Section 99117.

All accrued interest and premiums received on the sale of bonds shall be placed in the fund to be used for the payment of principal of and interest on the bonds and the remainder of the proceeds of the bonds shall be placed in the treasury to the credit of the proper benefit fund and applied exclusively to the purposes for which the debt was incurred. However, when those purposes have been accomplished any moneys remaining in the benefit fund shall be (a)  transferred to the fund to be used for the payment of principal of and interest on the bonds, or (b)  placed in a fund to be used for the purchase of outstanding bonds of the benefit district from time to time in the open market at those prices and in the manner, either at public or private sale or otherwise, as the legislative body or board of supervisors may determine. Bonds so purchased shall be canceled immediately.

(Amended by Stats. 1981, Ch. 714, Sec. 396.)