12-2832.   Modernization of system; fund; loans.It shall be the duty of the board, as promptly as possible, torehabilitate, reconstruct and modernize all portions of any transportationsystem acquired by the authority and to maintain at all times an adequateand modern transportation system suitable and adapted to the needs of themunicipalities served by the authority, and for safe, comfortable andconvenient service. To that end the board shall establish a modernizationfund which shall include, but is not limited to, cash in renewal, equipmentor depreciation funds which are part of a private transportation systemacquired by the authority and any excess cash derived from the sale ofrevenue bonds or certificates. The moneys in the modernization fund shallbe disbursed for the purpose of acquiring or constructing extensions andimprovements and betterment of the system, to make replacements of propertydamaged or destroyed or in necessary cases where depreciation fund isinsufficient, to purchase and cancel its revenue bonds and certificatesprior to their maturity at the price of not to exceed their par value, andto redeem and cancel its revenue bonds and certificates according to theirterms. The board may make temporary loans from the modernization fund foruse as initial working capital.

      History:   L. 1955, ch. 118, § 32; April 13.