48-1798. Bond retirement fund; investment of
fund
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 which 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 fund may be loaned on farmlands at not more than thirty-five per cent of their cash
value, but such loans shall mature not later than the bonds which the funds loaned were
raised to pay.
C. In addition to the provisions of subsection B of this section, the board of
directors may invest funds 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.
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