NRS319.340. Bond reserve funds: Establishment; use; requirements.

      1.  The Division may establish one or more bond reserve funds, and shall pay into each such bond reserve fund:

      (a) Any money appropriated by the Legislature for the purpose of the fund;

      (b) Any proceeds of sale of notes or bonds to the extent provided in connection with the issuance thereof; and

      (c) Any other money which may be available to the Division for the purpose of the fund from any other source or sources.

Ê All money held in any bond reserve fund, except as otherwise expressly provided in this chapter, must be used, as required, solely for the payment of the principal of bonds secured in whole or in part by the fund or of the sinking fund payments with respect to such bonds, 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 the bonds are redeemed before maturity.

      2.  Money in such a fund must not be withdrawn from the fund at any time in an amount that would reduce the amount of the fund below the requirement established for that fund, except to pay when due, with respect to bonds secured in whole or in part by that fund, principal, interest, redemption premiums and sinking fund payments for the payment of which other money of the Division is not available. Any income or interest earned by or incremental to any bond reserve fund resulting from the investment thereof may be transferred by the Division to other funds or accounts of the Division and to the Account for Low-Income Housing created pursuant to NRS 319.500, to the extent that the amount of that bond reserve fund is not reduced below the requirement for the fund.

      (Added to NRS by 1975, 634; A 1991, 215; 1993, 640)