7-3-1322. Investment of sinking funds. (1) The sinking funds of the municipality shall be in charge of a sinking fund board consisting of the president, the director of finance, and the director of law. The president shall be the chairman and the director of finance, the secretary of the board. By and with consent of the commission, the sinking fund board shall invest the sinking fund in bonds or certificates of indebtedness of the United States, state bonds or certificates of indebtedness of Montana or any other state of the United States, bonds of the municipality, registered warrants on the treasury of such municipality, bonds of any city in Montana, and in such county or school bonds of Montana as may be approved by the commission.
     (2) In case the sinking fund is invested in bonds of the municipality, such bonds shall not be canceled before maturity but shall be held by the sinking fund board and the interest thereon paid over and applied to the increase of the sinking fund. Whenever the principal of any of the bonds of the municipality shall become due, the sinking fund board shall, with the consent of the commission, dispose of such of the bonds belonging to the sinking fund as, with the money on hand belonging to the sinking fund, shall be necessary to pay the bonds so becoming due.

     History: En. Sec. 74, Ch. 121, L. 1923; re-en. Sec. 5520.75, R.C.M. 1935; R.C.M. 1947, 11-3515.