10118-11 Authorizing Sewage Works Revenue Bonds

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America which on the dates of such payment shall be legal tender for the payment of public and private debts. This bond is one of an authorized issue of bonds (the `Bonds") of the City of South Bend, Indiana, of like original date, tenor and effect, except as to denomination, numbering, interest rates, redemption terms and dates of maturity, in the total amount of Dollars ($ ), numbered from R-1 up, issued for the purpose of providing funds to be applied to the cost of certain additions, extensions and improvements to the sewage works of the City (the "Sewage Works" or the "Works"), and to pay all expenses necessarily incurred in connection with the issuance of such bonds, as authorized by Ordinance No. adopted by the Common Council of the City of South Bend on the day of , 2011, entitled "An Ordinance of the Common Council of the City of South Bend, Indiana Authorizing the Acquisition, Construction and Installation of Certain Additions, Extensions and Improvements for the City's Sewage Works, the Issuance and Sale of Revenue Bonds to Provide Funds for the Payment of the Costs Thereof, and the Collection, Segregation and Distribution of the Revenues of Such Sewage Works, and Other Related Matters" (the "Ordinance"), and in strict compliance with the provisions of I.C. 36-9-23, as amended (collectively,the "Act"). Pursuant to the provisions of the Act and said Ordinance, the principal of and interest on (i) this bond and all other bonds of this issue, (ii) all Prior Bonds (as defined in the Ordinance), which Prior Bonds are on a parity with this bond and all other bonds of this issue, and (iii) all bonds hereafter issued on a parity with this bond and all other bonds of this issue, are payable solely from the Sewage Works Sinking Fund, as described in the Ordinance, to be provided from the Net Revenues (defined as the gross revenues of the Sewage Works of the City after deduction only for the payment of the reasonable expenses of operation, repair and maintenance but not including depreciation and payments in lieu of taxes). This bond and the issue of which it is a part, together with the Prior Bonds and any parity bonds hereafter issued constitute a first charge against said Net Revenues. The City of South Bend irrevocably pledges the entire Net Revenues of said Sewage Works to the prompt payment of the principal of and interest on the bonds authorized by the Ordinance, of which this is one, and any bonds ranking on a parity therewith (including the Prior Bonds), to the extent necessary for that purpose, and covenants that it will cause to be fixed, maintained and collected such rates and charges for service rendered by the Works as are sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of the Works, to provide for proper depreciation and for the payment of the sums required to be paid into said Sewage Works Sinking Fund under the provisions of the Ordinance. In the event the City or the proper officers thereof shall fail or refuse to so fix; maintain and collect such rates or charges, or if there be a default in payment of the interest on or principal of this bond, the owner of this bond shall have all of the rights and remedies provided for under Indiana law. The City of South Bend further covenants that it will set aside and pay into its Sewage Works Sinking Fund a sufficient amount of the Net Revenues of the Works to (a) pay the principal and interest payments on all bonds payable from the Net Revenues of the Sewage Works, as such principal and interest shall fall due, (b) pay the necessary fiscal agency charges for paying all bonds and interest as required by the Ordinance, and (c) an additional amount B-2