Municipal Waterworks Revenue Bonds

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extensions to the waterworks of the City (the "Waterworks ") and all expenses necessarily incurred in connection with the issuance of such bonds, as authorized by an ordinance adopted by the City Council of the City of South Bend on the day of November, 1992, entitled "AN ORDINANCE AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF EXTENSIONS, ADDITIONS AND IMPROVEMENTS TO THE MUNICIPAL WATERWORKS OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE AND SALE OF REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, AND AUTHORIZING THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SUCH WATERWORKS AND OTHER RELATED MATTERS" (the "Ordinance "), and in strict compliance with the provisions of Indiana Code, Title 8, Article 1.5, and the laws amendatory thereof and supplemental thereto (the "Act "). This bond is issuable only in fully registered form in the denomination of Five Thousand and 00 /100 Dollars ($5,000.00) or any integral multiple thereof not exceeding the aggregate principal amount of the bonds of this issue maturing in any one year. Pursuant to the provisions of the Act and the Ordinance, the principal of and interest on this bond and all other bonds of this issue and any bonds hereafter issued on a parity therewith, are equally and ratably secured by and constitute a first charge upon and are payable solely from the Waterworks Sinking Fund to be provided from the net revenues (herein defined as the gross revenues after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) derived from the Waterworks, including the existing works, the improvements and extensions acquired or constructed in part out of the proceeds of this bond and the issue of which it is a part, and all additions and improvements thereto and replacements thereof subsequently constructed and acquired. This bond does not and shall not constitute an indebtedness of the City within the meaning of the provisions and limitations of the constitution of the State of Indiana, and the City is not and shall not be obligated to pay this bond or the interest thereon except from such special fund provided from such net revenues. 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 -4-