§ 49-3-1003 — Deposit and payment of funds

(a) (1) The money arising from the sale of school bonds shall be turned over to the trustee of the county, and shall be kept separate and apart from all other funds, and shall be paid out only for the purposes and in the manner provided in this part, and the trustee shall be allowed no commission for receiving or disbursing the funds. (2) Any bond funds not put to immediate use shall be deposited at interest by the trustee until needed. The interest arising from the bond funds shall be used only towards retiring the school bond indebtedness or, upon recommendation of the county board of education and concurrence of the county legislative body, shall become a part of the proceeds of the sale of the bonds to be used for the purposes authorized by this part. (b) (1) In counties having a city or cities operating schools independent of the county, the trustee of the county shall pay over to the treasurer of the city that amount of the funds that bear the same ratio to the entire amount arising from this part as the average daily attendance of the year ending June 30 next preceding the sale of the bonds of the city or cities bears to the entire average daily attendance of the year ending June 30 next preceding the sale of the bonds of the county; provided, that the funds paid over to the city treasurer shall be kept separate from all other funds in the manner and for the purposes provided in this part for the county funds to be used. (2) The governing body of any city may, by ordinance regularly adopted, waive its right to all or a part of any funds due to it under this subsection (b) and return the funds to the trustee of the county for the purposes originally provided. (c) (1) In counties that have special school districts operating schools, the trustee of the county shall pay over to the special school district, provided the school district has a bonded treasurer, that amount of the funds that shall bear the same ratio to the entire amount arising from this part as the average daily attendance of the year ending June 30 next preceding the sale of the bonds of the respective special school district bears to the entire average daily attendance of the year ending June 30 next preceding the sale of the bonds of the county; provided, further, that the funds paid over to the special school district shall be kept separate from all other funds in the manner and for the purposes provided in this part for the county funds to be used. (2) The governing body of the special school district may, by resolution regularly adopted, waive its right to all or a part of any funds due to it under this subsection (c) and return the funds to the trustee of the county for the purposes originally provided.

Legislative History

Acts 1911, ch. 60, §§ 6, 7; Shan., §§ 1442a10, 1442a11; Code 1932, §§ 2562; 2563; C. Supp. 1950, § 2563; Acts 1951, ch. 191, § 1; 1953, ch. 48, § 1; 1953, ch. 269, § 1 (Williams, § 2563); Acts 1955, ch. 290, § 1; 1961, ch. 269, § 1; 1973, ch. 3; T.C.A. (orig. ed.), §§ 49-710 -- 49-712.