(1) Municipalities joining together to issue revenue bonds under the provisions of this subchapter shall designate a bank, which shall be a member of the Federal Deposit Insurance Corporation, to act as a common depository for all of the municipalities to receive and hold on deposit and for disbursement all of the revenues derived from the waterworks systems of the several municipalities.
(2) The depository shall install and maintain a proper system of accounts, showing the amount of revenues received from each municipality and the application thereof.
(3) The accounts shall be subject to audit at least once a year by a competent auditor and the report of the auditor shall be open to inspection at all times to any of the several municipalities, any taxpayer, any water user, or any holder of bonds issued under the provisions of this subchapter, or anyone acting for and on behalf of the municipalities, taxpayer, water user, or bondholder.
(4) All of the funds received as income from the waterworks systems acquired or constructed in whole or in part under the provisions of this subchapter and all funds received from the sale of revenue bonds issued to acquire or construct the waterworks system shall be kept separate and apart from the other funds of the municipalities.
(5) No one (1) account shall be maintained for all of the municipalities in which shall be placed the interest and sinking fund moneys; separate accounts shall be maintained for each municipality in which shall be placed the depreciation funds and funds to provide for the operation and maintenance of the respective waterworks systems.