America which on the dates of such payment shall be legal tender for the payment of public and
<br />private debts.
<br />This bond is one of an authorized issue of bonds (the "Bonds") of the City of South Bend,
<br />Indiana, of like original date, tenor and effect, except as to denomination, numbering, interest
<br />rates, redemption terms and dates of maturity, in the total amount of Dollars
<br />($ ), numbered from R-1 up, issued for the purpose of providing funds to be applied
<br />to the cost of certain additions, extensions and improvements to the sewage works of the City
<br />(the "Sewage Works" or the "Works"), and to pay all expenses necessarily incurred in
<br />connection with the issuance of such bonds, as authorized by Ordinance No. adopted by
<br />the Common Council of the City of South Bend on the day of , 2010,
<br />entitled "An Ordinance of the Common Council of the City of South Bend, Indiana Authorizing
<br />the Acquisition, Construction and Installation of Certain Additions, Extensions and
<br />Improvements for the City's Sewage Works, the Issuance and Sale of Revenue Bonds to Provide
<br />Funds for the Payment of the Costs Thereof, and the Collection, Segregation and Distribution of
<br />the Revenues of Such Sewage Works, and Other Related Matters" (the "Ordinance"), and in
<br />strict compliance with the provisions of I.C. 36-9-23, as amended (collectively, the "Act").
<br />Pursuant to the provisions of the Act and said Ordinance, the principal of and interest on
<br />(i) this bond and all other bonds of this issue, (ii) all Prior Bonds (as defined in the Ordinance),
<br />which Prior Bonds are on a parity with this bond and all other bonds of this issue, and (iii) all
<br />bonds hereafter issued on a parity with this bond and all other bonds of this issue, are payable
<br />solely from the Sewage Works Sinking Fund, as described in the Ordinance, to be provided from
<br />the Net Revenues (defined as the gross revenues of the Sewage Works of the City after deduction
<br />only for the payment of the reasonable expenses of operation, repair and maintenance but not
<br />including depreciation and payments in lieu of taxes). This bond and the issue of which it is a
<br />part, together with the Prior Bonds and any parity bonds hereafter issued constitute a first charge
<br />against said Net Revenues.
<br />The City of South Bend irrevocably pledges the entire Net Revenues of said Sewage
<br />Works to the prompt payment of the principal of and interest on the bonds authorized by the
<br />Ordinance, of which this is one, and any bonds ranking on a parity therewith (including the Prior
<br />Bonds), to the extent necessary for that purpose, and covenants that it will cause to be fixed,
<br />maintained and collected such rates and charges for service rendered by the Works as are
<br />sufficient in each year for the payment of the proper and reasonable expenses of operation, repair
<br />and maintenance of the Works, to provide for proper depreciation and for the payment of the
<br />sums required to be paid into said Sewage Works Sinking Fund under the provisions of the
<br />Ordinance. In the event the City or the proper officers thereof shall fail or refuse to so fix,
<br />maintain and collect such rates or charges, or if there be a default in payment of the interest on or
<br />principal of this bond, the owner of this bond shall have all of the rights and remedies provided
<br />for under Indiana law.
<br />The City of South Bend further covenants that it will set aside and pay into its Sewage
<br />Works Sinking Fund a sufficient amount of the Net Revenues of the Works to (a) pay the
<br />principal and interest payments on all bonds payable from the Net Revenues of the Sewage
<br />Works, as such principal and interest shall fall due, (b) pay the necessary fiscal agency charges
<br />for paying all bonds and interest as required by the Ordinance, and (c) an additional amount
<br />B-2
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