Authorizing and Providing for the Issuance of $2,000,000.00 Sewage Works (Revenue) Bonds for the Purpose of Defraying the Cost of Constructing a Sewage Treatment Works

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S. interest on the bonds herein authorized to be issued. Interest on said bonds accruing prior to complete construction of said sewerage system improvements shall be paid from the proceeds of said bonds to the extent such interest is not avail- able from fluids received as accrued interest, and, upon the 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received, equal to not less than the interest to become due on such bonds on and prior to May 15, 1940, shall be withdrawn from said proceeds and placed in said "Sewage Works Bond and Interest Redemption Fund" to pay said interest. Section 5. 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 any others served shall be reasonable 4ud just, taking into account and consideration the cost and value of said system and the cost of maintaining and operating the same 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 opportioned 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 books 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 Stateof Indiana, includ- ing the making and collecting of reasonable and sufficient rates for services rendered thereby, and will segregate the revenues of said system and make application thereof into the respective funds created by this ordinance; and the city hereby irrevocably covenants, binds end obligates itself not to sell, lease, mortggge 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, and the City further covenants and agrees with the holders of said bonds to maintain in good condition and continuously 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 holdek 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 collecting of sufficient rates and segregation of the revenues and the application thereof. Section S. 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 applica- tion 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 priority 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) further that the lien and security of and for any other bonds or obligations hereafter issued that are payable from the income or revenues of the sewage system shall be subject to the priority of the bonds hereby authorized as may from time to time be outstanding. Section�99 That the bonds hereby authorized in the principal amount of $2,000,000, consisting of a proportionate amount of each maturity and having, in the aggregate, an average maturity as nearly as may be equal to the average maturity of all the bonds hereby authorized shall be executed as herein provided as soon after