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O R D I N A N C E N O . - 3
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 W a t e r w o r k s R e v e n u e B o n d s o f 1 9 7 9 ; a u t h o r i z i n g t h e i s s u a n c e o f
W a t e r 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 w a t e r 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 W a t e r 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 w a t e r 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
w a t e r w o r k s p u r s u a n t t o I C 8 - 1 . 5 , 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 w a t e r w o r k s s h o u l d b e r e f u n d e d t o r e m o v e r e s t r i c t i v e c o v e n a n t s
i n t h e e x i s t i n g o b l i g a t i o n s o f t h e w a t e r w o r k s t h a t i m p e d e a d d i t i o n a l f i n a n c i n g ; 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 r e d e m p t i o n p r e m i u m a n d 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
$ 6 4 5 , 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 w a t e r 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 w a t e r 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
n
U
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 a n d i m p r o v e m e n t o f t h e C i t y ' s w a t e r 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 " W a t e r w o r k s R e v e n u e B o n d s o f 1 9 7 9 , " d a t e d
N o v e m b e r 1 , 1 9 7 9 ( t h e " 1 9 7 9 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 , 0 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 $ 6 1 5 , 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 0 i n c l u s i v e , w h i c h 1 9 7 9 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 2 9 % o f t h e g r o s s
r e v e n u e s o f t h e w a t e r w o r k s ; a n d
C - 1
1y It
• WHEREAS, the Common Council finds that the 1979 Bonds (the "Refunded Bonds ")
should be refunded pursuant to the provisions of IC 5 -1 -5 to enable the City to obtain the
release of restrictive covenants which are impeding additional financings; and
WHEREAS, the Common Council finds that it is advisable to issue its refunding
revenue bonds in the amount of $645,000 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
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 8 -1.5 (collectively, the "Act ");
NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY
OF GREENCASTLE THAT:
Sec. 1. Issuance of Refunding Bonds; Redemption of Refunded Bonds
(a) The City, being the owner of and engaged in operating an unencumbered
• waterworks supplying the City, its inhabitants, and the residents adjacent thereto, with
water for public and domestic use, now finds it necessary to provide funds for refunding
the Refunded Bonds and relieving itself of restrictive covenants which impede additional
financing in accordance with the Act. The refunding will allow the City to reduce the
amounts required to be held in the Bond and Interest Redemption Account, the Operation
and Maintenance Account and the Depreciation Account which, in turn, will release funds
to refund the Refunded Bonds, to fund the hereinafter described Debt Service Reserve
Account and future improvements to the waterworks and for other lawful purposes and
will provide for a more efficient flow of funds and application of revenues of the
waterworks which will enhance future waterworks financings. The terms "waterworks,"
"waterworks system," "works," "system," and words of like import where used in this
ordinance shall be construed to mean and include the existing waterworks system and all
real estate and equipment used in connection therewith and appurtenances thereto, and
E
C -2
" a l l e x t e n s i o n s , a d d i t i o n s a n d i m p r o v e m e n t s t h e r e t o a n d r e p l a c e m e n t s t h e r e o f n o w o r a t
a n y t i m e h e r e a f t e r c o n s t r u c t e d o r a c q u i r e d .
( b ) T h e C i t y s h a l l i s s u e i t s " W a t e r 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 a 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 $ 6 4 5 , 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 $ 6 3 3 , 4 5 0 a n d 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 ) . 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 s h a l l 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
$ 6 5 , 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
7 5 , 0 0 0
6 . 1 5
1 9 9 6
8 0 , 0 0 0
6 . 3 0
1 9 9 7
8 5 , 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
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 F i r s t - C i t i z e n s B a n k a n d T r u s t C o m p a n y o f
G r e e n c a s t l e , 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 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 B o n d s . T h e
"
C - 3
I. f
• 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. The City, Registrar and Paying Agent
for the Refunding Bonds may treat and consider the person in whose name such
•
C -4
" R e f u n d i n g B o n d s a r e 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 t 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 t h e r e o f a n d
i n t e r e s t d u e t h e r e o n .
T h e R e g i s t r a r a n d P a y i n g A g e n t m a y a t a n y t i m e r e s i g n 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 u p o n g i v i n g 3 0 d a y s ' n o t i c e i n w r i t i n g t o t h e C i t y a n d b y f i r s t c l a s s m a i l t o e a c h
r e g i s t e r e d o w n e r o f t h e R e f u n d i n g B o n d s t h e n o u t s t a n d i n g , a n d s u c h r e s i g n a t i o n w i l l t a k e
e f f e c t a t t h e e n d o f s u c h 3 0 d a y p e r i o d o r u p o n t h e e a r l i e r a p p o i n t m e n t o f a s u c c e s s o r
r e g i s t r a r a n d p a y i n g a g e n t b y t h e C i t y . A n y s u c h n o t i c e t o t h e C i t y m a y b e s e r v e d
p e r s o n a l l y o r s e n t b y r e g i s t e r e d m a i l . T h e R e g i s t r a r a n d P a y i n g A g e n t m a y b e r e m o v e d
a t a n y t i m e 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 b y t h e C i t y , i n w h i c h e v e n t t h e C i t y m a y
a p p o i n t a s u c c e s s o r r e g i s t r a r a n d p a y i n g a g e n t . T h e C i t y s h a l l n o t i f y e a c h r e g i s t e r e d
o w n e r o f t h e R e f u n d i n g B o n d s t h e n o u t s t a n d i n g b y f i r s t c l a s s m a i l o f t h e r e m o v a l o f t h e
R e g i s t r a r a n d P a y i n g A g e n t . N o t i c e s t o t h e r e g i s t e r e d 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 b e d e e m e d t o b e g i v e n w h e n m a i l e d b y f i r s t c l a s s m a i l t o t h e a d d r e s s e s o f s u c h
r e g i s t e r e d o w n e r s a s t h e y a p p e a r o n t h e r e g i s t r a t i o n b o o k s k e p t b y t h e R e g i s t r a r .
U p o n t h e a p p o i n t m e n t o f a n y s u c c e s s o r r e g i s t r a r a n d p a y i n g a g e n t b y t h e C i t y , t h e
C l e r k - T r e a s u r e r i s a u t h o r i z e d a n d d i r e c t e d t o e n t e r i n t o s u c h a g r e e m e n t s a n d
u n d e r s t a n d i n g s w i t h s u c h s u c c e s s o r r e g i s t r a r a n d p a y i n g a g e n t a s w i l l e n a b l e t h e
i n s t i t u t i o n t o p e r f o r m t h e s e r v i c e s r e q u i r e d o f a 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 b o n d s .
T h e C l e r k - T r e a s u r e r i s f u r t h e r a u t h o r i z e d t o p a y s u c h f e e s a s t h e s u c c e s s o r r e g i s t r a r a n d
p a y i n g a g e n t m a y c h a r g e f o r t h e s e r v i c e s i t p r o v i d e s 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 a n d
s u c h f e e s m a y b e p a i d f r o m t h e W a t e r w o r k s 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 h e r e o f .
A n y p r e d e c e s s o r r e g i s t r a r a n d p a y i n g a g e n t s h a l l d e l i v e r a l l o f t h e R e f u n d i n g B o n d s a n d
a n y c a s h o r i n v e s t m e n t s i n i t s p o s s e s s i o n w i t h r e s p e c t t h e r e t o , t o g e t h e r w i t h t h e
r e g i s t r a t i o n b o o k s , t o t h e s u c c e s s o r r e g i s t r a r a n d p a y i n g a g e n t .
"
C - 5
" 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 s h a l l b e p a y a b l e f r o m t h e i n t e r e s t p a y m e n t d a t e t o
w h i c h i n t e r e s t h a s b e e n p a i d n e x t p r e c e d i n g t h e a u t h e n t i c a t i o n d a t e o f t h e R e f u n d i n g
B o n d s u n l e s s t h e R e f u n d i n g B o n d s a r e a u t h e n t i c a t e d a f t e r t h e f i f t e e n t h d a y o f t h e m o n t h
p r e c e d i n g a n i n t e r e s t p a y m e n t d a t e a n d o n o r b e f o r e s u c h i n t e r e s t p a y m e n t d a t e i n w h i c h
c a s e t h e y s h a l l b e a r i n t e r e s t f r o m s u c h i n t e r e s t p a y m e n t d a t e , o r u n l e s s t h e R e f u n d i n g
B o n d s a r e a u t h e n t i c a t e d o n o r b e f o r e J u n e 1 5 , 1 9 9 1 , i n w h i c h c a s e t h e y s h a l l b e a r
i n t e r e s t f r o m t h e o r i g i n a l d a t e u n t i l t h e p r i n c i p a l s h a l l b e f u l l y p a i d .
S e c . 3 . R e d e m p t i o n o f R e f u n d i n g B o n d s T h e R e f u n d i n g B o n d s 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 ;
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 g i v e n a t l e a s t 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 b y m a i l 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 a
R e f u n d i n g B o n d . S u c h n o t i c e 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 s 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 . 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 R e f u n d i n g 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 s h a l l 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
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 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 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 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 . 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
"
C - 6
0
E
redemption price, the Refunding Bonds so called for redemption shall be surrendered for
cancellation.
Sec. 4. Execution and Negotiability Each of the Refunding Bonds shall be
•
executed in the name of the City by the manual or facsimile signature of the Mayor of
the City, attested by the manual or facsimile signature of its Clerk- Treasurer and the
seal of the City shall be affixed, imprinted or impressed to or on each of the Refunding
Bonds manually, by facsimile or any other means; and these officials, by the execution of
a Signature and No Litigation Certificate, shall adopt as and for their own proper
signatures the facsimile signatures appearing on the Refunding Bonds. In case any
officer whose signature or facsimile signature appears on the Refunding Bonds shall
cease to be such officer before the delivery of the Refunding Bonds, the signature of
such officer shall nevertheless be valid and sufficient for all purposes the same as if such
officer had remained in office until such delivery.
The Refunding Bonds shall have all of the qualities and incidents of negotiable
instruments under the laws of the State of Indiana, subject to the provisions for
registration herein.
The Refunding Bonds shall also be authenticated by the manual signature of the
Registrar and no Refunding Bond shall be valid or become obligatory for any purpose
until the certificate of authentication thereon has been so executed.
Sec. 5. Form of Bonds The form and tenor of the Refunding Bonds shall be
substantially as follows, all blanks to be filled in properly prior to delivery;
UNITED STATES OF AMERICA
STATE OF INDIANA COUNTY OF PUTNAM
Interest Maturity Original Authentication
Rate Date Date Date
•
C -7
" C I T Y O F G R E E N C A S T L E
W A T E R 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 O F 1 9 9 1
R E G I S T E R E D O W N E R :
P R I N C I P A L S U M :
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 , S t a t e o f I n d i a n a , f o r v a l u e
r e c e i v e d , h e r e b y p r o m i s e s t o p a y t o t h e R e g i s t e r e d O w n e r n a m e d a b o v e o r
r e g i s t e r e d a s s i g n s , s o l e l y o u t o f t h e s p e c i a l r e v e n u e f u n d h e r e i n a f t e r r e f e r r e d
t o , t h e P r i n c i p a l S u m s e t f o r t h a b o v e o n t h e M a t u r i t y D a t e s e t f o r t h a b o v e
( u n l e s s t h i s b o n d b e s u b j e c t t o a n d b e c a l l e d f o r r e d e m p t i o n p r i o r t o m a t u r i t y
a s h e r e i n a f t e r p r o v i d e d ) , a n d t o p a y i n t e r e s t t h e r e o n a t t h e I n t e r e s t R a t e p e r
a n n u m s t a t e d a b o v e f r o m t h e i n t e r e s t p a y m e n t d a t e t o w h i c h i n t e r e s t h a s
b e e n p a i d n e x t p r e c e d i n g t h e A u t h e n t i c a t i o n D a t e o f t h i s b o n d u n l e s s t h i s b o n d
i s a u t h e n t i c a t e d a f t e r t h e f i f t e e n t h d a y o f t h e m o n t h p r e c e d i n g a n i n t e r e s t
p a y m e n t d a t e a n d o n o r b e f o r e s u c h i n t e r e s t p a y m e n t d a t e i n w h i c h c a s e i t
s h a l l b e a r i n t e r e s t f r o m s u c h i n t e r e s t p a y m e n t d a t e o r u n l e s s t h i s b o n d i s
a u t h e n t i c a t e d o n o r b e f o r e J u n e 1 5 , 1 9 9 1 , i n w h i c h c a s e i t s h a l l b e a r i n t e r e s t
f r o m t h e O r i g i n a l D a t e , u n t i l t h e p r i n c i p a l i s p a i d , w h i c h i n t e r e s t i s p a y a b l e
s e m i a n n u a l l y o n t h e f i r s t d a y s o f J a n u a r y a n d J u l y 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 p r i n c i p a l o f t h i s b o n d i s p a y a b l e a t t h e p r i n c i p a l o f f i c e o f
F i r s t - C i t i z e n s B a n k a n d T r u s t C o m p a n y ( 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 " ) , i n
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 . A l l p a y m e n t s o f i n t e r e s t o n t h i s b o n d s h a l l
b e p a i d b y c h e c k , m a i l e d o n e b u s i n e s s d a y p r i o r t o t h e i n t e r e s t p a y m e n t d a t e
t o t h e r e g i s t e r e d o w n e r h e r e o f a s o f t h e f i f t e e n t h d a y o f t h e m o n t h p r e c e d i n g
s u c h i n t e r e s t p a y m e n t d a t e a t t h e a d d r e s s a s i t a p p e a r s o n t h e r e g i s t r a t i o n
b o o k s k e p t b y t h e R e g i s t r a r o r a t s u c h o t h e r a d d r e s s a s i s p r o v i d e d t o t h e
P a y i n g A g e n t i n w r i t i n g b y t h e r e g i s t e r e d o w n e r . A l l p a y m e n t s o n t h e b o n d
s h a l l b e m a d e i n a n y c o i n o r c u r r e n c 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 , w h i c h
o n t h e d a t e s o f s u c h p a y m e n t , s h a l l b e l e g a l t e n d e r f o r t h e p a y m e n t o f p u b l i c
a n d p r i v a t e d e b t s .
T H E C I T Y S H A L L N O T B E O B L I G A T E D T O P A Y T H I S B O N D O R T H E
I N T E R E S T H E R E O N E X C E P T F R O M T H E H E R E I N A F T E R D E S C R I B E D
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
"
C - 8
" 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 .
M
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 i t s 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
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
F I R S T - C I T I Z E N S B A N K A N D T R U S T
C O M P A N Y ,
a s R e g i s t r a r
B y
A u t h o r i z e d R e p r e s e n t a t i v e
( 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 S i x H u n d r e d F o r t y - f i v e T h o u s a n d D o l l a r s
( $ 6 4 5 , 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 I u p ; i s s u e d f o r t h e p u r p o s e o f
"
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 .
C - 9
" a d v a n c e r e f u n d i n g c e r t a i n 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 W a t e r w o r k s R e v e n u e B o n d s o f 1 9 7 9 ; a u t h o r i z i n g
t h e i s s u a n c e o f W a t e r 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 w a t e r 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 W a t e r 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 5 - 1 . 5 ( 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 s a i d a d v a n c 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 , 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 W a t e r 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
w a t e r 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 w a t e r 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 C i t y , a s d e f i n e d i n t h e
O r d i n a n c e ) 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 .
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 w a t e r 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 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 a t e r 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 u n d e r I n d i a n a l a w .
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 w a t e r 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
M i l o ]
" 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 w a t e r 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
w a t e r w o r k s .
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 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 ;
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 r 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
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 . 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 .
"
C - 1 1
" 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 C i t y o f G r e e n c a s t l e h a s d e s i g n a t e d t h e b o n d s a s q u a l i f i e d
t a x - e x e m p t o b l i g a t i o n s t o q u a l i f y t h e b o n d s f o r t h e 5 1 0 , 0 0 0 , 0 0 0 e x c e p t i o n
f r o m t h e p r o v i s i o n s o f S e c t i o n 2 6 5 ( b ) 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
r e l a t i n g t o t h e d i s a l l o w a n c e o f 1 0 0 % o f t h e d e d u c t i o n f o r i n t e r e s t e x p e n s e
a l l o c a b l e t o t a x - e x e m p t o b l i g a t i o n s .
T h e b o n d s m a t u r i n g i n a n v 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 .
S e c . 6 . A u t h o r i z a t i o n f o r P r e p a r a t i o n a n d S a l e o f t h e R e f u n d i n g B o n d s ( a ) T h e
C l e r k - T r e a s u r e r i s h e r e b y a u t h o r i z e d a n d d i r e c t e d t o h a v e t h e R e f u n d i n g B o n d s p r e p a r e d ,
a n d t h e M a y o r a n d C l e r k - T r e a s u r e r a r e h e r e b y 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 a n d
a t t e s t t h e R e f u n d i n g B o n d s i n t h e f o r m a n d m a n n e r p r o v i d e d h e r e i n . T h e
C l e r k - T r e a s u r e r i s h e r e b y a u t h o r i z e d a n d d i r e c t e d t o d e l i v e r t h e R e f u n d i n g B o n d s t o
R a f f e n s p e r g e r , H u g h e s d o C o . , I n c . ( t h e " U n d e r w r i t e r " ) i n a c c o r d a n c e w i t h t h e P u r c h a s e
C - 1 2
" C o n t r a c t ( t h e " P u r c h a s e C o n t r a c t " ) b e t w e e n t h e C i t y a n d t h e U n d e r w r i t e r . T h e M a y o r
a n d t h e 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 t o e x e c u t e t h e P u r c h a s e C o n t r a c t a t t a c h e d t o
t h i s o r d i n a n c e .
( b ) F i r s t - C i t i z e n s B a n k a n d T r u s t C o m p a n y o f G r e e n c a s t l e , 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 a s e s c r o w t r u s t e e ( " E s c r o w T r u s t e e " ) f o r t h e R e f u n d e d B o n d s 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 s c r o w A g r e e m e n t , b e t w e e n t h e C i t y a n d t h e E s c r o w
T r u s t e e ( " E s c r o w A g r e e m e n t " ) . T h e s u b s t a n t i a l l y f i n a l f o r m o f E s c r o w A g r e e m e n t
a t t a c h e d h e r e t o i s h e r e b y a p p r o v e d b y t h e C o m m o n C o u n c i l , a n d t h e M a y o r a n d t h e
C l e r k - T r e a s u r e r a r e h e r e b y a u t h o r i z e d a n d d i r e c t e d t o c o m p l e t e , e x e c u t e a n d a t t e s t t h e
s a m e o n b e h a l f o f t h e C i t y s o l o n g a s i t s p r o v i s i o n s a r e 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 .
( c ) T h e R e f u n d i n g B o n d s w h e n f u l l y p a i d f o r a n d d e l i v e r e d t o t h e U n d e r w r i t e r ,
s h a l l b e t h e b i n d i n g s p e c i a l r e v e n u e o b l i g a t i o n s o f t h e C i t y , 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 ( h e r e i n d e f i n e d a s g r o s s r e v e n u e s a f t e r d e d u c t i o n o n l y f o 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 w a t e r w o r k s t o b e s e t
a s i d e i n t o t h e W a t e r w o r k s 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 h e p r o p e r o f f i c e r s o f t h e
C i t y a r e h e r e b y d i r e c t e d t o s e l l t h e R e f u n d i n g B o n d s t o t h e U n d e r w r i t e r , t o d r a w a l l
p r o p e r a n d n e c e s s a r y w a r r a n t s , a n d t o d o w h a t e v e r a c t s a n d t h i n g s w h i c h m a y b e
n e c e s s a r y t o c a r r y o u 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 .
( 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
"
C - 1 3
" 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 l e g 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 f o r 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 t h e 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 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 .
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
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 a s h e r e i n
p r o v i d e d .
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 l e g a l 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 .
S e c . S . 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 .
"
C - 1 4
" 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 w a t e r 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
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 w a t e r 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 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 p l e d g e d t o 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 a n d p r i n c i p a l o f s u c h 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 n e c e s s a r y f o r t h a t
p u r p o s e .
S e c . 1 1 . R e v e n u e F u n d A l l 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 o f t h e w a t e r w o r k s
a n d f r o m t h e c o l l e c t i o n o f w a t e r r a t e s a n d c h a r g e s s h a l l b e d e p o s i t e d i n t h e R e v e n u e
F u n d , h e r e b y c r e a t e d , a n d s e g r e g a t e d a n d d e p o s i t e d a s s e t f o r t h i n t h i s o r d i n a n c e . O f
"
C - 1 5
" t h e s e r e v e n u e s 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 s h a l l b e p a i d , t h e p r i n c i p a l a n d i n t e r e s t o f a l l b o n d s a n d f i s c a l a g e n c y
c h a r g e s o f r e g i s t r a r s o r p a y i n g a g e n t s s h a l l b e p a i d , a n d t h e c o s t s o f r e p l a c e m e n t s ,
e x t e n s i o n s , a d d i t i o n s a n d i m p r o v e m e n t s s h a l l b e p a i d .
S e c . 1 2 . 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 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
p u r s u a n t t o t h e o r d i n a n c e a u t h o r i z i n g t h e R e f u n d e d B o n d s ( t h e " E x i s t i n g O r d i n a n c e " ) i n
a n a m o u n t e q u a l t o 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 w a t e r w o r k s
f o r a t w o - m o n t h p e r i o d , a s c a l c u l a t e d b y t h e C l e r k ' t r e a s u r e r , 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 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 c r e a t e d h e r e b y a s o f t h e d a t e o f
t h e a d v a n c 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 . 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 ,
r e v e n u e s o f t h e w a t e r w o r k s s h a l l t h e r e a f t e r b e t r a n s f e r r e d f r o m t h e R e v e n u e F u n 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 h e b a l a n c e m a i n t a i n e d i n t h i s F u n d s h a l l b e s u f f i c i e n t
t o p a y 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 f o r t h e t h e n n e x t s u c c e e d i n g
" t w o c a l e n d a r m o n t h s . T h e m o n e y s c r e d i t e d t o t h i s F u n d s h a l l b e u s e d f o 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 a n d p r o p e r 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 e x p e n s e s o f t h e w a t e r w o r k s
o n a d a y - t o - d a y b a s i s . A n y m o n i e s i n s a i d F u n d m a y b e t r a n s f e r r e d t o t h e W a t e r 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 o f o r i n t e r e s t
o n t h e o u t s t a n d i n g b o n d s o f t h e w a t e r w o r k s .
S e c . 1 3 . W a t e r w o r k s S i n k i n g F u n d ( a ) T h e r e i s h e r e b y c r e a t e d a s i n k i n g f u n d f o r
t h e 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 r e v e n u e 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 N e t R e v e n u e s o f t h e w a t e r w o r k s a n d t h e p a y m e n t o f a n y f i s c a l 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
" W a t e r w o r k s S i n k i n g F u n d " ( h e r e i n , " W a t e r 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 w a t e r 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
"
C - 1 6
the Sinking Fund. Such payments shall continue until the balances in the Bond and
Interest Account and the Reserve Account, equal the principal of and interest on all of
the then outstanding bonds of the waterworks to the final maturity and provide for
payment of all fiscal agency charges.
(b) Bond and Interest Account Any moneys heretofore accumulated to pay
principal and interest for the Refunded Bonds shall be credited to and become a part of
the Trust Account under the Escrow Agreement and shall be applied on the first payment
made from the Trust Account. Beginning as of the date of issuance of the Refunding
Bonds, there shall be credited on the last day of each calendar month from the Revenue
Fund to the Bond and Interest Account an amount of the Net Revenues equal to (i) one -
sixth (1/6) of the interest on all then outstanding bonds payable on the then next
succeeding interest payment date and (ii) one - twelfth (1/12) of the principal on all
outstanding bonds payable on the then next succeeding principal payment date, until the
• amount of interest and principal payable on the then next succeeding interest and
principal payment dates shall have been so credited. There shall similarly be credited to
the account any amount necessary to pay the bank fiscal agency charges for paying
interest on outstanding bonds as the same become payable. The City shall, from the
sums deposited in the Sinking Fund and credited to the Bond and Interest Account, remit
promptly to the registered owner or to the bank fiscal agency sufficient moneys to pay
the interest and principal on the due dates thereof together with the amount of bank
fiscal agency charges.
(c) Reserve Account The City shall, on the date of delivery of the Refunding
Bonds, deposit funds on hand, proceeds of the Refunding Bonds, or a combination thereof,
as a reserve for the Refunding Bonds, into the Reserve Account. The initial deposit or
the balance accumulated in the Reserve Account shall equal but not exceed (i) maximum
annual debt service on the Refunding Bonds, (ii) 125% of average annual debt service on
e
C_1,
" 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 a s d e f i n e d i n 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 ( " 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 i n t e r e s t e a r n i n g s t h a t a c c u m u l a t e 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 b e c o n s i d e r e d a s r e v e n u e s o f t h e w a t e r w o r k s .
S e c . 1 4 . W a t e r 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 " W a t e r 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 , 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 w a t e r 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 m o n e y s o f t h e w a t e r 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 e
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 w a t e r 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 W a t e r 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 W a t e r 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
e
C _ 1 8
S Reserve Account of the Waterworks Sinking Fund or may be transferred to the Operation
and Maintenance Fund to meet unforeseen contingencies in the operation, repair and
maintenance of the waterworks.
Sec. 15. Investments 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 Waterworks 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. 16. 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 (including obligations issued or held in book
entry form on the books of) the Department of the Treasury, 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
s
C -19
0
c .r
CERTIFICATE OF RECOGNITION
for
GREENCASTLE 111(:11 SCIIOOL
The Greencastle CitY Council and the Adminishatiore of (lie Cite of Greencastle do
hereby congratulate Greerrcaslle High School, it's students, facullr, coaches and players for
being named:
#1 IN CLASS 2A AP HIGH SCHOOL FOOTBALL
The citizens of Greencastle are cooling fur you as you shire to reach your team goals
during this remaining season and post season. We are proud of your accomplishments and wish
you continued success.
GO GREENCASTLE IIIGII SCIIOOL!!!
THE COMMON COUNCIL OF THE CITY OF GREENCASTLE, INDIANA
Shcri--Z. Roach
Coll nav
P. Sedlack
Approved and si vnerl by lire this 8th day o Oc�
Approved b j I ex, 191 at Q o'clock Ill. Michael Af. Harmless, Mayor
ATTEST:
Jur h Berry, Cie r ; - Treasurer
designated portion thereof issued hereunder shall no longer be deemed outstanding or
entitled to the pledge of the Net Revenues of the City's waterworks.
Sec. 17. Rate Covenant The City shall establish, maintain and collect reasonable
and just rates and charges for facilities and services afforded and rendered by said water
utility, which shall to the extent permitted by law produce sufficient revenues at all
times to pay all the legal and other necessary expense incident to the operation of such
utility, to include maintenance costs, operating charges, upkeep, repairs, interest charges
on bonds or other obligations, to provide the sinking fund and debt service reserve for the
liquidation of bonds or other evidences of indebtedness, to provide adequate funds to be
used as working capital, as well as funds for making extensions, additions, and
replacement, and also, for the payment of any taxes that may be assessed against such
utility, it being the intent and purpose hereof that such charges shall produce an income
sufficient to maintain such utility property in a sound physical and financial condition to
• render adequate and efficient service. So long as any of the Refunding Bonds herein
authorized are outstanding, none of the facilities or services afforded or rendered by said
system shall be furnished without a reasonable and just charge being made therefor. The
City shall pay like charges for any and all services rendered by said utility to the City,
and all such payments shall be deemed to be revenues of the utility. Such rates or
charges shall, if necessary, be changed and readjusted from time to time so that the
revenues therefrom shall always be sufficient to meet the expenses of operation and
maintenance, and said requirements of the Sinking Fund.
Sec. 18. Additional Bond Provisions The City reserves the right to authorize and
issue additional bonds payable out of the Net Revenues of its waterworks ranking on a
parity with the Refunding Bonds for the purpose of financing the cost of future additions,
extensions and improvements to its waterworks, or to refund obligations, subject to the
following conditions:
C -20
(a) All required payments into the Sinking Fund shall have been made in
•
accordance with the provisions of this ordinance, and the interest on and principal of all
bonds payable from the Net Revenues of the waterworks shall have been paid in
accordance with their terms.
(b) The Net Revenues of the waterworks 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 water 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 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 waterworks,
• including the additional parity bonds proposed to be issued.
For purposes of this subsection, the records of the waterworks shall be analyzed and
all showings prepared by a certified public accountant employed by the City for that
purpose.
(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. 19. 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:
is
C -21
G
• (a) So long as any of the Refunding Bonds are outstanding, the City shall at all
times maintain the waterworks system in good condition, and operate the same in an
efficient manner and at a reasonable cost.
(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 waterworks
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 18 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.
•
C -22
® (e) The provisions of this ordinance shall constitute a contract by and between
the City and the owners of the Refunding Bonds herein authorized, all the terms of which
shall be enforceable by any bondholder by any and all appropriate proceedings in law or in
equity. After the issuance of the Refunding Bonds, this ordinance shall not be repealed,
amended or modified in any respect which will adversely affect the rights or interests of
the owners of the Refunding Bonds, nor shall the Common Council or any other body of
the City adopt any law, ordinance or resolution in any way adversely affecting the rights
of the bondholders so long as any of the Refunding Bonds, or the interest thereon, remain
outstanding or unpaid. Except in the case of changes described in Section 20 (a) -(f), this
ordinance may be amended, however, without the consent of bondowners, if the Common
Council determines, in its sole discretion, that such amendment would not adversely
affect the owners of the Refunding Bonds.
(f) The provisions of this ordinance shall be construed to create a trust in the
proceeds of the sale of the Refunding Bonds herein authorized for the uses and purposes
herein set forth, and the owners of the Refunding Bonds shall retain a lien on such
proceeds until the same are applied in accordance with the provisions of this ordinance
and of said governing Act. The provisions of this ordinance shall also be construed to
create a trust in the Net Revenues herein directed to be set apart and paid into the
Sinking Fund for the uses and purposes of that Fund as in this ordinance set forth. The
owners of the Refunding Bonds shall have all the rights, remedies and privileges set forth
under Indiana law in the event the City shall fail or refuse to fix and collect sufficient
rates and charges, or shall fail or refuse to operate and maintain said system and to apply
properly the revenues derived from the operation thereof, or if there be a default in the
payment of the interest on or principal of the Refunding Bonds.
1
C -23
(g) None of the provisions of this ordinance shall be construed as requiring the
expenditure of any funds of the City derived from any sources other than the proceeds of
the Refunding Bonds and the operation of the waterworks system.
Sec. 20. Amendments with Consent of Bondholders Subject to the terms and
provisions contained in this section, and not otherwise, the owners of not less than sixty -
six and two - thirds percent (66 2/3 %) in aggregate principal amount of the Refunding
Bonds issued pursuant to this ordinance and then outstanding shall have the right from
time to time, anything contained in this ordinance to the contrary notwithstanding, to
consent to and approve the adoption by the Common Council of the City of such
ordinance or ordinances supplemental hereto or amendatory hereof, as shall be deemed
necessary or desirable by the City for the purpose of modifying, altering, amending,
adding to or rescinding in any particular manner any of the terms or provisions contained
in this ordinance, or in any supplemental ordinance; provided, however, that nothing
® herein contained shall permit or be construed as permitting:
(a) An extension of the maturity of the principal of or interest on, or any
mandatory sinking fund redemption date for, any Refunding Bond issued pursuant to this
ordinance; or
(b) A reduction in the principal amount of any Refunding Bond or the redemption
premium or the rate of interest thereon; or
(c) The creation of a lien upon or a pledge of the revenues or Net Revenues of the
waterworks ranking prior to the pledge thereof created by this ordinance; or
(d) A preference or priority of any Refunding Bond or Refunding Bonds issued
pursuant to this ordinance over any other Refunding Bond or Refunding Bonds issued
pursuant to the provisions of this ordinance; or
C -24
-r
®
(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.
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 -2s
" S e c . 2 1 . 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 , 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 .
i s ( 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 6
" F e d e r a l t a x p u r p o s e s o n t h e R e f u n d i n g B o n d s p u r s u a n t t o S e c t i o n 1 0 3 o f t h e C o d e , n o r
w i l l t h e C i t y a c t i n a n y o t h e r m a n n e r w h i c h w o u l d a d v e r s e l y a f f e c t s u c h e x c l u s i o n .
( e ) I t s h a l l n o t b e a n e v e n t o f d e f a u l t u n d e r t h i s o r d i n a n c e i f t h e i n t e r e s t o n a n y
R e f u n d i n g B o n d i s n o t e x c l u d a b l e 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 o r
o t h e r w i s e p u r s u a n t t o a n y p r o v i s i o n o f t h e C o d e w h i c h i s n o t c u r r e n t l y i n e f f e c t a n d i n
e x i s t e n c e 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 .
( f ) T h e C i t y h e r e b y c o v e n a n t s t h a t i t w i l l r e b a t e a n y a r b i t r a g e p r o f i t s t o t h e
U n i t e d S t a t e s t o t h e e x t e n t r e q u i r e d b y t h e C o d e a n d t h e r e g u l a t i o n s p r o m u l g a t e d
t h e r e u n d e r .
( g ) T h e C i t y r e p r e s e n t s t h a t :
( 1 ) T h e R e f u n d i n g B o n d s a r e n o t p r i v a t e a c t i v i t y b o n d s a s d e f i n e d i n
S e c t i o n 1 4 1 o f t h e C o d e ;
( 2 ) T h e C i t y h e r e b y d e s i g n a t e s t h e R e f u n d i n g B o n d s a s q u a l i f i e d
� t a x - e x e m p t o b l i g a t i o n s f o r p u r p o s e s o f S e c t i o n 2 6 5 ( b ) o f t h e C o d e ;
( 3 ) T h e r e a s o n a b l y a n t i c i p a t e d a m o u n t o f q u a l i f i e d t a x - e x e m p t
o b l i g a t i o n s ( i n c l u d i n g q u a l i f i e d 5 0 1 ( c ) ( 3 ) o b l i g a t i o n s a n d t a x - e x e m p t
l e a s e s b u t e x c l u d i n g o t h e r p r i v a t e a c t i v i t y b o n d s ) w h i c h w i l l b e i s s u e d b y
t h e C i t y a n d a l l e n t i t i e s s u b o r d i n a t e t o t h e C i t y d u r i n g 1 9 9 1 d o e s n o t
e x c e e d $ 1 0 , 0 0 0 , 0 0 0 ; a n d
( 4 ) T h e C i t y h a s n o t d e s i g n a t e d a n d w i l l n o t d e s i g n a t e m o r e t h a n
$ 1 0 , 0 0 0 , 0 0 0 o f q u a l i f i e d t a x - e x e m p t o b l i g a t i o n s d u r i n g 1 9 9 1 .
T h e r e f o r e , t h e R e f u n d i n g B o n d s q u a l i f y f o r t h e e x c e p t i o n i n t h e C o d e f r o m t h e
d i s a l l o w a n c e o f 1 0 0 % o f t h e d e d u c t i o n b y f i n a n c i a l i n s t i t u t i o n s o f i n t e r e s t e x p e n s e
a l l o c a b l e t o n e w l y a c q u i r e d t a x - e x e m p t o b l i g a t i o n s .
I Q
C - 2 7
" 1 1 �� �� y
e N T h e s e c o v e n a n t s a r e b a s e d s o l e l y o n c u r r e n t l a w i n e f f e c t a n d i n e x i s t e n c e o n
t h e d a t e o f d e l i v e r y o f s u c h R e f u n d i n g B o n d s .
S e c . 2 2 . 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 3 . 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 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 a s 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 4 . 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
e o r d i n a n c e .
S e c . 2 5 . 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 1 2
d a y o f F e b r u a r y , 1 9 9 1 .
C O M M O N C O U N C I L
P r e s i d i n g O f f i c e r
A t t e s t :
1 7 Z L
e r k - T r e a s u r e r
E l
C - 2 8
i, %
® Presented by me to the Mayor of the City of Greencastle on the (z I L day of
February, 1991, at the hour of )O, I� e M.
l�C',4h,c
C e k- Treasu er
Signed and approved by me, the Mayor of the City of Greencastle, on the I Z I - 1 1 day
of February, 1991, at the hour of M.
Mayor
L °J
C -29