§ 2-381. Sinking fund.

(a)

Establishment; use. All taxes collected for the payment of the principal and interest of city bonds shall be kept as a separate fund, known as the "sinking fund," and under no circumstances shall such fund be paid out for any purpose other than the payment of interest and principal on the bonds for which it was collected, or for the purpose of investment as provided by law and city ordinances. If an officer honors or pays any warrants on such fund for any purpose other than those named in this section, he shall be guilty of malpractice and liable to impeachment.

(b)

Investment; reports. The custodian of the sinking fund shall promptly make arrangements for the investment of the principal of the sinking fund, as is required by law, upon approval of such arrangements by the mayor and council. The custodian shall make a report every six months, showing in detail the conditions of the sinking fund and the investments made therefrom.

(Code 1965, § 21-84)

State Constitution reference— Sinking fund required, Ga. Const. art. IX, § V, ¶ VI.

State law reference

Deduction of sinking fund in computing bonded indebtedness, O.C.G.A. § 36-82-8.