Authorizing and Providing for the Issuance of $615,000.00 Sewage Works (Revenue) Bonds for the Purpose of Defraying the Cost of Constructing a Sewage Treatment Works

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is 'equal to the entire amount of all interest and principal that will be payable at the time of their redemption or maturity on all of the bonds then remaining out- standing. If in any year the City shall, for any reason, fail to pay into said redemption fund the full amount above stipulated, then an amount equivalent to such deficiency shall be set apart and paid into said fund from the first available revenues of the following year or years, and same shall be in addition to the amount otherwise herein provided to be so set apart and paid during such succeeding year or years. Such payments into said fund shall be made in equal monthly installments of the first day of each month, except that when the first day of any month.shall he a Sunday or a legal holiday, then such payments shall be made on the next succeeding secular day and the balance then remaining shall be set aside for operation, maintenance and depreciation as provided by law. In the event the revenues during any month are inadequate to make the required payment into said account the deficiency shall be made up and paid as aforesaid from the first available revenues thereafter received and same shall be in addition to aayments otherwise provided to be made in such succeeding month or months. The "Sewavage works Bond and Interest Redemption Fund" as aforesaid shall be used solely and only and is hereby pledged for the purpose of paying principal of and interest on the bonds herein authorized to be issued, Interest on said bonds accruing prior to complete construction of said sewerage system imp- rovements shall be paid from the proceeds of said bonds to the extent such interest is not available from funds received as accrued interest, and, upon delivery of said bonds and the receipt of the proceeds, a sum, including the accrued interest received, equal to not less than the interest to become due on such bonds on and prior to June 1, 1940, shall be withdrawn from said proceeds and placed in said "Sews€ age works Bond and Interest Redemption Fund" to pay said interest. Section S. while the bonds authorized hereunder or any of them remain outstanding and unpaid the rates for all services rendered by the said sewer system to said City and to -'its citizens, corporations or ary others served shall be reason- able and just; taking into account and consideration the cost and value of said system and the cost of maintaining and 6perating the same and the amounts necessary for the retirement of all bonds and the accruing interest on all such bonds as may be sold and are unpaid under the provisions of this ordinance, and there shall be charged such rates and amounts for sewerage service as shall be adequate to meet the requirements of this and the preceding sections ,hereof. Compensation for services rendered to said City shall be in like manner charged against the City and payment for same from the corporate funds shall be made monthly into the special fund created by this ordinance as other income and revenues of said sewerage system and shall be apportioned to operation and maintenance and bond and interest redemption as such other revenues. Said City covenants and agrees that so long as any of the bonds hereby authorized remain outstanding it will keep proper bookd of record and account, separate from all other municipal records and accounts, showing complete and correct entries of all transactions relating to said sewerage system and that the holders of any of said bonds shall have the right at all reasonable times to inspect the system and all records, accounts and data of the City relating thereto. Section 6. The said City of South Bend hereby covenants and agrees with the holder or holders of the bonds herein authorized to be issued, or any of them, that it will faithfully and punctually perform all duties with reference to said sewerage system required by the Constitution and laws of the State of Indiana, including the making and collecting of reasonable and sufficient rates for services rendered thereby, and will segregate the revenues of said system and make applic- ation thereof into the respective funds created by this -5-