§ 16-5-110 — Disposition of proceeds; escrowed proceeds

The proceeds of refunding public securities shall either be
immediately applied to the retirement of the public securities
to be refunded or be placed in escrow in any state or national
bank within the state which is a member of the federal deposit
insurance corporation and which has trust powers, to be applied
to the payment of the public securities being refunded upon
their presentation. Any accrued interest and any premium
appertaining to a sale of refunding public securities may be
applied to the payment of the principal and interest, or both
may be deposited in a reserve account, or may be used to defray
incidental costs, as the governing body may determine. Any
escrow shall not be limited to proceeds of refunding public
securities, but may include other monies available for its
purpose. Any escrowed proceeds, may be invested or reinvested in
federal securities. Escrowed proceeds and investments, together
with any interest or other yield to be derived from any
investment, shall be in an amount at all times sufficient to
cover principal, interest, any prior redemption premium due, and
any charges of the escrow agent, to pay the public securities
being refunded as they become due at their respective maturities
or due at designated prior redemption dates in connection with
which the governing body of the issuer shall exercise a prior
redemption option. The computations made in determining
sufficiency shall be verified by a certified public accountant
certificated to practice in this state or in any other state.
Any purchaser of any refunding public security is not
responsible for the application of the proceeds thereof by the
issuer or any of its officers, agents or employees.