Ottawa County news. (Port Clinton, Ohio) 1931-1956, 1954-10-15

Additional Bon0s shall not be re-
deemable earlier than the first re-
demption date for the Improve
ment Bonds.
The Bonds snail be payable sole
ly from the revenues and proper
ties of the Utility and shall be Sc
cured only, but equally and ratably
without priority of one over an
other by reason of number or Of
date of Bond, sale, execution or
delivery, by the Mortgage consti-
tuting a lien upon said revenues
and properties, after provision for
the reasonable operation and
maintenance expenses of the Util-
ity, and by the franchise hereinaf-
ter provided for under which, in
case of foreclosure of the Mort
gage, the purchaser may operate
the Utility; and anything in the
Mortgage, in this Ordinance or in
neither the general
resources of the Municipality shall
be required to be used nor the
general credit of the Municipality
pledged for the performance of
any duty under the Mortgage, this
Ordinance or the Bonds shall be
Ordinance or the Bonds, but any
gage this Ordinance or the bonds
shall be made only from the pro-
perties and revenues of the Utility;
provided, however, that, if other
wise lawful, nothing herein shall
be deemed to prohibit the Munich
pality from using of its own voli-
tion, any of it's general resources
for the fulfullment of any of the
terms and conditions of the Mort
gage, this Ordinance or the Bonds.
Section S.-COvenants of Munici-
paiity-The Municipality, by issu-
ance of the Improvement Bonds,
shall covenant with the holders of
the Bonds and with the Trustee
(a) that it will at all times pre-
scribe and charge such rates for
the services of the Utility, and
will so restrict operation and
maintenance expenses of the Util-
ity, as shall result in Utility rev.
enues at least adequate, after
meeting such operation and main
tenance expenses, to provide for
d the payments required by this
Debt Service Fund, Debt Service
Reserve Fund, Replacement Fund
and Surplus Fund, DID proper inn
provement and replacement re-
serves, and Gid sufficient earn
ings coverage to permit the issue
of the Additional Bonds required
for the construction of necessary
vi eihN ISetblS CAltlSlOIS VI lll-
provements; (b) that the Munich
pality will furnish to the Trustee
and to the original purchasers of
the Improvement Bonds semi-an-
nually reports of the operation and
income of the Utility and also an
annual report of the accounts and
operations of the Utility prepared
proved by the Trustees, which an
nual report in condensed form
shall upon request of said original
purchasers be published once in a
financial journal of national cir
culation and will permit the auth
oriZed representative of said Trus-
tee, of the original purchasers, or
Of any holder or holders of twen-
ty-five per centum of the amount
Of the Bonds at the time outstand-
ing to inspect the Utility and all
records, accounts and data of the
Utility at all reasonable times; (c)
that the Municipality will segre-
gate the revenues, funds and prop
critics of the Utility from all other
funds and properties of the NUM-
ripality; Cd that the Municipality
will observe and perform all it's
agreements and obligations provid-
ed for by the Bonds, the Mortgage,
or this Ordinance.
Section 9.-MOrtgage-In order
to secure the payment of the prin-
cipal of and interest on the Bonds
as the same shall become due aud
payable and the performance of
the obligations of the Municipality
in this Ordinance, the Bonds or the
Mortgage, the Executive and Fis-
cal Officer of the Municipality are
hereby authorized and directed in
the name of and on behalf of the
to make, execute,
acknowledge and deliver to the
Trustee "A good and sufficient first
mortgage deed (herein called 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 dur
ing the time any of the Bonds
shall remain outstanding and un-
paid, in such form and containing
such terms, covenants and condi-
Lions not inconsistent with this
ordinance as shall be approved by
such original purchasers and by
the Legal Officer of the Munich
pality.
Provision shall be made therein
that in case the Municipality shall
default for more than 60 days in
interest thereon or for more than
30 days in performing any of the
covenants or requirements of the
Mortgage or of this Ordinance, 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 foreclose said
Mortgage; but such provision shall
be subject to the condition that if
at any time after the principal of
said Bonds may have been so de-
clared due and payable, and be-
fore there shall have been any
sale of the properties mortgaged
hereunder, all sums payable under
The Mortgage, except the principal
Of Bonds thereby secured which
have not reached their maturity
1ates. shall have been duly paid
and all existing defaults shall
lave been made good. then and in
every such case such payment
default and its consequences; but
no such waiver shall extend to or
affect any subsequent default nor
impair any rights consequent
h areon
The Mortgage shall contain the
usual covenants and provisions as
% foreclosure and sale and as to
Ililci ISiHeuleS VI the IuStcS dHu
and shall provide for
he appointment of a receiver with
powers customary in general equi-
y cases to operate the Utility and
20 apply the revenues thereof to
he payment of the Bonds and in
crest thereon, in accordance with
his ordinance and the provisions
IF the Mortgage, in event of litiga-
ion involving the operation or ad
of the Utility by the
or default by the
in performance of the
.erms and conditions of this Ord
nance or of the Mortgage or the
Bonds.
The Mortgage shall also contain
covenants as to prompt and eff
lent construction of the Project.
proper maintenance of Utility