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<section article="ghs" article_name="Housing and Community Development" number="4-233.1" title_number="4" title_name="Division of Development Finance" subtitle_number="2" subtitle_name="Community Development Administration">
  <level label="a">
    <level label="1">
      <text>In this section the following words have the meanings indicated.</text>
    </level>
    <level label="2">
      <text>“Capital reserve fund” means a reserve fund created under this section.</text>
    </level>
    <level label="3">
      <text>“Minimum capital reserve requirement” means the minimum capital reserve amount established by the Administration for a capital reserve fund in connection with the issuance of bonds, notes, or other obligations of the Administration in connection with the financing of one or more infrastructure projects.</text>
    </level>
  </level>
  <level label="b">
    <text>The Administration may establish one or more capital reserve funds in connection with the financing of one or more infrastructure projects.</text>
  </level>
  <level label="c">
    <text>Money in a capital reserve fund shall be used solely to pay the principal of, and premium and interest on, the bonds, notes, or other obligations of the Administration:</text>
    <level label="1">
      <text>secured by the capital reserve fund; and</text>
    </level>
    <level label="2">
      <text>issued in connection with financing infrastructure projects.</text>
    </level>
  </level>
  <level label="d">
    <text>A capital reserve fund may consist of:</text>
    <level label="1">
      <text>money appropriated in the State budget for the purposes of the capital reserve fund;</text>
    </level>
    <level label="2">
      <text>proceeds of a sale of bonds, notes, or other obligations of the Administration or the State;</text>
    </level>
    <level label="3">
      <text>investment earnings of the capital reserve fund; and</text>
    </level>
    <level label="4">
      <text>any other money from any other source accepted for the benefit of a capital reserve fund.</text>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <text>If the balance of a capital reserve fund is less than the minimum capital reserve requirement established by the Administration for that fund, the Administration:</text>
      <level label="i">
        <text>may not use money from the fund for the optional purchase or redemption of a bond, note, or other obligation of the Administration; and</text>
      </level>
      <level label="ii">
        <text>shall replenish the fund from available operating revenue generated by infrastructure projects or funds provided by the State.</text>
      </level>
    </level>
    <level label="2">
      <text>If available operating revenue generated by infrastructure projects and funds provided by the State are insufficient to replenish a capital reserve fund as required under paragraph (1) of this subsection, the Administration shall request that the Comptroller advance the contingent funding to replenish the capital reserve fund as provided in the Local Government Infrastructure Financing Program Capital Reserve Fund Loan of 2009 (Chapter 719 (S.B. 932/H.B. 1330) of the Acts of the General Assembly of 2009) or any other bond bill enabling act for this purpose.</text>
    </level>
  </level>
  <level label="f">
    <level label="1">
      <text>Except as provided in paragraph (2) of this subsection, the Administration may not issue bonds, notes, or other obligations secured in whole or in part by a capital reserve fund if on issuance the amount in the capital reserve fund will be less than the minimum capital reserve requirement.</text>
    </level>
    <level label="2">
      <text>The limitation under paragraph (1) of this subsection does not apply if at the time of issuance an amount is deposited in the capital reserve fund so that on issuance the total amount in the capital reserve fund will be at least equal to the minimum capital reserve requirement.</text>
    </level>
  </level>
</section>
