HomeMy WebLinkAboutA-43 Issuance/Waterworks Bond
6594
ORDINANCE NO. .4 -1..1 "":"".143 '.. 246
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An Ordinance concerning the construction of extensions,
additions, and improvements to the murlCipal waterworks
of the Town of Carmel, authorizing the issuance of revenue
bonds to provide for the cost thereof and all matters
connected therewith.
WHEREAS, the Town of Carmel, Indiana is owner of and operates
an unencumbered waterworks system furnishing the public water supply
to said Town and its inhabitants; and,
WHEREAS, the Board of Trustees has determined that said water-
works is in need of certain extensions, additions and improvements
in order to provide an adequate volume and quality of water at
proper pressure to the inhabitants of the Town; and that said ex-
tensions, additions and improvements are required in order to pro-
tect properly the health, well being and property of the Town and
i ts inhabitants; and, This Instrument Recorded, ~ 31 . 197<(
JUNE M. HEDGES. REQORDJ;R, HA LTON COUNTY. INrI":
WHEREAS, the Town has employed Clyde E. W~ll~ams & Assacxa~es,
Inc., consulting engineers of South Bend, Indiana and Indianapolis,
Indiana, to determine the extensions, additions and improve~s re-
quired and the costs thereof and to prepare plans, specifications
and estimates therefor;,; and the Board has found from the report of
said engineers that the existing unsatisfactory conditions can be
remedied by the construction of certain extensions, additions and
improvements consisting of rights-of-way, easements, modifications
and additions to the existing Brookshire Water Treatment Plant,' in-
eluding two new wells, pump house controls, raw water transmission
main, new aerator pressure filter, two softeners, high service pumps
and control valves, electrical controls, metering equipment, chemical
"-
feed equipmen~ piping and appurtenances and all other necessary
equipments, structures and appurtenances to be constructed by said
plans, specifications and estimates prepared by Clyde E. Williams
& Associates; and,
WHEREAS, the Board of Trustees of the Town of Carmel, Indiana,
,.
has heretofore advertised for and received bids'for the construction
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improvements .to said waterworks
of such extensions, additions and
and on the basis of bids and estimates as to the expenses and
costs, both construction and non-construction, of said project
will be in the amount of Six Hundred Seventy-five Thousand Dollars
($675,000.00) and the Town has on hand for application on such
costs only the amount of One Hundred Thirty-five Thousand Dollars
($135,000.00) and that the remaining balance of said project in
the amount of Five Hundred Forty Thousand Dollars ($540,000.00)
should be provided by the issuance and sale of revenue bonds pay-
able solely out of the revenues of said waterworks and not con-
stituting a general obligation of the Town.
WHEREAS, pursuant to Ordinance No. A-8 approved and adopted
by the Board of Trustees of the Town of Carmel on the 10th day
of July, 1965, and Ordinance No.A-18 as amended in Ordinance A-20
and A-21 adopted and approved by the Board of Trustees on the 12th
day of April, 1971, the Town has heretofore issued and now has out-
standing two series of bonds payable from the revenues of said water-
works and that said series issued pursuant to Ordinance A-8 are now
outstanding in the total aggregate principal amount of Two Hundred
Eighty-five Thousand Dollars ($285,000.00) maturing annually over
a period ending November 1, 2000, whim bonds constitute a first
charge on the revenues of said waterworks and that under the terms
and conditions of said bonds the Town has the right to issue additional
waterworks revenue bonds without adversely affecting the rights of
the holders of said outstanmng waterworks revenue bonds provided
such additional bonds are made junior and subordinate to said
Waterworks Revenue Bonds of 1965; and that said series of bonds issued
pursuant to Ordinance No. A-18 and as amended in Ordinances A-20
and A-21 is now outstanding in a total aggregate principal amount of
One Million Fifty-five Thousand Dollars ($1,055,000.00) maturing
annually over a period ending November 1,.1996, which bonds are
junior and subordinate to the Waterworks Revenue Bonds of 1965,
authorized by said Ordinance No. A-8 and Ordinance A-18 as amended
by Ordinance A-20 and A-21 pursunt to Section 13 authorizes the
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issuance of additional revenue bonds ranking on a parity with said
series of revenue bonds and pursuant to said Ordinance A-18, and
that Mr. James S. O'Bryan, Certified Public Accountant of Indiana-
polis, Indiana, will certify, at the expense of the Town, to the
parity requirements, detailed in Section 13 of Ordinance A-18; now
therefore,
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF CARMEL,
INDIANA,
Section 1. That the Town of Carmel being the owner of and
engaged in the operation of a waterworks system supplying the Town
and its inhabitants with a public water supply now provide for certain
needed extensions, additions and improvements of such waterworks by
the issuance of revenue bonds payable solely from the revenues and
receipts of such waterworks pursuant to and in the manmer prescribed
in the Indiana Code of 1971 and particularly title 19 Article 3
Chapter 17 thereof and all laws amendatory or supplemental thereto
(sometimes hereafter referred to as the "Act"); provided however,
that the revenue bonds authorized by this Ordinance shall be on a
parity with the Waterworks And Improvement And Refunding Revenue
Bonds dated September 1, 1971, as authorized and issued by Ordinance
A-18 as amended in Ordinance A-20 and A-21 adopted by the Board
of Trustees of the Town of Carmel, Indiana, on April 12, 1971, and
now outstanding in an aggregate principal amount of One Million
Fifty-five Thousand Dollars ($1,055,000.00) and provided further
that the revenue bonds authorized by this Ordinance shall be junior
and subordinate in all respects to the bonds designated as "Water-
works Revenue Bonds of 1965" dated October 1, 1965, and authorized
and issued by Ordinance A-8 adopted by the Board of Trustees of
the Town of Carmel, Indiana, on the 10th day of July, 1965, and
presently in an outstanding aggregate" principal amount of Two
Hundred Eighty-five Thousand Dollars ($285,000.00) and none of the
provisions of this Ordinance shallliro construed as to effect the
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~AC;-E
249
rights of the holders of said outstanding revenue bonds. The
terms "Waterworks", "Water System", "System and Waterworks System" as
were used in this Ordinance shall be construed to mean and include
the existing Waterworks System owned by the Town of Carmel, Indiana,
and all extensions, additions and improvements thereto and replace-
ments thereof now r,or subsequently constructed or acquired.
Section 2. Said extensions, additions and improvements shall
be constructed and installed in accordance with the plans, specifica-
tions and estimates prepared by Clyde Eo Williams, & Associates,
Inc., consulting engineers of South Bend, Indiana and Indianapolis,
Indiana, which plans and specifications and said extensions, additions
and improvements shall consist of rights-of-way, easements, modifica-
tions, and additions to the existing Brookshire Water Treatment
Plant, including two new wells, pump house controls, raw water trans-
mission main, new aerator pressure filter, two softeners". high
service pumps and control valves, electrical controls metering equip-
ment, chemical feed equipment, piping and appurtenances and all
other necessary equipment, structures and appurtenances.
Section 3. The Town shall proceed with the construction and
installation of said extensions, additions and improvements and
to enter into all contracts necessary for such purpose in conformity
with the provisions of this Ordinance and of said Act subject, how-
ever, to the following conditions:
a. The approval of the Public Service Commission for the
making of said extensions, additions and improvements,
and the refunding, and the issuance of the required
amount of bonds.
b. That the principal and interest of the bonds issued
on account of such extensions, additions and improve-
ments, and the refunding, shall be paid solely and
exclusively from the revenues of said waterworks
system and shall not constitute a general obligation
of the Town.
Section 4. The income and revenues of the existing waterworks,
together with the income and revenue of all extensions, additions
and improvements thereto and replacements thereof made pursuant to
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PAGE
250
this Ordinance, or subsequently, shall be set aside into a separate
and special fund to be used and applied in the maintenance and
operation thereof, in establishing a depreciation account, and
payment of the now outstanding revenue bonds and the revenue bonds
authorized by this Ordinance and the interest thereon. The pro-
portion of the gross revenues of said waterworks shall be paid
into the several accounts of said special fund, heretofore establish-
ed by Ordinance A-8, adopted on July 10, 1965, is hereby fixed
and determined as follows:
a. Operation and Maintenance Account. Thirty-six per
cent (36%) of the gross revenues of said waterworks shall be paid
into the "Operation and Maintenance Account", and shall be used to
pay the necessary cost of the reasonable and proper operation and
maintenance of the waterworks, including any taxes required to be
paid. The sum so set aside for operation and maintenance shall be
applied exclusively to that purpose until a surplus shall have been
accumulated in the Operation and Maintenance Account which shall be
equal to the cost of maintaining and operating the waterworks during
the remainder of the calendar, operating or fiscal year then current
and the cost of maintaining and operating the waterworks during the
calendar, operating or fiscal year then next ensuing. Any excess
over such surplus nay be transferred by the Board of Trustees to
either the Depreciation Account or the Bond and Interest Redemption
Account.
b. Depreciation Account. Six per cent (6%) of the
gross revenues of said waterworks shall be paid into the "Depreciation
Account!!, and shall be expended in making good depreciation in
the waterworks, or in new construction, extensions or additions to
the property of the system. Any accumulation in such DepreciatIon
Account not required for immediate use maybe invested as provided
by the laws."governing the investment of municipal funds, and if so
invested, the income from the investment shall accrue to the
Depreciation Account. Said account shall not be used for any purpose
other than as herein provided.
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PAGE 251
c. Bond and Interest Redemption Account. Fifty-eight
per cent (58%) of the gross revenues of the waterworks. shall,as
such revenues are received, be set apart and paid into the special
account .identified as the "Bond and Interest Redemption Account".
The f~ds in said account shall be used solely for the purpose of
(1) paying first the interest on the principal of the Waterworks
Revenue Bonds of 1965 issued pursuant to Ordinance No. A-8, in
accordance with ther terms thereof, and (2) paying the interest
on and principal of the Waterworks Revenue Improvement and Refunding
Bonds and of the bonds issued pursuant to the provisions of this
ordinance in accordance with the terms hereof, and any bonds here-
after issued ranking on a parity therewfuth, to the extent required
for said purpose. If and when a surplus shall be created in excess
of the interest on and principal of the bonds, plus ten per cent
(10%) which are payable during the then current calendar, operating
or fiscal year, together with the amount of interest on and principal
of the bonds which will become due and p~able during the calendar
operating or fiscal year thenrext ensuing, then the Board may trans-
fer any excess over such required surplus to either the Operation
and Maintenance Account or the Depreciation Account, or may direct
that any such excess funds over such required surplus shall be used
in the purchase or redemption of outstanding bonds at a price not
exceeding the then applicable redemption price specified in the Ordinance
authorizing the issuance of said bonds. No further payments need
be made into the Bond and Interest Rede~tion Account when the
amount contained therein equals or exceeds the amount of the principal
of the bonds then outstanding and interest thereon to the dates of
'~~~K :143 PAGE 252
Section 5. For the purpose of procuring funds with which to
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pay the cost of construction and installation of the extensions,
additions, and improvements to its waterworks, and to pay and dis-
charge the outstanding obligations, the Town of Carmel shall issue
its revenue bonds under and pursuant to the provisions of this
Ordinance and said Act, which bonds shall be payable only out of
the special Bond and Interest Redemption Account hereinabove
referred to, subject to the prior servicing of the outstanding
"Waterworks Revenue'Bonds of 1965", hereinabove referred to, in
accordance with the terms thereof: The bonds authorized by this
Ordinance shall be designated as "Waterworks Revenue Improvement
Bonds of 1974" and shall be in a principal amount not exceeding
Five Hundred Forty Thousand Dollars ($540,000.00) numbered consecutive-
ly from @ne (1) up to One Hundred Eight (108) inclusive, dated as
of the first day of the month in which said bonds are sold and shall
bear interest at a rate or rates not exceemn~sxand one half per
cent (6 1/2%) per annum (the exact rate or rates to be determined
by bidding) which interest shall be payable on November 1, 1974,
and each May 1st and November 1st thereafter and such interest
shall be evidenced by coupons attached to said bonds. Both bonds
and interest coupons shall be payable at the Union State Bank,
in the Town of Carmel, Indiana, or, at the option of the holder,
at the principal mffice of Merchants National Bank & Trust Company
of Indianapolis in the City of Indianapolis, Indiana, in lawful
money of the United States of America, and said bonds shall mature
serially on November 1st in the years and amounts as follows:
$35,000.00 November 1, 1974 #$30,000.00 November 1 , 1984
15,000.00 November 1, 1975 ,30,000.00 November 1 , 1985
15,000O~OONovember 1, 1976 30,000.00 November 1 , 1986
20,000.00 November 1 , 1977 30,000.00 November 1, 1987
15-;'000.00 November '1, 1978 35,000.00 November 1, 1988
20,000.00'November 1, 1979 35,000.00 November 1, 1989
20,000.00 November ',1, 1980 35,000.00 November 1 , 1'990
15,000.00 November ,1, 1981 45,000.00 November 1 , 1991
20,000.00 November 1, 1982 40,000.00 November 1 , 1992
25,000.00 November 1, 1983 30,000.00 November 1, 1993
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PAGE
253
The bonds of this issue maturing on November 1, 1985, and
thereafter shall be redeemable at the option of the Town, in
whole or in part on May 1, 1985, or any interest payment..date
thereafter, in their inverse numerical order, at face value,
together with the following premiums:
3% if redeemed on May 1, 1985, or thereafter on
or before November 1, 1989;
1% if redeemed on May 1, 1990, or thereafter
~rior to maturity,
plus in each case accrued interest to the date fixed for redemption.
Notice of such redemption shall be published one time at least
thirty (30) days prior to the date fixed for redemption and a
second time at least fifteen (15) days prior to the date of re-
demptionin a newspaper of generaili. circulation printed and publish-
ed in Hamilton County and circulating in the Town of Carmel, Indiana,
and in a newspaper or financial journal of general circulation
published in the City of Indianapolis, Indiana. If any of the bonds
so to be redeemed are registered, such notice shall also be mailed
to the address of the registered holder as shown on the registration
records of the Town. The notice shall specify the date and place of
redemption and the numbers of the bonds called for redemption. The
place of redemption may be the place of payment named in the bonds,
or otherwise as determined by the Town. Interest on the bonds so
called for redemption shall cease on the redemption date fixed in
said notice, if funds are available at the place of redemption to
pay the principal of and premium and interest on the bonds so
called for redem~pL$n, on the date fixed in said notice and there- .
after when presented for payment. Coincidentally with the payment
of the redemption price, the bonds so called for redemption shall
be surrendered for cancellation, together with the unmatured interest
coupons appurtenant thereto.
Section 6. Said bonds shall be signed either manually or by
facsimile in the name of the Town by the President of the Board of
,
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254
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Trustees and attested by the Clerk-Treasurer of said Town who
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shall affix the seal of the Town: to each of said bonds. The
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interest coupons attached to said bonds shall be executed by
,
placing thereon the facsimile signature of the Clerk-Treasurer
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and said official by the signing' of said bonds shall adopt as
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ad for her own proper signature ?r facsimile signature appearing
on said coupons. In
the bonds or coupons
case any officers
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shall cease,to be
whose signature appears on
such officer before the
delivery of such bonds such sign*ture shall nevertheless be valid
and sufficient for all purposes the same as if such officer had
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remained in office until delivery thereof. Said bonds shall have
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all of the qualities and instanc~ of negotiable instruments under
the law of the State
of Indiana. ' Said bonds shall be negotiable
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,
qpon presentation of any of the
by delivery unless registered.
bonds at the office of the Cl~p,k~Treasurer of the Town of Carmel,
,
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Indiana, said Clerk- Treasurer shall register said bonds as to the
,
principal thereof without charge :or expense to the holder. Such
register shall be noted on each ~ond presented after which no transfer
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thereof shall be valid unless made by the registered owner in person
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or by his attIDDney duly authorize~ and similarly noted on such
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bond but said bonds may be discharged from registry by being in
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like manner transferred to bear a~ter which they shall be transfer-
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able by delivery but may again be' registered as before. The
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registration of any bonds shall n6t effect the negotiability of
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the interest coupons attached thereto but such coupons shall continue
COUPGB to be attached thereto
.,
remain p~~able to bearer.
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ten9r of saiddbonds the interest
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in registering endorsement thereon
,
to pass by delivery and shall
Section 7. The form and
shall be substartially as follows, : to-wit:
, .
UNITED STATES 0F AMERICA
State of Indi ana I County of Hamil ton
No. $5,000.00
,
,
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TOWN OF C$MEL
WATERWORKS REVENUE IMPROVEMENT
, BOND OF 11974 !"
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The Town of Carmel, in Hamilton County, State of
Indiana, for value received,' hereby promises to pay to
bearer, or if t~is bond be ~egistered holder hereof, solely
out of the spec~al revenue ~und hereinafter referred to
the pr.:encipal amount of I '
,
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143'p~GE! 255
FIVE THOUSANd DOLLARS
on the first day'of November;, 19~ (unless this bond
be subject to and called for, prior redemption and pay-
ment provided theref0r), an~ to pay interest thereon from
the date hereof until the pr~ncipal is paid at the rate of
, per cent ( %)
per annum payable semi-annua~ly on the first days of May
and November in each year, b'eginning on November 1, 1974,
upon presentation and surrenaer of the annexed coupons as
they severally become due. ;
Both principal and interest of this bond are pay-
able in lawful money of the United States of America at
the Union State Bank, in the: Town of Carmel, Indiana, or,
at the option of the holder,' at the principal, office of
Merchants National Bank & Trust Company of Indianapolis,
in the City of Indianapolis,: Indiana.
This bond is one of an authorized issue of one hundred
eight (108) bonds of the TowP of Carmel, of like date,
denomination, tenor and effept, except as to numbering, '
dates of maturity and rates of interest, in the total amount
of Five Hundred Forty Thousand Dollars ( $540,000.00)
numbered consecutively from n to 108 in91~sive, issued
for the purpose of providingl funds to pay the cost of
construction of extensions, ~dditions and improvements
to the municipally owned waterworks of said Town, pursuant
to an ordinance passed by the Board of Trustees of said
Town in March, 1974, entitle~ " An Ordinance concerning
the construction of extensions, additions and improvements
to the municipal waterworks bf the Town of Carmel, authorizing
the issuance of additional revenue bonds to prov.ae for the
cost thereof, and matters cOnnected therewith", and in strict
compliance with the provisions of the govelling statutes,
particularly Title 19 Articl~ 3 Chapter 17 of the Indiana
Code of 1971, and all laws a~endatory thereof or supplemental
thereto.
..
The principal and inter~st of this bond and all other
bonds of said issue, and any I bonds ranking on a parity
therewith, are equally and ratably secured by and constitute
a charge upon fifty-eight per cent (58%) of the gross income
and revenues of the municipally owned waterworks of the Town
as the same now exist,;'or may I hereafter be improved or eximd-
eq, which percentage of such: income and revenues is to be
deposited in a special fund <ilesignated as the "Bond and
Interest Redemption Account"l heretofore duly created; all
subject, however, to the proRer payment in accordance with
the terms thereof of the interest on and principal of certain
now outstanding Waterworks Revenue Bonds of 1965, bearing
interest at the rates of fout and one-eighth per cent (4 1/8%)
,
,
,
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PAGE
256
,
per annum, three and three fourths (3 3/4%) per cent per
annum or three and seven-ei9hts per cent (3 7/8%) per annum
depending upon the maturity1issued under date of October 1,
1965, now outstanding in the principal amount of Two
Hundred Eighty-five Thousand Dollars ($285,000.00) and maturing
on November 1, 2000, which ~onds were authorized by Ordinance
No. A-8, adopted on July 10; 1965, and constituting a first
charge upon the revenues allocated to said Bond and Interest
Redemption Account; and that the principal interest of
this bond and all dlther bonds of said issue shall rank on a
parity with those bonds iSS1.).ed pursuant to Ordinance A-18
as amended by Ordinance A-20 and A-21 adopted on April 12,
1971, in the presemt outsta4ding amount of One Million Fifty-
five Thousand Dollars ($1,055,000.00) bearing interest at
"S: per annum ratecifsix, arid :three-eights per cent' (6 3/8%)
and six and one half percent' (6 1/2%). The Town shall not,
'be oblii;gated to pay said bonds or the interest thereon except
from said special fund, and1neither this bond nor the issue
of which it is a part shall :in any respect constitute a
corporate indebtedness of the Town within the provisions and
limitations of the constitution of the state of Indiana.
,
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The bonds of this issue maturing on November 1, 1985,
and thereafter shall be redeemable at the option of the
Town on May 1, 1985, or any :interest payment date there-
after in whole or in part, ~n inverse numerical order,
at face value, together with the following premiums:
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3% if redeemed on May ( 1985, or thereafter
on or before November 1, 1989;
,
1% if redeemed on May 1:, 1990, or thereafter
prior to maturity; I
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plus, ,in each case, accrued :interest to the date fixed for
redemption; provided notice lof said redemption shall be
given one time at least th~r~y (30) days, and a second time
at least fifteen (15) days, prior to the redemption date
by publication ina newspaper of general circulation printed
and published in Hamilton County and circulated in the Town
of Carmel, Indiana, in a newspaper or financial journal
published in the City of Ind~anapolis, Indiana, and a notice
shall be sent by mail to thel holders of,such bonds as are
then registered. Interest oh the bonds so called for
redemption shall cease on th~ redemption date fixed in said
notice, if funds are available {lththe place of redemption
to redeem the bonds where presented. The bonds so redeemed
prior to maturity shall be surrendered for cancellation
together with unmatured interest coupons appurtenant thereto.
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The Town convenants that it will, to the fullest permitted
by law, fix, maintain and co~lect an aggregate of rates and
charges for the services rendered by said waterworks which
will be sufficient to pay all costs of operation and maintenance
of said waterworks, to proville a proper and adequate de-
preciation account, and to create and maintain the sinking
fund required for the payment of all bonds which by their
terms are payable from the r~venues of said waterworks, and
that it will in all other re~pects faithfully comply with all
of the provisions of the governing statutes pursuant to which
this bond is issued. In the'event the Town shall make any de-
fault in the payment of the principal of or interest on this
bond, the holder hereof shal~ have all of the rights and remedies
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B~'OR143
.PA'GE
257
provided by the governing statutes, including the right
to compel the collection of,sufficient rates and charges
to provide for the payment of this bond and the interest
thereon. '
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This bond and all othe~ bonds of said issue shall, in
the hands of bona fide holders, have all of the qualities of
negotiable instruments unde~ the laws of the State of Indiana.
This bond may be registered ,in the name of the owner, in the
manner and with the effect provided in said ordinance, but
unless registered shall pas~ by delivery. The interest coupons
attached hereto shall at al~ times pass by delivery, It is
hereby certified and recited that all acts, conditions and
things required to be done ~recedent to and in the execution,
issuance and delivery of th~s bond have been done and per-
formed in regular and due form as provided by law.
,
IN WITNESS WHEREOF, th~ Town of Carmel, in Hamilton
County, State of Indiana, has caused this bond to be signed
in its corporate name by the duly elected, qualified and
acting Presidentofiits Boa:r;dof Trustees, its corporate
seal:.ito be hereunto affixed :and attested by its duly elected
qualified and actingClerk-~reasurer, and the interest
coupons hereto attached to ~e executed by placing thereon
the facsimile signature of said Clerk-Treasurer, all as
of the first day of , 1971.
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TOWN OF CARMEL
,
By:'
I President, Board of Trustees
. ,
Attested:
Clerk-Treasurer
(INTEREST COUPON)
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,
$
Coupon No.
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On ,1, 19 ,the Town of Carmel,
Indiana, will pay to bearer (unless-fhe bonds to which
this coupon refers issooner'redeemed) at the Union State
Bank, in the Town of Carmel,:Indiana,or, at the option
of the holder, at the principal office of Merchants National
Bank & Trust Company of Indi~napolis, in the City of
IndiaDapolis, Indiana, out of its waterworks Bond and Interest
Redemption Account, ' Dollars
($ ) in lawful money of the United States of America,
being the interest then due on its Waterworks Revenue Improve-
ment ..r~~.:i.',':'."..,.;BonQ, dated ' , 1974, No.'
By:
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TGlwrjr OF CARMEL
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,Clerk-Treasurer
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REGISTRATION E~DORSEMENT
PAGE
258
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This bond can be registered only at the office of the
Clerk-Treasurer of the Town:of Carmel, Indiana. No writing
hereon except by the Clerk-Treasurer.
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In Whose:Name
Regist~red
Clerk-Treasurer
Datecof Registry
Section 8. The Clerk-Treas~rer is hereby authorized and directed
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to have said bonds and coupons prepared, and the President of the
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Board of Trustees and Clerk-Trea~urer are hereby authorized and
directed
to execute said bonds aqd the
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form and manner herelnbefore
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coupons to be attached there-
provided. The Clerk-Treasurer
to in the
is hereby authorized to sell said bonds at public sale. Prior to
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the sale of the bonds, the ClerkiTreasurer shall cause to be pub-
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Ii shed a notice of sale once each week for two weeks in the
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Noblesville Ledger and the NoblBJille Times published in the City
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of Noblesville, Indiana, andpost:ed as required by law, there being
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no newspaper qualified for legal advertising in the Town of Carmel,
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and one time in The Indianapolis ~ommercial published in the City of
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Indianapolis, Indiana. The date ~ixed for the sale shall not be
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earlier than seven (7) days after: the last of said publications.
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The bond sale notice shall state ~he time and place of sale, the
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total amount of bonds, the maximU0 rate of interest thereon, the
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maturities thereof, the purpose for which the bonds are being issued,
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the terms and conditions on which: bids will be received and the
sale made, and shall set
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out such: other information as the Clerk-
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Treasurer, acting on the advice of the Town Attorney and bond counsel,
shall deem necessary.
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All bids for said bondsmalllbe sealed and shall be presented
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to the Clerk-Treasurer at her office. Bidders shall be required
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to name the rate or rates of interest which the bonds are to
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:~O"R 143
.pA~GE
259
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bear, not exceeding the maximum rate hereinbefore fixed. Such
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interest rate shall be in multip~es of one-eighth (1/8) or one
,
tenth (1/10) of one per cent (1%'), and not more than three (3)
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interest rates shall be named bY~ each bidder. Bi~ specifying
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more than one interest rate shall also specify the amount and
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matuuties of the bonds bearing e~ch rate but all bonds maturing
on the same date shall bear the
same single coupon rate of interest.
I .
I
the bonds to the highest qualified
The Clerk-Treasurer shall award
bidder. The highest qualified bidder shall be the one who offers
,
,
the lowest interest cost to the Town, to be determined by computing
I
the total interest on all of thelbonds to their matUItties and de-
,
ducting therefrom the premium bORd, if any. No bid for less than
. ,
the par value of said bonds, inciuding accrued interest to the date
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of delivery, shall be considered; The Clerk-Treasurer shall have
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I
the right to reject any and all bids, and in the event no satisfactory
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I
bids are received, the Clerk-Treqsurer shall be authorized to
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continue the sale from day to day for a period of thirty (30) days
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I
without readvertisement; provided, however, that if said sale be
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continued no bid shall be accept~d which is lower than the highest
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bid received at the time fixed for such sale in the bond sale
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notice.
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Prior to the delivery of the' bonds, the Clerk-Treasurer shall
,
,
obtain a legal opinion as to the Yalidity of the bonds from Ice,
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Miller, Donadio & Ryan, acting as: bond counsel for the Town, and
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I
furnish such opinion to the purch~sers of the bonds. The fee of
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such bond counsel shall be considered as part of the cost of the
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project on account of which said ~onds are issued and shall be
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paid out of the procceds of said bonds.
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,
Section 9. In the event it shall be hereafter determined
that it is not necessary to issue:all of the bonds authorized by
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this ordinance, or the Publb Service Commission shall not approve
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the issuance of said total amount~of bonds, the Clerk-Treasurer
! '
-/
shall be authorized to sell and deliver a lesser amount of bonds
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than herein authorized, in which case the bonds not sold or de-
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livered shall be of the last mat~ity or maturities.
,
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- 15
'BOOK~PAGE 260
The bonds herein
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I
,
authorized" when
,
fully paid for and delivered
to the purchaser, shall be the b~nding and special revenue obliga-
tions of the Town payable
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out of ,the income
,
Town aqcording to
and revenues of the
waterworks system of said
their tenor and effect
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and for paying the cost of construction and installation of the
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I
aforesaid extensions, additions ~nd improvements to said waterworks
and the expenses necessarily inc~rred in connection therewith,
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includingtthe expenses incurred 1n connection with the issuance
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and sale of the bonds, and for t~e payment of interest accruing
I
on the bonds during the period o~ construction, if required for
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,
that purpose. The proper office~s of the Town are hereby directed
,
to draw all proper and necessary
things which may be necessary to
,
~arrants, and to do all acts and
,
,
,carry out the provisions of this
,
,
ordinance.
Section 10. Any accrued in~erest and any premium received
,
at the time of the delivery of t~e bonds shall be deposited in the
,
Bond and Interest Redemption Acco~t hereinbefore referred to. The
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remaining proceeds for the sale of the bonds shall be deposited
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in a bank or banks which are lega~ly designated and qualified
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de~itories for the funds of the Town, in a special account to be
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designated as "Town of Carmeil, Waterworks Construction Account of
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1974". . Each of such special accounts shall be deposited, secured
I, .
,
and held or invested as provided by the laws relating to the de-
I
positing, securing and holding orl investing of public funds, in-
,
cluding Chapter 1, Article 12, Title 5 of the Indiana Code of
,
1971, and may be secured in any o~her lawful manner agreed upon
I
by the Clerk-Treasurer and the purchaser of the bonds. The funds
,
deposited in ~uch special account: or accounts shall be expended
,
only for the purpose of dischargihg the outstanding obligations
I
,
and paying the cost of extensions!, additions and improvements to
,
said waterworks as herein authori~ed, the incidental expenses in-
,
curred in connection therewith antl with the issuance of bonds, and
,
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- 16 r-
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: - ": 261
-.SOOK~PA:GE__
the bonds during the
I.
for the payment of interest accr~lng on
I
period of construction, if required for that purpose. Any balance
I
or balances remaining unexpended! in such special account or
accounts after the completion ofithe work, which are not required
I
to meet unpaid pbligations incur~ed in connection with the con-
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I
struction of the work, shall be ~epQsited in the Bond and Interest
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Redemption Account.
Section 11. The
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I
Town shall:keep proper books of records and
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apart from all of its other records and
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accounts, separate and
accounts, in which complete and 90rrect entries shall be made
. I
showlng all revenues collected f~om said waterworks and deposited
I
in the special accounts hereinbe{ore established and all disburse-
ments made therefrom and all transactions relating-to said waterworks.
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There shall be prepared and furnished to the original purchaser of
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the bonds and, upon written request, to any holder of the bonds
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I
not more than ninety (90) days a~ter the close of each annual
I
fiscal period, complete operating and income statements of the
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waterworks, in reasonable detail Icovering such annual fiscal period,
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which statements shall be certif~ed by the Clerk-Treasurer or a
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competent auditor employed for t~e purpose of making an audit of
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the records of said waterworks. Copies of all such statements
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and reports shall at all times be: kept on file in the office of
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the Clerk-Treasurer. Any holder of the bonds shall have the right
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at all reasonable times to inspec~ the waterworks and the records,
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accounts and data of the Town relating thereto.
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Section 12. The Town shall,; to the fullest extent permitted
I
by law, establish, maintain and collect reasonable and just rates
I
and charges for the services and facilities afforded by said water-
I
works which will provide revenues:at least sufficient to pay the
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reasonable and proper cost of the I maintenance and operation of the
I
waterworks, to provide a proper aqd reasonable depreciation account,
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and to pay the principal of and i~terest on all bonds which, by their
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- 17 r
I
, B~OK1A..3...-I"AG<: 262
terms, are payable from the revepues of the waterworks, as the
I
same become due, and to create alsurplus or margin of ten per
,
cent (10~) of the principal and interest due each year. So
I
long as any of the bonds herein ~uthorized are outstanding, none
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,
of the facilities and service afforded by said waterworks shall
:
be furnished'without a reasonabl~ and just charge being made
I
therefor. The reasonable value of any facility or service rendered
I
,
to the Town, or to any d~partment, agency or instrumentality there-
,
of, including the use of water f~r hydrants for fire protection
I
or for any other purpose, shall IDe charged against the Town and
,
,
shall be paid for as the charges:accrue, and the revenues so rec-
I
eived shall be deemed to be revenue derived from the operation of
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I .
the waterworks and shall be used ,and accounted for~n the same
,
manner as other revenues derivedifrom the operation of the water-
,
works the Town convenants to the Ifullest extent permitted by law,
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and subject to approval by the P~bllc Service Cowmission, to
I
maintain a minimum of six hundreq and five (605) hydrants, and
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to pay an annual rental of One Hundred Sixty-five Dollars ($165.00)
I
per hydrant, per year, which the iBoard of Trustees now finds is
I
a reasonable and proper charge therefor. Said minimum number of
,
,
hydrants shall be maintained and isaid rental will be~paid by the
I
Town to various waterworks revenue accounts in the proportions
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I
and percentages as hereinabove set forth, so long as any of the
bonds herein authorized are outst~anding.
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Section 13. The Town reserves the right to authorize and
,
,
issue addi tionaH.bonds, payable Ppt of the revenues of the water-
I
works, of equal priority with thelbonds authorized by this ordinance,
,
I
for the purpose of financing the cost of future additions, ex-
I
tensions and improvements to the faterworks subject to the following
I
conditions: I
,
(a) Th~ interest on an/p. principal of all bonds payable
,
from the revenues of the waterworks shall have been paid to date in
, ,
,
accordance with the terms thereof; and all required payments into
I
~.O~"KJALPAGE 263
the Bond and Interest Redemption Account have been made in accordance
with the provisions of Ordinance No. A-8 and the provisions of
this Ordinance.
I
- 18 -
(b) (1) The amount 0 I gross revenues of the waterworks
allocated by Section 4. (c) of t lis ordinance to and deposited in
the Bond and Interest Redemption ccount in the calendar year im-
mediately preceding the issuance of any such additional equal
priority bonds shall be not less than one hundred twenty-five per
cent (125%) of the maximum annual interest and principal requirements
of the then oustanding bonds and he additional equal priority
bonds proposed to be issued; or
(2) prior to the .ssuance'of said equal priority
bonds, the proportion of the gross revenues allocated to said Bond
and Interest Redemption Account s~all be increased sufficiently
so that said increased proportioJ applied to the previous calendar
year's gross revenues would have
revenues in said Bond
and Interest Redemption Account f r said YEBr equal to not less
than one hundred twenty-five per ent (125%) of the maximum annual
interest and principal requiremen s of the then outstanding bonds
and the additional equal priority bonds proposed to be issued; or
(3) prior to the .ssuance of said equal priority
bonds, the water rates and charge shall be increased sufficiently
I .!
and the proportion of gross revenues allocated to said Bond and
Interest Redemption Account incre sed sufficiently so that rates
and charges applied to the previo s calendar year's operations
would have produced gross revenue in an amount so that the pro-
portion allocated to said Bond an Interest Redemption Account
for said year would have equaled ot less than one hundred twenty-
five per cent (125%) of the, maxi um annual interest and principal
requirements of the then outstand ng bonds and the additional equal
priority bonds proposed to be iss ed.
*For purposes of this subsec ion, the records of the waterworks
shall be analyzed and all showing shall be prepared by an independent
- 19 -
-13()()K~~AGE 264
certified public accountant employed by the Town for that purpose.
(c) The interest on the additional parity bonds shall be
p~able semi-annually on May 1st and November 1st and the principal
shall be payable annually on November 1st in the years in which
interest and principal are payable.
(d) The issuance of the proposed additional equal
priority bonds and any necessary increase in water rates and charges
shall have been approved by the Public Service Commission of
Indiana in the manner and to the extent provided by law.
Section 14. For the purpose of further safeguarding the
interest of the holders of the bonds, it is specifically provided
as follows:
(a) All construction contracts shall be left to re-
sponsible contractors who shall be required to furnish construct-
ion bonds running to the Town of Carmel, in an amount equal to
one hundred per cent (100%) of the amount of such contracts, to
insure the completion of such contracts in accordance with their
terms,_ and such. contractaS: shall be required to carry such
employer's ! liability and public liability insurance'. as are re-
quired under the laws of the State of Indiana in the case of public
contract.
(b) The extensions, additions and improvements shall
be contracted for and constructed to the approval of Clyde E.
Williams & Associates, Inc., consulting engineers of South Bend,
Indiana"and Indianapolis, Irrl iana, now employed by the Town, or
such other consulting engineers as may hereafter be employed by
the Town. All estimates for work done and material furnished
shall first be checked by the consulting engineers before being
approved by the Town.
(c) The Town shall, at all times, maintain said water-
works in good condition and operate the same in an efficient
manner and at a reasonable cost.
v
!:fOol< 143 PA'GE~
(d) So long as any of the bonds herein authorized are
outstanding, the Town shall maintain insurance on the insurable
parts of the waterworks of a kind and in an amount such as is
usually carried by private companies engaged in similar type
of business. All insurance shall bep~laced with responsible
insurance companies qualified to do business in the State of
Indiana, and any insurance proceeds collected shall be used in
replacing the property destroyed or damaged.
(e) So long as any of the bonds herein authorized are out-
standing, the Town shall not mortgage, pledge or otherwise encumber
its waterworks or any part thereof, and shall not sell, lease or
otherwise aitp6se of any portion thereof except such property as
may become worn out, obsolete or no longer needed; nor shall
the Town execute or issue any additional bonds or other obligations
pledgi~g any portion of the revenues of said waterworks, except
as provided in Section 13 of this Ordinance, unless the same be
made subordinate and junior in all respects to the bonds herein
authorized.
(f) The provisions of this ordinance shall be construed to
create a trust in the proceeds derived from the sale of the bonds
herein authorized, for the uses and purposes herein set forth,
and so long as any of said bonds are outstanding to create a
trust in the fixed proportion of the revenues of the waterworks
herein directed to be set apart and paid into the Bond and Interest
Redemption Account for the uses and purposes of said account as
in this Ordinance set forth.
(g) The provisions of this Ordinance shall constitute a
contract by and between the Town of Carmel and the holders of
the bonds he~ein authorized, all of the terms of which shall be
enforceable in law or in equity, and after the issuance of the
bonds this ordinance shall not be repealed or amended in any respect
- 20 -
- 21 -
.: '800.443
PAGE 266
which will adversely affect the rights and interests of the holders
of said bonds, nor shall the Board of Trustees of the Town
adopt any law, ordinance or resolution in:iany way adversely
affecting the rights of such holders so long as any of the bonds
or the interest thereon remain unpaid. The holders of the bonds
shall have all of the rights, remedies and privileges, either
expressly set forth in the provisions of Chapter 17 Article 3,
Title 19 of the Indiana Code of 1971, and all laws amendatory
thereof and supplemental thereto, ori~~lied therein, including
the right to compel the collection of sufficient. rates and charges
to provide for the payment of the bonds issued hereunder and the
interest thereon.
Section 15. Ail ordinances and parts of ordinances in con-
flict her.ewith are hereby repealed; provided, however, that.'none
of the provisions of this ordinance shall be so construed as to
repeal or modify the provisions of Ordinance No. A-S, hereinbefore
referred to, so as to adversely affect the rights, interests or
priorities of the holders of the outstanding 'Waterworks Revenue
Bonds of 1965 issued pursuant to said ordinance.
Section 16. If, when the bonds secured hereby shall have
become due and payable in accordance with their terms, or shall
have been duly called for redemption, or irrevocable instructions
so calJi'!,ng the bonds for redemption shall have been given by the
Town, and the whole amount of the principal and the interest
and the premium, if any, so due and payable upon all of the bonds
and coupons then outstanding shall be paid, or sufficient moneys
or direct obligations of the United States Government, the principal
of and the interest on which when due will provide sufficient moneys,
shall be held in Trust for such purpose under the provisions
of this Ordinance, and provision shall also be made for paying
all other sums payable hereunder by the Town, then and in that case
the right, title and interest hereunder shall thereupon cease,
determine and become void.
'!m"O"K 143PJrG'" 267
Section 17. This ordinance shall be in full force and.
- 22 -
effect from and after its passage.
Passed and adopted by the Board of Trustees of the Town
of Carmel, Indiana, on the ~ h day of
, 1974.
-This Instrument Recorde~, = 3/ 19:z!/
JUNf M. HEDGES. RECORDER:' HA LTON COUNTY, INO.
-
Trustees'
"1
{RECUVE\rn FeR REC~~[I
AT 1/: t,J. 0 O'CLOCK fJ M
JUL31 1974
B OK PAGE .
~ ,_ u-?>? ..N.~
'---".ll'fON COUNTY. INDIANA
1lECORDEIl ~A