Section 13-19-29 - Limitation on expenditures when amounts are due and funds pledged assecurity.
13-19-29. Limitation on expenditures when amounts are due and funds pledged as security. If capital outlay certificates are issued to, or a lease-purchase agreement, or other financing arrangement is entered into with the Health and Educational Facilities Authority as authorized by §§ 13-13-39, 13-16-6.4, 13-16-7, 13-16-29, 13-19-27, and 13-19-28, and a school district has pledged foundation program funds or other state aid provided under Title 13 to secure its obligations under or pursuant to a lease, resolution, certificate, or other arrangement with the Health and Educational Facilities Authority and there are amounts due but not yet paid by a school district, no cash receipts from the collection of any taxes, from foundation program aid or state aid under chapter 13-13 or from the collection of tuition charges may be expended for any purpose except paying the amounts due under the lease, resolution, certificate, or other arrangement as specified by written notice by or on behalf of the Health and Educational Facilities Authority. In the event of a failure to pay amounts due the Health and Educational Facilities Authority, moneys from foundation program aid or state aid under Title 13 shall first be applied to pay the amounts which are due but not yet paid to the authority, any trustee acting as a fiduciary on behalf of any holders of bonds, notes, or other certificates in connection with any such arrangement and any such holders. If this application is insufficient, cash receipts from the collection of any pledged taxes and tuition charges shall be applied to pay the amounts which are due but not yet paid to the authority, any such trustee, and any such holders.
Source: SL 1986, ch 124, § 3; SL 1989, ch 146, § 8; SL 1999, ch 84, § 7.