PUBLIC UTILITY BOND FINANCING
374-C:12 Federal Funds; Withholding of Moneys.
I. The state treasurer is hereby authorized to receive from the United States of America or any department or agency thereof any amounts of money as and when appropriated, allocated, granted, turned over or in any way provided for the purposes of this chapter, and said amounts shall be paid to the bank and be available to the bank.
II. Any funds or moneys in the custody or control of the state treasurer whether the same shall become available by reason of any grant, allocation or appropriation by the United States of America or the state or agencies thereof to assist any public utility in payment of its utility bonds owned or held by the bank, or required by the terms of any other law to be paid to holders or owners of utility bonds of a public utility upon failure or default of a public utility to pay the principal of or interest on its utility bonds as and when due and payable, shall, to the extent that any such funds or moneys be applicable with respect to utility bonds of a particular public utility which are then owned or held by the bank and as to which such public utility has failed or defaulted to make payment of principal or interest as and when due, be paid to the bank for deposit in the reserve fund and made available to the bank.
III. To the extent that the state treasurer shall be the custodian at any time of any funds of moneys due or payable to a public utility at any time subsequent to written notice to the state treasurer from the bank to the effect that such public utility has not paid or is in default as to the payment of principal of or interest on any utility bonds of such public utility then held or owned by the bank, the state treasurer shall withhold the payment of such funds or moneys from such public utility until the amount of such principal or interest then due and unpaid has been paid to the bank, or the state treasurer has been advised that arrangements, satisfactory to the bank, have been made for the payment of such principal and interest.
Source. 1979, 498:2. 1981, 315:3, eff. Aug. 16, 1981.