Acquisition and Construction of Extensions and Additions Waterworks authorizing Revenue Bonds to Provide Cost thereof

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Both principal and interest of this bond are payable in lawful money of the United States of America at the St. Joseph Bank and Trust Company, South Bend, Indiana, in the City of South Bend, Indiana, or at the option of the holder at the City National Bank and Trust Company of Chicago, in the City of Chicago, Illinois. This bond is one of an authorized issue of One Thousand Nine Hundred Forty (1,940) bonds of the City of South Bend, of like date, denomination, tenor and effect, except as to rates of interest and dates of maturity, in the total amount of One Million Nine Hundred Forty Thousand Dollars ($1,940,000.00), numbered consecutively from 1 to -1940 inclusive, issued for the purpose of providing funds to pay the cost of extensions and additions to the municipally owned waterworks of said City,.pursuant to an ordinance passed by the Common Council of said City on the day of 1960, entitled "An Ordinance concerning the acquisition and con- struction of extensions and additions to the waterworks owned and operated by the City of South Bend, Indiana, authorizing the issuance of revenue bonds to provide for the cost thereof, and matters connected therewith,' and in strict compliance with the provisions of the governing statutes, particularly Chapter 155 of the Acts of the General Assembly of the State of Indiana for the year 1929, and all acts amendatory thereof or supplemental thereto. The principal and interest of this bond and all other bonds of said issue, and any bonds ranking on a parity therewith, are equally and ratably secured by and constitute a first charge upon Eighteen and Five - tenths per cent (18.50 of the gross income and revenues of said waterworks as the same now exist or may here- after be improved and extended, which percentage of such income and revenues is to be deposited in a special fund to be known as the "Bond and Interest Redemption Account" which has been duly created by said ordinance. The City shall not be obligated to pay said bonds or the interest thereon except from said special fund, and neither this bond nor the issue of which it is a part shall in any respect constitute a corporate indebtedness of the City within the provisions and limitations of the constitution of the State of Indiana. The City covenants that it will, to the fullest extent permitted by law, fix, maintain and collect an aggregate of rates and charges for the services rendered by said waterworks which will be sufficient to pay all costs of operation and maintenance of said waterworks, to provide a proper and adequate depreciation account, and to create and maintain the sinking fund required for the payment of all revenue bonds which by their terms are payable from the revenues of said waterworks, and that it will, in all other respects, faithfully comply with all of the provisions of the governing statutes pursuant to which this bond is issued. In the event the City shall make any default in the payment of the principal of or interest on this bond, the holder hereof shall have all of the rights and remedies provided by the governing -10-