Acquisition and Construction of Extensions and Additions Waterworks authorizing Revenue Bonds to Provide Cost thereof

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either the Depreciation Account or the Bond and Interest Redemp- tion Account. (b) Depreciation Account. Ten and Five- tenths per cent (10.5 %) of the gross revenues of said waterworks shall be set aside into the Depreciation Account and shall be expended in making good depreciation in the waterworks, or in new construction, extensions or additions to the property of the waterworks. Any accumulations in said Depreciation Account not required for immediate use may be invested in direct obligations of the United States Government, in the manner and to the extent permitted by law, and if so invested the income from such investment shall accrue to the Depreciation Account. Said account shall not be used for any purpose other than as herein provided. (c) Bond and Interest Redemption Account. Eighteen and Five- tenths per cent (18.5 %) of the gross revenues of the water- works shall, as such revenues are received, be set apart and paid into a special account to be identified as the "Bond and Interest Redemption Account." The funds in said account shall be used solely for the purpose of paying the interest and principal of the bonds issued pursuant to the provisions of this ordinance in accordance with the terms hereof and any bonds ranking on a parity therewith, to the extent necessary for that purpose. If and when a surplus shall be created in said Bond and Interest Redemption Account which shall be in excess of the interest on and principal of all the bonds, plus ten per cent (10%), which are payable dur- ing the remainder of the then current calendar, operating or fiscal year, together with the amount of interest on and principal of all the bonds which will become due and payable during the -5-