§ 1291. Reserve funds and appropriations. 1. The corporation may\ncreate and establish one or more reserve funds to be known as debt\nservice reserve funds and may pay into such debt service reserve funds\n(a) any monies appropriated and made available by the state for the\npurposes of such funds, (b) any proceeds of sale of notes or bonds, to\nthe extent provided in the resolution of the corporation authorizing the\nissuance thereof, and (c) any other monies which may be made available\nto the corporation for the purpose of such funds from any other source\nor sources. The monies held in or credited to any debt service reserve\nfund established under this section, except as hereinafter provided,\nshall be used solely for the payment of the principal of bonds of the\ncorporation secured by such debt service reserve fund as the same mature\nor as payments required by the terms of any contracts therefor as\nsinking fund payments become due, the purchase of such bonds of the\ncorporation, the payment of interest on such bonds of the corporation or\nthe payment of any redemption premium required to be paid when such\nbonds are redeemed prior to maturity; provided however, that the\ncorporation shall have power to provide that monies in any such fund\nshall not be withdrawn therefrom at any time in such amount as would\nreduce the amount of such fund to less than the maximum amount of any\nsinking fund payments becoming due and principal and interest maturing\nand becoming due in any succeeding calendar year on the bonds of the\ncorporation then outstanding and secured by such debt service reserve\nfund, except for the purpose of paying any sinking fund payments\nbecoming due and principal of and interest on such bonds of the\ncorporation secured by such debt service reserve fund maturing and\nbecoming due and for the payment of which other monies of the\ncorporation are not available. Any income or interest earned by, or\nincrement to, any such debt service reserve fund due to the investment\nthereof may be transferred by the corporation to any other fund or\naccount of the corporation and the corporation shall have power to\nprovide that any such transfer shall not reduce the amount of such debt\nservice reserve fund below the maximum amount of any sinking fund\npayments becoming due and principal and interest maturing and becoming\ndue in any succeeding calendar year on all bonds of the corporation then\noutstanding and secured by such debt service reserve fund.\n 2. The corporation shall not issue bonds at any time if the maximum\namount of any sinking fund payments becoming due and principal and\ninterest maturing and becoming due in any succeeding calendar year on\nthe bonds outstanding and then to be issued and secured by a debt\nservice reserve fund will exceed the amount of such debt service reserve\nfund at the time of issuance, unless the corporation, at the time of the\nissuance of such bonds, shall deposit in such debt service reserve fund\nfrom the proceeds of the bonds so to be issued, or otherwise, an amount\nwhich, together with the amount then in such debt service reserve fund,\nwill be not less than the maximum amount of any sinking fund payments\nbecoming due and principal and interest maturing and becoming due in any\nsucceeding calendar year on the bonds then to be issued and on all other\nbonds of the corporation then outstanding and secured by such debt\nservice reserve fund.\n 3. To assure the continued operation and solvency of the corporation\nfor the carrying out of the public purposes of this title, provision is\nmade in subdivision one of this section for the accumulation in each\ndebt service reserve fund of an amount equal to the maximum amount of\nany sinking fund payments becoming due and principal and interest\nmaturing and becoming due in any succeeding calendar year as determined\nby the corporation on all bonds of the corporation then outstanding and\nsecured by such debt service reserve fund
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