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Show PAGE FOUR PROVO (UTAH) DAILY HERALD, WEDNESDAY, APRIL 24, 1940 lit ! LEGAL IIOTIDZS j , Probate and j Guardianship Notices (joiuudt Uouuty JIeu.il or tao ! er Information. ORDIN AM CE . AN ORDINANCE CALLING FOR PAYMENT $850,000 ELEC TRIC REVENUE i BONDS Oil THE CITY OP PROVO CITY. WHEREAS, the . City of Provo City now has outstanding its Elec trie Revenue Bonds in the amount r of $850,000, dated June 1, 1939, In the denomination of $1,000 each , numbered 1 to 850, inclusive, bear i ing interest at four and one-half per cent per annum; and . - WHEREAS, said bonds are opv tional for redemption at the pleas i ure of the city on any interest pay : ment date at par and accrued in ; teres t plus a ' premium 6f . four and one-half per cent; and WHEREAS, Jt is desired to call ! said bonds for payment; ;? NOW, THEREFORE, Be It and It Is Hereby Ordained by the Board of Commissioners of the City of Provo City, Utah County, uian. as follows: . . Section 1. That : the bonds de , scribed in the! preamble hereto are hereby called if or payment on June ; I, 1940. Section 2. That notice of call shall be given by the City Record-. Record-. er. by publication of the following notice of call not less than thirty . (30) days prior to June 1, 1940 in the Bond Buyer, a financial t newspaper published in the City or new TforK. New York, and by . sending by registered mall not less than thirty (30) : days prior to June l, 1940, the following no-' no-' tlce of call to John Nuveen and company, 135 South La Salle Street, Chicago, Illinois, to The . First National Bank of Chicago Chicago, Illinois, and to the holder. of. each 'of said bonds which is , registered as to principal: NOTICE OF CALL. Notice Is hereby given that the ' City of Provo City, Utah, has call- ed for payment on June 1, 1940. , $850,000 Electric Revenue Bonds of said city, dated June 1, 1939, in , the denomination of : $1,000. each, numbered 1 to 850, inclusive, bear- , Ing interest at the rate of four . and one-half per cent per annum. Payment of said; bonds in full , at the price of par and accrued L interest to June 1, 1940, and a 1 premium of $45 for each bone - will "be made at the First National Bank of Chicago, in Chicago, Illinois, Il-linois, upbn presentation of said bonds and proper coupons on or . after June 1, 1940. -Interest on said bonds will cease on June 1, 1940. Given by order of the Board of Commissioners of the City of Provo Pro-vo City, this 23 day of April, 1940. (SEAL) . ..MARK. ANDERSON., Mayor. Attest: I. G. BENCH, City Recorder. Section 3. That immediately after af-ter its adoption this ordinance shall be slgnedby the Mayor and City Recorder, shall be recorded In a book kept for that purpose and shall be published in The Daily Herald, a newspaper pub. lished and having a general circulation cir-culation in the City of Provo City and shall take immediate effect, the preservation of the peace health and safety of-the City of of Provo City so requiring. Passed this 23 day of April, 1940. i MARK ANDERSON, Mayor. Attest: i I. G. BENCH, City Recorder. STATE OF UTAH, COUNTY OF UTAH ss. I, I. G. BENCH, the duly chosen qualified and acting City Recorder Record-er of Provo City, Utah . County, State of Utah, do hereby certify that as such official I have the custody of the records and files of the proceedings of the Board or Commissioners of said City; that the above and foregoing is a full, true and correct copy of an Ordinance passed ', by - the ; Board : of Commissioners of said City on the 23rd day of April, A. D., 1940, entitled: "AN ORDINANCE CALLING FOR PAYMENT $850,-000 $850,-000 ELECTRIC REVENUE BONDS OF THE CITY OF PROVO PRO-VO enrr." IN WITNESS WHEREOF, I have hereunto ' set my hand and affixed the corporate seal of said City this 23rd day of April. A. D., 1940. I. G. BENCH, City Recorder. Provo City, Utah (SEAL) S . Published in4 The Dally Herald, April 24, 1940. v ORDINANCE NO..... AN ORDINANCE providing for the holding of a special election in the City of Provo City, Utah, for the purpose of submitting to the qualified . taxpayinj? electors thereof the question -of the Issuance Issu-ance of $1,200,000 Electric Reve- " nue Bonds of said city. . WHEREAS, there has this day been presented to the Board ol Commissioners an Initiative petition peti-tion requesting that the Board of Commissioners adopt ' the ordin- ' ance therein set out, which ordinance ordin-ance is entitled "An Ordinance providing ' for the acquisition oi the additional facilities originally contemplated for the completion of. the municipally owned electric generating plant and electrical distribution dis-tribution system of the City of Provo City, . Utah;" authorizing and providing for the issuance of $1,-200,000 $1,-200,000 Electric Revenue Bonds of the City of Provo City for the purpose of defraying the cost oi the completion of said plant ; and revenue, bonds of said city; pre scribing the form and other . de tails of said bonds; providing for the collection and disposition, ol the revenues to be derived from said electric generating plant and electrical distribution system making other provisions , with re spect to- the operation of said plant and system and the Issuance of said bonds; and providing, for the payment of said bonds," and , WHEREAS, pursuant to said petition the Board of Commission ers " has adopted said ordinance subject to approval of the . quail fled electors of the City of Provo City and has made - provision for the holding of a special election on the 25th day of May, 1940, at which the ordinance is to be referred to the electors of the City of Provo City; and WHEREAS, although the bonds authorized to be - issued by sale ordinance are to be payable solely from the revenues - derived from the operation of the electric light plant and eystem of Provo City and are not In . any . sense to be general; obligations of the city or to be payable : under any . circum stances from any revenues derived by said city from the levy of taxes, it is nevertheless considered . de sirable to submit the question of the issuance of said bonds to the vote of the qualified J tax paying electors of said city for the pur pose of ascertaining the sentiment of said electors; NOW, THEREFORE, Be , It and It Is Hereby Ordained by the Board of ' Commissioners of the City of Provo City, Utah County, Utah, as follows: Section 1. That on the 25th day of May, 1940, that being the day on which a special election is to be held in said city for the pur pose of submitting to the qualified electors thereof the ordinance de scribed In the preamble hereto there shall be held a special elec tion between the hours of seven o'clock A. M. and seven o'clock P. M.. at which : there shall be submitted to such qualified elec tors of said city as shall have paid property; tax in the year pre ceding such election, the following proposition Shall the Board of Commission ers of the City of Provo City Utah,, be authorized . to issue the bonds of said city in the amount of $1,200,000 for the purpose of lying, to the amount of $350,000, the cost of completing the electric light and power plant and system of said city and for .the purpose of refunding the outstanding Electric Elec-tric 'Revenue Bonds of said city in the amount 6f $850,000, said bonds to bear interest at the maximum max-imum rate of four per cent 4) per annum, to fall due not more than twenty (20) years from the date thereof, and to be paid solely as to both principal anc interest from the revenues deriv ed from the operation of said electric light and power plant and system and under no circum stances to be a general obllga- tion of the city or payable , from revenues derived from the. levy of taxes, all as provided in the ini tiative ordinance adopted by said Board of Commissioners on April 23rd. 1940. entitled "An Ordin ance providing for the acquisition of the additional facilities origin ally contemplated for Jhe com' pletlon of the municipally . owned electric generating plant and elec trical , distribution system of the City of Provo City, Utah, authorize ing and providing for the- issuance of ; $1,200,000 . Electric Revenue Bonds of the City of Provo City for the purpose of defraying the cost of the completion of said plant and system and for the purpose of re funding the outstanding electric revenue bonds of said city; pre' scribing the form and other details of said bonds; providing for the collection and disposition of the revenues to be derived from said electric generating plant and elec trical distribution system; making mak-ing other, provisions with respect to the operation of said plant and system and the issuance of - said bonds; and providing for the pay ment of said bonds"?. Section 2. That the voting places for said election and the officials to-serve at each voting place shall be the same as those heretofore provided for the election to be held on the same day on the question ques-tion of the adoption of said Initiative Initia-tive ordinance. Section 3. That registration for said election shall be conducted and notice thereof given in the manner provided by- the general laws and ; the ordinance heretofore hereto-fore adopted calling the election at which there Is to be submitted to the .qualified electors said initiative ini-tiative ordinance. . i . Section 4. That notice of - said election shall be given by adding to the election notice for which provision is made in Section 5 ol the ordinance heretofore adopter at this meeting entitled "Ar Ordinance providing for the hold ing of a special .election in the City of Provo City, Utah, for the purpose of submitting to the qualified qual-ified electors thereof the question of adopting an initiative ordinance pertaining to the acquisition ol the additional facilities originally contemplated for the completior of the s electric light and powei plant and system of the City of Provo- City and the issuance oi $1,200,000 Electric Revenue Bonds of said city for the' purpose 'Ol paying the cost of such completion comple-tion and for the purpose of refunding re-funding the . bonds originally Issued Is-sued for the payment of the cost of constructing and acquiring said plant and eystem." The following additional paragraph just prior to the final paragraph of said notice: no-tice: ' "All qualified electors of the City of Provo City who have paid a ; property tax in ? the year pre ceding the date of - said . election notice that a special election will be held In said city on the aforesaid afore-said date at the aforesaid polling places and between the aforesaid hours, at - which election there shall be .submitted to the quail fied electors of said city who have paid a property tax in the year preceding said election, the f ol lowing proposition; "Shall the Board of Com mis sioners of the City of Provo City, Utah, be authorized to Issue the bonds of said city in the amount of, $1,200,000 for the purpose ot paying, to the amount of $350,000, the cost of completing the elec tric : light and power plant and system of said city and for the purpose . of refunding . the outr standing , Electric Revenue Bonds of said city in the amount of $850, 000, said bonds to bear interest at the maxumum rate of four per cent (4 ) per annum, to fall due not more than twenty (20) years from(the date thereof, and to be paia soieiy as to Dotn pnncipa.' and interest from the revenues derived from the operation of said electric light and power plant and system, and under no circum stances to be a general obligation of the -city or payable from reve nues derived from the levy oi taxes, all as provided in the ini tiative ordinance adopted by said Board of Commissioners on April 23rd, 1940, entitled "An Ordin ance providing ' for the , acquis! tion of the additional . facilities originally , contemplated for the completion of the municipally own ed electric generating plant anc electrical distribution system ol the City of Provo City, Utah; authorizing and providing for the issuance of $1,200,000 Electric Revenue Bonds of the City of Pro vo City for the purpose of de fraying the cost, of the completion of said plant and system and for the purpose of refunding the out standing: electric revenue bonds of said city; prescribing the form and other details of said bonds; providing for the j collection anc disposition of the revenues to be derived from said electric gener ating plant and electrical dis tribution system; making other provisions with respect to the operation of said plant and sys tem and the issuance or said bonds; and providing for the payment of said bonds" ? Section 5. That the ballots to D(i used at said election shall have printed ; thereon the proposition hereinabove stated followed by the words "For the Issue of Bonds: and a square preceded by the word "Yes-and a square preceded, by the word "No,", together with instructions that if the voter de sires to vote in favor, of the bond issue he shall place a cross in the space after the'word "Yes" and if he desires to vote against tine bond issue he shall place a cross in the space after the word "No." Said ballots shall comply ? in ai. respects with the requirements of vntem and for " the purpose refunding the outstanding electric are hereby required also to take 5 of Chapter 6 of Title 25 of the Utah Revised Statutes Said ballots shall be kept separate separ-ate and distinct from the ballots cast on the question of the adop tion of the initiative ordinance which . is to be submitted to the electors on said day and separate ballot boxes shall be used for receiving re-ceiving said ballots. . i Section 6, That Immediately af ter its- adoption this ordinance shall be signed by the Mayor and City Recorder, shall be recorded in a book kept for that purpose, shall be published in the Daily Herald, a newspaper published and having a general circulation in the City of Provo City and shall take immediate effect, the pres ervation of the peace, health and safety of the City of Provo City so requiring. - r Passed : this 23 day. of ,,. April 1940. MARK ANDERON, - MAYOR. (SEAL) Attest: I. G. BENCH, ' City Recorder. STATE OF UTAH, COUNTY OF UTAH ss. I. I. G. Bench, the duly chosen qualified and acting City Record er of Proyo City, Utah ; County State of Utah, do hereby -certify that as such official I have the custody of the records and - files of the proceedings of- the Board of Commissioners of said -City; that the above and foregoing is a full, true and correct copy of an Ordinance passed by the Board of Commissioners of said City on the 23rd day of April, A. D., 1940, entitled: "An Ordinance providing for the holding of a special elec tion in the City 'of Provo City Utah, for the purpose of submit ting to the qualified taxpaying electors thereof the question oi the issuance of $1,200,000 Electric Revenue Bonds of said city.' . IN WITNESS WHEREOF, 1 have hereunto set my hand ; and affixed the corporate seal of said City this ' 23rd day of April A. D. 1940. - , I. G; BENCH, 1 City Recorder. Provo City,' Utah (SEAL) Published in The Daily Herald, April 24, 1940. ORDINANCE NO..... . AN ORDINANCE providing for the acquisition "of the additional addi-tional facilities originally contemplated contem-plated for the completion of the municipally owned electric; generating gen-erating plant and electrical distribution dis-tribution ; system - of the City ! of Provo City, Utah; authorizing and providing for the issuance of $1,200,000 Electric Revenue Bonds of the City of Provo City for the purpose of defraying the cost-of the completion of said plant and system and for the purpose of re funding, the outstanding electric tails of said bonds; providing for the collection and disposition ol the revenues to be derived from said electric generating plant and electrical distribution system making: ' other provisions with re. spect to the operation ; rof ' said plant and system ana me issu. ance of said bonds; and providing for the payment of said bonds. WHEREAS, the City of Prove City has heretofore issued and has now outstanding its Electric, Kev enue . Bonds in . the amount of $850,000, dated June 1, 1939, in the denomination of $1000 -each numbered .1. to 85Q, inclusive, bear. ing: interest' at four and one-hall per cent,; (4 ) Pe annum, due serially -on . June 1 of each of the years 1942 to 1954, inclusive, inclu-sive, but optional for redemption in inverse numerical order on any interest payment date prior to ma turity; and.. , . . . - . , WHEREAS, with the proceeds of the sale of said bonds the City of Provo City has constructed and . I A. . I 11 A 1 4 acquired an eiectnc ugni ,ni power plant and system for the purpose of supplying electric light and power to said city ana its inhabitants; and WHEREAS, when the plans for said plant and system were orig inally drawn provision - was . made for the addition of increased facil ities at such time as the demand for additional electricity should justify, .and the demand for, elec tricity has grown at a rate much in excess of . normal expectations and by reason of recent reductions in rates made by the city and fur ther rate . reductions now under contemplation, and by-reason -oi substantial extensions in the city boundaries made since the adop tion of the ordinance authorizing the outstanding- bonds, the system will be called upon to supply great ly increased amounts, of electric energy and it is considered advis able and necessary to arrange for the V completion of the additional facilities which were originally contemplated so that said plant and system will be able to handle the demand which now appears will exist; and WHEREAS, in order to procure the money needed for the com pletion of the system it will be necessary to issue additional revenue rev-enue bonds in an amount not to exceed three hundred fifty thou sand dollars ( $350,000) payable from the revenues of the system, and in order to issue said bonds without impairing the priority oi lien which now exists in favor of the -h outstanding bonds -: In the amount of $850,000, it is necessary to refund said outstanding bonds; and : ? WHEREAS, the refunding bonds to be so issued will mature over a period of years not exceeding the . period ? of 'years "over which the present bonds mature, . anc will be issued at a lower rate of Interest than that borne by the presently outstanding bonds, thps called for payment plus a premium equivalent to one year's Interest on each bond so called for re demption. Notice of call shall be given by publication of an appropriate appro-priate notice at least once not less than thirty days prior to the date fixed for redemption in financial newspaper published ir the City of Chicago, Illinois, and by notices to be sent by registered mail not less than thirty days prior to the date fixed for re demption to the place of payment and to the holder of each bone called for redemption which u. registered as to principal. Section 4. That said bonds shall be payable both principal and in terest in lawful money of the United States of America at the American National Bank and Trust Company of Chicago,, in the City of Chicago, Illinois, and shall be signed by the Mayor or me City of Provo City, and shall be countersigned by the City Record er, and shall have the corporate seal of said city Impressed there on, and the interest coupons at tached to said bonds shall be ex ecuted with the facsimile signa tures of said Mayor and Recorder, which officials by the executioi of said bonds, shall adopt as and for their own proper signatures their respective facsimile slgna tures appearing on said coupons. Section 5. That upon presenta tion at the office of the City Treasurer of the City of Prove City , of any of said bonds, such bonds may be registered as ic principal in the name of the own er , thereof on the ; doors of the treasurer to be kept for that pur pose In his office, which registra tion shall be noted on the reverse side of the bonds by the treasurer. and thereafter the principal ol bonds so registered shall be pay able only to the registered hold' ers, their legal representatives or assigns. Bonds so registered may be transferred to other registered holders or transferred to bearei upon presentation to the City Treasurer with a legal assignment duly " acknowledged or proved Registration of any-of said bonds as to principal shall not ariect the negotiability of the coupons thereto attached and said coupons shall continue to be transferable by delivery. Section 6. That said bonds and coupons and the blanks to appear on the back thereof shall be ir substantially the following form. (Form of Bond) UNITED STATES OF AMERICA STATE OF UTAH COUNTY OF UTAH CITY OF PROVO CITY 'ELECTRIC REVENUE BOND, ' SERIES 1940 " Number...... $1,000.00 THE CITY, OF PROVO CITY, in the County of Utah and State of Utah, for value received, here-j by promises to pay to the bearer! or if this bond be registered, to the registered holder hereof; out holder on the books of the City Treasurer of Provo City, in the office of the treasurer, such. registration regis-tration to be noted on the back hereof by the treasurer, after which no transfer hereof shall be valid unless made 'on said books and similarly noted on the back hereof, but this bond may be dis charged, from registration by be ing transferred to bearer, aftei which it shall be transferable by delivery, but may be again regis tered as before. The registratior of this bond -as to principal shall not restrain the negotiability ol the coupons hereto attached b delivery merely. Each and every successive holder of this bone during such time as it is payable to bearer and such bolder of each of the coupons hereto attach ec are conclusively presumed to fore go and renounce his and theii equities in favor of subsequent holders for value without notice and to agree. that this bond. while so payable to . bearer, and each ot the coupons hereto attached may be negotiated by delivery by any person , having possession thereof howsoever- such pessesslon may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value and with out notice, , thereby has acquirec absolute title thereto, "free iron? any defenses enforceable against any prior holder and free from all equities and claims ' of ownership of any such prior holder. The City ef , Provo City, and its officials and: the American National Bank and Trust company of Chicago shall not be affected by any no- uce to tne contrary. It is hereby certified.- recited and declared that all acts, condi tions and things required to exist. happen and be performed preced ent to and in the issuance of this bond have existed, have happened and . have been performed in-due time, form and manner as re quired by law,, that the amount of this bond, together with the issue of which it forms a part does not exceed any limitation prescribed by the constitution or statutes of the State of Utah, that an amount of the revenues to be derived from the electric light and power plant and system of said, city has been pledged and will be set aside into a special fund by said . city euf fldent for the prompt payment of the prin cipal of and interest on this bond and the issue of which it forms a part, and that the revenues of said plant and system have no. been pledged, hypothecated or an ticipated in any way other than by the issuance of .the series of bonds of which this bond is one. IN TESTIMONY WHEREOK, the City of Provo City, Utah, has caused this bond to be signed by Its Mayor and countersigned by its City Recorder under the corporate cor-porate seal of said city, and has caused the Interest coupons here- Oiapter0ftleand"SemoTrpTesultIng fcra--BUbstantial saving of the spicial-fund -herein below to attached-to berxeeuted by the Provo City, and In no event ahl? said bonds or the Interest accru ing thereon be deemed or con s trued to be a general indebted ness of said city or payable from any funds of said city other than those derived from the operation of said plant and system. Section 9. That from and after the delivery of any bonds Lssuec under the provisions of this ordin ance the income and revenues oi the electric light and power plant and system of said city, as said plant and system now exist, to gether with all- extensions -anc" improvements which may hereafter here-after be made thereto, shall be set aside into a separate .and special spe-cial fund and. except as herein after otherwise provided, shall be used in maintaining and operating said plant and system, and after the payment of the reasonable. proper and necessary maintenance and operation expenses of salt plant and system shall, to the ex tent hereinafter provided, be used to pay the principal of and inter est on the bonds herein authorized. There shall be and there is hereby created, and there shall be maintained a special fund tc be known as the "City of Provo City Electric Revenue Bond Sink ing Fund" into which there shall be set aside from the earnings of said electric light and power plant and eystem '(after the payment of the necessary expenses of maintaining main-taining and operating said system, as in the last above paragrapi provided) , such portion of said revenues as will be sufficient tc pay the interest on and principal of the bonds herein authorized as the - same become due, and it It hereby determined that the amount to be so set aside into said sinking fund in each fiscal year ending on May 31st shall be fully sufficient to pay the principal of and Inter est on said bonds falling due on December 1st of such fiscal year and principal of and interest or said bonds falling due on the June 1st succeeding the close ot such fiscal year, together with an amount equal to ten per cent (10r,i) of the amount so required to be paid for principal and Inter- eat. Such payments into said sink ing fund shall be made in equal monthly installments on the lint day of each . month, except that when the first day of any month shall be a Sunday or a legal holiday holi-day then such payments shall be made on the next succeeding secular secu-lar day. Such CnJtlng fund shall be used solely and only, and is hereby pledged for the purpose of paying the interest on and retiring prin cipal of the bonds herein authorized author-ized to be issued through payment or purchase as hereinafter pro vided. If at any time there be a failure to pay into said ainktn fund the full amounts above stip ulated, then an amount equiv alent to much deficiency shall be paid Into said sir.kir.g fund from to the City of Provo City; and f WHEREAS. ' t h e - outstanding Electric Revenue Bonds in the amount of $850,000 have been call ed ". for payment as ofA-June .1 1940; ..;:;.::. NOW, THEREFORE, Be It and It Is Hereby .Ordained by, the Board of Commissioners of the City of, Provo City, Utah County, Utah as follows: Section 1. That, for the purpose of acquiring : additional generating equipment and distribution facilities facili-ties in order to complete the- enlarged en-larged plant and system originally contemplated, the Board of Commissioners Com-missioners shall enter into a con tract; with ; the Ulen z Contracting Corporation of Lebanon, Indiana for the . completion of : the system, sys-tem, which contract shall be ol the type : and similar in form to the contract' between the City of Provo City and the Ulen Contracting Contract-ing Corporation pursuant to which the- existing system has been ac quired and constructed by the City of Provo City. Section 2. That for the purpose of defraying the cost of the com pletlon of the system to the amount of $350,000 and for . the purpose of refunding the outstanding outstand-ing bonds in the amount of $850,- 000 described in the preamble here' to, there are hereby authorized to be Issued the Electric Revenue Bonds of said city in the total principal amount - of j $1,200,000, which bonds shall be payable solely from the net revenues derived from the operation of the system at hereinafter provided. Section 3. That said bonds shall be dated June T l, 1940, shall , be in the denomination of $1,000 each, shall be numbered 1 to 1200, ' in clusive,- and i shall bear interest payable semi-annually on June ,1, and December 1 of each - year Said bonds to the amount of $850,-000 $850,-000 Issued for the purpose of re funding outstanding bonds - shall bear interest at such rate or rates as may be hereafter ; determinec by the Board of Commissioners provided , that such rates shall be lower than that now borne by the outstanding bonds and shall mature serially annually or. semi-annually in such manner as may hereafter be provided by the Board of Commissioners, Com-missioners, provided that the final maturity shall be not later than the final maturity of the outstand ing bonds. " Said bonds to the amount of $350,000 issued for the completion of the system shall bear interest at such rate or rates not greater than four per cent (49J) per annum, and shall have such annual or semi-annual serial maturities ! running not more thar twenty years from- their date as may hereafter be determined bj the Board of Commissioners.: All of said bonds shall be re deemable in inverse numerical or der on any. Interest-payment date prior to maturity upon paymenl of the principal amount there ol plus all interest due and unpaid net earnings ef said plant and eys- ac count and cor. deration the ccit and value of aid plant ar.d y-tem y-tem and the coat of mar.t-i.r.n-. and operating said plant and sy-tem. sy-tem. and the proper ar.d cec5ry allowances for the depreciation thereof and the amounts r.ece-sary r.ece-sary for the retirement of a:i bonds, and the accruing L-.ten.Et on all such bonds as rruiy be taerued hereunder, and there ahaii be charged against all purchasers t said electricity, includir.g sa;i cly, such rates and amounts as s.iaii be adequate to meet tie requirements require-ments of this and the prececiir.s sections hereof, all of which revenues, reve-nues, Including those received from the city, shall be subject to distribution dis-tribution to. the payment cf the cost of operating and maintaining the piant and system, and the retirement re-tirement of principal of and payment pay-ment of interest on the bonds herein here-in authorized as hereinbefore provided; pro-vided; (b) That the city wia maintain said electric light and power plant and system In good condition and operate the same In an efficient manner and at reasonable cost; (c) That the city will keep proper books, records ana ac counts separate from all lht records and accounts, in v. h;cr eomplete and correct entries chal. be made of all "transactions re lating to the system. Said books and accounts shall be kept at nearly as may be in accordance with the rules and regulation- established by the Utah State Public Utility Commission for pri vately owned utilities. The city will furnish to any holder cf any of the bonds issued hereunder upon written request after the close ot each fiscal year complete oper ating and income statements oi the system In reasonable detail covering such fiscal year; (d) That the bolder or noMen of twenty-five per cent (2S"t ) in aggregate principal amount oi bonds issued hereunder at any tirr.e ouitandin;r shaU have the ngM at ail reasonable times to inspect the r.-stera. and all records, accounts ac-counts and data of the city re lating thereto, and that upon re quest the city wl4 Zv.rr.ish u. twenty-five per cent cf ruca Ref ers such financial statements and other information relating ta the city and the rystem as auch hold er cr holders may from tirr.e lo time reasonably require: (e) That the city ia Its cpe ra tion cf the system wil carry lire insurance, workmen's corr.per-s.a-tion insurance and putUc La&litr insurance, in such amounts and u such extent as t normal: y car ried by I ft rate corpora Uots erratics err-atics public uUlitie cf the &e type. The cart cf ruth ir-ruru-.r Ehali be cofuciaered one or ir.e opera ting costs cf the ryitem. Ir the event cf uxm or cimitt, insurance in-surance proceeds aU be uri first, fr the purpose cf rertcrirg or replacing the prcperty lost -r dt.T.ipfd. ar.d mr.j rrrrainder ahai! fleers, all June, 1940. of the first day of Countersigned: Mayor. City Recorder. (Form of Coupon) Number $ On the first day of 19...., the City of Provo City Utah County, , Utah, will pay U bearer Dollar! ($.........) in the manner and out of the fund prescribed In the bond to. which this coupon Is at. tached, and not otherwise, in law ful money of the United States of America at the American Na tional Bank ' and Trust Company of Chicago in the City of Chicago, Illinois, for interest due that day on its Electric Revenue Bond, Series 1940, dated June 1. 1940 Number 4 Countersigned: Mayor City Recorder. (Form of. Auditor's Certificate) I, the undersigned, duly qualified quali-fied and acting Auditor of the City of Provo City, Utah County, Utah, do hereby certify that the within bond 1st within the lawful debt limit of the City of Provo City. Utah, and is issued according to law. - Witness my official signature this day of 1940. revenue bonds of eald citv: pre scribing; the form and other de-to the date for which - they are designated, and not otherwise, the i facsimile signatures of said of- j tern as soon as available, and in Uin OI tme xoouaanu : juueura ($1,000) on the first day of June, 19..., with interest thereon from date hereof until paid at the rate of .............. percent (..! per annum, payable December 1 1940, and semi-annually, thereafter there-after on the first . day of June and the first day of December of each year upon presentation and surrender of the annexed interest coupons as the same severally mature, both principal and inter est being payable in lawful money of the United States of America at the American National Bank and Trust Company . of Chicago in the City of Chicago, Illinois. This bond may be called fot redemption at the option of the city on any interest payment date upon payment- of the principal sum hereof, accrued interest to the date fixed for redemption, and a premium " equivalent to one year's interest hereon. If this bond is so called thirty days notice is to be given by one publication in a financial newspaper published in the City of Chicago, Illinois, and by registered mail to the place of payment hereof and, if this bond be registered as to principal to the registered holder hereof. This bond and the issue of which it is one are issued by the City of Provo City pursuant to -ordin ance duly enacted and pursuant to authorization duly granted by a majority of the qualified tax- paying electors of said city voting at an election held on the 25th day of May, 1940, in part for the purpose of refunding a like pax principal amount of outstanding revenue bonds of ' said city orig inally.- issued for- the purpose oi construction and acquiring an elec tric light and power plant ano system, and in part for; the purpose pur-pose of paying the cost of com pleting said plant and system, in full' conformity with the constitu tion and laws of the State of Utah. Both principal of and interest inter-est oh this bond and the issue of which it. is a . part are payable soley from a special fund designated desig-nated as the "City of Provo City Electric Revenue Bond Sinking Fund' into which fund are to be placed '-the net revenues derive! and to be derived from the opera tion-"of said electric power anc light plant and system, all as more fully described and provided in -the ordinance to which refer ence is . above made. The city has covenanted anc agreed and does hereby covenant and- agree -that it will : fix aucn rates for the sale of electricity and will collect -and account for the revenues to be received foi the sale of such electricity, that the net revenues so received will be sufficient promptly to pay the principal of and interest on this bond 'and the issue of which it forms a part, as each becomes due. ' - ' This bond may be registered as to: principal - in the name of the J Auditor. (Form of Registration Certificate) addition to the amount otherwise required to be so set apart anc paid into said sinking fund. Any balance of the net earninrs in excess of the payments herein before specified to be made tnt said sinking fund shall be avail able to the city as the Board c Commissioners may from time to time direct, " and whenever there shall be in the sinking fund money more than sufficient to pay ai principal and interest falling due during the next succeeding six months, and in addition a reserve fund of $25,000. such surplus over and above said reserve fund of $25,000 and the amount so needed for principal and Interest falling due during the next six months shall be used by the city lo pur chase bonds herein authorized and then outstanding on the open roar- ket at the best price or price obtainable, but not exceeding the price or prices at which suet bonds could be redeemed undei their optional feature. If Insuf ficient bonds to exhaust the sur plus can be purchased at such price or prices, then the city shall call for payment on the next suc ceeding Interest payment date an amount of bonds sufficient tc exhaust the surplus. Bonds sball continue to be so purchased oi called from time to time whenever surplus money is available and ail bonds so purchased or redeemec shall be cancelled and shall not be reissued. All accrued interest receivec from the purchaser of said revenue bonds at the time of the delivery Date of Registration I In Whose Name Registered Signature of City Treasurer Section 7. That; the agreement thereof shall be paid into saic between Provo City and John Nu veen and Company of Chicago Illinois, for the purchase of said bonds, which agreement is dated April 18th, 1940. is now on file in the office of the City Recorder and agrees to pay for said above described bonds not less than the price of par and accrued inter est to the date of delivery, be and the same Is hereby confirmed, and the Mayor and City Recorder are authorized to have said bonds printed and executed as soon as may be after the adoption of this ordinance, and thereupon deliver ed to said John Nuveen and Com pany, in accordance wiih the terms of said bid. Section 8. That notwithstanding anything in this ordinance else where contained, the principal of and interest on said bonds ahai be payable only out of the net revenue derived and to be derived from, said electric light and power plant and system of the -City of sinking fund. All money held in said sinking fund shall be deposited In a bank approved as a regular depositary by the State Depositary lioarc and so far as permitted . by law such deposit shall be continually secured by a valid pledge of Ci-rect Ci-rect obligations of the United States Government having an equivalent market value, or surety bond written by a solvent surety company of recognized standing. Section 10. That the City ol Provo City hereby covenants and aitrees with each and every holder of the bonds issued hereunder: (a) That while the bonds authorized auth-orized herein or any of thcra remain re-main outstanding and unpaid, the rates for all electricity sold by the said electric light and power plant and eystem to said city and to its citizens, . and to ail consumers con-sumers within or without the boundaries of said city, shall be reasonable and Just, takir.g lntc press! J be pa tr.to the --trie Kmaue Bond Sixkir.g Fur.a.w ar.a r-iJ re sue ject to distribution in the same manner as are other cwnrri id said fund; If) That the city wta not :!, lease, mortgage r in ar.y manner man-ner dipoe of the ryrtera. or ary part thereof. Including any and all extenctona and ad.Uona that may be made thereto, ur.lii an of the bonds herein authorized to be-issued shall have been paid U-full, U-full, both principal and Ir.Urwt except that the city may fc'U aav portion of said property whicr ahall have been replaced cy thei property cf at least equal value, or which shall cease to be re-e-aary fr the efficient operation ot the eystem. provided however. lh la the event of any sale as afre-faid afre-faid the proceeds of such salt ahall be first paid into the .rc-txtc .rc-txtc Revenue Bond Sinking rurl and distributed as are ot he I moneys In said fund; (g That In the event cf de fault on the part of the city in paying principal cf or ir.teresl on said revenue bonds promptly as each fall due, or in the keeping of any covenant herein contained, and if uch default ehali continue for a period cf sixty daj- the city will appoint a manager for the system, which rr.ar.agei ahall have full control over the system and ahall cperate the rya- tem for the City of Provo jiiy. and shall enforce such reasonable rates and charges as will be suf ficient to make the payments re quired by this ordinance, anc shall In all things so opt rate the system as to fully comply wiU all cf the requirements ar.d prct visions cf this ordinance. ir.t right of the holder or holders cf the bonds herein aulborix-e-d to require the appointment ot rucr manager ahau not be exc:uve and in the event of default a herein outlined, such holier cr holoers ehaU have the right U proceed in law cr equity to re quire the performance cr th covenants herein cmtained m any action which to them ahill ee'r appropriate. (hi That the city r''i per mit any other electric t rtt mna power plant or ditniuts&n ay- tera to be cperated t-'.c boundaries of the c;ty while ary cf the bonds herein authorize remain ouU tar. i.r.g and ur-l- Sectir-n 11. That U b'-rdt authorized to be lss-Jed hr-33T and from time lo time ou-aUniLrg ahall not be entitled to any rrvr-ity rrvr-ity one over the other in the application ap-plication cf the revenue ct aa-td riant and ayrtern. rrni:ea , the time cr times cf th;r lsJ-ance. lsJ-ance. 11 beir.jc the lr.ter.tica cf the Board cf Comrr.LMiorsera that there ahall be ro rror.ty arr cr.g tie bends authorized to be Urned p-tr- auar.t to thi ori.r.arjce rerarce cf the fact, that therr rr.ay t actually issued, and delivered at (Liferent times. It is terttry ex- agreed and coYer-ihU'd |