10963-23-Ordinance Authorizing the Acquisition and Construction of Certain Additions and Improvements to the Municipal Waterworks of the City of South Bend

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pay this Bond or the interest hereon except from the special fund provided from the Net Revenues (herein defined as the gross revenues of the System (herein defined as the City's waterworks system, including all real estate, equipment and appurtenances thereto used in connection therewith, and all extensions, additions and improvements thereto and replacements thereof, now or at any time hereafter constructed or acquired) inclusive of System Development Charges (as defined in the Ordinance) remaining after the payment of the reasonable expense of[Operation and Maintenance as defined in the Financial Assistance Agreement] OR [operation, repair and maintenance] of the System). [Reference is hereby made to the Financial Assistance Agreement ("Financial Assistance Agreement") between the City and the Authority concerning certain terms and covenants pertaining to the Waterworks project and the purchase of this Bond as part of the drinking water loan program established and existing pursuant to IC 5-1.2-1 through IC 5-1.2-4 and IC 5-1.2-10.] This bond is one of an authorized issue of bonds of the City issued in series of like tenor and effect, except as to numbering, interest rate, and date of maturity, in the total amount of Dollars ($ ); numbered consecutively from _R-1 up;issued for the purpose of providing funds to pay the cost of certain additions, extensions and improvements to the municipally owned waterworks system of the City, [to refund interim notes issued in anticipation of the bonds,] to fund a debt service reserve fund, and to pay issuance expenses. This bond is issued pursuant to an ordinance adopted by the Common Council of the City on the _ day of , 2023, entitled "AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF CERTAIN ADDITIONS AND IMPROVEMENTS TO THE MUNICIPAL WATERWORKS OF THE CITY OF SOUTH BEND, INDIANA; AUTHORIZING THE ISSUANCE OF REVENUE BONDS FOR SUCH PURPOSE IN THE PRINCIPAL AMOUNT NOT TO EXCEED FORTY-SEVEN MILLION SEVEN HUNDRED NINETY-ONE THOUSAND DOLLARS ($47,791,000) TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF; ADDRESSING OTHER MATTERS CONNECTED THEREWITH, INCLUDING THE ISSUANCE OF NOTES IN ANTICIPATION OF BONDS; AND REPEALING ORDINANCES INCONSISTENT HEREWITH" ("Ordinance"), and in accordance with the provisions of Indiana law, including without limitation Indiana Code 8-1.5 as in effect on the date of delivery of the bonds of this issue("Act"). Capitalized terms not otherwise defined herein have the same meanings as ascribed to them in the Ordinance. Pursuant to the provisions of the Act and the Ordinance, the principal of and interest on this bond and all other bonds of said issue,the Prior Bonds(as defined in the Ordinance)[including the Waterworks Revenue Bonds of ,Series ("Series Bonds")] and any bonds hereafter issued on a parity therewith are payable solely from the Waterworks Sinking Fund continued by the Ordinance ("Sinking Fund") to be provided from the Net Revenues (defined as gross revenues after deduction only for the payment of the reasonable expenses of operation,repair and maintenance and which reasonable expenses of operation,repair and maintenance specifically do not include any rates or charges in lieu of taxes made and collected by the Waterworks and transferred to the City in accordance with the Act) of the waterworks of the City, including the works constructed and acquired with the proceeds of the bonds of this issue, and all additions and improvements thereto and replacements thereof subsequently constructed or acquired. The City irrevocably pledges the entire Net Revenues of the waterworks to the prompt payment of the principal of and interest on the bonds authorized by the Ordinance, of which this is one, the Parity Bonds and any bonds ranking on a parity therewith, [including the Series Bonds,] to the extent necessary for that purpose, and covenants that it will cause to be fixed, maintained and collected such rates and charges for services rendered by the utility as are sufficient in each year to (i) provide for the payment of the proper and reasonable expenses of[Operation and Maintenance (as defined in the Financial Assistance Agreement)] OR [operation, repair and maintenance] of the waterworks, (ii) provide for the payment of the sums required to be paid into the Sinking Fund under the provisions of the Act and the Ordinance, and (iii) comply with and satisfy all covenants contained in the Ordinance and any Financial Assistance Agreement. If the City or the 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 under Indiana law. [The bonds shall be initially issued in a Book Entry System (as defined in the Ordinance). The provisions of this bond and of the Ordinance are subject in all respects to the provisions of the - 10 -