539.6137 - Escrow or trust for payment of refunded or refunding bonds.
539.6137 Escrow or trust for payment of refunded or refunding bonds.
1. Any escrow or trust provided pursuant to NRS 539.6135 is not necessarily limited to the proceeds of refunding bonds but may include other money available for its purpose. Any proceeds in escrow or trust, pending their use, may only be invested or reinvested in securities which are direct obligations of or which the principal of and interest on are unconditionally guaranteed by the Federal Government.
2. Any trust bank or credit union shall continuously secure any money placed in escrow or trust and not so invested or reinvested in federal securities by a pledge in any trust banks or credit unions, within or without or both within and without this state, of similar federal securities in an amount which is at all times at least equal to the total uninvested amount of the money accounted for in the escrow or trust.
3. The proceeds and investments in escrow or trust, together with any interest or other gain to be derived from any such investment, must be in an amount at all times at least sufficient to pay the principal of, interest on and any prior redemption premiums due, any charges of the escrow agent or trustee and any other incidental expenses payable therefrom, except to the extent provision may have been previously otherwise made therefor, as those obligations become due at their respective maturities or due at the designated prior redemption dates in connection with which the board has exercised or is obligated to exercise a prior redemption option on behalf of the district.
4. The computations made in determining that sufficiency must be verified by a certified public accountant licensed to practice in this state or in any other state.
(Added to NRS by 1985, 2059; A 1999, 1511)