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HomeMy WebLinkAboutS-21 Refund Revenue Bond ORDINANCE NO. An Ordinance authorizing the issuance of refund- ing revenue bond to exchange for the Town of Carmel's outstanding Sewage Works Refunding Revenue Bond of 1973, the safeguarding of the interests of the holders of said bond, and other matters connected therewith WHEREAS, available to pay funds on hand on interest on said WHEREAS, WHEREAS, the Town of Carmel has previously authorized and issued its Sewage Works Refunding Revenue Bonds of 1973, pursuant to Ordinance No. 13-28 adopted February 13, 1973; and WHEREAS, said bond, in the total principal amount of $560,000, bearing interest at the rate of four per cent (4%) per annum, is due and payable January 1, 1974; and the town sewage works utility has $200,000 on said debt, but will not have sufficient such date to pay the entire principal ands bond; and the town will be issuing additional sewage works revenue bonds for improvement purposes at a later date in 1974; and WHEREAS, it will be to the town's benefit to have a single general market bond issue for the improvement purposes and for reasonably scheduling an amortized retirement of the balance of the 1973 obligation; and WHEREAS, refunding of the unpaid balance is authorized by Chapter 206 of the Acts of 1937; now therefore, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF CARMEL, INDIANA: Sec. 1. The Town shall issue its bond in the amount of ~hree Hundred Sixty sewage works revenue _~usand Dollars ($360,000) for the purpose of refunding the balance of the Sewage Works Refund±ng Bond of 1973. Said bond shall be designated "Sewage Works Refunding Revenue Bond of 1974", issued in the denomination of $360,000, dated as of the date of delivery and shall bear interest at a rate not to exceed five and one-half per cent (5-1/2%) per annum, payable on the first day of each month after issuance until the principal shall be fully paid. Said bond shall be issued as a fully registered bond as to principal and interest in the name of the purchaser. Both principal and interest shall be payable in lawful money of the United States of America. Principal and interest shall be payable to the regis- tered owner by check or draft mailed or delivered to said owner at his address as it appears on the registration records of the Town. The bond shall mature on June 1, 1974. Said bond shall be junior and subordinate in all respects to the Town's Sewage Works Revenue Bonds dated January 1, 1960, and to the Town's Sewage Works Revenue Bonds of 1968, dated February 1, 1968. Sec. 2. The bond may, at the option of the Town, be re- deemed on any date upon ten days' written notice to the owner. The place of redemption may be determined by the Town. Inter- est on the bond so called for redemption, shall cease on the redemption date fixed in such notice, if sufficient funds available at the place of redemption to accrued interest, on the date so named. sented at the place of redemption, pay the principal, The bond shall for redemption. are plus be pre- Sec. 3. The form and tenor of said fully registered bond UNITED STATES OF State of Indiana BO0~' ~'~' PAGE AME RI CA County of Hamilton $ TOWN OF CARMEL SEWAGE WORKS REFUNDING REVENUE BOND OF 1974 The Town of Carmel, in Hamilton County, State of Indiana, for value received, hereby promises to pay to , or registered assigns, solely out of the special revenue fund hereinafter referred to, or from the proceeds of refunding bonds on the first day of June, 1974, the principal amount of and to pay interest thereon from the date of deliv- ery hereof until the principal is paid, at the rate of per cent ( %) per annum, payable on the first day of each ~onth, beginning as of the first day of the month next succeeding the delivery of this bond. Both principal and interest of this bond are payable in lawful money of the United States of America. Principal and interest shall be payable to the registered owner by check or draft mailed or delivered to said owner at his address as it ap- pears on the registration records of the Town. This bond is the only one of an authorized issue of the Town of Carmel in the aggreqate prin- cipal amount of Three Hundred Sixty Thousand Dollars ($360,000), issued to exchange for and refund the Town's Sewage Works Refunding Revenue Bonds of 1973. This bond is authorized by an ordinance adopted by the Board of Trustees of the Town of Carmel on the day of , 1973, entitled "An Or- ln~e authorizing the issuance of refunding reve- nue bond to exchange for the Town of Carmel's out- standing Sewage Works Refunding Revenue Bonds of 1973, the safeguarding of the interests of the holders of said bond, and other matters connected therewith," and in strict compliance with the pro- visions of Chapter 206 of the Acts of the Indiana General Assembly for the year 1937. Pursuant to the provisions of said Act and said ordinance, the principal and interest of this bond are payable solely from refunding bonds or from the 1974 Sewage Works Sinking Fund created by [he ordinance authorizing the issuance of the bond, to be provided from the net revenues (herein de- fined as gross revenues after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) of the sewage works of the Town of Carmel, and all improvements and extensions thereto and replacements thereof subsequently con- structed or acquired, subject, however, to the pri- or servicing of certain now outstanding bonds in the total amoun5 of Four Hundred Ninety-three Thousand Dollars ($493,000), and to the terms of Ordinances No. S-1 and No. S-11 authorizing the is- suance of the now outstanding bonds. This bond shall not constitute an indebtedness of the Town of Carmel within the meaning of the provisions and lim- itations of the Constitution of the State of Indiana, and the Town shall not be obligated to pay this bond or the interest thereon except from refunding pro- ceeds or said special fund provided from said net revenues. The Town of Carmel irrevocably pledges the en- tire net revenues of said sewage works to the prompt payment of the principal and interest of the bond and the now outstanding bonds, to the extent neces- sary for that purpose, and covenants that it will cause to be fixed, maintained and collected such rates and charges for service rendered by said works as are sufficient in each year for the payment of ~he proper and reasonable expenses of operation, repair and maintenance of said works, and for the payment of the sums required to be paid into the Sinking Funds and under the provisions of said Act. In the event the Town, or the proper officers thereof, shall fail or refuse to so fix, maintain and col- lect such rates or charges, or if there be a default in the payment of the interest on or principal of this bond, the holder of this bond shall have all of the rights and remedies provided for in said Chapter 206, Acts of 1937. The Town of Carmel further covenants that it will set aside and pay into its 1974 Sewage Works Sinking Fund a sufficient amount of the net revenues of said works to meet (a) the interest on this bond as such interest shall fall due, (b) the necessary fiscal agency charges for paying the bond and inter- est, and (c) the principal of this bond as such principal shall fall due. Such.required payments shall constitute a first charge upon all the net rev- enues of said works. This bond may be assigned upon proper execution of the assignment hereinafter set forth and presen- tation of the bond and executed assignment to the Clerk-Treasurer of the Town for notation of the same upon the registration record kept for that purpose. The principal of this bond may, at the option In%~re~-- on the principal of the )~d so call.~ for prepayment shall cease on the F£epayment date fixed in such notice, if sufficient funds are available at the place of prepayment to pay the prepayment price, plus accrued interest, on the date so named. The bond shall be presented at the place of prepayment. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the execution, issuance and delivery of this bond have been done and performed in regular and due form as provided by law. IN WITNESS WHEREOF, the Town of Carmel, in Hamilton County, State of Indiana, has caused this bond to be executed in its corporate name by the President of its Board of Trustees and its cor- porate seal to be hereunto affixed and attested by its Clerk-Treasurer, as of the first day of , 1973. TOWN OF CARMEL Attest: By President, Board of Trustees Clerk-Treasurer ~SSIGNMENT FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto the within Sewage Works Revenue Bond of 1974 ~f the Town of Carmel, Indiana, and hereby authorizes said Town to transfer this Bond on its books. Dated , 1'9 In the Presence of: Sec. 4. Sa~d bond shall be signed in the name of the attested by the Clerk-Treasurer who shall said Town to said bonds. Said bond, as to both principal and payable from and secured by an irrevocable affix the seal of interest, shall be pledge of and shall constitute a charge upon all the net revenues (herein defined as gross revenues after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) of the sewage works of the town, subject, however, to the prior servicing of certain now outstanding bonds in the total amount of Four Hundred Ninety-three Thousand Dollars ($493,000), and to the terms of Ordinance No. S-1 and No. s-ll authorizing the issuance of the now outstanding bonds. The Town shall not be obligated to pay said bonds or the interest thereon except from the net revenues of said works, or refunding proceeds, and said bonds shall not constitute an the meaning of the provisions tion of the State of Indiana. indebtedness of the Town within and limitations of the Constitu- and directed vided herein. bidder to execute said bond Said bond shall be Sec. 5. The Clerk-Treasurer is hereby authorized and directed to have said bond prepared, and the President of the Board of Trustees and Clerk-Treasurer are hereby authorized in the form and manner pro- delivered to the successful after the sale. Sec. 6. There is hereby created a special fund desig- nated "197~ Sewage Works Sinking Fund" and constituted the sink- ing fund for the payment of the interest on and principal of the revenue bond herein issued. There shall be set aside and paid into said 1974 Sewage Works Sinking Fund monthly, as avail- able, and after meeting the monthly deposits in the Sewage Works Sinking Fund created by ordinance No. S-l, adopted Decem- sewage works, as hereinbefore defined, for the payment of (a) the interest on the Sewage Works Refunding Revenue Bond of 1974 as such interest shall fall due, (b) the necessary fiscal agency charges for paying said bond and the interest thereon, and (c) the principal of said bond as such principal falls due, and said deposits shall continue until such time as said fund shall contain an amount sufficient to pay all of the Sewage Works Refunding Revenue bond of 1974 then outstanding, togeth- er with the interest thereon to the date of maturity. Moneys in said 1974 Sewage Works Sinking Fund shall not be used for any purpose whatsoever e~cept as stated above; pro- vided that with the written consent of the registered holder, of the outstanding Sewage Works Revenue Bond of 1974, the Board of Trustees may transfer funds from the 1974 Sewage Works Sinking Fund into a fund for extensions, betterments and addi- tions to the works, subject to the limitations in Ordinances No. S-1 and S-11 as to the creation and maintenance of reserves before transfers to a fund for extensionsr betterments and addi- tions. Sec. 7. The Town covenants with the holder of the bond herein authorized to c'omply with all of the terms, conditions and covenants pertaining to its Sewage Works which are set forth in Ordinances No. S-1 and No. S-ll. Sec. 8. This ordinance shall be in full force and effect from and after its passage and signing by a majority of the Board of Trustees. Approved and adopted by the Board of Trustees of the Town of Carmel, Indiana, on the ~7~ day of ~ , 1973. Board of Trustees This Instrument Attest! ~/- JUNE M. HEDGES RECORDE~AMtLTON ~ - r ~lerk'-Treas~T~er COUNTY. IND. RECEIVED FOR P,L'CORD JAN 3 1974 OK PAGE ,.