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

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the Escrow Agreement and the execution of the Escrow Agreement on behalf of the City, and the taking of such other action and the execution of such other instruments as are necessary to effect the Refunding, by the Mayor, Controller, Clerk and Treasurer of St. Joseph County in accordance with this Ordinance, are hereby authorized, approved and ratified. The proper officers of the City are hereby directed to draw all proper and necessary warrants, and to do whatever acts and things may be necessary to carry out the provisions of this Ordinance. The Underwriter is hereby authorized to take such actions as it deems appropriate with the approval of the Controller to carry out the Refunding if finally consummated, including the execution of documents necessary to make subscription to acquire appropriate securities to be held under the Escrow Agreement. SECTION 9. Collection of Revenues• Fundin~peration, Repair and Maintenance. All revenues derived from the operation of the sewage works and from the collection of sewage rates and charges shall be deposited in the Sewage Works Revenue Fund (the "Revenue Fund"), as set forth in the 1998 Ordinance and continued hereby, and such revenues shall be segregated and kept separate and apart from all other funds and bank accounts of the City. Out of said revenues the proper and reasonable expenses of operation, repair and maintenance of the sewage works shall be paid, and the costs of replacements, extensions, additions and improvements shall be paid as hereinafter provided. On the last day of each calendar month there shall be credited from the Revenue Fund to the Sewage Works Operations and Maintenance Fund (the "Operations Fund"), as set forth in the 1998 Ordinance and continued hereby, a sufficient amount of the revenues of the sewage works so that the balance in said fund shall be sufficient to pay the expenses of operation, repair and maintenance for the then next succeeding two calendar months. The moneys credited to this fund shall be used for the payment of the reasonable and proper operation, repair and maintenance expenses of the sewage works on a day-to-day basis, but none of such moneys in such fund shall be used for deprecation, replacements, improvements, extensions or additions. Any balance in the Operations Fund in excess of the expected expenses of operation, repair and maintenance for the then next succeeding month may be transferred to the Sinking Fund referred to below if necessary to prevent a default in payment of principal or interest on outstanding bonds. SECTION 10. Sewage Works Sinking. There shall be deposited from the Revenue Fund into the Sewage Works Sinking Fund (the"Sinking Fund"), as set forth in the 1998 Ordinance and continued hereby, for the payment of the interest on and principal of revenue bonds which by their terms are payable from the revenues of the sewage works, and the payment of any fiscal agency charges in connection with the payment of such bonds and interest thereon, a sufficient amount of the Net Revenues of the sewage works for the payment of to meet the requirements of the Bond and Interest Account and the Debt Service Reserve Account, as set forth in the 1998 Ordinance and continued hereby, in said Sinking Fund. Such payments shall continue until the balance in the Bond and Interest Account, plus the balance in the Debt Service Reserve Account, equals the principal of and interest on all the then outstanding bonds and the final maturity thereof. Beginning with the first calendar month following the date of issuance of the 2001 Bonds herein authorized, there shall be credited on the first day of each calendar month to the Bond and Interest Account an amount equal to the sum of one-sixth (1/6th) of the interest on all then outstanding bonds payable during the next succeeding six calendar months and one-twelfth (1/12th) -7-