§ 412. Use of revenue of undertaking. Any municipality issuing bonds
for the acquisition, construction, reconstruction, improvement,
betterment or extension of an undertaking shall have the right to
appropriate, apply or expend the revenue of such undertaking for the
following purposes: (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 article for the payment of which the revenue of such undertaking
may 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, which may have been issued for the purpose of financing the
acquisition, construction, reconstruction, improvement, betterment or
extension of such undertaking, and (e) provide a reserve for
improvements to such undertaking. Unless and until full and 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.