Issue Revenue Bonds for Waterwork Improvements

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of the holders of the bonds, it is specifically provided as follows! (a) AU construction contracts shall, be let to responsible con - tractors who shall be required to furnish construction bonds running to the City of South Bend, in an amount equal to one hundred per cent (100%) of the amount of such contracts, to insure the completion of such con- tracts in accordance with their terms, and such contractors shall be required to carry such employergs liability and public liability in- surance as are required under the laws of the State of Indiana in the case of public contracts. (b) The extensions and additions sha11 be contracted for and constructed to the approval of Charles V. Cole & Son, consulting engineers of South Bend, Indiana., how employed by the City, or such other consult- ing engineers as may hereafter be employed by the City, with the approval of the purchaser of the bonds. All estimates for work done and material furnished shall first be checked by the consulting engineers before being approved by the City. (c) The City shall, at all times, maintain said waterworks in good condition and operate the same in an efficient manner and at a rea- sonable cost. (d) So long as any of the bonds herein authorized are outstand- Ingo the City shall maintain insurance on the insurable parts of the waterworks of a kind and in an amount such as is usually carried by private companies engaged in a similar type of business. AU insurance shall be placed with responsible insurance companies qualified to do busi- ness in the State of Indiana, and any insurance proceeds colUcted shall be used in replacing the property destroyed or damaged. (e) So long as any of the bonds herein authorized are outstand- ing, the City shall not mortgage, pledge or otherwise encumber its water- works or any part thereof, and shall not sell, lease or otherwise dispose 15 -