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

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g) If any Bonds are sold to the Authority as part of its IFA Program or for so long as the 2009A Bonds remain outstanding and owned by the Authority and,except as otherwise specifically provided in Section XXI hereof, the City shall not without the prior written consent of the Authority (i) enter into any lease, contract or agreement or incur any other liabilities in connection with the Waterworks other than for normal operating expenditures or (ii) borrow any money (including without limitation any loan from other utilities operated by the City) in connection with the Waterworks. h) The provisions of this Ordinance shall constitute a contract by and between the City and the owners of the BANs and the Bonds, all the terms of which shall be enforceable by any such owner by any and all appropriate proceedings in law or in equity. After the issuance of the BANs or the Bonds and so long as any of the principal thereof or interest or premium, if any, thereon remains unpaid, except as expressly provided herein, this Ordinance shall not be repealed,amended,or modified in any respect which, in the determination of the Common Council in its sole discretion, will materially and adversely affect the rights of such owners, nor shall the Common Council or any other body of the City adopt any law, ordinance or resolution which, in the determination of the Common Council in its sole discretion, in any way materially and adversely affects the rights of such owners. Notwithstanding the foregoing, if any of the BANs or the Bonds are sold to and owned by the Authority as part of its IFA Program, and for so long as the 2009A Bonds remain outstanding and owned by the Authority, the City shall obtain the prior written consent of the Authority. i) The provisions of this Ordinance shall be construed to create a trust in the proceeds of the sale of the BANs and the Bonds for the uses and purposes herein set forth, and the owners of the Bonds shall retain a lien on such proceeds until the same are applied in accordance with the provisions of this Ordinance and the Act. The provisions of this Ordinance shall also be construed to create a trust in the Net Revenues herein directed to be set apart and paid into the Sinking Fund for the uses and purposes of that Fund as set forth in this Ordinance. The owners of the BANs and the Bonds shall have all the rights, remedies and privileges set forth in the Act, including the right to have a receiver appointed to administer the System, in the event of default in the payment of the principal of or interest on any of the Bonds. Upon the appointment of such receiver, the receiver may: (i) charge and collect rates sufficient to provide for the payment of the expenses of the operation, repair and maintenance of the System and debt service as provided in the next following clause; (ii) pay the interest on the BANs or the principal of, premium, if any, and interest on any bonds payable from Net Revenues; and (iii) apply the revenues of the System in conformity with the Act and this Ordinance. In addition,any owner of the BANs and the Bonds may,by civil action,protect and enforce rights granted by the Act or under this Ordinance in connection with any action or duty to be performed by the City,the Common Council,or any Officer of the City, including the making and collecting of reasonable and sufficient charges and rates for services provided by the System as described in this Ordinance. j) For purpose of this Section, the term "lease" shall include any lease, contract, or other instrument conferring a right upon the City to use property in exchange for a periodic payments made from the revenues of the Waterworks, whether the City intends to cause such to be, or by its terms (or its intended effects) is to be, (i) payable as rent, (ii) booked as an expense or an expenditure, or (iii) classified for accounting or other purposes as a capital lease, 30 -