7-7-4425. Use of revenue from undertaking.
222 words·~1 min read·
/mt/title-7/chapter-7/part-44/7-7-4425·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
7-7-4425 . Use of revenue from undertaking.
(1)Any municipality issuing bonds pursuant to this part for the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of any undertaking shall have the right to appropriate, apply, or extend the revenue of such undertaking for the following purposes:
(a)to pay when due all bonds and interest thereon for the payment of which such revenue is or shall have been pledged, charged, or otherwise encumbered, including reserves therefor;
(b)to provide for all expenses of operation and maintenance of such undertaking, including reserves therefor;
(c)to pay and discharge notes, bonds, or other obligations and interest thereon not issued under this part, for the payment of which the revenue of such undertaking is or shall have been pledged, charged, or encumbered;
(d)to pay and discharge notes, bonds, or other obligations and interest thereon which do not constitute a lien, charge, or encumbrance on the revenue of such undertaking and which shall have been issued for the purpose of financing the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of such undertaking; and
(e)to provide a reserve for betterments to such undertaking.
(2)Unless and until adequate provision has been made for the foregoing purposes, no municipality shall have the right to transfer the revenue of such undertaking to its general fund.