§ 36-9-30-18 — Revenue bonds; ordinance authorizing bond

The ordinance authorizing the revenue
bonds must also:
(1) establish a sinking fund for the payment of the bonds, the
interest on the bonds, and the charges of banks or trust companies
for making payment of the bonds or interest; and
(2) pledge the revenues of the facilities, after the payment of the
reasonable expense of operation, repair, and maintenance, into the
sinking fund at intervals to be determined by the ordinance, for:
(A) the payment of interest on the bonds as it falls due;
(B) the payment of the bonds as they fall due; and
(C) the accumulation of reasonable reserves in the sinking fund
as a margin for safety and a protection against default, and for the
payment of premiums upon bonds retired by call or purchase.
The required payments constitute a first charge upon the revenues of
the facilities, after the payment of the reasonable expense of operation,
repair, and maintenance.
[Pre-Local Government Recodification Citation:
19-2-1-15.]
As added by Acts 1981, P.L.309, SEC.106.