South Dakota Code § 6-8B-50

Disposition of accrued interest and premiums received on sale
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Any accrued interest and any premium appertaining to a sale of refunding bonds may be applied to the payment of the interest thereon, the principal thereof, or both interest and principal, or may be deposited in a reserve therefor, or may be used to defray incidental costs, or applied to the payment of the bonds being refunded, or deposited in an escrow, established pursuant to §
6-8B-46
, as the governing body determines.

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