Jerome Joint School District No. 261

FINANCIAL MANAGEMENT 7700

Bond Account

Creation, Purpose, and Maintenance of Bond Account

Payment of principal and interest due on bonds shall be made by the District from an account (the “bond

account”) established under the resolution(s) authorizing bonds (“bond resolution(s)”). As required by the bond

resolution, the bond account shall be maintained separate and apart from any other accounts of the District. A

separate subaccount under the bond account shall be established for each series of bonds. All bond tax receipts

and bond levy subsidy payments, hereinafter defined, shall be credited to the bond account separate and apart

from the funds for the payment of principal or interest on any other series of bonds, and separate and apart from

any non-bond levy revenues of the District, as hereinafter defined.

The bond account shall be monitored by the District’s Business Manager. Unless otherwise provided by District

resolutions, agreements entered into in connection with the issuance of bonds, or any tax certificate with respect

thereto, the Business Manager shall maintain records and shall prepare regular, periodic statements regarding the

investments, deposits, and disbursements involving funds held in the bond account.

Definitions

“Bond Guaranty Programs” mean collectively the programs of the State of Idaho pursuant to the Idaho School

Bond Guaranty Act, Title 33, Chapter 53, Idaho Code, and the School District Bond Credit Enhancement Program

under Title 57, Chapter 7, Idaho Code.

“Bond Levy Subsidy Payments” mean subsidy payments received by the District from the State of Idaho bond levy

equalization fund under Sections 33-906, 33-906A, and 33-906B, Idaho Code or any successor provision.

“Bond Tax Receipts” mean funds derived from the District’s general obligation bond levy under the applicable

Bond Resolution, levied, assessed, certified, extended, and collected by the District or on behalf of the District by

the county or counties annually at the time when and in the manner in which other general taxes of the District are

levied, upon all the taxable property within the limits of the District, in addition to all other authorized taxes and

assessments in the amount specified by Sections 33-802 and 33-802A, Idaho Code.

“Investment Securities” means such investments as shall be legal investments for such funds under Idaho law as

then in effect.

“Non-Bond Levy Revenues” mean revenues, including but not limited to, property tax revenues and operating levy

property tax revenues, State funds in replacement of property tax revenues, sales tax revenue sharing funds, or

other funds collected on the District’s behalf by the Counties and then disbursed to the District.

Deposit of Funds into Bond Account; Payment of Bonds

There shall be deposited into the applicable subaccount under the bond account no later than five days of receipt:

1. Bond tax receipts;

2. Bond levy subsidy payments; and

3. Such other funds as the District shall designate as irrevocably available to pay principal and interest on the applicable bonds.

These deposits shall be in amounts sufficient to meet the payments of principal and interest on bonds as the same

mature, as provided in the applicable bond resolution. Non-bond levy revenues shall not be deposited into the

bond account.

The District shall pay debt service on bonds from funds held in the bond account pursuant to the provisions of the

applicable bond resolution, but nothing herein contained shall be construed to prevent the District from paying the

interest on or the principal of bonds from any other funds in its hands and available for that purpose.

Investment of Funds in Bond Account

Moneys held in the bond account and subaccounts thereunder shall be invested and reinvested by the District to

the fullest extent practicable in investment securities which mature not later than such times as shall be necessary

to provide moneys when needed for payment of debt service on bonds. All investment earnings shall be retained

in the bond account.

For purposes of investment of funds in the bond account, the District may consider earnings on funds held in the

bond account which are not expected to be used to pay principal and interest on bonds to be held for the purpose

of paying principal and interest on other bonds issued or to be issued by the District or to be used for any lawful

purpose of the District.

State Guaranty Programs

In the event bonds are guaranteed by the Bond Guaranty Programs, and pursuant to the applicable bond

resolution, the District shall transfer moneys from the bond account to the paying agent sufficient for the

scheduled debt service payment on the bonds at least 15 days before each principal or interest payment date for

the bonds, pursuant to the provisions of the applicable bond resolution.

Use of Funds in Bond Account

The District shall use the funds held in the bond account for the timely payment of principal (including any

redemption premium) and interest on the District’s bonds, and related expenses, and for no other purposes. Upon

payment in full of the bonds, remaining funds in the bond account may be applied by the District in the manner

provided by law.

Legal Reference: Title 33 Chapter 53 Idaho School Bond Guaranty Act

I.C. § 33-802 et. seq. Budget and Tax Levy

I.C. § 33-906 et. seq. School Funds

I.C. § 57-728 Credit Enhancement Program for School District Bonds

I.C. § 34-913 Disclosures in Elections to Authorize Bonded Indebtedness

Policy History:

Adopted on: 01/24/2017

Revised on: 01/25/2022