GA Code § 20-2-438 (2021)
2021 Georgia Code|Title 20 - Education|Chapter 2 - Elementary and Secondary Education|Article 9 - Local Public School Finances|Part 3 - Bond Issues|Subpart 1 - County, District, and Joint High School Bonds|§ 20-2-438. Local and Consolidated School District Bonds - Transfer to County Board; Disbursing Funds to Bondholders; Recommending Tax Levy

 In any local or consolidated school district in any county where there is an outstanding bonded indebtedness created for the purpose of building schoolhouses or equipping schoolhouses, the county board of education shall, on February 1, 1946, become the trustee of all funds which shall have been or may be collected from taxes or received from other sources for the purpose of retiring the principal and interest on the bonds or for creating a sinking fund for such purpose. The county board is charged with the duty of disbursing such funds to the bondholders in accordance with the terms under which the bonds were issued and the duty of constructing any buildings or acquiring any building sites or any equipment for which the bonds were issued. The county board shall also annually, within the time required by law or the terms of the bond issue, recommend to the fiscal authorities of the county the levy upon the property subject to taxation in the district originally voting the bonds of such tax as may be necessary to provide a sinking fund for the retirement of the bonds and for paying the principal thereof and the interest thereon in accordance with the terms under which the bonds were issued, this to be in addition to the general tax for the maintenance of the schools of the districts.   (Ga. L. 1919, p. 288, § 144; Ga. L. 1925, p. 251, § 1; Code 1933, § 32-1402; Ga. L. 1946, p. 206, § 21.)   OPINIONS OF THE ATTORNEY GENERAL   Bonds may be validated after 1945 Constitution.   - If a local school district voted bonds prior to the adoption of the 1945 Constitution, the bonds may be validated thereafter and a bond tax levied. 1945-47 Op. Att'y Gen. p. 160.    Local board must levy only upon property that was subject to taxation  in former district to pay the bonded indebtedness of the district and not upon the county as a whole. 1954-56 Op. Att'y Gen. p. 217.   It is the general rule that when one school system having a bonded indebtedness is merged with another school system, taxes levied for the purpose of paying off the bonded indebtedness may be levied only on property located within the territorial limits of the school system issuing the bonds as such territorial limits existed at the time the bonds were originally voted and issued. 1965-66 Op. Att'y Gen. No. 66-11.   Upon bonds' retirement, surplus in retirement account transferred to general fund account.   - Upon retirement of school bonds, the surplus remaining in the debt retirement account becomes a part of the general school fund and is properly transferred to the general fund account. 1965-66 Op. Att'y Gen. No. 65-116.   Fund legally usable for other legitimate purposes.   - Funds raised by taxation to pay the principal and interest on bonds should be set aside by the officials of the political division and kept separate from other funds to be used for the sole purpose of paying the indebtedness and none other until the debts against the bonds have been fully liquidated, but neither the constitution nor this section contemplates that after the payment of the debts against the specific fund that then the fund could not be legally used for other legitimate purposes for which the authorities could levy a tax. 1945-47 Op. Att'y Gen. p. 163.   Use of insurance funds.   - County board of education may not use funds collected by a local school district from insurance on a destroyed school building to carry out a contract with an independent system for the transportation and education of children of the former school district but may use maintenance tax funds for that purpose. 1945-47 Op. Att'y Gen. p. 186.   RESEARCH REFERENCES   C.J.S.   - 78A C.J.S., Schools and School Districts, §§ 557 et seq., 756 et seq., 787.