ORS 545.373: Proceeds of sale; special fund; uses of moneys.

All proceeds from the sale of property owned by the district and subject to the lien of outstanding bonds shall be held in a special fund to be applied: (1) First, to the construction or reconstruction of the drainage or other works of the district that are required by the United States as one of the conditions for the purchase of the property by the United States; and (2) Second, as may be agreed between the district and the holders of the bonds, except that when the proceeds are applied to bonded indebtedness, the application shall be made to payment on the outstanding bonds as their interests may appear. [Formerly 545.150]