§ 159-135. Application of proceeds.
§ 159‑135. Application of proceeds.
After payment of any notes issued in anticipation of the sale of thebonds and after payment of the cost of preparing, marketing, and issuing thebonds, the proceeds of the sale of a bond issue shall be applied only to thepurposes for which the issue was authorized. Any excess amount which for anyreason is not needed for any such purpose shall be applied either (i) towardthe purchase and retirement of bonds of that issue at not more than their facevalue and accrued interest, or (ii) toward payment of the earliest maturinginstallments of that issue, or (iii) in accordance with any trust agreement orresolution securing the bonds. (1917, c. 138, s. 31; 1919, c. 178, s. 3(31); C.S., s. 2957; 1921, c.8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1927, c. 81, s. 38; 1971, c. 780, s. 1;1973, c. 494, s. 28.)