Issue Revenue Bonds for Waterwork Improvements

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or in new construction, extensions or additions to the property of the waterworks. Any accumulations in such Depreciation Account not required for lm diate use may be invested in direct obligations of the United States Government, and if so invested the income from the 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. Twenty -two per cent (22%) of the gross revenues of the waterworks 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 theinterest on and principal of the bonds issued pursuant to the pro- visions of this ordinance, to the extent herein required. 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 the bonds, plus ten per went (10%), which are payable during the then current calendar, operating or fiscal year, together with the amount of inter- est on and principal of the bonds which will become due and payable dur- ing the calendar, operating or fiscal year then next ensuing, plus ten per cent (10%), then any excess over such surplus may be transferred to either the Operation and Maintenance Account or to the Depreciation Ac- count. Any such excess over such surplus may be used in the purchase or redemption of outstanding bonds at a price not exceeding the redemp- tion prices hereinafter set out. No further payments need be made into the Bond and Interest Redemption Account when the funds therein equal or exceed the amount of the principal of the bonds then outstanding and interest thereon to the maturity date thereof. All of the funds of said several accounts shall be deposited in lawful depositories of the City, and shall be continuously held and - 4 -