8359-93 Revenue Bonds Refund Outstanding Sewage Segregation

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t ORDINANCE NO. S736- 9- 9 3 AN ORDINANCE CONCERNING THE ISSUANCE OF REVENUE BONDS TO REFUND OUTSTANDING SEWAGE WORKS BONDS OF THE CITY, THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SAID WORKS, THE SAFEGUARDING OF THE INTERESTS OF THE OWNERS OF SAID REVENUE BONDS, OTHER MATTERS CONNECTED THEREWITH, AND REPEALING ORDINANCES INCONSISTENT THEREWITH STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City") has established, constructed and financed sewage works, and now owns and operates said sewage works pursuant to I.C. 36-9-23, as amended, and other applicable laws. The City has previously issued its bonds authorized by Ordinance No. 7951-88 and designated as "Sewage Works Revenue Bonds of 1989", dated February 1, 1989 (the "Prior Bonds") , now outstanding in principal amount of $8,925, 000, of which $7,575,000 matures on and after February 1, 1998 and is callable prior to maturity on February 1, 1997. I.C. 5-1-5 authorizes the refunding of the Prior Bonds in order to effect a savings or modify such restrictive covenants as may impede additional financing, by providing for payment of and defeasing the Prior Bonds from proceeds of other bonds. The Common Council deems it advisable to issue the refunding bonds authorized by this Ordinance as "City of South Bend, Indiana Sewage Works Refunding Revenue Bonds of 1993" in original principal amount not to exceed Eleven Million Dollars ($11, 000,000) (the "1993 Bonds") for the purpose of providing, together with certain funds on hand relating to the Prior Bonds, for the payment of (i) the principal amount of the Prior Bonds, (ii) the interest payable on the Prior Bonds, (iii) the costs of the refunding, and (iv) the costs of issuance of the 1993 Bonds (the "Refunding") . The Common Council deems it advisable to escrow certain proceeds of the 1993 Bonds, together with available funds on hand relating to the Prior Bonds, if any, and investment income thereon, pursuant to the terms of a refunding escrow agreement (the "Escrow Agreement") to be entered into with Norwest Bank Indiana, N.A. , South Bend, Indiana, as escrow agent (the "Escrow Agent") to provide for the payments of principal of and interest on the Prior Bonds as such becomes due and payable and at redemption prior to maturity. There is no encumbrance or lien of any kind whatsoever upon the revenues hereby pledged to the payment of the 1993 Bonds, other than the Prior Bonds, and such revenues are not pledged or assigned for any other purpose whatsoever. The Refunding will effect a savings. The Common Council now finds that all conditions precedent to the adoption of an ordinance authorizing the issuance of the 1993 Bonds have been complied with in accordance with the provisions of I.C. 5-1-5 and I.C. 36-9-23 (together, the "Act") .