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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ordinance; and the City hereby irrevocably covenants, binds and obligates itself not to sell, lease, mortgage or in any manner dispose of said sewerage system, including any and all extensions, additions and appurtenances thereto that may be made or constructed, until all the bonds herein authorized to be issued shall have been paid in full, both principal and interest, end the City further covenants and agrees with the holders of said bonds to maintain in good condition and con- tinuously operate said sewerage system and to charge and collect such rates and charges for services rendered thereby so that the gross revenues will be sufficient at all times to provide for the payment of the operation and maintenance thereof and for the specified payments into the Bond and Interest Redemption Fund as provided herein. Section 7. Any holder of said bonds or of any of the coupons may either at law or in equity, by suit, action, mandamus or other proceedings enforce and compel performance of all duties prescribed by this ordinance and the law pursuant to which said bonds are issued, including the making and collection of sufficient rates and segregation of the revenues and the application thereof. Section 8. The bonds authorized to be issued hereunder and from time to time outstanding shall not be entitled to priority one over the other in the application of the revenues of said sewage system, regardless of the time or times of their issuance, it being the intention that there shall be no prior- ity among the bonds authorized to be issued under the provisions of this ordinance, regardless of the fact that they may be actually issued and delivered at different times, and provided that said city may at any time prior to the expiration of eighteen (18) months from the ate of final adoption of this ordinance authorize and provide for the iorMA'Dee of additional bonds to the principal amount of not exceeding $300,000 for the purpose of paying the balance of the cost of the sewage system improvements as hereinbefore contemplated or for otherwise extend — King, improving or bettering the sewer system of said city, such additional bonds to mature in the same proportionate amounts and over the same period of years as the bonds hereinbefore authorized and to mature on April 1 of the respective years with interest at a rate not exeeding the rate barne by the bonds hereby authorized, and such additional bonds, when so authorized and issued, shall be payable from the revenues of the works equally with the bonds hereby authorized without preference, distinction or priority; and provided further that the lien and security of and for any other bonds or obligations hereafter issued, except those to the amount of $300,000 herein described, that are made payable from the income and revenues of the sewage system shall be subject to the priority of the bonds hereby authorized and the bonds to the amount of $3002000 hereinbefore described as may from time to time be outstanding. Section 2 That the bonds hereby authorized in the principal amount of $615,000 shall be executed as herein provided as soon after the doption of this ordinance as may be,,and thereupon the Uity Controller and the Board of Public Works are hereby authorized and directed to determine the form of contract for the sale of said bonds and to give at least two days notice of said sale by publish- ing one notice thereof in the South Bend Tribune and the South Bend News Times, both published in South Bend, Indiana, fixing the time and place of receiving bids. Said Bonds shall be sold to the best bidder. It is provided, however, that none of said' bonds shall be so delivered until the lapse of at least twenty (20) days from the date this ordinance becomes effective as provided by law. The proceeds derived from the itsm „oee of the said bonds after the withdrawal of the sum provided in Section 4 hereof for interest shall be used and paid out upon estimates and approval of engineers, William S. Moore Consulting Engineer, or their successors, only for the purpose of defraying the cost of constructing the sewage system improvements for said city as inferred to in the preamble of this ordinance. Pending expenditures for the purpose aforesaid, such proceeds shall be deposited in a bank or banks which are members of the Federal Reserve System as a special construction fund account. Any surplus remaining after completion of such construction shall be paid into the '"Sewage Works Bond and Interest Redemption Fund " as hereinbefore created. 41 Section 10. That the rates to be charged for the several classes of users or property served by the municipal sewer system when said system is established as a revenue producing undertaking as hereinbefore provided are estimated as follows: - 6 -