Geauga record. [volume] (Chardon, Geauga County, Ohio) 1952-1962, 1954-07-08


Section 9. Mortgage - In |
order to secure the payment |
Of the principal of and interest |
on the Bonds as the same
shall become due and payable
and the performance of t h e
obligations of the Municipality
in this Ordinance, the Bonds
or the Mortgage, the Execu-
tive and Fiscal Officer Of the
Municipality are hereby author
lied and directed in the name
of and on behalf of the NUM-
cipality to make, execute, &C
knowledge and deliver to the
Trustee a good and sufficient
first mortgage deed Cherein calI
ed the Mortgage) mortgaging
in trust for the holders of the
Bonds, all the properties and
assets Of said Utility now
owned or hereafter acquired by
the Municipality during tn e
time any of the Bonds shall
remain outstanding and un
paid, in such form and con-
tanning such terms, covenants
and conditions not incon ste
with this Ordinance as S aaII
be approved by such original
purchasers and by the Legal
Officer of the Municipality.
Provision shall be made there
in that in case the Municipal
ity shall default for more than
so days in the payment Of any
Bonds or the interest thereon
or for more than so days in
performing any of the coyen-
ants or requirements Of
the Mortgage or of this Ordin-
ance, or of the Bonds, the
Trustee may elect to, and
upon request of the owners or
holders of 25 percent in amount
of the outstanding Bonds shall,
declare the entire amount of
outstanding Bonds due and pay
able, and proceed to forecIose
said Mortgage; but such pro-
vision shall be subject to the
condition that if, at any time
after the principal Of said Bonds
may have been so declared due
and payable, and before there
shall have been any sale Of the
properties mortgaged thereun-
der, all sums payable under
the Mortgage, except the prin-
cipal Of Bonds thereby secur-
ed which have not reached their
maturity dates, shall have been
duly paid and all existing de-
faults shall have been made
good, then and in every such
case such payment shall con-
Stitute a waiver of such de-
fault and its consequences; but
no such waiver shall extend to
or affect any subsequent de-
fault nor impair any rights con,
Sequent thereon.
The Mortgage shall contain
the usual covenants and pro,
visions as to foreclosure anC
sale and as to other remedies
= of the Trustee and bondhClders
E and shall provide for the ap
pointment of a receiver will
= powers customary in genera
equity cases to operate h
, Utility and to apply the reve
nues thereof to the payment o
the Bonds and interest thereon
in accordance with this Ordi
nance and the provisions Of The
Mortgage, in event of litigation
= involving the operation or ad
ministration of the Utility
by the Municipality or default by
the Municipality in perform
ance of the terms and condi
tions of this Ordinance or o.
the Mortgage or the Bonds.
The Mortgage shall also con
tain covenants as to prompt anC
efficient construction of t h {
Project, proper maintenance O1
) Utility properties and efficient
operation thereof, maintenance
of title to such properties and
of the priority of lien of the
Mortgage, disposition of I'm
necessary or worn out proper
ties, maintenance of adequate
insurance upon Utility proper
ties, recordation of the Mortg.
age and any supplement there
to, compliance with applicable
requirements of law, and such
other covenants as may be
necessary or appropriate for the
due protection of the rights and
security of the holders of the
Bonds.
Said Mortgage shall contain
appropriate provisions whereby
the Municipality, by ordinance
of it's council and with tn e
written consent of the holders
of not less than 66.67 percent
in aggregate principal amount
of outstanding Bonds (eXclud-
ing Bonds held or owned by
the Municipality, may modify
or amend any covenant, condi-
ton or provision of the Mort
gage or any supplement there
to so long as such action shall
not result in changing the re-
demption provisions or interest
and principal maturity dates
nor reducing the principal a
mount or interest rate on any
Bond without the consent of the
holder thereof, nor modifying