(A) The proceeds from the sale of each issue of obligations and from collection of special assessments levied and other moneys appropriated for each improvement to be financed wholly or partly from the proceeds shall be credited to a separate construction fund which shall be used solely to defray expenses of the improvements and payment of principal and interest due upon the obligations prior to completion and payment of all costs of the improvements so financed.
(B) Any balance of the proceeds of bonds remaining therein may be used to pay the cost, in whole or in part, of any other improvement instituted pursuant to this chapter.
(C) A separate account shall be maintained in the construction fund to record expenditures for each improvement, and when the total cost thereof has been paid, all subsequent collections of special assessments levied for the improvements shall be credited and paid into the Debt Service Fund for the obligations issued to finance the improvement, as provided in M.S. § 475.61, as it may be amended from time to time.
(D) Any taxes levied for improvements financed by an issue of obligations shall be credited directly to the Debt Service Fund.
(Prior Code, § 202.19)