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- Alaska Statutes.
- Title 14. Education, Libraries, and Museums
- Chapter 40. The University of Alaska, the Community Colleges, and the Alaska Aerospace Development Corporation
- Section 951. Reserve Fund.
previous: Section 950
. [Renumbered as AS 14.43.420
next: Section 956
. Cooperation With Other Authorities.
AS 14.40.951. Reserve Fund.
- (a) The corporation shall establish and maintain a special fund called the Alaska Aerospace Development Corporation
reserve fund in which there shall be deposited or transferred
- (1) all money appropriated by the legislature for the purpose of the fund in accordance with the provisions of (g) of this
- (2) all proceeds of bonds required to be deposited in the fund by terms of a contract between the corporation and its
bondholders or a resolution of the corporation with respect to the proceeds of bonds;
- (3) all other money appropriated by the legislature to the reserve fund; and
- (4) any other money or funds of the corporation that it decides to deposit in the fund.
- (b) Subject to the provisions of (h) of this section, money in the reserve fund shall be held and applied solely to the
payment of the interest on and principal of bonds of the corporation as the interest and principal become due and
payable and for the retirement of bonds; and the money may not be withdrawn if a withdrawal would reduce the amount in
the reserve fund to an amount less than the required debt service reserve except for payment of interest then due and
payable on bonds and the principal of bonds then maturing and payable and for the retirement of bonds in accordance
with the terms of a contract between the corporation and its bondholders and for which payments of other money of the
corporation is not then available. In this subsection, "required debt service reserve" means, as of the date of
computation, the amount required to be on deposit in the reserve fund as provided by resolution of the corporation.
- (c) Money in the reserve fund in excess of the required debt service reserve as defined in (b) of this section, whether by
reason of investment or otherwise, may be withdrawn at any time by the corporation and transferred to another fund or
account of the corporation subject to the provision of (h) of this section.
- (d) Money in the reserve fund may be invested in the same manner and on the same conditions as permitted for investment of
funds belonging to the state or held in the treasury under AS 37.10.070
; however, the corporation may agree with the bondholders to further limit these investments.
- (e) For purposes of valuation, investments in the reserve fund shall be valued at par or if purchased at less than par, at
cost unless otherwise provided by resolution of the corporation. Valuation on a particular date shall include the
amount of interest then earned or accrued to that date on the money or investments in the reserve fund.
- (f) Notwithstanding any other provision of AS 14.40.821
- 14.40.990, bonds may not be issued by the
corporation unless there is in the reserve fund the required debt service reserve for all bonds then issued and
outstanding and for the bonds to be issued; however, the corporation may satisfy this requirement by depositing as much
of the proceeds of the bonds to be issued, upon their issuance, as is needed to meet the required debt service reserve.
The corporation may at any time issue its bonds or notes for the purpose of increasing the amount in the reserve fund
to the required debt service reserve, or to meet whatever higher or additional reserve that may be fixed by the
corporation with respect to the fund.
- (g) In order to assure the maintenance of the required debt service reserve in the reserve fund, the legislature may
appropriate annually to the corporation for deposit in the fund the sum, certified by the chair of the corporation to
the governor and to the legislature, that is necessary to restore the fund to an amount equal to the required debt
service reserve. The chair annually, before January 30, shall make and deliver to the governor and to the legislature a
certificate stating the sum required to restore the fund to that amount, and the certified sum may be appropriated and
paid to the corporation during the then current state fiscal year. Nothing in this subsection creates a debt or
liability of the state.
- (h) All amounts received on account of money appropriated to the reserve fund referred to in (a)(3) of this section shall
be held and applied in accordance with (b) of this section; however, at the end of each fiscal year, if the amount in
the reserve fund is in excess of the required debt service reserve, any amount representing earnings or income received
on account of money appropriated to the reserve fund that exceeds the operating expenses of the corporation for that
fiscal year shall be transferred to the general fund of the state.
- (i) All references to the reserve fund in this section include special accounts within the reserve fund that may be
created by the corporation to secure the payment of particular bonds. The commissioner of revenue may lend surplus
money in the general fund to the corporation for deposit to any account in the reserve fund in an amount equal to the
required debt service reserve. The loans shall be made on the terms and conditions that may be agreed upon by the
commissioner of revenue and the corporation, including, without limitation, terms and conditions providing that the
loans need not be repaid until the obligations of the corporation secured and to be secured by the account in the
reserve fund are no longer outstanding.
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