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

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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 <br>amount of any secured debt or charge subject to which a waterworks is acquired, and <br>shall set aside to that fund, from the balance of the income and revenues of the <br>waterworks remaining after setting aside the funds for payment of principal and interest <br>of bonds, a sum sufficient to comply with the requirements of the instrument creating the <br>lien or securing the charge. If the instrument does not make any provision therefor, the <br>resolution or ordinance shall fix and determine the amount that shall be set aside for <br>interest on the secured debt or charge and a fixed amount to pay the principal thereof at <br>maturity. Any surplus after satisfying the secured debt or charge may be used for the <br>redemption of the principal and interest of bonds. Bonds may be issued pursuant to the <br>provisions of this chapter in exchange for or in satisfaction of such secured debt or <br>charge, or may be sold and the proceeds applied in payment of the secured debt or charge <br>at or before maturity. Effective: June 17, 1954 <br>History: Created 1954 Ky. Acts ch. 18, sec. 19, effective June 17, 1954.