1. (a) At or before the time of issuance of the revenue bonds, the board shall by ordinance create a sinking fund for the payment of the following:

   1. (1) The bonds.
   2. (2) The interest on the bonds.
   3. (3) The charges of banks or trust companies for making payment of the bonds or interest.

2. (b) The board shall set aside and pledge the net revenues of the works remaining after the payment of the reasonable expense of operation, repair, and maintenance of the works for payment of the:

   1. (1) principal of and interest on all bonds payable from the revenues of the works, to the extent necessary for that purpose; and
   2. (2) necessary fiscal agency charges for paying the principal and interest of the bonds.

3. (c) The ordinance may also provide for the accumulation of reasonable reserves in the sinking fund:

   1. (1) as a margin for safety and a protection against default; and

   2. (2) for the payment of premiums upon bonds retired by call or purchase as provided by this article.

      [Pre-1996 Recodification Citation: 13-3-2-20.]

As added by P.L.1-1996, SEC.16.