20-9-440. Payment of debt service obligations -- termination of interest. (1) The school district shall provide the county treasurer with a general obligation bond, oil and natural gas revenue bond, or impact aid revenue bond debt services schedule. The county treasurer shall maintain a separate debt service fund for each school district and, if bonds are to be issued as either impact aid revenue bonds or oil and natural gas revenue bonds, shall maintain a separate impact aid revenue bond debt service fund or oil and natural gas revenue bond debt service fund, as applicable, and an impact aid revenue bond debt service reserve account or oil and natural gas revenue bond debt service reserve account, if required. The school district shall credit all tax money, oil and natural gas revenue, or impact aid revenue collected for debt service to the appropriate fund and use the money credited to the fund for the payment of debt service obligations in accordance with the school financial administration provisions of this title.
(2) The county treasurer or, if a district has established an investment account and subsidiary checking account for the district's debt service fund under 20-9-235, the school district shall pay from the debt service fund all amounts of interest and principal on school district bonds as the interest or principal becomes due when the coupons or bonds are presented and surrendered for payment and shall pay all special improvement district assessments as they become due. If the bonds are held by the state of Montana, then all payments must be remitted to the state treasurer who shall cancel the coupons or bonds and return the coupons or bonds to the county treasurer with the state treasurer's receipt. If the bonds are not held by the state of Montana and the interest or principal is made payable at some designated bank or financial institution, the county treasurer shall remit the amount due for interest or principal to the bank or financial institution for payment against the surrender of the canceled coupons or bonds.
(3) Whenever any school district bond or installment on school district bonds becomes due and payable, interest ceases on that date unless sufficient funds are available to pay the bond when it is presented for payment or when payment of an installment is demanded. In either case, interest on the bond or installment continues until payment is made.
(4) Any installment on interest and principal on bonds held by the state that is not promptly paid when due draws interest at an annual rate of 6% from the date due until actual payment, irrespective of the rate of interest on the bonds.
History: En. 75-7129 by Sec. 330, Ch. 5, L. 1971; amd. Sec. 3, Ch. 432, L. 1975; R.C.M. 1947, 75-7129; amd. Sec. 14, Ch. 492, L. 2003; amd. Sec. 26, Ch. 400, L. 2013; amd. Sec. 2, Ch. 166, L. 2019.
Structure Montana Code Annotated
20-9-401. Applicable laws for school district bonding
20-9-402. Definition of school district for bonding purposes
20-9-403. Bond issues for certain purposes
20-9-404. Contracts and bonds for joint construction
20-9-405. Proportional joint ownership -- disposition of money
20-9-407. Industrial facility agreement for bond issue in excess of maximum
20-9-408. Definition of forms of bonds
20-9-410. Limitation of term and interest -- timing for redemption
20-9-411. Dates of issue and payments
20-9-412. Issuance of refunding bonds without election
20-9-413. through 20-9-420 reserved
20-9-422. Additional requirements for trustees' resolution calling bond election
20-9-423. Form, contents, and circularization of petition proposing school district bond election
20-9-424. Validation of petition -- election administrator's certificate
20-9-425. Trustees' consideration of validated petition proposing bond election
20-9-426. Preparation and form of ballots for bond election
20-9-427. Notice of bond election by separate purpose
20-9-428. Determination of approval or rejection of proposition at bond election
20-9-429. Trustees' resolution to issue school district bonds pursuant to public sale
20-9-430. Sale of school district bonds and notice of public sale
20-9-431. Publication of notice of sale of school district bonds
20-9-432. Sale of school district bonds
20-9-433. Form and execution of school district bonds
20-9-434. Registration of school district bonds by county treasurer and copy for preservation
20-9-435. Delivery of school district bonds and disposition of sale money
20-9-436. County attorney to assist in proceedings
20-9-437. School district liable on bonds
20-9-438. Preparation of general obligation debt service fund budget -- operating reserve
20-9-440. Payment of debt service obligations -- termination of interest
20-9-441. Redemption of bonds -- investment of debt service fund money
20-9-442. Entries of payments and notification of school district
20-9-443. Disposition of remaining debt service fund
20-9-444. Liability of officers for failure to provide fund for payment of bonds
20-9-445. Liability for misuse of bond payment fund
20-9-446. Duty of county attorney to prosecute
20-9-447. through 20-9-450 reserved
20-9-457. through 20-9-460 reserved
20-9-464. Statute of limitations -- action to test validity
20-9-465. Action to restrain bond issue -- time for bringing
20-9-468. through 20-9-470 reserved
20-9-471. Issuance of obligations -- authorization -- conditions
20-9-472. Security for impact aid revenue bonds -- agreement of state
20-9-473. Security for oil and natural gas revenue bonds
20-9-474. Oil and natural gas revenue bond debt service reserve account