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Show Legal Notice ORDINANCE NO. 600 AN ORDISASCE providing for the construction of extensions ex-tensions and improvements of the municipally owned electric and water plant and system of Springville City. Utah; authorizing and providing for the issuance of S 100,000 Electric and Water Revenue Bonds of Springville City. Utah, for the purpose of defraying the cost of the construction of such extensions and improvements and the acquisition of additional water; prescribing the form and other details of said bonds; providing for the collection and disposition of the revenue to be derived from the electric and water plant and system; making other provisions provi-sions with respect to the operation of said plant and system sys-tem and trie issuance of said bonds and providing for the payment of said bonds. WHEREAS Springville City now owns and operates its electric and water plant and system for the purpose of supplying electric service and electricity and water and water service to said City and its inhabitants and to the inhabitants of the territory contiguous thereto, the properties of which are inter-related and constitute and are operated as one combined system: and W HERE AS pursuant to the provisions of an ordinance adopted adopt-ed August 26. 19-11 the City of Springville City. Utah, authorized the issuance of $300,000 of Electric and Water 'Revenue Bonds, dated September 1 . 1941, in rhe denomination of S 1 ,000 each, numbered from 1 to 300. both inclusive, due and payable serially in numerical order September 1, 1943 to and including September 1. 1966; of said bonds originally authorized, bonds in the amount of $150,000 were issued and sold in 1941; being bonds numbered 1 to 150, both inclusive, due and payable serially in numerical order commencing September 1, 1943 to and including September 1, 1956, optional for redemption in whole or in part on March 1, 1947 or on any interest payment date thereafter, bearing interest at the rate of 2Vi, 2 and 3 per annum; and WHEREAS for the purpose of refunding $112,000. the unpaid un-paid balance of said $150,000 of Electric and Water Revenue Bonds, Scries of September 1, 1941, Springville City, Utah. The bonds are to tear interest a, such rate of four percent (4) per annum and are . V rcsoIution 0f purchaser at such price or paces as may be hxed by The City Council to be adopted pr.or to he dcMvery Xh will result in an ac.a neMnter, .te Oy a t 'nd p! represented by appropriate coupons to be attached to the bonds. n J l,d fi1 to 400. both inclusive, maturing on and ity at the opt.on of the City m 'mT .hereafter Any bonds so redemption shall be given not less than tinny y . dale fixed for redemption by registered mail to the holder ot eacn pany Salt Lake Cily Utah, and by publication of an aate notice one time in a financial newspaper or journal published , the City of New York, or Chicago, Illinois. Section 4. That said bonds shall be payable as lo principal and interest in lawful money of the United States of Anierica a the Springville Banking Company, Spnngvil e. Utah, and shall be signed by the Mayor of the City and shall be countersigned by the City Recorder, and shall have the corporate seal of said City impressed thereon. Interest coupons to be attached to said bond, shall be executed with the facsimile signatures of said Mayor and Recorder, which officials by the execution o said bonds shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. Section 5. That upon presentation at the office of the City Recorder of Springville City, the holder of any such bond may have such bond registered as to principal in his name on the books ot the Recorder to be kept for that purpose in his office, which registration regis-tration shall be noted on the reverse side of the bond by the Recorder, Re-corder, and thereafter the principal of any bond so registered shall be payable only to the registered holder, his legal representatives or assigns. Any bond so registered may be transferred to other registered regis-tered holders or transferred to bearer upon presentation to the City Recorder with a legal assignment duly acknowledged or proved. Registration of any bond as to principal shall not aflcct the negotiability negoti-ability of the coupons thereto attached and said coupons shall continue con-tinue to be transferable by delivery. Section 6. That said bonds and coupons, and the blanks to appear on the back thereof, shall be in substantially the following form: pursuant to the provisions of an ordinance adopted the 2nd day of April, 1946, issued and sold Electric and Water Revenue Refunding Re-funding Bonds, Series of March 1. 1946, in the amount of $112,000. numbered from 1 to 112. both inclusive, dated March 1, 1946, due and payable serially September 1, 1947 to and including September 1, 1956, bearing interest at the rate of lVi per annum, and WHEREAS by resolution adopted on December 8, 1947, Springville City, Utah, sold the remaining $150,000 of 'Electric and Water 'Revenue Bonds, Series of September 1, 1941. being bonds numbered 151 to 300, both inclusive, bonds numbered 1 5 1 to 208, both inclusive, maturing serially September 1, 1956 to September Sep-tember 1. 1960, both inclusive, bearing interest at the rate of 2'4 per annum; bonds numbered 209 to 237, both inclusive, maturing serially September 1, 1961 and September 1, 1962, bearing interest inter-est at the rate of 2.40 per annum, and bonds numbered 238 to 300, both inclusive, maturing September 1, 1963 to September 1, 1966. both inclusive, bearing interest at the rate of per an num, all optional for redemption in inverse numerical order on any interest payment date at par and accrued interest to the date fixed for redemption plus a premium of $10.00 for each bond redeemed; and WHEREAS said Electric and Water Revenue Bonds, Series of September 1, 1941 and said Electric and Water Revenue Refunding Re-funding Bonds, Series of March 1, 1946 so outstanding are payable from the net revenues derived by said City from the operation of its electric and water plant and system as provided in said ordi-nances ordi-nances adopted August 26, 1941 and April 2, 1946, respectively, aforesaid, and the net revenues that are being derived from the operation of said plant and system are many times the amount required to pay the principal of and the interest on said outstanding bonds and are more than sufficient to pay principal of and the interest on the additional bonds for which provision is hereinafter made; and WHEREAS it is provided in Section II of said ordinance adopted August 26, 1941, aforesaid, that Springville City may issue obligations ' for the payment of which the revenues of its electric and water plant and system are pledged only if such pledge is made subordinate to the pledge made in said ordinance for the : payment of said Electric and Water 'Revenue Bonds, Series of September 1, 1941. and it is also provided in Section 9 of said ordinance adopted August 26, 1 94 1 , aforesaid, that there shall he set aside from the future earnings of the system (after the payment pay-ment of the necessary expenses of maintaining and operating the system, as in the last above paragraph provided) such portion of said revenues as will be sufficient to pay the interest on and principal princi-pal of the bonds herein authorized as the same become due, and in addition thereto an amount equal to at least twenty per cent (20) of the amounts so required for the interest and principal, which additional twenty per cent (20 ) payments are to be continued to be made into said fund until there shall be in said fund an amount sufficient to pay all interest and principal falling due on or before the next maturity date of any of said bonds, and all interest and principal falling due for one year thereafter, and Vt?HEREAS the last completed fiscal year for said electric and water plant and system was the year ending December 31, 1948, and it has been determined from the records of said plant and system, and it is hereby formally declared and recited, that the gross revenues derived from said plant and system for said fiscal year were in the amount of $164,496.94, that the total cost of all operation and maintenance of said plant and system for said year was the sum of $85,040.19, that the net revenues so remaining remain-ing for said fiscal year were the sum of $79,906.75, that the total amount needed for the payment of interest requirements on said Electric and Water Revenue Bonds, Series of September 1, 1941. was $3,576.00. that the total amount needed for the payment of interest and principal requirements for such fiscal year on said Electric and Water 'Revenue Refunding Bonds, Series of March 1, 1946 was the sum of $12,530.00, and that accordingly the gross revenues derived from the operation of said plant and system for the fiscal year next preceding were more than sufficient to pay all costs of operation and maintenance and to leave a balance in excess of the amount required to be paid for principal and interest and reserves: and WHEREAS it is estimated that the cost of extensions and improvements to said system will be approximately $400,000, to be provided through the issuance of electric and water revenue bonds hereinafter authorized in the amount of $400,000; (Eorm of Bond) UNITED STATES OF AMERICA STATE OF UTAH COUNTY OF UTAH SPRINGVILLE CITY ELECTRIC AND WATER REVENUE BOND Series of March 1. 1949 Number $1,000.00 Springville City, in the County of Utah and State of Utah, for value received hereby promises to pay to the bearer, or if this bond be registered to the registered holder hereof, out of the special fund hereinbelow designated and not otherwise, the sum of ONE THOUSAND DOLLARS ($1,000) on the first day of March, 19 with interest thereon from the date hereof until paid at the rate of per cent ( ) per annum, payable September 1, 1949, and semi-annually thereafter on the first days of March and September of each year, upon presentation and surrender of the annexed interest in-terest coupons as the same severally fall due, both principal and interest being payable in lawful money of the United States of America at the Springville Banking Company in Springville, Utah. Bonds numbered 61 to 400, both inclusive, of the issue of which this bonds is one, are callable for redemption prior to maturity matur-ity at the option of the City in inverse numerical order on March 1, 1954 or an any interest payment date thereafter. Any bonds so called for redemption shall be redeemable at the principal amount thereof and accrued interest to the date fixed for redemption plus a premium for each bond so redeemed prior to maturity equivalent equiva-lent to one years interest on such bond computed at the interest rate borne by the bond on the date so fixed for redemption. Notice No-tice of redemption shall be given not less than thirty days prior to the date fixed for redemption by registered mail to the holder of each bond which is registered as to principal on the books of the City Recorder. If any bond so called for redemption is not at the time registered as to principal, at least thirty days notice of the intended redemption thereof shall be given by registered mail to the bank at which the bonds are payable and to Edward L. Burton and Company. Salt Lake City, Utah, and by publication of an appropriate notice one time in a financial newspaper or journal published in the City of New York, New York, or Chicago. Illinois. lhis bond is issued by Springville City pursuant to ordinance duly enacted and pursuant to authorization duly granted by a ma- jority of the qualified taxpaying electors of said City voting at an election duly called and held in said City on the day of ; 1949, for the purpose of defraying the cost ot constructing improvements and extensions to the electric elec-tric and water plant and system of said City in full conformity with the Constitution and 'Laws of the State of Utah. Both principal of and interest on this bond and the issue of which it is a part are payable solely from a special fund into which are to be ' placed the net revenues derived from the operation of said electric and water plant and system after there have been first made from ?'sl-n irrMUp,ie Pay,m,T,tS requird to ke Je '"to the elTl Tfi V 7 Wa,CT Revmue Bond inking Fund-established Fund-established by an Ordinance adopted August 26. 1941. for the ruri0 htan.dl tend. RPyW from the revenues of the electnc and water plant and system of said City. NOW, TntKtrUKt, BE 11 AND 11 IS HEREBY ORDAINED OR-DAINED BY THE CITY COUNCIL OF SPRINGVILLE CITY, UTAH COUNTY, UTAH, AS FOLLOWS: Section I. That Springville City shall construct the improvements improve-ments and extensions to its electric and water plant and system described in the preamble hereto for the purpose of more adequately ade-quately supplying to said City and the inhabitants thereof electric light. ower and water. Section 2. That for the purpose of defraying the cost of the construction of said extensions and improvements to be made to the electric and water plant and system, including all engineering. legal, fiscal and other costs incident thereto and to the authorization and issuance of said bonds, there are hereby authorized to be issued Electric and Water Revenue Bonds of said City in the total a-mount a-mount of S400.000. which bonds shall be payable solely from the net revenues derived from the operation of said electric and water system to the extent and in the manner hereinafter provided. Wherever Wher-ever the words "the system" are used in this ordinance, they shall be understood to refer to the complete electric light and power and waterworks plant and system of Springville City as they now exist and as they may be hereinafter improved and extended while any of the bonds herein authorized remain outstanding, including all property, real, personal and mixed of every nature owned by the City and used and useful in the operation of its electric or water properties. Section 3. That said bonds shall be dated March 1, 1949, shall be in the denomination of SI, 000 each, shall be numbered consecutively from 1 to 400, both inclusive, and shall mature serially in numerical order on March 1st of each year as follows: Amount Year Bond Numbers S13.000 1951 1 ,o 15 13.000 1952 16 to 30 15.000 1953 31 to 45 5.000 1954 46 to 60 '5.000 1955 61 to 75 15.000 1956 76 to 90 20.000 1957 91 to 110 20.000 1958 Hi lo 130 20.000 1959 131 50 20.000 1900 151 70 20.000 , 961 ,71 lo m 23.000 1962 , 91 ,o 215 .000 1963 216 to 240 2?'000 1964 241 to 265 2x000 , 965 266 to 290 23.000 1966 291 to 315 25-000 1967 316 to 340 30.000 1968 34, lo 370 30.000 1969 r! S 405 The City has covenanted and agreed and does- hereby covenant and agree that it will fix such rates for the sale of elecUci.y and o received will"!, U' r "If SUC" ,,,Bl the "et " so received wil at all times be sufficient promptly to Dav the prmcipa o and interest on this bond and J bonds of ,h7iuc on this bondtd tuSi MTK the i5td,h?Lt ortt-." "T'r1 n ,,ie f in. the office o the Record l! RcCrdcr f SPfi"6ville Ci.v. back hereo by it Reeo dcr X "f 'T"0" ' V "ted " ' be valid unless made Z ." transfer hereof shall back hereof, but t l is bond n I I 'TH n'cd ' being transfe'ed ,0 bearer " fl Ml" ""'"r'"0" delivery, but may be asaTn f , J 1" rsU1 bc '""liable bv tbis b7nd asT'princtpl sUl no? Uc "I"'"0" f coupons hereto attaXd bv del ' " "tinbility of the successive holder of 5 is bond duriT T n"' bearer and such Udo of each X " l" " " pn-'J,,c ,U conclusively presumed ,0 orol a'd "'"""t ''""'i' ?'",cl"'d in favor of subsequent ho ders for vX" 1 agree that tins bond while so , W T, nml coupons hereto attached n, I, , T1 'Vul Cu l' of the person having po,tt,n Tlf "V have been acquired, and lhaT L I Ti " fur1, , P'-ssio nmv h' bond or any o "he cou ' . f Ul lmw '"U without notice, thereby has acqud m" PT' U ' any defenses foTOoLgX a" equities and claims of Z wnersll P T hMn f f""" Springville City and i,s off " nl ' I . "T- "Ul'1, "rior eT a required by law. ,, 't tV"? f,ri" "' " I- i-ue of which i, fn " dor, " wi,l prescribed by ,,e Constitution" w ,S (" (Ti""' "at an amount of ,,e revenue, l l " ' -ater pU, nnd 8ys,em of " Jo derived fro,,, the .l..,lrjo lllM aside into a special fund by s L - , and will 1P Payment of the principal of and i, , Ls. "I! I""' ,U of winch i for,8 B iuul h,,l iT " ''"S "" 'I'- W yt. have not been pledged.' ftp 1"'' ' '' (Continued o, " , ""''Pt.-d In nv witk such, details as the City Council may by resolution provide. provided only that if only a part of trie outstanding bonds is refunded, re-funded, the interest rate of the refunded bonds may not be increased, in-creased, except if refunded to pay maturing bonds; the refunding bonds may not mature at a date earlier than the maturity date of any of the bonds not refunded, and the refunding bonds shall either be delivered in exchange for the bonds refunded or shall be delivered deliver-ed to the original purchaser of those bonds at par and accrued interest, and the proceeds thereof shall be used to pay the bonds refunded. Section 13. That the proceeds of the sale of the bonds herein authorized shall be placed in a fund separate and apart from all other City funds and shall be paid out solely for the purposes for which, said bonds are herein authorized, in such manner as shall be acceptable to the Mayor of the City and to the original purchasers pur-chasers of the bonds, the proceeds of which are to be so paid out. Section 14. Tkat the action of the City Council in calling an election for the purpose of submitting to the qualified taxpaying voters of Springville City the question of the issuance of the bonds herein authorized is heieby approved, ratified and confirmed. Section 15. That the provisions of this ordinance shall constitute con-stitute a contract between Springville City and the holder or holders hold-ers of the bonds herein authorized to be issued, and that after the issuance of any of such bonds no change, variation, or alteration of any kind in the provisions of this ordinance shall be made in any manner except as herein provided until suck time as all of said bonds issued kereunder and interest due tkereon kave been paid in lull. Section 16. Tkat if any section, paragraph, clause or provision pro-vision of this ordinance shall be held to be invalid or unenforceable unenforce-able for any reason, the invalidity or unenforceability of suck section, paragrapk, clause or provision skall not affect any of the remaining provisions of tkis ordinance. Section 17. Tkat all ordinances, resolutions and orders, or parts tkereof, in conflict witk the provisions of tkis ordinance are, to tke extent of suck conflict, kereby repealed. STERLING E. PRICE. Mayor ATTEST: WILLIAM BRINGHURST. City Recorder witk eack and every kolder of tke bonds issued hereunder: ' (a) Tkat wkile tke bonds autkorized kerein or any of them remain outstanding and unpaid, tke rates for all electricity and electric service and water and water service supplied by tke system to said City and to its inkabitants and to all consumers witkin or without the boundaries of said City shall be reasonable and just, taking into account and consideration the cost and value of the system and tke cost of . maintaining and operating the system, and the proper and necessary allowances for tke depreciation tkereof . and the amounts necessary for the retirement of all bonds payable Irom the revenues of tke system, and tke accruing interest on all suck bonds; and tkere skall be ckarged against all purckasers of electricity and water including said City, suck rates and amounts as skall be adequate to meet tke requirements of tkis and tke preceding preced-ing sections kereot, all of wkick revenues, including tkose received from the City, shall be subject to distribution to the payment of tke cost of operating and maintaining tke plant and system and tke payment of principal of and interest on the bonds kerein autkorized as hereinbefore provided ; (b) Tkat tke City will maintain tke system in good condition and operate the same in an efficient manner and . at reasonable cost; (c) That so long as any of tke bonds remain outstanding, out-standing, proper books of record and account will be kept by tke City, separate and apart from all otker records and accounts, showing complete and correct entries of all ran Si-actions Si-actions relating to the system, and that tke kolders of any of tke bonds, or any duly autkorized agent or agents of suck kolders. shall kave the right at all reasonable times to inspect all records, accounts and data relating thereto and to inspect tke system and all properties comprising said system. Tlie City furtker agrees tkat it will witkin sixty days following the close of eack fiscal year cause an audit of suck books and accounts to be made by an independent firm of certified public accountants, skowing tke receipts and disbursements for account of tke system, and tkat suck audit will be available for inspection by tke kolders of any of tke bonds. Eack suck audit, in addition to wkatever matters may be tkought proper by the accountant to be included in-cluded therein, shall include the following: (1) A statement in detail of the income and expenditures of tke system for suck fiscal year. (2) A balance skeet as of tke end of suck fiscal year. (3) Tke accountant s comment regarding tke manner in wkick tke City kas carried out tke requirements of tkis ordinance, and tke accountant's account-ant's recommendation for any ckange or improve- , , ment in tke operation of tke system. (4) A list of tke insurance policies in force at tke end of tke fiscal year, setting out as to eack policy tke amount of tke policy, tke risks covered, tke name of tke insurer and tke expiration expira-tion date of tke policy. (Continued from Page Four) way otker than by tke issuance of the series of bonds of which this bond is one, and the bonds which constitute the present debt outstanding against the electric and water plant and system of said City. IN TESTIMONY WHEREOF, Springville City. Utah, has caused this bond to be signed by its Mayor and countersigned by its Cily Recorder under the corporate seal of said City, and has caused the interest coupons hereto attached to be executed by the facsimile signatures of said officers, all as of this first day of March, 1949. Mayor Countersigned: City Recorder (SEAL) (Form of Coupon) Number $ March On the first day of September, 19. . . . ., unless the hereinafter mentioned bond shall kave been theretofore properly called for redemption, Springville City, Utah County, Utah, will pay to bearer Dollars ($ ) in the manner and out of the fund prescribed in the bond to which this coupon is attached, and not otherwise, in lawful money of the United States of America at the Springville Banking Company. Springville City, Utah, for interest due that day on its Electric and Water Revenue Bond. Scries of March 1, 1949. dated March 1. 1919, and numbered Mayor Countersigned: City Recorder ('Form of Auditors certificate) I, tke undersigned duly qualified and acting Auditor of Springville City, Utak, do kereby certify tkat tke witkin bond is witkin the lawful debt limit of Springville City. Utah, and is issued according to law. Witness my official signature as of this 1st day of March, 1949. Auditor (Form of 'Registration Certificate) Date of In Whose Signature of Registration Name Registered City Recorder (SEAL) STATE OF UTAH ) -COUNTY OF UTAH ) I, WILLIAM BRINGHURST, the duly elected, qualified and acting City Recorder of Springville, Utah County, State of Utah, do hereby certify that as suck official I have the custody of the records and files of the proceedings of the City Council of said City; that the above and foregoing is a full, true and correct copy of the Ordinance passed by the City Council of Springville, Utah, March 21. 1949. the title of the Ordinance being: "AN ORDINANCE ORDI-NANCE providing for the construction of extensions and improvements improve-ments to the municipally owned electric and water plant and system of Springville City, Utah; authorizing and providing for the issuance of $400,000 Electric and Water Revenue Bonds of Springville City, Utah, for the purpose of defraying the cost of the construction of such, extensions and improvements and the acquisition acquisi-tion of additional water; prescribing the form and other details of said bonds: providing for the collection and disposition of the revenue to be derived from the electric and water plant and system; making other provisions witk respect to the operation of said plant and system and tke issuance of said bonds and providing for tke payment of said bonds. IN WITNESS WHEREOF, I kave hereunto set my hand and affixed the Corporate seal of Springville City, Utah, this 21st day "ot March, A. D.. 1949.. I WILLIAM BRINGHURST ! Springville City, Utak City Recorder, (SEAL) Published in tke Springville Herald Marck 24, 1919. (5) Tke number of metered water custom- ers at tke end of tke year, tke number of un-metered un-metered water customers at tke end of tke year, and tke numJber of electric connections at tke end of the year. All expenses incurred -n tke malting of tke ailditsi required by this section skall be regarded and paid as a maintenance and operation expense. Tke City agrees t to furnisk a copy of eack of suck audit to tke kolder of any of tke bonds at his request after the close of eack fiscal fis-cal year, and tkat any suck kolder skall kave th rigkt to discuss witk tke accountant making tke audit tke contents of tke audit and to ask for suck additional information as ke may reasonably require. (d) Tkat tke kolder or kolders of twent-five per cent (25) in aggregate principal amount of bonds issued kereunder at any time outstanding skall kave tke right at all reasonable times to inspect the system, and all . records, accounts and data of the City relating thereto, and that upon request the City will furnish to any holder or kolders financial statements and other information relating re-lating to the City and the system as suck kolder or holders may from time to time reasonably require. (e) Tkat tke City in its operation of tke system will carry fire insurance, workmen s compensation insurance and public liability insurance, in suck amounts and to suck extent as is normally , carried by private corporations operating oper-ating public utilities of the same type. Tke cost of such insurance shall be considered one of the operating costs of the system. In the event of loss or damage, insurance proceeds shall be used first, lor the purpose of restoring or replacing the properly lost or damaged, and any remainder re-mainder shall be paid into the "Springville Cily Electric and Water Revenue Bond Sinking Fund ' or into Springville Spring-ville City Electric and Water Revenue Bonds, Series of Marck 1, 1949, Sinking Fund" and shall be subject to distribution in the same manner as are other moneys in said funds, taking into consideration the fact that the Electric Elec-tric and Water Revenue Bonds, Series of March 1, 1949, and tke Sinking (Fund from which said bonds are payable are in all respects subordinate to the 'Electric and Water Revenue Bonds. Scries of September 1, 1941, and to the Electric and Water Revenue Refunding Bonds, Series "of March 1, 1946, and the Sinking Fund from which said bonds are payable. (f) That the City will not sell, lease, mortgage or in any manner dispose of the system, or any part tkereof, including includ-ing any and all extensions and additions tkat may be made tkereto, until all the bonds herein authorized to be issued shall have been paid in full, both principal and interest, except that tke City may sell any portion of said property wkick shall have been replaced by other property of at least equal value, or which shall cease to be necessary for the efficient operation of the system, provided, however, that in tke event of any sale as aforesaid, the proceeds of such sale shall be paid into the sinking funds for the bonds payable from the revenues of the system in accordance with the respective priorities of such bonds. Section 7. That the bonds herein authorized may be sold either at one time or from time to time in such manner and at such prices consistent with the requirements of Section 3, above, as may be fixed by resolution or resolutions to be adopted by the City Council. ; Section 8. That notwithstanding anything in this ordinance elsewhere contained, the principal of and interest on said bonds shall be payable only out of the net rvenue 'derived and to be derived de-rived from said electric and water plant and system of Springville City, and in no event shall said bonds or the interest accruing thereon there-on be deemed or construed to be a general indebtedness of said City or payable from any funds of said City other than those derived de-rived from the operation of said plant and system. Section 9. That from and after the delivery of any bonds issued is-sued under the provisions of this ordinance, the income and revenues of the system shall continue to be set aside into a separate and special fund shall be used in maintaining and operating the system and, after the payment of the reasonable, proper and necessary -maintenance and operation expenses of the system and after the making of all payments required to be made for the benefit of the outstanding bonds under the provisions of the aforesaid ordinances of August 26, 1941 and April 2, 1946, shall be used Tor the payment pay-ment of principal of and interest on the bonds herein authorized in the manner for whick provision is made in this ordinance. There is hereby created a fund to be known as the "Springville City Electric and Water Revenue Bonds, Series of Marck 1, 1949, Sinking Fund" (hereinafter referred to merely as the sinking fund), and after the required payments have been made into the operation opera-tion and maintenance fund and after there have been paid into the "'Springville City Electric and Water Revenue Bond Sinking Fund ' the payments required to be made into said fund by the provisions pro-visions of the ordinance adopted August 26, 1941, aforesaid, and said ordinance adopted April 2, 1946, aforesaid, including all payments required for reserves, there shall next be paid from the revenues and income of the system into the sinking fund created in this paragraph such portion of said income and revenues as will be fully sufficient to pay the interest on and principal of the bonds herein authorized as tlie same become due. 1 fie re is hereby created creat-ed as a part of said sinking fund a fund to be known as the ' Reserve Re-serve Fund, into which there shall be paid in each year a sum equal to twenty per cent (20) of the amount required to-be paid into the sinking fund in such year for the payment of current principal and interest under the last preceding sentence hereof. Such additional twenty per cent (20 ) payments shall be continued until such lime as there is in the reserve fund the sum of Thirty l ive Thousand Dollars ($35,000). Thereafter, additional payments pay-ments need be made into the reserve fund only when the amount in the reserve fund shall, by reason of expenditures made therefrom, have been reduced to less than Thirty Five Thousand Dollars ($35,000); then the twenty per cent (20) payments shall be resumed until such lime as the fund shall have been restored to its full minimum amount of 1 hirly Five Tkousand Dollars (35.000). Money in the reserve fund shall be used for the payment pay-ment of principal or interest falling due at any time as to which there would otherwise be a default, and when not needed for this purpose, may be invested in United States government bonds or certificates, and the income therefrom may be used for such purposes pur-poses as the City Council may direct. (g) That in the event of default on the part of the City in paying principal of or interest on said revenue bonds promptly as each falls due, or in the keeping of any covenant herein contained, and if such default shall continue con-tinue for a period of sixty (60) days, the City will appoint ap-point a manager for the system, which manager shall have full control over the system and shall operate the system for Springville City, and shall enforce such rates and charges as will be sufficient to make the payments re- ' quired by this ordinance, and shall in all things so operate the system as to fully comply with all of the requirements and provisions of this ordinance. The right of the holder or holders of the bonds herein authorized to require the appointment of such manager shall not be exclusive, and in the event of default as herein outlined, such holder or holders shall have the right to proceed in law or equity to require the performance of the covenants kerein contained contain-ed in any action which to them shall seem appropriate. (h) That tke City will not permit any other electric elec-tric light and power plant or distribution system or water plant and system to be operated within its boundaries while any of the bonds herein authorized remain outstanding outstand-ing and unpaid. Section 11. That the bonds authorized to be issued hereunder and from time to time outstanding shall not be entitled to any priority pri-ority one over the other in the application of the revenues of the system, regardless of the time or times of their issuance, it being the intention of the Cily Council that there shall be no priority among the bonds authorized to be issued pursuant to this ordinance regardless of the fact that they may be actually issued and delivered at diflcrent times. It is hereby expressly agreed and covenanted that Springville City will not hereafter issue any bonds or obligations obliga-tions payable from the revenues of the system until all bonds herein here-in authorized have been paid in full, unless such additional bonds arc issued in such manner that they are in all respects subordinate to the bonds herein authorized. Section 12. That the provisions of Section 1 1 hereof arc subject to the exception that if at any time after the bonds herein autkorized. or any part thereof, shall have been issued the City Council shall find it desirable to refund said bonds, said bonds, or any part thereof, may be refunded (but only with the consent of the holders thereof unless the bonds have matured or are then callable for redemption and have been properly so called) , and the refunding bonds so issued shall enjoy complete equality of lien with the portion of said bonds whick is not refunded, if any there be. and the holders of the refunding bonds shall be subrogated subrogat-ed to all of the rights and privileges enjoyed by the holders of the bonds refunded thereby. Trie refunding bonds shall be issued So far as possible, such payments into said sinking fund shall be made in equal monthly installments on the first day of each month, except that when the first day of any month shall be a Sunday or a legal holiday, then such payments shall be made on the next succeeding secular day. Such sinking fund shall be used . solely and only, and is hereby pledged for the purpose of paying the interest on and principal of the bonds herein authorized to be j issued. If at ony time there be a failure to pay into said sinking fund the full amounts above stipulated, then an amount equivalent equiva-lent to such deficiency shall be paid into said sinking fund from net earnings of said plant and system as soon as available, and in addition lo the amount otherwise required to be so set opart and paid into said sinking fund. Any balance of the net earnings in excess of the payments hcrinbefore specified to be mode into said sinking fund shall be availale to the CiLv as. the City Council may from time to time direct. Whenever the amount in the ' Springville City Electric and Water Revenue Bonds, Series of March 1, 1919, Sinking I'und" is cqxinl to the entire amount of the interest and principal that would become due on all of the bonds issued hereunder then outstanding, no further payments need be made into said sinking fund unless necessary to replace money lost or diverted. All accrued interest received from the purchaser of the bonds at the time of delivery thereof shall be paid into said sinking fund. All money held in said sinking fund shall be deposited in the Springville Banking Company, Springville. Utah, (except the reserve re-serve fund may be invested in United States government bonds or certificates) and all such deposits shall be made and secured as . provided by the pertinent laws of the Slate of Utah. If at any time in the future said bank shall become unwilling or unable to hold said sinking fund, a new bank of equal standing and rating shall be selected by tke City Council, but any such selection shall be subject to rescission by an instrument or concurrent instruments in writing signed by not less than 50 in principal amount of the bonds then outslanding and filed with the City Recorder; and if such instrument or instruments are so filed, the City Council shall select another bank as depositary for the sinking fund, which selection skall in turn be subject to rescission as aforesaid. Hie money in said sinking fund shall be held by said bank as a trust fund and tke beneficial interest therein shall be in the holders from time to time of the bonds. Nothing in this ordinance shall be so construed as to affect unfavorably any rights existing in the holders of the outstanding bonds hereinabove described and all payments required to be made for the benefit of those bonds shall continue to be made in all respects as they would have been made had this ordinance not been adopted. Section 10. That Springville City hereby covenants and agrees |