Sec. 55.518.  INTEREST AND SINKING FUND.  (a)  The district shall have an interest and sinking fund which shall consist of all taxes collected under the provisions of this chapter for this fund.
(b)  Money in the interest and sinking fund shall be paid out only:
(1)  to satisfy and discharge interest on the bonds;
(2)  to pay the bonds;
(3)  to defray the expense of assessing and collecting the tax;  and
(4)  to pay principal and interest due to the United States under a contract with the district under which bonds have not been deposited with the United States.
(c)  The board shall order money from the fund to be paid out by warrants drawn as provided in this chapter.  When funds are paid out, the depository shall receive and cancel the interest coupon or bond paid, and the interest coupon or bond shall be delivered to the board to be cancelled and destroyed.
Acts 1971, 62nd Leg., p. 470, ch. 58, Sec. 1, eff. Aug. 30, 1971.