A. The board shall cause to be assessed and levied each year on the taxable property of the county, in addition to the levy authorized for other purposes, an amount sufficient to pay the interest on outstanding bonds and such proportion of the principal that at the end of five years the amount raised from the levy shall equal at least twenty percent of the amount of bonds issued, and at the end of nine years shall equal at least forty percent of the amount, and at and before the date of maturity of the bonds shall equal the whole amount of the principal and interest.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

B. The money raised by the levy shall be known as the debt service fund and shall be used only for payment of bonds and interest coupons. The treasurer shall keep in his books a separate account thereof, which shall at all times show the exact condition of the debt service fund.

C. If there is not at any time sufficient monies in the fund to pay the interest due on the bonds, the board may transfer a sufficient sum from the general fund to the debt service fund for such purpose, and any excess in the fund over the amount required for principal and interest on the bonds may be transferred to the general fund.

D. All bonds, heretofore and hereafter issued, are secured by a lien on all revenues received pursuant to the tax levy. The lien arises automatically without the need for any action or authorization by the county or the board. The lien is valid and binding from the time of the issuance of the bonds. The revenues received pursuant to the levy of the tax are immediately subject to the lien. The lien attaches immediately to the revenues and is effective, binding and enforceable against the county, the county’s successors, transferees and creditors and all other parties asserting rights in the revenues, irrespective of whether the parties have notice of the lien, without the need for any physical delivery, recordation, filing or further act.