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 Munic-
ipal 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 pol-
icy or similar credit enhancement obtained to secure bonds of the au-
thority that the authority may require, by contract with the municipal-
ity 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 inter-
est on and principal of those bonds designated by the authority, pursuant to
the provisions of section 67-8725, Idaho Code, as the interest and princi-
pal 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 Moneys may not be withdrawn from the reserve fund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 pay-
ment 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 in-
terest and principal are not then available. As used in this chapter, "re-
quired 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 pro-
vided 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 mon-
eys 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reserve, whether by reason of investment or otherwise, may be withdrawn at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 re-
serve 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 legis-
lature 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 sec-
tion; 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 in-
come 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, ad-
ditional 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.
[67-8713, added 2001, ch. 130, sec. 1, p. 456; am. 2002, ch. 148, sec.
3, p. 428; am. 2005, ch. 389, sec. 5, p. 1253.]