KRS 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

amount of any secured debt or charge subject to which a waterworks is acquired, and

shall set aside to that fund, from the balance of the income and revenues of the

waterworks remaining after setting aside the funds for payment of principal and interest

of bonds, a sum sufficient to comply with the requirements of the instrument creating the

lien or securing the charge. If the instrument does not make any provision ther efor, the

resolution or ordinance shall fix and determine the amount that shall be set aside for

interest on the secured debt or charge and a fixed amount to pay the principal thereof at

maturity. Any surplus after satisfying the secured debt or charge may be used for the

redemption of the principal and interest of bonds. Bonds may be issued pursuant to the

provisions of this chapter in exchange for or in satisfaction of such secured debt or

charge, or may be sold and the proceeds applied in payment of the secured debt or charge

at or before maturity.