§ 8-1.5-4-10 — Secured debt or charge

Indiana § 8-1.5-4-10

• Jurisdiction: Indiana
• Art. 1.5: MUNICIPAL UTILITIES
• Ch. 4: Department of Waterworks in Certain Municipalities

Text

(a) The board may authorize and set apart
bonds equal to the amount of any secured debt or charge subject to
which a waterworks may be purchased or acquired in any proceeding,
and shall set aside for interest and sinking fund from the income and
revenue of the waterworks a sum sufficient to comply with the
requirements of the instrument creating the lien or securing the charge.
(b) If the instrument does not make any provision, the board shall
set aside into the secured-debt account from month to month for
interest on the secured debt or charge an amount sufficient to provide
for the payment of the interest on the secured debt or charge, and at the
option of the board either an annual amount sufficient to retire the
secured debt or charge at maturity or bonds issued under this chapter
equal to the secured debt or charge. Any surplus after satisfying the
secured debt or charge may be transferred to the bond and interest
redemption account.
(c) Waterworks bonds set aside for a debt may, from time to time,
be issued in an amount sufficient with the amount then in the sinking
fund to pay and retire the debt or any part thereof. The bonds may not
be issued at less than par value in exchange for, or satisfaction of, the
secured debt or charge, or may be sold in the manner provided by this
chapter, and the proceeds applied in payment of the same at maturity
or before maturity by agreement with the holder. A municipality
acquiring a waterworks does not assume any liability for the payment
of a secured debt or charge, other than the obligation to apply the
revenues in the manner prescribed in the ordinance.
As added by Acts 1982, P.L.74, SEC.1.