§ 45:1143 — Bonds; sinking fund; covenants

Any resolution authorizing the issuance of bonds under this Part shall provide for the creation of a sinking fund into which shall be paid from the pledged revenues of the utility, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining the utility, sums sufficient to pay principal of and interest on such bonds, and to create such reserve for contingencies as may be provided in such resolution. The moneys in the sinking fund may be applied to the payment of interest on and principal of the bonds or to the purchase or retirement of the bonds prior to maturity in such manner as may be provided in the resolution.
The resolution authorizing the issuance of bonds may contain such covenants with the future holder of the bonds as to the management and operation of the utility, the imposition and collection of fees and charges for the products, commodities or services furnished thereby, the disposition of fees and revenues, the issuance of future bonds and the creation of future liens and encumbrances against the utility and the revenues thereof, the carrying of insurance on the properties constituting such utility, the disposition of the proceeds of the insurance, and other pertinent matters, as may be deemed necessary by the governing body to assure the marketability of the bonds, provided these covenants are not inconsistent with the provisions of this Part.