33-1125 APPLICATION OF BOND PROCEEDS -- LIMITATIONS.
EDUCATION
CHAPTER 11
SCHOOL BONDS
33-1125. Application of bond proceeds -- Limitations. (1) The proceeds derived from the issuance of any refunding bonds under the provisions of this act shall either be immediately applied to the payment, redemption or retirement of the bonds to be refunded and the cost and expense incident to such procedures, or shall immediately be placed in escrow to be applied to the payment of said bonds upon their presentation and the costs and expenses incident to such proceedings and for no other purpose or purposes whatsoever until the bonds being refunded have been paid in full and discharged, and all accrued interest thereon has also been paid in full, upon which occurrences the escrow shall terminate, and any funds remaining therein shall be returned to the district.
(2) Any escrowed proceeds, pending such use, may be invested or, if necessary, reinvested only in direct obligations of the United States of America, maturing at such times as to insure the prompt payment of the bonds refunded under the provisions of this act, and the interest accruing thereon.
(3) Such escrowed proceeds and investments, together with any interest to be derived from such investments shall be in an amount which at all times shall be sufficient to pay the bonds refunded as they are called for redemption and payment on prior redemption dates, as to principal, interest, any prior redemption premium due, and any charges of the escrow agent payable therefrom.
(4) Proceeds from the sale of refunding bonds shall be escrowed, and escrow agreement entered into, only with a commercial bank having full trust powers located within the state of Idaho and which is a member of the federal reserve system and of the federal deposit insurance corporation.
(5) The issuance of refunding bonds by any school district for the purposes and in the manner authorized by this act shall not be interpreted or deemed to be the creation of an indebtedness; and the proceeds as are or shall be escrowed at any time shall not be included in determining the limitation of bonded debt of the school district.
(6) No bonds may be refunded under the provisions of this act unless said bonds are callable for redemption prior to their maturity under their terms within ten (10) years from the date of issuance of the refunding bonds, and provisions shall be made for paying, or redeeming, and discharging all of the bonds refunded within said period.