§ 36-9-13-33 — Proceeds; application; liens

(a) The proceeds of any bonds issued under
section 30 of this chapter or of any loans made under section 31 of this
chapter shall first be applied to the reimbursement of all amounts
advanced for preliminary expenses under section 21 of this chapter.
The proceeds shall then be applied solely to the payment of the costs
for which the bonds are issued or the loan is negotiated, including
incidental expenses and interest during construction or acquisition.
(b) The bondholders under section 30 of this chapter, lenders under
section 31 of this chapter, or trustees under section 32 of this chapter
have a lien upon the proceeds of the bonds or the loan until those
proceeds are applied in the manner prescribed by this section.
[Pre-Local Government Recodification Citation:
19-8-4-17.]
As added by Acts 1981, P.L.309, SEC.86. Amended by
P.L.37-1988, SEC.39.