Sec. 38.5. Excess in sinking fund accounts

At the request of the issuer, the State Comptroller shall transfer any surplus exceeding $100 in a sinking fund account to the issuer or to another sinking fund account of the issuer. Such request by the issuer shall not be made more than once in any 12-month period. Such transfer shall occur on such day or days as may be agreed upon by the State Comptroller and the issuer. Thirty days prior to the date of transfer, the issuer shall deliver to the State Comptroller a certificate setting forth in reasonable detail the calculation of the amount of excess on deposit in the sinking fund account. Notwithstanding anything above to the contrary:

(a) In the event the State Comptroller is not reimbursed as provided in section 38.7 of this Part, the State Comptroller shall deduct the amount of the required reimbursement from any excess on deposit in the sinking fund account; provided, however, that in no event shall the State Comptroller use assets of the sinking fund account other than the excess therein for such reimbursement.

(b) In the event the State Comptroller, at the request or with the consent of the issuer, has invested amounts on deposit in the sinking fund account in investments which do not mature or cannot be redeemed or for which the State Comptroller is unable to find a purchaser (after using reasonable efforts) at a time and in an amount sufficient to pay such excess to the issuer when requested by the issuer, the State Comptroller shall pay to the issuer as much of the excess as practicable at such time and shall pay the balance at the earliest time that it becomes available. Upon defeasance, redemption or maturity of all of the sinking fund bonds payable from a sinking fund account, any excess remaining in the sinking fund account, regardless of size, shall be paid over to the issuer at the earliest date that such excess becomes available.