The Bluffton news. [volume] (Bluffton, Ohio) 1875-current, 1952-10-09

Bonds. Until required for such purpose,
moneys in the Debt Service Reserve Fund
may be invested in bonds and notes of the
United States maturing in not more than
hive years from date of investment. If at
any time the Village shall have provided the
Trustee with moneys sufficient. together with
moneys and investments then in the Debt
Service Reserve Fund. to retire in full on the
next available redemption date any then out
standing issue of Bonds, without thereby re-
ducing the balance thereafter remaining in
said Debt Service Reserve Fund below the
amount which on such call date would be re-
quired by paragraph Third of Section 6 TO be
on hand therein with respect to Bonds not
to be so retired. the Trustee shall make avail
able out of said Debt Service Reserve Fund
the amount required, together with the other
moneys provided, to accomplish such retire
ment.
Surplus Fund moneys shall. to the extent
necessary at any time, be transferred to the
Debt Service Fund TO permit of the pay
ment of all obligations payable therefrom
without drawing upon the Debt Service Re-
serve Fund. and otherwise may be used 70
replace. rebuild or decondition worn out, OBJ
solete or Inadequate equipment and proper
ties of the Utility, and for betterments, inn
p~rovements and extensions thereto; or for
any other lawful Utility purpose, including
the retirement of outstanding Bonds by call
or by purchase for cancellation at a price
which shall not exceed their fair market val
ne nor. on and after December |. 1862, the
redemption price prevailing at time of pur-
chase.
Section 8. The Village hereby covenants
with the holders of the Bonds that it will at
all times prescribe and charge such rates for
the services rendered by the Utility to the
users thereof, and will so restrict the expen-
ditures for the operation and maintenance OF
said Utility, as shall result in Utility reve-
nues at least adequate, after meeting the
reasonable costs of operating and maintaining
the Utility, to provide for the payments
specified by The provisions of paragraphs Sec
ond and Third of Section 6 hereof, and to
further assure its ability to meet such pay
ments as they fall due and to permit the
maintenance of adequate Improvement and re-
placement reserves. it will not permit such
revenues, after provision for operating and
maintenance expenses of the Utility, to di-
minish to an annual amount less than 1900
of the payments required to be made in such
year into the Debt Service Fund.
Section g.. In order to secure the payment
of the principal of and interest on the Bonds
as the same shall become due and payable.
the Mayor. Clerk and President and Clerk of
the Board of Trustees of Public Affairs of
the Village are hereby authorized and d.
rected in the name of and on behalf of the
Village to make. execute. acknowledge and
deliver to The Ohio Citizens Trust Co., Tole-
do. Ohio to be designated as Trustee, or to
its 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 acquired
by the Village during the time any of such
Bonds shall remain outstanding and unpaid,
in such form and containing such terms,
covenants and conditions not inconsistent
with this ordinance as shall be approved by
the original purchasers of the Improvement
Bonds and by the Solicitor of the Village.
Provision shall be made therein that in
case the Village shall default for more than
go days in the payment of any Bonds or the
performing any of the covenants or require.
ments 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 he outstanding Bonds
shall. declare the entire amount of outstand.
ing Bonds due and payable, and proceed to
foreclose said Mortgage; but such provision
shall be subject to the condition that If al
shall have been so declared due and payable.
and before there shall have been any sale OF
the properties mortEaged hereunder, all
sums payable under said Mortgage. except
the principal of bondi thereby secured which
have not reached ther maturity dates. shall
have been duly paid and all existing defaults
shall have been made good, then and in ev-
cry such case such payment shall constitute a
waiver of such default and its consequences
but no such waiver snall extend to or affect
any subsequent defaui nor impair any rights
consequent thereon.
Said Mortgage shall contain the usual GOV.
sale and as to other remedies of the Mortgage
trustee and bondhosers, and shall provide
for the appointment Of a receiver with pow
ers customary in general equity cases to OPP
crate the Utility and to apply the revenues
thereof to the payment of the Bonds and in
terest thereon. in accordance with this ordi.
nance and the provisions of the Mortgage, In
event of litigation involving the operation OIL
adm inistration of the Utility by the Village
or default by the Village in performance Of
the terms and conditions of this ordinance
or of tfs Mortgage.
Section 10. The M9rtgage shall provide b!
covenant that the Village
(a) will furnish to the Mortgage trus-
tee and to the original purchasers
of the Bonds semi-annually re-
ports of the operations and in
come of the Utility and also an
annual report of the books, a-
counts and operations of the Util-
ity prepared and certified by the
Clerk, which annual report in
densed form shall upon request of
said original purchasers be pub
lished once in a financial jour-
nal of national circulation
(b) will permit the authorized repre-
sentative of said trustee. of said
original purchasers. or of any
holder or holders of twenty-five
per centum of the amount of the
Bonds at the time outstanding to
inspect the Utility and all records,
accounts and data of the Utility
at all reasonable times.
Section IL. Said Mortgage shall also con
tain the customerv covenants as to promp
and efficient construction of all Utility i'm
provements, proper maintenance of Utilit,
properties and efficient operation thereof
maintenance of title to such properties anc
of the priority of lien of the Mortgage. dis
position of unnecessary or worn out proper
ties. maintenance of adequate insurance upor
Utility properties and in accordance with tn,
recommendation of an Independent engineer
recordation of the Mortgage and any supple
ment thereto. compliance with applicable re
quirements of law. and such other covenant
as may be necessary or appropriate for tn,
due protection of the rights of the holders o
the Bonds.
Section 70. Said Mortgage shall contain
appropriate provisions whereby the VILLAGE
by ordinance of it's council and with the writ
ten consent of the holders of not less thar
73@c in aggregate princinaI amount Of out
standing Bonds Excluding Bonds held o.
owned bv the VillaCel. may modify or amend
any covenant, condition or provision of tn,
Mortgage or any supplement thereto so Ions
rs such action shall not result in changinc
the redemption provisions or interest ant
principal maturity dates or reducing tn,
nrinciral amount or interest rate on an,
Bond without the consent of the holder there
of. nor modifying the rights or obligation
of the Mortgage trustee without its consent
nor reducing the percentage herein specified
nor imposing upon anv part of the propertie.
or revenues of the Utility described In tn,
Mortgage or any supplement thereto any