§ 2439. Reserve funds and appropriations. The agency shall create and establish one or more special funds to be known as debt service reserve funds and shall pay into such reserve funds (a) any moneys appropriated and made available by the state for the purposes of such funds, (b) any proceeds of sale of bonds or notes, to the extent provided in the resolution of the agency authorizing the issuance thereof and (c) any other moneys which may be available to the agency for the purposes of such funds from any other source or sources. The moneys held in or credited to the debt service reserve fund established under this subdivision, except as hereinafter provided, shall be used solely for the payment of the principal of the bonds of the agency secured by such reserve fund, as the same mature, sinking fund payments, the purchase of such bonds of the agency, the payment of interest on such bonds of the agency, or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity, provided, however, that moneys in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the debt service reserve fund requirement, except for the purpose of paying principal and interest on the bonds of the agency secured by such reserve fund maturing and becoming due and any sinking fund payments and for the payment of which other moneys of the agency are not available. Moneys in any debt service reserve fund not required for immediate use or disbursement, at the discretion of the agency may be invested in any investments approved or authorized in accordance with the provisions of section ninety-eight of the state finance law. In computing the amount of any debt service reserve fund for the purposes of this section, securities in which all or a portion of such fund are invested shall be valued at par if purchased at par, or if purchased at other than par, at amortized value. The agency shall not issue bonds at any time if upon issuance, the amount in the debt service reserve fund securing such bonds will be less than the debt service reserve fund requirement, unless the agency, at the time of issuance of such bonds, shall deposit in such reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which, together with the amount then in such reserve fund, will be not less than the debt service reserve fund requirement.

Any excess in any debt service reserve fund at the close of any fiscal year of the agency over the debt service reserve fund requirement may be transferred to any other fund or account of the agency as the agency may determine.