Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

In the event that proceeds of bonds issued under La. Rev. Stat. 33:4097 shall have been used by the sewerage and water board to pay for the portion of the cost of the drainage work which is to be assessed against the owners of property in a defined drainage area, the sewerage and water board shall pay over to the Board of Liquidation, City Debt, when and as received, the funds derived from the sale of drainage certificates secured by the assessments in the said defined drainage area, the one lump sum payments of assessments received from owners of property in said defined drainage area under La. Rev. Stat. 33:4110, if drainage certificates were not sold, the annual payments on the assessments within the said drainage area, and proceeds of the sale of drainage liens upon property which are not dedicated to the payment of drainage certificates, until a sufficient amount shall have been paid over to said Board of Liquidation, City Debt, to provide for the retirement and redemption in principal and interest of an amount of the bonds issued under La. Rev. Stat. 33:4097 equal to the bond proceeds which were used to pay for the property owners’ portion of the cost of the drainage work in the said defined drainage area.  Funds derived from the sale of drainage certificates and lump sum payments of assessments under La. Rev. Stat. 33:4110, to the extent not required to be paid over to the Board of Liquidation, City Debt, by the preceding sentence, shall be dedicated by the sewerage and water board of New Orleans to the payment of the work, in connection with which the issue was sold and said assessments were paid, and pending their disbursement such funds derived from the sale of each issue and such related lump sum payments of assessments shall be kept separate and distinct from all other funds derived from the sale of any other issues of said drainage certificates and related lump sum payments of assessments and shall be deposited in a separate account in a bank to be designated by the sewerage and water board of New Orleans within the state of Louisiana, and whatever interest shall be earned thereon shall be credited to said account.  Each said special account shall be secured to the full amount thereof by collateral to be approved by the sewerage and water board of New Orleans.  Against each account shall be charged the amounts paid out for the work changes payable therefrom.

Added by Acts 1976, No. 167, §1.