106.190 Setting aside of fund equal to amount of secured debt or charge. - Kentucky Statutes

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106.190 Setting aside of fund equal to amount of secured debt or charge. The resolutions or ordinances required by this chapter 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
resolution or 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 this chapter 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: June 17, 1954
History: Created 1954 Ky. Acts ch. 18, sec. 19, effective June 17, 1954.