(A) The Town Council may direct that any excess over the surplus shall be used in the purchase or redemption of outstanding bonds at a price not exceeding the redemption prices hereinafter set out. No further payments need to 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.
(B) All of the funds of the several accounts shall be deposited in lawful depositories of the town, and shall be continuously held and secured as provided by the laws of Indiana relating to the deposits, shall continue until the balance in the Bond and Interest Account, revenues of the water works be transferred or used for any purpose not authorized by this section, so long as any of the bonds issued pursuant to the provisions of this section be outstanding.
(C) The funds heretofore derived from the operation of the water works, on hand on the effective date of this section, may be used in paying the operating expenses of the water works to the extent required for that purpose and in paying the cost of the additions, extensions and improvements to the water works in the event the cost shall exceed the cost as now estimated.
(D) Any balance remaining after the completion of the extensions, additions and improvements shall then be allocated to the three above-named accounts on the percentage basis therein above set out in this section.
(1998 Code, § 4-2)