NOTE: §835 eff. until July 1, 2021. See Acts 2018, No. 569.

§835. Sinking fund, covenants, fees

A. Any resolution authorizing the issuance of bonds, notes, or certificates of indebtedness under this Part may provide for the creation of a sinking fund into which shall be paid from the pledged revenues of the public work, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining the public work, sums sufficient to pay the principal of and interest on such bonds, notes, or certificates of indebtedness and to create reserves for contingencies. The monies in the sinking fund may be applied to the payment of the interest on and principal of the bonds, notes, or certificates of indebtedness, or to the purchase of retirement of the bonds, notes, or certificates of indebtedness prior to maturity in such manner as may be provided in the resolution.

B. Any resolution authorizing the issuance of the bonds, notes, or certificates of indebtedness under this Part may contain such covenants with the future holder of the bonds, notes or certificates of indebtedness as to the management and operation of the public works, 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, notes, or certificates of indebtedness, and the creation of future liens and encumbrances against the public works and the revenues thereof, the carrying of insurance on the properties constituting such public works, the disposition of the proceeds of the insurance, and other pertinent matters as may be deemed necessary by the governing authority to assure the marketability of the bonds, notes, or certificates of indebtedness, but these covenants shall not be inconsistent with the provisions of this Part.

C. When any political subdivision has issued bonds, notes, or certificates of indebtedness and pledged the revenues of any public work in whole or in part for the payment thereof under this Part, it shall impose and collect fees and charges for the products, commodities, and services furnished by such public work, including those furnished to the political subdivision and its various agencies and departments, in such amounts and at such rates as shall be sufficient at all times to pay the expenses of operating and maintaining the public work; provide a sinking fund sufficient to assure the prompt payment of the principal and interest on the bonds, notes, or certificates of indebtedness as each falls due; provide such a reasonable reserve fund as may be required by the resolution authorizing the bonds, notes, or certificates of indebtedness, and provide an adequate depreciation and contingency fund for those repairs, extensions, and improvements to the public work as may be necessary to assure adequate and efficient service to the public. No board or commission other than the governing authority of the political subdivision shall have authority to fix or supervise the making of such laws and charges.

NOTE: §835 as repealed by Acts 2018, No. 569, eff. July 1, 2021.

§835. Repealed by Acts 2018, No. 569, §2, eff. July 1, 2021.

Amended by Acts 1980, No. 259, §1, eff. July 12, 1980; Acts 2018, No. 569, §2, eff. July 1, 2021.