12C.9 INVESTMENT OF SINKING FUNDS -- BOND PROCEEDS.
1. The treasurer of state and all other state agencies authorized
to invest funds and the treasurer or other designated financial
officer of each political subdivision including each school
corporation shall invest the proceeds of notes, bonds, refunding
bonds, and other evidences of indebtedness, and funds being
accumulated for the payment of principal and interest or reserves in
investments set out in section 12B.10, subsection 4, paragraph
"a", subparagraphs (1) through (9), section 12B.10, subsection 5,
paragraph "a", subparagraphs (1) through (7), an investment
contract, or tax-exempt bonds. The investment shall be as defined
and permitted by section 148 of the Internal Revenue Code and
applicable regulations under that section. An investment contract or
tax-exempt bonds shall be rated within the two highest
classifications as established by at least one of the standard rating
services approved by the superintendent of banking by rule adopted
pursuant to chapter 17A.
2. Earnings and interest from investments pursuant to subsection
1 shall be used to pay the principal or interest as the principal or
interest comes due on the indebtedness or to fund the construction of
the project for which the indebtedness was issued, or shall be
credited to the capital project fund for which the indebtedness was
issued.
12C.9 INVESTMENT OF SINKING FUNDS -- BOND PROCEEDS.
1. The treasurer of state and all other state agencies authorized
to invest funds and the treasurer or other designated financial
officer of each political subdivision including each school
corporation shall invest the proceeds of notes, bonds, refunding
bonds, and other evidences of indebtedness, and funds being
accumulated for the payment of principal and interest or reserves in
investments set out in section 12B.10, subsection 4, paragraph
"a", subparagraphs (1) through (9), section 12B.10, subsection 5,
paragraph "a", subparagraphs (1) through (7), an investment
contract, or tax-exempt bonds. The investment shall be as defined
and permitted by section 148 of the Internal Revenue Code and
applicable regulations under that section. An investment contract or
tax-exempt bonds shall be rated within the two highest
classifications as established by at least one of the standard rating
services approved by the superintendent of banking by rule adopted
pursuant to chapter 17A.
2. Earnings and interest from investments pursuant to subsection
1 shall be used to pay the principal or interest as the principal or
interest comes due on the indebtedness or to fund the construction of
the project for which the indebtedness was issued, or shall be
credited to the capital project fund for which the indebtedness was
issued.
12C.9 INVESTMENT OF SINKING FUNDS -- BOND PROCEEDS.
1. The treasurer of state and all other state agencies authorized
to invest funds and the treasurer or other designated financial
officer of each political subdivision including each school
corporation shall invest the proceeds of notes, bonds, refunding
bonds, and other evidences of indebtedness, and funds being
accumulated for the payment of principal and interest or reserves in
investments set out in section 12B.10, subsection 4, paragraph
"a", subparagraphs (1) through (9), section 12B.10, subsection 5,
paragraph "a", subparagraphs (1) through (7), an investment
contract, or tax-exempt bonds. The investment shall be as defined
and permitted by section 148 of the Internal Revenue Code and
applicable regulations under that section. An investment contract or
tax-exempt bonds shall be rated within the two highest
classifications as established by at least one of the standard rating
services approved by the superintendent of banking by rule adopted
pursuant to chapter 17A.
2. Earnings and interest from investments pursuant to subsection
1 shall be used to pay the principal or interest as the principal or
interest comes due on the indebtedness or to fund the construction of
the project for which the indebtedness was issued, or shall be
credited to the capital project fund for which the indebtedness was
issued.
