Idaho State Statutes - Idaho Attorney Directory

(1) The proceeds
derived from the issuance of any refunding bonds under the provisions of this
act shall either be immediately applied to the payment, redemption or
retirement of the bonds to be refunded and the cost and expense incident to
such procedures, or shall immediately be placed in escrow to be applied to the
payment of said bonds upon their presentation and the costs and expenses
incident to such proceedings and for no other purpose or purposes whatsoever
until the bonds being refunded have been paid in full and discharged, and all
accrued interest thereon has also been paid in full, upon which occurrences
the escrow shall terminate, and any funds remaining therein shall be returned
to the district.
(2) Any escrowed proceeds, pending such use, may be invested or, if
necessary, reinvested only in direct obligations of the United States of
America, maturing at such times as to insure the prompt payment of the bonds
refunded under the provisions of this act, and the interest accruing thereon.
(3) Such escrowed proceeds and investments, together with any interest to
be derived from such investments shall be in an amount which at all times
shall be sufficient to pay the bonds refunded as they are called for
redemption and payment on prior redemption dates, as to principal, interest,
any prior redemption premium due, and any charges of the escrow agent payable
therefrom.
(4) Proceeds from the sale of refunding bonds shall be escrowed, and
escrow agreement entered into, only with a commercial bank having full trust
powers located within the state of Idaho and which is a member of the federal
reserve system and of the federal deposit insurance corporation.
(5) The issuance of refunding bonds by any school district for the
purposes and in the manner authorized by this act shall not be interpreted or
deemed to be the creation of an indebtedness; and the proceeds as are or shall
be escrowed at any time shall not be included in determining the limitation of
bonded debt of the school district.
(6) No bonds may be refunded under the provisions of this act unless said
bonds are callable for redemption prior to their maturity under their terms
within ten (10) years from the date of issuance of the refunding bonds, and
provisions shall be made for paying, or redeeming, and discharging all of the
bonds refunded within said period.

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