52-91 Gen Provisions - Sanitary Sewer Spec Oblig Bonds

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I Section 8. ADDlication of Proceeds of Bonds and Notes. The Fiscal Officer is hereby authorized and directed to deliver the Bonds or Notes, appli- cable, when executed, to the Original Purchaser thereof upon payment of the purchase price. The proceeds of such sale shall be paid into the proper funds and used for the purpose for which the Bonds or Notes are being issued in accor- dance with the provisions of this General Bond Legislation and the applicable Series Legislation and to pay those costs set forth in section 133.15(B), Ohio Revised Code, including, without limitation, financing costs, and any such costs which are future financing costs may be paid from the same sources from which the principal of and interest on the Bonds or Notes are paid. Any premium and accrued interest with respect to Serial Bonds or Notes Shall be deposited into the Bond Retirement Fund and any premium and accrued interest with respect to Term Bonds shall be deposited into the Sinking Fund created in Section 10 hereof, in each case to be applied to the payment of the principal of and intereSt on the related Bonds or Notes in the manner provided by law and this General Bond Legislation. Section 9. Securitv and Sources of pavment for the Bonds and Notes. DeDosits with the Fiscal Aaent. The Bonds and Notes are special obligations of the Issuer, the principal of and premium and interest (the "Bond Service Charges") on which are in any calendar equally and ratably payable from and secured by the proceedS of a two (2) mill ad valorem property tax levy, levied pursuant to Article XIV, section 32 of the Issuer's Charter (the "Levy") and co1lecte(i in such calendar year, but only payable from and secured by that portion of such proceeds as is necessary to pay Bond Service Charges on the Bonds and Notes due in such calendar year (the "Pledged Receipts"); provided however, that if, in any calendar year, the proceeds of the Levy are insufficient to pay the Bond Service Charges on the Bonds and Notes due in such calendar year, such Bond Service Charges shall be payable from, and secured by, the proceeds of the Levy collected in the next succeeding year or years in an amount in aggregate sufficient to pay in full all such Bond Service Charges (the "Additional Pledged Receipts"). With respect to any series of Notes, such Notes are payable from and secured by, in addition to the Pledged Receipts and Additional pledged Receipts, the proceeds of the series of Bonds in anticipation of which such Not.es are issued, or the proceeds of renewal Notes, and the proceeds of such series of Bonds or renewal Notes, and the case may be, constitute part of the Pledged Receipts with respect to such Notes. In order to Secure the payment of Bond Service Charges on Bonds and Notes, the Issuer hereby pledges and assigns to the Fiscal Agent and to its successor in trust, and to its and their assigns, an(i grants a lien upon, the Pledged Receipts and Additional Pledged Receipts; provided, however, that such pledge of and lien on such portion of the Pledged Receipts and Additional Pledged Receipts not in the custody of the Fiscal Agent shall be valid and enforceable only to the extent permitted by law. Notwithstanding the foregoing, nothing herein shall prevent payment of Bond Service Charges on Bonds and Notes from being otherwise secured and payable from sources or property and instruments other than the Pledged Receipts and Additional Pledged Receipts at the discretion of the Issuer. Proceeds of the Levy in excess of the Pledged Receipts and Additional Pledged Receipts may be used by the Issuer for any other lawful purposes for which the Levy, pursuant to the provisions of the Issuer's Charter, may be used. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE ISSUER AND THE FULL FAITH AND CREDIT OF THE ISSUER IS NOT PLEDGED FOR PAYMENT THEREOF. Notwithstanding that Bonds and Notes shall be equally and ratably secured by and payable from the Pledged Receipts and Additional Pledged Receipts, nothing herein or in any Series Legislation shall be construed as prohibiting the Issuer from issuing bonds the debt service charges of which are payable from the proceeds of the Levy (exclusive of that portion of the proceeds of the Levy constituting Pledged Receipts and Additional Pledged Receipts) on a subordinated basis, subject to any applicable provisions of this General Bond Legislation. -12-