Sec. 28. (a) All proceeds from the sale of bonds under section 27 of this chapter shall be kept as a separate and specific fund to pay the cost of land, rights-of-way, and other property acquired and for construction under the resolution, including all costs and expenses incurred in connection with the project. The proceeds may not be used for any other purpose. The proceeds shall be deposited at interest with the depository or depositories of other public funds of the municipality, and all interest collected on them belongs to the fund. Any surplus of funds remaining out of the proceeds after all expenses are paid shall be paid into and becomes a part of the sanitary district bond fund.

     (b) Money derived from sources other than the sale of bonds, such as state or federal reimbursement grants, matching funds, or other contributions, including money derived from a project financed from bond monies, shall be deposited in:

(1) the sanitary district bond fund;

(2) the sanitary maintenance and general expense fund; or

(3) a separate fund established by the board for extensions, additions, and improvements to the sewage works of the district.

The money may be expended as other money is expended by the board.

[Pre-Local Government Recodification Citations: 19-2-14-20; 19-2-20-9.]

As added by Acts 1981, P.L.309, SEC.98.