Sec. 28. (a) To adequately secure the payment of the bonds, notes, or other evidences of indebtedness, including interest, payable from revenues, the board and the board's officers, agents, and employees shall do the following:

(1) Pay punctually the principal of every bond, note, or other evidence of indebtedness, including interest:

(A) on the date;

(B) at the place;

(C) in the manner; and

(D) out of the money mentioned in the bonds, notes, other evidences of indebtedness, and coupons;

in accordance with the resolution authorizing issuance.

(2) Preserve and protect the security of the bonds, notes, or other evidence of indebtedness and the rights of the holders, and warrant and defend those rights against all claims and demands of all persons.

(3) Hold in trust the revenues pledged to the payment of the bonds, notes, or other evidence of indebtedness for the benefit of the holders and apply those revenues:

(A) only as provided by the resolution authorizing issuance; or

(B) if the resolution is modified in the manner provided in:

(i) the bonds, notes, or other evidence of indebtedness; or

(ii) this chapter;

only as provided in the resolution as modified.

(4) Keep proper books of record and accounts of the water facilities, separate from all other records and accounts:

(A) in which complete and correct entries shall be made of all transactions relating to the water facilities and any part of the water facilities for which the revenues are pledged; and

(B) that, together with all other books and papers of the board, are at all times subject to the inspection of the holder of the bonds, notes, or other evidences of indebtedness then outstanding or a representative of the holder authorized in writing.

(b) This section does not require the board to expend money other than revenues received or receivable from the water facilities.

[Pre-1995 Recodification Citation: 13-3-4-11.]

As added by P.L.1-1995, SEC.26.