The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1948-08-19
y y Legal Notices W wb


any of said $380,000 of authorized
bonds are outstanding and unpaid,
an amount equal to at least one
twelfth of the principal Of said
bonds then outstanding to become
due and payable on the next prin-
cipal payment date.
Provided, however that when
there is sufficient money in said
Bond Fund to pay the principal
and interest to maturity Of all Of
said bonds outstanding, then no
further payments need be MADE
into said Bond Fund.
Said amounts so pledged are
hereby declared TO be a prior lien
and charge upon the gross reve-
nues Of said sanitary sewerage syS-
tenn and all additions and improve
ments thereto, superior to all other
charges of any kind or nature ex-
cept the necessary cost Of main
tenance and operation of said Eys-
tenn.
There is hereby created a Re-
serve Account in said Bond Fund,
and, in addition to the sums above
required, the city hereby agrees
that it will pay into said Reserve
Account out of the gross revenues
of said sanitary sewerage system
and an additions and improve
ments thereto, the sum of $l7,50o
out of the first earnings OF said
system. The city further agrees
that once said sum Of $17,500 has
been paid into said Reserve Ac-
count il will at all times MAIN
tain said sum therein until there
is sufficient amount in the Bond
Fund and Reserve Account TO pay
the principal and interest to ma
turity of all of the outstanding
bonds of said $380,000 Of bonds
authorized. 3d.. ...uz.-m
In the event there shall be a
deficiency in the Bond Fund to
meet maturing installments Of
either principal or interest, such
deficiency shall be made up from
the Rerserve Account by the with
drawal of cash therefrom. Any
deficiency created in the Reserve
Account by reason Of any such
withdrawal shall then be made
up from moneys from the revenues
of said sanitary sewerage system
first available after making neces-
sary provision for the required
payments into the Bond Fund.
All moneys in the Reserve Ac-
count above provided for may be
kept in cash or invested unlimited
States Government obligations
maturing not later than twelve
years from date of purchase. In
terest earned on any such invest
ments shall be deposited in and
become part of the Bond Fund.
Section 5. The corporate author
tiles of the City Of Kennewick
hereby declare, in fixing the
amounts to be paid into said Bond
Fund and Reserve Account as
aforesaid, that they have exercis-
ed due regard to the cost of OPP
Grafton and maintenance Of said
sanitary sewerage system and have
not obligated the city to set aside
into said Bond Fund and Reserve
Account greater amount or pro-
portion of the revenues of said
system than in their judgment
will be available over and above
such cost of maintenance and OPP
Grafton.
Section 6. The city covenants
with the owner and holder of each.
Of said bonds as follows:
(a) The city will establish, main
tain and collect rates and charges
for sewerage service for as long
as any Of said $380,000 of bonds
authorized are outstanding that
will make available for the pay-
,ment of the principal and interest
OF all of such outstanding bonds
as the same shall accrue an amount
equivalent to 2 times the amount
required each year for the prin-
cipal and interest payments due
on all Of said outstanding bonds.
The amount available for the
payment of the principal and in
terest of all Of such outstanding
bonds as the same shall accrue"
is hereby defined as "the gross
revenues of the sanitary sewerage
system less expenses of operation,
maintenance and taxes"
b) The city will at all times
maintain and keep said sanitary
sewerage system and all additions
and improvements thereto in good
repair, working order and condi-
ton, and will at all times operate
such properties and the business
in connection Herewith in an eff
ficient manner and at a reason
able cost.
tc) The city agrees not to sell
or otherwise dispose of the pro-
perties Of such sanitary sewerage
system unless provision is made
for payment into the Bond Fund
of sum sufficient to pay the prin
cipal and interest of all the out
standing $4,000 of bonds auth
orized in accordance with the
terms thereof.
Section z. The city officials are
hereby authorized and directed
to do everything necessary for the
construction and installation Of
those additions and Improvement
as provided in Section ! hereof,
for the sale, execution and deliv-
cry Of said bonds as hereinafter
provided, and for the proper use