§ 36-9-23-17 — Sources of funds

(a) This chapter does not authorize a
municipality to make any contract or to incur any obligation that is not
payable solely from money provided under this chapter.
(b) Money for the costs of the sewage works or any improvement of
the works may be provided only:
(1) by the issuance of revenue bonds of the municipality;
(2) from a cumulative fund established by the municipality for
that purpose; or
(3) by grant or loan from the federal government or any of its
agencies.
(c) A municipality obtaining a loan from the federal government or
a federal agency may issue its obligations under this chapter to the
federal government or federal agency to evidence its indebtedness. The
obligations are not a corporate indebtedness of the municipality, are
payable solely from the revenues of the sewage works, and may be
made of equal priority or subordinate to any other revenue bonds issued
or to be issued under this chapter.
(d) Notwithstanding subsection (b), money to finance the
construction of any of the self-liquidating works authorized by this
chapter may be obtained from any state or federal agency.
(e) Notwithstanding subsection (b), any industrial cost recovery
received by the municipality and required to be paid by industrial users
under the terms of a federal grant are not considered revenues under
this chapter. The municipal legislative body may use industrial cost
recovery grants as provided by the terms of federal grants.
[Pre-Local Government Recodification Citations: 19-2-5-11
part; 19-2-5-12 part; 19-2-5-20 part.]
As added by Acts 1981, P.L.309, SEC.96.