The journal. (Caldwell, Ohio) 1934-1961, 1957-10-10
ORDINANCE NO. 220


cipal electric system; to authorize |
the execution of mortgage of said |
system and the extensions and i'm
provements thereto, and the rev. |
enues thereof, to secure said bonds |
and to secure additional parity
bonds hereafter authorized: to de-
fine the terms Of a franchise under
which, in case of foreclosure, the
purchaser may operate said system;
to provide, in event of default, for
the appointment of a receiver to
administer said system; and to de-
clare an emergency.
WHEREAS, the Village of Caldwell
therein sometimes called the "Muni-
clpallty'D now owns and operates as a
public utility therein referred to as the
"Utility"D, an electric light plant and
system, the product and service of
which are to be supplied to persons
and corporations within and without
the corporate limits of the Municipal
ity; and
WHEREAS, based upon reports,
plans and specifications of Morris f.
Nall s. Associates, Consulting Engin-
GERS, Cleveland, Ohio therein called
the "Engineer'o, the Council of the
Municipality has determined it to be
necessary to construct certain improve
ments and extensions to the Utility
consisting of a new heavy duty diesel
fuel engine and new generator and
other plant Improvements. together with
all necessary appurtenances as set forth
in said plans (said improvements and
extensions being herein called the
"Project'3; and
WHEREAS, it is desired to finance
part of the cost of the Project, and ex-
penditures incident thereto and Incl
dent to such financing, and to the exte
tent of any balance, other improve
ments as provided IN this ordinance, by
the issuance and sale mortgage revenue
bonds, to be designated First Mort
gage Electric Light Plant Revenue
Bonds. in accordance with Article
Of Ohio. which bonds hereinafter call
ed Improvement Bonds') together
with any additional bonds subsequently
issued on a parity herewith (herein-
after called Additional Bonds, the
Improvement Bonds and Additional
Bonds being hereinafter collectively re-
ferred TO as the "Bonds") are to be
secured by the Mortgage hereinafter
provided for hereinafter referred to
as the 'Mortgage') upon the proper
ties, assets and revenues of the Utility
and by a franchise to become effect
i've in the event of foreclosure of the
Mortgage; and
WHEREAS, there is now outstanding
mortgage dated as of September l,
1949 (recorded in Noble County Rec
ordS, Real Estate Volume SIS, Page 81,
and Chattel Mortgage Volume l, Page
24), securing certain FIRST Mortgage
Electric Light Plant and System ReVe-
nue. Bonds of the Municipality dated
September /, l949. the outstanding
principal balance thereof being in the
amount of $l05,000 and bearing interest
at 3et per annum tsaid mortgage being
herein referred to as the "Outstand-
ing Mortgage" and said bonds as the
Outstanding Issue"D; and
WHEREAS. the Outstanding Issue by
its terms cannot be called for rederlp-
finr1 aarlinr than Marrh 1864 and
to permit the immediate financing of
the Project, the bonds of the Outstand-
ing Issue are to be presented and sur
rendered against payment of the
premium of 1l2fc and accrued interest
to the date Of retirement of the Out
standing Issue; and
WHEREAS, in order to accomplish
the sale of the Improvement Bonds on
an economical basis and within the
net operating revenues proSDectlvely
available for debt service and other
related bond requirements, it is essen
tial by provision of funds from the
proceeds of said Improvement Bonds
and from bond retirement funds avail
able therefor to retire said OutStand-
ing Issue by payment of said principal
thereof premium and accrued interest
to the date of retirement in order to
effect the satisfaction and discharge of
the lien of the Outstanding Mortgage
UPON Tie proper LIES anu ItNGllutS Vi
the Utility so that the Mortgage Sc
curing the Improvement Bonds shall
constitute a first lien upon said prop
critics and revenues:
NOW, THEREFORE, BE IT ORDAIN-
ED BY THE COUNCIL OF THE WILL
AGE OF CALDWELL, NOBLE COUN-
TY, OHIO, THAT:
Section I.-Electric System A Utility
Authorization of S230,000 of Improve
ment Bonds, Use of Proceeds-The
Council of the Municipality hereby
finds and determines that the Munich
pal Electric System has been, and shall
hereafter be, operated as a public
utility, including all extensions of and
improvements to said System, that,
prior to the issuance of the Improve
ment Bonds, rates and charges for the
services of said Utility. have been fixed
in an amount sufficient to pay the
costs of operating and maintaining
said Utility and to leave an amount
Of revenues adequate for the principal
and interest: debt service reserve and
replacement requirements and other
wise to comply with the covenants here
in provided for, and that it is necessary
forthwith to Issue and sell the I'm
provement Bonds in the principal
amount of S23o,o00 and having the
terms provided for herein. the pro-
ceeds to be used for the construction
> Of the Project and purposes incidental
thereto and incidental to the issuance
and sale of said Improvement Bonds
including as an incident thereto the re-
tirement Of the Outstanding Issue; and
to the extent of any balance after pay
ing or providing for the foregoing for
other extensions and improvements to
the Utility as recommended by the
Engineer and approved by the Munich
pality at the time of completion Of the
Project and, as to any further balance,
for payment to the Debt Service Re-
serve Fund
Section 2.-Terms OF Improvement
Bonds and Special Terms of the Bonds
The Improvement Bonds shall be
dated September /, 1857; shall be of
the denomination of One Thousand
Dollars ($l,000) each; shall be number
ed from l to 230; and shall bear in
terest at the rate of four and one-half
per centum (4l2Gt) per annum, payable
semi-annually on March first and Sep
tember first of each year, beginning
March l. 1858 until the principal sum
becomes due and payable and with
interest on any overdue principal and
ito the extent that payment of such
interest is enforceable under appli-
cable law on any overdue installment
of interest at rate per annum one
percentage point in excess of said
specified rate. Said Improvement
Bonds shall mature annually on Sep-
tember first in their consecutive nu-
merical order as follows:
Amounts Years
$4,000 1859 to 1860, inclusive
$4,000 1861 to 1865, inclusive,
$4,000 1866 to 1869, inclusive
$4,000 1870
$4,000 1871 to 1878, inclusive
Improvement Bonds maturing on and
after September /. 1868 shall be sub
ject to redemption in whole or in part
in inverse order of maturities. but by
lot in the case of bonds of the same
maturity, on any interest payment date
nHr IN