Section 37.15.260. Bond reserve fund.

   (a) The resolution authorizing the issuance of the bonds under AS 37.15.225 - 37.15.290 may provide for the establishment and maintenance of a special fund called the toll bridge revenue bond reserve fund in which there shall be deposited or transferred
        (1) all money appropriated by the legislature for the purpose of the fund including appropriations in accordance with (g) of this section; and
        (2) all proceeds of bonds required to be deposited in the fund by terms of the bond resolution or a trust agreement with respect to the proceeds of bonds.
   (b) Subject to (h) of this section, money in the reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds authorized under AS 37.15.225 - 37.15.290 as the interest and principal become due and payable to the retirement of bonds. Money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve except for payment of interest then due and payable on bonds and the principal of bonds then maturing and payable and for the retirement of bonds in accordance with the terms of the bond resolution or trust agreement and for which payment is not then available.
   (c) Money in the reserve fund in excess of the required debt service reserve as defined in (b) of this section, whether because of investment or otherwise, may be withdrawn at any time or may be transferred to the bond redemption fund subject to (h) of this section.
   (d) Money in the reserve fund may be invested in the same manner and on the same conditions as permitted for investment of funds belonging to the state or held in the treasury under AS 37.10.070; however, the committee or the committee's delegated representative may agree with the bondholders to further limit these investments.
   (e) 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 committee. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in the reserve fund.
   (f) Notwithstanding any other provision of AS 37.15.225 - 37.15.290, bonds may not be issued under a trust agreement, indenture, or bond resolution unless there is in the reserve fund the required debt service reserve for all bonds then issued under a trust agreement, indenture, or bond resolution and outstanding and for the bonds to be issued; however, the committee may satisfy this requirement by depositing as much of the proceeds of the bonds to be issued, on their issuance, as is needed to meet the required debt service reserve. The committee may, at any time, issue bonds or notes for the purpose of increasing the amount in the reserve fund to the required debt service reserve, or to meet whatever higher or additional reserve that may be fixed by a bond resolution or trust agreement with respect to the fund.
   (g) To ensure the required debt service reserve is maintained in the reserve fund, the legislature may appropriate annually for deposit in the fund the sum, certified by the commissioner of revenue to the governor and to the legislature, that is necessary to restore the fund to an amount equal to the required debt service reserve. The commissioner of revenue annually, before January 30, shall make and deliver to the governor and to the legislature a certificate stating the sum required to restore the fund to that amount, and the certified sum may be appropriated during the then current state fiscal year. Nothing in this subsection creates a debt or liability of the state.
   (h) All amounts received because of money appropriated to the reserve fund shall be held and applied in accordance with (b) of this section.
   (i) All references to the reserve fund in this section include special accounts within the reserve fund that may be created by resolution or trust agreement to secure the payment of particular bonds.
   (j) The commissioner of revenue may, subject to appropriation, lend surplus money in the general fund for deposit to an account in the reserve fund in an amount equal to the required debt service reserve. The loans shall be made on the terms and conditions that may be agreed on by the commissioner of revenue and the trustee, including, without limitation, terms and conditions providing that the loans need not be repaid until the obligations of the state secured and to be secured by the account in the reserve fund are no longer outstanding.
   (k) In this section, "required debt service reserve" means, on the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution of the committee.

Authorities

37.15.225;37.15.290

Notes

References

AS 37.15.225 Bond authorization.
AS 37.15.290 Definitions.

History

(Sec. 12 ch 51 SLA 2014)