68:01:01:03Loan reserve account requirement.

For any series of bonds for which a loan reserve account is required, the borrower must deposit in the loan reserve account, as of the date of calculation, one of the following amounts, as applicable: (1) If the series of bonds is issued on a tax-exempt basis, an amount equal to ten percent of the original principal amount of the series of bonds or the lesser amount required under 26 U.S.C. § 148(d)(1) (December 31, 2024), to preserve the tax-exempt status of interest on the series of bonds; (2) If the series of bonds is issued on a taxable basis, the maximum debt service, assuming no acceleration of maturity, for the bond year; or (3) An amount as determined by the authority.

Source: 13 SDR 134, effective March 31, 1987; 21 SDR 14, effective August 3, 1994; 52 SDR 49, effective November 17, 2025.