Ordinance concerning the Construction and Operation of Sewage Treatment Works, the Issuance of Revenue Bonds

Home Browse Search

Purauant to the provisions of said Act and said ordinance, the principal and interest of this bond and all other bonds of said issue are payable solely from the Sewage Works Sinking Fund (created by said ordinance) to be provided from the net revenues (herein defined as gross revenues after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) of the sewage treatment works of the City of South Bend, including the works constructed or acquired by the use of the proceeds of this bond and the issue of which it is a part, and all additions and improvements thereto and replacements there- of subsequently constructed or acquired. This bond shall not constitute an indebtedness of the City of South Bend, within the meaning of the provisions 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 treatment works to the prompt payment of the principal and interest of the bonds issued on account of the construction of said sewage treatment works, of which this is one, and all bonds on a parity therewith, and covenants that during the period in which the works are being constructed and prior to the completion thereof, it will cause to be fixed, maintained and collected such rates and charges for services to be rendered by the works in an amount sufficient to meet the interest on the bonds prior to the completion of the works, and further covenants that after the completion of the works it will cause to be fixed, maintained and collected such rates and charges for services 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 payment of the sums required to be paid into said sinking fund under the provisions of said Act. In the event the City of South Bend, 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 on or principal of this bond, the holder of this bond shall have all of the rights and remedies provided for in said Chapter 61, Acts of 1932 (Special Session), 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 pay- ment of this bond and the interest thereon. The City of South Bend 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 this bond and the other bonds of the issue herein referred to, and all bonds on a parity therewith, as such interest shall fall due, (b) the necessary fiscal agency charges for paying the bonds and interest, (c) the principal of this bond and the other bonds of said issue, and all bonds on a parity therewith, as the same are payable, 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. Such required payments shall con - stitute a first charge upon all the net revenues of said works. If any bond or interest coupon shall not be presented for pay- ment or redemption 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 or the redemption price thereof, as the case may be, and thereafter the holder shall R