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u PACiE 10 - PLAINDE ALER - FRIDAY. OCTOBER 20.1978 Legal Notice ORDINANCE NO 78-0-12 A N O R D I N A N C E authorizing and providing for the issue of $270,000 Sewerage Revenue Bonds of the V illage of Lakemoor, MeHenry County. Illinois, for the purpose of defraying the cost of constructing a sewerage system in and for said Village WHEREAS, it is deemed advisable, necessary and in the best interests of the Village of lakemoor in order to protect, promote and safeguard the public health of the inhabitants of said Village that a sewerage system be constructed for said Village, said system to consist of the following Ap­ proximately 33,321 linear feet of 8 to 18." sanitary sewer mains. 2.390 linear feet of force main. 137 manholes. 5 lift stations and approximately 16,509 linear teet of 18' force mam extending from the Village of Lakemoor to the Island Lake Sanitary District sewage treatment plant together with all necessary equipment and appurtenances necessary to the operation of a sewerage system and in ac cordance uith the plans, specifications and cost estimate therefor heretofore approved by the President and Board of Trustees of this Village and now on file in the office of the Village Clerk for public inspection; and WHEREAS. the total estimated cost of the con struction of such sewerage system as prepared by Baxter & Woodman, tne Engineers for said Village employed for that purpose, is the sum of $1,741,600 including the purchase of land, legal ana engineering cost and interest during construction, and WHEREAS, the Village does not have sufficient funds available for the purpose of paying such cost ana in order to raise the funds required for such purpose it will be necessary that the Village borrow money and in evidence thereof issue its Sewerage Revenue Bonds in the principal amount of $270,000, said bonds to be payable solely and only- out of the earnings to be derived from the operation of the sewerage system of said Village ana WHEREAS, pursuant to the provisions of Division 141 of Article 11 of the Illinois Municipal Code, this Village is authorized to issue Sewerage Revenue Bonds in an amount sufficient to pay all or part of the cost of the construction of said sewerage system and WHEREAS, this Village has received a development grant trom the Illinois En vironmental Protection Agency in the amount of $1,205,300. which, with other funds which will be on hand will be suf ficient to complete the con­ struction of said sewerage sys t em and WHEREAS, the United States of America acting through the Farmers Home Administration, United States Department of Agriculture hereinafter sometimes r e f e r r ed to a s Government" t has indicated its intent to purchase such revenue bonds: ; »nd WHEREAS, the s ewerage sys t em sha l l he re ina f t e r be r e f e r r ed to t h roughou t t h i s o rd inance a s the " sys t em" : V >V\ THEREFORE. Be It Ordained by the President and Board of Trustees of the Village Lakemoor. MeHenry County. I l l i no i s , a s fo l lows : , Sec t ion 1 Tha t t he P re s iden t j nd Board o f T rus t ee s o f t he V i l l age o f Lakemoor has c j aused an e s t ima te t o be made of t he cos t o f cons t ruc t ing t he ^vs t cn . fo r s a id Vi l l age , a s desc r ibed he re inabove in t he p reamble o f t h i s o rd inance , and a l l i n a cco rdance wi th t he de t a i l ed p l ans and s p e c i f i c a t i o n s t h e r e f o r he re to fo re app roved by t he P re s iden t and Boa rd o f Trus -f»'s on October 14 1976. and iw on f i l e i n t he o f f i ce o f t he l l l age C le rk fo r pub l i c i n spec t ion and has he re to fo re e s t Ma ted and does he reby e s ' .ma te tha t t he cos t o f t he co r s t ruc t ion o f s a id sys t em i s •he M i d , o f $1 ,741 ,600 Sec t lo r J Tha t t he P re s iden t and Unard o f T rus t ee s do he reby de t e rmine the pe r iod o f u se fu lnes s o f s a id sys t em to be fo r ty to yea r s f rom the da t e o f comple t ion o f t he con s i r ue ' i on Sec t ion i Tha t t he Vi l l age does r io t t i a \ e su f f i c i en t funds ava i l ab l e fo r t he pu rpose o f pay ing the cos t o f cons t ruc t ing sa id sys t em and fo r t he pu rpose o f pay mg the cos t t he reo f i t w i l l require the issuance of $270,000 Sewerage Revenue Bonds o f s a id \ i l i age a s he re ina f t e r s e t (Hit Sec t ion 4 Tha t f o r t f i e pu r pose of de f r ay mg the cos t o f t he cons t ruc t ion o f t he sys t em of sa id Vi l l age a s desc r ibed he re ina fx iye in t he p reamble o f this ordinance there be issued and so ld s ewerage r evenue bonds of said Village in the pr inc ipa l amoun t o f $270 . (KM) , wh ich . bonds sha l l * b e de s igna t ed Sewerage Revenue Bonds and f>e dated ;is of the date of delivery of said bonds to the purchaser thereof Said Bonds may be originally issued as fully registered r>onds without coupons in accordance ijvith the provisions hereinafter »et out Said bonds shall be numbered consecutively from 1 fo 135. be of the denomination of $2.000each, bear interest at the rate of 5 percent per annum, pavable on the first May 1 after the date of said bonds and semiannually thereafter on November l and May 1 of each year and shall mature on May 1 in each of the years and in the amounts as follows Year of Maturity Principal Inclusive Amount 1981 to 1985 i $ 2.000 1986 to 1995 4.000 1996 to 2002 6.000 2003 to 2007 8,000 2008 to 2011 10.000 2012 to 2013 12,000 2014 to 2016 14.000 2017 to 2018 16,000 The number of each such bond shall be preceded by the letter R Said bonds shall be subject to redemption and payment, as a whole or in part, at the option of the Village, in the inverse order of their number, at any time and at a price of par and ac crued interest to the date of redemption Written notice of its option to redeem and pay prior to their maturity any or all of said bonds which by their terms shall be subject to redemption and payment shall be given by the Village in the manner and in the time as directed in the bond form prescribed for the fully registered bonds Section 5 That both principal of and interest on said fully- registered bonds shall be payable to the registered holder thereof in lawful money of the United States of America at the address of the holder as shown on the registration books of the Village That the bonds shall be signed by the President, sealed with the corporate seal of said Village ana attested by the Village Clerk Said bonds, together with the interest thereon, shall be payable solely from the revenues derived from the system and shall not. in any event, constitute an in­ debtedness of the Village within the meaning of any con­ stitutional or statutory limitation Section 6 That the fully- registered bonds without coupons <to be delivered to the United States of America i shall be in substantially the following form i Form of Fully Registered Bond without coupons > UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF MCHENRY VILLAGE OF LAKEMOOR SEWERAGE REVENUE BOND Number R $2,000 KNOW ALL MEN BY THESE PRESENTS, that the Village of Lakemoor. MeHenry County, Illinois, for value received hereby promises to pay to the registered holder as hereinafter provided, solely from the Sewerage Fund of the Village of LaKemoor. as hereinafter mentioned and not otherwise, the sum of Two Thousand Dollars '$2,000' on May 1.------. together with interest on said sum from date hereof until paid, at the rate of-- -- per cent < -- percent i per annum, payable on the first May 1 after the date of this bond, and semiannually thereafter on November 1 and May 1 in each year Both principal of and interest on this bond are hereby made payable in lawful money of the United States of America at the address of the registered holder as shown on the registration books of the Village Thi s bond and the s e r i e s o f wh ich i t f o rms a pa r t , t oge the r w i th such add i t i ona l pa r i t y ob l iga t ions a s may be he rea f t e r i s sued unde r t he p rov i s ions o f t he o rd inance au tho r i z ing sa id bonds i s payab le so l e ly f rom revenues de r ived f rom the ope ra t ion o f t he s ewerage svs t em of s a id Vi l l age and no t o the rwi se and i s i s sued unde r au tho r i t y o f t he p rov i s ions o f D iv i s ion 141 o f Ar t i c l e 11 o f t he I l l i no i s Mun ic ipa l Code and a l l l aws amenda to ry the reo f and supp lemen ta l t he re to , and an o rd inance du ly adop ted pu r suan t t he re to by t he P re s iden t and Boa rd o f T rus t ee s o f s a id Vi l l age on the 12 th day o f Oc­ t obe r . 1978 . and pub l i shed a s r equ i r ed by l aw fo r t he pu r pose o f pay ing the cos t o f cons t ruc t ing a s ewerage sys t em fo r s a id Vi l l age , and th i s bond does no t cons t i t u t e an indeb tedness o f s a id Vi l l age wi th in any cons t i t u t i ona l o r s t a tu to ry l imi t a t i on Fo r a more comple t e s t a t emen t o f t he sou rce o f paymen t o f such bonds t he c i r cums tances unde r wh ich add i t i ona l ob l iga t ions may be i s sued on a pa r i t y t he rewi th and a s t a t emen t o f t he r i gh t s du t i e s and ob l iga t ions o f t he V i l l age and the r i gh t s o f t he ho lde r s o f t he bonds r e f e rence i s made to t he a fo re sa id o rd inance , t o a l l t he p rov i s ions o f wh ich o r d inance the ho lde r he reo f by t he accep tance o f t h i s bond a s sen t s Th i s bond i s one o f an autho r i zed i s sue o f $ 2 7 0 . ooo Sa id bonds sha l l be sub jec t t o r edempt ion and paymen t , a s a who le o r in pa r t . a t t he op t ion o f t he Vi l l age , i n t he inve r se o rde r o f t he i r number a t any t ime and a t a p r i ce o f pa r and ac ­ c rued in t e r e s t t o t he da t e o f r edempt ion No t i ce o f t he r edempt ion o f any o r a l l o f s a id bonds sha l l be g iven by t he Vi l l age to t he r eg i s t e r ed ho lde r t he reo f by r eg i s t e r ed ma i l a t l ea s t t h i r t y <30 i days p r io r t o the date of redemption, and any such notice shall designate t he t ime and p l ace o f r e r f emp t ion of sain bonds, shall des igna te t he s e r i a l number and the aggregate principal amount of the bonds to be redeemed and shall indicate t ha t on the des ignated date of r edempt ion sa id bonds sha l l be redeemed by payment of the principal amount thereof and accrued interest thereon to the date of redemption and that from and after the designated redempt ion da te in teres t i n respect of said bonds so called for redemption shall cease if redemption moneys are available for the payment of the bonds so called for redemption. This bond shall be registered as to principal and interest in the name of the holder in ac­ cordance with said ordinance, after which it shall be tran­ sferable only upon presentation to the Registrar of a written transfer duly acknowledged by the registered holder or his attorney, and such transfer shall be noted upon the bond and upon the books of the Village kept for that purpose Under said Code and the ordinance adopted pursuant thereto authorizing the issuance of this bond and the series of which it forms a part, the revenues derived from the operation of the system of said Village shall be deposited in a separate fund designated as the "Sewerage Fund" of said Village, which shall be used only for paying the cost of operation and maintenance of said system, providing an adequate depreciation fund and paying the principal of and interest on the bonds of said Village that are payable by their terms only from the revenues of said system, and in making all payments required to maintain the several special accounts established and created under the terms of the ordinance heretofore adopted and pursuant to which this bond is issued It is hereby certified and recited what all acts, conditions and things required to be done precedent to and in the issuance of this bond, have been done, have happened and have been performed in regular and due form of law and that provision has been made for depositing in said Sewerage Fund of said Village the entire revenues received from tne operation of said system to be applied in the manner as hereinabove set forth, and said Village hereby convenants and agrees that it will fix and ^maintain rates for the use and "service of said system and collect and account for revenues from said system sufficient at all times to pay the cost of maintenance and operation of said system, to provide an adequate depreciation fund, to pay promptly principal of and in­ terest on all bonds issued by- said Village which bv their terms are payable solely from the revenues of said system, and to comply with all the covenants of and to maintain the several accounts created and established by the or­ dinance heretofore adopted and pursuant to which this bond and the series of which it forms a part were issued The rights and obligations of the Village and of the holders of the series of bonds of which this bond is one may be modified or amended at any time with the consent of the Village and of the holders of not less than seventy- five percent (75%) in principal amount of bonds of the series of which this bond is one. and including all bonds which may- hereafter be issued and on a parity with the series of bonds of which this bond is one, then outstanding t excluding any of said bonds owned by or under the control of the Village), in the manner, to the extent, and upon the terms provided in the ordinance authorizing the issue of the series of bonds of which this is one provided that no such modification or amend ment shall extend or change the maturity or the date of redemption prior to maturity, or reduce the interest rate on or otherwise alter or impair the obligation of the Village to pay the principal or interest at the time and place and at the rate and in the currency provided therein of any bond without the express consent of the holder or registered owner of such bond, nor permit the creation by the Village of any preference or priority of any revenue bond or bonds of the series of which this l»ond is one over any other bond or bonds of such series and including any bonds which may- hereafter be issued and be-a parity with this bond and the series of which it forms a part, nor reduce the percentage of such ou t s t and ing r evenue bonds required for the af firmative vote or written consent to an amendment or modification, all as more fully- set forth in said ordinance authorizing this bond and the series of which it forms a part IN WITNESS WHEREOF, the said Village of Lakemoor. MeHenry County, Illinois, by its President and Board of Trustees, has caused this bond to be signed by its President, its corporate seal to be hereto affixed and attested by the Village Clerk and this bond to be dated -- , 197----. President. Village of Lakemoor Attest Village Clerk, Village of lakemoor ' Form of Registration to appear on back of bond) PROVISIONS FOR REGISTRATION This bond shall be registered on the books of the Village of Lakemoor kept for the purpose by the Village Treasurer as Bond Registrar The principal and interest on this bond shall be payable only to or upon the order of the registered holder or his legal representative Section 7. That upon the issuance of any of the revenue bonds herein provided for, the system of said Village, for the purpose of this ordinance, shall be operated on a fiscal year basis commencing the first day of May and ending the last day of April of each year. From and after the delivery of any bonds issued under the provisions of this ordinance ana so long as any of the revenue bonds authorized to be issued under the terms of this ordinance remain outstanding and upaid, the revenues from any source whatsoever derived from the operation of the said system of said Village, including all future improvements and extensions thereof, shall be set aside as collected and be kept separate and apart from all other Village funds and deposited as a separate fund, which fund shall be designated as the "Sewerage Fund of the Village of LaKemoor" and which fund shall be used and held for use only in paying the cost of operation and main- teance of said system, providing an adequate depreciation fund, paying the principal of and interest upon all revenue bonds of said Village which by their terms are payable solely from the revenues derived from the said svstem of said Village, and for the creation, establishment and maintenance of and the ex­ penditure from the respective accounts hereinafter provided for in Section 8 of this or­ dinance Section 8. That there be and there are hereby created and established separate accounts of said "Sewerage Fund" to be designated severally "Operation and Maintenance Account", "Bond and Interest Sinking Fund Account". "Depreciation Account", and "Bond and Interest Reserve and Redemption Account", into each of which said separate accounts there shall be paid on the first business day of each month without any further official action or direction and in the order in which said ac­ counts are hereinafter men­ tioned, all moneys held in the Sewerage Fund of said Village, in accordance with the following provisions: <a) There shall be paid into the Operation and Maintenance Account on the first business day of each month an amount sufficient to pay the reasonable expense of operation, maintenance and repair of said system for the current month and the next succeeding month, including, without limiting the generality of the foregoing, salaries, wages, taxes, costs of materials and supplies, insurance, power, fuel, reasonable repairs and extensions necessary to render ef­ ficient service. At the time of delivery of the bonds there shall be deposited in said Operation and Maintenance Account the sum of $11,900, such amount to be derived from advance connection fees < b) There shall be paid into the Bond and Interest Sinking Fund Account on the first business day of each month, after the required payments have been made into the Account above described, a frac tional amount of the in terest becoming due on the next succeeding interest payment date on all out standing bonds authorized to be issued under the terms of this ordinance and including the interest to become due on all bonds as may be issued in the future on a parity with and to share ratably and equally in the earnings of the system with the bonds herein authorized and under the conditions hereinafter set out 'such bonds to be issued in the future being hereinafter referred to as "bonds hereafter issued and on a parity with the bonds herein authorized") and there shall be paid into the Bond and Interest Sinking Fund Account on the first business day of each month a fractional amount of the principal becoming due on the next succeeding principal maturity date of all of said bonds authorized to be issued under the terms of this ordinance and including the principal to become due on all bonds as mav be hereafter issued and on a parity with the bonds herein authorized until there shall have been accumulated in the Bond and Interest Sinking Fund Account on or before the day preceding such current maturity date of interest or principal, or both, an amount sufficient to pay such principal or interest or botn. of all bonds issued hereunder and including the maturing principal or interest, or both, of all bonds hereafter issued and on a parity with the bonds herein authorized and maturing by their terms on such current maturitv date In computing the frac tional amount of the in terest and principal requirements of the bonds herein authorized and to he set aside each month in said Date of Registration REGISTRATION Name of Registered Holder Signature of Registrar Bond and Interest Sinking Fund Account for the payment thereof, the traction shall be ao com­ puted that sufficient funds will be set aside in said Account and be available for the prompt payment of such principal of and in­ terest on the revenue bonds herein authorized as the same will become due. All money in said Ac­ count shall be used only for the purpose of paying in­ terest -and principal on the bonds hereby authorized as the same shall become due and including principal and interest on all bonds hereafter issued and on a parity with the bonds herein authorized. At the time of delivery of the bonds there shall be deposited in said Bond and Interest Sinking Fund Account the sum of $20,000, such amount being equal to the interest estimated to accrue on said bonds during the estimated time necessary to complete the construction of the proposed system. (c) Beginning on May 1, 1980 there shallbe paid into the Depreciation Account on the first business day of each month after the required payments have been made into the ac­ counts above referred to, the sum of $70 each month until such Account aggregates the sum of $8,000 and thereafter no additional payments shall be made into said Account except that when any money is paid out of such A c c o u n t , m o n t h l y payments into such Ac­ count shall be resumed and continued until such Ac­ count has been restored to the aggregate amount of $8,000. The moneys in said Ac­ count shall be used to pay the cost of such replacements and repairs to the system as may be necessary from time to time for the continued effective and efficient operation of the system, except that the funds held in said Account to the ex­ tent necessary to prevent or remedy a default in the payment of the interest on or principal of any bonds of said Village which by their terms are payable from the income ana revenue of said system shall be used for that purpose and shall be transferred to the Bond and Interest Sinking Fund Account, and whenever such an amount is with­ drawn from said Account and so transferred to said Bond and Interest Sinking Fund Account, the amount so transferred shall be added to the amount to be next and thereafter paid into said Depreciation Account until full reim­ bursement to said Account has been made Each ex­ penditure to be made from the Depreciation Account to pay the cost of necessary replacements and repairs to the svstem. as above provided for. shall be made only after a consulting engineer employed for that purpose has certified that such expenditure is necessary to the continued effective and efficient operation of the system of said Village At the time of delivery of the bonds there shall be deposited in said Depreciation Account the sum of $1,750, such amount to be derived from advance connection fees (d> Beginning on May 1, 1960, there shall be paid into the Bond and Interest Reserve and Redemption Account on the first business day of each month after the required payments have been made into the accounts above referred to, the sum of $70 each month until such account aggregates the sum of $8,000 and thereafter no additional payments shall be made into said account except that when any money is paid out of such account monthly payments into such account shall be resumed and continued until such ac­ count has been restored to the aggregate amount of- $8,000 At the time of delivery of the bonds there shall be deposited in said Bond and Interest Reserve and Redemption Account the sum of $1,750, such amount to be derived from advance connection fees After all the required payments into the accounts hereinabove described have been made, including the payment of any deficiencies, and when there is on deposit in the Depreciation Account and in the Bond and Interest Reserve and Redemption Account the full maximum amounts required to be accumulated in each of said accounts, then all moneys remaining in the Sewerage Fund may be used for the purpose of calling and redeeming any outstanding bonds of tne Village which by their terms are payable from the income and revenues of the system as said bonds become redeemable according to their terms, or, such moneys may be used for the purpose ot constructing extensions and im­ provements to the system of said Village < e) The moneys in any of the accounts created by subparagraphs <c> and <d). as hereinabove created and set forth in this section, may by resolution adopted by the President and Board of Trustees of said Village be invested from time to time by the Treasurer of said village in interest bearing bonds or other direct and general obligations of the United States Government and maturing in not more than ten (10) years after the purchase date thereof and in certificates of deposit or time deposits constituting direct obligations of any bank as defined in the Illinois Banking Act to the extent such certificates or deposits are insured by the Federal Deposit Insurance Corporation, or its suc­ cessor, and mature in not more than ten (10) years after the purchase date thereof, and such securities shall be sold from time to time by said Treasurer pursuant to a resolution of the President and Board of Trustees of said Vilalse as funds may be needed for the purpose for which said Accounts have been created. All accured in­ terest received from any such securities shall be considered and treated as income and revenue of the system and be deposited as received in the "Sewerage Fund" of the Village. That money in each of the several Accounts above described shall be kept separate and apart from all other funds and moneys of the Village and shall be deposited in MeHenry State Bank, MeHenry, Illinois, which bank is located and doing business in the State of Illinois and was organized under the laws of the State of Illinois, and whose deposits are insured under the provisions of the Federal Deposit Insurance Act, or its successor Section 9 . That it is hereby covenanted and agreed that the revenues of the system are to be paid into the various special Accounts hereinabove established and created in the order in which said Accounts have been listed, and if within any period of time the revenues are insufficient to place the required amounts in any of said Accounts, the deficiencies shall be made up during the following period or periods after payments into all the accounts enjoying a prior claim of revenues have been made in full. Section 10. That while the bonds authorized hereunder or any of them remain out­ standing or unpaid, rates charged for the use and service of the system shall be sufficient at all times to pay the cost of operation and maintenance, to provide, establish and maintain the Accounts referred to and described in Section 8 of this ordinance, to pay the interest on and principal <of^ all bonds which by their terms are payable from the revenues of r. said system and authorized to be issued under the terms of this ordinance and including the principal of and interest on all bonds nereafter issued and on a parity with the bonds herein authorized and to carry out the covenants of this or­ dinance And there shall be charged against all users of said system, including the Village of Lakemoor, such rates and amounts for sewerage service as shall be adequate to meet the requirements of this Section Compensation for services rendered the Village of Lakemoor shall be charged against the said Village and payment for the same from the corporate funds shall be made monthly into the Sewerage Fund created by this ordinance in the same manner as other revenues are required to be deposited. No free service of the system shall be supplied the Village or to any other person, firm, organization or cor­ poration. public or private and to the extent permitted by law, said Village further covenants not to grant any competing franchise for the operation of such a system in said Village Section 11 That the Village of Lakemoor hereby covenants and agrees with the holders of said bonds hereby authorized that so long as such bonds or any of them remain out­ standing and unpaid, either as to principal or interest, that any holder of a bond or bonds issued hereunder may, either in law, or in equity, by suit, ac­ tion, mandamus or other proceedings, enforce or compel performance by the officials of said Village of all duties reauired by law and by this ordinance, including the making and collecting of suf­ ficient rates for services and segregating the revenues of said system and the application thereof to the respective Ac­ counts created by this or­ dinance and in the time and manner as herein provided Section 12. That it is hereby covenanted and agreed with the holder of the bonds herein authorized that said Village will not issue any parity bonds or other parity obligations of said Village payable Trom or in any way creating a charge upon the income and revenue to be derived from the operation of said system, except as herein provided A Said Village reserves the right to issue additional bonds from time to time for the sole purpose of paying the cost of the completion of the con­ struction of the system to be made in accordance with the plans and specifications referred to in tne preambles hereof, for which the $270,000 principal amount of bonds are authorized herein, and any such additional bonds shall share ratably and equally in the revenues of the system with the bonds authorized by this or­ dinance; provided, however, that the need of such financing shall be evidenced by a cer­ tificate of the independent consulting engineer in responsible charge of con­ structing said system (i) giving a reasonably detailed description of the work remaining to be completed and an estimate of the cost thereof and the time of completion thereof and (ii) stating in reasonably itemized detail all expenditures made from the proceeds of the $270,000 prin­ cipal amount of bonds authorized hereunder as to the amount and purpose; provided further, however, that while the government is the holder of any of the bonds herein authorized, written approval of such financing shall be obtained from tne government and evidence of such approval placed on file with the Village Clerk prior to the adoption of any proceedings authorizing the issuance of such additional bonds. B. Said Village further reserves the right to issue additional bonds for con­ struction of necessary im-*> provements, extensions, repairs and rehabilitations to the properties comprising said system to share ratable and equally in the revenues of said system only whenever all of the following conditions are met: 1. The net revenues derived from the operation of the system for the completed fiscal year immediately preceding the date of the adoption of any ordinance authorizing the issuance of additional Sewerage Revenue Bonds „ shall have been equal to at least 120 percent of the average annual principal and interest requirements for all succeeding fiscal years on all the Sewerage Revenue Bonds of tne Village payable from the revenues to be derived from the operation of the system then outstanding and the additional Sewerage Revenue Bonds then proposed to be issued, and all the payments required to be made by the Village into the * Depreciation Account, and the Bond and Interest Reserve and Redemption Account, shall have been made up to and including the date of the adoption of any such ordinance authorizing the issuance of additional Sewerage Revenue Bonds. That for the purpose of this Section, net revenues shall be defined as the annual gross revenues of the entire said system less the cost of the operation and maintenance or said system for such year and shall be certified to by an independent certified public accountant. 2. Any such additional Sewerage Revenue Bonds which may be issued in compliance with the provisions contained ^hereinabove b#, * payable as to priMtyal on * May 1 in each year in which principal falls due and shall be payable as to interest on November 1 and May 1 in each year in which interest falls due. In addition to the foregoing and not­ withstanding the foregoing restrictions, if, prior to the payment of the bonds hereby authorized, it shall be found desirable to refund part or all of the bonds hereby authorized and then outstanding, said bonds may be refunded not­ withstanding the restric­ tions as to the issuance of additional bonds set forth in this Section (with the consent of the holders thereof unless the bonds to be refunded are subject to redemption and provision for call and redemption thereof is duly made), and any refunding bonds so issued shall snare ratably and equally in the income and revenue of said system with the portion of the bonds hereby authorized which are not refunded: provided, further, that if anv such bonds are refunded in such manner that the interest rate is increased or the refunding bonds mature at a date earlier than the maturity of any of the bonds not refunded. then such refunding bonds shall not share ratably and equally in the income and revenue of said system with the portion of the bonds remaining outstanding authorized under this ordinance, except that if it is found necessary to refund any maturity of the bonds provided for by this ordinance at maturity or within one year of maturity thereof in order to prevent default, such refunding bonds may be issued to share ratably and equally in the income and revenue of said system with the portion of the bonds hereby authorized which are not refunded notwithstanding the fact that the interest rate is increased, provided, however, that such refunding bonds shall not mature at a date earlier than the maturity of any of said bonds not refunded and then outstanding Section 13 That the Village covenants and agrees with tne holders of said oonds hereby authorized that so long at the bonds or any of them remain outstanding and unpaid, either as to principal or interest: ( a ) T h a t t h e V i l l a g e w i l l maintain said svstem and all improvements and extensions thereto in continuous, rffertive and efficient operation, will operate the name ef ficiently and faithfully and punctually perform all duties with respect thereto required by the Con­ stitution and laws of the State of Illinois. (b) That the VUlaga will establish and mi -tain at all times reasonable charges and ratal for the use and service of said dsystem and provide for the collection thereof, and the segregation and application of the revenues ot said system in the manner provided by this ordinance and sufficient at all times to pay the cost of operation and maintenance, to pay the interest on and prin­ cipal of all revenue bonds of said Village which by their terms are payable from the revenues of said system, and to provide for the continuation and main­ tenance of the respective Accounts as declined in Section 8 of this ordinance, and from time to time make all needful and proper replacements thereto so that it may at all times be operated properly, ad­ vantageously, con­ tinuously, effectively and efficiently, and when any equipment or facilities shall have been worn out, destroyed or otherwise insufficent for proper use, it shall be promptly replaced or repaired so that the value and efficiency of the said system shall be at all times fully maintained. (c) That the Village will establish such rules and regulations for the control and operation of said system necessary for the efficient, economical and continuous operation thereof, and rates and charges shall be fixed and „ revised from time to time as may be necessary to produce funds sufficient for all the purposes herein provided until all of the bonds authorized by this ordinance have been paid in full, both as to principal and interest. (d) That the Village will maintain and keep proper books of records and ac- counts (separate from all other records and accounts of said Village) in which complete entries shall be made of all transactions relating to the said system, and hereby covenants that it will cause the books and accounts of said system to be audited by certified public accountants and within not more than sixty (60) days after the close of each annual fiscal period and will file with the original purchaser of said bonds complete operating income statements of said system in reasonable detail covering such annual period and will furnish upon written request not more than sixty (60) days after the close of each annual fiscal period copies of such operation and income statements to any holder of any of said bonds herein authorized and will permit any holder or holders or any purchaser of said bonds then outstanding to inspect at all reasonable times said system and all records and accounts and data relating thereto, and to furnish to the govern ment and to any holder or holders of any purchaser of said bonds then outstanding all data and information relating to said system which may be reasonably requested Each audit, in addition to whatever matters may be thought proper by the accountant to be included therein, shall without limiting the generality of the foregoing, include the following: ( 1 ) A s t a t e m e n t i n d e t a i l of the income and revenue and expenditures of the system for such fiscal year. ( 2 ) T h e a c c o u n t a n t ' s comment regarding the method in which the village has carried out tne requirements of this or­ dinance, and the ac­ c o u n t a n t ' s r e c o m ­ mendations for any changes or improvements in the financial operation of said system (3) A list of all the in­ surance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the ex­ piration date of the policy. ( 4 ) I n f o r m a t i o n c o n cerning the number of customers served by said system at the end of the fiscal year All expenses incurred in the making of such audit shall be regarded and paid as a maintenance and operation expense (e) That so long as any of the bonds authorized hereunder are outstanding the Village will not sell, lease, loan, mortgage or in any manner dispose of or encumber said system or any improvements and extensions thereto, except for the issuance of ad­ ditional bonds as provided for in Section 12 of this ordinance, until all of said bonds hereby authorized shall be paid in full, both principal and interest, or unless and until provisions shall have been made for the payment thereof, and that naid Village will take no action in relation to said system which would un­ favorably affect the security of the bonds herein authorized or the prompt payment of the principal and interest thereon < f > T h a t t h e V i l l a g e w i l l tarry and maintain all risk nsurance Including public liability insurance upon all of the properties forming a (Continued on page 11)