Vermont § 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 monies 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) Monies 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  not be withdrawn from the Revenue Bond Reserve Fund if it reduces the amount in the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 monies 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 monies 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 monies 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.)