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This entry was published on 2020-10-16
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SECTION 612
Reserve fund
Racing, Pari-Mutuel Wagering and Breeding Law (PML) CHAPTER 47-A, ARTICLE 6
§ 612. Reserve fund. 1. The corporation shall create and establish a
special fund herein referred to as the capital reserve fund, and shall
pay into such capital reserve fund:

a. any moneys appropriated and made available by the state for the
purpose of such capital reserve fund,

b. any proceeds of sale of bonds or notes to the extent provided in
the resolution or resolutions of the corporation authorizing the
issuance thereof, and

c. any other moneys that may be made available to the corporation for
the purpose of such capital reserve fund from any other source or
sources. All moneys held in the capital reserve fund, except as
hereinafter provided, shall be used solely for the payment of the
principal of bonds of the corporation, the payment of interest on such
bonds, or the payment of any redemption premium required to be paid when
such bonds are redeemed prior to maturity; provided, however, that
moneys in such capital reserve fund shall not be withdrawn therefrom at
any time in such amount as would reduce the amount of such fund to less
than the maximum amount of principal and interest maturing and becoming
due in any succeeding fiscal year of the corporation on all bonds of the
corporation then outstanding, except for the purpose of paying principal
of and interest on such bonds of the corporation maturing and becoming
due and for the payment of which other moneys of the corporation are not
available. Any income or interest earned by, or increment to, the
capital reserve fund due to the investment thereof may be transferred to
other funds or accounts to the extent it does not reduce the amount of
the capital reserve fund below the maximum amount of principal and
interest maturing and becoming due in any such succeeding fiscal year on
all bonds of the corporation then outstanding.

2. The corporation shall not issue bonds at any time if the maximum
amount of principal and interest maturing and becoming due in a
succeeding fiscal year of the corporation on such bonds then to be
issued and on all other bonds of the corporation then outstanding will
exceed the amount of the capital reserve fund at the time of issuance of
such bonds, unless the corporation, at the time of issuance of such
bonds, shall deposit in the capital reserve fund from the proceeds of
the bonds so to be issued, or otherwise, an amount which together with
the amount then in such fund, will not be less than the maximum amount
of principal and interest maturing and becoming due in any such
succeeding fiscal year on such bonds then to be issued and on all other
bonds of the corporation then outstanding.

3. For the purposes of computing the amount of the capital reserve
fund, any securities in which any portion of such fund is invested shall
be valued at the par value thereof or at the cost thereof to the
corporation if such cost was less than said par value.