Sec. 21. At or before the time of issuance of revenue bonds under this chapter, the municipal legislative body, by ordinance, shall:

(1) establish a sinking fund for the payment of:

(A) the principal of and interest on the bonds; and

(B) the charges of banks or trust companies for making payment of the principal or interest; and

(2) pledge the net revenues of the sewage works, after the payment of the reasonable expense of operation, repair, and maintenance of the works, to the payment of the expenses described in subdivision (1).

The ordinance may also provide for the accumulation of reasonable reserves in the sinking fund as a protection against default, and for the payment of premiums on bonds retired by call or purchase under this chapter.

[Pre-Local Government Recodification Citation: 19-2-5-16.]

As added by Acts 1981, P.L.309, SEC.96.