(a) A municipality or joint agency may fix, charge and collect rents, rates, fees and charges for electric power and energy and other services, facilities and commodities sold, furnished or supplied through the facilities of its electric system or its interests in any project. For so long as any bonds of a municipality or joint agency issued under this chapter are outstanding and unpaid, the rents, fees and charges shall be so fixed as to provide revenues sufficient to pay:

1. (1) all costs of and charges and expenses in connection with the proper operation and maintenance of the municipality's or joint agency's electric system;
2. (2) the municipality's or joint agency's interest in any project;
3. (3) all necessary repairs, replacements or renewals of the municipality's or joint agency's interest in any project;
4. (4) when due (whether at maturity, upon acceleration, or by sinking fund requirements), the principal, premium, if any, and interest on all bonds payable from said revenues;
5. (5) to create and maintain reserves as may be required by any resolution or trust agreement authorizing and securing bonds;
6. (6) when due (whether at maturity, upon acceleration, or by sinking fund requirements), the principal, premium, if any, and interest on all general obligation bonds issued to finance additions and improvements to its electric system;
7. (7) any and all amounts which the municipality may be obligated to pay from these revenues by law or contract; and
8. (8) any additional amounts which must be realized in order to meet the requirements of any rate covenant imposed by any resolution or trust agreement authorizing and securing bonds.

(b) Any pledge made by a municipality or joint agency pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues, securities, and other moneys so pledged and then held or thereafter received by the municipality or joint agency or any fiduciary shall immediately be subject to the lien of the pledge without any physical delivery of the lien of the pledge or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the municipality or joint agency without regard to whether such parties have notice of the lien of the pledge. The resolution or trust agreement or any financing statement, continuation statement or other instrument by which a pledge is created need not be filed or recorded in any manner.

As added by Acts 1980, P.L.68, SEC.1. Amended by P.L.136-2018, SEC.58.