Construction Additions & Improvements to the Sewage Works

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and limitations of the constitution of the State of Indiana, and the City shall not be obligated to pay this bond or the interest thereon except from said special fund provided from said net revenues. The City of South Bend irrevocably pledges the entire net revenues of said sewage works, to the extent necessary for that purpose, to the prompt payment of the principal of and interest on the bonds authorized by said ordinance, of which this is one, any bonds hereafter issued on a parity therewith, and the other outstanding bonds hereinabove referred to. The City covenants that it will cause to be fixed, maintained and collected such rates and charges for service rendered by said works as are sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of said works, to provide for proper depreciation, and for the pay- ment of the sums required to be paid into said Sink- ing Fund under the provisions of said Act and said ordinance. In the event 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 or on principal of this bond, the holder of this bond shall have all of the rights and remedies pro- vided for in said Chapter 5, Article 2, Title 19 of The Indiana Code of 1971, and the acts amendatory thereof and supplemental thereto, including the right to have a receiver appointed to administer the works and to charge and collect rates sufficient to provide for the payment of this bond and the interest thereon. The City further covenants that it will set aside and pay into its Sewage Works Sinking Fund a sufficient amount of the net revenues of said works to meet (a) the interest on all bonds payable from the revenues of the sewage works as such interest shall fall due, (b) the necessary fiscal agency charges for paying the bonds and interest, (c) the principal of all bonds payable from the revenues of the sewage works as such principal shall fall due, and (d) an additional amount as a margin of safety, which margin, together with any unused surplus of such margin carried forward from the preceding year, shall equal not less than ten per cent (10%) of all other amounts so required to be paid into said Sinking Fund. The bonds of this issue are not redeemable at the option of the City prior to maturity. If any bond or interest coupon shall not be presented for payment on the date fixed therefor, the City may deposit in trust with The First Bank and Trust Company of South Bend, in the City of South Bend, Indiana, an amount sufficient to pay such bond or interest coupon, as the case may be, and thereafter the holder shall look only to the funds so deposited in trust with said bank for pay- ment and the City shall have no further obligation - 8 -