Autthorizing the acquistion, construction, and installation of certain improvements and extensions to sewage works, the issuance and sale of additional revenue bonds

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shall be expended only for the purpose of paying the costs of the Project, as described in the Ordinance and in the Act, together with all authorized costs relating thereto, including the costs of issuance of the 1998 Bonds, and as otherwise permitted or required by the Act. Any balance or balances remaining unexpended in the Construction Account after completion of the Project, which are not required to meet unpaid obligations incurred in connection with the acquisition, construction or installation of the Project, shall be used solely for one or more of the purposes permitted under the provisions of Indiana Code 5-1-13, as amended. Pursuant to the Act, the owners of the 1998 Bonds shall be entitled to a lien on the proceeds of the 1998 Bonds until such proceeds are applied as required by this Ordinance and by Indiana law. With respect to any 1998 Bonds sold to the Bond Bank or the State, to the extent that the total principal amount of the 1998 Bonds is not paid by the purchaser or drawn down by the City, the City shall reduce the principal amounts of the 1998 Bond maturities to effect such reduction in a manner that will still achieve as level annual debt service as practicable pursuant to the provisions of Section 3 of this Ordinance. Section 10. Segrreg_ation and Application of Sewage Works Revenues. All revenues derived from the operation of the Sewage Works and from the collection of sewage rates and charges shall be deposited in the Sewage Works Revenue Fund, created under the 1993 Bond Ordinance and continued hereby, and segregated and kept separate and apart from all other funds and bank accounts of the City. Out of said revenues the proper and reasonable expenses of operation, repair and maintenance of the Sewage Works shall be paid, the principal and interest of all bonds and fiscal agency charges of bank paying agents shall be paid, and the costs of replacements, extensions, additions and improvements shall be paid as hereinafter provided. On the last day of each calendar month there shall be credited from the Revenue Fund to the Sewage Works Operation and Maintenance Fund, created under the 1993 Bond Ordinance and continued hereby, a sufficient amount of the revenues of the Sewage Works so that the balance in said fund shall be sufficient to pay the expenses of operation, repair and maintenance for the then next succeeding two calendar months. The moneys credited to this fund shall be used for the payment of the reasonable and proper operation, repair and maintenance expenses of the Sewage Works on a day to day basis, but none of the moneys in such fund shall be used for depreciation, -17- :ODMA\PCDOCS\SBDOCS 1 U 49473