15-1024

15-1024. Interest on bonds; sale; disposition
of proceeds; definition

A. The bonds shall bear interest, payable semiannually at the rate or rates set by
the accepted bid, which shall not exceed the maximum rate of interest set forth in the
resolution calling the election. The bonds may be made payable at such place within the
United States as the governing board of the school district directs and shall be sold in
the manner prescribed by the governing board of the school district for not less than
par.

B. The proceeds of the sale of the bonds shall be deposited in the county treasury
to the credit of the bond building fund of the school district. Such deposits may be
drawn out for the purposes authorized by this article as other school monies are
drawn. If a balance remains in the bond building fund after the acquisition or
construction of facilities is completed for which the bonds were issued and upon written
request of the governing board:

1. If the school district has outstanding bonded indebtedness, the balance
remaining in the bond building fund shall be transferred to the debt service fund of the
district.

2. If the district has no outstanding bonded indebtedness, the balance remaining in
the bond building fund shall be transferred to the general fund of the district.

C. When bonds are sold and the proceeds are not required to be used for a period of
ten days or more, such proceeds may be invested as provided by section 15-1025,
subsection B. All monies earned as interest or otherwise derived from the investment of
the proceeds of the sale of the bonds shall be credited to the debt service fund, except
that upon the request of the district, the monies earned as interest shall be deposited
to the bond building fund if federal laws or rules require the interest to be used for
capital expenditures or the monies earned as interest shall be credited to the bond
building fund if the voters authorized such use of the monies in a separate question at
the bond election. The separate question shall inform the voters that the monies will be
credited to the debt service fund, and may therefore reduce the amount of the secondary
property tax, if the measure authorizing the monies to be credited to the bond building
fund does not pass.

D. The amount of net premium associated with a bond issue may not exceed the
greater of:

1. five per cent of the par value of the bond issue.

2. One hundred thousand dollars.

E. Costs incurred in issuing the bonds may be paid from the net premium associated
with a bond issue. Any net premium not used to pay the costs incurred in issuing the
bonds shall be deposited in a debt service fund and used only to pay interest on the
bonds.

F. For the purposes of this section, "net premium" means the difference between the
par amount of the bond issue and the bond issue price determined pursuant to United
States treasury regulations.