§ 21-17-440 — Refunding and refunding bonds; disposition of proceeds; payment of costs; application of accrued interest and premiums

(a) Except as otherwise provided, the proceeds of
refunding bonds shall either be immediately applied to the
retirement of the bonds to be refunded or be placed in escrow or
trust in any trust bank or trust banks to be applied to the
payment of the refunded bonds or the refunding bonds, or both,
upon their presentation therefor to the extent, in such priority
and otherwise in the manner which the board may determine.
(b) The incidental costs of the refunding of bonds may be
paid by the purchaser of the refunding bonds or be defrayed from
other available revenues of the board or from the proceeds of
the refunding bonds, or from the interest or other yield derived
from the investment of any refunding bond proceeds or other
monies in escrow or trust, or from any other sources legally
available therefor, or any combination thereof, as the board may
determine.
(c) Any accrued interest and any premium appertaining to a
sale of refunding bonds may be applied to the payment of the
interest thereon or the principal thereof, or to both interest
and principal, or may be deposited in a reserve therefor, or may
be used to refund bonds by deposit in escrow, trust or
otherwise, or may be used to defray any incidental costs
appertaining to the refunding, or any combination thereof, as
the board may determine.