Section 2472. Reserve fund

1. The authority may create and establish one
  or more reserve funds to be known as debt service reserve funds and  may
  pay   into   such  reserve  funds  (a)  any  payments  received  from  a
  participating  municipality  (b)  any  moneys  appropriated   and   made
  available  by  the state for the purposes of such funds (c) any proceeds
  of sale of bonds and notes to the extent provided in the  resolution  of
  the  authority  authorizing the issuance thereof (d) any moneys directed
  to be transferred by the authority to such  funds,  and  (e)  any  other
  moneys  which may be made available to the authority for the purposes of
  such funds from any other source or  sources.  The  moneys  held  in  or
  credited  to  any  debt  service  reserve  fund  established  under this
  subdivision, except as hereinafter provided, shall be  used  solely  for
  the  payment  of the principal of and interest on bonds of the authority
  secured by such reserve fund, as the same mature, required  payments  to
  any  sinking  fund  established  for  the  amortization  of  such  bonds
  (hereinafter referred to as "sinking fund payments"),  the  purchase  or
  redemption  of  such  bonds  of  the  authority  or  the  payment of any
  redemption premium required to be paid  when  such  bonds  are  redeemed
  prior to maturity; provided, however, that moneys in any such fund shall
  not  be  withdrawn  therefrom at any time in such amount as would reduce
  the amount of such fund to less than the maximum amount of principal and
  interest maturing and becoming due in the then current or any succeeding
  calendar year on the bonds of the authority then outstanding and secured
  by such reserve fund, except for the purpose  of  paying  principal  and
  interest  on  the  bonds  of  the authority secured by such reserve fund
  maturing and becoming due and sinking fund payments for the  payment  of
  which  other  moneys  of  the authority are not available. Any income or
  interest earned by, or increment to, any such debt service reserve  fund
  due  to  the  investment thereof may be transferred to any other fund or
  account of the authority to the extent it does not reduce the amount  of
  such debt service reserve fund below the maximum amount of principal and
  interest maturing and becoming due in the then current or any succeeding
  calendar year on all bonds of the authority then outstanding and secured
  by  such  reserve  fund.  In  computing  the  amount of any debt service
  reserve fund for the purposes of this section, securities in  which  all
  or a portion of such reserve fund are invested shall be valued at par if
  purchased at par or, if purchased at other than par, at amortized value.
    2.  The  authority  shall  not  issue bonds at any time if the maximum
  amount of principal and interest maturing and becoming due in  the  then
  current  or  any  succeeding  calendar year on the bonds outstanding and
  then to be issued and secured by a debt service reserve fund will exceed
  the amount of such reserve fund at the  time  of  issuance,  unless  the
  authority,  at the time of issuance of such bonds, shall deposit in such
  reserve fund from the  proceeds  of  the  bonds  so  to  be  issued,  or
  otherwise, an amount which together with the amount then in such reserve
  fund, will be not less than the maximum amount of principal and interest
  maturing and becoming due in the then current or any succeeding calendar
  year  on  the  bonds  then  to  be  issued and on all other bonds of the
  authority then outstanding and secured by such reserve fund.
    3. To assure the continued operation and solvency of the authority for
  the carrying out of the public purposes of this act, provision  is  made
  in  subdivision  one  of  this section for the accumulation in each debt
  service reserve fund of  an  amount  equal  to  the  maximum  amount  of
  principal  and interest maturing and becoming due in the then current or
  any succeeding  calendar  year  on  all  bonds  of  the  authority  then
  outstanding and secured by such reserve fund.
    4.  Upon  full  amortization  of  any outstanding bonds issued for the
  acquisition, construction or rehabilitation of  sports  facilities,  the

  authority  is  empowered  to  provide  for  the transfer or sale of such
  facilities to the participating municipality.
    * NB (Disbanded March, 1980)