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0011 Water Works Revenue Bond 1951a. ORDINANCE NO. 11, AN ORDINANCE PROVIDING FOR THE ISSUANCE OF $700000.00 OF 'MATER WORKS SYSTEM REVENUE BONDS OF THE VILLAGE OF CHUBBUCK, BANNOCK COUNTY, IDAHO, WHICH BONDS SHALL BE PAYABLE ONLY OUT OF THE EARNINGS AND REVENUES OF SAID SYSTEM; PROVIDING FOR THE FORM OF SAID BONDS AND INTEREST COUPONS TO BE ATTACHED THERETO AND FOR THE PAYMENT AND REDEMPTION THEREOF; CREATING A SPECIAL FUND IN THE OFFICE OF THE VILLAGE TREASURER TO BE KNOWN AS "WATER WORKS SYSTEM REVENUE SPECIAL FUND OF 1951" AND PRESCRIBING THE FUNDS TO BE PLACED THEREIN AND WITHDRAWALS THEREFROM; CREATING A SPEC - IAL RESERVE ACCOUNT TO BE KEPT IN A DESIGNATED BANK AND PRESCRIB_ ING THE FUNDS TO BE PLACED THEREIN AND THE WITHDRAWALS THEREFROM; PRESCRIBING THE PURPOSES TO VVHI.CH THE PROCEEDS OF THE SALE OF SAID BONDS MAY BE APPLIED AND THE USE AND DISPOSITION THEREOF: PRESCRIBING THE USE AND DISPOSITION OF THE REVENUE OF THE SAID WATER -WORKS SYSTEM FOR WHICH SAID BONDS ARE TO BE ISSUED, INC- LUDING THE CREATION AND MAINTENANCE OF RESERVES; PROVIDING FOR THE TRANSFER FROM THE GENERAL FUND OF THE VILLAGE TO THE ACCOUNT OR ACCOUNTS OF THE WATER WORKS SYSTEM. REVENUE SPECIAL FUND OF MONEYS FOR FURNISHING THE MUNICIPALITY OR ANY OF ITS DEPARTMENTS, BOARDS OR AGENCIES WITH THE SERVICES, FACILITIES AND COMMODITIES OF SUCH WORKS; PROVIDING FOR THE OPERATION AND MAINTENANCE OF SUCH WORKS AND THE ESTABLISHMENT OF RATES FOR WATER AND SERVICES FURNISHED; PROVIDING FOR INSURANCE TO BE CARRIED ON SAID WATER WORKS SYSTEM AND THE USE AND DISPOSITION OF THE INSURANCE MONEYS; PROVIDING FOR THE INSPECTION OF ALL ACCOUNTS OF THE VILLAGE PER- TAINING TO THE SAID WATER FORKS SYSTEM, THE MAINTENANCE. AND OPERATION THEREOF AND AUDIT THEREOF; PROVIDING THE TERMS AND CONDITIONS UPON WHICH THE HOLDERS OF SAID BONDS OR A SPECIFIED PERCENTAGE THEREOF SHALL BE ENTITLED TO THE APPOINTMENT OF A RECEIVER AND PROVIDING THE POWERS AND DUTIES OF SUCH RECEIVER WHEN SO APPOINTED, AND PROVIDING SAID TERMS AND CONDITIONS SHALL BE A CONTRACT WITH THE HOLDERS.OF SAID BONDS AND FOR THE ENFORCE- MENT OF THE DUTIES OF THE M °tjNl`CIPALITY AND ITS GOVERNING BODY UNDER THE PROVISIONS OF CHAPTER 47, 1051 SESSION LAWS OF IDAHO AND THE PROVISIONS OF THIS ORDINANCE; PROVIDING FOR THE LIEN OF SAID BONDS; PROVIDING THE FUNDS FROM WHICH SAID BONDS SHALL BE PAID AND PROVIDING SAID BONDS SHALL BE PAYABLE SOLELY FROM THE REVENUE PLEDGED FOR THE PAYMENT THEREOF; PROVIDING FOR THE ISSUANCE OF INTERIM RECEIPTS OR CERTIFICATES AND THE FORMS AND PROVISIONS THEREOF AND PROVIDING FOR THE PUBLICATION OF AND EFFECTIVE DATE OF THIS ORDINANCE. WHEREAS, pursuant to the provisions of Chapter 47, 1951 Session Laws of Idaho, the Village of Chubbuck, Bannock.,County, Idaho, passed and adopted Ordinance Number Ten of said Village providing for the acquisition, construction and installation by said Village of :a water workd system for said Village, upon approval of the qualified voters at an election called therefor, and WHEREAS, at an election duly held on August 27, 1951, water works revenue bonds in the amount of X70,000.00, Mete authorized for the construction, installation and acquisition of such water works system, and WHEREAS, certain requirements must be complied with by the said Village prior to the issuance of said revenue bonds. NOW, THEREFORE, BE IT ORDAINED BY THE CHAIRMAN AND BOARD OF TRUSTEES OF THE VILLAGE OF CHUBBUCK, BANNOCK COUNTY, IDAHO: Section 1. That for the purpose of obtaining and providing sufficient funds for the acquisition of, construction and install- ation of said water works system, and in order to pay the costs of the issuance of said Revenue Bonds, all engineering, inspect- ion, fiscal and legal expenses, and interest, which.is estimated will accrue during the construction period and for six months thereafter on money borrowed, there shall be issued and sold by the Village of Chubbuck, Idaho, Revenue Bonds of said Village in the aggregate principal amount of 470,000.000 which is the est- imated costs and expense of all the foregoing, which said Bonds shall be dated November 1, 1951, or on such date agreeable to the purchaser, as may be fixed by the Chairman and Board of Trustees subsequent to the sale thereof, and shall bear interest at a rate of not more than four percentum (4 %) per annum, payable semi- annually after date of Bonds, and shall consist of not more than One Hundred Forty (140) Bonds of denominations of $500.00 each, numbered from one (1) upward consecutively to One Hundred Forty (140), shall run for a period of twenty years from date of issue, and shall be sold, executed and delivered in the same manner as pro- vided by the Municipal Bond Law of the State of Idaho for the sale of general obligation negotiable coupon bonds of municipalities, the first annual amortized principal payment being at the expiration of two years from and after date of said Bonds. Any balance from the sale of said Bonds, over and above the foregoing costs, will be deposited in the Water Works System Revenue Special Fund of 1951, hereinafter created by this Ordinance. Any and all of said Bonds maturing according to their terms on and after ten years from date of said Bonds may be retired and redeemed prior to their fixed dates of maturity on any interest payment date at par and accrued interest upon and after publication of a notice of the intention of the Village thus to redeem, at least once in a newspaper of general circulation in Bannock County, Idaho, to -wit, the Idaho State Journal, printed and published in Pocatello, Idaho, thirty days prior to the date of intended redemption, there being no newspaper published within said Village, and by mailing notice of said call at the same time to the purchaser of said Bonds, such redemption to be in the inverse order of the numbers of said Bonds, highest numbers first, and upon the date of such redemption interest upon said Bonds shall cease to accrue. .section 2. The construction, acquisition, improvement, custody, operation and maintenance of said Water Forks System, and the collection of revenues therefrom for the services rendered thereby, shall be under the supervision and control of the governing body of this municipality. Section 3. That the form of said Bonds and the interest coupons, which shall be attached thereto, and the Certificate of the Clerk and Treasurer of said Village, which shall be printed on the back of each Bond, shall be substantially in the following form, viz: (FORM OF BOND) No. $500.00 UNITED STATES OF AMERICA STATE OF IDAHO COUNTY OF BANNOCK VILLAGE OF CHUBBUCK VI'ATER WORKS SYSTEM REVENUE BOND OF 1951 KNOW ALL MEN BY THESE PRESENTS: That the Village of Chubbuck, Bannock County, Idaho, for value received hereby promises to pay to bearer on the first day of November, 19 , the principal sum of / FIVE HUNDRED DOLLARS (4500.00), with interest thereon from date hereof at the rate of i 1 � per centum (��) per annum, payable semi - annually on the first day of May and the first day of November in each year, upon presentation and surrender of this bond at its maturity, and upon the presentation and surrender of the annexed interest coupons as they severally become payable, both principal and interest of this bond being payable in lawful money of the United States of America at the office of the Treasurer of the Village of Chubbuck, Idaho, or at such Bank as may be designated by the purchaser of said bonds. This bond and the interest thereon are payable soleli from a Special Water Works System Fund named and known as the Water Works System Revenue Special Fund of 1951 ", created by Ordinance No. 11 of the Village of Chubbuck, providing for the monthly payment, commencing the month following the completion of the works, into said Special Water Works System Fund from the earnings and revenues of the Water Works System of said Village of Chubbuck of fixed amounts of the revenues of said Water Works System sufficient to pay the principal and interest of this bond and of the issue of bonds of which this is one, as the same become payable, and as provided in said Ordinance; and the Village. of Chubbuck hereby covenants and agrees with the holder of this bond, and each subsequent holder thereof, that it will pay, and cause to be paid, into said Fund after the completion of said Works from such revenues an amount sufficient to pay such principal and interest at maturity and as they accrue and become payable and as provided in said Ordinance; and will perform and keep all the covenants and provisions of said Ordinance No. 11 and Ordinance No. 10; that said Village shall not sell, lease, or in any manner dispose of, said Works, or as the same may be improved, bettered or extended hereafter, or any substantial part or unit thereof, until this bond and the bond issue of which it is one, together with interest thereon, shall be paid in full, unless and until provision shall have been made for the full payment of all of said bonds and interest; that said Village, until all of said bonds and the interest thereon shall have been fully paid, shall not reduce the rates required by it for water service from said Water Works System so that the gross revenues of said Vuater Works System (after subtrabting the cost of operation and maintenance thereof) shall be insufficient to permit the making of the payments of the fixed amounts into said Special Water Works System Fund as required by Ordinance No. 11 and as recited herein; that if at any time the gross revenues of said Water Works System, or as hereafter bettered, extended, added to and improved, shall not be sufficient to pay said costs of operation and maintenance and charges thereon by said Ordinance created in favor of the bonds authorized by said Ordinance, it, the said Village, shall increase its said rates to such rates and amounts as will be sufficient to provide for the payment of all such costs of operation and maintenance of said Works and of the principal and interest of the bonds authorized by said Ordinance; that said Village will establish, maintain and collect rates for said Water Works System for so long as any of the authorized bonds herein are outstanding and will make avail- able for the payment of the principal and interest of all such bonds as the same shall accrue, the amount required each year for the principal and interest payments due on all such outstanding bonds; that in order to preserve the priority of the said Special Water Works System Fund, the said Village shall not create, or Permit to be created, so long as any of said bonds shall be out- standing and unpaid, any indebtedness or charge whatsoever which shall be a charge against the revenues of said Water Works System superior to the charges created by said Ordinance No. 11; that any future charge or special fund indebtedness which may be created by said Village, to be payable out of the revenue of said Water Works System, shall constitute a charge and lien subject and junior to the charge and lien thereon created by said Ordinance. The Village of Chubbuck covenants and agrees that it will maintain at all times a Special Reserve Account equal to $2500.00, in addition to the Water Works System Revenue Special Fund of 1951. This bond is one of an issue of the dater Works System Revenue Bonds of 1951 of said Village, of like date, tenor and effect, except as to dates of maturity, aggregating Seventy Thousand Dollars in principal amount, numbered from One (1) to One Hundred Forty (140), both inclusive, of the denomination of §500.00 each, maturing in numerical order, lowest numbers first, on November first in each of the following years, in the following annually maturing amounts, viz: (Here will be set forth the annual maturities upon the sale of said bonds and the ascertainment of the rate, or rates, of interest to be borne by said bonds); Provided that Bonds Nos. 71 to 140, both inclusive, or any of them, shall be redeemable on any interest payment date prior to their dates of absolute maturity on and after ten years from date of said bonds, at the option of the Village of Chubbuck, in the inverse order of their numbering, highest numbers first, upon and after prior publication of a notice of the intention of the Village thus to redeem any of said bonds, at least once in a newspaper of general circulation in Bannock County, Idaho, to -wit, the Idaho State Journal, printed and published in Pocatello, Idaho, there being no newspaper published within said Village, thirty days prior to the date of intended redemption, and by mailing notice of said call at the same time to of ; and upon the date thus fixed for redemption, interest upon the bonds thuscalled for redemption shall cease to accrue. The foregoing bonds have been issued by the Village of Chubbuck, Idaho, for the purpose of acquiring funds to pay the cost and expense of the construction, acquisition and installation of said Water Works System as pro- vided in Ordinance No. 10 and Ordinance No. 11 of said Village and as authorized at an election held within said Village on August 27, 1951. This bond -__has been issued under the authority of and in strict compliance with the Constitution and laws of the State of Idaho and with Chapter 47 of the Session Laws of Idaho of 1951, and the Ordinances and Resolutions of said Village. It is hereby certified that all acts, conditions, and things required by the Constitution and laws of said State and by the Ordinances and Resolutions of said Village to happen, exist and to be done and performed precedent to and in the issuance of this bond have duly happened, have4xisted and do exist, and have been done and performed, and that this bond and the bond issue of which it is one are not affected by any constitutional or other municipal debt limitation. IN 'IdITNESS WHEREOF THE VILLAGE OF CHUBBUCK, BANNOCK COUNTY, IDAHO, has caused this bond to be signed in its corporate name, by its Chairman, countersigned by its Treasurer and attested by its Clerk under the seal of said Village, and the coupons hereto attached to be, signed by the Treasurer of said Village by his facsimile signature, which official, by the execution hereof, does adopt as and for his proper signature his facsimile signature appearing on each of said bonds, this first day of November, 1951. VILLAGE OF CHUBBUCK, BANNOCK COUNTY, IDAHO. (Do not sign) By Chairman ATTEST (Do not sign) (Form of Interest Coupon) No, 6 On the first day of (May) (November), 19 , the Village of Chubbuck, Idaho, will pay .to bearer at the office of the Treasurer of the Village of Chubbuck, in Chubbuck, Idaho, or at such Bank as may be designated by the purchaser of the Bond to which this Coupon is attached, Dollars ($ ) in lawful money of the United States of America solely from the "Water Works System Revenue Special Fund of 195111 of said Village created by Ordinance No. 11, passed and approved.Sept:ember A$, 1951, and solely from the earnings and revenues of the said,Water Works System, being the semi - annual interest then payable on its Water Works System Revenue Bond of 1951, dated November 1, 1951, Bond No. , Facsimile Signature) Treasurer of Village of Chubbuck, Idaho. (The following additional language will be printed upon the coupons of the bonds subject to prior redemption, viz: In the event of prior redemption of the annexed bond all unearned interest evidenced hereby as of the date of such prior redemption shall cease to be payable. CERTIFICATE OF CITY CLERK AND CITY TREASURER We, the undersigned Clerk and Treasurer of the Village of Chubbuck, Idaho, do hereby certify that the within bond has been duly registered in permanent record books kept in our respective offices for the purpose of such registration, in full compliance with the provisions of the Municipal Bond Law of the State of Idaho, and Chapter 47 of the Session_ Laws of the State of Idaho of 1951, and all other laws applicable thereto, such registration showing the number, date, amount of the bond, rate of interest thereon, date of maturity, place of payment and the number and denominations of the attached coupons; and the undersigned Treasurer does hereby certify that before the delivery of this bond he received the proper consideration therefor. (Do not sign) Clerk of the Village of Chubbuck, Bannock County, Idaho. (Do not sign) Treasurer of the Village of Chubbuck, Bannock County, Idaho. (End of Bond Form) Section 4. There shall be, and there is hereby created and established in the office of the Treasurer of the Village of Chubbuck, Idaho, a Special 'Water Works System Fund, which shall be known and described as the "`Mater Works System Revenue Special Fund of 1951" of the Village of Chubbuck, into which Fund for the purpose of paying the principal and interest of said bonds, according to their maturities, shall be paid monthly by said 5 Village, and the proper officers of said Village shall pay monthly, and this Board of Trustees, by this Ordinance does hereby promise and agree, and obligates and binds the Village of Chubbuck, to set aside and pay out of the gross earnings and revenues of said `Oiater Morks System (subject to the primary deduction therefrom of sums equal to the costs and expenses of operation and maintenance of such-Water Works System) a definite sum monthly in every month during the life of said bonds, commencing with November 1, 1951, or upon the month following the completion of the Water Works System, and until the full payment of said bonds and all ntei °est, equal in amount (in each such month in each year during said period of monthly payments) to one - twelfth of the aggregate amount of bond principal whicl -.will be payable during, and at the expiration of, each such year during the life of said bonds, and as spec- ifically set forth hereinbefore, plus one-twelfth (in each month) of the bond interest accruing and being payable within each such year. It is hereby made the mandatory official duty of the Treasurer of the Village of Chubbuck, Idaho, for the time being, to maintain said Special Water works System Fund continuously in his said office, and to pay, and to cause to be paid, into said Special Water Works System Fund out of the said -revenue of said Water Works System, the foregoing bonds, and to apply said moneys for the payment and retirement of said Water Works System Revenue Bonds according to their terms. The foregoing "Water Works System Revenue Special Fund of 1951" created hereby, and the funds paid therein, as required hereinbefore, shall be used solely for the purpose of the payment of the principal of said bonds authorized hereby as they mature and become payable, and for the payment of the interest thereon as the same accrues and becomes payable, as provided in the interest coupons which shall be attached to said bonds, without preference or priority of the interest upon c:ne bond over another bond maturing in any year, by reason of its numbering, priority of issuance, or otherwise. The Board of Trustees and the corporate authorities of the Village of Chubbuck hereby declare that in fixing the amounts to be paid into said Special Water Works System Fund, as aforesaid, they have exercised due regard to the cost of operation and maintenance of said municipal dater Works System and that no portion of said revenues nor charges has been previously pledged for any other indebtedness. Section 5. Said Village hereby covenants and agrees with the owners and holders of each of said bonds that the Village will establish and maintain and collect rates and charges for said Water Works System for as long as any of the $70,000.00 bonds authorized herein are outstanding, and will make available for the payment of the principal and interest of all of such bonds as the same shall accrue an amount equivalent to -the amount required each year for the principal and interest payments due on such outstanding bonds. The amount 'tavailable for the payment of the principal and interest of all the bonds as the same shall accrue to the extent necessary therefor" is hereby defined as the gross revenues of the said "later Works System less expenses of maintenance and operation. Section 6. There shall be, and there is hereby created and established by said Village, in addition to the "'Nater Works System Revenue Special Fund of 195111, a Special Reserve Account, and in addition to the sums above required, said Village shall set aside and pay into said Special Reserve Account, out of the gross revenues of said Water Works System, after the primary deductions therefrom have been made of sums equal to the costs and expenses of operation and maintenance of said dater corks System, and after the monthly payments into said Special Water Works System Fund have been made, as provided in Section 4 hereof, the sum of 450.00 per month each month, commencing with the month following the completion of said Water Works System, and monthly thereafter until said Special Reserve Account equals the sum of 12500.00. When the sum of X2500.00 has been deposited in said Reserve Account no further payments shall be made into said Special Reserve Account, Said Village further agrees that it will at all times maintain said s-um of §2500.00 in said Special Reserve Account. In the event of a deficiency in the said Special Water Works System Fund for the payment of maturing principal and interest amounts, such deficiency shall be made up from the Special Reserve Account and said Special Reserve Account shall be reimbursed out of the next available revenues arising from said Water Works System after making necessary provision for the required payments into the Special Sewer System Fund and costs and expenses of maintenance and operation. The foregoing funds deposited in the Special Reserve Account must be deposited in the First Security Bank of Idaho, N.A., Pocatello Branch, or invested in U. S. Government bonds maturing in not over five years. Section 7? It is the duty of the Village to transfer from its General Fund to the account,or accounts, of the Special dilater Works System Fund, a sum, or sums, of money for furnishing the municipality, or any of its departments, boards or agencies, with water and the services and facilities of such Water Works System. Section 8. The said Village hereby further covenants that it will immediately, by subsequent ordinance, establish an adequate system of rates, fees, tolls and charges to be charged for the water and services rendered from the said Water Works System, and that said rates shall be in an amount suffident to produce revenues to pay and discharge all of the obligations provided for in this Ordinance, and that said Village, from time to time, will amend and increase such rates so that the rates in effect will at all times be sufficient to raise the money nec- essary to discharge each and all of the obligations herein required to be made from the revenues obtained from the operation of said Water Works System. Section 9. That in addition to the covenants set forth in Ordinance No. 10 of this Village and in this Ordinance, the said Board of Trustees further covenants and agrees that none of the funds specifically pledged have heretofore been pledged for the payment of any special fund indebtedness whatsoever and that the revenues of said Water Works System will be sufficient in amount to fully pay the foregoing bonds hereby authorized in addition to all other charges thereon. Language expressing the terms or substance of this Section and the covenants contained in Ordinance No. 10 shall be set forth in the foregoing bonds in the form of, and as, a covenant and agreement of said Village with each and all of the owners and holders at any time of said bonds or any of them. Section 10. It is further resolved, covenanted and agreed by this municipality, that for the protection of said municipality and for the further security of said bonds, the municipality shall obtain and maintain at all times during the life of said bonds the following insurance: fire, explosion, earthquake, and use and occupancy (if the latter is available). That these policies shall be in an amount sufficient to protect said municipality and the holders of said bonds from any and all loss which may result to them during the life of said bonds and until the full payment thereof from any interruption of said Water Works System, or from any interruption in making the - 7. payments out of said facilities for the payment of said bonds and interest thereon. Said insurance policies shall be in such amounts and terms, and be in such insurance companies as in the judgment of this Village will be adequate for the reasonable protection of the foregoing bond issue. In the event of any loss of, or diminution in, and during the period of any loss or diminition in, the earnings of the foregoing Water Works System, insurance payments sufficient to adequately protect the bondholders will be paid into the mater (forks System revenue Special Fund of 1951. Section 11. A complete set of Books of Account of said Water Works System shall be kept in the office of the Treasurer of said Village and shall be open to inspection 'by the public at any time during office hours. The books of Account shall be audited annually by a Certified Public Accountant appointed by the Village of Chubbuck, Idaho. Section 12. Mien for any reason the Village of Chubbuck, or any of its duly authorized agents, have not deposited sufficient moneys into the Water Works System Revenue Special Fund of 1951, and there has been a default in the payment of the principal and interest of the bonds outstanding and payable, then, and in that event, one, or any number of the holders of the bonds, representing twenty -five per centum (25 %) of the outstanding bonds, are entitled to the appointment of a Receiver, which Receiver may enter and take possession of such Water works System, operate and maintain the same, prescribe rates, fees, tolls or charges and collect and receive and apply all revenue thereafter arising therefrom in the same manner as the Village of Chubbuck itself might do. Section 13. The said bonds herein authorized shall have a prior and paramount lien on the revenues of said Water Works System, for which said bonds have been issued, over and ahead of all bonds of any kind payable from said revenues, which may be subsequently issued, and over and ahead of any claims or obligations against said revenues subsequently incurred. All bonds of this issue shall be equally and ratably secured without priority by reason of number, date of bonds, of sale, or execution or of delivery, by a lien on said revenue in accordance with the provisions of Chapter 47, 1951 Session Laws.of Idaho, and the provisions of this Ordinance authorizing said bonds. Section 14. Pending preparation of the definite bonds, interim receipts or certificates in such form and with such provisions as the governing body may determine, may be issued. Said bonds and interim receipts or certificates shall be fully negotiable within the meaning of and for all the purposes of the Negotiable Instruments Law. Section 15. If any section or sub - section of this Ordinance is for any reason held to be unconstitutional, such decision shall not effect the validity of the remaining portions of this Ordinance. Section 16. This ordinance shall take effect and be in full force and effect from and after its passage, approval and due publication in one issue of the Idaho State Journal, a newspaper printed and published in Pocatello, Bannock County, Idaho, and having circulation in said Village, there being no newspaper published in said Village, said newspaper being hereby designated as the official newspaper for the Village in which this ordinance shall be published. Passed this �� day of September, 1951. F Approved this y?/Iolday of September, 1951. BOARD OF TRUSTEES OF THE VILLAGE OF CHUBBUCK M. ATTEST:, (SELkL) c' X44 Villa gfe Clerk. a