109 STAT. 138
PUBLIC LAW 104-8—APR. 17, 1995
merit of bonds, notes, or other obligations issued pursuant
to this subtitle; and
(2) to transfer the proceeds of any tax levied for purposes
of securing such bonds, notes, or other obligations to the Authority immediately upon collection.
SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE FUND.
(a) IN GENERAL. — As a condition for the issuance of bonds,
notes, or other obligations pursuant to this subtitle, the Authority
shall establish a debt service reserve fund in accordance with this
section.
(b) REQUIREMENTS FOR FUND. —
(1) FUND DESCRIBED. —^A debt service reserve fund established by the Authority pursuant to this subsection shall consist
of such funds as the Authority may make available, and shall
be a trust fund held for the benefit and security of the obligees
of the Authority whose bonds, notes, or other obligations are
secured by such fund.
(2) USES OF FUNDS. —Amounts in a debt service reserve
fund may be used solely for the payment of the principal
of bonds secured in whole or in part by such fund, the purchase
or redemption of such bonds, the payment of interest on such
bonds, or the payment of any redemption premium required
to be paid when such bonds and notes are redeemed prior
to maturity.
(3) RESTRICTIONS ON WITHDRAWALS.—
(A) IN GENERAL. — Amounts in a debt service reserve
fund may not be withdrawn from the fund at any time
in an amount that would reduce the amount of the fund
to less than the minimum reserve fund requirement established for such fund in the resolution of the Authority
creating such fund, except for withdrawals for the purpose
of making payments when due of principal, interest,
redemption premiums and sinking fund payments, if any,
with respect to such bonds for the payment of which other
moneys of the Authority are not available, and for the
purpose of funding the operations of the Authority for
a fiscal year (in such amounts and under such conditions
as are established under the budget of the Authority for
the fiscal year under section 106(a)).
(B) USE OF EXCESS FUNDS. —Nothing in subparagraph
(A) may be construed to prohibit the Authority from
transferring any income or interest earned by, or increments to, any debt service reserve fund due to the investment thereof to other funds or accounts of the Authority
(to the extent such transfer does not reduce the amount
of the debt service reserve fund below the minimum reserve
fund requirement established for such fund) for such purposes as the Authority considers appropriate to promote
the financial stability and management efficiency of the
District government.
SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF BONDS.
(a) MINIMUM DEBT SERVICE RESERVE FUND REQUIREMENT.—
The Authority may not at any time issue bonds, notes, or other
obligations pursuant to this subtitle which are secured in whole
or in part by a debt service reserve fund under section 213 if
issuance of such bonds would cause the amount in the debt reserve
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