204-C:40 Reserve Funds. –
I. The authority may create and establish one or more special funds, hereafter referred to as "bond reserve funds", and shall pay into each such bond reserve fund any moneys appropriated and made available by the state for the purpose of such fund; any proceeds of sale of notes or bonds to the extent provided in the resolution or resolutions of the authority authorizing the issuance of such bonds or notes; and any other moneys which may be available to the authority for the purpose of such fund from any other source or sources. All moneys held in any bond reserve fund are hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds with respect to which such bond reserve fund may be established, as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made and the revenues, moneys or property so pledged subject to RSA 204-C:33. The use and disposition of moneys to the credit of such bond reserve fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such bond reserve fund shall be a fund for all such bonds issued to finance housing without distinction or priority of any bond over another; provided the authority in any such resolution or trust agreement may provide that such bond reserve fund shall be the fund for particular housing and for the bonds issued to finance particular housing and may, additionally, permit and provide for the issuance of bonds having a subordinate lien in respect of the security authorized to other bonds of the authority and, in such case, the authority may create separate or other similar funds in respect of such subordinate lien bonds.
II. Moneys in any bond reserve fund shall not be withdrawn from at any time in such amount as would reduce the amount of such fund to less than the bond reserve fund requirement established for such fund, as provided in paragraph IV, except for the purpose of making, with respect to bonds secured in whole or in part by such fund, payment when due of principal, interest, redemption premiums and the sinking fund payments, if any, with respect to such bonds for the payment of which other moneys of the authority are not available. Any income or interest earned by any bond reserve fund resulting from the investment of such bond may be transferred by the authority to other funds or accounts of the authority to the extent it does not reduce the amount of that bond reserve fund below the bond reserve fund requirement for such fund.
III. The authority shall not at any time issue bonds, secured in whole or in part by a bond reserve fund, if upon the issuance of such bonds, the amount in such bond reserve fund will be less than the bond reserve fund requirement for such fund, unless the authority at the time of issuance of such bonds shall deposit in such fund from the proceeds of the bonds issued, or from other sources, an amount which, together with the amount then in such fund, shall not be less than the bond reserve fund requirement for such fund.
IV. In this section, "bond reserve fund requirement" means, as of any particular date of computation, an amount of money, as provided in the resolution of the authority authorizing the bonds or notes with respect to which such fund is established. In computing the amount of the bond reserve funds for the purpose of this section, securities in which all or a portion of such funds shall be invested shall be valued in such manner as the authority by resolution shall determine.