79-1087. Class V school district; board of education; bonds; interest and sinking fund; investment.

The board of education of a Class V school district shall provide for the interest on all existing bonds issued by the district before the interest becomes due. The board shall also, immediately after the expiration of one-half of the time for which such bonds are issued, proceed to set apart each year, for a sinking fund, a requisite amount or proportion sufficient to pay the principal of the bonds when they become due. All money set apart for the sinking fund shall be invested as follows:

(1) In the purchase of and redemption of bonds of the school district, which bonds shall be purchased in the open market in such manner as the board of education prescribes;

(2) In bonds of the city constituting the school district;

(3) In bonds of the county in which such district is situated;

(4) In bonds of the State of Nebraska; and

(5) In United States bonds.

Source:Laws 1891, c. 45, § 26, p. 327; R.S.1913, § 7032; C.S.1922, § 6663; C.S.1929, § 79-2726; Laws 1937, c. 183, § 3, p. 724; C.S.Supp.,1941, § 79-2726; R.S.1943, § 79-2730; Laws 1945, c. 214, § 4, p. 630; Laws 1949, c. 256, § 267, p. 781; R.S.1943, (1994), § 79-1007.03; Laws 1996, LB 900, § 733.