Geauga record. [volume] (Chardon, Geauga County, Ohio) 1952-1962, 1954-07-15


the redemption price of such
bonds, if any, prevailing at the
time of purchase. Moneys in
the Surplus Fund may be in.
vested in direct obligations OF
the United States maturing not
more than three years fr m
date of investment. If at any
time the Municipality shall
have provided the T rust e e
with moneys sufficient, togeth-
er with moneys and investment
then in the Debt Service Fund
and Debt Service r e erve
Fund, to retire in full on the
next available redemption date
any then outstanding. issue of
Bonds, without thereby reduc-
ing the balance thereafter re-
manning in said Debt Service
Fund and Debt Service Reserve
Fund below the amount which
on such call date would be
required by this Section 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
Fund and Debt Service Reserve
Fund the amount required, to-
gether with the other moneys
provided, to accomplish such
retirement.
The Construction Fund (l
shall consist of the portion of
the proceeds of the Improve
ment Bonds provided for in the
following section and such ad-
ditional amounts as may be
paid into said fund by t h e
Municipality (2) shall be main
tanned by the Municipality in
deposit account fully secured
by direct obligations of t h e
United States, and, until re-
quired for the purposes herein
provided, may be invested by
the Fiscal officer in direct OBJ
legations of the United States
maturing in not more than one
year from date of investment
90 shall be applied to t h e
purposes for which the proceeds
of the Improvement Bonds are
required to be used under the
foregoing sections of this Or
dinance.
AS used in this Ordinance op-
Grating and maintenance ex :
penses shall not include de-
preciation or capital replace :
mentS.
Section 5. ALLEGATION OF
of Proceeds of Improve
ment Bonds The proceeds
from sale of the Improvement
Bonds shall be allocated and
are hereby appropriated to the
following funds of the Utility
hereby established; (a) the por-
tion representing accrued in
terest, to the Debt Service Fund
(b) the portion, if any, rep
resenting premium, to the Debt
Service Reserve Fund; and (cI
the entire balance of such pro.
ceeds, to the Construction Fund
Section 6. - Additional Bonds,
The Municipality shall h
the right from time to time
to issue Additional Bonds fol
the purpose Of providing addi
tional funds, if necessary, fol
the completion of the Project
and otherwise for the purpose
only of making requirements
extensions and improvements tC
the Utility, which Additional
Bonds shall be payable from
the Debt Service Fund an d
Debt Service Reserve Fund and
be secured by a lien upon the
properties and revenues of the
Utility on a parity with h e
Improvement Bonds, and t h e
Trustee shall authenticate and
deliver such Additional Bonds
provided, that, when any such
Additional Bonds are issued, the
Municipality shall have furnish
ed to the Trustee the following
certificates:
(A) Certificate of F S a
Officer and Legal Officer OF
the Municipality certifying that,
to the best of their knowledge,
the Municipality is not, on the
date of issue of such Additional
Bonds, in default in the per-
formance of any of it's coven-
ants provided in this Ordinance,
in the Mortgage or in tn e
Bonds; and
(B) Certificate of an indie
pendent engineer, satisfactory
to the Trustee, showing Cd that,
as estimated by such indepen-
dent engineer, the prospective
revenues of the Utility, based
upon rates in effect at t h e
date of issue of the Additional
Bonds and on such Independent
engineers estimate of the eX-
penses of operations and main
tenance of the Utility tt e +
completion of the improvements
extensions or requirements to
be financed by the Additional
Bonds, will, after such expens-
es, be at least equal to the
Required Coverage for issuance
of Additional Bonds, CD that,
if issued for completion of the
Project, the amount of sue h
Additional Bonds proposed to
be issued is essential for such
purpose, CD that, if issued for
other authorized purposes, the
replacementS, extensions or i'm