New Jersey § 55:14k-29

§ 55:14k-29.

a. The agency may create and establish one or more special funds to be known as housing

finance funds and may pay into such housing finance funds any moneys appropriated

and made available by the State for the purposes of such funds, any proceeds of the

sale of the bonds to the extent provided in the resolution of the agency authorizing

the issuance thereof, the moneys directed to be transferred by the agency to such

funds, and any other moneys which may be made available to the agency for the purposes

of such funds from any other source or sources. The moneys held in or credited to any housing finance fund established under this

act, except as hereinafter provided, shall be used solely for the payment of the principal

of and interest on bonds of the agency secured by such housing finance 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 agency or the payment of any redemption premium to

be paid when such bonds are redeemed prior to maturity; but 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shall not be withdrawn therefrom at any time in such amount as would reduce the amount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 amount of principal (including sinking fund payments)

and interest maturing and becoming due in the succeeding calendar year on the bonds

of the agency then outstanding and secured by such housing finance fund (such amount

being hereafter referred to as the “required minimum capital reserve”), except for

the purpose of paying principal and interest on the bonds of the agency secured by

such housing finance fund maturing and becoming due and sinking funds payments for

the payment of which other moneys of the agency are not available. Any income or interest earned by, or increment to, any such housing finance fund

due to the investment thereof may be transferred to any other fund or account of the

agency to the extent it does not reduce the amount of such housing finance fund below

the required minimum capital reserve. In computing the amount of any housing finance fund for the purposes of this section,

securities in which all or a portion of such housing finance fund are invested shall

be valued at par if purchased at par or, if purchased at other than par, at amortized

cost. b. The agency shall not issue bonds secured by a housing finance fund at any time

if the maximum amount of principal (including sinking fund payments) and interest

maturing and becoming due in the succeeding calendar year on the bonds outstanding

then to be issued and secured by a housing finance fund will exceed the amount of

such housing finance fund at the time of issuance, unless the agency, at the time

of issuance of such bonds, shall deposit in such housing finance fund from the proceeds

of the bonds or other obligations so to be issued, or otherwise, an amount which together

with the amount then in such housing finance fund, will be not less than the required

minimum capital reserve. c. The Housing Finance Fund established under the agency's existing General Housing

Bond Resolution shall continue as a housing finance fund pursuant to the provisions

of subsection a. of this section. d. To assure the maintenance of the required minimum capital reserve in the housing

finance funds, there shall be annually appropriated and paid to the agency for deposit

in each of such funds, such sum, if any, as shall be certified by the chairman of

the agency to the Governor as necessary to restore each of such funds to an amount

equal to the required minimum capital reserve. The chairman shall annually, on or before December 1, make and deliver to the Governor

his certificate stating the sum, if any, required to restore each of such funds to

the amount aforesaid, and the sum or sums so certified shall be appropriated and paid

to the agency during the then current State fiscal year.