Marvin Mandel, Governor                        1165

required, in the maintenance, operation, and depreciation thereof.
The ordinance or resolution shall definitely fix and determine the
amount of revenue necessary to be set apart and applied to the
payment of principal, [and] interest or premium of the bonds. In
the absence of an agreement described in 266G (c) of this sub-
heading, the resolution or ordinance shall also definitely fix and
determine the proportion of the balance of the income and revenue
to be set aside as a proper and adequate depreciation account; and
the remaining proportion of the balance shall be set aside for the
reasonable and proper operation and maintenance of the industrial
building or buildings or port facilities.

(b)  The rents to be charged for the use of the industrial building
or buildings or port facilities or the installment payments on the
purchase price thereof shall be fixed and revised from time to time
so as to be sufficient to provide for payment of interest upon all
bonds, [and] to [create a] provide for any sinking fund created
with respect thereto and to pay the principal thereof when due, and,
in the absence of an agreement described in 266G (c) of this sub-
heading, to provide for the operation and maintenance of the
industrial building or buildings or port facilities and an adequate
depreciation account.

(c)  The ordinance or resolution may provide that the lessee or
purchaser shall covenant and agree properly to operate and maintain
the industrial building or buildings or port facilities during the time
any bonds issued to finance the industrial building or buildings or
port facilities are outstanding. Any such agreement to maintain
shall include a specific undertaking by the lessee or purchaser to
make all equipment replacements and repairs necessary to insure
that the security for the industrial or port facility bonds shall not
be impaired.

266H.

(a)   If a surplus is accumulated in the operating and maintenance
funds, if any, equal to the cost of maintaining and operating the
industrial building or buildings or port facilities during the re-
mainder of the calendar, operating or fiscal year, and during the
succeeding like year, any excess over such amount may be trans-
ferred at any time by the legislative body of the municipality or
county to the depreciation account, if any, to be used for improve-
ments, extensions, or additions to the building or buildings or port
facilities.

(b)  The funds accumulating to the depreciation account, if any,
shall be expended in balancing depreciation in the industrial build-
ing or buildings or port facilities or in making new constructions,
extensions or additions thereto. Any such accumulations may be
invested as the legislative body of the municipality or county may
designate, and if invested, the income from such investment shall
be carried into the depreciation account.

(c)  Upon liquidation of the project or the conveyance of the prop-
erty under the terms of this subheading, all funds remaining in
the depreciation account, if any, or other surplus funds accruing to
the project shall revert to the general funds of the municipality
or county.