KRS 74.340: Interest payments and repurchase of bonds out of sinking fund -- Bonds

negotiable and nontaxable.

Upon the issuance of refunding bonds, the water district shall annually, from delinquent

assessment collection and other revenues, carry to the sinking fund of the water district an

amount sufficient to pay the annual interest on the bonds and create a fund for their

purchase. Whenever there is a sufficient sum in the sinking fund over the amount

required for the payment of interest, it shall be used in the purchasing of as many bonds

as is practicable. All such bonds shall be negotiable and shall not be subject to taxation.