8419-93 Amending Ordinance #8318-92 Issuance of Revenue Bonds Waterworks

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The City of South Bend irrevocably pledges the entire net revenues of the Waterworks to the extent necessary for such purposes, to the prompt payment of the principal of and interest on the bonds authorized pursuant to the Ordinance, of which this is one, and any bonds hereafter issued on a parity herewith. The City covenants that it will to the fullest extent permitted by law cause to be fixed, maintained and collected such rates and charges for services rendered by such works as are sufficient in each year to: (a) pay all legal and other necessary expenses incident to the operation of the Waterworks, including maintenance costs, operating charges, upkeep, repairs, depreciation, and interest charges on bonds or other obligations, including leases; (b) make all required deposits into the Waterworks Sinking Fund to provide for the liquidation of bonds or other obligations, including leases; (c) provide a debt service reserve for bonds or other obligations, including leases, as required by the terms of such obligations; (d) provide adequate money for working capital; (e) make all required deposits into the Waterworks Improvement Fund to provide adequate money for making extensions and replacements for the Waterworks; and (f) provide money for the payment of any taxes that may be assessed against the Waterworks. The owner of this bond shall have all of the rights, remedies and privileges provided in the Act, and under Indiana law, including the making and collecting of reasonable and sufficient rates lawfully established for the use of the services and facilities of the Waterworks, the segregation of the revenues of the Waterworks and the application of funds as provided in the Ordinance. The bonds of this issue maturing on or after January 1, 2004, are subject to redemption prior to maturity, at the option of the City, in whole or in part, on January 1, 2003 , or at any time thereafter, in inverse order of maturity and by lot within any such maturity or maturities by the Registrar at a redemption price expressed as a percentage of the principal amount of each bond to be redeemed in accordance with the following schedule, plus accrued interest to the date of redemption: Redemption Period (Both Dates Inclusive) Redemption Price January 1, 2003 through December 31, 2003 102% January 1, 2004 through December 31, 2004 101% January 1, 2005 and thereafter prior to maturity 100% Notice of any such redemption identifying the Bonds shall be sent by registered or certified mail to the Registered Owner of this bond not more than sixty (60) and not less than thirty (30) days prior to the date fixed for redemption, unless such notice is waived by the Registered Owner; provided, however, that failure to give such notice by mailing, or any defect therein, with respect -5-