Any district issuing bonds under this
act for the acquisition, construction, reconstruction, improvement, betterment
or extension of any works, shall have the right to appropriate, apply or
expend the revenue of the works for the following purposes: (a) to pay when
due all bonds and interest thereon, for the payment of which the revenue is or
shall have been pledged, charged or otherwise encumbered, including reserves
therefor; (b) to provide for all expenses of operation, maintenance,
replacement and depreciation of the works, including reserves therefor; (c) to
pay and discharge notes, bonds or other obligations and interest thereon, not
issued under this act for the payment of which the revenue of the works may
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 works, which may have been
issued for the purpose of financing the acquisition, construction,
reconstruction, improvement, betterment or extension of the works; and (e)
provide a reserve for improvements to the works. Unless and until full and
adequate provision has been made for the foregoing purposes, no district shall
have the right to transfer the revenue of works to its general fund. |
