11-1-5 - Form, time, and place of payment -- Held in trust.
11-1-5. Form, time, and place of payment -- Held in trust.
Whenever any county, municipality, school district or taxing unit within this state isauthorized to issue and sell its bonds, they may be issued in serial form or in the form of termbonds and made payable in such manner and at such times, within legal limits, as such county,municipality, school district or taxing unit may determine. Principal and interest shall be madepayable only at a duly incorporated bank or trust company operating under state or nationalbanking laws or principal and interest may be made payable at such a bank or trust company or atthe office of the treasurer of the issuer, at the option of the holder; provided, such alternativeplaces of payment are designated in the bonds by the issuer at the time such bonds are issued.
All payments of funds either as principal or interest on any bonds issued by any county,municipality, school district or other taxing unit within this state paid to anyone other than theowner of such bonds shall be regarded and held as trust funds, and the person, firm or corporationso receiving the same shall be held as a trustee of such funds holding the same for the benefit ofthe owners and holders of such bonds until the same are fully paid over. Until such funds are paidover by the person, firm or corporation collecting the same, they shall be set up and held in aseparate trust account and not commingled or used by the collector in any manner whatever.
No Change Since 1953