The commission shall provide, in the proceedings authorizing the issuance of each series of bonds, for the paying into the appropriate debt service funds at stated intervals money from other revenues pledged to repay the bonds or all money then remaining in the income fund, after paying all cost of operation, maintenance and repairs of the works. All money in each debt service fund shall be pledged for the payment of and used only for the purpose of paying:

A. interest upon the bonds as such interest falls due;

B. the necessary fiscal agency charges for paying bonds and interest;

C. the principal of the bonds as they fall due; and

D. any premiums upon bonds retired by call or purchase as herein provided.

Prior to the issuance of the bonds of each series, the commission may provide by resolution for using the debt service fund or any part thereof in the purchase of any of the outstanding bonds payable therefrom at the market price thereof. The money in each debt service fund, less such reserve as may be provided for in the resolution authorizing the bonds for the payment of interest, principal, or both, if not used within a reasonable time for the purchase of bonds as provided in this section, shall be applied to the redemption of bonds then subject to redemption at the redemption price then applicable.

History: 1953 Comp., § 75-34-18, enacted by Laws 1955, ch. 266, § 10; 1997, ch. 241, § 11; 1997, ch. 246, § 11.

The 1997 amendment, effective June 20, 1997, added the section heading, inserted "money from other revenues pledged to repay the bonds or" in the introductory paragraph, deleted "but not exceeding the price, if any, at which the same shall, at the next interest date, be payable or redeemable, and all bonds redeemed or purchased shall forthwith be cancelled and no bonds shall be issued in place thereof" at the end of the first sentence of the second paragraph, inserted "or both" and "in this", and deleted "for cancellation" following "purchase of bonds" in the last sentence of that paragraph, substituted "debt service" for "sinking" throughout the section, and made minor stylistic changes.

Laws 1997, ch. 241, § 11 and Laws 1997, ch. 246, § 11, both effective June 20, 1997, enacted identical amendments to this section. The section was set out as amended by Laws 1997, ch. 246, § 11. See 12-1-8 NMSA 1978.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 64 Am. Jur. 2d Public Securities and Obligations § 58.

94 C.J.S. Waters § 243.