Section 51366 Of Chapter 7. Revenue Bonds From California Health And Safety Code >> Division 31. >> Part 3. >> Chapter 7.
51366
. The agency, in its discretion and pursuant to agreements
with bondholders, may create and establish one or more special
accounts in the California Housing Finance Fund, which shall be known
as "bond reserve funds," and shall pay into each such bond reserve
fund (1) any moneys appropriated and made available by the
Legislature for the purpose of such fund, (2) any proceeds of sale of
bonds to the extent provided in the resolution or resolutions of the
agency authorizing the issuance thereof, and (3) any other moneys
which the agency may make available for the purpose of such bond
reserve fund from any other source or sources. All moneys held in any
bond reserve fund, except as otherwise provided in this part, shall
be used, as required, solely for the payment of the principal of
bonds secured in whole or in part by such fund, for the sinking fund
payments authorized by this part with respect to such bonds, for the
purchase or redemption of such bonds, for the payment of interest on
such bonds, or for the payment of any redemption premium required to
be paid when such bonds are redeemed prior to maturity. However,
moneys in a bond reserve fund shall not be withdrawn therefrom at any
time in such amount as would reduce the amount of the bond reserve
fund to less than the minimum bond reserve fund requirement
established for such fund, as provided in Section 51367, 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, as provided in
this part, for the payment of which other moneys of the agency are
not available. Any income or interest earned by, or increment to, any
bond reserve fund due to the investment thereof may be transferred
by the agency to other funds or accounts of the agency to the extent
it does not reduce the amount of the bond reserve fund below the
minimum bond reserve fund requirement for such fund.
In computing the amount of bond reserve funds for purposes of this
section, securities in which all or a portion of such funds are
invested shall be valued at par, if purchased at par, and shall be
valued at amortized value, as such term is defined by resolution of
the agency, if purchased at other than par.