Construction of Additions and Improvements to the Sewage Works Bonds

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(e) The date of earliest redemption in advance of maturity of additional parity bonds issued pursuant to this section shall be no earlier than February 1, 1997: Section 19. For the purpose of further safeguarding the interests of the holders of the bonds herein authorized, it is specifically provided as follows: (a) All contracts let by the City in connection with the acquisition and construction of the Improvements to the sewage works shall be let after due advertisement as required by the laws of the State of Indiana, and all contractors shall be required to furnish surety bonds in an amount equal to at least one hundred percent (100%) of the amount of such contracts, to insure the completion of said contracts in accordance with their terms, and such contractors shall also be required to carry such employers' liability and public liability insurance as are required under the laws of the State of Indiana in the case of public contracts, and shall be governed in all respects by the laws of the State of Indiana relating to public contracts. (b) The works shall be constructed under the supervision and subject to the approval of Tenech Engineers, or such other competent engineers as shall be designated by the Board of Public Works. All estimates for work done or material furnished shall first be checked by the engineer and approved by the Board of Public Works. (c) The City shall at all times maintain its sewage works in good condition and operate the same in an efficient manner and at a reasonable cost. (d) So long as any of the bonds herein authorized are outstanding, the City shall maintain insurance on the insurable parts of said works of a kind and in an amount such as would normally be carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the State of Indiana. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be treated and applied as net revenues of the works. (e) So long as any of the bonds herein authorized are outstanding, the City shall not mortgage, pledge or otherwise encumber such works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replaced equipment which may become worn out or obsolete or other property not required for the proper operation and maintenance of the works. (f) Except as otherwise provided in Section 18 of this Ordinance, so long as any of the bonds herein authorized are outstanding, no additional bonds or other obligations pledging any portion of the revenues of said sewage works shall be authorized, executed or issued by the City except such as shall be made subordinate and junior in all respects to the bonds herein authorized, unless all of the bonds herein authorized are redeemed -25-