204.420. Board may authorize establishment of various accounts by resolution--may limit issuance of additional bonds and limit rights of holders of such bonds.

MISSOURI STATUTES AND CODES

204.420. Board may authorize establishment of various accounts by resolution--may limit issuance of additional bonds and limit rights of holders of such bonds.

Board may authorize establishment of various accounts byresolution--may limit issuance of additional bonds and limitrights of holders of such bonds.

204.420. 1. The resolution of the board of trustees of thecommon sewer district authorizing the issuance of revenue bondsunder the authority of sections 204.250 to 204.470 may providethat periodic allocations of the revenues to be derived from theoperation of the system for the benefit of which the bonds areissued shall be made into such accounts, separate and apart fromany other accounts of the district, as shall be deemed to beadvisable to assure the proper operation and maintenance of thesystem and the prompt payment of the indebtedness chargeable tothe revenues of the system. The accounts may include, but shallnot be limited to:

(1) An account for the purpose of providing funds for theoperation and maintenance of the system;

(2) An account to provide funds for the payment of thebonds as to principal and interest as they come due;

(3) An account to provide an adequate reserve fordepreciation, to be expended for replacements of the system;

(4) An account for the accumulation of a reserve to assurethe prompt payment of the bonds and the interest thereon wheneverand to the extent that other funds are not available for thepurpose;

(5) An account to provide funds for contingent expenses inthe operation of the system;

(6) An account to provide for the accumulation of funds forthe construction of extensions and improvements to the system;and

(7) Such other accounts as may be desirable in the judgmentof the board of trustees.

2. The resolution may also establish such limitations asmay be expedient upon the issuance of additional bonds, payablefrom the revenues of the system, or upon the rights of theholders of such additional bonds. Such resolution may includeother agreements with the holders of the bonds or covenants orrestrictions necessary or desirable to safeguard the interests ofthe bondholder and to secure the payment of the bonds and theinterest thereon.