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<br />PFtOVID2NG FOR TSE ISSUANCE OF $123, OOC S720T,1D MORTGAGE
<br />SEWERAGE SYSTEM REVEIV'LT,?' BONAS, OF THE C=L Oi N0RTH
<br />OLM.S'TF•D UNDER SC-CTION 12, ARTICLE XVIII OF TliE CON-
<br />STI`l'UTION OF '1'FIE STl1TE OF OHIO FOR THE T''?JRPOSE Ob' CON-
<br />STRUCTIIJG IMPROVEMENTS TO T1TE NUNICIPAL Sl114TTARY `" ' Wi':Rr1CrE
<br />SYSTEM; TO AU`.PHORIZE THE EXECUTION 0F n MoRTr.lrr or :;AID
<br />.;y,;TEM AND THE EXTEPdSIONS AND IhPROVLP5;NT;? AND
<br />?l'HE RE.'VENUFS TffI:i2EOF TO c;J?C IT, SAID BOiAIDS; T0 DEFT12 TIiF
<br />TERMS OF A FRANCHISL UPFDI;R WISICFi, IN CASE 0F FOF,T-
<br />CIASURE, TIiC YIJRCHEI?`'?I':R MlIY On?Rl1'1.'E SAID S1'STI:Pd; Al`J'J T0
<br />PROVIDE, IN EVENT OF DLTAIJUI', I'OF THE APPOINl'T,C:NT Or A
<br />RECEIVER TO ADMIIVISTER SAID a"YS'I'EM.
<br />(am-A
<br />tiIIEREAS., the City of North Olmsted (herein ca.lled tne "Municiz)slity" )
<br />now owns and operates as a*public utility (hereinafL-er referred to as the "Utility")
<br />a sewerage system and a sewage treatruent plant, the services#,of wr.ich are and are to
<br />be supplied to persons and corporations w;thir, and without the cnrporate limits of
<br />the bfunicipality; and
<br />44MFtEAS, the City now ha,s outst?.r.ding certain Firs ? Nortga?e Sewera ;e
<br />System Revenue Bonds dated Novem'ber 11 1960 (hereinafter ca,lled tle"Outstandinp,
<br />Issue") Which were initia]1y issued in the sulm of ?i,525,000, saia bonas being
<br />authorized by Ordinance No. 3146 pa.ssed Noye:~:ber 15, 1960, maturir.? on T_,,,.:cember
<br />first f'rom 1964 to 1990, inclusive, and pres:ntly outstandin? ir the amount of
<br />$1,510,000; and being secured by the prior pledge of revenues of said sewerage
<br />system and by a first mortgage on all the property of the system owned at the
<br />time said mortgage was executed or thereafter acquired, as evidenced by a trust
<br />indenture executed by the City to The Ohio Citizens Trust Compa,ny as trustee
<br />(hereinafter called the "Prior Mortgage") dated 1`Jovember l, 1960 and and
<br />recorded in Volume 10435, Iage 390 of Real Property Mortgage Records of Cuyahoga
<br />County; and •
<br />WELEXAS, in ord.er to construct improvements to the Utility, including the
<br />construction of a sewage lif't station (herein called the "Project"), Council
<br />has determined it to be necessary to issue and sell additional mortgage revenue
<br />bonds in accordance with Article XVIII, Section 12 of the Coizstitution of Ohio,
<br />which bonda (hcrein called the "Improvement Eonds" or "Bonds") are to be secured
<br />by the mortra,-,e hereinat`ter provided for (hereinafter referred to as the "Mortgage")
<br />unon the rroperties and revenues of the Utility subordinate only to the lien
<br />t;liercon of tlie Prior MortgaGe, and by a franchi3e to become effective in the event
<br />of foreelosure of the Morteage;
<br />Section l. Sewerage System a Utilit;f - A.uthoriza tior. of ?,,123 , 000 of Improvement
<br />Donds, Use of Proceeds -- The Council of the Municipality hereby finds and
<br />determines tha.t the municipal sewerage system hereinbefore descrioed ha,s been, arul
<br />shall hereafter be, operated as a public utility, including all extensions of and
<br />improvements to said system, that, prior to the issuance of the Improvemnt }3onds,
<br />rates and charges for the services of said Utility have been determi.ned and fixed
<br />by Council in an amounto sufficient to pay the costs of operating and maintaining
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