490                                 Laws of Maryland                        [Ch. 178

of this subtitle and in the resolution authorizing the issuance of such
bonds or notes or the trust agreement securing such bonds.

152B. Debt Service Reserve Funds.

(a)   The Authority may create and establish one or more reserve
funds to be known as debt service reserve funds and may pay into
such debt service reserve funds (1) any proceeds of sale of notes
or bonds, to the extent provided in the resolution authorizing the
issuance thereof, and (2) any other monies which may be made
available to the Authority for the purpose of such funds from any
other source or sources. The monies held in or credited to any debt
service reserve fund established under this section, except as herein-
after provided, shall be used solely for the payment of the principal
of bonds of the Authority secured by such debt service reserve fund
as the same become due, the purchase of such bonds of the Authority,
the payment of interest on such bonds of the Authority or the pay-
ment of any redemption premium required to be paid when such
bonds are redeemed prior to maturity; provided however, that the
Authority shall have power to provide that monies m any such fund
shall not be withdrawn therefrom at any time in such amount as
would reduce the amount of such funds to less than the maximum
amount of principal and interest becoming due in any succeeding
calendar year on the bonds of the Authority then outstanding and
secured by such debt service reserve fund, except for the purpose
of paying principal of and interest on such bonds of the Authority
secured by such debt service reserve becoming due and for the pay-
ment of which other monies of the Authority are not available. Any
income or interest earned by, or increment to, any such debt service
reserve fund due to the investment thereof may be transferred by
the Authority to any other fund or account of the Authority and
the Authority shall have power to provide that any such transfer
shall not reduce the amount of such debt service reserve fund below
the maximum amount of principal and interest becoming due in any
succeeding calendar year on all bonds of the Authority then out-
standing and secured by such debt service reserve fund.

(b)   The Authority shall not issue bonds at any time if the maxi-
mum amount of principal and interest becoming due in any succeed-
ing calendar year on the bonds outstanding and then to be issued
and secured by a debt service reserve fund will exceed the amount
of such debt service reserve fund at the time of issuance, unless the
Authority, at the time of the issuance of such bonds, shall deposit
in such debt service reserve fund from the proceeds of the bonds so
to be issued, or otherwise, an amount which, together with the
amount then in such debt service reserve fund, will be not less than
the maximum amount of principal and interest becoming due in any
succeeding calendar year on the bonds then to be issued and on all
other bonds of the Authority then outstanding and secured by such
debt service reserve fund.

(c)  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 shall be invested shall be valued at par, or if purchased
at less than par, at their cost to the Authority.

(d)  For the purposes of this section, the principal of bonds shall
become due at the stated date of maturity or such earlier date as