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POL 2.105 Debt Service Reserves

The college shall endeavor to accumulate and maintain debt retirement reserves in an amount equal to two (2) years of principal and interest for each debt retirement fund. When a new debt retirement fund is established, the accumulation of reserve may be spread through several years. The purpose of these reserves is to provide a source of revenue for payment of principal and interest in the event of a possible decline in rate of taxes paid; a possible tax payers lawsuit with injunction against levying tax or any other event that could result in a default on bond issue if there were no reserve.

August 11, 1983