1. There is hereby established as a special dedicated trust fund, separate and apart from all other public money or funds of this State, a fund in the State Treasury to be known as the Unemployment Compensation Bond Fund. The State Treasurer shall be the treasurer and custodian of the Unemployment Compensation Bond Fund. All special bond contributions and any other amounts provided for in any contract, instrument or other agreement entered into pursuant to subsection 5 of NRS 612.6124 must be paid into the Unemployment Compensation Bond Fund, provided that all or a portion of the special bond contributions may be paid into this State’s account in the Unemployment Trust Fund of the United States Treasury as may be provided in any contract, instrument or other agreement entered into pursuant to subsection 5 of NRS 612.6124. Expenditures of money in the Unemployment Compensation Bond Fund are not subject to any provision of law requiring specific appropriations or other formal release by state officers of money in their custody.

2. The money in the Unemployment Compensation Bond Fund must be used for any or all of the following purposes:

(a) Payment of bond obligations and bond administrative expenses;

(b) Replenishment of bond reserves;

(c) Funding or replenishment of additional reserves in an amount required under any instrument or agreement related to the bonds to maintain a debt service coverage ratio at least at the level required by the trust indenture and instruments in connection with the bonds or in an amount that may be necessary to maintain any ratings on the bonds at a level determined by the State Treasurer, in his or her sole discretion; and

(d) Optional redemption, mandatory redemption, purchase, refunding or defeasance of outstanding bonds.

Subject to the provisions of the trust indenture and instruments in connection with the bonds, money in the Unemployment Compensation Bond Fund may also be used for transfer to the Benefit Account for payment of benefits under this chapter.

3. Pending application for the purposes authorized, money held or deposited by the State Treasurer in the Unemployment Compensation Bond Fund may be invested or reinvested as are other funds in the custody of the State Treasurer in the manner provided by law. All earnings received from the investment or deposit of money in the Unemployment Compensation Bond Fund must be retained therein.

(Added to NRS by 2013, 2647)