§ 15-7-107 — Bonds; tax; interest; sinking fund; redemption

A tax to be fixed by ordinance shall be levied each year to pay
the interest on the bonds and to create a sinking fund for their
redemption. The money that may be on hand at any time belonging
to the sinking fund, until there are bonds redeemable, may be
loaned or invested by the governing body in any public
securities of the state, any subdivision thereof, or of the
United States, and the interest that accrues shall be added to
the sinking fund. If at any time after ten (10) years from the
issue of the bonds the sum in the sinking fund equals or exceeds
five hundred dollars ($500.00), and from time to time thereafter
when it accrues, the city or town treasurer shall publish a
notice in a newspaper in the city or town that, thirty (30) days
from the date of the notice, he will redeem the amount of bonds
then payable, giving their number and giving preference to the
oldest issue. If at the expiration of thirty (30) days the
holder of those bonds fails to present them for payment, the
interest thereon ceases, but the treasurer shall redeem them on
presentation. A copy of the notice shall be sent to the bank
designated as the place of payment of the interest on the bonds.