9767-07 Amend Ordinance # 9672-06

Home Browse Search

(e) If the Bonds are sold to the Indiana Finance Authority (the "Authority") as part of its State Revolving Fund Loan Program (the "SRF Program"), (i) the City has obtained the consent of the Authority, (ii) the City has faithfully performed and is in compliance with each of its obligations, agreements, and covenants contained in the Financial Assistance Agreement and this Ordinance, and (iii) the City is in compliance with its National Pollutant Discharge Elimination System permits, except for non-compliance, if any, for which the additional parity bonds are issued, including refunding bonds issued prior to, but part of the overall plan to eliminate such non- compliance. Section 2. Subsections (d) and (e) of the section of the Bond Ordinance labeled Section XVII. Additional Covenants of the City. are hereby amended and restated in their entirety as follows: (d) So long as any of the Bonds herein authorized are outstanding, the City shall maintain insurance coverage (which must be acceptable to the Authority if any of the Bonds are sold to the Authority as part of its SRF Program), including fidelity bonds, to protect the sewage works and its operations on the insurable parts of said Sewage 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, provided, however, such insurance requirement may be satisfied, in part or in whole, through the City's self insurance program. If the Bonds are sold to the Authority as part of its SRF Program, use of the City's self-insurance program to satisfy any of the insurance requirements set forth herein shall be subject to the approval of the Authority. Insurance proceeds and condemnation awards shall be used to replace or repair the property, or, if not used for that purpose, shall be treated and applied as net revenues of the sewage works (provided such is consented to by the Authority if any of the Bonds are sold to the Authority as part of its SRF Program). (e) So long as any of the Bonds are outstanding, the City shall not mortgage, pledge or otherwise encumber such sewage works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replace equipment which may become worn out or obsolete, without the prior written consent of the Authority if such Bonds are sold to the Authority as part of its SRF Program. Section 3. The sentence in Subsection (i) of the section of the Bond Ordinance labeled Section XVII. Additional Covenants of the City. that states: BDDBOI 4779285v1 - 2 -