§ 6.03. Interest and Sinking Funds.

It shall be the duty of the council to levy an annual tax sufficient to pay the interest on and provide the necessary sinking fund required by law on all outstanding general obligation bonds, time warrants, and certificates of obligations of the city. The interest and sinking fund shall be deposited in a separate account and shall not be diverted to or used for any other purpose than to pay the interest and principal on all such bonds, time warrants, and certificates of obligations issued by the City of Terrell. The sinking fund maintained for the redemption of any debt may be invested in any interest bearing security authorized by laws of the state. Investments of all sinking funds for interest shall mature at least fifteen (15) days prior to the date of payment due on bonds issued by the City of Terrell. The council may also invest any other city funds in any state or national chartered bank in interest bearing certificates of deposit secured by pledged securities as required by state law for city deposits.