§ 333A.091 — Proceeds of refunding obligations in escrow or trust: Investment; security; sufficient amount; purchaser not responsible for application of proceeds

Nevada § 333A.091

• Jurisdiction: Nevada
• Title 27: PUBLIC PROPERTY AND PURCHASING
• Ch. 333A: Purchasing:

Text

1. Any escrow or trust into which the proceeds of refunding obligations are placed pursuant to NRS 333A.0908 must not necessarily be limited to proceeds of refunding obligations but may include other money available for its purpose.
2. Any proceeds of refunding obligations placed in escrow or trust, pending such use, may be invested or reinvested in federal securities, and in the case of an escrow or trust for the refunding of outstanding obligations issued in accordance with NRS 333A.0906 to 333A.0916 , inclusive, in other securities issued by the Federal Government if the resolution by the Board authorizing the issuance of such outstanding state securities or any trust indenture or other proceedings appertaining thereto expressly allows any such investment or reinvestment in such securities issued by the Federal Government other than federal securities.
3. A trust bank accounting for federal securities and other securities issued by the Federal Government in such escrow or trust may place the securities for safekeeping wholly or in part in any trust bank or trust banks within or without or both within and without this State.
4. A trust bank shall continuously secure any money placed in escrow or trust and not so invested or reinvested in federal securities and other securities issued by the Federal Government by a pledge in any trust bank or trust banks within or without or both within and without the State of federal securities in an amount at all times at least equal to the total uninvested amount of such money accounted for in such escrow or trust.
5. Such proceeds and investments in escrow or trust, together with any interest or other gain to be derived from any such investment, must be in an amount at all times at least sufficient to pay principal, interest, any prior redemption premiums due, and any charges of the escrow agent or trustee and any other incidental expenses payable therefrom, except to the extent provision may have been previously otherwise made therefor, as such obligations become due at their respective maturities or due at designated prior redemption date or dates in connection with which the using agency has exercised or is obligated to exercise a prior redemption option on behalf of the State.
6. The computations made in determining such sufficiency must be verified by a certified public accountant certified or licensed to practice in this State or in any other state.
7. Any purchaser of any refunding obligation issued pursuant to NRS 333A.0906 to 333A.0916 , inclusive, is not responsible for the application of the proceeds of the refunding obligation by the State, the Board, the using agency or any of the officers, agents or employees of the State.
8. As used in this section, “federal securities” means bills, notes, certificates of indebtedness, bonds or other similar securities which are direct obligations of the United States or which are unconditionally guaranteed as to payment, both of principal and of interest, by the United States.

Legislative History

(Added to NRS by 2005, 2899 )