PART II. SINKING FUNDS

 

§47-31  Sinking fund.  The director offinance of each county shall establish as a special deposit in the treasury ofthe county a sinking fund with which to pay any present or future bondedindebtedness of the county issued under this chapter in the form commonly knownas "term bonds", and may establish the sinking fund with respect tobonds issued under this chapter in the form commonly known as "serialbonds".  The governing body or the director of finance in the case of termbonds shall, and in the case of serial bonds may, provide in the proceedingsauthorizing the bonds, that for the purpose of retiring the bonds, there shallbe transferred from the current receipts of the county provided by law for thepurpose or which may be set aside by the governing body for the purpose anddeposited to the sinking fund, such a sum of moneys that at such times and insuch amounts that the aggregate of the amounts on deposit in the sinking fundwill be sufficient to provide for the retirement of the bonds, whether atmaturity or upon redemption or purchase, at the times and in the amounts setforth in the proceedings.

Except as otherwise provided by law, thedirector of finance of each county shall also deposit to the sinking fund,immediately upon the receipt thereof, all premiums received on the sale ofbonds under this chapter; provided that the premiums on serial bonds shall bedeposited to the interest fund from which the payment of interest on the bondswill be made.

The money deposited in a sinking fund shall beused for the retirement, whether at maturity or upon redemption or purchase, ofany outstanding bonds of the county issued under this chapter in accordancewith the proceedings authorizing the bonds, and shall be held in trust exclusivelyfor those purposes. [L 1989, c 80, pt of §2]