17-289. Bond proceeds fund; investment
A. The proceeds received from the sale and delivery of bonds after deducting the
necessary costs and expenses of the issuance and sale of the bonds shall be deposited
with the trustee designated by the commission pursuant to section 17-290 to be placed in
a bond proceeds fund, which shall be established for each series or issue of bonds. The
bond proceeds fund shall be separate and apart from all other funds, except that the
trustee shall first apply those amounts of the bond proceeds set forth in the resolution
issuing the bonds or notes to all reserve and sinking funds if required by the bond
resolution. Monies in the bond proceeds fund may be spent for any game and fish
facilities purpose consistent with the resolution authorizing the bonds.
B. On order of the commission, all monies in a bond proceeds fund shall be invested
by the trustee for the series or issue of bonds in obligations issued or guaranteed by
the United States or any of the senior debt of its agencies, sponsored agencies,
corporations, sponsored corporations or instrumentalities or any investments authorized
by any other agencies of the United States government which are now authorized for use to
secure public deposits or state, county or municipal bonds issued in this state on which
the payments of interest have not been deferred. The order directing the trustee to
invest the monies shall set forth the specified time when the proceeds from the sale of
the bonds shall be used for the purposes directed in the bond resolution, and the trustee
shall invest the proceeds from the sale of the bonds, in the securities described in this
subsection. If authorized by the commission, the trustee may purchase any of these
securities which mature on a date after the date specified in the order if the trustee
obtains a commitment to repurchase the securities on the date specified in the order from
a bank or financial institution. The trustee shall exercise reasonable care in choosing
the bank or financial institution repurchasing the securities.
C. The separate game and fish bond proceeds funds for different series of bonds may
be held by different trustees designated pursuant to section 17-290.
D. If the revenues pledged to secure the bonds or any series of the bonds ever
become insufficient to pay the annual principal and interest on the bonds, the commission
shall direct the liquidation of the securities remaining in the respective bond proceeds
fund and order the trustee to use the proceeds of the liquidation to make current all
payments then due on the bonds.
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