, 1987.)