Section 44.88.105. Capital reserve funds and capital reserve fund requirement.

   (a) For the purpose of securing one or more issues of its bonds, the authority may establish one or more special funds, called "capital reserve funds", and shall pay into those capital reserve funds the proceeds of the sale of its bonds and other money which may be made available to the authority from other sources for the purposes of the capital reserve funds. A capital reserve fund may be established only if the authority determines that the establishment of the fund would enhance the marketability of the bonds. Money in a capital reserve fund, except as provided in this section, may be used as required only for (1) the payment of the principal of, and interest on, bonds or of the sinking fund payments with respect to those bonds; (2) the purchase or redemption of the bonds; or (3) the payment of a redemption premium required to be paid when the bonds are redeemed before maturity. However, money in a capital reserve fund may not be withdrawn if the withdrawal would reduce the amount in the capital reserve fund to less than the capital reserve fund requirement, except for the purpose of making payment, when due, of principal, interest, redemption premiums on the bonds, and sinking fund payments when other money of the authority is not available for the payments. Income or interest earned by, or increment to, a capital reserve fund, from the investment of all or part of the fund, may be transferred by the authority to other funds or accounts of the authority if the transfer does not reduce the amount of the capital reserve fund below the capital reserve fund requirement.
   (b) If the authority decides to issue bonds secured by a capital reserve fund, the bonds may not be issued if the amount in the capital reserve fund is less than the capital reserve fund requirement, unless the authority, at the time of issuance of the bonds, deposits in the capital reserve fund from the proceeds of the bonds to be issued or from other sources, an amount which, together with the amount then in the fund, is not less than the capital reserve fund requirement.
   (c) In computing the amount of a capital reserve fund for the purpose of this section, securities in which all or a portion of the fund is invested shall be valued by a reasonable method established by the authority by resolution.  Valuation shall include the amount of interest earned or accrued as of the date of the valuation.
   (d) The chair of the authority shall annually, not later than January 2, certify in writing to the governor and the legislature the amount, if any, required to restore a capital reserve fund to the capital reserve fund requirement. The legislature may appropriate to the authority the amount certified by the chair of the authority. The authority shall deposit the amounts appropriated under this subsection during a fiscal year in the proper capital reserve fund. Nothing in this section creates a debt or liability of the state. In this subsection, "capital reserve fund" means a capital reserve fund that
        (1) is created under this section on or before January 1, 1989;
        (2) secures refunding bonds if the refunding bonds are issued to refund bonds that are secured by a capital reserve fund created under this section on or before January 1, 1989;
        (3) secures bonds issued on or after August 11, 1993, for a power transmission intertie; or
        (4) secures bonds issued on or after July 1, 2013, for a qualified energy development project financed under AS 44.88.650 - 44.88.690.
   (e)   [Repealed, Sec. 23 ch 123 SLA 1990]. 
   (f) The authority may establish reserve funds, other than capital reserve funds, to secure one or more issues of its bonds. The authority may deposit in a reserve fund established under this subsection the proceeds of sale of its bonds and other money which may be made available from any other source.  A reserve fund established under this subsection must comply with (a) - (c) of this section.  The authority may allow a reserve fund established under this subsection to be depleted without complying with (d) of this section.
   (g)   [Repealed, Sec. 23 ch 123 SLA 1990]. 
   (h) In this section, "capital reserve fund requirement" means the amount required to be on deposit in the capital reserve fund as of the date of computation as determined by resolution of the authority.

Notes

History

(Sec. 62 ch 106 SLA 1980; am Sec. 36, 37 ch 115 SLA 1981; am Sec. 6 ch 162 SLA 1984; am Sec. 18 ch 42 SLA 1987; am Sec. 10, 11, 23 ch 123 SLA 1990; am Sec. 23 ch 18 SLA 1993; am Sec. 7 ch 26 SLA 2013)