48-1798. Bond retirement fund; investment of fund

281 words·~1 min read·/az/title-48/48-1798

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Beginning with the third year after issuance of any bonds, the board of directors shall include in the certificate provided for in section 48-1773 an amount sufficient to create a sinking fund that will pay the outstanding bonds when they become due. All probable income or increase of income from the sources referred to in section 48-1774 shall be taken into account in certifying the annual requirements of the sinking fund.

B. When the sinking fund amounts to five hundred dollars or any multiple thereof, the monies in the fund may be loaned on farmlands at not more than thirty-five percent of their cash value, but such loans shall mature not later than the bonds that the monies loaned were raised to pay.

C. In addition to subsection B of this section, the board of directors may invest monies in the fund in:

1. Interest-bearing savings accounts or certificates of deposit in banks doing business in this state whose accounts are insured by the federal deposit insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.

2. Interest-bearing savings accounts or certificates of deposit in savings and loan associations doing business in this state whose accounts are insured by the federal savings and loan insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.

3. Deposits placed in accordance with the procedures prescribed in section 35-323.01.