96.510 Payment of encumbrance existing at time of acquisition of waterworks. - Kentucky Statutes

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96.510 Payment of encumbrance existing at time of acquisition of waterworks. The ordinances required by KRS 96.370 and 96.430 may set apart a fund equal to the
amount of any secured debt or charge subject to which a waterworks is acquired, and
shall set aside to that fund, from the balance of the income and revenues of the
waterworks remaining after setting aside the funds for payment of principal and interest
of bonds, a sum sufficient to comply with the requirements of the instrument creating the
lien or securing the charge. If the instrument does not make any provision therefor, the
ordinance shall fix and determine the amount that shall be set aside for interest on the
secured debt or charge and a fixed amount to pay the principal thereof at maturity. Any
surplus after satisfying the secured debt or charge may be used for the redemption of the
principal and interest of bonds. Bonds may be issued pursuant to the provisions of KRS
96.350 to 96.510 in exchange for or in satisfaction of such secured debt or charge, or may
be sold and the proceeds applied in payment of the secured debt or charge at or before
maturity. Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 2741L-18, 2741L-40.