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HomeMy WebLinkAboutOrdinance 1072 ORDINANCE NO. ZZ AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF EXTENSIONS AND ADDITIONS TO THE MUNICIPAL SEWER SYSTEM OF THE CITY OF FAYET t ILLS, ARKANSAS , ANBD FOR THE ISSUANCE OF SE.•7ER REVENUE BONDS .T0 PAY FOR THE SAME, AND DECLARING AN MtZPGENCY. WHEREAS, the City Council of the City of Fayetteville , Arkansas, hereinafter sometimes called the "Council, " has determined to assist in the construction of additions and extensions to the sanitary sewer system now serving the City in order to provide sewage facilities for properties not presently served, and, I%MEP.EAS , the Council has caused plans to .be prepared by Yoe and Mahaffey, consulting engineers, which show that the estimated cost of the proposed additions and extensions to the City is Eighteen Thousand Dollars ( 5118; 000. 00 ) , which the City can secure from the issuance and sale of sewer revenue bonds in that amount ; and, ;MEREAS, under the provisions . of Section 10 of , Ordinance No . 892 of the City of Fayetteville passed and approved on March 4, 1946, under which ordinance the City of Fayetteville issued its " City of ' Fayetteville, Arkansas , Sewer Revenue Bonds" of 1946 ; the City of Fayetteville reserved the right to issue additional bonds to ba payable from the revenues of the system to finance or pay the cost of construction of further extensions , betterments and additions to the system pro— vided only that the gross revenues derived from the system for the fiscal year then next preceding shall have been sufficient -to provide for all costs of opera— tion; repair and maintenance of the system and leave . a balance equal to at least 120 per centum of the aggregate of ( a ) the principal and interest payment for such (� year on total bonds then outstanding, and the fiscal agency ', s charge therefor ; (b ) One year ' s interest on the total issue of such additional bonds proposed to be issued ; ( c ) an amount of principal of such additional bonds for . one year computed by dividing the total amount of such issue by. the number of years to the final maturity date of such bonds, and , VREREA$, under the terms of Section 6 of Ordinance No . 892 the fiscal year is established as the calendar year and the last preceding fiscal year immediately preceding the issue proposed to be issued under this ' ordinance is the year 1953, and WHEREAS , the City has had an audit prepared by Scarbrough and Myers, an independent firm of Certified Public Accountants whose principal place of business is Fayetteville, Arkansas , which audit is now . on file in the office of the City MICROFILMED DATE OCT 6 1978 REEL_ -2- Clerk of the City of Fayetteville , A,rkansas, rfrom. which it appears that the re- quirements for the issuance of additional bonds under Section 10 of said Ordinance No. 892 has been fully net and complied with and that the City of Fayetteville is duly authorized to issue the bonds herein contemplated, and, WHEREAS , the Council by Ordinance No . 1046 passed and approved on March 23, 1953, fixed minimum rates to . be charged for the services to be rendered by the additions and extensions to the system, and WHEREAS, said plans have been duly filed with the City Clerk of the City of Fayetteville and copy of the same has been referred to the planning board of the City of Fayetteville , and report of the planning board has been filed with the City Clerk of the 'City of Fayetteville finding that the plans for the extensions and additions hereinafter more fully described are in conformity with the general sewer plan for the City of Fayetteville , Arkansas . N0:1, THEREFORE, BE .IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARIW4SAS ; Section 1. The City Council does hereby approve the plans for additions and extensions prepared by the Yoe and Mahaffey and now on i`lle with the City Clerk and does hereby determine to assist in the construction of said additions and exten- sions as therein described. ( The additions and extensions) together with the Municipal Sewer System as now constructed, is sometimes hereinafter referred to as the "System" ) . Section 2. A brief and general description of the proposed improvement is : the laying of sewer mains to be connected to the system of the City of Fayette- ville for the purpose of servicing the area bounded by West Maple Street on the North; Razorback Road on the East , West Center Street on the South, and the 'lest city boundary on the West . Section 3 . The Sewer Committee as now or may hereafter be constituted, is hereby authorized, ordered and directed to sell the bonds hereinafter authorized under such terms that the Cit; shall receive par and accrued interest to the date of delivery of said bonds and the purchaser shall be required to pay the costs of printing the bn nds and for the approving opinion of an attorney of their own selection. Said sewer committee shall also have control and jurisdiction of the construction of the. improvement hereinabove mentioned and after its construction , ' it shall be a part of the Municipal Sewer System under the management of said Committee and Sewer Improvement District No . 2. Section 4. The Council hereby finds that the price of par and accrued interest to the date of delivery of said bonds, the purchaser being required to pay for the printing of the bonds and the approving opinion, is a fair price and one allowed by law, and the Sevier Committee as hereinabove set forth is autho- rized and directed to consummate said sale . Section 5 . That under authority of the General Statutes of the State of Arkansas, and particularly Act No . 132 of the Acts of the General Assembly of the State of Arkansas for the year 1933 as amended ( sometimes hereinafter referred to as "Act 132 as amended" ) sewer revenue bonds of the City be issued in the total amount of Eighteen Thousand Dollars ( $18, 000. 00 ) , the proceeds of the sale of which shall be used to provide funds to pay one-half of the cost of the new improvement including engineering, legal, interest during construction and for six months after completion of construction, and other necessary expenses ; that said bonds be designated "City of Fayetteville , Arkansas 3% Sevier Revenue Bonds of 1954. " to be dated as of October 1, 1954, numbered from 1 to 65 , both inclusive ( sometimes hereinafter referred to as "Bonds" ) to be in denominations of $100. 00 each, except bonds numbered 3, .6. 9 ; 12, 151 19, 23, 273 32, 37, 421 47, 52, which are in denominations of $500 . 00 each; and bonds nwnbered 53, 54, 561 580 600 63 and 65, which shall be in. denominations of $1, 000. 00 each to be callable as here- inafter set fcrth, . and to mature in numerical order on the first day of October in each of the following years and in the £ollovring amounts, to-wit : YEAR BOND NOS , AMOUNT 1955 1, 2, and 3 $ 700 . 00 1956 4, 5, and 6 700 . 00 1957 7, 6, and 9 700. 00 1958 10, 11 and 12 700. 00 1959 13, 14 and 15 700. 00 1960 16 to 19 , inclusive 800 . 00 1961 20 to 23, inclusive 800. 00 1962 24 to 27, inclusive 800 . 00 1963 21 to 32, inclusive 900. 00 1964 33 to 37 , inclusive 900000 1965 38 to 42, inclusive 900. 00 1966 43 to 47, inclusive 900. 00 1967 48 to 52, ,inclusive 900. 00 1968 53 1, 000. 00 1969 54 1, 000. 00 1970 55 and 56 11100. 00 1971 57 and 58 15100. 00 1972 59 and 60 1, 100. 00 1973 61, 62 and 63 11200. 00 1974 64 and 65 1, 100. 00 .4- Said bonds shall bear interest at' the rate of 3% per annum, interest payable semi-annually beginning on April 1, 1955 , and semi-annually thereafter on the first day of October and April of each year ; the bonds shall be signed by the Mayor and City Clerk and sealed with the corporate seal of the City; the interest on the bonds shall be evidenced by coupons thereto attached and the coupons shall be signed by said mayor by his facsimile signature and the mayor shall by the execution of the bonds to which said coupons are attached, adopt as and for his own proper signs- ture his facsimile signature appearing on said coupons. The bonds and coupons shall be payable in lawful money of the United States of America at the office of McIlroy Bank, Fayetteville , Arkansas . The bonds, together with interest thereon shall be payable solely out of sewer revenue bond fund of 195# as hereinafter defined and shall be a valid claim of the holder thereof only against such fund and the amount of the revenues pledged to said fund, which amounts of said revenue is hereby pledged and mortgaged for the equal and ratable payment of the bonds and the interest thereon, and , shall be used for no other purpose except as hereinafter set out . That said bonds and coupons shall be in substantially the following form: UNITED STATES OF AMERICA ' STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE 3% Sewer, Revenue Bonds of 1954 No . KNOW ALL MEN BY TFFESE PRESENTS : That the City of Fayetteville, in the County of tiashington, State of Arkansas, for value received hereby promises to pay, solely from the special fund provided therefor as hereinafter set forth, to bearer , the sum of DOLLARS on the first day of October , 19_ with interest thereon at the rate of three per centum4( 3%) per annum from date until paid, payable on April 1, 1955, and semi- annually thereafter on the first day of 6ctober and April of each year , upon presentation and surrender of . the annexed coupons as they severally become due . Both principal and interest hereon shall be payable in lawful money of the United States of America, at the office of the McIlroy Bank of Fayetteville, Arkansas. .5- This bond is one of a series of bonds aggregating Eighteen Thousand Dollars ( ^$18 , 000. 00) , all of like tenor and effect except as to number, denomination, and maturity, dated as of October 1. 1954, numbered from l to 65, both inclusive, and issued for the purpose of 'extending and improving the Fayetteville municipal sein- er system (hereinafter called the "System" ) . ' This bond and4the series of which it forms a part are issued pursuant to and in accordance with the provisions of the laws and Constitution of the State of Ark- ansas , and. particularly got No . . 132 of the Acts . of the General Assembly of the State of Arkansas for the year 1933 , as amended, , and do not constitute an indebtedness of 'the City of Fayetteville within any constitutional or. statutory limitation. Said bonds are payable solely from a ' fixed amount of the revenues from the System, which amount shall 'be' sufficient to pay the principal of and interest on , the bonds as the same become due and payable . Said amount has been duly set aside and pledged as a special fund for that purpose and identified as the " Sewer Revenue Bond Fund of 1954" created by Ordinance' No . LUfZ-duly adopted by the City Council of the City of . Fayetteville on 'Seph402e, 1954, under which this bond is authorized to be issued, and the said City of Fayetteville has fixed. and has covenanted and agreed to maintain rates for sewer services which shall be sufficient at all times to pro- vide for the creation 6f a separate depreciation fund for necessary replacements to . said System , to provide for the payiaent of the reasonable expenses of operation and, maintenance of said System, and to provide for the payment of the principal of and interest on these bonds as the same become due and payable and of the outstanding balance of Sewer Revenue Bonds issued by the City under. dates 'of March 4, 1946 , and May 1, 1953. . This bond is expressly made negotiable by . the statutes under which it is issued, and is issued with . the 'intent that the ' lams of the State of Arkansas shall govern the construction thereof. The bonds of this issue shall be callable for payment prior to ,maturity in inverse numerical order at par and accrued interest on any interest paying date with funds from anti source. In the event a call is made, the City small publish notice of such call for red.gmpiion once • a week for two weeks in the Northwest Arkansas Times) a newspaper published in the City of Rayetteville , Arkansas, giving the number and maturity .of each bond being called, the first publication to be at least fifteen days prior to the date fixed for redemption, and after the date fixed � . for redemption, each . bond so . called fall cease to bear interest , *provided funds for C ' _6. its payment are on deposit with the paying 'agent at that time. IT IS IEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and be performed pursuant to and in the issuance of this bond have existed, happened and been performed in due time, form and manner , as required by law, and that sufficient of the income and revenue which is deemed to be derived from the -operation of said System has been pledged to and will be set aside into said special fund for the pagmnnt of the principal of and interest on said bonds . This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly signed by the McIlroy Bank of Fayetteville , Arkansas . IN WITNESS ,MREOF, the City of Fayetteville, Arkansas, by its City Council, has caused this bond to be signed by the Mayor and City Clerk thereof and sealed with the corporate seal of said' City, and has caused the coupons hereto attached to ' be executed by the facsimile signature of said 11ayor, all as of the first . day of October, 1954. Attest : CITY OF FAYETTEVILLE, ARKANSAS City Clerk Mayor ' (Seal) ` y (Form of Coupon) No . On the first day of (April ) (Obtober ) , 19_ the City of Fayetteville , Wash- ington County, Arkansas, unless the bond to which this coupon is attached is sooner called for payment, promises to pay to bearer the sum of Dollars , solely out of the fund specified in the bond to which this coupon appertains, at the office of the 14cIlroy Bank of Fayetteville, Arkansas, in lawful money of the United States of America, being interest then due on its 3% Sewer Revenue Bond of 1954 dated Oct.6ber 1, 1954, and numbered CI"'Y OF FAYETTEVILLE, ARKANSAS By. Mayor . (All coupons shall be for six months ' interest . The Mayor ' s signature may be litho- grapher or engraved. ) On the back of said bonds is to appear the following : CERTIFICATE This is one of the 65 bonds aggregating w18, 000. 00 described within, 11CILROY BANK OF FAYETTEVILLE, ARKANSAS, • Fayetteville, Arkansas Trustee 1954. By .7. ' Section 6. The rates for the sewer service fixed by Ordinance No . 1046 of the City of Fayetteville shall never be reduced until all the bonds of this issue and all coupons thereto attached have been paid in full and shall, when necessary, be increased in an amount sufficient to provide for the maintenance of the Hinds hereinafter described. Section 7. ' By the terms of Ordinance No . 892, the City created a Sewer Revenue Bond Fund and in Section ,10 of said. Ordinance No . 892, the City .authorized the issuance of additional' bonds to finance the cost of constructing additional extensions and improvements to the System if gross revenues for the preceding fiscal year shall have been sufficient to provide all costs of operation, mainten- ance and repair of the system and leave a balance equal to 4120 per centum of principal and interest payments for_ such year , on all. bonds then outstanding and the fiscal agency ' s charges therefor ; one year ' s interest on the total issue of such additional bonds then proposed to b e issued ; and one year ' s average m3tuuity of the principal amount of the proposed issue and that the annual audit for the year 1953 of the operation of the sewer system shows a net profit more than suffi- tient to meet these , requirements, and the City has the authority to set up from said net profit a bond fund for this issue . Section 8. Sewer Revenue Bond Fund of 1954. ( a ) The balance of the income and revenues of the system after making the required payments into said sewer operation and maintenance fund as created by said Ordinance No. 892, are hereby declared to be the net revenues and income from said System. There is hereby created and so long as any of the bonds hereby authorized are outstanding , there shall be maintaineda: special fund to be known as the "Sewer Revenue Bond Fund of 1954" (Sometimes hereinafter referred to as the "Sinking Fund" ) , into which there shall be set aside from said income and revenues such portion thereof as tidll be sufficient to pay the interest on said bonds as the same becomes due and to pay the necessary fiscal agency charges for pajing bonds and interest and to pay the principal of , said• bonds at or before maturity as herein provided, and to create a margin for safety. In order to provide for payment of principal and interest and margin for safety there shall be paid into said sinking fund each month one-fifth of the next semi-annual interest requirementsand one-tenth of the next principal require- ment until there shall be accumulated- in said fund an amount equal to current principal and interest requirements and fiscal agency fees and an amount in re- serve equal to one year ' s principal and interest and fiscal agency charges, at .8. which time payments into said sinking fund shall be reduced to one- sixth of the next semi-annual interest payment and one-twelfth of the next prinicpal payment, provided however that no further payments need be made into said sinking fund after arra so long as. such amount of the bonds shall have been retired that the amount then held in said sinking fund , including the reserve , is equal to the entire amount of the interest and principal that will have accrued and become due at the time of ' the retirement or maturity of all the bonds then remaining outstanding . The undertaking to transfer and pay the prescribed amounts from said net pro- fits derived from the operation of the system into said sinkinc fund shall be cumulative so that in the event the net income and revenues during any month are not adequate to make the required transfer in 1:a -. ,rent or if for any other reason there shall be a failure to make such transfer in payment) . the amount of deficiency shall be made up from the first available net income and * revenues thereafter received and the same shall be in addition to amounts otherwise. provided. to be transferred and to be paid into said sinking fund. (b ) Said sinking fund shall be used solely and only and is hereby pledged for the purpose of paying the interest on and accomplishing the retirement of the bonds herein authorized. Withdrawals and remittances to the place or places of payment of the principal and interest shall be made in ample time to meet the pay- ments of such principal and interest , which are as follows : Principal Interest Year Oct . 1 April 1 Oct . 1 Total 1955 700. 00 c270. 00 x$270 . 00 1$1, 240. 00 1956 700 . 00 259 . 50 259. 50 1, 219 . 00 1957 700. 00 249 . 00 249 . 00 13198. 00 1958 700. 00 238 . 50 238. 50 1, 177. 00 1959 700eOd 228. 00 228 . 00 1, 156 . 00 1960 800. 00 217 . 50 217. 50 1, 235 . 00 1961 800. 0.0 205 . 50 205 . 50 1, 211. 00 1962 800. 00 193 . 50 193 . 50 11187. 00 1963 900 : 00 181. 50 181. 50 15263 . 00 1964 900. 00 168. 00 168. 00 1, 236 . 00 1965 900 . 00 154. 50 154.. 50 1, 209 . 00 1966 900 . 00 141 . 00 141. 00 11182 . 00 1967 900 . 00 127. 50 127. 50 1, 155 . 00 1968 13000 . 00 114. 00 114. 00 1, 228. 00 1969 15000. 00 99 . 00 99 .00 11198 . 00 1970 10100. 00 84. 00 84. 00 1, 268. 00 1971 15100 . 00 67. 50 67 . 50 11235 . 00 1972 1, 100. 00 51 . 00 51. 00 1, 202. 00 1973 1, 200 . 00 34. 50 34. 50 1, 269 . 00 1974 1, 100 . 00 16 . 50 16 . 50 1, 133 . 00 .9- - It shall be the duty of the Treasurer to deposit in the Sewer Revenue Bond Fund of 1954 in the depository for the revenues of said system on the first day of each month after the issuance of the bonds herein authorized the respective sums set out above, which are required to be withdrawn from the said net profits and to be paid into the sinking fund . Reserves in the sinking Lfund in excess of current principal and interest requirements are hereby designated as the "Reserve Fund . " Withdrawals and disbursements may be made from said reserve fund to meet the payments of interest or principal to whatever extent funds in sinking funds are insufficient for that purpose, or for meeting special and unforeseen emergencies or repair or replacement work which could not have been anticipated or which is essential for the continued operation of the system and for the payment of which there are no other Hinds available . Provided, however, that if withdrawals are made on said reserve fund that payments into the Sewer Revenue Bond Fund shall be equal to one- fifth of the next interest payment and one-tenth of the next principal payment, until said reserve fund is again equal to one year ' s principal and interest payment in advance at which time payments shall be reduced to one- sixth of the next interest requirements and one-twelfth of the next principal requirements. Section 9 . ' Nothing in this Ordinance is intended to or shall be construed to• impair in any manner or degree the contract of the City with the holders of its Sewer Revenue Bonds , of 1946 . Section 10. , Nothing in this Ordinance shall be construed to prevent the issuance by the City of additional bonds payable from the revenues of the system to finance or pay the cost of constructing any further extensions , betterments or additions to the 'system provided , however, that the City shall not authorize or issue any such additional bonds so long as any of the non-redeemable .4% sewer revenue bonds dated November 1, 1935 or any of the bonds issued under the terms of Ordinance No . 892, or any of the Sewer Revenue Bonds of 1953 are outstanding, unless the gross revenues derived from the system for the fiscal year then next preceding shall have been sufficient to provide for all costs of operation, repair and maintenance of the system and leave a balance equal to at least 120% of the aggregate of ( a ) the principal and interest payment for such year on total bonds then out- standing and the fiscal agency ' s charges therefor . -io- ( b ) One year ' s interest on the total issue of said additional bonds proposed to be issued, and ( c ) An amount of principal for such additional bonds for one year computed by dividing the total amount of such issue by the number of years to the final maturity date of such bonds. Section 11. The bonds in the principal amount of $18, 000. 00 shall be delivered to the purchaser upon payment by such purchaser in - cash of the face amount of said bonds together with accrued interest on said bonds to the date of delivery and satisfactory proof of the payment of the cost of printing said bonds and the opin- ion of the approving attorney. The money received for accrued interest shall be paid into the Sewer Revenue Bond Fund of 1954 and the balance shall be deposited in a special fund to be known as Construction Fund Account in a bank in the City of Fayetteville carrying federal deposit insurance, which bank shall give adequate security for said deposit. Funds in the Construction Fund Account shall be used solely for the purpose of paying part of the cost ' of the improvements and exten- sions according to the plans thereof, which are now on file, together with the necessary engineering , legal and other expenses incidental to -such construction , and except for legal and engineering costs and administrative expenses, shall be paid out only on engineering estimates and the depository shall be notified of this requirement. Section 12. For and in consideration of the purchase and acceptance of the bonds authorized by this ordinance and to facilitate their payment , with interest, the City agrees to the following terms : _ (a ) None of the facilities or services afforded by the System shall be furnished without a reasonable charge being made therefor . In the event�;;nat the City or any department , agency, or instrumentality thereof shall avail itself of the facilities or services afforded by the System, the reasonable value of the services and facilities so afforded' shall be 'charged against the City or such department , agency, or instrumentality, and shall be paid for as the charges there- for accrue . The revenues so received from the City shall be deemed to be revenues derived from the operation of the System; provided, however, that nothing herein shall be construed as requiring the City or any department, agency, or instrumental- ity thereof to avail itself of the facilities or services afforded by the System. 1 -11- (b ) The City will maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost . ( c ) The City Treasurer shall be the custodian of the revenues derived from the System and his present bond shall be so endorsed. ( d) All revenues from the System shall be deposited in such depository or depositories as may be lawfully designated from time to time, subject , however, to the giving of security by each such depository as now or as hereafter may be required , and provided each such depository shall hold membership in the Federal Deposit Insurance Corporation . All deposits shall be made in the name of the City and be so designated as to indicate the particular fund to which the revenues belong. Payments from each fund set out in this ordinance shall be made by check or voucher signed by two duly designated persons and drawn on the depository in which the moneys in said fund shall have been deposited, and each such check or voucher shall briefly specify the purpose of the expenditure. ( e ) The bonds, together with interest thereon are not general obligations of the City nor do they constitute an indebtednes ' of the City within the meaning of any constitutional or statutory provision or limitation, but shall be payable solely out of the Bore Fund and shall be a valid claim of the holders thereof only against said ?lord, and the amount of the revenues pledged to said Fund, which Fund is hereby pledged for the equal and ratable payment of the bonds issued by . authority of this ordinance and shall be , .used for no other purpose than to pay the principal and interest of the bonds as the same mature, except as provided in this ordinance . ( f ) The System shall be operated upon a fiscal year basis, beginning January 1 of each year and ending and including the following December 31. ( g ) It is convenanted and agreed by the City with the holder or holders of the bonds, or any of them, that it will faithfully and punctually perform all duties with reference to the System required by. the Constitution and statutes of the State of Arkansas, including the .making and collecting of reasonable and sufficient rates lawfully established for services rendered by the System and applying the revenues therefrom to the respective funds herein created. ( h) So long as any of the bonds are outstanding, the City +.Mill not mortgage, pledge , or other*.•rise encumber the System or any part thereof or any revenues there- -1z- from, _ except as herein provided, and will not sell, lease, or otherwise dispose of any substantial portion of .the same . The obligations of the City set out in this ordinance , the pledge of revenues, and the City ' s agreement not to mortgage, pledge, or other:aise encumber the System, shall be made a matter of public record. 4 by having a certified copy of this ordinance recorded as a mortgage in the office of the Circuit Clerk and Ex-Officio Recorder. of Washington County, Arkansas . (i ) The City will keep proper books of records and accounts ( separate from all other records and. accounts ) in which complete and correct entries shall be made of any transactions relating to the System. The City agrees to have these records audited by an independent certified public accountant at least once each year , and it shall furnish the Trustee a copy of this audit . In the event that the City fails or refuses to make the audit, ' the Trustee may have/ the Audit made , the cost thereof to be charged to the cost of operation. ( j ) I£ there be any default in the payment of either the principal of or the interest on any of the bonds, the holder or holders of any of the bonds may enforce any mortgage lien granted by statute and may b�j proper suit compel the performance of the duties - of- the officials of the . City, as set forth in the statutes authorizing the bonds. If, there be default in the payment of the principal of or interest on 0 the bonds or if the City shall fail tto keep any other obligation which it herein. assumes, and such default shall continue for thirty days thereafter , any court having jurisdiction in any proper adtion, which may be instituted either by the Trustee on behalf of all the bondholders , or by the holder of a bond in default , may appoint a receiver to administer the System on behalf of the City, with power to charge and collect rates sufficient to provide for the expenses of the receiver- ship, the payment of the bonds and interest thereon, and for the payment of the operating e..-penses, and to apply the income and revenues in conformity with said statutes and this ordinance providing for the issuance of said bonds, but when all defaults are cured, the receivership shall be ended and the management and control of the System restored to the City. ( k) The City further covenants and agrees that if default is made in the pay- ment of any bond or coupon, or if the City fails to meet any sinking fund require- ments, the holder of such bond may declare that bond immediately due and. payable and in default and either the Trustee on behalf of all the bondholders or any bond- holder for himself may institute suit to enforce the pledge lien herein granted .