Vermont § 219 - Reserve funds

§ 219. Reserve funds

• (a) The Authority may create and establish one or more special funds, herein referred
  to as “debt service reserve funds,” and shall pay into each such debt service reserve
  fund: (1) Any monies appropriated and made available by the State for the purpose of such funds. (2) Any proceeds of the sale of notes or bonds, to the extent provided in the resolution
  or resolutions of the Authority authorizing the issuance thereof. (3) Any other monies or financial instruments such as surety bonds, letters of credit,
  or similar obligations, which may be made available to the Authority for the purpose
  of such fund from any other source or sources. All monies or financial instruments
  held in any debt service reserve fund, except as hereinafter provided, shall be used,
  as required, solely for the payment of the principal of the bonds secured in whole
  or in part by such fund or of the sinking fund payments with respect to such bonds,
  the purchase or redemption of such bonds, the payment of interest on such bonds, or
  the payment of any redemption premium required to be paid when such bonds are redeemed
  prior to maturity or to reimburse the issuer of a liquidity or credit facility, bond
  insurance, or other credit enhancement for the payment by such party of any of the
  foregoing amounts on the Authority’s behalf; provided, however, that the monies or
  financial instruments in any such fund shall not be drawn upon or withdrawn therefrom
  at any time in such amounts as would reduce the amount of such funds to less than
  the debt service reserve requirement established by resolution of the Authority for
  such fund as hereafter provided except for the purpose of making with respect to bonds
  secured in whole or in part by such fund payments, when due, of principal, interest,
  redemption premiums, and the sinking fund payments hereinafter mentioned for the payment
  of which other monies of the Authority are not available. Any income or interest earned
  by, or increment to, any debt service reserve fund due to the investment thereof may
  be transferred by the Authority to other funds or accounts of the Authority to the
  extent it does not reduce the amount of such debt service reserve fund below the debt
  service reserve requirement for such fund. (b) The Authority shall not at any time issue bonds or notes secured in whole or in part
  by a debt service reserve fund if upon the issuance of such bonds or notes the amount
  in such debt service reserve fund will be less than the debt service reserve requirement
  established by the resolution of the Authority for such fund, unless the Authority
  at the time of issuance of such bonds shall deposit in such fund from the proceeds
  of the bonds or notes so to be issued, or from other sources, an amount which together
  with the amount then in such fund, will not be less than the debt service reserve
  requirement established for such fund. The debt service reserve requirement for any
  debt service reserve fund shall be established by resolution of the Authority prior
  to the issuance of any bonds or notes secured in whole or in part by such fund and
  shall be the amount, determined by the Authority to be reasonably required in light
  of the facts and circumstances of the particular bond issue. (c) In computing the amount of the debt service reserve funds for the purpose of this
  section, securities in which all or a portion of such funds shall be invested shall
  be valued at par if purchased at par or at amortized value, as such term is defined
  by resolution of the Authority, if purchased at other than par. (d) In order to ensure the maintenance of the debt service reserve requirement in each
  debt service reserve fund established by the Authority, there may be appropriated
  annually and paid to the Authority for deposit in each such fund, such sum as shall
  be certified by the Chair of the Authority, to the Governor, the President of the
  Senate, and the Speaker of the House, as is necessary to restore each such debt service
  reserve fund to an amount equal to the debt service reserve requirement for such fund.
  The Chair shall annually, on or about February 1, make, execute, and deliver to the
  Governor, the President of the Senate, and the Speaker of the House a certificate
  stating the sum required to restore each such debt service reserve fund to the amount
  aforesaid, and the sum so certified may be appropriated, and if appropriated, shall
  be paid to the Authority during the then current State fiscal year. The principal
  amount of bonds or notes outstanding at any one time and secured in whole or in part
  by a debt service reserve fund to which State funds may be appropriated pursuant to
  this subsection shall not exceed $181,000,000.00, provided that the foregoing shall
  not impair the obligation of any contract or contracts entered into by the Authority
  in contravention of the Constitution of the United States. (Added 1995, No. 184 (Act. Sess.), § 4b; amended 2003, No. 67, § 3, eff. June 16, 2003; 2009, No. 78 (Adj. Sess.), § 15, eff. April 15, 2010; 2011, No. 110 (Adj. Sess.), § 3, eff. May 8, 2012; 2013, No. 87, § 7, eff. June 17, 2013; 2015, No. 157 (Adj. Sess.), § A.3, eff. June 2, 2016; 2017, No. 157 (Adj. Sess.), § 1; 2019, No. 79, § 17, eff. June 20, 2019.)