Madison County Democrat. (London, Ohio) 19??-1958, 1950-07-28


in an amount sufficient to pro-
vide necessary aceruals against
the current requirements of para
graphs Second to Fifth, inclusive,
shall be transferred and deposited
as. follows; first, an amount up
to mot less than one-half there
of shall be deposited ta) in the
Debt Service Reserve Fund to the
extent necessary to establish or |
re-establish the balance required |
by paragraph Third to be main
tanned therein, and then (b) in |
the Replacement Fund to the ex- |
tent necessary to establish or |
re-establish a balance therein of |
$4,000; and second. any remain
der of such revenues may be |
transferred to a fund designated |
Surplus Fund"
Section Z. The Debt Service |
Fund and Debt ServiceA Reserve
Fund shall be maintained in the
custody of the Mortgage trustee,
and shall be used solely for the
payment of the principal and in
terest Of the Bonds. Until required
for such purpose. moneys in the
Debt Service Reserve Fund may
be invested in direct obligations of
the United States maturing in not
more than five years from date of
investment.
Replacement Fund moneys shall
be maintained by the Village Trea-
surer in q bank deposit duly Sc
cured, and. until required for any
of the purposes hereafter mention
ed, may be invested in direct OBJ
legations of the United States ma
turing in not more than twelve
years from date of investment.
Moneys in said Replacement Fund
shall, to the extent necessary, be
| transferred to the Debt Service
Fund fn Of ~
all obligations payable therefrom
without drawing upon the Debt
| Service Reserve Fund, and other
| wise may be used to replace, re-
(, build or recOndition worn out. OBJ
solete or Inadequate equipment and
properties of the Utility, and for
betterments, improvements and ex-
tensions thereto.
Moneys in the Surplus r'und may
at the option of Council, be added
| to the Replacement Fund for the
| purposes thereof or used for any
other lawful Utility purpose, in
| cluding the retirement of outstand-
ing Bonds by call or by purchase
for cancellation after call for ten
| ders at price which, prior to
December /. 1860, shall not exceed
their fair market value and, on
and after December 1, 1860, shall
not exceed the redemption price
4
Section 8. The Village hereby
covenants with the holders of the
Bonds that it, will at all times pre-
scribe and charge such rates for
the products sold and services rem
dered by the Utility to the
the expenditures for the operation
and maintenance of said Utility,
as shall result in Utility revenues
| at least adequate, after melting the
reasonable costs of operating and
maintaining the Utility and the
maintenance OF the Operating Re-
serve Account as provided in Para
| graph First of Section 6, to pro-
vide for the payments specified by
| the provisions of paragraphs Sec
ond to Fifth of Section 8 hereof.
Section 8. In order TO secure the
payment of the principal Of and in
terest on the Bonds as the same
| Mayor, Clerk, and President and
Clerk Of the Board of Trustees of
Public Affairs, are hereby author
lied and directed i'm the name
of and on behalf Of the Village to
make execute, acknowledge and de-
liver to The Ohio National Bank
! Of Columbus, Columbus, Ohio, to be
designated as Trustee. or to it's
| successor or successors, in trust
for the purchasers and subsequent
holders of such Bonds, a good and
sufficient first mortgage deed upon
all the properties and assets OF said
Utility now owned or hereafter ac-
quired by the Village during the
time any Of said Bonds shall re-
main outstanding and unpaid, in
such form and containing such
terms, covenants and conditions
not inconsistent with this ordi-
nance as shall be approved by the
original purchasers of the I'm
provement Bonds and by Counsel
for the Village.
1 Provision shall be made therein
that in case the Village shall de-
fault for more than so days in the
payment of any Bonds or the in
terest thereon or for more than so
days in performing any of the COW
enantS or requirements of said
Mortgage or of this ordinance, the
Mortgage trustee may elect to, and
upon request OF the owners or
holders of 25 per cent in amount
of the outstanding Bonds shall, de-
clare the entire amount of out
standing Bonds due and payable,
and proceed to fOreclose said Mort
gage: but such provision shall be
subject to the condition that il at
any time after the principal of said
bonds shall have been so declared
due and payable, and before there
shall have been any sale of the
properties mortgaged hereunder,
all sums payable under said mort
gage, except the principal of bonds
thereby secured which have not
, reached their maturity dates, shall
have been duly paid and all ex-
listing defaults shall have been made
good, then and in every such case
such payment shall constitute a
waiver of such defaut and its con-
| hlIt such WaivpI
shall extend to or affect any sub
seQuent default nor impair any
rights consequent thereon.
Said Mortgage shall contain the
usual covenants and provisions as
to foreclosure and sale and as tc
trustee and bondholders, and shal
provide for the appointment of &
receiver with powers customary In
general equity cases and as pro
vided by Section 3619-1 Of the Gen
eral Code of Ohio to operate the
, Utility and to apply the revenues
, thereof to the payment Of the
/ Bonds and interest thereon, in ac
/ cordance with this ordinance ant
{ the provisions of the Mortgage. il
event of litigation involving tn,
Z operation or administration of tn,
+ Utility by the Village or defaul
by the Village in performance o
\ AbC anu SoLdtNioHS VI lAlS VI
? dinance or of the Mortgage.
: Section 10. The Mortgage shall
t provide by covenant that the Vii
lage-
t (a) will furnish to the Mortgag,
VI trustee and to the original pur
h chasers of the Bonds semi-an
, nual reports of the operation ant
) income Of the Utility and ais,
t frow time to time such other re
l ports, audits, statements and in
4 formation, including annually
e balance sheet, statement Of sur
Y plus and income account, in sucl
1 form and detail as may be re
e quested by either of them.
lbl will permit the authorize,