1. (a) The authority may establish and maintain a debt service fund, and if necessary, a reserve fund, for each issue of bonds in which there shall be deposited or transferred:

   1. (1) all money appropriated by the general assembly for the purpose of the fund in accordance with section 18(a) of this chapter;
   2. (2) all proceeds of bonds required to be deposited in the fund by terms of a contract between the authority and its holders or a resolution of the authority with respect to the proceeds of bonds;
   3. (3) all other money appropriated by the general assembly to the funds; and
   4. (4) any other money or funds of the authority that it decides to deposit in either fund.
2. (b) Subject to section 18(b) of this chapter, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds of the authority as the interest and principal become due and payable and for the retirement of bonds.
3. (c) Money in any reserve fund in excess of the required debt service reserve, whether by reason of investment or otherwise, may be withdrawn at any time by the authority and transferred to another fund or account of the authority, subject to the provisions of any agreement with the holders of any bonds.

As added by P.L.13-1990, SEC.1.