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The bonds of -this issue are redeemable at the option of the City, in
<br />whole or in part, on March 1, 1971 or any interest payment date thereafter, in
<br />inverse order of maturity and by lot within a maturity, at face value, together
<br />with the following premiums: three per cent (3%) if redeemed on March 1, 1971,
<br />or thereafter on or before September 1, 1974; two per cent (2%) if redeemed on
<br />March 1, 1975, or thereafter on or before September 1, 1977; one per cent (ln
<br />if redeemed on March 1, 1973, or -thereafter prior to maturity; plus in each case
<br />accrued interest to the date fixed for redemption; provided notice of said
<br />redemption shall be given at least 'thirty (30) days prior to the redemption date
<br />by one publication in a newspaper of general circulation printed and published
<br />in the City of South Bend, Indiana and in a newspaper or financial journal
<br />published in the City of Indianapolis, Indiana, and in a financial journal of
<br />general circulation published in -the City of New York, New York, and a like
<br />notice be sent by mail to -the holders of such bonds as are then registered.
<br />Interest on the bonds so called for redemption shall cease on the redemption date
<br />fixed in said notice, if funds are available at the place of redemption to redeem
<br />the bonds when presented. The bonds so redeemed prior to maturity shall be
<br />surrendered for cancellation, together with unmatured interest coupons appurtenant
<br />thereto.
<br />The City covenants that it will, to the fullest extent permitted by
<br />law, fix, maintain and collect an aggregate of rates and charges for the
<br />services rendered by said waterworks which will be sufficient to pay all costs
<br />of operation and maintenance of said waterworks, to provide a proper and adequate
<br />depreciation account, and to create and maintain the sinking fund required for
<br />-the payment of all revenue bonds which by their terms are payable from the
<br />revenues of said waterworks, and that it will, in all other respects, faithfully
<br />comply with all of the provisions of -the governing statutes pursuant to which
<br />this bond is issued. In the event the City shall make any default in the
<br />payment of the principal of or interest on this bond, the holder hereof shall
<br />have all of -the rights and remedies provided by the governing statutes,
<br />including the right to compel the collection of sufficient rates and charges
<br />to provide for the payment of -this bond and the interest hereon.
<br />This bond and all other bonds of said issue shall, in the hands of
<br />bona fide holders, have all of the qualities of negotiable instruments under
<br />the laws of -the State of Indiana. This bond may be registered at the office
<br />of the City Controller as to principal only, in the name of the owner, in the
<br />manner and with the effect provided in said ordinance, but unless registered
<br />shall pass by delivery. The interest coupons attached hereto shall at all times
<br />pass by delivery.
<br />If any bond or interest coupon shall not be presented for payment or
<br />redemption on the date fixed -therefor, the City may deposit in trust with the
<br />First Bank and Trust Company of South Bend, South Bend, Indiana, an amount
<br />sufficient to pay such bond or interest coupon, as -the case may be, and -there-
<br />after the holder shall look only to the funds so deposited in trust with said
<br />bank for payment and neither 'the City nor its waterworks shall have any further
<br />obligation or liability in respect thereto.
<br />It is hereby certified and recited that all acts, conditions and 'things
<br />required to be done precedent to and in the execution, issuance and delivery of
<br />this bond have been done and performed in regular and due form as provided by
<br />law.
<br />IN WITNESS WHEREOF, the City of South Bend, in St. Joseph County,
<br />State of Indiana, has caused this bond to be signed in its corporate name
<br />by its duly elected, qualified and acting Mayor, countersigned by its City
<br />Controller, its corporate seal to be hereunto affixed and attested by its
<br />duly elected, qualified and acting City Clerk, and the interest coupons hereto
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