STATE GOVERNMENT
AND STATE AFFAIRS
CHAPTER 87
IDAHO BOND BANK AUTHORITY
67-8713.Reserve fund -- Additional funds and accounts. (1) There is hereby
created in the state treasury a fund to be known as the "Idaho
Municipal Bond Bank Authority Reserve Fund" (hereinafter referred
to as "reserve fund") in which there shall be deposited
or transferred:
(a) All
proceeds of bonds or municipal bonds or any reserve surety policy
or similar credit enhancement obtained to secure bonds of the authority
that the authority may require, by contract with the municipality
or by a resolution of the authority, to be deposited in the reserve
fund; and
(b) All
moneys appropriated by the legislature for the purpose of the fund.
(2) Moneys
in the reserve fund shall be maintained by the authority and are pledged
and shall be held and applied solely to the payment of the interest
on and principal of those bonds designated by the authority, pursuant
to the provisions of section 67-8725, Idaho
Code, as the interest and principal become due and payable. Moneys
may not be withdrawn from the reserve fund if a withdrawal would reduce
the amount in the reserve fund to an amount less than the required
debt service reserve, as herein defined, except for payment of interest
then due and payable on bonds and the principal of bonds then maturing
and payable, whether by reason of maturity or mandatory redemption,
for which payments other than moneys of the authority pledged to pay
such interest and principal are not then available. As used in this
chapter, "required debt service reserve" means, as of the
date of computation, the amount required to be on deposit in the reserve
fund as provided by resolution of the authority. (3) For
purposes of valuation, investments in the reserve fund shall be valued
at par, or if purchased at less than par, at cost unless otherwise
provided by resolution of the authority. Valuation on a particular
date shall include the amount of interest then earned or accrued to
that date on the moneys or investments in the reserve fund.
(4) Moneys
in the reserve fund in excess of the required debt service reserve,
whether by reason of investment or otherwise, may be withdrawn at
any time by the authority and transferred to another fund or account
of the authority, subject to the provisions of any agreement with
the holders of any bonds.
(5) In order
to assure the maintenance of the required debt service reserve in
the reserve fund, the legislature may annually appropriate to the
authority for deposit in the reserve fund the sum, certified by the
chairman of the authority to the legislature, that is necessary to
restore the fund to an amount equal to the required debt service reserve.
The chairman of the authority, annually before December 1, shall make
and deliver to the legislature his certificate stating the sum required
to restore the funds to that amount. Nothing in this subsection creates
a debt or liability of the state to make any appropriation.
(6) All
amounts received on account of moneys appropriated by the state to
the reserve fund shall be held and applied in accordance with this
section; provided however, at the end of each fiscal year, if the
amount in the reserve fund derived from amounts appropriated by the
legislature exceeds the required debt service reserve, any amount
representing earnings or income received on account of moneys appropriated
to the reserve fund by the legislature that exceed the expenses of
the authority for that fiscal year shall be transferred to the general
fund of the state.
(7) The
authority may establish subaccounts in the reserve fund, additional
reserves or other funds or accounts as may be, in its discretion,
necessary or appropriate to further the accomplishment of its purposes
or to comply with the provisions of any of its agreements or resolutions.
Idaho Statutes