§ 15-7-408 — Use of surplus water or sewage funds

The board of public utilities shall use any surplus funds
arising from the sale of water or sewage services for the
purchase and cancellation of any bonds issued to pay the
purchase price of the water or sewer plants or the cost of their
construction, extension and enlargement. The board shall not
pay for any bonds any sum greater than par, plus a premium of
not to exceed fifty percent (50%) of the face value on all
unearned interest coupons attached to any bond purchased, or pay
more than the actual market price of the bonds at the time of
purchasing them. Any surplus after the purchase of bonds shall
be paid into the general fund of the city or town.