Page:United States Statutes at Large Volume 109 Part 1.djvu/154

 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 — Amounts in a debt service reserve fund may not be withdrawn from the fund at any time in an amount that would reduce the amount of the fund to less than the minimum reserve fund requirement established for such fund in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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