85-7-2166. Liability of county treasurers. (1) The county treasurer to whom district funds or securities are entrusted is liable on the treasurer's bond for the safekeeping of the funds and securities. The funds must be properly divided into the respective funds for which district taxes or assessments were levied, including a United States contract fund, bond principal and interest fund, sinking fund to redeem bonds, maintenance fund, construction fund, and general fund. The construction fund must be available for the payment of the purchase price of all works, water rights, or other property purchased by or for the district and all expenses incident to those purchases, as well as for the payment of the cost of construction of works, including cost of engineering, superintendence, and other expenses incident to construction. All warrants issued for preliminary and organization expenses and all administrative expenses must be paid from the general fund.
(2) The county treasurer is authorized to receive, in lieu of cash, matured bonds, matured coupons, or interest coupons maturing within the year in payment of any tax or assessment levied for the payment of bonds or interest on bonds. The county treasurer at any time, upon the order of the board of commissioners of the district, shall turn over to the board any bonds or securities held by the treasurer and required to be delivered to the board in accordance with the provisions of this chapter. All bonds and interest coupons received or otherwise paid and all bonds of the district upon the payment must be immediately canceled and retained by the county treasurer as vouchers.