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96.510 Payment of encumbrance existing at time of acquisition of waterworks.

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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 <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>ordinance shall fix and determine the amount that shall be set aside for interest on the <br>secured debt or charge and a fixed amount to pay the principal thereof at maturity. Any <br>surplus after satisfying the secured debt or charge may be used for the redemption of the <br>principal and interest of bonds. Bonds may be issued pursuant to the provisions of KRS <br>96.350 to 96.510 in exchange for or in satisfaction of such secured debt or charge, or may <br>be sold and the proceeds applied in payment of the secured debt or charge at or before <br>maturity. Effective: October 1, 1942 <br>History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 2741L-18, 2741L-40.