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Show August TIIE JOURNAL 17, 1957Au the estate, properties, rights, pow- valorem taxes shall not be regard- provements to the system, or shall ed municipalities for sewage treaters, trusts, duties and obligations ed as revenues' as that term is be used by the board to pay prin- ment and disposal service purused in this section. From and af-,t- cipal of and interest on junior lien suant to contracts between such 4. The Trustee shall he under no of its predecessor in trust herethe issuance of any of the bonds or general obligation bonds municipalities and the district) for obligation to perform any act here- under with like effect as if origiunder or to institute or defend nally named as Trustee herein, revenue bonds, the revenues shall of the district, or for any one or the payment of the expenses of to act be set aside into and are hereby more of the aforesaid purposes, in maintaining and operating the any suit in respect hereof unless and the Trustee ceasingsuccessor shall pay over to the pledged for the purposes of the the discretion of the board. In system and to preserve it in good properly indemnified to its The retiring bonds hereunder, the Trus- repair and working order, to protrustee any money or securities following special funds. which may then be in its posses- Trustee shall allocate all of the tee is hereby authorized to give the duce an amount in each fiscal fi. The Trustee shall not be re- sion under the terms hereof. revenues to the various funds in notification of redemption herein- year sufficient to pay maintenance quired to take notice of any dethe order in which the funds are above required and to pay all bonds and operation expenses, to make fault of the district or the hoard Section K hereinafter listed. All charges for presented, for redemption and to the payments required to be made unless specifically notified of such The Consulting Engineers services rendered by the system cancel all bonds so redeemed and the Revenue Bond and Interdefault in writing by the holders and Linke, of Salt shall be payable by the user there- deliver the cancelled bonds to the into Templeton est Redemption Fund and the of any of the outstanding bonds. Lake City, Utah, have been here- of to the General Manager or to at time to the (5. The Trustee shall not be tofore selected by the board and the collector to whom the General Treasurer. If prior Guaranty Fund in such fiscal year, which notice of redemption must and to perform all other duties rebound to recognize any person as are hereby appointed as consulting Manager may have delegated the be so given it shall appear to the under the be the holder of any of the bonds engineers for the purposes of this collection of charges, and shall be Trustee that revenue bonds can quired to of performed The resolution. this is and until title thereto unless provisions resolution. It shall be the duty of paid by the Manager or collector on market be the will it that of covenants open to levy satisfaction board the established purchased such engineers to complete prep- to the Trustee as rapidly as colthe Trustee. aration of any part of the plans lected. The General Manager may at a price lower than that at which and collect in each tax year, be7. The Trustee shall not be held and specifications for the portion make such arrangement for the revenue bonds can be called for ginning with the year 1957 an ad redemption, the Trustee shall use valorem tax on all taxable property responsible in acting upon any no- of the system which is to be con- maintaining of facilities for the all part of such surplus funds in the idstrict at such rate not tice, resolution or other paper or structed with the proceeds of the collection of fees and charges in for or the purchase of revenue bonds greater than four (4) mills on the document believed by it to be gen- bonds herein authorized, if such the County Treasurers office or the best at price or prices obtain- dollar as will be fully sufficient, uine and to have been signed or pre- plans and specifications have not in the office of the Trustee, or bonds so purchased shall after making due allowance for deAll able. sented by the proper party or been heretofore entirely completed, elsewhere, as may be directed by and deliv- linquencies in collection, to pay all be cancelled to supervise the construction of the board. The revenues so paid similarly parties, to ered the Treasurer. such portion of the system and to the Trustee shall be by the reasonably necessary costs of 8. The Trustee shall not be obextensions and and .operating the improvements Trustee set aside as received into The amount to be paid into the maintaining ligated or liable to allow the dis- any while made be which in the thereto may year in which such system the following special funds: trict interest on any money reBond and Interest Redemption taxes bonds remain revenue the of such tax being the fall due, ceived by it hereunder, except as any Fund in each fiscal year shall be tax authorized to revenues Out there the the of apoutstanding, (a) supervise by Section herein otherwise specifically prosuch amount as will be fully sufof the time be of the aside set shall from first proceeds plication Utah Code Annotated, 1955. vided. bonds to the payment of the con- to time as needed during each fis- ficient to pay all principal and (b)If at any time the revenues 9. The district will pay to the struction costs in the manner here- cal interest falling due on June 1 and for the fiscal year (the year such charges shall from reaTrustee from time to time a and to perform purpose of this resolution being December of such fiscal year, on arising inafter provided, to make all such be not sufficient sersonable compensation for its such other functions as are here- the same as the calendar year), the revenue bonds and such oblias herein rewhich vices rendered hereunder, mentioned. At such amount, if any, as may be gations as may be issued in the payments promptly inafter specifically will revise the board compensation shall be regarded as any time after the completion of future on a parity with the revenue quired, the the to for payprovide necessary an expense of maintaining and op- the construction of the portion of bonds under the conditions herein- sewer service charges to users ment the of such of expenses part be erating the system and shall the system which is to be construct- of maintaining and operating the after set out. There shall also be other than the municipalities payable from the revenues there- ed with the proceeds of the bonds paid into said fund all accrued whose charges are fixed by conin fiscal such as may year system of accordingly. herein authorized, or earlier if be in excess of the proceeds de- interest received from the pur- tract, so that such deficiency will 10. The Trustee may become be remedied before the end of the said and Linke become rived in such fiscal from the chaser of the revenue bonds at next year the owner of bonds and coupons unableTempleton ensuing fiscal year. If any or unwilling to serve, suc- levy of the four (4) mills opera- the time of the delivery thereof. with the same rights it would have cessor revision in charges shall so such consulting engineers may be tion and maintenance tax author- Money in the Bond and Interest it not Trustee. become necessary, the board agrees by the board, but such ized to be levied by Section Redemption Fund not needed for to consult The Trustee and any successor appointed with and be guided by engineers so appointed Code Annotated, 1955. the payment of principal and in- the advice of the Utah trustee may resign by giving to successor consulting engishall be engineers of recognized This fund shall be the District Clerk notice in writdesignated as terest falling due on the next in- neers as to what revision should in matters and ability standing the Operation and Maintenance terest payment date may be in- be made. If the board shall fail ing and by giving the bondholders and to the construction pertaining bills of the to notice through publication at least revise such charges as herein of sewer systems. The Fund, and shall be maintained in vested in ninety day operation less once not than sixty days prior fees for services rendered such reasonably necessary amount United States Treasury. the by required, the holders of not less to the effective date of such resigbe paid out in such manshall and Bond Revenue the in All comten per cent (10) in aggrethe after than money consulting such purpose as may and Interest Redemotion Fund and ner and for nation, in a financial newspaper pletion of engineers the the of sysgate principal amount of the outor journal published in the City tem which is portion be directed by the board. in the Guaranty Fund standing revenue bonds and bonds be to constructed all money of New York, New York, and in and with the proceeds of which is not invested in securities hereafter issued on a parity with a financial newspaper published in the acquired (b) From the revenues not re- as herein bonds voted at the election permitted shall be held the revenue bonds, whether or not the City of Chicago, Illinois. Such above referred to shall be con- quired in each fiscal year for opas a special trust any of the bonds shall then be in Trustee the resignation shall take effect on sidered as one of the expenses of eration and maintenance as above by beneficial interest in default, shall have authority to the fund, the day specified in such notice there shall be set aside which provided, and the from bring an appropriate action in any holders the be in shall maintaining operating unless previously a successor into a fund to be designated as the of the time to time system. outstanding court of competent jurisdiction to trustee s'hall have been appointed Revenue Bond and Interest Re- revenue be the compel the board to carry out the shall and it bonds, 9 Section the hereor either by bondholders Fund the amount by demption to provisions of this to transmit the of Trustee The General Manager paragraph. The board as hereinafter provided, in inafter required to be paid into duty not less bank the paying agent will make no board The board agrees that it will such fund in such fiscal it that agrees which event such resignation shall year. the of in advance fifteen than in a well reduction schedule of charthe days the general qualified take effect immediately upon appoint (c) From the revenues not re- falling due of principal or interest, shall who the district for set out hereinafter and that such successor manager appointment of quired in each fiscal year for the money from the Revenue Bond and ges the the board of at serve will be not to reduced it trustee. pleasure permit payments above required to be The Trustee may be removed at and be charged with the general made into the Operation and Main- Interest Redemption Fund or, if the charges required to be paid to from the Guaranty the district by incorporated muniany time by the holders of a ma- management of the system, and tenance Fund and into the Rev- necessary, amount sufficient to cipalities for sewage treatment and in an be whose one the shall of Fund, in salary aggregate principal jority enue Bond and Interest Redempand interest so disposal service under the conthe amount of the outstanding revenue expenses of maintaining and oper- tion principal Fund, there shall be paid in- pay All the money in tracts entered into between such due. of bonds and bonds hereafter issued ating the system. falling The General Manager may either to a fund to be known as the the Guaranty Fund shall be invest- nunicipalities and the district, unon a parity therewith by an inFund the sum of ed by the Trustee in direct oblistrument or concurrent instruT serve as collector of the revenues Guaranty til all of the revenue bonds issued have been shall there until $15,000 of the United States of hereunder shall have been retired, ments in writing filed by such of the district or may employ a gations holders with the Trustee and with collector, as may be determined accumulated in the Guaranty fund America maturing in not more but this sentence shall not be apby the board, but the General the sum of $90,000 or such larg- than ten years from the date of plicable to the amounts fixed for the District Clerk. In case the Trustee or any suc- Manager shall in any event be er amount as may be specified in purchase, in which event all income connection charges or initial cessor trustee shall resign, be dis- responsible for the prompt and any proceedings hereafter adopted derived from such investments solved, be removed or' otherwise aggressive collection of fees and authorizing the issuance of revenue shall be added to the money in 5. The board will not permit free become disqualified or incapable charges due for the services rend- bonds on a parity with those here- said fund and the Trustee is hereto be supplied lay the sysservices the provisions by authorized, to the extent at any of acting, a successor trustee may ered by the system and for the in authorized, under tem to the district or to any per11 hereof. If at any time necessary, to sell a number be appointed by the holders of a prompt payment thereof to the of Section or firm time after the initial accumula- of such obligations sufficient to son, corporation, public or majority in principal amount of Trustee as hereinafter provided. to or The General Manager shall be tion of the amount required to be any public agency the outstanding revenue bonds produce the money necessary to private, and bonds hereafter issued on a required to supply a fidelity bond in the Guaranty Fund the amount make up the deficiency in the or instrumentality. 4. The minimum schedule of parity therewith by an instru- written by a surety company of in the fund shall fall below the funds available for the payment rates for services rendered by the ment or concurrent instruments recognized standing and with a full amount so required to be ac- of principal of or interest on the which schedule shall be in writing filed with the Trustee discoverly clause of at least three cumulated therein, such deficien- bonds secured system, which sale such increase and revito and with the District Clerk, but years, in the amount of not less cy shall be remedied through the may be made bythereby, subject the Trustee either sion from to time as may be until a successor trustee shall have than $25,000, to assure the faithful payment thereinto of all of the privately or time but at not to been so appointed by the bond- carrying out of his duties and the revenues received in such fiscal year less than thepublicly, carry out the proviprevailing prices necessary sions of this holders, the board by an instru- prompt and diligent enforcement, year after payments Vequired to quoted for the obligations resolution, shall be as so sold. ment in writing duly authorized collection and proper application of be made into the Operation and follows: Section II by resolution shall in such case all fees and charges due for the Maintenance Fund and into the Single residential units, $1.00 per General Covenants services The of the to a premsystem. successor Trustee the Remonth. appoint Revenue Bond and Interest The board hereby covenants and and shall cause notice thereof to ium for such bond shall be re- demption Fund in such fiscal year Double residential units, be published as promptly as pos- garded as one of the expenses of shall have been made, until the re- agreeswith the successive holders to from time commercial time of the bonds houses, apartment and sible in a financial newspaper or maintaining and operating the quired amount has again been ac- the and industrial units, schools, coupons representing interest journal published in the City of system. cumulated in the Fund. churches and other unclassiGuaranty thereon, that so long as any of the If at any time the holders of New York, New York, and in a in the Fund shall Money fied units above will have rates Guaranty bonds remain outstanding and unfinancial newspaper published in a majority in aggregate principal be used to inor of set proportional to the servpay principal to as ineither paid amount or of the principal the City of Chicago, Illinois. The outstanding revenue terest on bonds from the ice payable terest: rendered as recommended bonds bonds and hereafter issued Revenue Bond and successor trustee so appointed by ReInterest 1. the The board will by on a maintain bonds with the revenue the consulting engineers and the board shall serve as the Trustee parity to which Fund as there fixed demption in shall and file with workthe system of clerk the by the board. good repair until such time as a successor would in a default be if the For money and order will board a ing on written instrument every connection heretrustee shall have been appointed operate it effiFund so not were used. Guaranty after made reand will with the system concurrent written instruments ciently faithfully and by the bondholders in the manner shall have After there been (d) than of the connections made the (other punctually perform all duties with hereinabove provided. If in a prop- questing resignation in made fiscal each the in to reference payyear the system required by incorporated municipalities er case no appointment of a suc- General Manager, the board shall (a), the constitution and laws of the which have contracts with the cessor trustee shall be made pur- promptly, and within thirty days, ments required in district pursuant to which the suant to the foregoing provisions appoint a successor General Man- (b) and (c) above, and after any State of Utah and the provisions existwhich deficiencies have of and so this the Clerk shall notify the district is to treat and dispose may resolution. within six months after a vacancy ager, 2. The board will fix and collect of municipal sewage for such shall have occurred, the holder of General Manager previously serv- ed in previous fiscal years shall municipalities) there shall be any bond or the retired trustee ing that his appointment is term- have been remedied, the remaining rates and charges for services supcharged an initial payment in may apply to any court of com- inated and his appointment shall revenues received in such fiscal year plied by the system fully sufficithe nature of a connection fee petent jurisdiction to appoint a thereupon be terminated. The suc- need not be paid to the Trustee, ent, after making allowance for successor trustee. Said court may cessor General Manager so appoint- but shall be paid by the board to delinquencies in collection, to proof $150. If any initial payment due thereupon after such notice as to ed shall be first approved by the the Trustee to retire in advance of vide (in conjunction with the proit shall seem proper, appoint a consulting engineers. under the preciding paragraphs maturity revenue bonds or bonds ceeds of the annual operation and Section 10 hereafter issued on a parity there- maintenance tax which is to be successor trustee. of this section is not paid with, or shall be used or reserved caused to be levied by the board Disposition of Revenues Any successor trustee appointed promptly when due, there hereunder shall without further Except whore specifically other by the board for the making of and in conjunction be added thereto a shall with the act become fully vested with all visi' indicated, the pna eds of ad icplacemonts, extensions or ini - amounts received from on Page 5) incorporat- - (Continued from Page 3) er 17-9-5- .8 1 17-0-5- .8 sub-sectio- ns pen-continu- ' ed |