§ 1860-a. Reserve funds and appropriations. 1. The authority may\ncreate and establish one or more reserve funds to be known as debt\nservice reserve funds and may pay into such reserve funds (a) any moneys\nappropriated and made available by the state for the purposes of such\nfunds, (b) any proceeds of sale of bonds and notes to the extent\nprovided in the resolution of the authority authorizing the issuance\nthereof, (c) any moneys directed to be transferred by the authority to\nsuch funds, and (d) any other moneys which may be made available to the\nauthority for the purposes of such funds from any other source or\nsources. The moneys held in or credited to any debt service reserve fund\nestablished under this subdivision, except as hereinafter provided,\nshall be used solely for the payment of the principal of bonds of the\nauthority secured by such reserve fund, as the same mature, required\npayments to any sinking fund established for the amortization of such\nbonds (hereinafter referred to as "sinking fund payments"), the purchase\nor redemption of such bonds of the authority, the payment of interest on\nsuch bonds of the authority or the payment of any redemption premium\nrequired to be paid when such bonds are redeemed prior to maturity;\nprovided, however, that moneys in any such fund shall not be withdrawn\ntherefrom at any time in such amount as would reduce the amount of such\nfund to less than the maximum amount of principal and interest maturing\nand becoming due in any succeeding calendar year on the bonds of the\nauthority then outstanding and secured by such reserve fund, except for\nthe purpose of paying principal and interest on the bonds of the\nauthority secured by such reserve fund maturing and becoming due and\nsinking fund payments for the payment of which other moneys of the\nauthority 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 to any other fund or account of the authority\nto the extent it does not reduce the amount of such debt service reserve\nfund below the maximum amount of principal and interest maturing and\nbecoming due in any succeeding calendar year on all bonds of the\nauthority then outstanding and secured by such reserve fund. In\ncomputing the amount of any debt service reserve fund for the purposes\nof this section, securities in which all or a portion of such reserve\nfund are invested shall be valued at par or, if purchased at less than\npar, at their cost to the authority.\n 2. The authority shall not issue bonds at any time if the maximum\namount of principal and interest maturing and becoming due in a\nsucceeding calendar year on the bonds outstanding and then to be issued\nand secured by a debt service reserve fund will exceed the amount of\nsuch reserve fund at the time of issuance, unless the authority, at the\ntime of issuance of such bonds, shall deposit in such reserve fund from\nthe proceeds of the bonds so to be issued, or otherwise, an amount which\ntogether with the amount then in such reserve fund, will be not less\nthan the maximum amount of principal and interest maturing and becoming\ndue in any succeeding calendar year on the bonds then to be issued and\non all other bonds of the authority then outstanding and secured by such\nreserve fund.\n 3. To assure the continued operation and solvency of the authority for\nthe carrying out of the public purposes of this act provision is made in\nsubdivision one of this section for the accumulation in each debt\nservice reserve fund of an amount equal to the maximum amount of\nprincipal and interest maturing and becoming due in any succeeding\ncalendar year on all bonds of the authority then outstanding and secured\nby such reserve fund. In order further to assure the maintenance of such\ndebt service reserve funds, there shall be annually apportioned and paid\nto the authority for deposit in each debt service re
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