I. The bank may create and establish one or more special funds, hereafter referred to as “bond reserve funds”, and shall pay into each such bond reserve fund any monies appropriated and made available by the state for the purpose of such fund; any proceeds of sale of notes or bonds to the extent provided in the resolution or resolutions of the bank authorizing the issuance thereof; and any other monies which may be available to the bank for the purpose of such fund from any other source or sources. All monies held in any bond reserve fund are hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds with respect to which such bond reserve fund may be established, as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made and the revenues, monies or property so pledged subject to N.H. Rev. Stat. § 35-A:10. The use and disposition of monies to the credit of such bond reserve fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such bond reserve fund shall be a fund for all such bonds issued pursuant to a particular resolution to provide financing for governmental units without distinction or priority of any bond over another.
II. Monies in any bond reserve fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the bond reserve fund requirement established for such fund, as provided in paragraph IV, except for the purpose of making, with respect to bonds secured in whole or in part by such fund, payment when due, of principal, interest, redemption premiums and the sinking fund payments, if any, with respect to such bonds for the payment of which other moneys of the bank are not available. Any income or interest earned by any bond reserve fund resulting from the investment thereof or any other moneys therein may be transferred by the bank to other funds or accounts of the bank to the extent it does not reduce the amount of that bond reserve fund below the bond reserve fund requirements for such fund.
III. The bank shall not at any time issue bonds, secured in whole or in part by a bond reserve fund, if upon the issuance of such bonds, the amount in such bond reserve fund will be less than the bond reserve fund requirement for such fund, unless the bank at the time of issuance of such bonds shall deposit in such fund from the proceeds of the bonds issued, or from other sources, an amount which, together with the amount then in such fund, will not be less than the bond reserve fund requirement for such fund. The bank may at any time issue its bonds or notes for the purpose of providing any amount necessary to increase the amount in the reserve fund to the required debt service reserve, or to meet such higher or additional reserve as may be fixed by the bank with respect to such fund. In computing the amount of the required debt service reserve, investments held as a part thereof shall be valued in the manner provided in the bond resolution.
IV. As used herein “bond reserve fund requirement” means, as of any date of computation, the amount or amounts required to be on deposit in the reserve fund as provided by resolution of the bank authorizing such bonds, provided that required bond reserve fund requirement with respect to bonds authorized by resolution of the bank adopted before January 1, 1988, shall be as of any date of computation, an aggregate amount equal to at least the largest amount of money, required by the terms of all contracts between the bank and its bondholders to be raised in the then current or any succeeding calendar year for the payment of interest on and maturing principal of that portion of outstanding bonds the proceeds of which were applied solely to the purchase of municipal securities and sinking fund payments required by the terms of any such contracts to sinking funds established for the payment or redemption of such bonds, all calculated on the assumption that bonds will cease to be outstanding after the date of such computation by reason of the payment of such bonds at their respective maturities and the payments of such required moneys to sinking funds and the application thereof in accordance with the terms of all such contracts to the retirement of bonds.
V. Moneys at any time in the reserve fund may be invested in the same manner as permitted for investment of funds belonging to the state or held in the treasury.
VI. The bank may provide by resolution authorizing an issue of bonds that is secured in whole or in part by a bond reserve fund that, in lieu of the deposit of moneys in a bond reserve fund, the bond reserve fund requirement for such issue may be met in whole or in part by insurance, letter or line of credit or other credit facility that will be available for the purposes of the bond reserve fund as specified in such resolution of the bank. The chairman of the bank shall include in the written request for an appropriation required by N.H. Rev. Stat. § 35-A:12, I, the amount, if any, required to reimburse the payor under any insurance policy, letter or line of credit or other credit facility for sums paid by such payor for purposes of the bond reserve fund.