8359-93 Revenue Bonds Refund Outstanding Sewage Segregation

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1 [ Section 8. Approval of Escrow Agreement. The Escrow Agreement shall be in substantially the form attached hereto as Exhibit B, with such changes therein as the Mayor approves as evidenced by his signature thereon. The moneys deposited pursuant to the Escrow Agreement to carry out the Refunding shall be held as cash or invested in direct obligations of, or obligations the principal and interest on which are unconditionally guaranteed by, the United States of America, and shall be irrevocably set aside and pledged for such purpose. The Mayor is hereby authorized to enter into the Escrow Agreement and the Controller is hereby authorized to pay the charges for the services of the Escrow Agent. The entry by the City into the Escrow Agreement and the execution of the Escrow Agreement on behalf of the City, and the taking of such other action and the execution of such other instruments as are necessary to effect the Refunding, by the Mayor, Controller, Clerk and the Treasurer of St. Joseph County in accordance with this Ordinance, are hereby authorized, approved and ratified. The proper officers of the City are hereby directed to draw all proper and necessary warrants, and to do whatever acts and things may be necessary to carry out the provisions of this Ordinance. First Chicago Capital Markets, Inc. is hereby authorized to take such actions as it deems appropriate with the approval of the Controller to carry out the Refunding if finally consummated, including the execution of documents necessary to make subscription to acquire appropriate securities to be held under the Escrow Agreement. Section 9. Collection of Revenues; Funding Operation, Repair and Maintenance. There shall continue to be set apart and paid out of the gross revenues of the works into a cash operating fund (the "Operations Fund") an amount necessary and sufficient to pay the monthly costs of operating, repairing and maintaining said sewage works. The moneys credited to the Operations Fund shall be used for the payment of the reasonable and proper operation, repair and maintenance expenses of the sewage works on a day-to-day basis, but none of the moneys in the Operations Fund shall be used for extensions, improvements, or additions. Any balance in the Operations Fund may be transferred to the Sinking Fund if necessary to prevent a default in payment on the then outstanding 1993 Bonds. Section 10. Sinking Fund for Bonds. The Sewage Works Sinking Fund (the "Sinking Fund") is continued and is hereby designated and constituted as the special fund for the payment of the 1993 Bonds. The Sinking Fund shall be divided into two accounts hereby designated as the Debt Service Account (the "Debt Service Account") and the Reserve Account (the "Reserve Account") . There shall be set aside from the gross revenues of the works, after first making the required payments into the Operations Fund, and paid into the Debt Service Account of the Sinking Fund monthly, as available, a sufficient amount of the net revenues of the sewage works for the payment of (a) the interest on all bonds which by their terms are payable from the revenues of said sewage works, as such interest shall fall due, (b) the necessary fiscal agency charges for paying such bonds and interest, and (c) the principal of all bonds payable from the revenues of the sewage works, as such principal shall fall due. The monthly payments into said Debt Service Account shall be in an amount equal to at least one-sixth (1/6th) of the amount required for interest during the next succeeding six (6) calendar months and an amount equal to one- twelfth (1/12th) of the amount required for payments during the next succeeding twelve (12) calendar months for the hereinabove described purposes other than interest payments. There shall be held in said Reserve Account an amount which pemals the followina with respect to the 1993 Bonds and any