(A) (1) To pay the cost of acquiring and constructing such water supply and distribution system, including the payment of engineering, financial, legal, and other expenses incident thereto and incident to the issuance of said bonds, including interest on said bonds to and including January 1, 1954, it is hereby determined that the village shall borrow the sum of $130,000, and that revenue bonds be issued therefor under the provisions of Public Act 94 of 1933, being M.C.L.A. §§ 141.101 through 141.138, as amended.
(2) Wherever the words THE SYSTEM or SYSTEM are used in this subchapter they shall be understood to mean the complete water supply and distribution system of the village, acquired under the provisions of this subchapter and all extensions and improvements hereafter constructed.
(3) Wherever the words REVENUES and NET REVENUES are used in this subchapter, they shall be understood to have the meaning as defined in Public Act 94 of 1933, § 3, as amended.
(B) (1) Said bonds shall be designated water supply system revenue bonds, and shall be, not general obligations of the village, but revenue bonds, payable out of the net revenues of the system after provision has been made for payment of expenses of operation and shall consist of 130 bonds of $1,000 each, numbered in direct order of maturity form 1 to 130, inclusive, dated July 1, 1952, and payable serially as follows:
(a) Two thousand dollars January 1 of each of the years 1956 to 1965, inclusive;
(b) Three thousand dollars January 1 of each of the years 1966 to 1975, inclusive;
(c) Four thousand dollars January 1 of each of the years 1976 to 1980, inclusive;
(d) Five thousand dollars January 1 of each of the years 1981 to 1986, inclusive; and
(e) Six thousand dollars January 1 of each of the years 1987 to 1991, inclusive.
(2) Said bonds to bear interest at a rate or rates not exceeding 4% per annum, payable on January 1, 1953, and semiannually thereafter on July 1 and January 1 of each year, both principal and interest to be payable in lawful money of the United States of America at a bank or trust company to be designated by the purchaser of the bonds.
(3) Outstanding bonds of this issue may be called for redemption prior to maturity, at the option of the village, in inverse numerical order, on any interest payment date on or after January 1, 1958, at par and accrued interest plus a premium as follows:
(a) Forty dollars on each bond called for redemption on or before January 1, 1963;
(b) Thirty dollars on each bond called for redemption after January 1, 1963, but on or before January 1, 1968;
(c) Twenty dollars on each bond called for redemption after January 1, 1968, but on or before January 1, 1973;
(d) Ten dollars on each bond called for redemption after January 1, 1973, but on or before January 1, 1978;
(e) Five dollars on each bond called for redemption after January 1, 1978, but on or before January 1, 1983; and
(f) No premiums shall be paid on bonds called for redemption after January 1, 1983.
(4) (a) Thirty-days’ notice of the call of any bonds for redemption shall be given by publication in a paper circulated in the state which carries, as part of its regular service, notices of sale of municipal bonds, and, in case of registered bonds, 30 days’ notice shall be given by mail to the registered address.
(b) Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem said bonds.
(5) Said bonds may be registered as to principal only in the manner and with the effect set forth on the face thereof, as hereinafter provided.
(6) Said bonds shall be signed by the President and countersigned by the Village Clerk, and shall have interest coupons attached bearing the facsimile signature of the Village Treasurer.
(C) Said bonds and the attached coupons shall not be a general obligation or indebtedness of the village, but shall be payable solely from the net revenues derived from the operation of the system; and, to secure such payment, there is hereby created a statutory first lien upon the whole of the net revenues of said system, to continue until the payment in full of the principal and interest on said bonds.
(D) (1) The holder or holders of said bonds or coupons representing in the aggregate not less than 20% of the entire issue than outstanding may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce the statutory first lien upon the revenues of said system and may by suit, action, mandamus, or other proceedings, enforce and compel performance of all duties of the officers of the village, including the fixing of sufficient rates, the collection of revenues, the proper segregation of the revenues of the system, and the proper application thereof; provided, however, that the statutory lien upon said revenues shall not be construed to compel the sale of the system.
(2) If there be any default in the payment of the principal of or interest upon any of said bonds, any court having jurisdiction in any proper action may appoint a receiver to administer and operate said system on behalf of the village, and under the direction of said court, and by an with the approval of said court to perform all of the duties of the officials of said village, more particularly set forth herein and in Public Act 94 of 1933, being M.C.L.A. §§ 141.101 through 141.138, as amended.
(3) The holder or holders of any such bonds or any coupons therefrom shall have all other rights and remedies given by said Public Act 94 of 1933, being M.C.L.A. §§ 141.101 through 141.138, as amended, for the collection and enforcement of said bonds and the security therefor.
(Ord. 201, passed - -)