Authorizing the Issuance of Revenue Bonds re: improvements to the Waterworks, not to exceed Twenty-Two Million Five hundred thousand dollars (22,500,000); including the issuance of notes in anticipation of Bonds.

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incidental expenses incurred in connection therewith and capitalized interest (all of which are deemed to be a part of the Project), and the costs of selling and issuing the 1997 Bonds and funding a debt service reserve as described herein. The 1997 Bonds shall rank on a parity for all purposes with the Parity Bonds. The 1997 Bonds shall be issued in denominations of Five Thousand Dollars ($5,000) or any integral multiple thereof, numbered consecutively from 1 upwazd, and dated as of the first day of the month in which they are sold. The 1997 Bonds shall beaz interest at a rate or rates not exceeding eight percent (8%) per annum (the exact rate or rates to be determined by bidding), and interest shall be payable semiannually on January 1 and July 1 in each year, beginning on January 1, 1998. Interest on the BANS and the 1997 Bonds shall be calculated according=fo a 360-day calendar year containing twelve 30-day months. The 1997 Bonds shall ~. mature beginning January 1, 1999 and on January 1 of each year thereafter over a period ending not later than January 1, 2013, substantially as set forth on the schedule on F.xhihit R, with such changes as are finally determined by the Mayor as the executive of the City (the "Executive") and the Controller as the fiscal officer of the City (the "Fiscal Officer"), as evidenced by delivery of the executed initial issue of the 1997 Bonds to the Registraz for authentication. All or a portion of the 1997 Bonds may be aggregated into and issued as one or more term bonds. The term bonds will be subject to mandatory sinking fund redemption with sinking fund payments and final maturities corresponding to the serial maturities described above. Sinking fund payments shall be applied to retire a portion of the term bonds as though it were a redemption of serial bonds, and, if more than one term bond of any maturity is outstanding, redemption of such maturity shall be made by lot. Sinking fund redemption payments shall be made in a principal amount equal to such serial maturities, plus accrued interest to the redemption date, but without premium or penalty. For all purposes of this Ordinance, such mandatory sinking fund redemption payments shall be deemed to be required payments of principal which mature on the date of such sinking fund payments. Appropriate changes shall be made in the definitive form of 1997 Bonds, relative to the form of 1997 Bonds contained in this Ordinance, to reflect any mandatory sinking fund redemption terms. (b) The City shall issue, if necessary, BANS for the purpose of procuring interim financing for the Project. Any such issuance shall be in accord with the provisions of Section 25 of this Ordinance. SECTION 3. P1edgP of 1Vet RevenuPC; PTmPnt of Principal and interest. The 1997 Bonds, and any bonds ranking on a parity therewith, including the Parity Bonds, as to principal, premium, if any, and interest, shall be payable solely from and are hereby secured by an irrevocable pledge of and shall constitute a charge upon all the net revenues (defined as gross revenues of the works after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) of the works (the "Net Revenues"). The City shall not be obligated to pay the 1997 Bonds or the interest thereon except from the Net Revenues, and the 1997 Bonds shall not constitute an indebtedness of the City within the meaning of the provisions and limitations of the constitution of the State of Indiana. -3-