§ 9466 Drainage District Bond Investments

Key Takeaways

•If a drainage district has extra money in its bond fund that isn't needed right away to pay back bonds or interest, it can invest that money.
•The district can only invest this extra money in its own bonds that are backed by the same assessment.
•This rule was added in 1943.

Example

Imagine a small town has a drainage district that collects money from property owners to build and maintain drainage systems. The district has some extra money in its fund that it doesn't need to use immediately to pay back its loans or interest.

Instead of letting this extra money sit idle, the district can invest it in its own bonds. This helps the district earn a little more money while keeping the funds secure because the investment is backed by the same property assessments that originally funded the project.

Whenever the drainage district has any money in the bond fund of any assessment which money is not immediately required for the purpose of paying principal or interest on bonds of the assessment, all or any part of it may be invested in bonds of the drainage district based upon and secured by the assessment. (Added by Stats. 1943, Ch. 369.)

Key Takeaways

•If a drainage district has extra money in its bond fund that isn't needed right away to pay back bonds or interest, it can invest that money.
•The district can only invest this extra money in its own bonds that are backed by the same assessment.
•This rule was added in 1943.

Key Takeaways

Example

Key Terms

References

§ 9466 Drainage District Bond Investments

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References