New Jersey § 12:11a-13

§ 12:11a-13.

(a) The corporation shall establish and maintain a fund called the “South Jersey Port

Corporation Reserve Fund” in which there shall be deposited (1) moneys appropriated

therefor by the State, (2) proceeds of bonds required to be deposited therein by terms

of any contracts between the corporation and its bondholders, and (3) other moneys

or funds of the corporation which it determines to deposit. Moneys in the reserve fund shall be held and applied solely to the payment of the

interest on and principal of bonds of the corporation as the same shall become due

and payable and for the retirement of bonds, and shall not be withdrawn therefrom

if such withdrawal would reduce the amount in such fund to less than the “maximum

debt service reserve,” as hereinafter defined, except for payment of interest then

due and payable on bonds and the principal of bonds then maturing and for the retirement

of bonds in accordance with the terms of any contracts between the corporation and

its bondholders and for which payment of interest or principal or retirement of bonds

other moneys of the corporation are not then available in accordance with the terms

of any such contracts. As herein used “maximum debt service reserve” means, as of any date of computation,

the largest amount of money required by the terms of any contracts between the corporation

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 such contracts to sinking funds established for the payment or redemption

of such bonds, calculated on the assumption that bonds will cease to be outstanding

after date of such computation by reason of the payment of bonds at their respective

maturities and the payments of such required moneys to sinking funds and the application

thereof in accordance with the terms of any such contracts to the retirement of bonds. Moneys in said fund at any time in excess of the maximum debt service reserve, whether

by reason of investment or otherwise, may be withdrawn at any time by the corporation

and transferred to any other fund or account of the corporation. (b) Moneys at any time in the South Jersey Port Corporation Reserve Fund or in any

other fund or account of the corporation may be invested in any obligations of, or

as to which the principal and interest is guaranteed by, this State or the United

States, or in certificates of deposit secured by obligations of this State or of the

United States. (c) Notwithstanding any other provision contained in this act, no bonds shall be issued

by the corporation unless there is in the reserve fund the maximum debt service reserve

for all bonds issued and bonds about to be issued, provided, however, that nothing

shall preclude the corporation from satisfying the foregoing requirement by depositing

so much of the proceeds of the bonds about to be issued, upon their issuance as is

needed to achieve the maximum debt service reserve.