Yeah, that's right. Now bear in mind that The Town that Dreaded Sundown was made in 1976. This is not a post-Friday the 13th effort. This is not the product of desperate writing in a slasher-saturated market ("how else can we kill someone?"). The sequence also manages to be simultaneously hilarious and creepy as hell. Way ahead of its time.
Apparently the remake of The Town that Dreaded Sundown is slated for 2014. If they include an updated "I am the insturment of death" sequence, I will be one happy camper.