- Alaska Statutes.
- Title 41. Public Resources
- Chapter 41. Alaska Natural Gas Development Authority
- Section 350. Capital Reserve Funds.
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AS 41.41.350. Capital Reserve Funds.
- (a) For the purpose of securing one or more issues of its obligations, the authority may establish one or more special
funds, called "capital reserve funds," and shall pay into those capital reserve funds (1) money appropriated and made
available by the state for the purpose of those funds, (2) proceeds of the sale of its obligations, to the extent
provided in the resolution or resolutions of the authority authorizing their issuance, and (3) other money that may be
made available to the authority for the purpose of those funds from another source. All money held in a capital reserve
fund, except as provided in this section, shall, subject to appropriation, be used as required solely for the payment
of the principal of obligations or of the sinking fund payments with respect to those obligations; the purchase or
redemption of obligations; the payment of interest on obligations; or the payment of a redemption premium required to
be paid when those obligations are redeemed before maturity. However, money in a fund may not be withdrawn from that
fund at any time in an amount that would reduce the amount of that fund to less than the capital reserve requirement
set out in (b) of this section, except for the purpose of making, with respect to those obligations, payment, when due,
of principal, interest, redemption premiums, and the sinking fund payments for the payment of which other money of the
authority is not available. Income or interest earned by, or increment to, a capital reserve fund due to the investment
of the fund or other amounts in it may be transferred by the authority to other funds or accounts of the authority to
the extent that the transfer does not reduce the amount of the capital reserve fund below the capital reserve fund
- (b) If the authority decides to issue obligations secured by a capital reserve fund, the obligations may not be issued if
the amount in the capital reserve fund is less than a percent, not exceeding 10 percent, of the principal amount of all
of those obligations secured by that capital reserve fund then to be issued and then outstanding in accordance with
their terms, as may be established by resolution of the authority, called the "capital reserve fund requirement,"
unless the authority, at the time of issuance of the obligations, deposits in the capital reserve fund from the
proceeds of the obligations to be issued or from other sources an amount that, together with the amount then in the
fund, will not be less than the capital reserve fund requirement.
- (c) In computing the amount of a capital reserve fund for the purpose of this section, securities in which all or a
portion of the funds are invested shall be valued at par or, if purchased at less than par, at amortized costs as the
term is defined by resolution of the authority authorizing the issue of the obligations or by some other reasonable
method established by the authority by resolution. Valuation on a particular date must include the amount of interest
earned or accrued to that date.
- (d) To assure the continued operation and solvency of the authority for the carrying out of its corporate purposes,
provision is made in (a) of this section for the accumulation in capital reserve funds of an amount equal to their
capital reserve fund requirement.
- (e) The chair of the authority shall annually, not later than January 2, make and deliver to the governor and chairs of
the house and senate finance committees a certificate stating the sum, if any, required to restore a capital reserve
fund to the capital reserve fund requirement. The legislature may appropriate that sum, and all sums appropriated
during the current fiscal year by the legislature for the restoration shall be deposited by the authority in the
appropriate capital reserve fund.
- (f) This section does not create a debt or liability of the state.
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