HomeMy Public PortalAbout1991-04"
O R D I N A N C E N O . 1 9 ' ' I _ ��
A n O r d i n a n c e c o n c e r n i n g t h e a d v a n c e r e f u n d i n g b y t h e C i t y o f G r e e n c a s t l e o f
i t s S e w a g e W o r k s R e v e n u e B o n d s , S e r i e s 1 9 8 0 ; a u t h o r i z i n g t h e i s s u a n c e o f
S e w a g e W o r k s R e f u n d i n g R e v e n u e B o n d s o f 1 9 9 1 f o r s u c h p u r p o s e ; p r o v i d i n g
f o r t h e c o l l e c t i o n , s e g r e g a t i o n a n d d i s t r i b u t i o n o f t h e r e v e n u e s o f t h e s e w a g e
w o r k s a n d t h e s a f e g u a r d i n g o f t h e i n t e r e s t s o f t h e o w n e r s o f t h e S e w a g e
W o r k s R e f u n d i n g R e v e n u e B o n d s o f 1 9 9 1 , o t h e r m a t t e r s c o n n e c t e d t h e r e w i t h ;
a n d r e p e a l i n g o r d i n a n c e s i n c o n s i s t e n t h e r e w i t h
W H E R E A S , t h e C i t y o f G r e e n c a s t l e , I n d i a n a ( t h e " C i t y " ) h a s h e r e t o f o r e e s t a b l i s h e d ,
c o n s t r u c t e d a n d f i n a n c e d a m u n i c i p a l s e w a g e w o r k s a n d n o w o w n s a n d o p e r a t e s t h e
s e w a g e w o r k s p u r s u a n t t o I C 3 6 - 9 - 2 3 , a n d o t h e r a p p l i c a b l e l a w s ; a n d
W H E R E A S , t h e C o m m o n C o u n c i l f i n d s t h a t c e r t a i n h e r e i n a f t e r d e s c r i b e d
o u t s t a n d i n g b o n d s o f t h e s e w a g e w o r k s s h o u l d b e r e f u n d e d t o o b t a i n a r e d u c t i o n i n
i n t e r e s t p a y m e n t s a n d e f f e c t a s a v i n g s t o t h e C i t y ; t h a t t h e r e f u n d i n g o f t h o s e
o u t s t a n d i n g b o n d s , t o g e t h e r w i t h a c c r u e d i n t e r e s t t h e r e o n a n d i n c l u d i n g a l l c o s t s r e l a t e d
t o t h e r e f u n d i n g , t o b e p a i d f r o m b o n d p r o c e e d s , w i l l r e q u i r e f u n d s i n t h e a m o u n t o f
" $ 8 9 0 , 0 0 0 ; t h a t t h e c o s t o f t h e t o t a l r e f u n d i n g c a n n o t b e p r o v i d e d f o r o u t o f f u n d s o f t h e
s e w a g e w o r k s n o w o n h a n d a n d t h e r e f u n d i n g s h o u l d b e a c c o m p l i s h e d b y t h e u s e o f
c e r t a i n f u n d s o n h a n d a n d t h e i s s u a n c e o f r e v e n u e b o n d s o f t h e s e w a g e w o r k s ; a n d
W H E R E A S , t h e C o m m o n C o u n c i l f i n d s t h a t t h e r e a r e n o w o u t s t a n d i n g b o n d s i s s u e d
o n a c c o u n t o f t h e c o n s t r u c t i o n o f t h e C i t y ' s s e w a g e w o r k s a n d p a y a b l e o u t o f t h e
r e v e n u e s t h e r e f r o m d e s i g n a t e d " S e w a g e W o r k s R e v e n u e B o n d s , S e r i e s 1 9 8 0 " d a t e d
S e p t e m b e r 1 , 1 9 8 0 ( t h e " 1 9 8 0 B o n d s " ) , o r i g i n a l l y i s s u e d i n t h e a m o u n t o f $ 1 , 2 0 0 , 0 0 0 , n o w
o u t s t a n d i n g i n t h e a m o u n t o f $ 8 5 0 , 0 0 0 , a n d m a t u r i n g a n n u a l l y o n J a n u a r y 1 i n t h e y e a r s
1 9 9 2 t o 2 0 0 1 i n c l u s i v e , w h i c h 1 9 8 0 B o n d s c o n s t i t u t e a f i r s t c h a r g e u p o n t h e N e t R e v e n u e s
o f t h e s e w a g e w o r k s ; a n d
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s
• WHEREAS, the Common Council finds that the 1980 Bonds (the "Refunded Bonds ")
should be refunded pursuant to the provisions of IC 5 -1 -5 to enable the City to obtain a
reduction in interest payments and effect a savings to the City; and
WHEREAS, the Common Council finds that it is advisable to issue its refunding
revenue bonds in the amount of $890,000 and to use the proceeds, together with funds on
hand to refund the Refunded Bonds, and to pay for all costs related to the refunding and
the issuance of the bonds hereunder; and
WHEREAS, the Common Council now finds that all conditions precedent to the
adoption of an ordinance authorizing the issuance of revenue bonds have been complied
with in accordance with the provisions of IC 5 -1 -5 and IC 36 -9 -23 (collectively, the
"Act ")
NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY
OF GREENCASTLE THAT:
• Sec. 1. Issuance of Refunding Bonds (a) The City, being the owner of and engaged
in operating an unencumbered sewage works supplying the City, its inhabitants, and the
residents adjacent thereto, with sewage disposal and treatment services, now finds it
necessary to provide funds for refunding the Refunded Bonds thereby reducing its
interest payments and effecting a savings, as reported by the City's financial advisor,
H. J. Umbaugh and Associates. The terms "sewage works," "sewage works system,"
"works," "system," and words of like import where used in this ordinance shall be
construed to mean and include the existing sewage works system and all real estate and
equipment used in connection therewith and appurtenances thereto, and all extensions,
additions and improvements thereto and replacements thereof now or at any time
hereafter constructed or acquired.
•
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" ( b ) T h e C i t y s h a l l i s s u e i t s " S e w a g e W o r k s R e f u n d i n g R e v e n u e B o n d s o f 1 9 9 1 , ( t h e
" R e f u n d i n g B o n d s " ) i n t h e a g g r e g a t e p r i n c i p a l a m o u n t o f $ 8 9 0 , 0 0 0 f o r t h e p u r p o s e o f
p r o c u r i n g f u n d s t o b e a p p l i e d t o t h e r e f u n d i n g o f t h e R e f u n d e d B o n d s , t h e p a y m e n t o f
c o s t s o f i s s u a n c e , a n d a l l o t h e r c o s t s r e l a t e d t o t h e r e f u n d i n g . T h e C i t y s h a l l a p p l y
m o n e y s c u r r e n t l y h e l d f o r t h e p a y m e n t o f d e b t s e r v i c e o n t h e R e f u n d e d B o n d s t o t h e
r e f u n d i n g a s p r o v i d e d i n S e c t i o n 7 .
T h e R e f u n d i n g B o n d s s h a l l b e i s s u e d i n t h e d e n o m i n a t i o n o f F i v e T h o u s a n d D o l l a r s
( $ 5 , 0 0 0 ) e a c h o r i n t e g r a l m u l t i p l e s t h e r e o f , n u m b e r e d c o n s e c u t i v e l y f r o m 1 u p w a r d ,
d a t e d a s o f t h e f i r s t d a y o f t h e m o n t h i n w h i c h t h e y a r e s o l d a n d i n t e r e s t s h a l l b e p a y a b l e
s e m i a n n u a l l y o n J a n u a r y 1 a n d J u l y 1 i n e a c h y e a r , b e g i n n i n g o n J u l y 1 , 1 9 9 1 . T h e
R e f u n d i n g B o n d s s h a l l b e s o l d a t a p r i c e o f $ 8 7 3 , 9 8 0 . T h e R e f u n d i n g B o n d s s h a l l b e
p a y a b l e i n l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a , a t t h e p r i n c i p a l o f f i c e o f t h e
P a y i n g A g e n t ( a s h e r e i n a f t e r d e f i n e d ) a n d s u c h R e f u n d i n g B o n d s s h a l l b e a r i n t e r e s t a t t h e
" r a t e s p e r a n n u m , a n d m a t u r e o n J a n u a r y 1 i n t h e y e a r s a n d a m o u n t s a s s e t f o r t h b e l o w :
Y e a r
A m o u n t
I n t e r e s t R a t e
1 9 9 2
$ 7 0 , 0 0 0
5 . 7 5 %
1 9 9 3
7 0 , 0 0 0
5 . 9 0
1 9 9 4
7 5 , 0 0 0
6 . 0 0
1 9 9 5
8 0 , 0 0 0
6 . 1 5
1 9 9 6
8 5 , 0 0 0
6 . 3 0
1 9 9 7
9 0 , 0 0 0
6 . 4 0
1 9 9 8
9 5 , 0 0 0
6 . 5 0
1 9 9 9
1 0 0 , 0 0 0
6 . 6 0
2 0 0 0
1 1 0 , 0 0 0
6 . 7 0
2 0 0 1
1 1 5 , 0 0 0
6 . 8 0
S e c . 2 . R e g i s t r a r a n d P a v i n g A g e n t T h e M e r c h a n t s N a t i o n a l B a n k & T r u s t
C o m p a n y o f I n d i a n a p o l i s i n I n d i a n a p o l i s , I n d i a n a i s h e r e b y s e l e c t e d a n d a p p o i n t e d t o a s
R e g i s t r a r a n d P a y i n g A g e n t f o r t h e R e f u n d i n g B o n d s ( t h e " R e g i s t r a r " o r " P a y i n g A g e n t " ) .
T h e R e g i s t r a r i s h e r e b y c h a r g e d w i t h t h e r e s p o n s i b i l i t y o f a u t h e n t i c a t i n g t h e R e f u n d i n g
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0
• Bonds. The Clerk- Treasurer is hereby authorized to enter into such agreements or
understandings with the Registrar as will enable the institution to perform the services
required of a registrar and paying agent. The Clerk- Treasurer is further authorized to
pay such fees as the Registrar may charge for the services it provides as Registrar and
Paying Agent and such fees may be paid from the Sinking Fund established to pay the
principal of and interest on the Refunding Bonds as fiscal agency charges.
The principal of the Refunding Bonds shall be payable at the principal corporate
trust office of the Paying Agent. All payments of interest on the Refunding Bonds shall
be paid by check, mailed one business day prior to the interest payment date to the
registered owners thereof as the names appear as of the fifteenth day of the month
preceding the interest payment date and at the addresses as they appear on the
registration books kept by the Registrar or at such other address as is provided to the
Paying Agent in writing by such registered owner. All payments on the Refunding Bonds
• shall be made in any coin or currency of the United States of America, which on the date
of such payment, shall be legal tender for the payment of public and private debts.
Each Refunding Bond shall be transferable or exchangeable only upon the books of
the City kept for that purpose at the principal corporate trust office of the Registrar by
the registered owner in person, or by its attorney duly authorized in writing, upon
surrender of such Refunding Bond together with a written instrument of transfer or
exchange satisfactory to the Registrar duly executed by the registered owner, or its
attorney duly authorized in writing, and thereupon a new fully registered Refunding Bond
or Refunding Bonds in an authorized aggregate principal amount and of the same
maturity, shall be executed and delivered in the name of the transferee or transferees or
the registered owner, as the case may be, in exchange therefor. The costs of such
transfer or exchange shall be borne by the City except for any tax or governmental
charge required to be paid with respect to the transfer or exchange, which taxes or
0
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governmental charges are payable by the person requesting such transfer or exchange.
• The City, Registrar and Paying Agent for the Refunding Bonds may treat and consider
the person in whose name such Refunding Bonds are registered as the absolute owner
thereof for all purposes including for the purpose of receiving payment of, or on account
of, the principal thereof and interest due thereon.
The Registrar and Paying Agent may at any time resign as Registrar and Paying
Agent upon giving 30 days' notice in writing to the City and by first class mail to each
registered owner of the Refunding Bonds then outstanding, and such resignation will take
effect at the end of such 30 day period or upon the earlier appointment of a successor
registrar and paying agent by the City. Any such notice to the City may be served
personally or sent by registered mail. The Registrar and Paying Agent may be removed
at any time as Registrar and Paying .Agent by the City, in which event the City may
appoint a successor registrar and paying agent. The City shall notify each registered
•
owner of the
Refunding Bonds
then outstanding by first class
mail of the removal of the
Registrar and
Paying Agent.
Notices to the registered owners of the Refunding Bonds
shall be deemed to be given when mailed by first class mail to the addresses of such
registered owners as they appear on the registration books kept by the Registrar.
Upon the appointment of any successor registrar and paying agent by the City, the
Clerk- Treasurer is authorized and directed to enter into such agreements and
understandings with such successor registrar and paying agent as will enable the
institution to perform the services required of a registrar and paying agent for the bonds.
The Clerk- Treasurer is further authorized to pay such fees as the successor registrar and
paying agent may charge for the services it provides as registrar and paying agent and
such fees may be paid from the Sewage Works Sinking Fund created in Section 13 hereof.
Any predecessor registrar and paying agent shall deliver all of the Refunding Bonds and
•
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u
• any cash or investments in its possession with respect thereto, together with the
registration books, to the successor registrar and paying agent.
Interest on the Refunding Bonds shall be payable from the interest payment date to
which interest has been paid next preceding the authentication date of the Refunding
Bonds unless the Refunding Bonds are authenticated after the fifteenth day of the month
preceding an interest payment date and on or before such interest payment date in which
case they shall bear interest from such interest payment date, or unless the Refunding
Bonds are authenticated on or before June 15, 1991, in which case they shall bear
interest from the original date until the principal shall be fully paid.
Sec. 3. Redemption of Refunding Bonds The Refunding Bonds maturing on and
after January 1, 1998 are redeemable at the option of the City on January 1, 1997, or any
date thereafter, on thirty (30) days' notice, in whole or in part, in inverse order of
maturity and by lot within a maturity, at face value, with the following premiums:
• 2% if redeemed on January 1, 1997, or thereafter
on or before December 31, 1997;
1% if redeemed on January 1, 1998, or thereafter
on or before December 31, 1998;
0% if redeemed on January 1, 1999, or thereafter
prior to maturity;
plus accrued interest to the date of redemption.
Notice of such redemption shall be given at least thirty (30) days prior to the date
fixed for redemption by mail unless the notice is waived by the registered owner of a
Refunding Bond. Such notice shall be mailed to the address of the registered owners as
shown on the registration records of the City. The notice shall specify the date and
place of redemption and sufficient identification of the Refunding Bonds called for
redemption. The place of redemption shall be determined by the City. Interest on the
Refunding Bonds so called for redemption shall cease on the redemption date fixed in
such notice if sufficient funds are available at the principal office of the Paying Agent to
J
W1
I
" p a y t h e r e d e m p t i o n p r i c e o n t h e d a t e s o n a m e d . C o i n c i d e n t a l l y w i t h t h e p a y m e n t o f t h e
r e d e m p t i o n p r i c e , t h e R e f u n d i n g B o n d s s o c a l l e d f o r r e d e m p t i o n s h a l l b e s u r r e n d e r e d f o r
c a n c e l l a t i o n .
S e c . 4 . E x e c u t i o n a n d N e g o t i a b i l i t y E a c h o f t h e R e f u n d i n g B o n d s s h a l l b e
e x e c u t e d i n t h e n a m e o f t h e C i t y b y t h e m a n u a l o r f a c s i m i l e s i g n a t u r e o f t h e M a y o r a n d
a t t e s t e d b y t h e m a n u a l o r f a c s i m i l e s i g n a t u r e o f i t s C l e r k - T r e a s u r e r , a n d t h e s e a l o f t h e
C i t y s h a l l b e a f f i x e d , i m p r i n t e d o r i m p r e s s e d t o o r o n e a c h o f t h e R e f u n d i n g B o n d s
m a n u a l l y , b y f a c s i m i l e o r a n y o t h e r m e a n s ; a n d t h e s e o f f i c i a l s , b y t h e e x e c u t i o n o f a
S i g n a t u r e a n d N o L i t i g a t i o n C e r t i f i c a t e , s h a l l a d o p t a s a n d f o r t h e i r o w n p r o p e r
s i g n a t u r e s t h e f a c s i m i l e s i g n a t u r e s a p p e a r i n g o n t h e R e f u n d i n g B o n d s . I n c a s e a n y
o f f i c e r w h o s e s i g n a t u r e o r f a c s i m i l e s i g n a t u r e a p p e a r s o n t h e R e f u n d i n g B o n d s s h a l l
c e a s e t o b e s u c h o f f i c e r b e f o r e t h e d e l i v e r y o f t h e R e f u n d i n g B o n d s , t h e s i g n a t u r e o f
s u c h o f f i c e r s h a l l n e v e r t h e l e s s b e v a l i d a n d s u f f i c i e n t f o r a l l p u r p o s e s t h e s a m e a s i f s u c h
" o f f i c e r h a d r e m a i n e d i n o f f i c e u n t i l s u c h d e l i v e r y .
T h e R e f u n d i n g B o n d s s h a l l h a v e a l l o f t h e q u a l i t i e s a n d i n c i d e n t s o f n e g o t i a b l e
i n s t r u m e n t s u n d e r t h e l a w s o f t h e S t a t e o f I n d i a n a , s u b j e c t t o t h e p r o v i s i o n s f o r
r e g i s t r a t i o n h e r e i n .
T h e R e f u n d i n g B o n d s s h a l l a l s o b e a u t h e n t i c a t e d b y t h e m a n u a l s i g n a t u r e o f t h e
R e g i s t r a r , a n d n o R e f u n d i n g B o n d s h a l l b e v a l i d o r b e c o m e o b l i g a t o r y f o r a n y p u r p o s e
u n t i l t h e c e r t i f i c a t e o f a u t h e n t i c a t i o n t h e r e o n h a s b e e n s o e x e c u t e d .
S e c . 5 . F o r m o f B o n d s T h e f o r m a n d t e n o r o f t h e R e f u n d i n g B o n d s s h a l l b e
s u b s t a n t i a l l y a s f o l l o w s , a l l b l a n k s t o b e f i l l e d i n p r o p e r l y p r i o r t o d e l i v e r y ;
L
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L]
UNITED STATES OF AMERICA
STATE OF INDIANA
Interest Maturity Original
Rate Date Date
COUNTY OF PUTNAM
Authentication
Date
CITY OF GREENCASTLE
SEWAGE WORKS REFUNDING REVENUE
BOND OF 1991
REGISTERED OWNER:
PRINCIPAL SUM:
CUSIP
The City of Greencastle, in Putnam County, State of Indiana, for value
received, hereby promises to pay to the Registered Owner named above or
registered assigns, solely out of the special revenue fund hereinafter referred
to, the Principal Sum set forth above on the Maturity Date set forth above
(unless this bond be subject to and be called for redemption prior to maturity
• as hereinafter provided), and to pay interest thereon at the Interest Rate per
annum stated above from the interest payment date to which interest has
been paid next preceding the Authentication Date of this bond unless this bond
is authenticated after the fifteenth day of the month preceding an interest
payment date and on or before such interest payment date in which case it
shall bear interest from such interest payment date or unless this bond is
authenticated on or before June 15, 1991, in which case it shall bear interest
from the Original Date, until the principal is paid, which interest is payable
semiannually on the first days of January and July in each year, beginning on
July 1, 1991.
The principal of this bond is payable at the principal office of Merchants
National Bank do Trust Company, of Indianapolis (the "Registrar" or "Paying
Agent "), in the City of Indianapolis, Indiana. All payments of interest on this
bond shall be paid by check, mailed one business day prior to the interest
payment date to the registered owner hereof as of the fifteenth day of the
month preceding such interest payment date at the address as it appears on
the registration books kept by the Registrar or at such other address as is
provided to the Paying Agent in writing by the registered owner. All
payments on the bond shall be made in any coin or currency of the United
States of America, which on the dates of such payment, shall be legal tender
for the payment of public and private debts.
L l
THE CITY SHALL NOT BE OBLIGATED TO PAY THIS BOND OR TIME
INTEREST HEREON EXCEPT FROM THE HEREINAFTER DESCRIBED
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" S P E C I A L F U N D , A N D N E I T H E R T H I S B O N D N O R T H E I S S U E O F W H I C H I T
I S A P A R T S H A L L I N A N Y R E S P E C T C O N S T I T U T E A C O R P O R A T E
I N D E B T E D N E S S O F T H E C I T Y W I T H I N T H E P R O V I S I O N S A N D L I M I T A T I O N S
O F T H E C O N S T I T U T I O N O F T H E S T A T E O F I N D I A N A .
"
T h e t e r m s a n d p r o v i s i o n s o f t h i s b o n d a r e c o n t i n u e d o n t h e r e v e r s e s i d e
h e r e o f a n d s u c h t e r m s a n d p r o v i s i o n s s h a l l f o r a l l p u r p o s e s h a v e t h e s a m e
e f f e c t a s t h o u g h f u l l y s e t f o r t h a t t h i s p l a c e .
I t i s h e r e b y c e r t i f i e d a n d r e c i t e d t h a t a l l a c t s , c o n d i t i o n s a n d t h i n g s
r e q u i r e d t o b e d o n e p r e c e d e n t t o a n d i n t h e e x e c u t i o n , i s s u a n c e a n d d e l i v e r y
o f t h i s b o n d h a v e b e e n d o n e a n d p e r f o r m e d i n r e g u l a r a n d d u e f o r m a s
p r o v i d e d b y l a w .
T h i s b o n d s h a l l n o t b e v a l i d o r b e c o m e o b l i g a t o r y f o r a n y p u r p o s e u n t i l
t h e c e r t i f i c a t e o f a u t h e n t i c a t i o n h e r e o n s h a l l h a v e b e e n e x e c u t e d b y a n
a u t h o r i z e d r e p r e s e n t a t i v e o f t h e R e g i s t r a r .
I N W I T N E S S W H E R E O F , t h e C i t y o f G r e e n c a s t l e , i n P u t n a m C o u n t y ,
I n d i a n a , h a s c a u s e d t h i s b o n d t o b e e x e c u t e d i n i t s c o r p o r a t e n a m e b y t h e
m a n u a l o r f a c s i m i l e s i g n a t u r e o f t h e M a y o r , i t s c o r p o r a t e s e a l t o b e h e r e u n t o
a f f i x e d , i m p r i n t e d o r i m p r e s s e d b y a n y m e a n s a n d a t t e s t e d m a n u a l l y o r b y
f a c s i m i l e b y i t s C l e r k - T r e a s u r e r .
[ S E A L )
A t t e s t :
C l e r k - T r e a s u r e r
C I T Y O F G R E E N C A S T L E , I N D I A N A
B y
M a y o r
R E G I S T R A R ' S C E R T I F I C A T E O F A U T H E N T I C A T I O N
"
T h i s b o n d i s o n e o f t h e b o n d s d e s c r i b e d i n t h e w i t h i n - m e n t i o n e d
O r d i n a n c e .
M E R C H A N T S N A T I O N A L B A N K &
T R U S T C O M P A N Y O F I N D I A N A P O L I S
a s R e g i s t r a r
C - 9
" B Y
A u t h o r i z e d R e o r e s e n t a t
( T o b e p r i n t e d o n R e v e r s e S i d e )
T h i s b o n d i s o n e o f a n a u t h o r i z e d i s s u e o f b o n d s o f t h e C i t y o f
G r e e n c a s t l e , o f l i k e d a t e , t e n o r a n d e f f e c t , e x c e p t a s t o r a t e s o f i n t e r e s t a n d
d a t e s o f m a t u r i t y ; a g g r e g a t i n g E i g h t H u n d r e d N i n e t y T h o u s a n d D o l l a r s
( $ 8 9 0 , 0 0 0 ) ; n u m b e r e d c o n s e c u t i v e l y f r o m 1 ; i s s u e d f o r t h e p u r p o s e o f
r e f u n d i n g t h e R e f u n d e d B o n d s ( a s d e f i n e d i n t h e h e r e i n a f t e r d e f i n e d
O r d i n a n c e ) . T h i s b o n d i s i s s u e d p u r s u a n t t o a n O r d i n a n c e a d o p t e d b y t h e
C o m m o n C o u n c i l o f s a i d C i t y o n t h e _ d a y o f F e b r u a r y , 1 9 9 1 , e n t i t l e d " A n
O r d i n a n c e c o n c e r n i n g t h e a d v a n c e r e f u n d i n g b y t h e C i t y o f G r e e n c a s t l e ,
I n d i a n a , o f i t s S e w a g e W o r k s R e v e n u e B o n d s , S e r i e s 1 9 8 0 ; a u t h o r i z i n g t h e
i s s u a n c e o f S e w a g e W o r k s R e f u n d i n g R e v e n u e B o n d s o f 1 9 9 1 f o r s u c h p u r p o s e ;
p r o v i d i n g f o r t h e c o l l e c t i o n , s e g r e g a t i o n a n d d i s t r i b u t i o n o f t h e r e v e n u e s o f
s a i d s e w a g e w o r k s a n d t h e s a f e g u a r d i n g o f t h e i n t e r e s t s o f t h e o w n e r s o f t h e
S e w a g e W o r k s R e f u n d i n g R e v e n u e B o n d s o f 1 9 9 1 , o t h e r m a t t e r s c o n n e c t e d
t h e r e w i t h ; a n d r e p e a l i n g o r d i n a n c e s i n c o n s i s t e n t h e r e w i t h " ( t h e " O r d i n a n c e " ) ,
a n d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f I n d i a n a l a w , i n c l u d i n g w i t h o u t
l i m i t a t i o n I n d i a n a C o d e 5 - 1 - 5 a n d I n d i a n a C o d e 3 6 - 9 - 2 3 ( h e r e i n a f t e r
c o l l e c t i v e l y , t h e " A c t " ) , t h e p r o c e e d s o f w h i c h b o n d s a r e t o b e a p p l i e d s o l e l y
t o t h e a d v a n c e r e f u n d i n g a n d e c o n o m i c d e f e a s a n c e o f t h e R e f u n d e d B o n d s ,
i n c l u d i n g t h e i n c i d e n t a l e x p e n s e s i n c u r r e d i n c o n n e c t i o n t h e r e w i t h .
" P u r s u a n t t o t h e p r o v i s i o n s o f t h e A c t a n d t h e O r d i n a n c e , t h e p r i n c i p a l o f
a n d i n t e r e s t o n t h i s b o n d a n d a l l o t h e r b o n d s o f s a i d i s s u e a n d a n y b o n d s
h e r e a f t e r i s s u e d o n a p a r i t y t h e r e w i t h a r e p a y a b l e s o l e l y f r o m t h e S e w a g e
W o r k s S i n k i n g F u n d c r e a t e d b y t h e O r d i n a n c e ( t h e " S i n k i n g F u n d " ) t o b e
p r o v i d e d f r o m t h e N e t R e v e n u e s ( h e r e i n d e f i n e d a s t h e g r o s s r e v e n u e s o f t h e
s e w a g e w o r k s o f t h e C i t y r e m a i n i n g a f t e r t h e p a y m e n t o f t h e r e a s o n a b l e
e x p e n s e s o f o p e r a t i o n , r e p a i r a n d m a i n t e n a n c e ) o f t h e s e w a g e w o r k s n o w
o w n e d o r h e r e a f t e r a c q u i r e d b y t h e C i t y .
P u r s u a n t t o t h e O r d i n a n c e a n d t h e E s c r o w A g r e e m e n t d e f i n e d t h e r e i n ,
t h e C i t y o f G r e e n c a s t l e h a s s e t a s i d e s e c u r i t i e s ( p u r c h a s e d f r o m p r o c e e d s o f
t h e b o n d s o f t h i s i s s u e a n d f u n d s o n h a n d o f t h e s e w a g e w o r k s ) , a n d c e r t a i n
c a s h i n a T r u s t A c c o u n t t o p r o v i d e p a y m e n t o f p r i n c i p a l o f , p r e m i u m , a n d
i n t e r e s t o n t h e R e f u n d e d B o n d s b y t h e p u r c h a s e o f o b l i g a t i o n s o f t h e U n i t e d
S t a t e s o f A m e r i c a . I f t h e r e a r e i n s u f f i c i e n t f u n d s h e l d u n d e r t h e E s c r o w
A g r e e m e n t t o p a y t h e R e f u n d e d B o n d s , t h e R e f u n d e d B o n d s s h a l l , t o t h a t
e x t e n t , b e p a i d f r o m N e t R e v e n u e s p r i o r a n d s u p e r i o r t o t h e c l a i m o f t h e
b o n d s .
"
T h e C i t y o f G r e e n c a s t l e i r r e v o c a b l y p l e d g e s t h e e n t i r e N e t R e v e n u e s o f
t h e s e w a g e w o r k s t o t h e p r o m p t p a y m e n t o f t h e p r i n c i p a l o f a n d i n t e r e s t o n
t h e b o n d s a u t h o r i z e d b y t h e O r d i n a n c e , o f w h i c h t h i s i s o n e , a n d a n y b o n d s
r a n k i n g o n a p a r i t y t h e r e w i t h , t o t h e e x t e n t n e c e s s a r y f o r t h a t p u r p o s e , a n d
c o v e n a n t s t h a t i t w i l l c a u s e t o b e f i x e d , m a i n t a i n e d a n d c o l l e c t e d s u c h r a t e s
a n d c h a r g e s f o r s e r v i c e s r e n d e r e d b y t h e u t i l i t y a s a r e s u f f i c i e n t i n e a c h y e a r
C - 1 0
" f o r t h e p a y m e n t o f t h e p r o p e r a n d r e a s o n a b l e e x p e n s e s o f o p e r a t i o n , r e p a i r
a n d m a i n t e n a n c e o f t h e s e w a g e w o r k s a n d f o r t h e p a y m e n t o f t h e s u m s
r e q u i r e d t o b e p a i d i n t o t h e S i n k i n g F u n d u n d e r t h e p r o v i s i o n s o f t h e A c t a n d
t h e O r d i n a n c e . I f t h e C i t y o r t h e p r o p e r o f f i c e r s t h e r e o f s h a l l f a i l o r r e f u s e
t o s o f i x , m a i n t a i n a n d c o l l e c t s u c h r a t e s o r c h a r g e s , o r i f t h e r e b e a d e f a u l t
i n t h e p a y m e n t o f t h e i n t e r e s t o n o r p r i n c i p a l o f t h i s b o n d , t h e o w n e r o f t h i s
b o n d s h a l l h a v e a l l o f t h e r i g h t s a n d r e m e d i e s p r o v i d e d f o r i n t h e A c t ,
i n c l u d i n g t h e r i g h t t o h a v e a r e c e i v e r a p p o i n t e d t o a d m i n i s t e r t h e w o r k s a n d
t o c h a r g e a n d c o l l e c t r a t e s s u f f i c i e n t t o p r o v i d e f o r t h e p a y m e n t o f t h i s b o n d
a n d t h e i n t e r e s t h e r e o n .
T h e C i t y o f G r e e n c a s t l e f u r t h e r c o v e n a n t s t h a t i t w i l l s e t a s i d e a n d p a y
i n t o i t s S i n k i n g F u n d m o n t h l y , a s a v a i l a b l e , o r m o r e o f t e n i f n e c e s s a r y , a
s u f f i c i e n t a m o u n t o f t h e N e t R e v e n u e s o f t h e w o r k s f o r p a y m e n t o f ( a ) t h e
i n t e r e s t o n a l l b o n d s w h i c h b y t h e i r t e r m s a r e p a y a b l e f r o m t h e r e v e n u e s o f
t h e s e w a g e w o r k s , a s s u c h i n t e r e s t s h a l l f a l l d u e , ( b ) t h e n e c e s s a r y f i s c a l
a g e n c y c h a r g e s f o r p a y i n g b o n d s a n d i n t e r e s t , ( c ) t h e p r i n c i p a l o f a l l b o n d s
w h i c h b y t h e i r t e r m s a r e p a y a b l e f r o m t h e r e v e n u e s o f t h e s e w a g e w o r k s , a s
s u c h p r i n c i p a l s h a l l f a l l d u e , a n d ( d ) a n a d d i t i o n a l a m o u n t a s a m a r g i n o f
s a f e t y t o m a i n t a i n t h e d e b t s e r v i c e r e s e r v e r e q u i r e d b y t h e O r d i n a n c e . S u c h
r e q u i r e d p a y m e n t s s h a l l c o n s t i t u t e a f i r s t c h a r g e u p o n a l l t h e N e t R e v e n u e s o f
t h e s e w a g e w o r k s s u b j e c t t o S e c t i o n 1 5 o f t h e O r d i n a n c e .
T h e b o n d s o f t h i s i s s u e m a t u r i n g o n a n d a f t e r J a n u a r y 1 , 1 9 9 8 , a r e
r e d e e m a b l e a t t h e o p t i o n o f t h e C i t y o n J a n u a r y 1 , 1 9 9 7 , o r a n y d a t e
t h e r e a f t e r , o n t h i r t y ( 3 0 ) d a y s ' n o t i c e , i n w h o l e o r i n p a r t , i n i n v e r s e o r d e r o f
" m a t u r i t y a n d b y l o t w i t h i n a m a t u r i t y , a t f a c e v a l u e , t o g e t h e r w i t h t h e
f o l l o w i n g p r e m i u m s :
2 % i f r e d e e m e d o n J a n u a r y 1 , 1 9 9 7 , o r t h e r e a f t e r
o n o r b e f o r e D e c e m b e r 3 1 , 1 9 9 7 ;
1 % i f r e d e e m e d o n J a n u a r y 1 , 1 9 9 8 , o r t h e r e a f t e r
o n o r b e f o r e D e c e m b e r 3 1 , 1 9 9 8 ;
0 % i f r e d e e m e d o n J a n u a r y 1 , 1 9 9 9 , o r t h e r e a f t e r
p r i o r t o m a t u r i t y ;
p l u s a c c r u e d i n t e r e s t t o t h e d a t e f i x e d f o r r e d e m p t i o n .
N o t i c e o f s u c h r e d e m p t i o n s h a l l b e m a i l e d t o t h e a d d r e s s o f t h e
r e g i s t e r e d o w n e r a s s h o w n o n t h e r e g i s t r a t i o n r e c o r d s o f t h e C i t y n o t l e s s t h a n
t h i r t y ( 3 0 ) d a y s p r i o r t o t h e d a t e f i x e d f o r r e d e m p t i o n u n l e s s t h e n o t i c e i s
w a i v e d b y t h e r e g i s t e r e d o w n e r o f t h i s b o n d . T h e n o t i c e s h a l l s p e c i f y t h e d a t e
a n d p l a c e o f r e d e m p t i o n a n d s u f f i c i e n t i d e n t i f i c a t i o n o f t h e b o n d s c a l l e d f o r
r e d e m p t i o n . T h e p l a c e o f r e d e m p t i o n m a y b e d e t e r m i n e d b y t h e C i t y .
I n t e r e s t o n t h e b o n d s s o c a l l e d f o r r e d e m p t i o n s h a l l c e a s e o n t h e r e d e m p t i o n
d a t e f i x e d i n s u c h n o t i c e i f s u f f i c i e n t f u n d s a r e a v a i l a b l e a t t h e p l a c e o f
r e d e m p t i o n t o p a y t h e r e d e m p t i o n p r i c e o n t h e d a t e s o n a m e d .
I f t h i s b o n d s h a l l n o t b e p r e s e n t e d f o r p a y m e n t o r r e d e m p t i o n o n t h e
d a t e f i x e d t h e r e f o r , t h e C i t y m a y d e p o s i t i n t r u s t w i t h i t s d e p o s i t o r y b a n k , a n
a m o u n t s u f f i c i e n t t o p a y s u c h b o n d o r t h e r e d e m p t i o n p r i c e , a s t h e c a s e m a y
"
C - 1 1
" b e , a n d t h e r e a f t e r t h e r e g i s t e r e d o w n e r s h a l l l o o k o n l y t o t h e f u n d s s o
d e p o s i t e d i n t r u s t w i t h s a i d b a n k f o r p a y m e n t a n d t h e C i t y s h a l l h a v e n o
f u r t h e r o b l i g a t i o n o r l i a b i l i t y i n r e s p e c t t h e r e t o .
T h i s b o n d i s t r a n s f e r a b l e o r e x c h a n g e a b l e o n l y u p o n t h e b o o k s o f t h e
C i t y k e p t f o r t h a t p u r p o s e a t t h e p r i n c i p a l c o r p o r a t e t r u s t o f f i c e o f t h e
R e g i s t r a r b y t h e r e g i s t e r e d o w n e r h e r e o f i n p e r s o n , o r b y h i s a t t o r n e y d u l y
a u t h o r i z e d i n w r i t i n g , u p o n s u r r e n d e r o f t h i s b o n d t o g e t h e r w i t h a w r i t t e n
i n s t r u m e n t o f t r a n s f e r o r e x c h a n g e s a t i s f a c t o r y t o t h e R e g i s t r a r d u l y
e x e c u t e d b y t h e r e g i s t e r e d o w n e r , o r h i s a t t o r n e y d u l y a u t h o r i z e d i n w r i t i n g ,
a n d t h e r e u p o n a n e w f u l l y r e g i s t e r e d b o n d o r b o n d s i n a n a u t h o r i z e d a g g r e g a t e
p r i n c i p a l a m o u n t a n d o f t h e s a m e m a t u r i t y , s h a l l b e e x e c u t e d a n d d e l i v e r e d i n
t h e n a m e o f t h e t r a n s f e r e e o r t r a n s f e r e e s o r t o t h e r e g i s t e r e d o w n e r , a s t h e
c a s e m a y b e , i n e x c h a n g e t h e r e f o r . ' P h i s b o n d m a y b e t r a n s f e r r e d w i t h o u t c o s t
t o t h e r e g i s t e r e d o w n e r e x c e p t f o r a n y t a x o r g o v e r n m e n t a l c h a r g e r e q u i r e d t o
b e p a i d w i t h r e s p e c t t o t h e t r a n s f e r . T h e C i t y , t h e R e g i s t r a r , t h e P a y i n g
A g e n t a n d a n y o t h e r r e g i s t r a r o r p a y i n g a g e n t f o r t h i s b o n d m a y t r e a t a n d
c o n s i d e r t h e p e r s o n i n w h o s e n a m e t h i s b o n d i s r e g i s t e r e d a s t h e a b s o l u t e
o w n e r h e r e o f f o r a l l p u r p o s e s i n c l u d i n g f o r t h e p u r p o s e o f r e c e i v i n g p a y m e n t
o f , o r o n a c c o u n t o f , t h e p r i n c i p a l h e r e o f a n d i n t e r e s t d u e h e r e o n .
T h i s b o n d i s s u b j e c t t o d e f e a s a n c e p r i o r t o r e d e m p t i o n o r p a y m e n t a s
p r o v i d e d i n t h e O r d i n a n c e r e f e r r e d t o h e r e i n . T H E O W N E R O F T H I S B O N D ,
B Y T H E A C C E P T A N C E H E R E O F , H E R E B Y A G R E E S T O A L L T H E T E R M S
A N D P R O V I S I O N S C O N T A I N E D I N T H E O R D I N A N C E . T h e O r d i n a n c e m a y b e
a m e n d e d w i t h o u t t h e c o n s e n t o f t h e o w n e r s o f t h e b o n d s a s p r o v i d e d i n t h e
" O r d i n a n c e i f t h e C o m m o n C o u n c i l d e t e r m i n e s , i n i t s s o l e d i s c r e t i o n , t h a t t h e
a m e n d m e n t s h a l l n o t a d v e r s e l y a f f e c t t h e r i g h t s o f a n y o f t h e o w n e r s o f t h e
b o n d s .
T h e b o n d s m a t u r i n g i n a n y o n e y e a r a r e i s s u a b l e o n l y i n f u l l y r e g i s t e r e d
f o r m i n t h e d e n o m i n a t i o n o f $ 5 , 0 0 0 o r a n y i n t e g r a l m u l t i p l e t h e r e o f .
A S S I G N M E N T
F O R V A L U E R E C E I V E D t h e u n d e r s i g n e d h e r e b y s e l l s , a s s i g n s a n d
t r a n s f e r s u n t o t h i s b o n d a n d a l l r i g h t s
t h e r e u n d e r , a n d h e r e b y i r r e v o c a b l y c o n s t i t u t e s a n d a p p o i n t s
a t t o r n e y , t o t r a n s f e r t h e w i t h i n b o n d i n t h e b o o k s k e p t f o r t h e
r e g i s t r a t i o n t h e r e o f w i t h f u l l p o w e r o f s u b s t i t u t i o n i n t h e p r e m i s e s .
D a t e d :
N O T I C E : S i g n a t u r e ( s ) m u s t b e
g u a r a n t e e d b y a b r o k e r - d e a l e r
o r a c o m m e r c i a l b a n k o r t r u s t
c o m p a n y .
N O T I C E : T h e s i g n a t u r e t o t h i s
a s s i g n m e n t m u s t c o r r e s p o n d w i t h t h e
n a m e a s i t a p p e a r s o n t h e f a c e o f t h e
w i t h i n b o n d i n e v e r y p a r t i c u l a r ,
w i t h o u t a l t e r a t i o n o r e n l a r g e m e n t o r
a n y c h a n g e w h a t s o e v e r .
E
C - 1 2
and the Mayor and Clerk- Treasurer are hereby authorized and directed to execute and
attest the Refunding Bonds in the form and manner provided herein. The
Clerk- Treasurer is hereby authorized and directed to deliver the Refunding Bonds to
Raffensperger, Hughes & Co., Inc. (the "Underwriter ") in accordance with the Purchase
Contract (the "Purchase Contract ") between the City and the Underwriter. The Mayor
and Clerk- Treasurer are hereby authorized to execute the Purchase Contract attached to
this ordinance.
(b) Merchants National Bank & Trust Company of Indianapolis in Indianapolis,
Indiana is hereby selected and appointed as escrow trustee ( "Escrow Trustee ") for the
Refunded Bonds in accordance with the terms of the Escrow Agreement, between the
City and the Escrow Trustee ( "Escrow Agreement "). The substantially final form of
10 Escrow Agreement attached hereto is hereby approved by the Common Council, and the
Mayor and the Clerk- Treasurer are hereby authorized and directed to complete, execute
and attest the same on behalf of the City so long as its provisions are consistent with this
ordinance and the Purchase Contract.
(c) The Refunding Bonds, when fully paid for and delivered to the Underwriter,
shall be the binding special revenue obligations of the City, payable out of the Net
Revenues (herein defined as gross revenues after deduction only for the payment of the
reasonable expenses of operation, repair and maintenance) of the sewage works, to be set
aside into the Sewage Works Sinking Fund created in Section 13. The proper officers of
the City are hereby directed to sell the Refunding Bonds to the Underwriter, to draw all
proper and necessary warrants, and to do whatever acts and things which may be
necessary to carry out the provisions of this ordinance.
•
C -13
Sec. 6. Authorization for Preparation
and Sale of the Refunding
Bonds (a) The
Clerk- Treasurer is hereby authorized
and directed to have the Refunding
Bonds prepared,
and the Mayor and Clerk- Treasurer are hereby authorized and directed to execute and
attest the Refunding Bonds in the form and manner provided herein. The
Clerk- Treasurer is hereby authorized and directed to deliver the Refunding Bonds to
Raffensperger, Hughes & Co., Inc. (the "Underwriter ") in accordance with the Purchase
Contract (the "Purchase Contract ") between the City and the Underwriter. The Mayor
and Clerk- Treasurer are hereby authorized to execute the Purchase Contract attached to
this ordinance.
(b) Merchants National Bank & Trust Company of Indianapolis in Indianapolis,
Indiana is hereby selected and appointed as escrow trustee ( "Escrow Trustee ") for the
Refunded Bonds in accordance with the terms of the Escrow Agreement, between the
City and the Escrow Trustee ( "Escrow Agreement "). The substantially final form of
10 Escrow Agreement attached hereto is hereby approved by the Common Council, and the
Mayor and the Clerk- Treasurer are hereby authorized and directed to complete, execute
and attest the same on behalf of the City so long as its provisions are consistent with this
ordinance and the Purchase Contract.
(c) The Refunding Bonds, when fully paid for and delivered to the Underwriter,
shall be the binding special revenue obligations of the City, payable out of the Net
Revenues (herein defined as gross revenues after deduction only for the payment of the
reasonable expenses of operation, repair and maintenance) of the sewage works, to be set
aside into the Sewage Works Sinking Fund created in Section 13. The proper officers of
the City are hereby directed to sell the Refunding Bonds to the Underwriter, to draw all
proper and necessary warrants, and to do whatever acts and things which may be
necessary to carry out the provisions of this ordinance.
•
C -13
" ( d ) T h e e x e c u t i o n , b y e i t h e r t h e M a y o r , C l e r k - T r e a s u r e r , o r t h e U n d e r w r i t e r , o f a
s u b s c r i p t i o n f o r U n i t e d S t a t e s T r e a s u r y O b l i g a t i o n s - - S t a t e a n d L o c a l G o v e r n m e n t S e r i e s
f o r i n v e s t m e n t s o f p r o c e e d s o f t h e R e f u n d i n g B o n d s t o b e h e l d u n d e r t h e E s c r o w
A g r e e m e n t i n a m a n n e r c o n s i s t e n t w i t h t h i s o r d i n a n c e i s h e r e b y a p p r o v e d .
( e ) D i s t r i b u t i o n o f a n o f f e r i n g c i r c u l a r a n d f i n a l O f f i c i a l S t a t e m e n t p r e p a r e d b y
H . J . U m b a u g h a n d A s s o c i a t e s , o n b e h a l f o f t h e C i t y , i s h e r e b y r a t i f i e d a n d a p p r o v e d a n d
t h e M a y o r o r C l e r k - T r e a s u r e r a r e a u t h o r i z e d a n d d i r e c t e d t o e x e c u t e t h e f i n a l O f f i c i a l
S t a t e m e n t o n b e h a l f o f t h e C i t y i n a f o r m c o n s i s t e n t w i t h t h i s o r d i n a n c e a n d t h e
P u r c h a s e C o n t r a c t .
S e c . 7 . R e f u n d i n g o f t h e R e f u n d e d B o n d s a n d C o s t s o f I s s u a n c e C o n c u r r e n t l y w i t h
t h e d e l i v e r y o f t h e R e f u n d i n g B o n d s , t h e C l e r k - T r e a s u r e r s h a l l a c q u i r e , w i t h t h e p r o c e e d s
o f t h e R e f u n d i n g B o n d s a n d c a s h o n h a n d , d i r e c t o b l i g a t i o n s o f o r o b l i g a t i o n s t h e
p r i n c i p a l a n d i n t e r e s t o n w h i c h a r e u n c o n d i t i o n a l l y g u a r a n t e e d b y , t h e U n i t e d S t a t e s o f
" A m e r i c a ( t h e " G o v e r n m e n t O b l i g a t i o n s " ) t o b e u s e d , t o g e t h e r w i t h c e r t a i n c a s h f r o m t h e
p r o c e e d s o f t h e R e f u n d i n g B o n d s a n d c a s h o n h a n d a s s e t f o r t h i n t h e E s c r o w A g r e e m e n t ,
t o r e f u n d a n d e c o n o m i c a l l y d e f e a s e t h e R e f u n d e d B o n d s a l l a s s e t f o r t h i n t h e E s c r o w
A g r e e m e n t . I n o r d e r t o r e f u n d t h e R e f u n d e d B o n d s , t h e C l e r k - T r e a s u r e r s h a l l d e p o s i t
G o v e r n m e n t O b l i g a t i o n s a n d c e r t a i n c a s h w i t h t h e E s c r o w T r u s t e e u n d e r t h e E s c r o w
A g r e e m e n t i n a n a m o u n t s u f f i c i e n t t o p r o v i d e m o n e y s f o r t h e p a y m e n t o f p r i n c i p a l o f ,
i n t e r e s t a n d r e d e m p t i o n p r e m i u m o n s u c h R e f u n d e d B o n d s u n t i l J u l y 1 , 1 9 9 1 , t h e e a r l i e s t
d a t e u p o n w h i c h t h e 1 9 8 0 B o n d s m a y b e c a l l e d f o r r e d e m p t i o n .
T h e C l e r k - T r e a s u r e r s h a l l o b t a i n a v e r i f i c a t i o n o f a n a c c o u n t a n t a s t o t h e
s u f f i c i e n c y o f t h e f u n d s d e p o s i t e d i n t h e T r u s t A c c o u n t u n d e r t h e E s c r o w A g r e e m e n t t o
a c c o m p l i s h s a i d r e f u n d i n g a n d e c o n o m i c d e f e a s a n c e o f t h e R e f u n d e d B o n d s .
C o s t s o f i s s u a n c e o f t h e R e f u n d i n g B o n d s n o t o t h e r w i s e p a i d , s h a l l b e p a i d f r o m t h e
r e m a i n i n g p r o c e e d s b y t h e C l e r k - T r e a s u r e r . W h e n a l l t h e c o s t s o f i s s u a n c e o f t h e
0
C - 1 4
" R e f u n d i n g B o n d s h a v e b e e n p a i d , t h e C l e r k - T r e a s u r e r s h a l l t h e n t r a n s f e r a n y a m o u n t t h e n
r e m a i n i n g f r o m t h e p r o c e e d s o f t h e R e f u n d i n g B o n d s t o t h e S i n k i n g F u n d h e r e i n c r e a t e d .
S e c . 8 . A c c r u e d I n t e r e s t T h e a c c r u e d i n t e r e s t r e c e i v e d a t t h e t i m e o f d e l i v e r y o f
t h e R e f u n d i n g B o n d s , i f a n y , s h a l l b e d e p o s i t e d i n t h e S i n k i n g F u n d c r e a t e d i n S e c t i o n 1 3 ,
t o b e c r e d i t e d t o t h e B o n d a n d I n t e r e s t A c c o u n t o f t h e S i n k i n g F u n d .
S e c . 9 . F i n a n c i a l R e c o r d s a n d A c c o u n t s T h e C i t y s h a l l k e e p p r o p e r r e c o r d s a n d
b o o k s o f a c c o u n t , s e p a r a t e f r o m a l l o f i t s o t h e r r e c o r d s a n d a c c o u n t s , i n w h i c h c o m p l e t e
a n d c o r r e c t e n t r i e s s h a l l b e m a d e s h o w i n g a l l r e v e n u e s r e c e i v e d o n a c c o u n t o f t h e
o p e r a t i o n o f t h e s e w a g e w o r k s a n d a l l d i s b u r s e m e n t s m a d e t h e r e f r o m a n d a l l t r a n s a c t i o n s
r e l a t i n g t o t h e u t i l i t y . T h e r e s h a l l b e p r e p a r e d a n d f u r n i s h e d u p o n r e q u e s t t o t h e
U n d e r w r i t e r a n d t o a n y o w n e r o f a t l e a s t $ 2 5 , 0 0 0 i n p r i n c i p a l a m o u n t o f t h e R e f u n d i n g
B o n d s , a n a n n u a l r e p o r t s e t t i n g o u t c o m p l e t e o p e r a t i n g , i n c o m e a n d f i n a n c i a l s t a t e m e n t s
o f t h e u t i l i t y , i n r e a s o n a b l e d e t a i l , c o v e r i n g t h e p r e c e d i n g f i s c a l y e a r . S u c h r e p o r t s h a l l
i s b e p r e p a r e d b y t h e C l e r k - T r e a s u r e r a n d f u r n i s h e d w i t h i n o n e h u n d r e d t w e n t y ( 1 2 0 ) d a y s
a f t e r t h e c l o s e o f e a c h c a l e n d a r y e a r . T h e r e s h a l l a l s o b e f u r n i s h e d u p o n r e q u e s t t o t h e
U n d e r w r i t e r a n d t o a n y o w n e r o f a t l e a s t $ 2 5 , 0 0 0 i n p r i n c i p a l a m o u n t o f t h e R e f u n d i n g
B o n d s , w i t h i n t h i r t y ( 3 0 ) d a y s o f t h e i r r e c e i p t b y t h e C i t y , t h e a u d i t e d f i n a n c i a l
s t a t e m e n t s o f t h e u t i l i t y p r e p a r e d b y t h e S t a t e B o a r d o f A c c o u n t s . C o p i e s o f a l l s u c h
s t a t e m e n t s a n d r e p o r t s s h a l l b e k e p t o n f i l e i n t h e o f f i c e o f t h e C l e r k - T r e a s u r e r . A n y
o w n e r o f a t l e a s t $ 2 5 , 0 0 0 i n p r i n c i p a l a m o u n t o f t h e R e f u n d i n g B o n d s s h a l l h a v e t h e r i g h t
a t a l l r e a s o n a b l e t i m e s t o i n s p e c t t h e s e w a g e w o r k s s y s t e m a n d t h e r e c o r d s , a c c o u n t s a n d
d a t a o f t h e C i t y .
S e c . 1 0 . P l e d g e o f N e t R e v e n u e s T h e i n t e r e s t o n a n d t h e p r i n c i p a l o f t h e
R e f u n d i n g B o n d s i s s u e d p u r s u a n t t o t h e p r o v i s i o n s o f t h i s o r d i n a n c e , a n d a n y b o n d s
h e r e a f t e r i s s u e d o n a p a r i t y t h e r e w i t h , s h a l l c o n s t i t u t e a f i r s t c h a r g e , s u b j e c t t o S e c t i o n
1 5 h e r e o f , o n a l l t h e N e t R e v e n u e s , a n d s u c h N e t R e v e n u e s a r e h e r e b y i r r e v o c a b l y
C - 1 5
® pledged to the payment of the interest on and principal of such Refunding Bonds, to the
extent necessary for that purpose.
Sec. 11. Revenue Fund All revenues derived from the operation of the sewage
works and from the collection of sewer rates and charges shall be deposited in the
Revenue Fund, hereby created, and segregated and deposited as set forth in this
ordinance. Of these revenues the proper and reasonable expenses of operation, repair
and maintenance of the works shall be paid, the principal and interest of all bonds and
fiscal agency charges of registrars or paying agents shall be paid, and the costs of
replacements, extensions, additions and improvements shall be paid.
Sec. 12. Operation and Maintenance Fund Moneys heretofore accumulated
pursuant to the ordinance authorizing the Refunded Bonds (the "Existing Ordinance ") in
an amount equal to the expenses of operation, repair and maintenance of the sewage
works for a two -month period, as calculated by the Clerk- Treasurer, shall be credited to
• and become a part of the Operation and Maintenance Fund created hereby as of the date
of the advance refunding of the Refunded Bonds. On the last day of each calendar
month, revenues of the sewage works shall thereafter be transferred from the Revenue
Fund to the Operation and Maintenance Fund. The balance maintained in this 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. Any monies in said Fund may be transferred to the
Sewage Works Sinking Fund if necessary to prevent a default in the payment of principal
of or interest on the outstanding bonds of the sewage works.
Sec. 13. Sewage Works Sinking Fund (a) There is hereby created a sinking fund
for the payment of the principal of and interest on revenue bonds which by their terms
are payable from the Net Revenues of the sewage works and the payment of any fiscal
•
C -16
" a g e n c y c h a r g e s i n c o n n e c t i o n w i t h t h e p a y m e n t o f b o n d s , w h i c h f u n d s h a l l b e d e s i g n a t e d
t h e " S e w a g e W o r k s S i n k i n g F u n d " ( h e r e i n , " S e w a g e W o r k s S i n k i n g F u n d " o r " S i n k i n g
F u n d " ) . T h e r e s h a l l b e s e t a s i d e a n d d e p o s i t e d i n t h e S i n k i n g F u n d , a s a v a i l a b l e , a n d a s
h e r e i n a f t e r p r o v i d e d , a s u f f i c i e n t a m o u n t o f t h e N e t R e v e n u e s o f t h e s e w a g e w o r k s t o
m e e t t h e r e q u i r e m e n t s o f t h e B o n d a n d I n t e r e s t A c c o u n t a n d R e s e r v e A c c o u n t h e r e b y
c r e a t e d i n t h e S i n k i n g F u n d . S u c h p a y m e n t s s h a l l c o n t i n u e u n t i l t h e b a l a n c e s i n t h e B o n d
a n d I n t e r e s t A c c o u n t a n d t h e R e s e r v e A c c o u n t , e q u a l t h e p r i n c i p a l o f a n d i n t e r e s t o n a l l
o f t h e t h e n o u t s t a n d i n g b o n d s o f t h e s e w a g e w o r k s t o t h e i r f i n a l m a t u r i t y .
( b ) B o n d a n d I n t e r e s t A c c o u n t A n y m o n e y s h e r e t o f o r e a c c u m u l a t e d t o p a y
p r i n c i p a l a n d i n t e r e s t f o r t h e R e f u n d e d B o n d s s h a l l b e c r e d i t e d t o a n d b e c o m e a p a r t o f
t h e T r u s t A c c o u n t u n d e r t h e E s c r o w A g r e e m e n t a n d s h a l l b e a p p l i e d o n t h e f i r s t p a y m e n t
m a d e f r o m t h e T r u s t A c c o u n t . B e g i n n i n g a s o f t h e d a t e o f i s s u a n c e o f t h e R e f u n d i n g
B o n d s , t h e r e s h a l l b e c r e d i t e d o n t h e l a s t d a y o f e a c h c a l e n d a r m o n t h f r o m t h e R e v e n u e
" F u n d t o t h e B o n d a n d I n t e r e s t A c c o u n t a n a m o u n t o f t h e N e t R e v e n u e s e q u a l t o ( i ) o n e -
s i x t h ( 1 / 6 ) o f t h e i n t e r e s t o n a l l t h e n o u t s t a n d i n g b o n d s p a y a b l e o n t h e t h e n n e x t
s u c c e e d i n g i n t e r e s t p a y m e n t d a t e a n d ( i i ) a t l e a s t o n e - t w e l f t h ( 1 / 1 2 ) o f t h e p r i n c i p a l o n
a l l t h e n o u t s t a n d i n g b o n d s p a y a b l e o n t h e t h e n n e x t s u c c e e d i n g p r i n c i p a l p a y m e n t d a t e ,
u n t i l t h e a m o u n t o f i n t e r e s t a n d p r i n c i p a l p a y a b l e o n t h e t h e n n e x t s u c c e e d i n g r e s p e c t i v e
i n t e r e s t a n d p r i n c i p a l p a y m e n t d a t e s s h a l l h a v e b e e n s o c r e d i t e d . T h e r e s h a l l s i m i l a r l y b e
c r e d i t e d t o t h e a c c o u n t a n y a m o u n t n e c e s s a r y t o p a y t h e b a n k f i s c a l a g e n c y c h a r g e s f o r
p a y i n g i n t e r e s t o n o u t s t a n d i n g b o n d s a s t h e s a m e b e c o m e p a y a b l e . T h e C i t y s h a l l , f r o m
t h e s u m s d e p o s i t e d i n t h e S i n k i n g F u n d a n d c r e d i t e d t o t h e B o n d a n d I n t e r e s t A c c o u n t ,
r e m i t p r o m p t l y t o t h e r e g i s t e r e d o w n e r o r t o t h e b a n k f i s c a l a g e n c y s u f f i c i e n t m o n e y s t o
p a y t h e i n t e r e s t a n d p r i n c i p a l o n t h e d u e d a t e s t h e r e o f t o g e t h e r w i t h t h e a m o u n t o f b a n k
f i s c a l a g e n c y c h a r g e s .
"
C - 1 7
" ( c ) R e s e r v e A c c o u n t O n t h e d a t e o f d e l i v e r y o f t h e R e f u n d i n g B o n d s , f u n d s o n
h a n d o f t h e s e w a g e w o r k s R e f u n d i n g B o n d p r o c e e d s o r a c o m b i n a t i o n t h e r e o f s h a l l b e
d e p o s i t e d i n t o t h e R e s e r v e A c c o u n t . T h e i n i t i a l d e p o s i t o r t h e b a l a n c e a c c u m u l a t e d i n
t h e R e s e r v e A c c o u n t s h a l l e q u a l b u t n o t e x c e e d t h e l e a s t o f ( i ) m a x i m u m a n n u a l d e b t
s e r v i c e o n t h e R e f u n d i n g B o n d s , ( i i ) 1 2 5 % o f a v e r a g e a n n u a l d e b t s e r v i c e o n t h e
R e f u n d i n g B o n d s o r ( i i i ) 1 0 % o f t h e p r o c e e d s o f t h e R e f u n d i n g B o n d s ( " R e s e r v e
R e q u i r e m e n t " ) . T h e b a l a n c e i n t h e R e s e r v e A c c o u n t , a l l o c a b l e t o t h e R e f u n d i n g B o n d s ,
s h a l l n e v e r e x c e e d t h e R e s e r v e R e q u i r e m e n t . I f t h e i n i t i a l d e p o s i t i n t o t h e R e s e r v e
A c c o u n t d o e s n o t e q u a l t h e R e s e r v e R e q u i r e m e n t , a n a m o u n t o f N e t R e v e n u e s s h a l l b e
c r e d i t e d t o t h e R e s e r v e A c c o u n t o n t h e l a s t d a y o f e a c h c a l e n d a r m o n t h u n t i l t h e b a l a n c e
t h e r e i n e q u a l s t h e R e s e r v e R e q u i r e m e n t . T h e m o n t h l y d e p o s i t s s h a l l b e e q u a l i n a m o u n t
a n d s u f f i c i e n t t o a c c u m u l a t e t h e R e s e r v e R e q u i r e m e n t w i t h i n 5 y e a r s o f t h e d a t e o f
d e l i v e r y o f t h e R e f u n d i n g B o n d s . T h e R e s e r v e A c c o u n t s h a l l c o n s t i t u t e t h e m a r g i n f o r
" s a f e t y a n d p r o t e c t i o n a g a i n s t d e f a u l t i n t h e p a y m e n t o f p r i n c i p a l o f a n d i n t e r e s t o n t h e
R e f u n d i n g B o n d s , a n d t h e m o n e y s i n t h e R e s e r v e A c c o u n t s h a l l b e u s e d t o p a y c u r r e n t
p r i n c i p a l a n d i n t e r e s t o n t h e R e f u n d i n g B o n d s t o t h e e x t e n t t h a t m o n e y s i n t h e B o n d a n d
I n t e r e s t A c c o u n t a r e i n s u f f i c i e n t f o r t h a t p u r p o s e . A n y d e f i c i e n c y i n t h e b a l a n c e
m a i n t a i n e d i n t h e R e s e r v e A c c o u n t s h a l l b e m a d e u p f r o m t h e n e x t a v a i l a b l e N e t
R e v e n u e s r e m a i n i n g a f t e r c r e d i t s i n t o t h e B o n d a n d I n t e r e s t A c c o u n t . A n y m o n e y s i n t h e
R e s e r v e A c c o u n t i n e x c e s s o f t h e R e s e r v e R e q u i r e m e n t s h a l l e i t h e r b e t r a n s f e r r e d t o t h e
S e w a g e W o r k s I m p r o v e m e n t F u n d o r b e u s e d f o r t h e p u r c h a s e o f o u t s t a n d i n g b o n d s o r
i n s t a l l m e n t s o f p r i n c i p a l o f f u l l y r e g i s t e r e d R e f u n d i n g B o n d s a t a p r i c e n o t e x c e e d i n g p a r
a n d a c c r u e d i n t e r e s t .
S e c . 1 4 . S e w a g e W o r k s I m p r o v e m e n t F u n d A n y e x c e s s r e v e n u e s m a y b e
t r a n s f e r r e d o r c r e d i t e d f r o m t h e R e v e n u e F u n d t o a f u n d d e s i g n a t e d t h e " S e w a g e W o r k s
I m p r o v e m e n t F u n d , " a n d s a i d F u n d s h a l l b e u s e d f o r i m p r o v e m e n t s , r e p l a c e m e n t s ,
"
C - 1 8
" a d d i t i o n s a n d e x t e n s i o n s o f t h e s e w a g e w o r k s . A s o f t h e d a t e o f t h e d e l i v e r y o f t h e
R e f u n d i n g B o n d s , a n y o t h e r a v a i l a b l e a n d u n r e s t r i c t e d m o n e y s o f t h e s e w a g e w o r k s n o t
o t h e r w i s e d e p o s i t e d p u r s u a n t t o t h e t e r m s o f t h i s o r d i n a n c e s h a l l b e t r a n s f e r r e d t o t h e
I m p r o v e m e n t F u n d a n d u s e d f o r s e w a g e w o r k s c a p i t a l i m p r o v e m e n t s o r f o r a n y o t h e r
l a w f u l p u r p o s e . M o n e y s i n t h e S e w a g e W o r k s I m p r o v e m e n t F u n d s h a l l b e t r a n s f e r r e d t o
t h e S e w a g e W o r k s S i n k i n g F u n d i f n e c e s s a r y t o p r e v e n t a d e f a u l t i n t h e p a y m e n t o f
p r i n c i p a l a n d i n t e r e s t o n t h e t h e n o u t s t a n d i n g b o n d s o r , i f n e c e s s a r y , t o e l i m i n a t e a n y
d e f i c i e n c i e s i n c r e d i t s t o o r m i n i m u m b a l a n c e i n t h e R e s e r v e A c c o u n t o f t h e S e w a g e
W o r k s S i n k i n g F u n d o r m a y b e t r a n s f e r r e d t o t h e O p e r a t i o n a n d M a i n t e n a n c e F u n d t o
m e e t u n f o r e s e e n c o n t i n g e n c i e s i n t h e o p e r a t i o n , r e p a i r a n d m a i n t e n a n c e o f t h e s e w a g e
w o r k s .
S e c . 1 5 . R e v e r s i o n o f F l o w o f F u n d s S i m u l t a n e o u s l y w i t h t h e i s s u a n c e o f t h e
R e f u n d i n g B o n d s , t h e m o n e y s a n d i n v e s t m e n t s i n t h e f u n d s a n d a c c o u n t s e s t a b l i s h e d
" p u r s u a n t t o t h e E x i s t i n g O r d i n a n c e s h a l l b e u s e d a s s e t f o r t h i n t h e E s c r o w A g r e e m e n t
a n d t r a n s f e r r e d a n d d e p o s i t e d i n t o t h e F u n d s a n d A c c o u n t s e s t a b l i s h e d b y t h i s o r d i n a n c e
a s p r o v i d e d i n S e c t i o n s 1 1 , 1 2 , 1 3 a n d 1 4 h e r e o f . T h e r e a f t e r , a l l s u c h t r a n s f e r r e d m o n e y s
a n d i n v e s t m e n t s , t o g e t h e r w i t h r e v e n u e s o f t h e s e w a g e w o r k s , s h a l l b e a p p l i e d b y t h e
C i t y i n a c c o r d a n c e w i t h t h e t e r m s o f t h i s o r d i n a n c e s o l o n g a s t h e c a s h a n d G o v e r n m e n t
O b l i g a t i o n s o n d e p o s i t i n t h e T r u s t A c c o u n t a r e a v a i l a b l e a n d s u f f i c i e n t t o p a y w h e n d u e
t h e p r i n c i p a l o f a n d r e d e m p t i o n p r e m i u m a n d i n t e r e s t o n t h e R e f u n d e d B o n d s . I n t h e
e v e n t t h a t t h e c a s h a n d G o v e r n m e n t O b l i g a t i o n s , t o g e t h e r w i t h a n y i n c r e m e n t t h e r e t o
a n d i n t e r e s t e a r n e d t h e r e o n , w i l l n o t b e s u f f i c i e n t t o p a y w h e n d u e a l l p r i n c i p a l o f a n d
r e d e m p t i o n p r e m i u m a n d i n t e r e s t o n t h e R e f u n d e d B o n d s t o a n d i n c l u d i n g J u l y 1 , 1 9 9 1 ,
t h e e a r l i e s t d a t e u p o n w h i c h t h e R e f u n d e d B o n d s m a y b e c a l l e d f o r r e d e m p t i o n , t h e C i t y
c o v e n a n t s a n d a g r e e s t h a t ( i ) t h e r e v e n u e s o f t h e s e w a g e w o r k s s h a l l b e a p p l i e d i n
a c c o r d a n c e w i t h t h e t e r m s o f t h e E x i s t i n g O r d i n a n c e a n d ( i i ) t h e c l a i m o f t h e o w n e r s o f
"
C - 1 9
. the Refunding Bonds is in all respects junior and subordinate to the rights of the holders
of the Refunded Bonds under said Existing Ordinance.
Sec. 16. Investment of Funds The Sinking Fund shall be deposited in and
maintained as a separate account or accounts from all other accounts of the City. The
Operation and Maintenance Fund and the Sewage Works Improvement Fund may be
maintained in a single account, or accounts, but such account, or accounts, shall likewise
be maintained separate and apart from all other accounts of the City and apart from the
Sinking Fund account or accounts. All moneys deposited in the accounts shall be
deposited, held and secured as public funds in accordance with the public depository laws
of the State of Indiana; provided that moneys therein may be invested in obligations in
accordance with the applicable laws, including particularly Indiana Code, Title 5, Article
13, as amended or supplemented, and in the event of such investment the income
therefrom shall become a part of the funds invested and shall be used only as provided in
this ordinance.
Sec. 17. Defeasance of the Refunding Bonds If, when the Refunding Bonds or a
portion thereof shall have become due and payable in accordance with their terms or
shall have been duly called for redemption or irrevocable instructions to call the
Refunding Bonds or a portion thereof for redemption shall have been given, and the whole
amount of the principal and the interest and the premium, if any, so due and payable
upon all of the Refunding Bonds or a portion thereof then outstanding shall be paid; or (i)
sufficient moneys, or (ii) direct obligations of, or obligations the principal of and interest
on which are unconditionally guaranteed by, the United States of America, the principal
of and the interest on which when due will provide sufficient moneys for such purpose,
shall be held in trust for such purpose, and provision shall also be made for paying all fees
and expenses for the redemption, then and in that case the Refunding Bonds or any
•
C -20
" d e s i g n a t e d p o r t i o n t h e r e o f i s s u e d h e r e u n d e r s h a l l n o l o n g e r b e d e e m e d o u t s t a n d i n g o r
e n t i t l e d t o t h e p l e d g e o f t h e N e t R e v e n u e s o f t h e C i t y ' s s e w a g e w o r k s .
S e c . 1 8 . R a t e C o v e n a n t T h e C i t y c o v e n a n t s a n d a g r e e s t h a t i t w i l l e s t a b l i s h a n d
m a i n t a i n j u s t a n d e q u i t a b l e r a t e s o r c h a r g e s f o r t h e u s e o f a n d t h e s e r v i c e r e n d e r e d b y
t h e w o r k s , t o b e p a i d b y t h e o w n e r o f e a c h a n d e v e r y l o t , p a r c e l o f r e a l e s t a t e o r b u i l d i n g
t h a t i s c o n n e c t e d w i t h a n d u s e s s a i d s e w a g e w o r k s b y o r t h r o u g h a n y p a r t o f t h e s e w a g e
s y s t e m o f t h e C i t y , o r t h a t i n a n y w a y u s e s o r i s s e r v e d b y s u c h w o r k s : t h a t s u c h r a t e s o r
c h a r g e s s h a l l b e s u f f i c i e n t i n e a c h y e a r f o r t h e p a y m e n t o f t h e p r o p e r a n d r e a s o n a b l e
e x p e n s e s o f o p e r a t i o n , r e p a i r a n d m a i n t e n a n c e o f t h e w o r k s , a n d f o r t h e p a y m e n t o f t h e
s u m s r e q u i r e d t o b e p a i d i n t o t h e S i n k i n g F u n d b y t h e A c t a n d t h i s o r d i n a n c e . S u c h r a t e s
o r c h a r g e s s h a l l , i f n e c e s s a r y , b e c h a n g e d a n d r e a d j u s t e d f r o m t i m e t o t i m e s o t h a t t h e
r e v e n u e s t h e r e f r o m s h a l l a l w a y s b e s u f f i c i e n t t o m e e t t h e e x p e n s e s o f o p e r a t i o n , r e p a i r
a n d m a i n t e n a n c e o f t h e s e w a g e w o r k s a n d t h e r e q u i r e m e n t s o f t h e S i n k i n g F u n d . T h e
" r a t e s o r c h a r g e s s o e s t a b l i s h e d s h a l l a p p l y t o a n y a n d a l l u s e o f s u c h w o r k s b y a n d s e r v i c e
r e n d e r e d t o t h e C i t y a n d a l l d e p a r t m e n t s t h e r e o f , a n d s h a l l b e p a i d b y t h e C i t y o r t h e
v a r i o u s d e p a r t m e n t s t h e r e o f a s t h e c h a r g e s a c c r u e .
S e c . 1 9 . A d d i t i o n a l B o n d P r o v i s i o n s T h e C i t y r e s e r v e s t h e r i g h t t o a u t h o r i z e a n d
i s s u e a d d i t i o n a l b o n d s p a y a b l e o u t o f t h e N e t R e v e n u e s o f i t s s e w a g e w o r k s r a n k i n g o n a
p a r i t y w i t h t h e R e f u n d i n g B o n d s f o r t h e p u r p o s e o f f i n a n c i n g t h e c o s t o f f u t u r e a d d i t i o n s ,
e x t e n s i o n s a n d i m p r o v e m e n t s t o i t s s e w a g e w o r k s , o r t o r e f u n d o b l i g a t i o n s , s u b j e c t t o t h e
f o l l o w i n g c o n d i t i o n s :
( a ) A l l r e q u i r e d p a y m e n t s i n t o t h e S i n k i n g F u n d s h a l l h a v e b e e n m a d e i n a c c o r d a n c e
w i t h t h e p r o v i s i o n s o f t h i s o r d i n a n c e , a n d t h e i n t e r e s t o n a n d p r i n c i p a l o f a l l b o n d s
p a y a b l e f r o m t h e N e t R e v e n u e s o f t h e s e w a g e w o r k s s h a l l h a v e b e e n p a i d i n a c c o r d a n c e
w i t h t h e i r t e r m s .
C ,
J
C - 2 1
t (b) The Net Revenues of the sewage works in the fiscal year immediately preceding
the issuance of any such bonds ranking on a parity with the Refunding Bonds shall be not
less than one hundred twenty -five percent (125 %) of the maximum annual interest and
principal requirements of the then outstanding bonds and the additional parity bonds
proposed to be issued; or, prior to the issuance of the parity bonds the sewage rates and
charges shall be increased sufficiently so that that increased rates and charges applied to
the previous year's operations would have produced net operating revenues for said year
equal to not less than one hundred twenty -five percent (125 %) of the maximum annual
interest and principal requirements of all bonds payable from the revenues of the sewage
works, including the additional parity bonds proposed to be issued.
For purposes of this subsection, the records of the sewage works shall be analyzed
and all showings prepared by a certified public accountant employed by the City for that
purpose.
e (c) The interest on the additional parity bonds shall be payable semiannually on the
first days of January and July and the principal on, or mandatory sinking fund
redemptions for, the additional parity bonds shall be payable annually on the first day of
January.
Sec. 20. Further Covenants of the City; Maintenance Insurance Pledge Not To
Encumber, Subordinate Indebtedness and Contract with Bondholders For the purpose of
further safeguarding the interests of the owners of the Refunding Bonds, it is hereby
specifically provided as follows:
(a) So long as any of the Refunding Bonds are outstanding, the City shall at all
times maintain the sewage works system in good condition, and operate the same in an
efficient manner and at a reasonable cost.
O
C -22
e (b)
So long as any of the Refunding Bonds are outstanding,
the City shall maintain
insurance
on the insurable parts of the system, of a kind and in
an amount such as is
usually carried by private corporations engaged in a similar type of business. All
insurance shall be placed with responsible insurance companies qualified to do business
under the laws of the state of Indiana.
As an alternative to maintaining such insurance, the City may maintain a
self- 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.
All insurance or self- insurance proceeds shall be used either in replacing or
restoring the property destroyed or damaged, or shall be deposited in the Sinking Fund.
(c) So long as any of the Refunding Bonds are outstanding, the City shall not
mortgage, pledge or otherwise encumber the property and plant of its sewage works
® system, 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.
(d) Except as otherwise specifically provided in Section 19 of this ordinance, so
long as any of the Refunding Bonds are outstanding, no additional bonds or other
obligations pledging any portion of the revenues of the system shall be authorized, issued
or executed by the City, except such as shall be made junior and subordinate in all
respects to the Refunding Bonds, unless all of the Refunding Bonds are redeemed or
defeased coincidentally with the delivery of such additional bonds or other obligations.
(e) The City shall take all actions or proceedings necessary and proper, to the
extent permitted by law, to require connection of all property where liquid and solid
waste, sewage, night soil or industrial waste is produced with available sanitary sewers.
E l
C -23
" T h e C i t y s h a l l , i n s o f a r a s p o s s i b l e , a n d t o t h e e x t e n t p e r m i t t e d b y l a w , c a u s e a l l s u c h
s a n i t a r y s e w e r s t o b e c o n n e c t e d w i t h s a i d s e w a g e w o r k s .
( f ) T h e p r o v i s i o n s o f t h i s o r d i n a n c e s h a l l c o n s t i t u t e a c o n t r a c t b y a n d b e t w e e n t h e
C i t y a n d t h e o w n e r s o f t h e R e f u n d i n g B o n d s h e r e i n a u t h o r i z e d , a l l t h e t e r m s o f w h i c h
s h a l l b e e n f o r c e a b l e b y a n y b o n d h o l d e r b y a n y a n d a l l a p p r o p r i a t e p r o c e e d i n g s i n l a w o r i n
e q u i t y . A f t e r t h e i s s u a n c e o f t h e R e f u n d i n g B o n d s , t h i s o r d i n a n c e s h a l l n o t b e r e p e a l e d ,
a m e n d e d o r m o d i f i e d i n a n y r e s p e c t w h i c h w i l l a d v e r s e l y a f f e c t t h e r i g h t s o r i n t e r e s t s o f
t h e o w n e r s o f t h e R e f u n d i n g B o n d s , n o r s h a l l t h e C o m m o n C o u n c i l o r a n y o t h e r b o d y o f
t h e C i t y a d o p t a n y l a w , o r d i n a n c e o r r e s o l u t i o n i n a n y w a y a d v e r s e l y a f f e c t i n g t h e r i g h t s
o f t h e b o n d h o l d e r s s o l o n g a s a n y o f t h e R e f u n d i n g B o n d s , o r t h e i n t e r e s t t h e r e o n , r e m a i n
o u t s t a n d i n g o r u n p a i d . E x c e p t i n t h e c a s e o f c h a n g e s d e s c r i b e d i n S e c t i o n 2 1 ( a ) - ( g ) , t h i s
o r d i n a n c e m a y b e a m e n d e d , h o w e v e r , w i t h o u t t h e c o n s e n t o f b o n d o w n e r s , i f t h e C o m m o n
C o u n c i l d e t e r m i n e s , i n i t s s o l e d i s c r e t i o n , t h a t s u c h a m e n d m e n t w o u l d n o t a d v e r s e l y
" a f f e c t t h e o w n e r s o f t h e R e f u n d i n g B o n d s .
( g ) T h e p r o v i s i o n s o f t h i s o r d i n a n c e s h a l l b e c o n s t r u e d t o c r e a t e a t r u s t i n t h e
p r o c e e d s o f t h e s a l e o f t h e R e f u n d i n g B o n d s h e r e i n a u t h o r i z e d f o r t h e u s e s a n d p u r p o s e s
h e r e i n s e t f o r t h , a n d t h e o w n e r s o f t h e R e f u n d i n g B o n d s s h a l l r e t a i n a l i e n o n s u c h
p r o c e e d s u n t i l t h e s a m e a r e a p p l i e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h i s o r d i n a n c e
a n d o f s a i d g o v e r n i n g A c t . T h e p r o v i s i o n s o f t h i s o r d i n a n c e s h a l l a l s o b e c o n s t r u e d t o
c r e a t e a t r u s t i n t h e N e t R e v e n u e s h e r e i n d i r e c t e d t o b e s e t a p a r t a n d p a i d i n t o t h e
S i n k i n g F u n d f o r t h e u s e s a n d p u r p o s e s o f t h a t F u n d a s i n t h i s o r d i n a n c e s e t f o r t h . T h e
o w n e r s o f t h e R e f u n d i n g B o n d s s h a l l h a v e a l l t h e r i g h t s , r e m e d i e s a n d p r i v i l e g e s s e t f o r t h
i n t h e p r o v i s i o n s o f t h e g o v e r n i n g A c t , i n c l u d i n g t h e r i g h t t o h a v e a r e c e i v e r a p p o i n t e d t o
a d m i n i s t e r t h e s e w a g e w o r k s i n t h e e v e n t t h e C i t y s h a l l f a i l o r r e f u s e t o f i x a n d c o l l e c t
s u f f i c i e n t r a t e s a n d c h a r g e s f o r t h o s e p u r p o s e s , o r s h a l l f a i l o r r e f u s e t o o p e r a t e a n d
m a i n t a i n s a i d s y s t e m a n d t o a p p l y p r o p e r l y t h e r e v e n u e s d e r i v e d f r o m t h e o p e r a t i o n
0
C - 2 4
" t h e r e o f , o r i f t h e r e b e a d e f a u l t i n t h e p a y m e n t o f t h e i n t e r e s t o n o r p r i n c i p a l o f t h e
R e f u n d i n g B o n d s .
( h ) N o n e o f t h e p r o v i s i o n s o f t h i s o r d i n a n c e s h a l l b e c o n s t r u e d a s r e q u i r i n g t h e
e x p e n d i t u r e o f a n y f u n d s o f t h e C i t y d e r i v e d f r o m a n y s o u r c e s o t h e r t h a n t h e p r o c e e d s o f
t h e R e f u n d i n g B o n d s a n d t h e o p e r a t i o n o f t h e s e w a g e w o r k s s y s t e m .
S e c . 2 1 . A m e n d m e n t s w i t h C o n s e n t o f B o n d h o l d e r s S u b j e c t t o t h e t e r m s a n d
p r o v i s i o n s c o n t a i n e d i n t h i s s e c t i o n , a n d n o t o t h e r w i s e , t h e o w n e r s o f n o t l e s s t h a n s i x t y -
s i x a n d t w o - t h i r d s p e r c e n t ( 6 6 2 / 3 % ) i n a g g r e g a t e p r i n c i p a l a m o u n t o f t h e R e f u n d i n g
B o n d s i s s u e d p u r s u a n t t o t h i s o r d i n a n c e a n d t h e n o u t s t a n d i n g s h a l l h a v e t h e r i g h t f r o m
t i m e t o t i m e , a n y t h i n g c o n t a i n e d i n t h i s o r d i n a n c e t o t h e c o n t r a r y n o t w i t h s t a n d i n g , t o
c o n s e n t t o a n d a p p r o v e t h e a d o p t i o n b y t h e C o m m o n C o u n c i l o f t h e C i t y o f s u c h
o r d i n a n c e o r o r d i n a n c e s s u p p l e m e n t a l h e r e t o o r a m e n d a t o r y h e r e o f , a s s h a l l b e d e e m e d
n e c e s s a r y o r d e s i r a b l e b y t h e C i t y f o r t h e p u r p o s e o f m o d i f y i n g , a l t e r i n g , a m e n d i n g ,
S a d d i n g t o o r r e s c i n d i n g i n a n y p a r t i c u l a r a n y o f t h e t e r m s o r p r o v i s i o n s c o n t a i n e d i n t h i s
o r d i n a n c e , o r i n a n y s u p p l e m e n t a l o r d i n a n c e ; p r o v i d e d , h o w e v e r , t h a t n o t h i n g h e r e i n
c o n t a i n e d s h a l l p e r m i t o r b e c o n s t r u e d a s p e r m i t t i n g :
( a ) A n e x t e n s i o n o f t h e m a t u r i t y o f t h e p r i n c i p a l o f o r i n t e r e s t o n , o r a n y
m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n d a t e f o r , a n y R e f u n d i n g B o n d i s s u e d p u r s u a n t t o t h i s
o r d i n a n c e ; o r
( b ) A r e d u c t i o n i n t h e p r i n c i p a l a m o u n t o f a n y R e f u n d i n g B o n d o r t h e r e d e m p t i o n
p r e m i u m o r t h e r a t e o f i n t e r e s t t h e r e o n ; o r
( c ) T h e c r e a t i o n o f a l i e n u p o n o r a p l e d g e o f t h e r e v e n u e s o r N e t R e v e n u e s o f t h e
s e w a g e w o r k s r a n k i n g p r i o r t o t h e p l e d g e t h e r e o f c r e a t e d b y t h i s o r d i n a n c e ; o r
( d ) A p r e f e r e n c e o r p r i o r i t y o f a n y R e f u n d i n g B o n d o r R e f u n d i n g B o n d s i s s u e d
"
p u r s u a n t t o t h i s o r d i n a n c e o v e r a n y o t h e r R e f u n d i n g B o n d o r R e f u n d i n g B o n d s i s s u e d
p u r s u a n t t o t h e p r o v i s i o n s o f t h i s o r d i n a n c e ; o r
C - 2 5
e (e) A reduction in the aggregate principal amount of the Refunding Bonds required
for consent to such supplemental ordinance; or
(f) A reduction in the Reserve Requirement; or
(g) The extension of mandatory sinking fund redemption dates, if any.
If the owners of not less than sixty -six and two - thirds percent (66 2/3 %) in
aggregate principal amount of the Refunding Bonds outstanding at the time of adoption
of such supplemental ordinance shall have consented to and approved the adoption
thereof by written instrument to be maintained on file in the office of the
Clerk- Treasurer of the City, no owner of any Refunding Bond issued pursuant to this
ordinance shall have any right to object to the adoption of such supplemental ordinance
or to object to any of the terms and provisions contained therein or the operation
thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin
or restrain the Common Council of the City from adopting the same, or from taking any
• action pursuant to the provisions thereof. Upon the adoption of any supplemental
ordinance pursuant to the provisions of this section, this ordinance shall be, and shall be
deemed, modified and amended in accordance therewith, and the respective rights, duties
and obligations under this ordinance of the City and all owners of Refunding Bonds then
outstanding, shall thereafter be determined, exercised and enforced in accordance with
this ordinance, subject in all respects to such modifications and amendments.
Notwithstanding anything contained in the foregoing provisions of this ordinance, the
rights and obligations of the City and of the owners of the Refunding Bonds authorized by
this ordinance, and the terms and provisions of the Refunding Bonds and this ordinance,
or any supplemental or amendatory ordinance, may be modified or altered in any respect
with the consent of the City and the consent of the owners of all the Refunding Bonds
then outstanding.
C -26
" S e c . 2 2 . T a x C o v e n a n t s I n o r d e r t o p r e s e r v e t h e e x c l u s i o n o f i n t e r e s t o n t h e
R e f u n d i n g B o n d s f r o m g r o s s i n c o m e f o r f e d e r a l t a x p u r p o s e s u n d e r S e c t i o n 1 0 3 o f t h e
I n t e r n a l R e v e n u e C o d e o f 1 9 8 6 a s e x i s t i n g o n t h e d a t e o f i s s u a n c e o f t h e R e f u n d i n g B o n d s
( t h e " C o d e " ) a n d a s a n i n d u c e m e n t t o p u r c h a s e r s o f t h e R e f u n d i n g B o n d s , t h e C i t y
r e p r e s e n t s , c o v e n a n t s a n d a g r e e s t h a t :
( a ) N o p e r s o n o r e n t i t y o t h e r t h a n t h e C i t y o r a n o t h e r s t a t e o r l o c a l g o v e r n m e n t a l
u n i t w i l l u s e p r o c e e d s o f t h e R e f u n d i n g B o n d s o r p r o p e r t y f i n a n c e d b y t h e R e f u n d i n g
B o n d p r o c e e d s o t h e r t h a n a s a m e m b e r o f t h e g e n e r a l p u b l i c . N o p e r s o n o r e n t i t y o t h e r
t h a n t h e C i t y o r a n o t h e r s t a t e o r l o c a l g o v e r n m e n t a l u n i t w i l l o w n p r o p e r t y f i n a n c e d b y
R e f u n d i n g B o n d p r o c e e d s o r w i l l h a v e a n y a c t u a l o r b e n e f i c i a l u s e o f s u c h p r o p e r t y
p u r s u a n t t o a l e a s e , a m a n a g e m e n t o r i n c e n t i v e p a y m e n t c o n t r a c t , a r r a n g e m e n t s s u c h a s
t a k e - o r - p a y o r o u t p u t c o n t r a c t s o r a n y o t h e r t y p e o f a r r a n g e m e n t t h a t d i f f e r e n t i a t e s
t h a t p e r s o n ' s o r e n t i t y ' s u s e o f s u c h p r o p e r t y f r o m u s e b y t h e g e n e r a l p u b l i c .
" ( b ) N o p o r t i o n o f t h e p r i n c i p a l o f o r i n t e r e s t o n t h e R e f u n d i n g B o n d s i s ( u n d e r t h e
t e r m s o f t h e R e f u n d i n g B o n d s , t h i s o r d i n a n c e o r a n y u n d e r l y i n g a r r a n g e m e n t ) , d i r e c t l y o r
i n d i r e c t l y , s e c u r e d b y a n i n t e r e s t i n p r o p e r t y u s e d o r t o b e u s e d f o r a n y p r i v a t e b u s i n e s s
u s e o r p a y m e n t s i n r e s p e c t o f a n y p r i v a t e b u s i n e s s u s e o r p a y m e n t s i n r e s p e c t o f s u c h
P r o p e r t y o r t o b e d e r i v e d f r o m p a y m e n t s ( w h e t h e r o r n o t t o t h e C i t y ) i n r e s p e c t o f s u c h
p r o p e r t y o r b o r r o w e d m o n e y u s e d o r t o b e u s e d f o r a p r i v a t e b u s i n e s s u s e .
( c ) N o R e f u n d i n g B o n d p r o c e e d s w i l l b e l o a n e d t o a n y p e r s o n o r e n t i t y o t h e r t h a n
a n o t h e r s t a t e o r l o c a l g o v e r n m e n t a l u n i t . N o R e f u n d i n g B o n d p r o c e e d s w i l l b e
t r a n s f e r r e d , d i r e c t l y o r i n d i r e c t l y , o r d e e m e d t r a n s f e r r e d t o a n o n g o v e r n m e n t a l p e r s o n i n
a n y m a n n e r t h a t w o u l d i n s u b s t a n c e c o n s t i t u t e a l o a n o f t h e R e f u n d i n g B o n d p r o c e e d s .
( d ) T h e C i t y w i l l n o t t a k e a n y a c t i o n n o r f a i l t o t a k e a n y a c t i o n w i t h r e s p e c t t o t h e
R e f u n d i n g B o n d s t h a t w o u l d r e s u l t i n t h e l o s s o f t h e e x c l u s i o n f r o m g r o s s i n c o m e f o r
C - 2 7
e federal tax purposes on the Refunding Bonds pursuant to Section 103 of the Code, nor
will the City act in any other manner which would adversely affect such exclusion.
(e) It shall be not an event of default under this ordinance if the interest on any
Refunding Bond is not excludable from gross income for federal tax purposes or
otherwise pursuant to any provision of the Code which is not currently in effect and in
existence on the date of issuance of the Refunding Bonds.
(f) The City hereby covenants that it will rebate any arbitrage profits to the
United States to the extent required by the Code and the regulations promulgated
thereunder.
(g) These covenants are based solely on current law in effect and in existence on
the date of delivery of such Refunding Bonds.
(h) The City represents that:
(i) The bonds are not private activity bonds as defined in Section 141 of
O the Code;
(ii) The City hereby designates the bonds as qualified tax - exempt
obligations for purposes of Section 265(b) of the Code; and
(iii) The reasonably anticipated amount of qualified tax - exempt
obligations (including qualified 501(c)(3) obligations and tax - exempt leases but
excluding other private activity bonds) which will be issued by the City, and
all entities subordinate to the City during 1991 does not exceed $10,000,000.
(iv) The City will not designate more than $10,000,000 of qualified
tax - exempt obligations during 1991.
Therefore, the bonds qualify for the exception in the Code from the disallowance of
100% of the deduction by financial institutions of interest expense allocable to newly
acquired tax - exempt obligations.
•
C -28
" S e c . 2 3 . N o n c o m p l i a n c e w i t h T a x C o v e n a n t s N o t w i t h s t a n d i n g a n y o t h e r p r o v i s i o n s
o f t h i s o r d i n a n c e , t h e c o v e n a n t s a n d a u t h o r i z a t i o n s c o n t a i n e d i n t h i s o r d i n a n c e ( t h e " T a x
S e c t i o n s " ) w h i c h a r e d e s i g n e d t o p r e s e r v e t h e e x c l u s i o n o f i n t e r e s t o n t h e R e f u n d i n g
B o n d s f r o m g r o s s i n c o m e u n d e r f e d e r a l l a w ( t h e " T a x E x e m p t i o n " ) n e e d n o t b e c o m p l i e d
w i t h i f t h e C i t y r e c e i v e s a n o p i n i o n o f n a t i o n a l l y r e c o g n i z e d b o n d c o u n s e l t h a t a n y T a x
S e c t i o n i s u n n e c e s s a r y t o p r e s e r v e t h e T a x E x e m p t i o n .
S e c . 2 4 . C o n f l i c t i n g O r d i n a n c e s A l l o r d i n a n c e s a n d p a r t s o f o r d i n a n c e s i n c o n f l i c t
h e r e w i t h , e x c e p t t h e E x i s t i n g O r d i n a n c e , a r e h e r e b y r e p e a l e d ; p r o v i d e d , h o w e v e r , t h a t
t h i s o r d i n a n c e s h a l l n o t b e c o n s t r u e d o r a d v e r s e l y a f f e c t i n g t h e r i g h t s o f t h e o w n e r s o f
t h e R e f u n d e d B o n d s .
S e c . 2 5 . H e a d i n g s T h e h e a d i n g s o r t i t l e s o f t h e s e v e r a l s e c t i o n s s h a l l b e s o l e l y f o r
c o n v e n i e n c e o f r e f e r e n c e a n d s h a l l n o t a f f e c t t h e m e a n i n g , c o n s t r u c t i o n o r e f f e c t o f t h i s
o r d i n a n c e .
" S e c . 2 6 . E f f e c t i v e D a t e T h i s o r d i n a n c e s h a l l b e i n f u l l f o r c e a n d e f f e c t f r o m a n d
a f t e r i t s p a s s a g e .
P a s s e d a n d a d o p t e d b y t h e C o m m o n C o u n c i l o f t h e C i t y o f G r e e n c a s t l e t h i s _ & d a y
o f F e b r u a r y , 1 9 9 1 .
C O M
P r e s i d i n g O f f i c e r
A t t e s t :
C l e " k - T r e a s u r e r
W . i ]
z
• Presented by me to the Mayor of the City of Greencastle this Iv of February,
1991 at o:l 4m.
l� L n E
I rk- Treasu e
Signed and approved by me, the Mayor of the City of Greencastle, this L76 day of
February, 1991 at LQ_ig Pin.
Z - " t- 'e z
Mayor
•
•
C -30