New Orleans; tax levy to pay bonds; disposal of residue; proceeds from assessments

The Board of Liquidation, City Debt, shall annually retain from the revenues derived from the tax levy of two mills for the sewerage, water and drainage systems of the city of New Orleans provided for in R.S. 33:4094, an amount which, together with other moneys received by the Board of Liquidation, City Debt, from the sewerage and water board, as hereinafter provided, shall be sufficient to provide for the payment, at or prior to maturity, of the principal of and the interest on the bonds issued under the authority of R.S. 33:4097, and such revenues shall be applied by the Board of Liquidation, City Debt, to such purposes. After providing for the payment of the principal and interest of such bonds and after making such further reservation of revenues derived from the aforesaid tax as may be required by the terms of any contract made with the holders of said bonds or as the Board of Liquidation, City Debt, in its discretion, may deem necessary to insure the prompt and regular payment of the principal and interest of said bonds, the residue of said revenues shall be used by the sewerage and water board of New Orleans for the purposes now set forth in R.S. 33:4094. In the event the proceeds of bonds issued under R.S. 33:4097 shall have been used by the sewerage and water board to pay for the portion of the cost of drainage work which is to be assessed against lands benefited by such drainage work, the sewerage and water board shall pay over to the Board of Liquidation, City Debt, when and as received, the funds derived from the sale of drainage certificates secured by said assessments, and the total amount of assessments levied upon the property benefited by such drainage works, and the proceeds of the sale of drainage liens upon such property which are not dedicated to the payment of drainage certificates, until a sufficient amount shall have been paid over to the Board of Liquidation, City Debt, to provide for the retirement and redemption of principal and interest of an amount of the bonds issued under R.S. 33:4097, equal to the face amount of said bonds the proceeds of which were used to pay the property owners' portion of the cost of the drainage works.