§ 1200 District Fund Payment Rules
This law says the county can only give out district money when the county auditor writes a payment order, first using the bond retirement fund and, if that's not enough, using other district funds to pay bonds and interest when they’re due.
A town borrowed money by selling a bond to build a new library. When the bond reaches its due date, the bond holder brings the bond to the county auditor to get paid.
The auditor will first try to pay the bond from the town’s special bond retirement fund. If that fund doesn’t have enough cash, the auditor will take the money from any other town funds to pay the bond and any interest that’s owed.
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§ 1200 District Fund Payment Rules
Last verified: January 11, 2026