The ordinance authorizing the revenue bonds must also:

1. (1) establish a sinking fund for the payment of the bonds, the interest on the bonds, and the charges of banks or trust companies for making payment of the bonds or interest; and

2. (2) pledge the revenues of the facilities, after the payment of the reasonable expense of operation, repair, and maintenance, into the sinking fund at intervals to be determined by the ordinance, for:

   1. (A) the payment of interest on the bonds as it falls due;
   2. (B) the payment of the bonds as they fall due; and

   3. (C) the accumulation of reasonable reserves in the sinking fund as a margin for safety and a protection against default, and for the payment of premiums upon bonds retired by call or purchase.

      The required payments constitute a first charge upon the revenues of the facilities, after the payment of the reasonable expense of operation, repair, and maintenance.

      [Pre-Local Government Recodification Citation: 19-2-1-15.]

      As added by Acts 1981, P.L.309, SEC.106.