Construction of Additions and Improvements to the Sewage Works Bonds

Home Browse Search

Bonds, Second Series", dated July 1, 1971, now outstanding in the principal amount of One Million Two Hundred Five Thousand Dollars ($1,205, 000) , payable annually on October 1, 1989 and October 1, 1990 in accordance with the terms thereof, which bonds constitute a first lien against said net revenues. This bond, together with interest hereon, shall not constitute an indebtedness of the City of South Bend within the provisions and limitations of the Constitution of the State of Indiana, and the City shall not be obligated to pay this bond or the interest thereon except from said special fund provided from said net revenues. Subject to the provisions for registration, this bond is negotiable under the laws of the State of Indiana. The City of South Bend irrevocably pledges the entire net revenues of said sewage works, to the extent necessary for that purpose, to the prompt payment of principal of and interest on the bonds authorized by said Ordinance, of which this is one, any bonds hereafter issued on a parity therewith, and the other outstanding bonds hereinabove referred to. The City covenants that it will cause to be fixed, maintained, and collected such rates and charges for services rendered by said works, as are sufficient in each year for the payment of the proper and reasonable expenses of operation, repair, and maintenance of said works, to provide for proper depreciation and improvement, and for the payment of the sums required to be paid into said Sinking Fund under the provisions of said Act and said Ordinance. In the event the City, or proper officers thereof shall fail or refuse to so fix, maintain and collect such rates or charges, or if there be a default in the 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 in said Act, and the acts amendatory thereof and supplemental thereto, including the right to have a receiver appointed to administer the works and to charge and collect rates sufficient to provide for the payment of this bond and the interest thereof. The City further covenants that it will set aside and pay into its Sewage Works Sinking Fund a sufficient amount of the net revenues of said works to meet (a) the interest on all bonds payable from the revenues of the sewage works as such interest shall fall due, (b) the necessary fiscal agency charges for paying the 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 terms and provisions of this bond are continued on the reverse side hereof. Such continued terms and provisions shall for all purposes have the same effect as though fully set forth at this place. It is hereby certified and recited that all acts, conditions, and things required by law and the Constitution of the State of Indiana to be done precedent to and in the execution, -10-