Montana Code 7-7-4425. Use of revenue from undertaking
7-7-4425. Use of revenue from undertaking. (1) Any municipality issuing bonds pursuant to this part for the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of any undertaking shall have the right to appropriate, apply, or extend the revenue of such undertaking for the following purposes:
Terms Used In Montana Code 7-7-4425
- Lien: A claim against real or personal property in satisfaction of a debt.
- Municipality: means a city or town, however organized. See Montana Code 7-7-4402
- Undertaking: means one or a combination of the following:
(a)water and sewer systems, together with all parts of the systems and appurtenances to the systems, including but not limited to supply and distribution systems, reservoirs, dams, and sewage treatment and disposal works;
(b)public airport construction and public airport building;
(c)convention facilities;
(d)public recreation facilities;
(e)streets and roads;
(f)public parking facilities, solid waste management systems, or other revenue-producing facilities and services authorized for cities and towns; and
(g)public transportation systems, including passenger buses, trolleys, passenger trains and lines, light rail trains and lines, and the facilities associated with those systems. See Montana Code 7-7-4402
(a)to pay when due all bonds and interest thereon for the payment of which such revenue is or shall have been pledged, charged, or otherwise encumbered, including reserves therefor;
(b)to provide for all expenses of operation and maintenance of such undertaking, including reserves therefor;
(c)to pay and discharge notes, bonds, or other obligations and interest thereon not issued under this part, for the payment of which the revenue of such undertaking is or shall have been pledged, charged, or encumbered;
(d)to pay and discharge notes, bonds, or other obligations and interest thereon which do not constitute a lien, charge, or encumbrance on the revenue of such undertaking and which shall have been issued for the purpose of financing the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of such undertaking; and
(e)to provide a reserve for betterments to such undertaking.
(2)Unless and until adequate provision has been made for the foregoing purposes, no municipality shall have the right to transfer the revenue of such undertaking to its general fund.