Bill No. 49-23 Revenue Bonds Authorizing the Acquisition & Construction of the Municipal Waterworks

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a) All contracts let by the City in connection with the construction of the Project 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 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 is 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 Project shall be constructed under plans and specifications approved by a competent engineer designated by the City. All estimates for work done or material furnished shall first be checked by the engineer and approved by the City. c) The City, through the Board, shall at all times maintain the 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 or BANs are outstanding,the City,through the Board, shall acquire and maintain insurance coverage, acceptable to the Authority as part of the IFA Program, on the insurable parts of the Waterworks, of a kind and in an amount such as would normally be carried by private entities 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. As an alternative to maintaining such insurance, the City may maintain a self- insurance program with catastrophic or similar coverage so long as such program meets the requirements of any applicable laws or regulations and is maintained in a manner consistent with programs maintained by similarly situated municipalities. Insurance proceeds or self-insurance proceeds shall be used in replacing or repairing the Waterworks or, unless the Authority shall consent to a different use of such proceeds or awards if the 2009A Bonds remain outstanding or any of the Bonds are sold to or are owned by the Authority as part of its IFA Program, or, if no bonds are sold to or are owned by the Authority as part of its IFA Program and such proceeds or awards or if not used for that purpose, shall be treated and applied as Net Revenues. e) So long as any of the Bonds or BANs are outstanding, the City shall not mortgage,pledge or otherwise encumber the works, or any part thereof,and shall not sell, lease or otherwise dispose of any part of the same, excepting only such machinery, equipment or other property as may be replaced,or shall no longer be necessary for use in connection with said utility; provided, the foregoing restrictions shall not apply to the extent approved otherwise in writing by the owners of all Bonds or BANs then outstanding, including the Authority if the Series 2009A Bonds are then outstanding or if any of the Bonds or Parity Bonds are sold to the Authority as part of its IFA Program, and the City receives an opinion of nationally recognized bond counsel to the effect that the transaction will not cause the interest on the Bonds or BANs to be included in gross income for federal income tax purposes. f) Except as otherwise specifically provided in Section XXI of this Ordinance and in the Prior Ordinances,so long as any of the BANs or the Bonds are outstanding,no additional bonds or other obligations pledging any portion of the revenues of the works shall be issued by the City, except such as shall be made junior and subordinate in all respects to the Bonds, unless all of the BANs and Bonds are defeased, redeemed or retired coincidentally with the delivery of such additional bonds or other obligations. Such subordinate obligations shall be subject to the provisions of Section XXI(d). 29-