Authorizing Issuance and Sale of Bonds to refund Outstanding Refunding Revenue Bonds of 1993

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SECTION 14. Rate Covenant. The City shall, to the fullest extent permitted by law, establish, maintain and collect just and equitable rates and charges for the use of and the services rendered by said sewage works, to be paid by the owner of each and every lot, parcel of real estate or building that is connected with and uses said sewage works by or through any part of the sewage system of the City, or that in any way uses or is served by such works. Such rates or charges shall be sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of the works, for depreciation and improvement, and for the payment of the sums required to be paid into the Sinking Fund. Such rates or charges shall, if necessary, be changed and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet the expenses of operation, repair and maintenance, depreciation and improvement, and the requirements of the Sinking Fund. In no event shall the annual gross revenues of the sewage works after payment of the expenses of operation, repair and maintenance (but not including depreciation and payments in lieu of taxes) be less than one hundred and twenty-five percent (125%) of the annual interest and principal requirements of the 2001 Bonds and any additional Bonds issued pursuant to Section 16 hereof. SECTION 15. Defeasance. If, when the 2001 Bonds or any portion thereof shall have become due and payable in accordance with their terms, and the whole amount of the principal, premium, if any, and the interest so due and payable upon such 2001 Bonds or any portion thereof then outstanding shall be paid, or (i) cash, or (ii) direct non-callable obligations of (including obligations issued or held in book entry form on the books of) the Department of the Treasury of the United States of America, and securities fully and unconditionally guaranteed as to the timely payment of principal and interest by the United States of America, and to the extent permitted by Indiana law, Refcorp interest strips, CATS, TIGRS, STRPS, or defeased municipal bonds rated AAA by Standard & Poor's Corporation or Aaa by Moody's Investors Service or AAA by Fitch Investors Service, Inc. (or any combination thereof), the principal of and the interest on which when due without reinvestment will provide sufficient money, or (iii) any combination of the foregoing, shall beheld irrevocably in trust for such purpose, and provision shall also be made for paying all fees and expenses for the redemption, then and in that case the 2001 Bonds or any designated portion thereof issued hereunder shall no longer be deemed outstanding or entitled to the pledge of the Net Revenues of the City's sewage works. SECTION 16. Additional Bonds. The City reserves the right to authorize and issue additional bonds, payable out of the revenue of its sewage works, ranking on a parity with the 2001 Bonds for the purpose of financing the cost of future additions, extensions and improvements to the sewage works or to provide for a complete or partial refunding of the 2001 Bonds or other bonds payable out of the revenues of the sewage works, subject to the following conditions: (a) The interest on and principal of all bonds payable from the revenues of the sewage works shall have been paid to date in accordance with the terms thereof, provided, this condition shall be deemed satisfied if any required amount is to be provided from the proceeds of the parity bonds or other funds of the City. (b) All required deposits to the Sinking Fund shall have been made in accordance with the provisions of the Ordinance. -11-