05-26-09 Common Council Meeting Agenda & Packet

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maintain aself-insurance program with catastrophic or similar coverage so long as such program meets the requirements of any applicable laws or regulations and is maintained in a manner consistent with programs maintained by similarly situated municipalities. Insurance proceeds or self-insurance proceeds shall be used in replacing or repairing the property destroyed or damaged, or if not used for that purpose, shall be treated and applied as Net Revenues. (c) So long as any of the 2009 Bonds are outstanding, the City shall not mortgage, pledge or otherwise encumber the works, or any part thereof, and shall not sell, lease or otherwise dispose of any part of the same, excepting only such machinery, equipment or other property as may be replaced, or shall no longer be necessary for use in connection with said utility; provided, the foregoing restrictions shall not apply to the extent approved otherwise by the owners of all 2009 Bonds then outstanding and the City receives an opinion of nationally recognized bond counsel to the effect that the transaction will not cause the interest on the 2009 Bonds to be included in gross income for federal income tax purposes. (d) If any of the 2009 Bonds are sold to the Indiana Finance Authority through the SRF Program or to the Indiana Bond Bank and remain outstanding, the City shall not borrow any money, enter into any contract or agreement or incur any other liabilities in connection with the waterworks, other than for normal operating expenditures, without the prior written consent of the Indiana Finance Authority or Indiana Bond Bank, as the case may be, if such undertaking would involve, commit or use the revenues of the waterworks. (e) Except as otherwise specifically provided in Section 20 of this Ordinance and in the Prior Ordinances, so long as any of the 2009 Bonds are outstanding, no additional bonds or other obligations pledging any portion of the revenues of the works shall be issued by the City, except such as shall be made junior and subordinate in all respects to the 2009 Bonds, unless all of the 2009 Bonds are defeased, redeemed or retired coincidentally with the delivery of such additional bonds or other obligations. Such subordinate obligations shall be subject to the provisions of Section 20(d). (f) The provisions of this Ordinance shall constitute a contract by and between the City and the owners of the 2009 Bonds, all the terms of which shall be enforceable by any such owner by any and all appropriate proceedings in law or in equity. After the issuance of the 2009 Bonds and so long as any of the principal thereof or interest or premium, if any, thereon remains unpaid, except as expressly provided herein, this Ordinance shall not be repealed or amended in any respect which, in the determination of the Council in its sole discretion, will materially and adversely affect the rights of such owners, nor shall the Council or any other body of the City adopt any law, ordinance or resolution which, in the determination of the Council in its sole discretion, in any way materially and adversely affects the rights of such owners; provided, however, that if any of the 2009 Bonds are sold to the Indiana Finance Authority through the SRF Program or to the Indiana Bond Bank and remain outstanding, the City shall obtain the prior written consent of the Indiana Finance Authority or the Indiana Bond Bank, as the case maybe, prior to any amendment of this Ordinance. (g) The provisions of this Ordinance shall be construed to create a trust in the proceeds of the sale of the 2009 Bonds for the uses and purposes herein set forth, and the owners of the 2009 Bonds shall retain a lien on such proceeds until the same are applied in accordance -26-