Nevada § 333A.091 - Proceeds of refunding obligations in escrow or trust: Investment; security; sufficient amount; purchaser not responsible for application of proceeds

§ 333A.091. Proceeds of refunding obligations in escrow or trust: Investment; security; sufficient amount; purchaser not responsible for application of proceeds

1. Any escrow or trust into which the proceeds of refunding obligations are placed

pursuant to NRS 333A.0908 must not necessarily be limited to proceeds of refunding obligations but may include

other money available for its purpose. 2. Any proceeds of refunding obligations placed in escrow or trust, pending such use,

may be invested or reinvested in federal securities, and in the case of an escrow

or trust for the refunding of outstanding obligations issued in accordance with NRS 333A.0906 to 333A.0916 , inclusive, in other securities issued by the Federal Government if the resolution

by the Board authorizing the issuance of such outstanding state securities or any

trust indenture or other proceedings appertaining thereto expressly allows any such

investment or reinvestment in such securities issued by the Federal Government other

than federal securities. 3. A trust bank accounting for federal securities and other securities issued by the

Federal Government in such escrow or trust may place the securities for safekeeping

wholly or in part in any trust bank or trust banks within or without or both within

and without this State. 4. A trust bank shall continuously secure any money placed in escrow or trust and

not so invested or reinvested in federal securities and other securities issued by

the Federal Government by a pledge in any trust bank or trust banks within or without

or both within and without the State of federal securities in an amount at all times

at least equal to the total uninvested amount of such money accounted for in such

escrow or trust. 5. Such proceeds and investments in escrow or trust, together with any interest or

other gain to be derived from any such investment, must be in an amount at all times

at least sufficient to pay principal, interest, any prior redemption premiums due,

and any charges of the escrow agent or trustee and any other incidental expenses payable

therefrom, except to the extent provision may have been previously otherwise made

therefor, as such obligations become due at their respective maturities or due at

designated prior redemption date or dates in connection with which the using agency

has exercised or is obligated to exercise a prior redemption option on behalf of the

State. 6. The computations made in determining such sufficiency must be verified by a certified

public accountant certified or licensed to practice in this State or in any other

state. 7. Any purchaser of any refunding obligation issued pursuant to NRS 333A.0906 to 333A.0916 , inclusive, is not responsible for the application of the proceeds of the refunding

obligation by the State, the Board, the using agency or any of the officers, agents

or employees of the State. 8. As used in this section, “ federal securities ” means bills, notes, certificates of indebtedness, bonds or other similar securities

which are direct obligations of the United States or which are unconditionally guaranteed

as to payment, both of principal and of interest, by the United States.