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HomeMy WebLinkAbout143 - 11/19/1985 - ISSUANCE OF SEWER REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 1985 IN THE AMOUNT OF $30,715,000 CERTIFIED RECORD OF PROCEEDINGS OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO RELATING TO AN ORDINANCE AUTHORIZING THE ISSUANCE OF ITS SEWER REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1985 DATED NOVEMBER 1 , 1985 IN THE AGGREGATE PRINCIPAL AMOUNT OF $30 , 715 , 000 TABLE OF CONTENTS (Not a part of this Ordinance) Page Section 1 . Definitions and Construction. . . . . . . . . . . . . . . . . . . 2 A. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 B. Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 2 . Necessity; Authority for Bonds . . . . . . . . . . . . . . . . . 10 A. Necessity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 B. Authority for Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 3 . The Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 A. Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 B . Bond Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 C. Bonds Equally Secured. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 D. Special Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Section 4 . Sale and Delivery of Bonds . . . . . . . . . . . . . . . . . . . . . 28 A. Purchaser ' s Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 B . Award of Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 C. Delivery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Section 5 . Funds and Accounts Adopted or Created by Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 A. Escrow Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 B. Capital Projects Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 C. Sewer Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 D. Operation and Maintenance Fund . . . . . . . . . . . . . . . . . . . . 39 E. Principal and Interest Fund. . . . . . . . . . . . . . . . . . . . . . . 39 F . Debt Service Reserve Fund. . . . . . . . . . . . . . . . . . . . . . . . . 40 G. Termination of Deposits; Use of Moneys in Principal and Interest Fund and Debt Service Reserve Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 H. Payment of Additional Subordinate Securities . . . . . . 42 I . Sewer Depreciation and Capital Improvements Fund . . 42 J. Use of Remaining Revenues . . . . . . . . . . . . . . . . . . . . . . . . . 42 K. Budget and Appropriation of Sums . . . . . . . . . . . . . . . . . . 43 Section 6 . General Administration of Funds . . . . . . . . . . . . . . . . 43 A. Places and Times of Deposits . . . . . . . . . . . . . . . . . . . . . . 43 B. Investment of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 C. No Liability for Losses Incurred in Performing Terms of Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 ( i) Page D. Character of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 E. Accelerated Payments Optional . . . . . . . . . . . . . . . . . . . . . 44 Section 7 . Priorities ; Liens; Issuance of Additional Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 A. First Lien on Pledged Revenues; Equality of Bonds . 44 B. Issuance of Additional Parity Securities . . . . . . . . . . 45 C. Certification of Revenues . . . . . . . . . . . . . . . . . . . . . . . . . 46 D. Subordinate Securities Permitted. . . . . . . . . . . . . . . . . . 46 E. Superior Securities Prohibited. . . . . . . . . . . . . . . . . . . . 47 F. Payment Dates of Additional Bonds . . . . . . . . . . . . . . . . . 47 G. Supplemental Ordinances . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Section 8 . Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 A. Rate Maintenance Covenant . . . . . . . . . . . . . . . . . . . . . . . . . 47 B. Collection of Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 C. Competent Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 D . Performance of Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 E. Costs of Bond Issue and of Performance. . . . . . . . . . . . 49 F. Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 G. Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 H. Conditions Precedent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 I . Efficient Operation and Maintenance; No Free Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 J. Records and Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 K. Rules, Regulations and Other Details . . . . . . . . . . . . . . 50 L. Payment of Governmental Charges . . . . . . . . . . . . . . . . . . . 50 M. Protection of Security. . . . . . . . . . . . . . . . . . . . . . . . 51 N. Accumulation of Interest Claims . . . . . . . . . . . . . . . . . . . 51 0. Prompt Payment of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 P. Use of Principal and Interest and Debt Service Reserve Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Q. Additional Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 R. Other Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 S . Disposal of Sewerage Facilities Prohibited. . . . . . . . 52 T. Surety Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 U. Arbitrage Covenant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 V. Disposal of Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 W. Loss from Condemnation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 X. Inspection of Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Y. Audits Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Z . Insurance and Reconstruction. . . . . . . . . . . . . . . . . . . . . . 53 AA. Completion of Project; Estimated Life of Project . . 54 Section 9 . Defeasance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 ( ii) Page Section 10 . Default Provisions and Remedies of Bond Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 A. Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 B . Remedies for Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 C. Rights and Privileges Cumulative. . . . . . . . . . . . . . . . . . 57 D . Duties Upon Default . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . 57 E. Evidence of Security Owners . . . . . . . . . . . . . . . . . . . . . . . 58 F. Warranty Upon Issuance of Bonds . . . . . . . . . . . . . . . . . . . 59 G. Immunities of Purchaser . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Section 11 . Amendment of Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . 59 A. Amendment of Ordinance Not Requiring Consent of Bond Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 B . Amendment of Ordinance Requiring Consent of BondOwners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 C. Time for and Consent to Amendment . . . . . . . . . . . . . . . . . 60 D . Unanimous Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 E. Exclusion of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 F. Notation on Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 G. Proof of Instruments and Bonds . . . . . . . . . . . . . . . . . . . . 62 Section 12 . Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 A. Character of Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 B. No Pledge of Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 C. Statute of Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 D. Delegated Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 E. Successors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 F. Rights and Immunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 G. Ratification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 H. Facsimile Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 I . Ordinance Irrepealable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 J. Repealer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 K. Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 ( iii) STATE OF COLORADO ) COUNTY OF LARIMER ) ss . CITY OF FORT COLLINS ) The Council of the City of Fort Collins , Colorado, held a regular meeting at Council Chambers , City Hall , 300 West LaPorte Avenue, Fort Collins , Colorado, on Tuesday, the 5th day of November , 1985 , at the hour of 6 : 30 p.m. The following persons were present : Council Members : Barbara S . Rutstein, Mayor Kelly Ohlson, Assistant Mayor E. John Clarke Larry Estrada Gerald C. Horak John B. Knezovich Ed Stoner Interim City Manager : Richard H. Shannon Finance Director : James H. Harmon City Clerk: Wanda M. Krajicek City Attorney: John H. Huisjen The following persons were absent : None Council Member Clarke introduced the following Ordinance, which was read by title, copies of the full Ordinance having been available in the office of the City Clerk at least forty-eight (48) hours prior to the time the Ordinance was introduced for each Council Member and for inspection and copying by the general public : -1- ORDINANCE NO. 143 , 1985 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT COLLINS, COLORADO, SEWER REVENUE REFUNDING AND IMPROVEMENT BONDS , SERIES 1985, DATED NOVEMBER 1 , 1985 , IN THE AGGREGATE PRINCIPAL AMOUNT OF $30 , 715 , 000 . BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, AS FOLLOWS : Section 1 . Definitions and Construction . A. Definitions . In this Ordinance the following terms have the following respective meanings unless the context hereof clearly requires otherwise : ( 1) Acquire or Acquisition : the design, construction, reconstruction, purchase, lease, gift , transfer , assignment , option to purchase, grant from the federal government or any public body or other person, endowment , bequest, devise, installation, condemnation, contract , or other acquirement or other provision, or any combination thereof , of facilities , other property, any project , or an interest therein, as authorized by the Act . (2) Act : part 4 of article 35 of title 31 , Colorado Revised Statutes , as amended. (3) Additional Parity Bonds : any revenue bonds of the City payable in whole or in part from Pledged Revenues , issued after the date hereof, pursuant to and in accordance with the provisions of Section 7B of this Ordinance and the Constitution and laws of the State, having a lien on the Pledged Revenues equal to or on a parity with the lien thereon of the Bonds . (4) Average Annual Debt Service Requirements : the aggregate of all Debt Service Requirements due on the Bonds or other given issue of Parity Securities for all Bond Years beginning with the Bond Year in which Debt Service Requirements of the Bonds or such Parity Securities are first payable and ending with the Bond Year in which the last of the Debt Service Requirements are payable divided by the number of such years . (5) Bond Year : for the purpose of this Ordinance, the twelve ( 12) )months commencing on the second day of December of any calendar year and ending on the first day of December of the next succeeding calendar year . (6) Bonds : those securities issued hereunder and designated as the "City of Fort Collins , Colorado, Sewer Revenue -2- Refunding and Improvement Bonds , Series 1985 , " dated November 1 , 1985, in the aggregate principal amount of $30 , 715 , 000 . (7) Capital Pr -3ects Fund: the special fund created by Ordinance No . 28, 1980 , of the City and referred to in Section 5B hereof . (8) City: the City of Fort Collins , Colorado . (9) Combined Average Annual Debt Service Requirements : the sum of the Average Annual Debt Service Requirements for all issues of Parity Securities for which the computation is being made. ( 10) Commercial Bank: a state or national bank or trust company which is a member of the Federal Deposit Insurance Corporation which is located within the State . ( 11) Comparable Bond Year : in connection with any Fiscal Year, the Bond Year which ends in such Fiscal Year . For example, for the Fiscal Year commencing on January 1 , 1986 , the Comparable Bond Year for the Bonds commences on December 2, 1985, and ends on December 1 , 1986 . ( 12) Cost of the Project : all or any part of the cost of Acquisition, Improvement and Equipment of all or any part of the Project to be financed with the proceeds of the Bonds , including, without limitation, all or any property, rights , easements, privileges , agreements , and franchises deemed by the City to be necessary or useful and convenient therefor or in connection therewith, interest or discount on the Bonds , costs of issuance of the Bonds , engineering and inspection costs and legal expenses, costs of financial , professional , and other estimates and advice, contingencies , any administrative, operating, and other expenses of the City prior to and during such Acquisition, Improvement and Equipment, and additionally during a period of not exceeding one year after the completion thereof, as may be estimated and determined by the City Council , and all such other expenses as may be necessary or incident to the financing, Acquisition, Improvement , Equipment , and completion of the Project or any part thereof , and the placing of the same in operation, provision of reserves for working capital , operation, maintenance, or replacement expenses , or for payment or security of principal of or interest on the Bonds during or after such Acquisition, Improvement or Equipment as the City may determine, and also reimbursements to the City or to any Person of any moneys theretofore expended for the purposes of the City or other public body or to the federal government of any moneys theretofore expended for or in connection with the Project . ( 13 ) Debt Service Requirements : the principal of and interest on the Bonds, Additional Parity Bonds and any other -3- securities payable from the Pledged Revenues and heretofore or hereafter issued, if any, or such part of such securities as may be designated, as such principal and interest become due . ( 14 ) Debt Service Reserve Fund : the special fund created by and designated in Ordinance No . 9 , 1975 , of the City as the "City of Fort Collins Sewer Refunding Revenue Bonds Reserve Fund" and referred to in Section 5F hereof . ( 15) Equip or Equipment : the furnishing of all necessary or desirable, related or appurtenant machinery and other facilities , or any combination thereof , appertaining to any property, project or interest therein, as authorized by the Act . ( 16) Escrow Agreement : the Escrow Agreement, dated as of November 1 , 1985 , between the City and the Escrow Bank . ( 17) Escrow Fund : the special fund created by and designated in Section 5A hereof as the "City of Fort Collins , Colorado, Sewer Revenue Refunding and Improvement Bonds , Series 1985, Escrow Fund . " ( 18) Escrow Bank : First Interstate Bank of Fort Collins , N.A. , Fort Collins , Colorado, or its successors . ( 19) Event of Default : any one of the events stated in Section 10 hereof . (20 ) Federal Securities : bills , certificates of indebted- ness, notes , or bonds which are direct obligations of, or the principal and interest of which obligations are unconditionally guaranteed by, the United States of America . (21) Fiscal Year : the twelve ( 12) months commencing on the first day of January of any calendar year and ending on the last day of December of such calendar year or such other twelve ( 12) month period as may from time to time be designated by the City Council or by State statute as the Fiscal Year of the City. (22) General Improvements : any Improvement to or of the Sewerage Facilities of the City, other than a Special Project . (23 ) Improve or Improvement : the addition, extension, enlargement, betterment , replacement or improvement or any combination thereof , of facilities , other property, any project , or any interest therein, as authorized by the Act , but not including reconstruction, replacement , repair or other renewal of existing facilities that does not increase the capacity of the Sewerage Facilities or improve the treatment technology. (24 ) Income : all income from rates , fees , tolls , and charges and tap fees or any combination thereof for the services furnished by, or the direct or indirect connection with, or the -4- use of the Sewerage Facilities , including, without limiting the generality of the foregoing, minimum charges , charges for the availability of service, disconnection fees , reconnection fees , and reasonable penalties for any delinquencies , except all sewer trunk line assessments and sewer main line assessments , all supplemental user fees payable pursuant to any contract between the City and any user of any Sewerage Facilities , and all income or other gain, if any, from any investment of Pledged Revenues and of the proceeds of securities payable from Pledged Revenues , unless the City Council otherwise provides by ordinance. (25) Net Pledged Revenues : all Income remaining after the deduction of Operation and Maintenance Expenses . (26) 1975 Bonds : those securities issued under Ordinance No. 9 , 1975, of the City, as amended by Ordinance No . 27 , 1975, and Ordinance No . 101 , 1982 , of the City and designated as the "City of Fort Collins , Colorado, Sewer Refunding Revenue Bonds , Series 1975 , " dated March 1 , 1975 , in the original aggregate principal amount of $3 , 155, 000 . (27) 1982 Bonds : those securities issued under Ordinance No . 101 , 1982 , of the City and designated as the "City of Fort Collins , Colorado, Sewer Revenue Bonds , Series 1982 , " dated October 1 , 1982, in the original aggregate principal amount of $2,200, 000 . (28) 1984 Bonds : those securities issued under Ordinance No . 158, 1984 , of the City and designated as the "City of Fort Collins, Colorado, Sewer Revenue Bonds , Series 1984 , dated November 1 , 1984 , in the original aggregate principal amount of $11 , 000 , 000 . (29) Operation and Maintenance Expenses : such reasonable and necessary current expenses of the City, paid or accrued, of operating, maintaining and repairing the Sewerage Facilities as may be determined by the City Council , and the term may include at the City Council ' s option, except as limited by contract or otherwise limited by law, without limiting the generality of the foregoing: (a) Engineering, auditing, legal and other overhead expenses of the City directly related and reasonably allocable to the administration, operation and maintenance of the Sewerage Facilities; (b) Insurance and surety bond premiums appertaining to the Sewerage Facilities ; (c) The reasonable charges of any paying agent , registrar , transfer agent or depository or escrow bank appertaining to the Sewerage Facilities or any bonds or other securities issued therefor; -5- (d) Payments to pension, retirement , health and hospitalization funds appertaining to the Sewerage Facilities ; (e) Any taxes , assessments , franchise fees or other charges or payments in lieu of the foregoing; ( f) Ordinary and current rentals of equipment or other property; (g) Contractual services , professional services , salaries , administrative expenses , and costs of labor appertaining to the Sewerage Facilities and the cost of materials and supplies used for current operation of the Sewerage Facilities ; (h) The costs incurred in the collection of all or any part of the Pledged Revenues; ( i) Any costs of utility services furnished to the Sewerage Facilities by the City or otherwise . "Operation and Maintenance Expenses" does not include: (a) Any allowance for depreciation; (b) Any costs of reconstruction, Improvement , extensions , or betterments; (c) Any accumulation of reserves for capital replacements; (d) Any reserves for operation, maintenance, or repair of the Sewerage Facilities ; (e) Any allowance for the redemption of any bonds or other securities , or the payment of any interest thereon; ( f) Any liabilities incurred in the Acquisition of any properties comprising the Project or any existing Sewerage Facilities or any combination thereof ; (g) Any other ground of legal liability not based on contract . (30) Operation and Maintenance Fund : the special fund created by and designated as such in Ordinance No . 101 , 1982 , and referred to in Section 5D hereof . (31) Ordinance : this Ordinance No . 143 1985, of the City, finally adopted by the City Council on November 19 , 1985 , which provides for the issuance and delivery of the Bonds . -6- (32) Outstanding: when used with reference to the Bonds , any Additional Parity Bonds or any other designated securities of the City and as of any particular date, all the Bonds , Additional Parity Bonds or any such other securities payable in whole or in part from the Pledged Revenues or otherwise pertaining to the Project or the Sewerage Facilities , as the case may be, in any manner theretofore and thereupon being executed and delivered, except the following: (a) Any Bond, Additional Parity Bond or other security cancelled by the City or on the City' s behalf , at or before such date; (b) Any Bond, Additional Parity Bond or other security held by or on behalf of the City; (c) Any Bond, Additional Parity Bond or other security of the City for the payment or the redemption of which moneys or Federal Securities sufficient to meet all of the payment requirements of the principal of , the interest on, and any premium due in connection with the redemption of such Bond, Additional Parity Bond or other security to the date of maturity or any Redemption Date thereof, shall have theretofore been deposited in escrow or in trust with a Trust Bank for that purpose, as provided in and required by Section 9 hereof ; and (d) Any lost , destroyed, or wrongfully taken Bond, Additional Parity Bond or other security of the City in lieu of or in substitution for which another bond or other security shall have been executed and delivered . (33) Owner : when used in conjunction with any Bond, or any other designated security, the holder of any bearer instrument or registered owner of any registered instrument . (34 ) Parity Securities : bonds or securities payable from the Pledged Revenues equally or on a parity with the Bonds . (35) Permitted Investments : any of the following obligations : (a) Bonds or other interest-bearing obligations of the United States of America; (b) Bonds or other interest-bearing obligations , the payment of the principal and interest of which is unconditionally guaranteed by the United States of America; (c) Repurchase agreements of any marketable security specified above where the market value of such security is at all times at least equal to the moneys involved and there -7- is a perfected assignment of and security interest in such security; and (d) Certificates of deposit in "eligible public depositories, " as defined by Colorado statutes , which are insured by FDIC or FSLIC or collateralized in the manner provided by Colorado statutes . (36) Person: not only a natural person, corporation, or other legal entity, but also two or more natural persons , corporations , or other legal entities acting jointly as a firm, partnership, unincorporated association, joint ventures or otherwise. (37) Pledged Revenues : all or a portion of the Income . The term indicates a source of revenues and does not necessarily indicate all or any portion or other part of such revenues in the absence of further qualification. (38) Principal and Interest Fund : the special fund created by and designated in Ordinance No . 9 , 1975 , of the City as the "City of Fort Collins Sewer Refunding Revenue Bonds , Series 1975, Bond Fund" and referred to in Section 5E hereof . (39) Prior Bonds : the 1975 Bonds, the 1982 Bonds , and the 1984 Bonds . (40) Project : that portion of the Sewerage Facilities for the Acquisition of which the Bonds are issued hereunder , whether such Acquisition is undertaken at one time or in stages . (41) Purchaser : Dillon, Read & Co . Inc . , Dallas , Texas , and its associates , if any. (42) Redemption Date: the date fixed for the redemption prior to maturity of any Bonds or other designated securities payable from the Pledged Revenues in any notice of prior redemption authorized by the City, or otherwise fixed and designated by the City. (43) Refunding Act : part 1 of article 56 of title 11 , Colorado Revised Statutes , as amended. (44) Security or securities : when used with reference to securities of the City, any bonds , certificates , notes , debentures, temporary bonds or other obligations of the City issued by the City, or any other evidence of the advancement of money to the City, as authorized by the Act or other applicable State law and approved by the City Council . (45) Sewer Depreciation and Capital Improvements Fund : the special fund created by the City charter and referred to in Section 5I hereof . -8- (46) Sewer Fund: the special fund created by Ordinance No . 67, 1974, of the City and referred to in Section 5C hereof . (47) Sewerage Facilities : any one or more of the various devices used in the collection, treatment , or disposition of sewage and industrial wastes of a liquid nature, including, without limitation, all inlets; collection, drainage, or disposal lines ; intercepting sewers; sewage disposal plants; outfall sewers; sewage lagoons ; all pumping, power , and other equipment and appurtenances; all extensions , improvements , remodeling, additions and alterations thereof ; any and all rights or interests for such sewerage facilities; and all other necessary, incidental , or appurtenant properties , equipment , and facilities relating to the foregoing and any such devices which may be Sewerage Facilities under the Act . (48) Special Project : any Improvement to or of the Sewerage Facilities of the City, which using engineering criteria constitutes a single identifiable "project , " and the estimated costs of which ( including costs of issuance of any Additional Parity Bonds or other securities issued therefor , interest on such Additional Parity Bonds or other securities payable from the proceeds thereof , and deposits to the Debt Service Reserve Fund) equal or exceed 100 of the value at cost of the existing Sewerage Facilities of the City. (49) State: the State of Colorado . (50) Subordinate Bonds or Subordinate Securities : bonds or securities payable from the Pledged Revenues having a lien thereon subordinate or junior to the lien thereon of the Bonds . (51) Trust Bank: a Commercial Bank which is authorized to exercise and is exercising trust powers . B. Construction . This Ordinance, except where the context by clear implication herein otherwise requires , shall be construed as follows : ( 1) Words in the singular include the plural , and words in the plural include the singular . (2) Words in the masculine gender include the feminine and the neuter , and when the sense so indicates words of the neuter gender refer to any gender . (3) Articles , sections , subsections , paragraphs and subparagraphs mentioned by number , letter , or otherwise, correspond to the respective articles , sections , subsections, paragraphs and subparagraphs of this Ordinance so numbered or otherwise so designated. -9- (4) The titles and headlines applied to articles , sections and subsections of this Ordinance are inserted only as a matter of convenience and ease in reference and in no way define or limit the scope or intent of any provisions of this Ordinance . ( 5) Any inconsistency between the provisions of this Ordinance and those of the Act or the Refunding Act is intended by the City Council . To the extent of any such inconsistency the provisions of this Ordinance shall be deemed made pursuant to the City charter and shall supersede to the extent permitted by law the conflicting provisions of the Act or the Refunding Act . Section 2 . Necessity; Authority for Bonds . A. Necessity. The City has need for and desires to Acquire the Project for the benefit of the public health of its inhabitants . The City has heretofore issued and sold the 1975 Bonds , of which $1 ,360 , 000 remain Outstanding, bearing the following numbers, maturing on the following dates in the following years in the following aggregate principal amounts , bearing interest at the following per annum interest rates , and being redeemable prior to maturity at the option of the City, in inverse numerical order , on June 1 , 1985 , an on any interest payment date thereafter , upon payment of par , accrued interest and premium of 3% of principal : Principal Per Annum Numbers Dates Years Amounts Interest Rates 360 to 384 June 1 1986 $125 , 000 7 . 00% 385 to 407 December 1 1986 115 , 000 7 . 00 407 to 437 June 1 1987 150 , 000 7 . 00 438 to 458 December 1 1987 105 , 000 7 . 00 459 to 488 June 1 1988 150 , 000 7 . 00 489 to 513 December 1 1988 125 , 000 7 . 00 514 to 543 June 1 1989 150 , 000 7 . 00 544 to 572 December 1 1989 145 , 000 7 . 00 573 to 602 June 1 1990 150 , 000 7 . 00 603 to 631 December 1 1990 145 , 000 7 . 00 The City has also heretofore issued and sold the 1982 Bonds , of which $1 ,950 , 000 remain Outstanding, bearing the following numbers, maturing on October 1 in the following years in the following aggregate principal amounts , bearing interest at the following per annum interest rates , and being redeemable prior to their respective maturity dates , at the option of the City, in whole or in part, in inverse numerical order , on October 1 , 1997, and on any interest payment date thereafter , at a price equal to the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date : -10- Principal Per Annum Numbers Years Amounts Interest Rates 51 to 75 1986 $125 , 000 12 . 00o 76 to 100 1987 125 , 000 10 . 00 101 to 125 1988 125 , 000 10 . 00 126 to 150 1989 125 , 000 10 . 00 151 to 175 1990 125, 000 10 . 00 176 to 200 1991 125 , 000 9 . 60 201 to 225 1992 125, 000 9 . 75 226 to 250 1993 125 , 000 9 . 90 251 to 275 1994 125 , 000 10 . 00 276 to 300 1995 125 , 000 10 . 15 301 to 320 1996 100 , 000 10 .30 321 to 340 1997 100 , 000 10 . 45 341 to 360 1998 100 , 000 10 . 60 361 to 380 1999 100 , 000 10 . 70 381 to 400 2000 100 , 000 10 . 80 401 to 420 2001 100 , 000 10 . 90 421 to 440 2002 100 , 000 11 . 00 The City has also heretofore issued and sold the 1984 Bonds , of which $11 , 000 , 000 remain Outstanding, maturing or becoming subject to mandatory sinking fund redemption on December 1 in the following years in the following aggregate principal amounts , bearing interest at the following per annum interest rates, and being redeemable prior to their respective maturity dates, at the option of the City, in whole or in part , in inverse order of maturity and by lot within a maturity, on December 1 , 1994 , and on any interest payment date thereafter , at a price equal to the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date plus a premium expressed as a percentage of the principal amount of each bond so redeemed, depending on the redemption date: -11- Principal Per Annum Years Amounts Interest Rates 1988 $175 , 000 7 . 75% 1989 190 , 000 8 . 00 1990 200 , 000 8 . 30 1991 220 , 000 8 . 60 1992 235 , 000 8 . 80 1993 255 , 000 9 . 00 1994 275 , 000 9 . 20 1995 300 , 000 9 . 40 1996 325 , 000 9 . 60 1997 360 , 000 10 . 20 1998 390 , 000 10 . 20 1999 430 , 000 10 . 20 2000 475 , 000 10 . 20 2001 520 , 000 10 . 20 2002 575 , 000 10 . 20 2003 630 , 000 10 . 20 2004 695 , 000 10 . 20 2005 770 , 000 10 . 30 2006 850 , 000 10 . 30 2007 940 , 000 10 . 30 2008 1 , 040 , 000 10 . 30 2009 1 , 150 , 000 10 . 30 The premiums payable upon prior redemption of the 1984 Bonds are as follows : Redemption Dates Premiums December 1 , 1994 and June 1 , 1995 2 . 5% December 1 , 1995 and June 1 , 1996 2 . 0 December 1 , 1996 and June 1 , 1997 1 . 5 December 1 , 1997 and June 1 , 1998 1 . 0 December 1 , 1998 and June 1 , 1999 0 . 5 December 1 , 1999 and Thereafter None The City wishes to refund, pay and discharge the Prior Bonds in order to reduce the net effective interest rate; reduce the total interest payable by issuing bonds at a lower net interest cost or having a lower net effective interest rate; reduce the total principal and interest payable thereon in any particular year or years or effect other economies; modify or eliminate restrictive contractual limitations appertaining to the incurring of additional obligations ; or any combination of the foregoing. B. Authority For Bonds . The City Council is authorized by article XX of the Colorado Constitution, the City charter , and the Act to issue bonds in anticipation of the collection of revenues of sewerage facilities to pay the cost thereof . The City Council has determined and hereby determines that all -12- limitations imposed by the Act upon the issuance of the Bonds have been duly and completely met and satisfied. The City Council is further authorized by article XX of the Colorado Constitution, the City charter and the Refunding Act to issue bonds in anticipation of the collection of revenues of sewerage facilities to refund, pay and discharge the Prior Bonds for the aforementioned purposes . The City Council has determined and hereby determines that the provisions and limitations of the Refunding Act and any other applicable law imposed on the issuance of the Bonds have been met . Section 3 . The Bonds . A. Authorization. The Bonds , payable as to all Debt Service Requirements solely out of Net Pledged Revenues, are hereby authorized to be issued pursuant to article XX of the Colorado Constitution, the City charter, the Act , the Refunding Act and the terms of this Ordinance, and the City pledges irrevocably (but not necessarily exclusively) the Net Pledged Revenues to the payment of the Debt Service Requirements of the Bonds, the proceeds of the Bonds to be used solely to defray the Cost of the Project and to refund, pay and discharge the Prior Bonds , B. Bond Details . ( 1) Generally. The Bonds shall be issued in fully registered form in denominations of $5, 000 or any integral multiple thereof , provided that no Bond shall be issued in any denomination larger than the aggregate principal amount maturing on the maturity date of such Bond and that no Bond shall be made payable on more than one maturity date . Pursuant to the recommendations of the Committee on Uniform Security Identification Procedures , CUSIP numbers may be printed on the Bonds . The Bonds shall mature on December 1 in each of the following years and principal amounts and shall bear interest from November 1 , 1985 , or the interest payment date to which interest has been paid next preceding their respective dates , whichever is later , to their respective maturity dates , except if redeemed prior thereto, at the following per annum interest rates : -13- Principal Per Annum Years Amounts Interest Rates 1986 $ 325 , 000 5 . 5000 1987 520 , 000 6 . 000 1988 885 , 000 6 . 500 1989 940 , 000 6 . 750 1990 960 , 000 7 . 000 1991 710 , 000 7 . 250 1992 740 , 000 7 . 500 1993 790 , 000 7 . 750 1994 825 , 000 8 . 000 1995 875 , 000 8 . 200 1996 1 , 000 , 000 8 . 400 1997 1 , 000 , 000 8 . 600 1998 1 , 000 , 000 8 . 700 1999 1 , 030 , 000 8 . 800 2005 8 , 660 , 000 9 . 200 2010 10 , 455 , 000 9 . 375 Said interest shall be payable on June 1 , 1986 , and semiannually thereafter on the 1st day of December and the 1st day of June of each year . If upon presentation at maturity the principal of any Bond is not paid as provided herein, interest shall continue thereon at the same interest rate until the principal is paid in full . The Debt Service Requirements of the Bonds shall be payable in lawful money of the United States of America, to the registered Owners of the Bonds by the Finance Director of the City, who is hereby designated the paying agent for the Bonds . The principal and the final installment of interest shall be payable to the registered Owner of each Bond upon presentation and surrender of the Bond at maturity or upon prior redemption. Except as hereinbefore and hereinafter provided, the interest shall be payable to the registered Owner of each Bond determined as of the close of business on the regular record date, which shall be the fifteenth day of the calendar month next preceding the interest payment date, irrespective of any transfer of ownership of the Bond subsequent to the regular record date and prior to such interest payment date, by check or draft mailed to such registered Owner at the address appearing on the registration books of the City maintained by the City Clerk, who is hereby designated the registrar for the Bonds . Any interest not paid when due and any interest accruing after maturity shall be payable to the registered Owner of each Bond entitled to receive such interest determined as of the close of business on the special record date, which shall be fixed by the paying agent for such purpose, irrespective of any transfer of ownership of the Bond subsequent to such special record date and prior to the date fixed by the City for the payment of such interest , by check or draft mailed as aforesaid . Notice of the special record date and of the date fixed for the payment of -14- such interest shall be given by sending a copy thereof by certified or registered first-class , postage prepaid mail , at least ten ( 10) days prior to the special record date, to the Purchaser and to the registered Owner of each Bond upon which interest will be paid determined as of the close of business on the day preceding such mailing at the address appearing on the registration books of the City. If the paying agent or registrar initially appointed hereunder shall resign, or if the City shall reasonably determine that said paying agent or registrar has become incapable of fulfilling his or her duties hereunder , the City may, upon notice mailed to each registered Owner of bonds at the address last shown on the registration books, appoint a successor paying agent or registrar , or both. Every such successor paying agent or registrar shall be a Commercial Bank . It shall not be required that the same institution serve as both paying agent and registrar hereunder , but the City shall have the right to have the same institution serve as both paying agent and registrar hereunder . (2) Redemption of Bonds Prior to Maturity. Bonds maturing in the years 1986 through 1995 shall not be subject to optional redemption prior to their respective maturity dates . Bonds maturing in the year 1996 and thereafter shall be subject to optional redemption prior to their respective maturity dates , in whole or in part in inverse order of maturity and by lot within a maturity, on December 1 , 1995 , and on any interest payment date thereafter , at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the Redemption Date. Bonds maturing in the year 2005 shall also be subject to mandatory sinking fund redemption prior to their maturity date, by lot, on the dates specified below at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the Redemption Date . Such Bonds shall be redeemed on December 1 in each of the following years in each of the following aggregate principal amounts : Years Principal Amounts 2000 $1 , 215 , 000 2001 1 ,300 , 000 2002 1 ,425, 000 2003 1 , 430, 000 2004 1 , 570 , 000 2005 1 , 720, 000 Bonds maturing in the year 2010 shall also be subject to mandatory sinking fund redemption prior to their maturity date, by lot, on the dates specified below at a price equal to the principal amount of each Bond so redeemed plus accrued interest -15- thereon to the Redemption Date . Such Bonds shall be redeemed on December 1 in each of the following years in each of the following aggregate principal amounts : Years Principal Amounts 2006 $1 , 885 , 000 2007 2 , 055 , 000 2008 2 , 265 , 000 2009 2 , 475 , 000 2010 1 , 775 , 000 The Bonds shall also be subject to extraordinary redemption prior to their respective maturity dates if the City determines that there is no longer a need for all or a portion of the Project and if the City has sufficient funds available to effect such redemption, in whole or in part by calling as nearly as practicable a pro rata share of the Bonds due on each maturity date by lot within such maturity, on December 1 , 1987, at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the Redemption Date . In the case of an extraordinary redemption in part , the amounts of the mandatory sinking fund installments due with respect to Bonds maturing in the years 2005 and 2010 shall be reduced as nearly as practicable on a pro rata basis . Bonds which are redeemable prior to their respective maturity dates may be redeemed in part if issued in denominations which are integral multiples of $5 , 000 . Such Bonds shall be treated as representing a corresponding number of separate Bonds in the denomination of $5 , 000 each. Any such Bond to be redeemed in part shall be surrendered for partial redemption in the manner hereinafter provided for transfers of ownership. Upon payment of the redemption price of any such Bond redeemed in part the registered Owner thereof shall receive a new Bond or Bonds of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond surrendered. Notice of redemption shall be given by the paying agent in the name of the City by sending a copy thereof by certified or registered first-class postage prepaid mail , at least thirty (30) days prior to the Redemption Date, to the Purchaser and to the registered Owner of each of the Bonds being redeemed determined as of the close of business on the day preceding the first mailing of such notice, at the address appearing on the registration books of the City maintained by the registrar . Such notice shall specify the number or numbers of the Bonds to be redeemed, whether in whole or in part , and the date fixed for redemption and shall further state that on the redemption date there will be due and payable upon each Bond or part thereof so to be redeemed the principal amount or part thereof plus accrued interest thereon to the redemption date and that from and after -16- such date interest will cease to accrue. Failure to mail any notice as aforesaid or any defect in any notice so mailed with respect to any Bond shall not affect the validity of the redemption proceedings with respect to any other Bond. Any Bonds redeemed prior to their respective maturity dates by call for prior redemption or otherwise shall not be reissued and shall be cancelled the same as Bonds paid at or after maturity. (3 ) Interest Rates . The maximum net effective interest rate authorized for the Bonds is 15% per annum, and the actual net effective interest rate for the Bonds is 9 . 194555% per annum. (4 ) Execution . The Bonds shall be executed by and on behalf of the City with the facsimile signature of the Mayor , shall bear a facsimile of the seal of the City, shall be attested with the facsimile signature of the City Clerk, and shall be countersigned with the manual signature of the Finance Director of the City. Should any officer whose manual or facsimile signature appears on the Bonds cease to be such officer before delivery of the Bonds to the Purchaser , such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes . (5) Registration, Transfer and Exchange of Bonds . Upon their execution and prior to their delivery the Bonds shall be registered for the purpose of payment of principal and interest in the office of the City Clerk, who is hereby designated as the transfer agent for the Bonds . Thereafter , the Bonds shall be transferable only upon the registration books of the City by the transfer agent at the request of the registered Owner thereof or his, her or its duly authorized attorney-in-fact or legal representative. The registrar or transfer agent shall accent a Bond for registration or transfer only if the registered Owner is to be an individual , a corporation, a partnership, or a trust . A Bond may be transferred upon surrender thereof together with a written instrument of transfer duly executed by the registered Owner or his, her or its duly authorized attorney-in-fact or legal representative with guaranty of ignature satisfactory to the transfer agent, containing written instructions as to the details of the transfer , along with the social security number or federal employer identification number of the transferee and, if the transferee is a trust, the names and social security numbers of the settlors and the beneficiaries of the trust . The transfer agent shall not be required to transfer ownership of any Bond during the fifteen ( 15) days prior to the first mailing of any notice of redemption or to transfer ownership of any Bond selected for redemption on or after the date of such mailing. The registered Owner of any Bond or Bonds may also exchange such Bond or Bonds for another Bond or Bonds of authorized denominations . Transfers and exchanges shall be made without charge, except that the transfer agent may require payment of a sum sufficient to defray any tax or other governmental charge that may hereafter be imposed in -17- connection with any transfer or exchange of Bonds . No transfer of any Bond shall be effective until entered on the registration books of the City maintained by the registrar . In the case of every transfer or exchange, the transfer agent shall deliver to the new registered Owner a new Bond or Bonds of the same aggregate principal amount , maturing in the same year , and bearing interest at the same per annum rate as the Bond or Bonds surrendered. Such Bond or Bonds shall be dated as of their date of execution by the Finance Director of the City. New Bonds delivered upon any transfer or exchange shall be valid obligations of the City, evidencing the same obligation as the Bonds surrendered, shall be secured by this Ordinance, and shall be entitled to all of the security and benefits hereof to the same extent as the Bonds surrendered . The City may deem and treat the person in whose name any Bond is last registered upon the books of the City as the absolute Owner thereof for the purpose of receiving payment of the principal of and interest on such Bond and for all other purposes , and all such payments so made to such person or upon his order shall be valid and effective to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid, and the City shall not be affected by any notice to the contrary. ( 6) Lost Bonds . If any Bond shall have been lost , destroyed or wrongfully taken, the City shall provide for the replacement thereof in the manner set forth and upon receipt of the evidence, indemnity bond and reimbursement for expenses provided in Ordinance No . 80 , 1984 , adopted by the City Council on July 17 , 1984 . (7) Recitals in Bonds . Each Bond shall recite in substance that the Bond is a special and limited obligation of the City payable solely out of and secured by an irrevocable (but not necessarily exclusive) pledge of the Net Pledged Revenues , that the Bond does not constitute a debt or an indebtedness of the City within the meaning of any constitutional , statutory or charter provision or limitation, that the Bond is not payable in whole or in part from the proceeds of general property taxes , and that the full faith and credit of the City is not pledged for the payment of the principal of or interest on the Bond. Each Bond shall further recite that it is issued under the authority of article XX of the Colorado Constitution, the City charter , the Act , the Refunding Act and this Ordinance. Such recital shall conclusively impart full compliance with all of the provisions of the Act and the Refunding Act , and all Bonds issued containing such recital shall be incontestable for any cause whatsoever after their delivery for value . (8) Form of Bonds . The Bonds shall be in substantially the following form: -18- [Form of Bond] (Text of Face) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS SEWER REVENUE REFUNDING AND IMPROVEMENT BOND SERIES 1985 No . R- $ Interest Maturity Original Rate Date Date CUSIP December 1 , November 1 , 1985 REGISTERED OWNER: PRINCIPAL SUM: The City of Fort Collins, in the County of Larimer and State of Colorado, for value received, hereby promises to pay to the Registered Owner (specified above) , or registered assigns , solely from the special funds provided therefor , as hereinafter set forth, the Principal Sum (specified above) , in lawful money of the United States of America, on the Maturity Date (specified above) , with interest thereon from November 1 , 1985 , or the interest payment date to which interest has been paid next preceding the date hereof , whichever is later , to the Maturity Date, except if redeemed prior thereto, at the per annum Interest Rate ( specified above) , payable semiannually on the 1st day of June and the 1st day of December of each year , commencing on June 1 , 1986 , or the first such date after the date hereof , whichever is later , in the manner provided herein. If upon presentation at maturity payment of the Principal Sum is not made as provided herein, interest continues at the Interest Rate until the Principal Sum is paid in full . Bonds of this issue maturing in the years 1986 through 1995 are not subject to optional redemption prior to their respective maturity dates . Bonds of this issue maturing in the year 1996 and thereafter are subject to optional redemption prior to their -19- respective maturity dates , in whole or in part , in inverse order of maturity and by lot within a maturity, on December 1 , 1995 , and on any interest payment date thereafter , at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the redemption date . Bonds of this issue maturing in the year 2005 are also subject to mandatory sinking fund redemption prior to their maturity date, by lot , on the dates specified below at a price equal to the principal amount of each Bond so redeemed plu— accrued interest thereon to the redemption date . Such Bonds are to be redeemed on December 1 in each of the following years in each of the following aggregate principal amounts : Years Principal Amounts 2000 $1 , 215 , 000 2001 1 ,300 , 000 2002 1 , 425 , 000 2003 1 , 430 , 000 2004 1 , 570 , 000 2005 1 , 720 , 000 Bonds of this issue maturing in the year 2010 are also subject to mandatory sinking fund redemption prior to their maturity date, by lot , on the dates specified below at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the redemption date . Such Bonds are to be redeemed on December 1 in each of the following years in each of the following aggregate principal amounts : Years Principal Amounts 2006 $1 , 885 , 000 2007 2 , 055 , 000 2008 2 , 265 , 000 2009 2 , 475 , 000 2010 1 , 775 , 000 The Bonds of this issue are also subject to extraordinary redemption prior to their respective maturity dates if the City determines that there is no longer a need for all or a portion of the financed facilities and if the City has sufficient funds available to effect such redemption, in whole or in part by calling as nearly as practicable a pro rata share of the Bonds due on each maturity date by lot within such maturity, on December 1 , 1987 , at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the redemption date . In the case of an extraordinary redemption in part, the amounts of the mandatory sinking fund installments due with respect to Bonds maturing in the years 2005 and 2010 are to be reduced as nearly as practicable on a pro rata basis . -20- Bonds of this issue which are redeemable prior to their respective maturity dates may be redeemed in part if issued in denominations which are integral multiples of $5 , 000 . In such case the Bond is to be surrendered in the manner provided for transfers of ownership . Upon payment of the redemption price the Registered Owner is to receive a new Bond or Bonds of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond surrendered. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF . This Bond is a special and limited obligation of the City payable solely out of and secured by an irrevocable (but not necessarily exclusive) pledge of the Net Pledged Revenues , as more specifically provided in the Ordinance. This Bond does not constitute a debt or an indebtedness of the City within the meaning of any constitutional , statutory -or City charter provision or limitation. This Bond is not payable in whole or in part from the proceeds of general property taxes , and the full faith and credit of the City is not pledged for the payment of the principal of or interest on this Bond. IN WITNESS WHEREOF, the City Council of the City of Fort Collins , Colorado, has caused this Bond to be executed in its name and on its behalf with the facsimile signature of the Mayor of the City, to be sealed with the facsimile seal of the City, to be signed and attested with the facsimile signature of the City Clerk of the City, and to be countersigned with the manual signature of the Finance Director of the City. CITY OF FORT COLLINS, COLORADO (FACSIMILE) By: (Facsimile Signature) ( SEAL ) Mayor ATTEST: (Facsimile Signature) City Clerk Countersigned: (Manual Signature) Finance Director DATED : -21- ABBREVIATIONS The following abbreviations , when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations . TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with the right of survivorship and not as tenants in common UNIF GIFT MIN ACT - Custodian (Cust ) (Minor ) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not on the above list . -22- (Text of Reverse) The principal of and interest on this Bond are payable to the Registered Owner by the Finance Director of the City, as paying agent . The principal and the final installment of interest are payable to the Registered Owner upon presentation and surrender of this Bond at maturity or upon prior redemption. Except as hereinbefore and hereinafter provided, the interest is payable to the Registered Owner determined as of the close of business on the regular record date, which is the fifteenth day of the calendar month next preceding the interes_- payment date, irrespective of any transfer of ownership hereof subsequent to the regular record date and prior to such interest payment date, by check or draft mailed to the Registered Owner at the address appearing on the registration books of the City maintained by the City Clerk, as registrar . Any interest hereon not paid when due and any interest hereon accruing after maturity is payable to the Registered Owner determined as of the close of business on the special record date, which is to be fixed by the paying agent for such purpose, irrespective of any transfer of ownership of this Bond subsequent to such special record date and prior to the date fixed by the paying agent for the payment of such interest , by check or draft mailed as aforesaid. Notice of the special record date and of the date fixed for the payment of such interest is to be given by sending a copy thereof by certified or registered first-class postage prepaid mail , at least ten ( 10 ) days prior to the special record date, to Dillon, Read & Co . Inc . , Dallas , Texas , and to the registered owner of each Bond upon which interest will be paid determined as of the close of business on the day preceding such mailing, at the address appearing on the registration books of the City. Notice of redemption of any Bonds of this issue is to be given by the paying agent in the name of the City by sending a copy of such notice by certified or registered first-class postage prepaid mail , at least thirty (30) days prior to the redemption date, to Dillon, Read & Co . Inc . , Dallas, Texas , and to the registered owner of each of the Bonds being redeemed determined as of the close of business on the day preceding the first mailing of such notice, at the address appearing on the registration books of the City. Such notice is to specify the number or numbers of the Bonds to be redeemed, whether in whole or in part , and the date fixed for redemption and shall further state that on the redemption date there will be due and payable upon each Bond or part thereof so to be redeemed the principal amount or part thereof plus accrued interest thereon to the redemption date and that from and after such date interest will cease to accrue . Failure to mail any notice as aforesaid or any defect in any notice so mailed with respect to any Bond shall not affect the validity of the redemption proceedings with respect to any other Bond. -23- Payment of the principal of and interest on this Bond is to be made solely from, and as security for such payment there are irrevocably (but not necessarily exclusively) pledged, pursuant to the ordinance authorizing the issuance of this Bond (the Ordinance) , two special funds thereby identified as the Principal and Interest Fund and the Debt Service Reserve Fund, into which funds the City has covenanted in the Ordinance to pay, respectively, from certain revenues derived from the operation and use of and otherwise pertaining to the Sewerage Facilities of the City (the Income) , after provision is made only for the payment of all necessary and reasonable current expenses of operating, maintaining and repairing the Sewerage Facilities ( such remaining revenues being the Net Pledged Revenues) , sums sufficient to pay when due the principal of and interest on the Bonds and any additional parity securities hereafter issued and payable from such revenues , and to accumulate and maintain a specified reserve for such purposes . In addition, the City may at its option augment such funds with any other moneys of the City legally available for expenditure for the purposes thereof as provided in the Ordinance. It is hereby recited, certified and warranted that for the payment of this Bond and of the interest hereon, the City has created and will maintain said special funds and will deposit therein, out of the Net Pledged Revenues , the amounts and revenues specified in the Ordinance and out of said special funds , as an irrevocable charge thereon , will pay this Bond and the interest hereon, in the manner provided by the Ordinance . The Bonds of this issue are equitably and ratably secured by a lien on the Net Pledged Revenues , and such Bonds constitute an irrevocable and first lien (but not necessarily an exclusive first lien) upon the Net Pledged Revenues . Bonds and other types of securities , in addition to the Bonds of this issue, subject to expressed conditions , may be issued and made payable from the Net Pledged Revenues having a lien thereon subordinate and junior to the lien of the Bonds of this issue or , subject to additional expressed conditions , having a lien thereon on a parity with the lien of such Bonds in accordance with the provisions of the Ordinance . The City covenants and agrees with the Registered Owner that it will keep and will perform all of the covenants of this Bond and of the Ordinance . This Bond is one of a series authorized and issued for the purpose of defraying the cost of acquiring certain Sewerage Facilities and refunding, paying and discharging certain valid and outstanding sewer revenue bonds of the City, under the authority of and in full conformity with the laws and the Constitution of the State of Colorado and the Charter of the City, and pursuant to the Ordinance duly adopted prior to the issuance of this Bond. This Bond is issued under the authority -24- of part 4 of article 35 of title 31 and part 1 of article 56 of title 11 , Colorado Revised Statutes , as amended. This recital conclusively imparts full compliance with all of the provisions of said statutes , and said statutes provide that all Bonds containing such recital shall be incontestable for any cause whatsoever after their delivery for value . Reference is hereby made to the Ordinance, and to any and all modifications and amendments thereof , for a description of the provisions , terms and conditions upon which the Bonds of this issue are issued and secured, including, without limitation, the nature and extent of the security for the Bonds , provisions with respect to the custody and application of the proceeds of the Bonds , the collection and disposition of the revenues and moneys charged with and pledged to the payment of the principal of and interest on the Bonds , the terms and conditions on which the Bonds are issued, a description of the special funds referred to above and the nature and extent of the security and pledge afforded thereby for the payment of the principal of and interest on the Bonds , and the manner of enforcement of said pledge, as well as the rights , duties , immunities and obligations of the City and the members of its Council and also the rights and remedies of the registered owners of the Bonds . To the extent and in the respects permitted by the Ordinance, the provisions of the Ordinance, or any instrument amendatory thereof or supplemental thereto, may be modified or amended by action of the City taken in the manner and subject to the conditions and exceptions provided in the Ordinance . The pledge of revenues and other obligations of the City under the Ordinance may be discharged at or prior to the maturity or prior redemption of the Bonds upon the making of provision for the payment of the Bonds on the terms and conditions set forth in the Ordinance . It is hereby recited, certified and warranted that all the requirements of law have been fully complied with by the proper officers of the City in the issuance of this Bond; that it is issued pursuant to and in strict conformity with the Constitution and all other laws of the State of Colorado, including the home rule charter of the City, and with the Ordinance; that this Bond does not contravene any constitutional , charter or statutory provision or limitation; and that this Bond and each of the other Bonds of the series of which this is one are issued under the authority of the Ordinance. This Bond is transferable only upon the registration books of the City by the City Clerk as transfer agent , at the request of the Registered Owner or his , her or its duly authorized attorney-in-fact or legal representative, upon surrender hereof together with a written instrument of transfer duly executed by -25- the Registered Owner or his , her or its duly authorized attorney-in-fact or legal representative with guaranty of signature satisfactory to the transfer agent , containing written instructions as to the details of the transfer , along with the social security number or federal employer identification number of the transferee and, if the transferee is a trust , the names and social security numbers of the settlors and beneficiaries of the trust . The transfer agent is not required to transfer ownership of this Bond during the fifteen ( 15) days prior to the first mailing of any notice of redemption or to transfer ownership of any Bond selected for redemption on or after the date of such mailing. The Registered Owner may also exchange this Bond for another Bond or Bonds of authorized denominations . Transfers and exchanges are to be made without charge, except that the transfer agent may require payment of a sum sufficient to defray any tax or other governmental charge that may hereafter be imposed in connection with any transfer or exchange of Bonds . No transfer of this Bond shall be effective until entered on the registration books of the City. In the case of every transfer or exchange, the transer agent is to deliver to the new registered owner a new Bond or Bonds of the same aggregate principal amount , maturing in the same year , and bearing interest at the same per annum rate as the Bond or Bonds surrendered. Such Bond or Bonds shall be dated as of their date of execution by the Finance Director of the City. The City may deem and treat the person in whose name this Bond is last registered upon the books of the City as the absolute owner hereof for the purpose of receiving payment of the principal of and interest on this Bond and for all other purposes , and all such payments so made to such person or upon his order shall be valid and effective to satisfy and discharge the liability of the City upon this Bond to the extent of the sum or sums so paid, and the City shall not be affected by any notice to the contrary. -26- (Assignment) ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (Name and Address of Assignee) the attached Bond and does hereby irrevocably constitute and appoint , or its successor , to transfer said Bond on the books kept for registration thereof . Dated: Signature guaranteed: (Bank, Trust Company or Firm) NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of the attached Bond in every particular without alteration or enlargement or any change whatever . [End of Form of Bond] -27- C. Bonds Equally Secured. The covenants and agreements herein set forth to be performed on behalf of the City shall be for the equal benefit, protection and security of the Owners of any and all of the Bonds , all of which, regardless of the time or times of their maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as otherwise expressly provided in or pursuant to this Ordinance . D. Special Obligations . All of the Bonds , as to all Debt Service Requirements thereof, shall be payable solely out of the Net Pledged Revenues , which Net Pledged Revenues are hereby so pledged for that purpose . The Owner or Owners of any of the Bonds may not look to the general fund or any other fund of the City for the payment of the Debt Service Requirements , except the special funds pledged therefor . The Bonds shall not constitute a debt or indebtedness of the City within the meaning of any constitutional , charter or statutory provision or limitation, and the Bonds shall not be considered or held to be general obligations of the City but shall constitute special and limited obligations of the City. The Bonds are not payable in whole or in part from the proceeds of general property taxes, and the full faith and credit of the City is not pledged for payment of the Bonds . Section 4 . Sale and Delivery of Bonds . A. _Purchaser ' s Proposal . The Purchaser has submitted a proposal for the purchase of the Bonds together with the disclosures and information required by the Refunding Act at a price equal to $30 , 112 , 986 plus accrued interest thereon from the date thereof to the delivery date thereof , and the Finance Director of the City has recommended that said proposal be accepted by the Council . B. Award of Contract . The contract for the purchase of the Bonds is hereby awarded to the Purchaser at the price specified in the Purchaser ' s proposal and upon the terms set forth in this Ordinance . The Finance Director of the City is hereby authorized to execute the contract of purchase on behalf of the City. C. Delivery. After the Bonds have been duly executed and registered as provided herein the Finance Director of the City shall cause the Bonds to be delivered to the Purchaser upon receipt of the agreed purchase price. Section 5 . Funds and Accounts Adopted or Created by Ordinance. The proceeds of the Bonds and the Pledged Revenues shall be deposited by the City in the funds described in this Section 5 , to be accounted for in the manner and priority set forth in this Section 5 . Neither the Purchaser nor any subsequent Owner of any Bonds shall be in any manner responsible -28- for the application or disposal by the City or by any of its officers , agents and employees of the moneys derived from the sale of the Bonds or of any other moneys designated in this Section 5 . The Pledged Revenues , and all moneys and securities paid or to be paid to or held or to be held in any fund or account hereunder , are hereby pledged to secure the payment of the Debt Service Requirements of the Bonds , subject to the provisions herein relating to the Escrow Fund and the Capital Projects Fund and subject to the application of the Pledged Revenues for the payment of Debt Service Requirements of Parity Securities ; and this pledge shall be valid and binding from and after the date of the first delivery of the Bonds , and the moneys , as received by the City and hereby pledged, shall immediately be subject to the lien of this pledge without any physical delivery thereof , any filing, or further act , and the lien of this pledge and the obligation to perform the contractual provisions hereby made shall have priority over any or all other obligations and liabilities of the City (except as herein otherwise expressly provided) , and the lien of this pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the City (except as herein otherwise expressly provided) , irrespective of whether such parties have notice thereof . A. Escrow Fund. The City shall deposit in a separate special fund hereby created and designated as the "City of Fort Collins , Colorado, Sewer Revenue Refunding and Improvement Bonds , Series 1985, Escrow Fund" forthwith upon receipt of the proceeds of the Bonds the sum of approximately $15 , 035 , 900 to be used only as provided in this Section 5A. The City shall apply said sum to the purchase of the Federal Securities in which the moneys in the Escrow Fund are to be invested as provided in the Escrow Agreement and in accordance with the proposal submitted by the Purchaser . The Escrow Fund shall be maintained by the City in an amount at the time of the deposit therein, and at all times subsequently, at least sufficient , together with the known minimum yield to be derived from the investment of the deposits therein or any part thereof in Federal Securities , to pay the principal of, interest on, and any premium due in connection with the redemption of the Prior Bonds as the same become due . Moneys shall be withdrawn by the Escrow Bank from the Escrow Fund in sufficient amounts and at times to permit the payment thereof in connection with the Prior Bonds at each payment date. Any moneys remaining in the Escrow Fund after provision has been made for the payment of the Prior Bonds may be applied to any lawful purpose of the City. If for any reason the amount in the Escrow Fund shall at any time be insufficient for the purposes hereinbefore set forth, the City shall forthwith from the first Pledged Revenues available therefor deposit therein such additional moneys as shall be necessary to permit the -29- payment in full of the principal of and interest on the Prior Bonds as herein provided . The Finance Director of the City is hereby authorized and directed to give forthwith notice of refunding of the 1975 Bonds . The notice of refunding of the 1975 Bonds shall be given by publication at least one time in a newspaper having general circulation in the City and by mailing a copy of the notice by registered, first class mail to Boettcher & Company, Inc . , Denver , Colorado . The notice of refunding of the 1975 Bonds shall be in substantially the following form: -30- [Form of Notice] NOTICE OF REFUNDING OF CITY OF FORT COLLINS , COLORADO SEWER REFUNDING REVENUE BONDS SERIES 1975 DATED MARCH 1 , 1975 - $3 , 155 , 000 NOTICE IS HEREBY GIVEN to the holders of all outstanding City of Fort Collins , Colorado, Sewer Refunding Revenue Bonds , Series 1975 , dated March 1 , 1975 , in the Original aggregate principal amount of $3 , 155, 000 (the Prior Bonds ) , that the City of Fort Collins , Colorado (the City) , has issued Sewer Revenue Refunding and Improvement Bonds , Series 1985 , dated November 1 , 1985 , in the aggregate principal amount of $30 , 715 , 000 , and deposited a portion of the proceeds thereof in escrow with First Interstate Bank of Fort Collins , N.A. , Fort Collins , Colorado, which proceeds have been invested in bills , certificates of indebtedness , notes or bonds which are direct obligations of , or the principal and interest of which obligations are unconditionally guaranteed by, the United States of America for the payment of the principal of and interest on the Prior Bonds as the same become due . According to a report pertaining to such escrow prepared by a firm of certified public accountants licensed to practice in Colorado, the escrow, including the known minimum yield from such investments , is fully sufficient at the time of the deposit and at all times subsequently, to pay the principal of and interest on the Prior Bonds as such payments become due . GIVEN BY ORDER OF THE COUNCIL this day of 1985 . CITY OF FORT COLLINS, COLORADO Finance Director [End of Form of Notice] -31- The City hereby exercises its option to redeem 1982 Bonds numbered 341 to 440 , maturing in the year 1998 and thereafter , prior to their respective maturity dates , on October 1 , 1997 , at the principal corporate trust offices of First Interstate Bank of Fort Collins , N.A. , Fort Collins , Colorado, at a price equal to the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date . The Finance Director of the City is hereby authorized and directed to give forthwith and again no later than September 1 , 1997 , notice of refunding and redemption of the 1982 Bonds . The notice of refunding and redemption of the 1982 Bonds shall be given by publication of such notice at least one ( 1 ) time by one ( 1 ) publication in The Coloradoan, Fort Collins , Colorado, if then in business and publishing, and if not , then in a newspaper of general circulation in the City and by sending a copy of such notice by certified or registered, first-class , postage prepaid mail to the holders of each of the bonds being redeemed, if the names and addresses of the holders and the numbers of the bonds are recorded with the City Clerk . The notice of refunding and redemption of the 1982 Bonds shall be in substantially the following form: -32- [Form of Notice] NOTICE OF REFUNDING AND REDEMPTION OF CITY OF FORT COLLINS , COLORADO SEWER REVENUE BONDS SERIES 1982 DATED OCTOBER 1 , 1982 - $2 , 200 , 000 NOTICE IS HEREBY GIVEN to the holders of all outstanding City of Fort Collins , Colorado , Sewer Revenue Bonds , Series 1982 , dated October 1 , 1982 , in the original aggregate principal amount of $2, 200 , 000 (the Prior Bonds) , that the City of Fort Collins , Colorado (the City) , has issued Sewer Revenue Refunding and Improvement Bonds , Series 1985 , dated November 1 , 1985 , in the aggregate principal amount of $30 , 715 , 000 , and deposited a portion of the proceeds thereof in escrow with First Interstate Bank of Fort Collins , N.A. , Fort Collins , Colorado, which proceeds have been invested in bills , certificates of indebtedness , notes or bonds which are direct obligations of , or the principal and interest of which obligations are unconditionally guaranteed by, the United States of America for the payment of the principal of and interest on the Prior Bonds as the same become due. According to a report pertaining to such escrow prepared by a firm of certified public accountants licensed to practice in Colorado, the escrow, including the known minimum vield from such investments , is fully sufficient at the time of t::e deposit and at all times subsequently, to pay the principal of and interest on the Prior Bonds as such payments become due . NOTICE IS FURTHER HEREBY GIVEN that the City has exercised its option to redeem the Prior Bonds numbered 341 through 440 , maturing in the year 1998 and thereafter , prior to their respective maturity dates , on October 1 , 1997 , at the principal corporate trust offices of First Interstate Bank of Fort Collins, N.A. , Fort Collins , Colorado, at a price equal to the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date. On the redemption date there will become and will be due and payable upon each bond so to be redeemed, at the principal corporate trust offices of First Interstate Bank of Fort Collins, N.A. , Fort Collins , Colorado , the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date and from and after the redemption date interest will cease to accrue . Each such bond will be redeemed on or after the redemption date upon presentation and surrender of the bond. -33- DATED this day of 19 CITY OF FORT COLLINS, COLORADO Finance Director [End of Form of Notice] -34- The City hereby exercises its option to redeem 1984 Bonds maturing in the years 2004 and 2009 , prior to their respective maturity dates , on December 1 , 1994 , at the principal corporate trust offices of First Interstate Bank of Fort Collins , N.A. , Fort Collins , Colorado, at a price equal to the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date plus a premium equal to two and one-half percent (2 . 5%) of the principal amount of each bond so redeemed . The Finance Director of the City is hereby authorized and directed to give forthwith and again no later than November 1 , 1994 , notice of refunding and redemption of the 1984 Bonds . The notice of refunding and redemption of the 1984 Bonds shall be given by sending a copy thereof by certified or registered, first-class , postage prepaid mail to Boettcher & Company, Inc . , Denver , Colorado, and to the registered owners of each of the bonds being redeemed determined on the close of business on the day preceding the first mailing of such notice at the addresses appearing on the registration books of the City. The notice of refunding and redemption of the 1984 Bonds shall be in substantially the following form: -35- [Form of Notice] NOTICE OF REFUNDING AND REDEMPTION OF CITY OF FORT COLLINS , COLORADO SEWER REVENUE BONDS SERIES 1984 DATED NOVEMBER 1 , 1984 - $11 , 000 , 000 NOTICE IS HEREBY GIVEN to the registered owners of all outstanding City of Fort Collins , Colorado, Sewer Revenue Bonds , Series 1984 , dated November 1 , 1984 , in the original aggregate principal amount of $11 , 000 , 000 (the Prior Bonds) , that the City of Fort Collins , Colorado (the City) , has issued Sewer Revenue Refunding and Improvement Bonds , Series 1985, dated November 1 , 1985, in the aggregate principal amount of $30 , 715, 000 , and deposited a portion of the proceeds thereof in escrow with First Interstate Bank of Fort Collins , N.A. , Fort Collins , Colorado, which proceeds have been invested in bills , certificates of indebtedness , notes or bonds which are direct obligations of , or the principal and interest of which obligations are unconditionally guaranteed by, the United States of America for the payment of the principal of and interest on the Prior Bonds as the same become due . According to a report pertaining to such escrow prepared by a firm of certified public accountants licensed to practice in Colorado, the escrow, including the known minimum yield from such investments , is fully sufficient at the time of the deposit and at all times subsequently, to pay the principal of and interest on the Prior Bonds as such payments become due . NOTICE IS FURTHER HEREBY GIVEN that the City has exercised its option to redeem the Prior Bonds numbered through maturing in the years 2004 and 2009 , prior to their respective maturity dates , on December 1 , 1994 , at the principal corporate trust offices of First Interstate Bank of Fort Collins , N.A. , Fort Collins, Colorado, at a price equal to the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date plus a premium equal to two and one-half percent (2 . 5%) of the principal amount of each bond so redeemed . On the redemption date there will become and will be due and payable upon each bond so to be redeemed, at the principal corporate trust offices of First Interstate Bank of Fort Collins, N.A. , Fort Collins , Colorado, the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date plus the applicable premium due and from and after the redemption date interest will cease to accrue. Each -36- such bond will be redeemed on or after the redemption date upon presentation and surrender of the bond . DATED this day of 19 CITY OF FORT COLLINS , COLORADO Finance Director [End of Form of Notice] -37- B. Capital Projects Fund. The proceeds of the Bonds , except the sums required in Sections 5A, 5E and 5F hereof to be deposited in the Escrow Fund, the Principal and Interest Fund and the Debt Service Reserve Fund, shall be deposited in the Capital Projects Fund and shall be maintained in a separate special account therein and used and withdrawn only as provided in this Section 5B. The proceeds of the Bonds so deposited in the Capital Projects Fund, except as herein otherwise expressly provided, shall be used and paid out from time to time solely for the purpose of paying the Cost of the Project and are pledged therefor . Any such proceeds remaining in the Capital Projects Fund after completion of the Acquisition of the Project shall be deposited in the Principal and Interest Fund and used for the purposes of the Principal and Interest Fund or shall be used to the extent feasible to call and redeem the Bonds in advance of maturity. The City shall use any proceeds of the Bonds credited to the Capital Projects Fund, without further order , to pay the Debt Service Requirements of the Bonds as the same become due whenever and to the extent moneys in the Principal and Interest Fund and the Debt Service Reserve Fund or moneys otherwise available therefor are insufficient for that purpose, unless such proceeds shall be needed to defray obligations accrued and to accrue under any contracts then existing and pertaining to the Project . Any moneys so used shall be restored to the Capital Projects Fund from the first Pledged Revenues thereafter received and not needed to meet the requirements provided in Sections 5E and 5F hereof . C. Sewer Fund. Except as otherwise provided herein, the entire Income, upon receipt thereof from time to time by the City, shall be set aside and credited immediately to the Sewer Fund. In addition, the City may at its option credit to the Sewer Fund any other moneys of the City legally available for expenditure for the purposes of the Sewer Fund as provided herein. The Sewer Fund shall be administered and the moneys on deposit therein shall be deposited and applied in the following order of priority: ( 1) First , to the Operation and Maintenance Fund to pay Operation and Maintenance Expenses in the manner set forth in Section 51); (2) Second, to the Principal and Interest Fund to pay the Debt Service Requirements of the Bonds , Additional Parity Bonds and any other additional Parity Securities then Outstanding in the manner set forth in Section 5E; (3) Third, to the Debt Service Reserve Fund, in the manner set forth in Section 5F; -38- (4) Fourth, to the payment of the Debt Service Requirements of Subordinate Bonds or other Subordinate Securities in accordance with Section 5H; (5) Fifth, to the Sewer Depreciation and Capital Improvements Fund, in the manner set forth in Section 5I ; and ( 6) Sixth, to be used in accordance with Section 5J . D. Operation and Maintenance Fund . As a first charge on the Sewer Fund, there shall be credited from time to time within each Fiscal Year , to the Operation and Maintenance Fund, moneys sufficient to pay the Operation and Maintenance Expenses of the Sewerage Facilities as they become due and payable, and thereupon the Operation and Maintenance Expenses shall be promptly paid. Any surplus remaining in the Operation and Maintenance Fund at the end of the Fiscal Year and not needed for Operation and Maintenance Expenses , shall be transferred to the Sewer Fund and used for the purposes thereof . E. Principal and Interest Fund . The City shall deposit in the Principal and Interest Fund, forthwith upon receipt of the proceeds of the Bonds , interest accrued thereon from their date to the date of delivery thereof to the Purchaser , to apply to the payment of interest first due on the Bonds . Subject to the payments required by Section 5D, from any moneys remaining in the Sewer Fund, there shall be credited to the Principal and Interest Fund the following : ( 1) Interest Payments . Monthly, commencing December 31 , 1985 , an amount equal to one-sixth of the next installment of interest on the Bonds due in the current Bond Year and such amounts for interest on any Additional Parity Bonds and any other Parity Securities then Outstanding as the ordinances authorizing the issuance thereof shall provide, to the extent that other funds are not on deposit therein and available therefor , so that there are moneys therein sufficient to pay such interest when due; and (2) Principal Payments_. Monthly, commencing December 31 , 1985 , an amount equal to one-twelfth of the next installment of principal on the Bonds due in the current Bond Year and such amounts for principal on any Additional Parity Bonds and any other Parity Securities then Outstanding as the ordinances authorizing the issuance thereof shall provide, to the extent that other funds are not on deposit therein and available therefor , so that there are moneys therein sufficient to pay such principal when due. -39- The moneys credited to the Principal and Interest Fund shall be used to pay the Debt Service Requirements of the Bonds , any Additional Parity Bonds and any other Parity Securities then Outstanding, promptly as such Debt Service Requirements become due, except as otherwise provided in Sections 5G and 9 hereof . The Principal and Interest Fund shall be maintained as a sinking fund for the mandatory redemption of Bonds maturing in the years 2005 and 2010 . Any mandatory sinking fund redemption shall be treated as an installment of principal for purposes of this Section 5E. F. Debt Service Reserve Fund. The City shall deposit in the Debt Service Reserve Fund, from moneys held in the Debt Service Reserve Fund for the Prior Bonds , on the date of issuance of the Bonds, the sum of approximately $1 , 930 , 000 , and from the proceeds of the Bonds , forthwith upon receipt thereof, the sum of approximately $3 , 085, 000 . Subject to the payments required by Sections 5D and 5E hereof, except as provided in Section 5G hereof, there shall be credited as hereinafter provided and from time to time to the Debt Service Reserve Fund moneys sufficient to accumulate in and maintain the Debt Service Reserve Fund at an amount at least equal to the Combined Average Annual Debt Service Requirements for all Outstanding Bonds , Additional Parity Bonds and other Parity Securities . No payment need be made into the Debt Service Reserve Fund so long as the moneys therein shall equal not less than said amount . In the event that the amount of the Debt Service Reserve Fund falls below the minimum amount required to be maintained therein, the City shall credit to the Debt Service Reserve Fund from the Net Pledged Revenues that sum of money needed to accumulate or reaccumulate the amount therein so that at all times the amount of the Debt Service Reserve Fund equals said minimum amount . The moneys required to be deposited in the Debt Service Reserve Fund shall be set aside, accumulated and, if necessary, reaccumulated from time to time, and maintained as a continuing reserve to be used, except as hereinafter provided in this Section 5F and Sections 5G and 9 hereof, only to prevent deficiencies in payment of the Debt Service Requirements of the Bonds, any Additional Parity Bonds and any other Parity Securities then Outstanding resulting from failure to deposit into the Principal and Interest Fund sufficient funds to pay such Debt Service Requirements as the same become due. If at any time the City shall for any reason fail to pay into the Principal and Interest Fund the full amount above stipulated, then an amount shall be paid into the Principal and Interest Fund at such time from the Debt Service Reserve Fund equal to the difference between that paid from the Sewer Fund and the full amount so stipulated. The money so used shall be replaced to the Debt Service Reserve Fund from the first moneys credited to the Sewer Fund thereafter received and not required to be otherwise applied by Sections 5D and 5E hereof . If Additional Bonds or other Parity Securities (other than the -40- Bonds) are Outstanding and the ordinances authorizing the issuance of those securities require the replacement of moneys in a reserve account therefor , then the moneys replaced in the Debt Service Reserve Fund shall be replaced on a pro rata basis based upon the principal amount of the then Outstanding Bonds and the total principal amount of the then Outstanding Additional Parity Bonds or other Parity Securities , including the Bonds , as moneys become available therefor . If at any time the City shall for any reason fail to pay into the Debt Service Reserve Fund the full amount stipulated herein from the moneys credited to the Sewer Fund, the difference between the amount paid and the amount so stipulated shall in a like manner be paid therein from the first moneys credited to the Sewer Fund thereafter received and not required to be applied otherwise by Sections 5D and 5E hereof . G. Termination of Deposits ; Use of Moneys in Principal and Interest Fund and Debt Service Reserve Fund. No payment need be made into the Principal and Interest Fund or the Debt Service Reserve Fund, or both, if the amount in the Principal and Interest Fund and the amount in the Debt Service Reserve Fund total a sum at least equal to the entire amount of the Outstanding Bonds and any Outstanding Additional Parity Bonds and Parity Securities , as to all Debt Service Requirements , to their respective maturities or to any Redemption Date or Redemption Dates on which the City shall have exercised or shall have obligated itself to exercise its option to redeem, prior to their respective maturity dates , any Bonds , any Additional Parity Bonds and any other Parity Securities , then Outstanding and thereafter maturing (provided that , solely for the purpose of this Section 5G, there shall be deemed to be a credit to the Debt Service Reserve Fund of moneys , Federal Securities and bank deposits , or any combination thereof , accounted for in any other fund or account of the City and restricted solely for the purpose of paying the Debt Service Requirements) , in which case moneys in the Principal and Interest Fund and the Debt Service Reserve Fund in an amount, except for any known interest or other gain to accrue from any investment or deposit of moneys pursuant to Section 6B hereof from the time of any such investment or deposit to the time or respective times the proceeds of any such investment or deposit shall be needed for such payment, at least equal to such Debt Service Requirements , shall be used together with any such gain from such investments and deposits solely to pay such Debt Service Requirements as the same become due; and any moneys in excess thereof in the Principal and Interest Fund and the Debt Service Reserve Fund and any other moneys derived from the Pledged Revenues or otherwise pertaining to the Sewerage Facilities may be used in any lawful manner determined by the City. The moneys in the Principal and Interest Fund and in the Debt Service Reserve Fund shall be used solely and only for the -41- purpose of paying the Debt Service Requirements of the Bonds , any Additional Parity Bonds and any other Parity Securities hereafter authorized and Outstanding from time to time; but any moneys at any time in excess of the minimum amount required to be maintained in the Debt Service Reserve Fund may be withdrawn therefrom, and transferred from time to time to the Sewer Fund and distributed in the same manner as other moneys in the Sewer Fund. H. Payment of Additional Subordinate Securities . Subsequent to fully providing for the payments required to be made by Sections 5A through 5F hereof for a given Bond Year, any moneys remaining in the Sewer Fund for such Bond Year may be used by the City for the payment of Debt Service Requirements of additional Subordinate Securities payable from the Pledged Revenues and hereafter authorized to be issued in accordance with this Ordinance and any other provisions herein supplemental thereto , including reasonable reserves for such Subordinate Securities , as the same become due; but the lien of such Subordinate Securities on the Pledged Revenues and the pledge thereof for the payment of such Subordinate Securities shall be subordinate to the lien and pledge of the Bonds, any Additional Parity Bonds and any other additional Parity Securities as herein provided. (Any Additional Parity Bonds or other additional Parity Securities , but not any Subordinate Bonds or Subordinate Securities, shall be payable from the Principal and Interest Fund and the Debt Service Reserve Fund pursuant to Sections 5E through 5G hereof . ) I . Sewer Depreciation and Capital Improvements Fund. Subject to the payments required by Sections 5D through 5H, there shall be deposited in the Sewer Depreciation and Capital Improvements Fund any moneys remaining in the Sewer Fund at the end of each Bond Year . The moneys in the Sewer Depreciation and Capital Improvements Fund shall be set aside, accumulated, and, if necessary, reaccumulated from time to time, and maintained for the purpose of paying the costs of required renewals , replacements , extraordinary repairs , extensions, improvements, enlargements, and betterments to the Sewerage Facilities . Moneys in excess of those required to be maintained in the Sewer Depreciation and Capital Improvements Fund may be withdrawn therefrom and transferred to the Sewer Fund and distributed in the manner provided in Section 5J . J. Use of Remaining Revenues . After the payments required to be made by Sections 5A through 5I hereof are made, at the end of any Bond Year , or whenever in any Bond Year there shall have been credited to the Principal and Interest Fund, the Debt Service Reserve Fund, and the Sewer Depreciation and Capital Improvements Fund all amounts required to be deposited in those special funds at that time, as herein provided, any remaining moneys credited to the Sewer Fund may be used for any one or any -42- combination of lawful purposes as the City may from time to time determine . K. Budget and Appropriation of Sums . The sums provided to make the payments specified in this Section 5 are hereby appropriated for said purposes , and said amounts for each year shall be included in the annual budget and the appropriation ordinance or measures to be adopted or passed by the City Council in each year respectively while any of the Bonds , either as to principal or interest , are Outstanding and unpaid. No provisions of any constitution, statute, ordinance, resolution, or other order or measure enacted after the issuance of the Bonds shall in any manner be construed as limiting or impairing the obligation of the City to keep and perform the covenants contained in this Ordinance so long as any of the Bonds remain Outstanding and unpaid. Nothing herein shall prohibit the City Council from appropriating other funds of the City legally available for this purpose to the Sewer Fund for the purposes thereof . Section 6 . General Administration of Funds . A. Places and Times of Deposits . Each of the special funds created or adopted in Section 5 hereof shall be maintained in a Commercial Bank kept separate and apart from all other accounts or funds of the City as trust accounts solely for the purposes herein designated therefor . For purposes of investment of moneys, nothing herein prevents the commingling of moneys accounted for in any two or more such accounts or funds pertaining to the Pledged Revenues . Such accounts or funds shall be continuously secured to the fullest extent required or permitted by the laws of the State for the securing of public funds and shall be irrevocable and not withdrawable by anyone for any purpose other than the respective designated purposes of such accounts or funds . Each periodic payment shall be credited to the proper account or fund not later than the date therefor herein designated, except that when any such date shall be a Saturday, a Sunday or a legal holiday, then such payment shall be made on or before the next preceding business day. B. Investment of Funds . Any moneys in any fund established in Section 5 hereof may be invested, reinvested or deposited only in Permitted Investments . Securities or obligations purchased as such an investment shall either be subject to redemption at any time at face value by the owner thereof at the option of such owner , or shall mature at such time or times as shall most nearly coincide with the expected need for moneys from the fund in question. Securities or obligations so purchased as an investment of moneys in any such fund shall be deemed at all times to be a part of the applicable fund; provided that the interest accruing on such investments and any profit realized therefrom shall be credited to the. Sewer Fund, and any loss resulting from such investments shall be -43- charged to the particular fund in question . The City shall present for redemption or sale on the prevailing market any securities or obligations so purchased as an investment of moneys in a given fund whenever it shall be necessary to do so in order to provide moneys to meet any required payment or transfer from such fund . The City shall not invest any moneys accounted for hereunder if any such investment would contravene the covenant concerning arbitrage in Section 8U hereof . C. No Liability for Losses Incurred in Performing Terms of Ordinance . Neither the City nor any officer of the City shall Se liable or responsible for any loss resulting from any investment or reinvestment made in accordance with this Ordinance . D. Character of Funds . The moneys in any fund herein authorized shall consist of lawful money of the United States or investments permitted by Section 6B hereof or both such money and such investments . Moneys deposited in a demand or time deposit account in or evidenced by a certificate of deposit of a Commercial Bank pursuant to Sections 6A and 6B hereof, appropriately secured according to the laws of the State, shall be deemed lawful money of the United States of America . E. Accelerated Payments Optional . Nothing contained herein prevents the accumulation in any fund herein designated of any monetary requirements at a faster rate than the rate or minimum rate, as the case may be, provided therefor , but no payment shall be so accelerated if such acceleration shall cause a default in the payment of any obligation of the City pertaining to the Pledged Revenues . Nothing herein contained requires in connection with the Pledged Revenues received in any Fiscal Year the accumulation in any fund or account for the payment in the Comparable Bond Year of Debt Service Requirements due in connection with any series of bonds or other securities payable from the Pledged Revenues and heretofore, herein or hereafter authorized, in excess of such Debt Service Requirements due in such Comparable Bond Year, or in excess of any reserves required to be accumulated and maintained therefor , and of any existing deficiencies , and payable from such fund or account, as the case may be, except as may be otherwise provided herein. Section 7 . Priorities; Liens; Issuance of Additional Bonds . A. First Lien on Pledged Revenues ; Equality of Bonds . Except as expressly provided in this Ordinance with respect to Additional Parity Bonds , Parity Securities and Subordinate Securities , the Pledged Revenues shall be and hereby are irrevocably pledged and set aside to pay the Debt Service Requirements -of the Bonds . -44- The Bonds constitute an irrevocable and first lien (but not necessarily an exclusive first lien) upon the Pledged Revenues . The Bonds , any Additional Parity Bonds and any other Parity Securities hereafter authorized to be issued and from time to time Outstanding are equitably and ratably secured by a lien on the Pledged Revenues and shall not be entitled to any priority one over the other in the application of the Pledged Revenues regardless of the time or times of the issuance thereof , it being the intention of the City Council that there shall be no priority among the Bonds , any Additional Parity Bonds and any other Parity Securities , regardless of the fact that they may be actually issued and delivered at different times . B. Issuanc_e of Additional Parity Securities . Nothing herein, subject to the limitations stated in Sections 7F and 7G hereof , prevents the issuance by the City of Additional Parity Bonds or other additional Parity Securities payable from the Pledged Revenues and constituting a lien on the Pledged Revenues on a parity with, but not prior or superior to, the lien thereon of the Bonds , or prevents the issuance of bonds or other securities refunding all or a part of the Bonds ; but before any such Additional Parity Bonds or other additional Parity Securities are authorized or actually issued (excluding ( i) any parity refunding securities refunding the Bonds , ( ii ) any Parity Securities refunding Additional Parity Bonds or additional Parity Securities) , the City shall have made all payments required by Section 5 hereof and shall satisfy the following provisions to the extent applicable : ( 1 ) Additional Parity Bonds for Special Projects Initial Series . The City may issue an initial series of Additional Parity Bonds to pay the costs of a Special Project upon compliance with the conditions and tests set forth in either (a) or (b) below: (a) As certified by the consulting engineer for the Special Project , the Net Pledged Revenues for any consecutive twelve-month period during the preceding 24 months must have been equal to at least 125% of the Combined Average Annual Debt Service Requirements of the Bonds then Outstanding, any Additional Parity Bonds then Outstanding, and the Additional Parity Bonds proposed to be issued plus the estimated Average Annual Debt Service Requirements of any Additional Parity Bonds expected to be needed to complete the Special Project . If any adjustment in rates , fees , tolls or charges or tap fees , or any combination thereof , for the direct or indirect connection with, or use of , the Sewerage Facilities is made by the City during such twelve-month period, the consulting engineer shall adjust the calculation of the Net Pledged Revenues to reflect the amount thereof that would have been -45- received if such adjustment had been in effect throughout such twelve-month period. (b) As certified by the consulting engineer for the Special Project , the Net Pledged Revnues for the then-current Fiscal Year and each succeeding Fiscal Year to and including the third Fiscal Year following the expected completion date of the Special Project must be expected to be 125% of the Combined Average Annual Debt Service Requirements of the Bonds then Outstanding, any Additional Parity Bonds then Outstanding, and the Additional Parity Bonds proposed to be issued plus the estimated Average Annual Debt Service Requirements of any Additional Parity Bonds expected to be needed to complete the Special Project . The consulting engineer may take into consideration ( i) any scheduled or projected changes in rates, fees , tolls or charges or tap fees , including those which are anticipated as necessary to meet the rate maintenance covenant in Section 8A hereof, or to meet any coverage requirement above such rate maintenance covenant as the City may determine to be necessary, ( ii ) investment income and increased amounts to be held in the special funds maintained for the payment and security of Bonds, and (iii) increases or decreases in operation and maintenance expenses . (2) Additional Parity Bonds for Special Projects Subsequent Series . The City may issue a subsequent series of Additional Parity Bonds to complete a Special Project initially financed with Additional Parity Bonds issued in compliance with ( 1) above without complying with the requirements of ( 1) above. (3) Additional Parity Bonds for General Improvements Initial or Subsequent Series . The City may issue an initial or subsequent series of Additional Parity Bonds to pay the costs of General Improvements upon compliance with ( 1 ) (a) above. C. Certification of Revenues . Where certifications of revenues are required by this Ordinance, the specified and required written certifications of the consulting engineer that revenues are sufficient to pay the required amounts shall be conclusively presumed to be accurate in determining the right of the City to authorize issue, sell and deliver Additional Parity Bonds or other additional Parity Securities . D. Subordinate Securities Permitted . Nothing herein, subject to the limitations stated in Sections 7F and 7G hereof, prevents the City from issuing Subordinate Securities for any lawful purpose. -46- E. Superior Securities Prohibited . Nothing herein permits the City to issue additional bonds or other additional securities or to enter into any other contract or obligation payable from the Pledged Revenues and having a lien thereon prior and superior to the lien thereon of the Bonds . F. Payment Dates of Additional Bonds . Anv Additional Parity Bonds or Subordinate Bonds or other additional Parity or Subordinate Securities ( including, without limitation, any funding or refunding securities) issued in compliance with the terms hereof may bear interest payable seminannually on June 1 and December 1 of each year , but the first interest payment date may be for interest accruing for any period not in excess in the aggregate of one year; and such additional securities shall mature on December 1 of each year during the term of the additional bonds or other additional securities . G. Supplemental Ordinances . Additional bonds or other additional securities payable from any Pledged Revenues shall be issued only after authorization thereof by ordinance, supplemental ordinance or other instrument of the City Council stating the purpose or purposes of the issuance of such additional securities, directing the application of the proceeds thereof to such purpose or purposes , directing the execution thereof , and fixing and determining the date, principal amount, maturity or maturities , designation and numbers thereof , the maximum rate or rates of interest to be borne thereby, any prior redemption privileges of the City with respect thereto, and other provisions thereof in accordance with this Ordinance . All additional securities shall bear such date, shall bear such numbers and series designation, letters or symbols prefixed to their numbers distinguishing them from other securities issued or to to be issued, shall be payable at such place or places , may be subject to redemption prior to maturity on such terms and conditions as may be provided, and shall bear interest at such rate or at such different or varying rates per annum, all as may be fixed by ordinance, instrument or other document of the City Council . Section 8 . Covenants . The City hereby particularly covenants and agrees with the Owners of the Bonds from time to time, and makes provisions which shall be a part of its contract with such Owners , which covenants and provisions shall be kept by the City continuously until all of the Bonds and the interest thereon, have been fully paid and discharged, to the effect and with the purpose that : A. Rate Maintenance Covenant , The City covenants that it will prescribe, revise, and collect rates , fees , tolls , and charges and tap fees or any combination thereof, which may be imposed by the City whether pursuant to the Act or otherwise, for the direct or indirect connection with, or the use of the -47- Sewerage Facilities, and reasonable penalties for any delinquencies, which shall produce Income sufficient, together with any other moneys legally available therefor and credited to the Sewer Fund, to make the payments and accumulations required by this Ordinance, and which shall produce Net Pledged Revenues sufficient, together with all other moneys legally available therefor and credited to the Sewer Fund after payment of Operation and Maintenance Expenses, to pay an amount at least equal to 125% of the Combined Average Annual Service Requirements for the Outstanding Bonds and every other issue of Outstanding Additional Parity Bonds or other Parity Securities plus any amounts required to meet then existing deficiencies pertaining to any account relating to the Pledged Revenues or any securities payable therefrom. In the event that such rates , fees, tolls , and charges and tap fees at any time should not be sufficient to make all of the payments and accumulations required by this Ordinance, the City Council will increase its rates , fees , tolls , and charges and tap fees to such extent as to insure the payments and accumulations required by the provisions of this Ordinance. B. Collection of Charges . The City shall cause all rates , fees , tolls, and charges and tap fees pertaining to the Sewerage Facilities to be billed promptly and collected as soon as reasonable, shall prescribe and enforce rules and regulations or impose contractual obligations for the payment thereof , to the end that the Pledged Revenues shall be adequate to meet the requirements of this Ordinance and any other ordinance or instrument supplemental thereto . The rates , fees, tolls , and charges and tap fees due shall be collected in any lawful manner . C. Competent Management . The City shall employ experienced and competent management personnel for each component of the Sewerage Facilities . If the City shall fail to pay the Debt Service Requirements of the Bonds promptly as the same fall due, or if the City shall fail to keep any of the covenants herein contained, and if such default shall continue for a period of sixty ( 60) days , or if the Net Pledged Revenues of the Sewerage Facilities in any Fiscal Year , together with other legally available revenue and money, should fail to equal at least the amount of the Debt Service Requirements of the Bonds, and other obligations ( including all reserves therefor specified in the authorizing proceedings, including but not limited to this Ordinance) payable from the Net Pledged Revenues, proceeds and income in the Comparable Bond Year, the City shall retain a firm of competent management Persons skilled in the operation of sewerage facilities to assist in the management of the Sewerage Facilities so long as such default continues or the said revenues, proceeds and income are less than the amount hereinabove designated. -48- D. Performance of Duties . The City, acting by and through its officers , or otherwise, shall faithfully and punctually perform, or cause to be performed, all duties with respect to the Pledged Revenues , the Sewerage Facilities and the Project required by the Constitution and laws of the State, and the ordinances , resolutions and contracts of the City, including, without limitation, the proper segregation of the proceeds of the Bonds and the Pledged Revenues and their application from time to time to the respective funds provided therefor . E. Costs of Bond Issue and of Performance . Except as otherwise specifically provided herein, all costs and expenses incurred in connection with the issuance of the Bonds , payment of the Debt Service Requirements , or with the City' s performance of or compliance with any covenant or agreement contained in this Ordinance, shall be paid exclusively (but only from the appropriate special fund in the manner authorized herein) from the proceeds of the Bonds , or from the Pledged Revenues , or from other legally available moneys , and in no event shall any of such costs or expenses be required to be paid out of or charged to the general funds of the City. F. Contractual Obligations . The City will perform all contractual obligations undertaken by it under the contract with the Purchaser as described in Section 4B hereof and any other agreements relating to the Bonds , the Pledged Revenues , the Sewerage Facilities or the Project . G. Further Assurances . At any and all times the City shall , so far as it may be authorized by law, pass , make, do execute, acknowledge, deliver , and file or record all and every such further instruments , acts, deeds , conveyances , assignments , transfers , other documents, and assurances as may be necessary or desirable for the better assuring, conveying, granting, assigning and confirming all and singular the rights , the Pledged Revenues and other funds and accounts hereby pledged or assigned, or intended so to be, or which the City may hereafter become bound to pledge or assign, or as may be reasonable and required to carry out the purposes of this Ordinance . The City, acting by and through its officers , or otherwise, shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Pledged Revenues and other funds and accounts pledged hereunder and all the rights of every Owner of any of the Bonds against all claims and demands of all Persons whomsoever . H. Conditions Precedent . Upon the date of issuance of any of the Bonds, all conditions , acts and things required by the Constitution or laws of the United States , the Constitution or laws of the State, the home rule charter of the City, and this Ordinance, to exist , to have happened, and to have been performed precedent to or in the issuance of the Bonds shall exist, have happened and have been performed, and the Bonds, -49- together with all other obligations of the City, shall not contravene any debt or other limitation prescribed by the Constitution or laws of the United States or the Constitution or laws of the State or the home rule charter of the City. I . _Efficient Operation and Maintenance; No Free Service. The City shall at all times operate the Sewerage Facilities properly and in a sound and economical manner . The City shall maintain, preserve and keep the Sewerage Facilities properly or cause the same so to be maintained, preserved, and kept, with the appurtenances and every part and parcel thereof in good repair, working order and condition, and shall from time to time make or cause to be made all necessary and proper repairs , replacements and renewals so that at all times the maintenance of the Sewerage Facilities may be properly and advantageously conducted. All salaries, fees , wages and other compensation paid by the City in connection with the repair , maintenance and operation of the Sewerage Facilities shall be fair and reasonable. The City shall supply no free service to any Person. If the City shall use the Sewerage Facilities as a customer , it shall pay a fair and reasonable amount for such service. In no event shall the City pay a greater amount than would be charged a private Person for the same amount of service. The City shall include in its annual budgets and appropriation measures , amounts sufficient to pay for service so furnished. J. Records and Accounts . The City will keep proper books of record and account, separate and apart from all other records and accounts , showing complete and correct entries of all transactions relating to the funds referred to herein. K. Rules, Regulations and Other Details . The City, acting by and through its officers, shall establish and enforce reasonable rules and regulations governing the construction, operation, care, repair , maintenance, management, control , use and services of the Sewerage Facilities . The City shall observe and perform all of the terms and conditions contained in this Ordinance and shall comply with all valid acts , rules , regulations , orders and directives of any legislative, executive, administrative or judicial body applicable to the Sewerage Facilities , the Project or the City. L . Payment of Governmental Charges . The City shall pay or cause to Be paid all taxes and assessments or other municipal or governmental charges , if any, lawfully levied or assessed upon or in respect of the Sewerage Facilities , the Project , or upon any part thereof, or upon any portion of the Pledged Revenues , when the same shall become due, and shall duly observe and comply with all valid requirements of any municipal or governmental authority relative to the Sewerage Facilities , the Project , or any part thereof, except for any period during which -50- the same are being contested in good faith by proper legal proceedings . The City shall not create or suffer to be created any lien or charge upon the Sewerage Facilities , the Project , or any part thereof , or upon the Pledged Revenues , except the pledge and lien created by this Ordinance for the payment of the Debt Service Requirements due in connection with the Bonds , and except as herein otherwise permitted. The City shall pay or cause to be discharged or shall make adequate provision to satisfy and to discharge, within ninety (90 ) days after the same shall become payable, all lawful claims and demands for labor , materials , supplies or other objects which, if unpaid, might by law become a lien upon the Sewerage Facilities , the Project or any part thereof , or the Pledged Revenues , but nothing herein requires the City to pay or to cause to be discharged or to make provision for any such tax, assessment , lien or charge, so long as the validity thereof is contested in good faith and by appropriate legal proceedings . M. Protection of Security. The City, its officers , agents and employees , shall not take any action in such manner or to such extent as might prejudice the security for the payment of the Debt Service Requirements of the Bonds and any other securities payable from the Pledged Revenues according to the terms thereof . No contract shall be entered into nor any other action taken by which the rights of any Owner of any Bonds or other security payable from Pledged Revenues might be prejudicially and materially impaired or diminished . N. Accumulation of Interest_ Claims . In order to prevent any accumulation of claims for interest after maturity, the City shall not directly or indirectly extend or assent to the extension of the time for the payment of any claim for interest on any of the Bonds or any other securities payable from Pledged Revenues; and the City shall not directly or indirectly be a party to or approve any arrangements for any such extension or for the purpose of keeping alive any of such claims for interest . If the time for the payment of any such installment of interest is extended in contravention of the foregoing provisions , such installment or installments of interest after such extension or arrangement shall not be entitled in case of default hereunder to the benefit or the security of this Ordinance, except upon the prior payment in full of the principal of all of the Bonds and any such securities the payment of which has not been extended . 0. Prompt Payment of Bonds . The City shall promptly pay the Debt Service Requirements of every Bond at the places , on the dates , and in the manner specified herein and in the Bonds according to the true intent and meaning hereof . P. Use of Principal and Interest and Debt Service Reserve Funds . The Principal and Interest Fund and the Debt Service Reserve Fund shall be used solely and only, and the moneys -51- credited to such accounts are hereby pledged, for the purpose of paying the Debt Service Requirements of the Bonds, Additional Parity Bonds and any other Parity Securities to their respective maturities or any Redemption Date or Redemption Dates on which the City is obligated to redeem Bonds , subject to Section 9 hereof . Q. Additional Securities . The City shall not hereafter issue any bonds or securities relating to the Sewerage Facilities or the Project and payable from Pledged Revenues, other than the Bonds , without compliance with the requirements with respect to the issuance of Additional Parity Bonds or other securities set forth herein to the extent applicable. R. Other Liens . Other than as provided herein, there are no liens or encumbraces of any nature whatsoever on or against the Sewerage Facilities , the Project or any part thereof, or on or against the Pledged Revenues . S . Disposal of Sewerage Facilities Prohibited. Subject to Section 8V hereof, except for the use of the Sewerage Facilities and services pertaining thereto in the normal course of business , neither all nor a substantial part of the Sewerage Facilities shall be sold, mortgaged, pledged, encumbered, alienated or otherwise disposed of , until all of the Bonds have been paid in full , as to all Debt Service Requirements , or unless provision has been made therefor, or until the Bonds have otherwise been redeemed, including, without limitation, the termination of the pledge as herein authorized. Subject to Section 8V hereof, the City shall not dispose of its title to the Sewerage Facilities or to any useful part thereof, including any property necessary to the operation and use of the Sewerage Facilities and the lands and interests in lands comprising the Sewerage Facilities . T. Surety Bonds . Each official or other person having custody of any Pledged Revenues or responsible for their handling, shall be fully bonded at all times, which bond shall be conditioned upon the proper application of said moneys . The cost of each such bond shall be considered an Operation and Maintenance Expense, unless otherwise provided by law. U. Arbitrage . The City shall make no investment or other use of the proceeds of the Bonds , which, if such investment or other use had been reasonably expected on the date the Bonds are issued, would have caused the Bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954 , as amended, and the regulations thereunder . V. Disposal of Property. No part of the Sewerage Facilities shall be sold, leased, mortgaged, pledged, encumbered or otherwise disposed of or otherwise alienated, until all of the Bonds have been paid in full , or unless provision has been -52- made therefor , or until the Bonds have otherwise been redeemed; provided, however , that the City may sell , exchange or lease at any time and from time to time any property or facilitieF constituting part of the Sewerage Facilities and not useful in the construction, reconstruction or operation thereof; but any proceeds of any such sale or exchange received and not used to replace such property so sold or exchanged shall be deposited in the Sewer Fund, and any proceeds of any such lease received shall be deposited by the City as revenues of the Sewerage Facilities . W. Loss from Condemnation . If any part of the Sewerage Facilities is taken by the exercise of a power of eminent domain, the amount of any award received by the City as a result of such taking shall be expended upon the Improvement or Equipment of the Sewerage Facilities or upon both its Improvement and Equipment , or shall be applied to the redemption of the Outstanding Bonds , any Outstanding Additional Parity Bonds and any Outstanding Parity Securities in accordance with the provisions hereof and of any other instrument pertaining to the issuance of any such Parity Securities at maturity or prior thereto if the authorizing ordinances authorize the prior redemption of such securities , or shall be deposited in the Sewer Depreciation and Capital Improvements Fund and held as a reserve for expenditure subsequently upon such capital improvements , or any combination thereof , as the City Council may determine . X. Inspection of Records . Any Owner of any of the Bonds or any other securities payable from the Pledged Revenues, any duly authorized agent or agents of such Owner , or the Purchaser of the Bonds , shall have the right at all reasonable times to inspect all records , accounts and data relating thereto, concerning the Sewerage Facilities , the Project , the Pledged Revenues , or all or any other combination thereof , to make copies of such records , accounts and data at the Owner ' s or Purchaser ' s expense, and to inspect the Sewerage Facilities and properties comprising the Sewerage Facilities . Y. Audits Required. The City, annually following the close of each Fiscal Year , shall order an audit for the Fiscal Year of the books and accounts pertaining to the Sewerage Facilities to be made forthwith by an independent accountant , and order an audit report showing the receipts and disbursements for each fund or account pertaining to the Sewerage Facilities , the Project, the Pledged Revenues , or all or any other combination thereof . All expenses incurred in the making of the audits and reports required by this subsection shall be regarded and paid as an Operation and Maintenance Expense. Z . Insurance and Reconstruction. The City shall at all times maintain with responsible insurers all such insurance reasonably required and obtainable within limits and at costs -53- deemed reasonable by the City as is customarily maintained with respect to sewerage facilities of like character against loss of or damage to the Sewerage Facilities and against public and other liability to the extent at least reasonably necessary to protect the interest of the City and of each Owner of a Bond or any other security payable from the Pledged Revenues , except as herein otherwise provided. If any useful part of the Sewerage Facilities shall be damaged or destroyed, the City shall , as expeditiously as possible, commence and diligently proceed with the repair or replacement of the damaged or destroyed property so as to restore the same to use. The proceeds of any insurance appertaining to the Sewerage Facilities shall be payable to the City and (except for proceeds of use and occupancy insurance) shall be applied to the necessary costs involved in such repair and replacement , and to the extent not so applied shall (together with the proceeds of any such use and occupancy insurance) be deposited in the Sewer Fund as Pledged Revenues . If the costs of such repair and replacement of the damaged or destroyed property exceed the proceeds of such property insurance available for payment of the same, moneys in the Sewer Fund shall be used to the extent necessary for such purpose, as permitted by Section 5J hereof . AA. Completion of Project ; Estimated Life of Project . The City, with the proceeds derived from the sale of the Bonds , and any other legally available moneys, including the proceeds derived from the issuance of Additional Parity Bonds , shall proceed to cause the Project to be completed without delay to the best of the City' s ability and with due diligence, as herein provided. The City Council hereby determines that the estimated life of the Project to be financed with the Bond proceeds is not less than twenty-five (25) years and one ( 1) month. Section 9 . Defeasance. When all Debt Service Requirements of the Bonds have been duly paid, the pledge and lien and all obligations hereunder shall thereby be discharged and the Bonds shall no longer be deemed to be Outstanding within the meaning of this Ordinance . There shall be deemed to be such due payment when the City has placed in escrow or in trust with a Trust Bank located within or without the State, moneys or Federal Securities in an amount sufficient ( including the known minimum yield available for such purpose from Federal Securities in which such amount wholly or in part may be initially invested) to meet all Debt Service Requirements of the Bonds , as the same become due to the final maturities of the Bonds or upon any Redemption Date as of which the City shall have exercised or shall have obligated itself to exercise its option to call Bonds for prior redemption. The Federal Securities shall become due prior to the respective times at which the proceeds thereof shall be needed, in -54- accordance with a schedule established and agreed upon between the City and such bank at the time of the creation of the escrow or trust , or the Federal Securities shall be subject to redemption at the option of the Owner thereof to assure such availability as so needed to meet such schedule. Nothing herein shall be construed to prohibit a partial defeasance of the Outstanding Bonds in accordance with the provisions of this Section 9 . Section 10 . Default Provisions and Remedies of Bond Owners . A. Events of Default . Each of the following events is hereby declared to be and to constitute an Event of Default : ( 1 ) Nonpayment of Principal . Payment of the principal of any of the Bonds is not made when the same becomes due and payable, either at maturity or by proceedings for prior redemption, or otherwise; (2) Nonpayment of Interest . Payment of any installment of interest is not made when the same becomes due and payable; (3) Incapable to Perform. The City for any reason is , or is rendered, incapable of fulfilling its obligations hereunder ; ( 4 ) Nonperformance of Duties . The City shall have failed to carry out and to perform (or in good faith to begin the performance of) all acts and things lawfully required to be carried out or to be performed by it under any contract relating to the Pledged Revenues , to the Project , to the Sewerage Facilities or to all or any combination thereof , or otherwise, including, without limitation, this Ordinance, and such failure shall continue for sixty (60) days after receipt of notice from the Owners of twenty-five percent (25% ) in aggregate principal amount of the Bonds then Outstanding; provided that if such failure cannot be cured within such sixty ( 60 ) days and if during that period corrective action has commenced to remedy such failure and subsequently is diligently pursued by the City to the completion of such performance, an Event of Default shall not be deemed to have occurred; (5) Failure to Reconstruct . The City discontinues or unreasonably delays or fails to carry out with reasonable dispatch the reconstruction of any revenue-producing part of the Sewerage Facilities which is condemned, destroyed or damaged and is not promptly repaired or replaced (whether such failure to repair the same is due to impracticality of such repair or replacement , or is due to a lack of moneys therefor, or for other reason) ; -55- (6) Appointment of Receiver . An order or decree is entered by a court of competent jurisdiction, with the consent or acquiescence of the City, appointing a receiver or receivers for the Sewerage Facilities or for the Pledged Revenues and any other moneys subject to the lien to secure the payment of the Bonds , or both the Sewerage Facilities and such moneys , or if any order or decree, having been entered without the consent or acquiescence of the City, is not vacated or discharged or stayed on appeal within sixty ( 60) days after entry; ( 7) Default of Any Provision. The City makes any default in the due and punctual performance of any other of the representations , covenants, conditions, agreements and other provisions contained in the Bonds or in this Ordinance on its part to be performed, and if such default continues for sixty (60) days after written notice, specifying such default and requiring the same to be remedied, is given to the City by the Owners of twenty-five percent (250) in aggregate principal amount of the Bonds then Outstanding; provided that if such default cannot be cured within such sixty (60) days and if during that period corrective action has commenced to remedy such default and subsequently is diligently pursued to the completion of such performance, an Event of Default shall not be deemed to have occurred. B . Remedies for Defaults . Upon the happening and continuance of any of the Events of Default , as provided in Section 10A hereof, then and in every case the Owner or Owners of not less than twenty-five percent (250) in aggregate principal amount of the Bonds then Outstanding, including, without limitation, a trustee or trustees therefor , may proceed against the City and its agents , officers and employees to protect and to enforce the rights of any Owner of Bonds under this Ordinance by mandatory injunction or by other suit , action, or special proceedings in equity or at law, in any court of competent jurisdiction, either for the appointment of a receiver or an operating trustee or for the specific performance of any covenant or agreement contained herein or for any proper legal or equitable remedy as such Owner or Owners may deem most effectual to protect and to enforce the rights aforesaid, or thereby to enjoin any act or thing which may be unlawful or in violation of any right of any Owner of any Bond, or to require the City to act as if it were the trustee of an expressed trust, or any combination of such remedies , or as otherwise may be authorized by any statute or other provision of law. All such proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of the Bonds, and any Additional Parity Bonds or additional Parity Securities then Outstanding. Any receiver or operating trustee appointed in any proceedings to protect the rights of such Owners hereunder may collect , receive and apply all Pledged Revenues arising after the appointment of such receiver or operating trustee in the -56- same manner as the City itself might do . The consent to any such appointment is hereby expressly granted by the City. C. Rights and Privileges Cumulative . The failure of any Owner of any Outstanding Bond to proceed in any manner herein provided shall not relieve the City or any of its officers , agents or employees of any liability for failure to perform to carry out any duty, obligation or other commitment . Each right or privilege of any such Owner or trustee therefor is in addition and is cumulative to any other right or privilege, and the exercise of any right or privilege by or on behalf of any Owner shall not be deemed a waiver of any other right or privilege thereof . Each Owner of any Bond shall be entitled to all of the privileges , rights and remedies provided or permitted in this Ordinance and as otherwise provided or permitted by law or in equity or by statute, except as provided in Sections 12A and 12B hereof, and subject to the appicable provisions concerning the Pledged Revenues and the proceeds of the Bonds . Nothing herein affects or impairs the right of any Owner of any Bond to enforce the payment of the Debt Service Requirements due in connection with this Bond or the obligation of the City to pay the Debt Service Requirements of each Bond to the Owner thereof at the time and the place expressed in such Bond. D. Duties Upon Default . Upon the happening of any of the Events of Default as provided in Section 10A hereof , the City, in addition, will do and perform all proper acts on behalf of and for the Owners of the Outstanding Bonds to protect and to preserve the security created for the payment of their Bonds and to insure the payment of the Debt Service Requirements promptly as the same become due. During any period of default , so long as any of the Bonds , as to any Debt Service Requirements , are Outstanding, except to the extent it may be unlawful to do so, all Pledged Revenues shall be paid into the Principal and Interest Fund, or , in the event of securities hereafter issued and Outstanding during such period of time on a parity with the Bonds , shall be paid into the Principal and Interest Fund for all Parity Securities , including the Bonds , on an equitable and prorated basis , and used for the purposes therein provided . If the City fails or refuses to proceed as in this Section 10D provided, the Owner or Owners of not less than twenty-five percent (25%) in aggregate principal amount of the Bonds then Outstanding, after demand in writing, may proceed to protect and to enforce the rights of the Owners of the Bonds as hereinabcve provided; and to that end any such Owners of Outstanding Bonds shall be subrogated to all rights of the City under any agreement or contract involving the Pledged Revenues entered into prior to the effective date of this Ordinance or thereafter while any of the Bonds are Outstanding . Nothing herein requires the City to proceed as provided herein if it determines in good faith and without any abuse of its discretion that if it so proceeds it is more likely than not t, incur a net loss rather than a net gain or such action is likely to affect materialli -57- the City Clerk, or by any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, showing at the date therein mentioned that such Person exhibited to such member , officer , notary public or other officer so authorized to take acknowledgments of deeds or had on deposit with such depository the securities described in such certificate or , if in registered form shall be determined from the related registration books; but the City Clerk may nevertheless in his or her discretion require further or other proof in cases where he or she deems the same advisable . F. Warranty Upon Issuance of Bonds . Any of the Bonds as herein provided, when duly executed and registered for the purposes provided for in this Ordinance, shall constitute a warranty by and on behalf of the City for the benefit of each and every future Owner of any of the Bonds that the Bonds have been issued for a valuable consideration in full conformity with law. G. Immunities of Purchaser . The Purchaser and any associate thereof are under no obligation to any Owner of the Bonds for any action that they may not take or in respect of anything that they may or may not do by reason of any information contained in any reports or other documents received by them under the provisions of this Ordinance. The immunities and exemption from liability of the Purchaser and any associate thereof hereunder extend to their partners , directors , successors, assigns, employees and agents . Section 11 . Amendment of Ordinance. A. Amendment of Ordinance Not Requiring Consent of Bond Owners . The City may, without the consent of , or notice to , the Owersn of the Bonds , adopt such ordinances supplemental hereto (which amendments shall thereafter form a part hereof) for any one or more or all of the following purposes ; ( 1) To cure any ambiguity, or to cure, correct or supplement any defect or inconsistent provision contained in this Ordinance, or to make any provision with respect to matters arising under this Ordinance or for any other purpose if such provisions are necessary or desirable and do not adversely affect the interests of the Owners of the Bonds; or (2) To subject to this Ordinance additional revenues , properties or collateral . B . Amendment of Ordinance Requiring Consent of Bond Owners . Exclusive of the amendatory ordinances covered by Section 11A hereof, this Ordinance may be amended or modified by -59- ordinances or other instruments duly adopted by the City Council , without receipt by it or any additional consideration, but with the written consent of the Owners of sixty-six percent ( 66%) in aggregate principal amount of the Bonds and Outstanding at the time of the adoption of such amendatory ordinance, including any Outstanding refunding securities as may be issued for the purpose of refunding any of the Bonds , provided that no such amendatory resolution shall permit : ( 1) Changing Payment . A change in the maturity or in the terms of redemption of the principal of any Outstanding Bond or any installment of interest thereon; or (2) Reducing Return. A reduction in the principal amount of any Bond or the rate of interest thereon without the consent of the Owner of the Bond; or (3) Prior Lien. The creation of a lien upon or a pledge of revenues ranking prior to the lien or to the pledge created by this Ordinance; or (4) Modifying Amendment Terms . A reduction of the principal amount or percentages of Bonds , or any modification otherwise affecting the description of Bonds, otherwise changing the consent of the Owners of Bonds, which may be required herein for any amendment hereto; or (5) Priorities Between Bonds . The establishment of priorities as between Bonds issued and Outstanding under the provisions of this Ordinance; or ( 6) Partial Modification. Any modifications otherwise materially and prejudicially affecting the rights or privileges of the Owners of less than all of the Bonds then Outstanding. Whenever the City Council proposes to amend or modify this Ordinance under the provisions of this Section 11B it shall give notice of the proposed amendment by mailing such notice to the Purchaser of the Bonds, or to any successor thereof known to the City Clerk and to all registered Owners of Bonds on the registration books of the City. Such notice shall briefly set forth the the nature of the proposed amendment and shall state that a copy of the proposed amendatory ordinance or other instrument is on file in the office of the City Clerk for public inspection. C. Time for and Consent to Amendment . Whenever at any time within one ( 1) year from the date of the completion of the notice required to be given by Section 11B hereof there shall be filed in the office of the City Clerk an instrument or instruments executed by the Owners of at least sixty-six percent (660) in aggregate principal amount of the Bonds then -60- Outstanding, which instrument or instruments shall refer to the proposed amendatory ordinance or other instrument described in such notice and shall specifically consent to and approve the adoption of such ordinance or other instrument, thereupon, but not otherwise, the City Council may adopt such amendatory ordinance or instrument and such ordinance or instrument shall become effective . If the Owners of at least sixty-six percent (66%) in aggregate principal amount of the Bonds then Outstanding, at the time of the adoption of such amendatory ordinance or instrument , or the predecessors in title of such Owners , shall have consented to and approved the adoption thereof as herein provided, no Owner of any Bond whether or not such Owner shall have consented to or shall have revoked any consent as herein provided shall have any right or interest to object to the adoption of such amendatory ordinance or other instrument or to object to any of the terms or provisions therein contained or to the operation thereof or to enjoin or restrain the City from taking any action pursuant to the provisions thereof . Any consent given by the Owner of a Bond pursuant to the provisions thereof shall be irrevocable for a period of six ( 6) months from the date of the completion of the notice above provided for and shall be conclusive and binding upon all future Owners of the same Bond during such period. Such consent may be revoked at any time after six ( 6) months from the completion of such notice, by the Owner who gave such consent or by a successor in title, by filing notice of such revocation with the City Clerk, but such revocation shall not be effective if the Owners of sixty-six percent (66%) in aggregate principal amount of the Bonds Outstanding as herein provided, prior to the attempted revocation, shall have consented to and approved the amendatory instrument referred to in such revocation. D . Unanimous Consent . Notwithstanding anything in the foregoing provisions contained, the terms and the provisions of this Ordinance, or of any ordinance or instrument amendatory thereof, and the rights and the obligations of the City and of the Owners of the Bonds may be modified or amended in any respect upon the adoption by the City and upon the filing with the City Clerk of an instrument to that effect and with the consent of the Owners of all the then Outstanding Bonds , such consent to be given in the manner provided in Section 11C hereof; and no notice to Owners of Bonds shall be required as provided in Section 11B hereof, nor shall the time of consent be limited except as may be provided in such consent . E. Exclusion of Bonds . At the time of any consent or of other action taken hereunder the City shall furnish to the Clerk a certificate, upon which the Clerk may rely, describing all Bonds to be excluded for the purpose of consent or of other action or or any calculation of Outstanding Bonds provided for hereunder , and, with respect to such excluded Bonds , the City shall not be entitled or required with respect to such Bonds to -61- give or obtain any consent or to take any other action provided for hereunder . F. Notation on Bonds . Any of the Bonds delivered after the effective date of any action taken as provided in Section 11B, or Bonds Outstanding at the effective date of such action, may bear a notation thereon by endorsement or otherwise in form approved by the City Council as to such action; and if any such Bonds so executed and delivered after such date does not bear such notation, then upon demand of the - Owner of any Bond Outstanding at such effective date and upon presentation of his Bond for such purpose at the principal office of the City, suitable notation shall be made on such Bond by the City Clerk as to any such action. If the City Council so determines , new Bonds so modified as in the opinion of the City Council to conform to such action shall be prepared, executed and delivered; and upon demand of the Owner of any Bond then Outstanding, shall be exchanged without cost to such Owner for Bonds then Outstanding upon surrender of such Outstanding Bonds . G. Proof of Instruments and Bonds . The fact and date of execution of any instrument under the provisions of this Section 11 , the amount and number of the Bonds owned by any Person executing such instrument, and the date of his registering the same may be proved as provided by Section 10E hereof . Section 12 , Miscellaneous . A. Character of Agreement . None of the covenants , agreements, representations , or warranties contained herein or in the Bonds shall ever impose or shall be construed as imposing any liability, obligation, or charge against the City (except for the special funds pledged therefor) or against the general credit of the City payable out of general funds or out of any funds derived from general property taxes . B. No Pledge of Property. The payment of the Bonds is not secured by an encumbrance, mortgage or other pledge of property of the City except for the Pledged Revenues of the City. No property of the City, subject to such exception with respect to the Pledged Revenues, pledged for the payment of the Bonds, shall be liable to be forfeited to taken in payment of the Bonds . C. Statute of Limitations . No action or suit based upon any Bond or other obligation of the City shall be commenced after it is barred by any statute of limitations pertaining thereto . Any trust or fiduciary relationship between the City and the Owner of any Bond or the obligee regarding any such obligation shall be conclusively presumed to have been repudiated on the maturity date or other due date thereof unless the Bond is presented for payment or demand for payment of such other obligation is otherwise made before the expiration of the applicable limitation period. Any moneys from whatever source -62- derived remaining in any fund or account reserved, pledged or otherwise held for the payment of any such obligation, action or suit, the collection of which has been barred, shall revert to the Sewer Fund, unless the City Council shall otherwise provide by ordinance. Nothing herein prevents the payment of any such Bond or other obligation after an action or suit for its collection has been barred if the City Council deems it in the best interests of the City or the public so to do and orders such payment to be made . D. Delegated Duties . The officers of the City are hereby authorized and directed to enter into such agreements and take all action necessary or appropriate to effectuate the provisions of this Ordinance and to comply with the requirements of law, including, without limitation: ( 1) Printing of Bonds . The printing of the Bonds , including the printing upon each such Bond of a copy of the approving legal opinion of Ballard, Spahr , Andrews & Ingersoll , bond counsel , duly certified by the City Clerk, and, if necessary or desirable pending delivery of printed Bonds, the preparation of one or more temporary typewritten Bonds in an aggregate principal amount equal to that of the Bonds, otherwise in substantially the same form and bearing the same terms , to be delivered to the Purchaser and thereafter to be exchanged by the Purchaser for printed Bonds when the same are received by the City; (2) Execution, Registration and Delivery of Bonds . The execution and registration of the Bonds and the delivery of the Bonds to the Purchaser pursuant to the provisions of this Ordinance; (3) Information . The assembly and dissemination of financial and other information concerning the City and the Bonds; (4) Official Statement . The preparation of a final official statement for the use of prospective buyers of the Bonds , including, without limitation, the Purchaser and its associates, if any; and ( 5) _Closing Certificates . The execution of the Escrow Agreement and such certificates as may be reasonably required by the Purchaser , relating, inter alia, to : (a) The signing of the Bonds; (b) The tenure and identity of the officials of the City; (c) If in accordance with fact, the absence of litigation, pending or threatened, affecting the validity of the Bonds; -63- (2) Bonds . Toward the sale and delivery of the Bonds for that purpose, be, and the same hereby is, ratified, approved and confirmed . H. Facsimile Signatures . Pursuant to the Uniform Facsimile Signature of Public Officials Act, part 1 of article 55 of title 11 , Colorado Revised Statutes , as amended, the Mayor and the City Clerk shall forthwith, and in any event prior to the time the Bonds are delivered to the Purchaser , file with the Colorado Secretary of State their manual signatures certified by them under oath. I . Ordinance Irrepealable . This Ordinance is , and shall constitute, a legislative measure of the City and after any of the Bonds are issued, this Ordinance shall constitute an irrevocable contract between the City and the Owner or Owners of the Bonds; and this Ordinance, subject to the provisions of Sections 9 and 11 hereof , if any Bonds are in fact issued, shall be and shall remain irrepealable until the Bonds , as to all Debt Service Requirements, shall be fully paid, cancelled and discharged, as herein provided. J. Repealer . All ordinances, resolutions , bylaws, orders , and other instruments , or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any ordinance, resolution, bylaw, order , or other instrument , or part thereof, heretofore repealed. K. Severability. If any section, subsection, paragraph, clause or other provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability thereof shall not affect any of the remaining sections, subsections , paragraphs , clauses or provisions of this Ordinance. INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 5th day of November , 1985 . CITY OF FORT COLLINS, COLORADO (CITY) By: Mcl or (SEAL) y ATTEST: )amlk�� �� -". City Clerk -65- READ, FINALLY PASSED ON SECOND READING, AND ORDERED PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 19th day of November , 1985 . CITY OF FORT COLLINS , COLORADO (CITY) By: 1 -4� 4� (SEAL) MMTTayo rr ATTEST : City Clerk -66- Council Member Clarke moved that the foregoing Ordinance heretofore introduced and read by title be approved on first reading. Council Member Estrada seconded the motion . The question being upon the approval on first reading of the Ordinance, the roll was called with the following results : Council Members voting "AYE" : Barbara S . Rutstein Kelly Ohlson E. John Clarke Larry Estrada Gerald C. Horak John B . Knezovich Ed Stoner Council Members voting "NAY" : None The Mayor thereupon declared that, a majority of the Council Members present having voted in favor thereof, the motion was carried and the Ordinance duly approved on first reading. Thereupon the Mayor ordered the Ordinance published by number and title only together with a statement that the text thereof is available for public inspection and acquisition in the office of the City Clerk and a notice giving the date when the Ordinance will be presented for final passage in The Coloradoan, a newspaper of general circulation published in the City, at least seven ( 7) days before presentation for final passage. After consideration of other business to come before the Council , the meeting was adjourned. (CITY) mlayul (SEAL) City of Fort Collins, Colorado ATTEST: City Clerk City of Fort Collins , Colorado -67- STATE OF COLORADO ) COUNTY OF LARIMER ) ss . CITY OF FORT COLLINS ) The Council of the City of Fort Collins , Colorado, held a regular meeting at Council Chambers , City Hall , 300 West LaPorte Avenue, Fort Collins , Colorado, on Tuesday, the 19th day o November , 1985 , at the hour of 6 : 30 p.m. The following persons were present : Council Members : Barbara S . Rutstein, Mayor Kelly Ohlson, Assistant Mayor E. John Clarke Larry Estrada Gerald C. Horak John B. Knezovich Ed Stoner Interim City Manager : Richard H. Shannon Finance Director : James H. Harmon City Clerk: Wanda M. Krajicek City Attorney: John H. Huisjen The following persons were absent : done The Mayor informed the Council that Ordinance No . 143 1985 , which was introduced, approved on first reading, and ordered published by number and title only at the regular and of the Council held on November 5, 1985 , was duly published in The Coloradoan, a newspaper of general circulation published in the City, in its issue of November 10, 1985 . Council Member Clarke then read the Ordinance by its title. Thereupon, Council Member Clarke moved the final passage of Ordinance No . 143 1985 . Council Member Estrada seconded the motion, and the question being upon the final passage of the Ordinance, the roll was called with the following result : -68- Council Members voting "AYE" : Barbara S . Rutstein Kelly Ohlson E. John Clarke Larry Estrada Gerald C. Horak John B. Knezovich Ed Stoner `Council Members voting "NAY" : None The Mayor thereupon declared that a majority of the Council Members present having voted in favor thereof, the motion was carried and the Ordinance finally passed. Thereupon the Mayor ordered the Ordinance published by number and title only together with a notice of the final passage of the Ordinance in The Coloradoan, a newspaper of general circulation published in the City, within five (5) days after final passage. After consideration of other business to come before the Council the meeting was adjourned. Mayor (CITY) City of Fort Collins, Colorado (SEAL) ATTEST: "�6N City Clerk City of Fort Collins , Colorado -69- STATE OF COLORADO ) COUNTY OF LARIMER ) ss . CITY OF FORT COLLINS ) I , Wanda M. Krajicek, City Clerk of the City of Fort Collins, Colorado, do hereby certify that the attached copy of Ordinance No . 143 , 1985 , is a true and correct copy; that the Ordinance was introduced and approved on first reading by the Council of the City of Fort Collins, Colorado, at a regular meeting thereof held at Council Chambers , City Hall , 300 West LaPorte Avenue, Fort Collins , Colorado, the regular meeting place thereof, on Tuesday, the 5th day of November , 1985; that the Ordinance was finally passed on second reading by the Council at a regular meeting thereof held at Council Chambers , City Hall , 300 West LaPorte Avenue, Fort Collins , Colorado, the regular meeting place thereof, on Tuesday, the 19th day of November , 1985; that a true copy of the Ordinance has been authenticated by the signatures of the Mayor of the City and myself as City Clerk thereof , sealed with the seal of the City, and numbered and recorded in a book marked "Ordinance Record" kept for that purpose in my office; that the Ordinance was duly published by number and title only together with a statement that the text thereof was available for public inspection and acquisition in the office of the City Clerk and a notice giving the date when the Ordinance would be presented for final passage and again by number and title only together with a notice of the final passage thereof in The Coloradoan, a newspaper of general circulation published in the City, in its issues of November 10 , 1985, and November 24 , 1985 , as evidenced by the certificates of the publisher attached hereto at pages 72 and 73 ; and that the notices of refunding and redemption appearing herein at pages 31 and 33-34 were duly published in The Coloradoan, a newspaper having general circulation in the City, in its issue of November 24 , 1985, as evidenced by the certificates of the publisher attached hereto at page 74 ; and that the notices of refunding and redemption appearing herein at pages 31 , 33-34 , and 36-37 were duly mailed as required in the Ordinance. I further certify that the foregoing pages 1 through 69 , inclusive, constitute a true and correct copy of the record of the proceedings of the Council at its aforesaid regular meetings , insofar as the proceedings relate to the Ordinance; that the proceedings were duly had and taken, that the meetings were duly held; and that the persons were present at the meetings as therein shown. -70- IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins, Colorado, this 25th day of November , 1985 . (CITY) City Clerk '` (SEAL) City of Fort Collins , Colorado -71- STATE OF COLORADO ) COUNTY OF LARIMER ) ss . CITY OF FORT COLLINS ) (Attach certificate of publication of Ordinance by number and title only and statement that text available for public inspection and acquisition in office of City Clerk and notice giving date when Ordinance to be presented for final passage. ) -72- The Coloradoan STATE OF COLORADO COUNTY OF LARIMER )ss. AFFIDAVIT OF PUBLICATION Suzanne K. Bielke being first duly sworn upon oath, deposes and says: That said is the Legal Clerk _ of The Coloradoan; that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan is a public daily newspaper of general circulation, having its principal office and place of business situated in said County of Larimer; that said Coloradoan is printed and published daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado Revised Statutes 1963, and any amendment thereof passed prior to the date hereof; that said newspaper had, prior to January 1, 1936, and has ever since said date been admitted to the United States Mails as second class matter under the provisions of the Act of March 3, 1879, and any amendments thereof, that said newspaper is printed in whole in said County of Larimer and has a general circulation therein; that said newspaper has been so printed and published as a public daily newspaper of general circulation in said County of Lar- imer, uninterruptedly and continuously, during the period of more than fifty-two consecu- tive weeks next prior to the first issue thereof containing the annexed legal notice of advertisement; that said annexed legal notice or advertisement was published in the regular and entire editions of said newspaper for 1 successive weeks on Sunday of each successive week; that the first publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the loth day of November , A.D. 19_85; that the last publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the 1 nth day of NnvPmhar , A.D. 1985, and that copies of each number of said paper in which said notice or advertisement was published were delivered by carriers or transmitted by mail to each of the subscribers of said paper, according to the accustomed mode of business in this office. P.-15 Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado this loth day of November A.D. 19 85 L 15. 1987 1212 Riverside, —r�,i �,:Jas, CG 80524 My commission expires City Clerk i Notary Public Delivered to IL NVIICE IS IIERFBY GIVEN that the For Collins City Council, on Tuesday, November 6, 1985 Passed antl adopted the following ordinance(s)on first reading and ordered their publication by title only,with said ordinance($) to be presented for final passage on November 19,1985.The full text of said ordinance(s) is available for Public inspection and acquisition In the office of the city clerk. ORIONANCE NO. 136, 1985 AN ORDINANCE RELATING TO iTHE ISSUANCE OF INDUS TRIAL DEVELOPMENT REVE NUE BONDS UNDER THE PRO VISIONS OF THE COLORADO COUNTY AND MUNICIPALITY DEVELOPMENT REVENUE BOND ACT; PROVIDING FOR THE ISSUANCE AND SALE OF CITY OF FORT COLLINS,COLO RADO, INDUSTRIAL DEVEL OPMENT REVENUE BONDS, SERIES 1985 (THE MOUNTAIN AVENUE PLAZA ASSOCIATES PROJECT) IN THE PRINCIPAL AMOUNT OF 1600,D00 FOR THE I PURPOSE OF LOANING FUNDS TO MOUNTAIN AVENUE PLAZA ASSOCIATES TO FINANCE IMPROVEMENTS RELATING TO ACQUIRING, CONSTRUCTING, EQUIPPING AND RENOVATING COMMER- CIAL BUILDINGS IN FORT COL LINS,LARIMER COUNTY,COL ORADO; APPROVING AND AUTHORIZING THE EXECU- TION AND ASSIGNMENT OF A LOAN AGREEMENT AND NOTE BETWEEN MOUNTAIN AVENUE PLAZA ASSOCIATES AND THE CITY;AND AUTHOR- IZING THE PREPARATION AND EXECUTION OF CERTAIN RELATED DOCUMENTS AND INSTRUMENTS ORDINANCE NO. 137, 1985 AN ORDINANCE RELATING TO THE ISSUANCE OF INDUS TRIAL DEVELOPMENT REVE- NUE BONDS UNDER THE PRO VISIONS OF THE COLORADO COUNTY AND MUNICIPALITY DEVELOPMENT REVENUE BOND ACT; PROVIDING FOR THE ISSUANCE AND SALE OF CITY OF FORT COLLINS,COLO- RADO, INDUSTRIAL DEVEL OPMENT REVENUE BONDS, SERIES 1965 (THE TULAKES ASSOCIATES PROJECT) IN THE PRINCIPAL AMOUNT OF $920,000 FOR THE PURPOSE OF LOANING FUNDS TO TULAKES ASSOCIATES TO FINANCE IMPROVEMENTS RELATING TO CONSTRUCTING AN ADDI- TION TO AN EXISTING OFFICE AND MANUFACTURING FACILITY IN FORT COLLINS,. LARIMER COUNTY, COLO. RADO; APPROVING AND AUTHORIZING THE EXECU- TION AND ASSIGNMENT OF A LOAN AGREEMENT AND NOTE BETWEEN TULAKES, ASSOCIATES AND THE CITY;' AND AUTHORIZING THE; 'PREPARATION AND EXECU TION OF CERTAIN RELATED DOCUMENTS AND INSTRU- MENTS. ORDINANCE NO. 140, 1985 AN ORDINANCE AUTHORIZ- ING THE ISSUANCE OF A CITY OF FORT COLLINS, COLO- RADO,GREENBRtAR SPECIAL IMPROVEMENT DISTRICT NO. 07, SPECIAL ASSESSMENT BOND, DATED DECEMBER 15, 1985, IN THE PRINCIPAL AMOUNT OF $1,640,000; PRES- CRIBING THE FORM OF THE BOND; AND PROVIDING FOR THE PAYMENT OF THE BOND AND THE INTEREST THEREON, ORDINANCE NO, 142, 1985 AN ORDINANCE AUTHORIZ- ING THE ISSUANCE OF CITY OF FOR T COLLINS,COLORADO DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT REFUNDING BONDS. SERIES 1985A, DATED DECEMBER 1, 1995, IN THE AGGREGATE PRINCIPAL AMOUNT OF $8,885,0W, FOR THE PURPOSE OF REFUNDING THE CITY OF FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT ,BONDS, SERIES 1984A. ORDINANCE NO. 143, 1985 AN ORDINANCE AUTHORIZ- ING THE ISSUANCE OF CITY OF FORT COLLINS, COLO- RADO, SEWER REVENUE REFUNDING AND IMPROVE MENT.BONDS, SERIES 1985, DATED NOVEMBER 1, 1985, IN THE AGGREGATE PRINCIPAL AMOUNT OF$30,715,000, Wanda M. Kraiicek The Calorad City Clerkoan,R1S, November 10, 1985 k STATE OF COLORADO ) COUNTY OF LARIMER ) ss . CITY OF FORT COLLINS ) (Attach certificate of publication of Ordinance by number and title only and notice of final passage thereof . ) -73- NOTICE IS HEREBY GIVEN that the Fort Collins City Council, on Tuesday, November 19, 7985, passed and adopted the following ORDINANCE NO. 138, 7985 ordinances on second reading: j a OF THE COUNCIL OF THE CITY ORDINANCE NO. 134, 1985 OF FORT COLLINS BEING AN OF THE COUNCIL OF THE CITY) ORDINANCE AMENDING THE OF FORT COLLINS APPROPRI- ZONING ORDINANCE OF THE ATING UNANTICIPATED REV CITY OF FORT COLLINS BV ENUE IN THE CULTURAL SER CHANGING THE ZONING CLAS VICES FUND SIFICATION FOR CERTAIN ORDINACE NO. 135, PROPERTY KNOWN AS THE OF OF THE COUNCIL THE7985 CITY CENTER FOR ADVANCED OF FORT COLLINS VACATING TECHNOLOGY REZONING. ALL EASEMENTS ON THE ORDINANCE NO. 139, 1905 REPLAT OF LOTS I AND 2 OFTHECOUNCILOF THECITY TIMBERLINE APARTMENTS I OF FORT COLLINS RELATING PLO TO CREATION AND ORGAN IZA ORDINANCE NO 136, 1985 TION OF THE GREENBRIAR AN ORDINANCE RELATING IO SPECIAL IMPROVEMENT DIS THE ISSUANCE OF INDUS TRICT NO.87 AND PROVIDING TRIAL DEVELOPMENT REVE FOR THE CONSTRUCTION OF NUE BONDS UNDER THE PRO IMPROVEMENTS THEREOF VISIONS OF THE COLORADO ORDINANCE NO. 140. 1985 COUNTY AND MUNICIPALITY AN ORDINANCE AUTHORIZ- DEVELOPMENT REVENUE ING THE ISSUANCE OF A CITY BOND ACT; PROVIDING FOR OF FORT COLLINS, COLO THE ISSUANCE AND SALE OF I RADO,GREENBRIAR SPECIAL CITY OF FORT COLLINS,COLO IMPROVEMENT DISTRICT NO. RADO, INDUSTRIAL DEVEL. 87, SPECIAL ASSESSMENT OPMENT REVENUE BONDS, BOND, DATED DECEMBER is, SERIES 1985 (THE MOUNTAIN 1985, IN THE PRINCIPAL AVENUE PLAZA ASSOCIATES AMOUNT OF 91,640,000; PRIESPROJECT) IN THE PRINCIPAL CRIBING THE FORM OF THE AMOUNT OF L600,000 FOR THE BOND; AND PROVIDING FOR PURPOSEOF LOANING FUNDS THE PAYMENT OF THE BOND TO MOUNTAIN AVENUE AND THE INTEREST PLAZA ASSOCIATES TO THEREON. FINANCE IMPROVEMENTS ORDINANCE NO. 141, 1985 RELATING TO ACQUIRING, OF THE COUNCILOF THE CITY CONSTRUCTING, EQUIPPING OF FORT COLLINS APPROPRI AND RENOVATING COMMER ATING UNANTICIPATED REV CIAL BUILDINGS IN FORT COL- ENUE IN THE STREET OVER LINS,LARIMER COUNTY,COL- SIZING FUND FOR TRANSFER ORADO; APPROVING AND TO THE CAPITAL PROJECTS AUTHORIZING THE EXECU- FUND AND APPROPRIATING TION AND ASSIGNMENT OF A UNANTICIPATED REVENUE LOAN AGREEMENT AND IN THE CAPITAL PROJECTS NOTE BETWEEN MOUNTAIN FUND AVENUE PLAZA ASSOCIATES ORDINANCE NO. 142, 1985 1 AND THE CITY:AND AUTORIZ. AN ORDINANCE AUTHORIZ ING THE PREPARATION AND ING THE ISSUANCE OF CITY EXECUTION OF CERTAIN OF FORT COLLINS,COLORADOI RELATED DOCUMENTS AND DOWNTOWN DEVELOPMENT 1 INSTRUMENTS, AUTHORITY TAX INCREMENT ORDINANCE NO. 137, 1985 REFUNDING BONDS, SERIES ANORDINANCE RELATING TO 1985A, DATED DECEMBER 1, THE ISSUANCE OF INDUS 1985, IN THE AGGREGATE TRIAL DEVELOPMENT REVE PRINCIPAL AMOUNT OF NUE BONDS UNDER THE PRO 58,885.000. FOR THE PURPOSE VISIONS OF THE COLORADO OF REFUNDING THE CITY OF COUNTY AND MUNICIPALITY FORT COLLINS, COLORADO DEVELOPMENT REVENUE DOWNTOWN DEVELOPMENT BOND ACT; PROVIDING FOR AUTHORITY TAX INCREMENT THE ISSUANCE AND SALE OF BONDS, SERIES 1984A CITYOF FORT COLLINS,COLO ORDINANCE NO. 143, 1985 RADO, INDUSTRIAL DEVEL AN ORDINANCE AVTHORLZ OPMENT REVENUE BONDS, ING THE ISSUANCE OF CITY SERIES 1985 (THE TULAKES OF FORT COLLINS, COLO ASSOCIATES PROJECT) IN RADO, SEWER REVENUE THE PRINCIPAL AMOUNT OF REFUNDING AND IMPROVE I $920.000FOR THE PURPOSE OF MENT, BONDS, SERIES 19,15, LOANING FUNDS TO TULAKES DATED NOVEMBER 1. 7985, IN ASSOCIATES TO FINANCE THE AGGREGATE PRINCIPAL IMPROVEMENTS RELATING AMOUNT OF$30,715.pK TO CONSTRUCTING AN ADDI Wanda M. Krajicck' TION TO AN EXISTING OFFICE City Clerk; AND MANUFACTURING The Coloradoan, R A, November) FACILITY IN FORT CO LLI NS, 24, 1985 LARIMER COUNTY, COI_O. RADO; APPROVING ANp AUTHORIZING THE EXECU TION AND A551GNME NT OF A LOAN AGREEMENT AND -- NOTE BETWEEN TULAKESI ASSOICATES AND THE CITY; . AND AUTHORIZING THE PREPARATION AND EXECU TION OF CERTAIN RELATED DOCUMENTS AND INSTRU MENTS, STATE OF COLORADO ) COUNTY OF LARIMER ) ss . CITY OF FORT COLLINS ) (Attach certificate of publication of notices of refunding and redemption of prior bonds . ) -74- ORDINANCE NO. 143 , 1985 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT COLLINS, COLORADO, SEWER REVENUE REFUNDING AND IMPROVEMENT BONDS , SERIES 1985 , DATED NOVEMBER 1 , 1985 , IN THE AGGREGATE PRINCIPAL AMOUNT OF $30 , 715 , 000 . INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 5th day of November , 1985 . CITY OF FORT COLLINS, COLORADO (CITY) M or (SEAL) ATTEST: City Clerk The text of the foregoing Ordinance is available for public inspection and acquisition in the office of the City Clerk . The Ordinance will be presented for final passage at the regular meeting of the Council to be held at Council Chambers , City Hall , 300 West LaPorte Avenue, Fort Collins , Colorado, on Tuesday, the 19th day of November , 1985 , at 6 : 30 p.m. ORDINANCE NO . 1985 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT COLLINS, COLORADO, SEWER REVENUE REFUNDING AND IMPROVEMENT BONDS , SERIES 1985 , DATED NOVEMBER 1 , 1985 , IN THE AGGREGATE PRINCIPAL AMOUNT OF $30 , 715 , 000 . READ, ADOPTED ON SECOND READING, AND ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 19th day of November , 1985 . CITY OF FORT COLLINS, COLORADO (CITY) ML2%'` / (SEAL) ATTEST: City Clerk The Coloradoan STATE OF COLORADO ) COUNTY OF LARIMER )ss. AFFIDAVIT OF PUBLICATION Suzanne K. Bielke being first duly sworn upon oath, deposes and says: That said is the Legal Clerk of The Coloradoan; that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan is a public daily newspaper of general circulation, having its principal office and place of business situated in said County of Larimer; that said Coloradoan is printed and published daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado Revised Statutes 1963, and any amendment thereof passed prior to the date hereof; that said newspaper had, prior to January 1, 1936, and has ever since said date been admitted to the United States Mails as second class matter under the provisions of the Act of March 3, 1879, and any amendments thereof, that said newspaper is printed in whole in said County of Larimer and has a general circulation therein; that said newspaper has been so printed and published as a public daily newspaper of general circulation in said County of Lar- imer, uninterruptedly and continuously, during the period of more than fifty-two consecu- tive weeks next prior to the first issue thereof containing the annexed legal notice of advertisement; that said annexed legal notice or advertisement was published in the regular and entire editions of said newspaper for 1 successive weeks on Sunday of each successive week; that the first publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the 24th day of November , A.D. 19L5_—; that the last publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the 24th day of "?ovPmher , A.D. 19-Ba, and that copies of each number of said paper in which said notice or advertisement was published were delivered by carriers or transmitted by mail to each of the subscribers of said paper, according to the accustomed mode of business in this office. R-57 a 99 Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado this 24th day of November A.D. 19 85 My commission expires City Clerk I / Notary Public Delivered to