§ 2408. Reserve funds and appropriations. (1) The agency may create\nand establish one or more reserve funds to be known as debt service\nreserve funds and pay into any such reserve fund (a) any moneys\nappropriated by the state for the purposes of such fund, (b) any\nproceeds of sale of bonds and notes to the extent provided in the\nresolution of the agency authorizing the issuance thereof, (c) any\nmoneys directed to be transferred by the agency to such debt service\nreserve fund, and (d) any other moneys made available to the agency for\nthe purposes of such fund from any other source or sources. The moneys\nheld in or credited to any debt service reserve fund established under\nthis subdivision, except as hereinafter provided, shall be used solely\nfor the payment of the principal of bonds of the agency secured by such\ndebt service reserve fund, as the same mature, required payments to any\nsinking fund established for the amortization of such bonds (hereinafter\nreferred to as "sinking fund payments"), the purchase or redemption of\nsuch bonds of the agency, the payment of interest on such bonds of the\nagency or the payment of any redemption premium required to be paid when\nsuch bonds are redeemed prior to maturity, provided, however, that\nmoneys in such fund shall not be withdrawn therefrom at any time in such\namount as would reduce the amount of such fund to less than the maximum\namount of the principal and interest maturing and becoming due in any\nsucceeding state fiscal year on the bonds of the agency then outstanding\nand secured by such reserve fund, except for the purpose of paying the\nprincipal of and interest on such bonds of the agency secured by such\nreserve fund maturing and becoming due and sinking fund payments for the\npayment of which other moneys of the agency are not available. Any\nincome or interest earned by, or increment to, any such debt service\nreserve fund due to the investment thereof may be transferred to any\nother fund or account of the agency to the extent it does not reduce the\namount of such debt service reserve fund below the maximum amount of\nprincipal and interest maturing and becoming due in any succeeding state\nfiscal year on all bonds of the agency then outstanding and secured by\nsuch reserve fund. Moneys in any debt service reserve fund not required\nfor immediate use or disbursement may be invested in obligations of the\nstate or the United States of America or obligations the principal and\ninterest of which are guaranteed by the state or the United States of\nAmerica or in obligations of any agency of the state or the United\nStates of America which may from time to time be legally purchased by\nsavings banks within the state as an investment of funds belonging to\nthem or in their control. In computing the amount of any debt service\nreserve fund for the purposes of this section, securities in which all\nor a portion of such reserve fund are invested shall be valued at par\nor, if purchased at less than par, at their cost to the agency. If the\nagency shall create and establish one or more debt service reserve funds\nas herein provided, the agency shall not issue bonds at any time if the\nmaximum amount of principal and interest maturing and becoming due in a\nsucceeding state fiscal year on the bonds outstanding and then to be\nissued and secured by a debt service reserve fund will exceed the amount\nof such reserve fund at the time of issuance, unless the agency, at the\ntime of issuance of such bonds, shall deposit in such reserve fund from\nthe proceeds of the bonds to be issued, or otherwise an amount which\ntogether with the amount then in such reserve fund, will be not less\nthan the amount of principal and interest maturing and becoming due in\nany succeeding state fiscal year on the bonds then to be issued and on\nall other bonds of the agency then outstanding and secured by such\nreserve fund.\n (2) To assure the continued operation and solvency of the ag
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