Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1910-07-13


of the said city shall hereafter de-
termine to operate the said tele-
phone system by and on behalf
of the said city, the same shall be
operated by and through the City
Council of the said CITY, and such
council shall have power to make
all needful rules and regulations
respecting the operation of the
same, including the power to fix
and prescribe rates and charges,
but such rates and charges shall
be high enough to produce a rev.
enue sufficient to bear all the costs of
maintenance and operation and to
meet interest charges on all of the
certificates that may be issued for
the purpose of raising the neces-
sary means wherewith to build,
construct and install such system,
and to permit the accumulation of
a surplus or sinking fund that
will be sufficient to meet all out
standing certificates at their ma
turity.
Section 8. For the purpose of
raising the necessary funds where
with to build. construct and install
such telephone system, the said
city may issue and dispose of the
Understanding certificates of the
said city, to be known as "tele-
phone certificates, which shall,
under no circumstances, be or be-
come an obligation or liability of
the said city, or payable out of
the general fund of said city, but
shall be payable solely out Of the
specified portion of the revenues
or income to be derived from the
leasing or operation of the said
telephone system. In order to Sc
cure the payment of such telephone
certificates and the interest thereon,
the city may convey, by mortgage
or deed of trust, the said telephone
system and all CT the property &C.
quired or to be thereafter acquired
through the issue Of such certif-
Gates; which mortgage or deed of
trust shall be executed in such a
manner as the city Council may
direct, and acknowledged and re-
corded in the manner provided by
law for the acknowledgement and
recording Of mortgages of real
estate, and may contain such condi-
tions and provisions not in conflict
with the provisions of chapter four
hundred and fifty-two (452) of the
general laws of Minnesota for 1907
as may be deemed necessary to full
ly secure the payment of the said
certificates. Any such mortgage
or deed of trust may carry the
grant of a privilege or right to
maintain and operate said telephone
system so covered thereby for a
period not exceeding twenty (2O)
years from and after the date such
property may come in the posses
sion of any person or corporation as
a result of foreclosure proceedings
had upon said mortgage or deed of
trust; which privilege or right may
fix the rates which the person or
corporation securing the same as
a result of such foreclosure pro.
ceedings shall be entitled to charge
in the operation of said system for
a period not exceeding twenty (20)
years. Whenever, and as often as
default shall be made in the pay
ment of such telephone certificates
so secured by mortgage or deed of
trust, as aforesaid, or in the pay
ment of the interest thereon when
due, and any such default shall have
continued for the space of twelve
Q2) months, after notice thereof
has been given to the mayor of the
said city. it shall be lawful for any
such mortgage or trustee, upon
the request of the holder or holders
of a majority in amount of the GER
tificates issued and outstanding un.
der such mortgage or deed of trust,
to declare the whole of the princi.
pal of all such certificates as NAV
be outstanding, to be at once due
and payable, and to proceed to
foreclose such mortgage or deed of
trust in any court Of competent iur-
isdiction. At a foreclosure sale,
the mortgage or the holders of
said certificates may become the
puchraser or purchasers. and the
rights and privileges sold, if he OF
they be the highest bidders. The
telephone system acquired under
such foreclosure shall be subject to
regulation by the City Council of
the said city to the same extent as
if the right to construct, maintain
and operate such property had
been acquired through a direct
grant without the intervention of
foreclosure proceedings.
! Section 4. The telephone certi.
| ficates provided for in section three
of this ordinance shall be of such
denomination as the City Council