(1) The district treasurer or the county treasurer of the principal county, as defined in ORS § 198.705, if designated in the bonds, shall keep a ‘Bond Fund,’ a ‘United States or the State of Oregon (as appropriate) Contract Fund’ or a ‘Bond and United States or the State of Oregon (as appropriate) Contract Fund.’ All money arising from the sale of refunding bonds and from assessments and levies shall be deposited in the appropriate fund until there is sufficient money in the fund to meet the next installment of principal and interest upon bonds of the district and to meet all payments due to the United States or the State of Oregon for construction and other purposes. From the appropriate fund the district treasurer or the county treasurer shall pay money due as principal and interest on bonds as they mature and the bonds and coupons are presented and shall make payments to the United States or the State of Oregon when due.

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(2) Money received from the sale of bonds and otherwise for construction or acquisition of works by the district shall be deposited into a ‘Construction Fund.’

(3) All other money received by the district shall be deposited into a fund known as the ‘General Fund,’ from which shall be defrayed all obligations of the district other than those described in this section.

(4) Each fund listed in subsection (1) of this section shall be used for payment of the obligations of the district that are payable from that fund in the order of the priority of the creation of the obligations. [Formerly 545.212]