15-1107. Litigation recovery fund; disposition
of proceeds
A. Monies received for and derived from settlement of legal controversies or from
recovery of costs, attorney fees or damages by a school district in litigation by or
against the school district shall be deposited with the county treasurer who shall credit
the deposits to the litigation recovery fund of the school district. The litigation
recovery fund is a continuing fund which is not subject to reversion.
B. If a school district receives monies as provided in subsection A for the purpose
of replacing or repairing school buildings or other school property, the governing board,
or the superintendent or chief administrative officer with the approval of the governing
board, may only apply the proceeds to:
1. Pay any outstanding bonded indebtedness of the school district which is payable
from the levy of taxes on property within the school district.
2. Construct, acquire, improve, repair or furnish school buildings after notice and
a hearing.
3. Replace or repair the school property other than school buildings.
C. Except as provided in subsection B, the governing board, or the superintendent
or chief administrative officer with the approval of the governing board, may apply the
proceeds of litigation recoveries to procure legal services or for the costs of
litigation.
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