TITLE 67

STATE GOVERNMENT AND STATE AFFAIRS

CHAPTER 62

IDAHO HOUSING AND FINANCE ASSOCIATION

67-6211.  Additional definitions and capital reserve fund procedures. As used in this section, the following words and phrases shall have the following meanings unless the context shall indicate another or different meaning or intent:

(a)  "Maximum capital reserve fund requirement" shall mean the amount set forth in the association’s resolution or indenture authorizing the bonds or other obligations secured by a capital reserve fund, or, if no amount is stated in such resolution or indenture, then, as of any particular date of computation, an amount of money equal to the greatest of the respective amounts, for the then current or any future fiscal year of the association, of annual debt service of the association, such annual debt service for any fiscal year being the amount of money equal to the aggregate of:

(1)  All interest payable during such fiscal year on all bonds secured by such capital reserve fund of the association outstanding on said date of computation, plus

(2)  The principal amount of all bonds of the association secured by such capital reserve fund, outstanding on said date of computation which matures during such fiscal year, plus

(3)  The amount of all annual sinking fund payments payable during such fiscal year with respect to any bonds of the association secured by such capital reserve fund, outstanding on said date of computation.

(b)  "Annual sinking fund payment" shall mean the amount of money specified in the resolution authorizing term bonds as payable into a sinking fund during a particular fiscal year for the retirement of term bonds which mature after such fiscal year, but shall not include any amount payable by reason only of the maturity of a bond.

(c)  "Available operating revenues" shall mean all amounts received on account of rentals and fees and other charges imposed by the association, if any, and income or interest earned or added to funds of the association due to the investment thereof and not required under the terms or provisions of any covenant or agreement with holders of any bonds or notes of the association to be applied to any purposes other than payment of expenses of the association.

(d)  "Amortized value," when used with respect to securities purchased at a premium above or a discount below par, shall mean the value as of any given date obtained by dividing the total premiums or discount at which such securities were purchased by the number of interest payments remaining to maturity on such securities after such purchase, and by multiplying the amount so calculated by the number of interest payment dates having passed since the date of such purchase; and

(1)  In the case of securities purchased at a premium, by deducting the product thus obtained from the purchase price, and

(2)  In the case of securities purchased at a discount, by adding the product thus obtained to the purchase price.

(e)  The association shall create and establish one (1) or more special funds (herein referred to as "capital reserve funds"), and shall credit each such capital reserve fund:

(1)  Any proceeds of sale of notes or bonds, to the extent provided in the resolution or resolutions of the association authorizing the issuance thereof,

(2)  Any funds directed to be transferred by the association to such fund, and

(3)  Any other moneys which may be made available to the association for the purpose of such fund from any other source or sources.

(f)  All moneys held in or credited to each such capital reserve fund, except as hereinafter provided, shall be used, as required, solely for the payment of the principal of bonds or of the sinking fund payments hereinafter mentioned with respect to such bonds, the purchase or redemption of bonds, the payment of interest on bonds or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; provided, however:

(1)  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 maximum capital reserve fund requirement, except for the purposes of making payment, when due, with respect to such bonds, of principal or redemption price of, interest and the sinking fund payments, as the same become due, and for the payment of which other moneys of the association are not available.

(2)  Any income or interest earned by, or increment to, any capital reserve fund due to the investment thereof may be transferred by the association to other funds or accounts of the association to the extent it does not reduce the amount of such capital reserve fund below the maximum capital reserve fund requirement.

(g)  Within sixty (60) days after the close of the association’s fiscal year, the chairman of the association shall certify to the state tax commission the amount, if any, required to maintain the capital reserve funds established pursuant to this section at the maximum capital reserve fund requirement, but only for any capital reserve fund of the association which is required by a resolution of the association to be maintained by a continuing appropriation from the sales tax account. The chairman of the association shall not be entitled to so certify to the state tax commission for any capital reserve fund of the association for bonds issued by the association after January 1, 1996.

(h)  The association shall not issue bonds at any time if upon issuance there will be created a capital reserve fund and the amount in the capital reserve fund securing such bonds will be less than the maximum capital reserve fund requirement, unless the association, at the time of issuance of such bonds, shall deposit in such fund, from the proceeds of the bonds so to be issued, or sources other than the state sales tax fund, an amount which, together with the amount then in such fund, will not be less than the maximum capital reserve fund requirement.

(i)  Moneys in a capital reserve fund not required for immediate use or disbursement may be invested in obligations of the state or the United States of America or obligations the principal of and interest on which are guaranteed by the state or the United States of America or obligations of agencies of the United States of America or any obligations which may from time to time be legally purchased by banks under title 26, Idaho Code, as investment of funds belonging to them or in their control. In computing the amount of a capital 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.

(j)  The association shall create and establish such other fund or funds as may be necessary or desirable for its corporate purposes.

(k)  In the event of the dissolution of the association, any funds or assets of the association remaining after paying its bonds, notes or other obligations shall revert to the state.

(l)  The total principal amount of the association’s outstanding bonds secured by a capital reserve fund entitled to appropriation from the state sales tax account pursuant to section 67-6211(g), Idaho Code, and section 63-3638(4), Idaho Code, shall not exceed the sum of eighty-nine million dollars ($89,000,000).

History:

[67-6211, added I.C., sec. 67-6211, as added by 1974, ch. 104, sec. 16, p. 1210; am. 1976, ch. 283, sec. 6, p. 980; am. 1977, ch. 326, sec. 5, p. 924; am. 1978, ch. 288, sec. 2, p. 703; am. 1980, ch. 95, sec. 1, p. 204; am. 1984, ch. 194, sec. 1, p. 443; am. 1989, ch. 423, sec. 8, p. 1045; am. 1991, ch. 239, sec. 3, p. 577; am. 1996, ch. 253, sec. 14, p. 820; am. 1998, ch. 374, sec. 2, p. 1164; am. 2000, ch. 207, sec. 3, p. 526.]