9672-06 Authorizing the Acquistion and Installation of Improvements to the City's Sewage Works

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Section IX. Disposition of Proceeds of the Bonds; City of South Bend, Sewage Works Construction Account. The proceeds from the sale of each series of the Bonds shall be deposited and applied as follows: (a) The accrued interest and any premium received at the time of delivery of the Bonds or any unused discount shall be deposited in the Sewage Works Sinking Fund continued by this Ordinance. (b) The remaining proceeds from the sale of the Bonds shall be deposited in a bank or banks which are legally qualified depositories for the funds of the City, in the special account to be designated as "City of South Bend, 200_ Sewage Works Construction Account" (with the blank to be filled in with the year in which the particular series of Bonds are being sold) (the "Construction Account"). Amounts in the Construction Account 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 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 and 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 each series of the Bonds shall be entitled to a lien on the proceeds of the respective series of the Bonds until such proceeds are applied as required by this Ordinance and by Indiana law. Section X. Segregation 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 Prior Bond Ordinances 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 Prior Bond Ordinances 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 (2) 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, replacements, improvements, extensions or additions. Any balance in said fund in excess of the expected expenses of operation, repair and maintenance for the next succeeding month may be transferred to the Sewage Works Sinking BDDBOI 4347413v2 - 13 -