I. The trustees of trust funds holding said capital reserve funds in trust, as hereinbefore provided, shall hold the same until such time as the city councils shall name agents of the city to carry out the objects designated by the city councils as prescribed by N.H. Rev. Stat. § 34:2. Expenditures from said capital reserve funds shall be made only for or in connection with the purposes for which said fund was established, or as amended as provided by N.H. Rev. Stat. § 34:11.
II. Notwithstanding the prohibition of debt retirement fund establishment in N.H. Rev. Stat. § 33:2, capital reserve funds may be used for multiple payments under a financing agreement for the purpose for which the capital reserve was established. If the financing agreement is a lease purchase agreement, the lease purchase agreement may not contain an “escape clause” or a “non-appropriation clause.”