§ 3. Definitions.

(a)

As used in this act [article], the term:

(1)

"Authority" means the Jackson County Water and Sewerage Authority created in section 2 of this act [article].

(2)

"Cost of the project" means and embraces the cost of construction; the cost of all lands, properties, rights, easements and franchises acquired; the cost of all machinery and equipment; financing charges; interest prior to and during construction; cost of engineering, architectural, fiscal and legal expenses and of plans and specifications and other expenses necessary or incident to determining the feasibility or practicability of the project; administrative expenses; and such other expenses as may be necessary or incident to the financing authorized in this act [article] and the construction of any project, the placing of same in operation and the condemnation of property necessary for such construction and operation. Any obligation or expense incurred for any of the foregoing purposes specified in this paragraph [subsection] shall be regarded as a part of the cost of the project and may be paid or reimbursed as such out of the proceeds of revenue bonds issued under the provisions of this act [article] for such project.

(3)

"Project" means and includes the acquisition, construction and equipping of water facilities for obtaining one or more sources of water supply; the treatment of water and the distribution and sale of water to users and consumers, including, but not limited to, the State of Georgia and counties and municipalities for the purpose of resale within the territorial boundaries of the project area, and additions and improvements to, and extensions of, such facilities, and the operation and maintenance of same so as to assure an adequate water system; the acquisition, construction and equipping of sewerage facilities useful and necessary for the gathering of waste matter; and the treatment of sewerage of any and every type, including, but not limited to, the acquisition and construction of treatment plants, ponds and lagoons within the territorial boundaries of the project area, and additions and improvements to, and extensions of, such facilities, and the operation and maintenance of same so as to assure an adequate sewerage system. Said water facilities and said sewerage facilities, at the discretion of the authority, may be combined at any time as one revenue-producing undertaking and operated and maintained as such.

(4)

"Revenue bonds, bonds" and "obligations" mean revenue bonds as defined and provided for in O.C.G.A. tit. 36, ch. 82, art. 3 [O.C.G.A. § 36-82-60 et seq.], known as the "Revenue Bond Law," and such type of obligations may be issued by the authority as authorized under said article and any amendments thereto, and, in addition, shall also mean obligations of the authority, the issuance of which are specifically provided for in this act [article].

(b)

Any project shall be deemed self-liquidating if, in the judgment of the authority, the revenue and earnings to be derived by the authority therefrom, and all facilities used in connection therewith, will be sufficient to pay the cost of operating, maintaining, repairing, improving and extending the project and to pay the principal of, and interest on, the revenue bonds which may be issued to finance, in whole or in part, the cost of such project or projects.