§ 39:513 — Application of proceeds

§513. Application of proceeds
A. The proceeds of bonds issued under this Part shall be used exclusively for the
purpose or purposes for which the bonds are authorized to be issued, including but not
limited to the payment of costs of issuance, the cost of funding any required debt service
reserves, the cost of credit enhancement or the cost of a financial products agreement. The
purchaser of the bonds shall not be obliged to see to the application thereof. In the event that
the governing authority of the governmental entity that issued bonds determines that all or
part of the proceeds of the sale of such bonds are no longer needed or required for the
purpose for which the bonds were originally issued, the governing authority may rededicate
such unexpended proceeds for a different purpose, provided that such different purpose is
one for which the bonds could have been originally issued, or it may utilize the unexpended
proceeds to prepay or redeem such bonds.
B. Any premium received by a governmental entity in connection with the sale of
bonds shall be expended for:
(1) Any purpose for which the bonds are being issued and deposited in the same
account into which the bond proceeds are deposited for such purpose.
(2) The payment of the principal or the interest on the bonds and shall be deposited
in a sinking fund or debt service fund established for such purpose.
C. Any accrued interest received by a governmental entity in connection with the sale
of bonds shall be applied to the payment of principal or interest on such bonds, and deposited
in a sinking fund or debt service fund established for such purpose.

Legislative History

Acts 2018, No. 569, §1, eff. July 1, 2018.