I. The bond bank may create and establish on behalf of the division one or more special funds, hereafter referred to as “small scale power facility bond reserve funds”, and shall pay into each such small scale power facility bond reserve fund any moneys appropriated and made available by the state for the purpose of such fund; any proceeds of sale of notes or bonds issued under this chapter to the extent provided in the resolution or resolutions of the division authorizing the issuance of such notes or bonds; and any other moneys which may be available to the division for the purpose of such fund from any other source or sources. All moneys held in any small scale power facility bond reserve fund are hereby pledged to, and charged with, the payment of the principal of and the interest on such bonds and notes with respect to which such small scale power facility bond reserve fund may be established, as they shall become due, and the redemption price or the purchase price of bonds and notes retired by call or purchase as provided. Such pledge shall be valid and binding from the time when the pledge is made and the revenues, moneys, or property so pledged subject to N.H. Rev. Stat. § 374-E:10. The use and deposition of moneys to the credit of such small scale power facility bond reserve fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or notes. Except as may otherwise be provided in such resolution, such small scale power facility bond reserve fund shall be a fund for all such bonds or notes issued under a particular resolution to provide financing for municipalities without distinction or priority of any such bond or note over another.
II. Moneys in any small scale power facility bond reserve fund shall not be withdrawn at any time in such amount as would reduce the amount of such fund to less than the required small scale power facility bond debt service reserve established for such fund, as provided in paragraph IV, except for the purpose of making, with respect to bonds or notes secured in whole or in part by such fund, payment, when due, of principal, interest, redemption premiums, and sinking fund payments, if any, with respect to such bonds or notes for the payment of which other moneys of the division are not available. Any income or interest earned by any small scale power facility bond reserve fund resulting from the investment of such fund or any other moneys in such fund may be transferred by the division to its other funds or accounts, to the extent it does not reduce the amount of that small scale power facility bond reserve fund below the required small scale power facility bond debt service reserve for such fund.
III. The bond bank shall not at any time issue bonds or notes of the division, secured in whole or in part by a small scale power facility bond reserve fund, if, upon the issuance of such bonds or notes, the amount in such small scale power facility bond reserve fund shall be less than the required small scale power facility bond debt service reserve for such fund, unless at the time of issuance of such bonds or notes the division shall deposit in such fund from the proceeds of the bonds or notes issued, or from other sources, an amount which, together with the amount then in such fund, shall be not less than the required small scale power facility bond debt service reserve for such fund after such issuance. The bond bank may at any time issue bonds or notes of the division for the purpose of providing any amount necessary to increase the amount in the small scale power facility bond reserve fund to the required small scale power facility bond debt service reserve or to meet such higher or additional reserve as may be fixed by the division with respect to such fund. In computing the amount of the required small scale power facility bond debt service reserve, investments held as a part of such reserve shall be valued in the manner provided in the required resolution authorizing such bonds or notes.
IV. As used in this section, “required small scale power facility bond debt service reserve” means, as of any date of computation, the amount or amounts required to be on deposit in the small scale power facility bond reserve fund by the resolution of the division authorizing such bonds.
V. Moneys at any time in the small scale power facility bond reserve fund may be invested in the same manner as permitted for investment of funds belonging to the state or held in the treasury.