§ 36-9-32-5 — Public improvements connected to an existing system; payment of bonds; letting of contracts; ownership or operation of improvements

(a) If a public improvement financed under this
chapter is connected to a system, the public improvement becomes a
part of the existing system. Any person entering into a loan agreement
with a municipality under this chapter shall pay rates and charges or
fees for the use of that system in the same manner any other member
of the general public is required to pay such rates and charges or fees.
The municipality may not establish rates and charges or fees for the use
of that system that include a revenue requirement for payment of
principal and interest on bonds issued under this chapter. Bonds issued
under this chapter are payable solely from revenues derived from notes
or other secured or unsecured obligations of any person entering into
a loan agreement with a municipality under this chapter, or from other
sources of principal and interest payments under this chapter, and not
from revenues of the system.
(b) Contracts for public improvements under this chapter shall be
let in accordance with statutes relating to public works and public
purchases.
(c) Public improvements may be financed under this chapter even
if the municipality building or acquiring those improvements will not
own or operate those improvements, so long as the public
improvements will be owned or operated by a political subdivision.

Legislative History

As added by P.L.23-1984, SEC.18.