§ 14-202-118 — Rates, fees, and charges - Disposition - Pledges

(a) (1) A municipality is authorized to fix, charge, and collect rates, fees, and charges for electric power and energy from its electric system. (2) For so long as any bonds are outstanding and unpaid, the rates, fees, and charges shall be fixed so as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its electric system, including its interest in any project, and all necessary repairs, replacements, or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds, including bonds subsequently issued for additional projects or other additions, improvements, and betterments to its electric system, payable from the revenues, to create and maintain reserves as may be required by any ordinance or trust indenture authorizing or securing bonds, and to pay any and all amounts which the municipality may be obligated to pay from electric system revenues by law or contract. (b) Any pledge made by a municipality pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues so pledged and then held or thereafter received by the municipality or any fiduciary on its behalf shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act. The lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the municipality without regard to whether the parties have notice thereof. The ordinance, trust indenture, or other instrument by which a pledge is created need not be filed or recorded in any manner.

Legislative History

Acts 1979, No. 5, § 11; A.S.A. 1947, § 19-5611.