(a) This subsection applies only to cities. The gross revenues of parking facilities shall be kept in a fund or funds separate from all other funds of the city, and shall be deposited in the fund or funds daily, as received. As long as any revenue bonds are outstanding, revenues deposited in the fund or funds may be used only to:

1. (1) pay the cost of operation, maintenance, and repair of the parking facilities of the city;
2. (2) pay the principal of and interest on revenue bonds issued or to be issued for the facilities;
3. (3) provide a reserve for the revenue bonds as a margin of safety and protection against default and retirement before maturity;
4. (4) pay the cost of repairs, replacements, and additions to, or remodeling of, the parking facilities; or

5. (5) finance the construction of additional parking facilities;

   in the manner and with the priorities and restrictions as to application of the revenues provided in the ordinance or ordinances authorizing the issuance of the revenue bonds.

(b) This subsection and subsection (c) apply only to towns. The gross revenues of each:

1. (1) parking facility financed by the issuance of revenue bonds; and

2. (2) extension, addition, or improvement to, or replacement of, such a facility;

   shall be deposited in a special fund designated as "parking fund─project __________". The revenues derived from the facility shall be deposited in the special fund daily, as received.

(c) The revenues deposited under subsection (b) shall be used in the following manner:

1. (1) The cost of operation, maintenance, and repair of the parking facility shall be paid first, and a sufficient amount to pay that cost in the next month shall then be reserved.

2. (2) The money remaining in the parking fund after compliance with subdivision (1) comprises the net revenues of the facility. On the first day of each month, the net revenues shall be transferred into a special fund designated as "parking sinking fund─project ______" until this fund contains an amount sufficient to pay the interest on and principal of the outstanding revenue bonds payable from the fund for the next twelve (12) months. The money in the parking sinking fund may be used only for the interest on and principal of the revenue bonds payable from the fund.

   [Pre-Local Government Recodification Citations: 19-5-11-10 part; 19-5-13-12 part.]

   As added by Acts 1981, P.L.309, SEC.84.