RESOLUTIONS PASSED IN 2021

#1-2021

WHEREAS, the Lapel Town Council needs to set the amount for mileage reimbursement for employees for use of their personal vehicles for work related trips.

NOW THEREFORE BE IT RESOLVED, that the Lapel Town Council does hereby establish the mileage rate as:

.56 cents per mile effective date of January 01, 2021 per IRS Standard Mileage Rates.

DULY ADOPTED by the Council of the Town of Lapel on the 21st day of January, 2011 at which meeting a quorum was present.

 

 

#2-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA APPROVING THE PURCHASE OF AN AED AND CORRESPONDING EQUIPMENT FROM STRYKER AND RELATED EQUIPMENT FROM PENN CARE AND THE DONATION OF SAID AED AND ALL EQUIPMENT TO THE LAPEL STONEY CREEK TOWNSHIP FIRE TERRITORY

WHEREAS, the Lapel Stoney Creek Township Fire Territory ("Stoney Creek") is the fire department that services the Town of Lapel ("Town" or "Lapel"); and,

WHEREAS, the Town desires to utilize funds donated to the Town and held in the Cascadden Fund to purchase an AED and all corresponding and related equipment ("AED and Equipment") and donate it to Stoney Creek; and,

WHEREAS, the estimated cost of the AED and Equipment falls within the small purchasing guidelines as set forth in Indiana Code I.C. 5-22-8-2 as the total cost of the AED and Equipment is less than $50,000; and,

WHEREAS, furthermore, Stryker is the sole source for the AED as set forth in Exhibit A attached hereto and incorporated herein; and,

WHEREAS, Indiana Code I.C. 5-22-10-13 allows a purchasing agent to "award a contract for a supply where there is only one (1) source for the supply and the purchasing agent determines in writing that there is only one (1) source for the supply."

NOW, THEREFORE BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by reference.

Section 2: That the Town determines that Stryker is the sole source for the AED.

Section 3: That the Town further determines that the total purchase cost of the AED and Equipment falls within the small purchasing guidelines set forth in Indiana Code I.C. 5-22-8-2.

Section 4: That the Town authorizes the purchase of the AED and awards the contract to Stryker in the amount of approximately $32,554.12.

Section 5: That the Town authorizes the purchase of related equipment from Penn Care in the amount of approximately $1,205.00.

Section 6: That the AED and Equipment, as purchased by the Town from Stryker and Penn Care, shall be paid for from the Cascadden Fund.

Section 7: That the AED and Equipment, as purchased by the Town from Stryker and Penn Care, shall be donated to the Lapel Stoney Creek Township Fire Territor for the use and benefit of Stoney Creek which services the Town of Lapel.

Section 8: This Resolution shall become effective upon the adoption and signature of the Town Council of the Town of Lapel and publication as may be required by law.

Approved by the Lapel Town Council this 18th day of February, 2021.

 

 

#3-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA APPROVING THE TOWN OF LAPEL COMPREHENSIVE PLAN

WHEREAS, Indiana Code I.C. 36-7-4-500 (500 Series - Comprehensive Plan) sets forth the statutory requirements for a comprehensive plan; and,

WHEREAS, the Town of Lapel ("Town" or "Lapel") determined it was necessary to amend its current comprehensive plan and adopt a new Comprehensive Plan for the Town of Lapel ("Lapel Comprehensive Plan"); and,

WHEREAS, the Town put together a steering committee who worked alongside the planning team to gather public input and develop the Lapel Comprehensive Plan; and,

WHEREAS, the Lapel Plan Commission held public hearings on the Lapel Comprehensive Plan on March 11th, 2021 and April 14th, 2021 pursuant to I.C. 36-7-4-507; and,

WHEREAS, following the public hearing, the Lapel Plan Commission voted to approve the Lapel Comprehensive Plan pursuant to I.C. 36-7-4-508; and,

WHEREAS, the Lapel Plan Commission has certified the comprehensive plan to the Lapel Town Council; and,

WHEREAS, the Lapel Town Council now desires to consider the comprehensive plan for approval.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Secton 1: That the recitals stated herein are hereby incorporated by referenced.

Section 2: That the Lapel Comprehensive Plan is for the promotion of the public health, safety, morals, convenience, order or the general welfare and for the sake of efficiency and economy in the process of development as required by I.C. 36-7-4-501.

Section 3: That the Lapel Plan Commission has prepared the Lapel Comprehensive Plan in accordance with I.C. 36-7-4-500 Series.

Section 4: That the Lapel Comprehensive Plan is hereby approved and adopted.

Section 5: That upon approval of the Lapel Comprehensive Plan by the Lapel Town Council, pursuant to I.C. 36-7-4-509 the Clerk-Treasurer is required to place one copy of the Lapel Comprehensive Plan on file with the Madison County Recorder.

Section 6: That this Resolution and the Lapel Comprehensive Plan shall become effective upon the adoption and signature of the Town Council of the Town of Lapel.

Approved by the Lapel Town Council this 15th day of April 2021.

 

 

#4-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA ADOPTING A SMALL PURCHASING POLICY FOR THE TOWN OF LAPEL

WHEREAS, Indiana Code I.C. 5-22-8 sets forth the statutory requirements for small purchases for a governmental entity; and,

WHEREAS, small purchases are considered purchases under $150,000; and,

WHEREAS, I.C. 5-22-8-2 states that if the purchasing agent expects that the purchase will be less than $50,000, then the purchasing agent may make the purchase under the small purchase policies established by the purchasing agency or under rules adopted by the governmental body; and,

WHEREAS, if the purchase agent expects that the purchase will be more than $50,000 but less than $150,000 then the purchasing agent is required to follow the process set forth in I.C. 5-22-8-3, as may be amended from time to time; and,

WHEREAS, the Town of Lapel ("Town" or "Lapel") desires to adopt rules for the purchase of supplies under $50,000.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by referenced.

Section 2: That the following rules shall apply for the purchase of supplies under $50,000.

  1. Less than $1,000 - Department head consults with Clerk-Treasurer or his/her designee. Clerk-Treasurer or his/her designee can authrorize the purchase if funds are available. Purchase should be made from a standard vendor if applicable and available. All requests and authorizations must be in writing on a form provided by the Clerk-Treasurer.
  2. $1,000 - $4,999 - Department head consults with Clerk-Treasurer and Council liaison. Council liaison can authorize purchase upon confirmation and approval from Clerk-Treasurer that the funds are available. Purchase should be made from a standard vendor if applicable and available. The Clerk-Treasurer or Council liaison will notify the Town Council of the approved purchase. All requests and authorizations must be in writing on a form provided by the Clerk-Treasurer.
  3. $5,000 - $49,999 - Solicit at least 3 quotes from person/companies known to deal in the type of supplies being sought and present quotes to Town Council. Town Council must authorize purchase.

Section 3: That if the purchase is expected to be more than $50,000 but less than $150,000, then the purchasing agent shall follow the process set forth in I.C. 5-22-8-3 as may be amended from time to time.

Section 4: That this Resolution applies only to the purchase of supplies and does not apply to public works projects or professional service contracts or any other purchases as specifically excluded pursuant to I.C. 5-22-8.

Section 5: That the purchasing agents for the Town are the Clerk-Treasurer or his/her designee and the Lapel Town Council, individually or collectively, as more specifically set forth in Section 2 above.

Section 6: That this Resolution shall become effective upon the adoption and signature of the Town Council of the Town of Lapel and publication as may be required by law.

Approved by the Lapel Town Council this 17th day of June 2021.

 

 

#5-2021

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#6-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA AUTHORIZING THE TRANSFER OF FUNDS FROM THE CACADDEN ACCOUNT TO THE SIDEWALK REPAIRS ACCOUNT

WHEREAS, the Town of Lapel ("Town" or "Lapel") deems it necessary to transfer Seven Thousand Dollars ($7,000) from the Cascadden Account to the Sidewalk Repairs Account in order to provide the matching funds for the sidewalk repair projects; and,

WHEREAS, the transfer is necessary to bring the Sidewalk Repairs Account positive.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by reference.

Section 2: That the transfer of Seven Thousand Dollars ($7,000) from the Cascadden Account, Fund Number 446 001 240, to the Sidewalks Repairs Account, Fund Number 210 001 361, is approved.

Section 3: That this Resolution shall become effective upon the adoption and signature of the Town Council of the Town of Lapel and publication as may be required by law.

Approved by the Lapel Town Council this 17th day of June 2021.

 

 

#7-2001

A RESOLUTION ESTABLISHING THE POLICY BY WHICH MEMBERS OF THE LAPEL TOWN COUNCIL MAY PARTICIPATE BY ELECTRONIC MEANS OF COMMUNICATION

WHEREAS, P.L 88-2021 (HEA 1437), SEC. 5, amended I.C. 5-14-1.5-1 et seq. (Act), effective April 20, 2021 by amending I.C. 5-14-1.5-3.5 to prescribe new requirements by which members of the governing body of a public agency of a political subdivision may participate in a meeting by any electronic means of communication.

WHEREAS, a member of the governing body may participate by any means of communication that:

  • Allows all participating members of the governing body to simultaneously communicate with each otherl and,
  • Except for a meeting that is an executive session, allows the public to simultaneously attend and observe the meeting;

WHEREAS, the Act requires the governing body to adopt a written policy establishing the procedures that apply to a members participation in a meeting by an electronic means of communication and may adopt procedures that are more restrictive than the procedures established by I.C. 5-14-1.5-3.5(d); and,

WHEREAS, the Town Council (Council) is the governing body of the Town of Lapel, Indiana:

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF LAPEL, INDIANA:

Section 1. (a) The provisions of the Act, including definitions, apply to this resolution.

(b) This resolution shall be known as the "Electronic Meetings Policy" of the Council and applies to the Council and any committee appointed directly by the Council or its presiding officer.

Section 2. (a) Subject to Sections 3 and 5, any member may participate in a meeting by any electronic means of communication that: (i) allows all participating members of the governing body to simultaneously communicate with each other; and (ii) other than an meeting that is an executive session, allows the public to simultaneously attend and observe the meeting.

(b) A member who participates by an electronic means of communication: (i) shall be considered present for purposes of establishing a quorum; and may participate in final action only if the member can be seen and heard.

(c) All votes taken during a meeting at which at least one (1) members participates by an electronic means of communication must be taken by roll call vote.

Section 3. (a) At least fifty percent (50%) of the members must be physically present at a meeting at which a member will participate by means of electronic communication. Not more than fifty percent (50%) of the members may participate by an electronic means of communication at that same meeting.

(b) A member may not attend more than a fifty percent (50%) of the meetings in a calendar year by an electronic means of communication, unless the members electronic participation is due to:

  1. military service;
  2. illness or other medical condition;
  3. death of a relative; or
  4. an emergency involving actual or threatend injury to persons or property.

(c) A member may attend two (2) consecutive meetings (a set of meetings) by electronic communication. A member must attend in person at least one (1) meeting between sets of meetings that the member attends by electronic communication, unless the members absence is due to:

  1. military service;
  2. illness or other medical condition;
  3. death of a relative; or
  4. an emergency involving actual or threatend injury to persons or property.

Section 4. The minutes or memoranda of a meeting at which any member participates by electronic means of communication must:

  1. identify each member who
    1. was physically present at the meetingl
    2. participated in the meeting by electronic means of communication; and
    3. was absent; and
  2. identify the electronic means of communication by which:
    1. members participated in the meeting; and
    2. members of the public attended and observed the meeting, if the meeting was not an executive session.

Section 5. No member of the Council may participate by means of electronic communication in a meeting at which the Council may take final action to:

  1. adopt a budget;
  2. make a reduction in personnel;
  3. initiate a referendum;
  4. impose or increase a fee;
  5. impose or increase a penalty;
  6. exercise the Councils power of eminent domain; or
  7. establish, impose, raise or renew a tax

Section 6. (a) if an emergency is declared by:

  1. the governor under I.C. 10-14-3-122; or
  2. the mayor under I.C. 10-14-3-29; members are not required to be physically present for a meeting until the emergency is terminated.

(b) Members may participate in a meeting by any means of communication provided that:

  1. At least a quorum of the members participate in the meeting by means of electronic communication or in person.
  2. The public may simultaneously attend and observe the meeting unless the meeting is an executive session.
  3. The minutes or memoranda of the meeting must comply with Section 4 of this resolution.

(c) All votes taken during a meeting at which at least one member participates by an electronic means of communication must be taken by roll call vote.

Section 7. This resolution shall be effective from and after adoption by this Council and compliance with I.C. 36-4-6-14.

Resolved and adopted this 15th day of July, 2021.

 

 

#8-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA AUTHORIZING THE TRANSFER OF FUNDS FROM THE SEWER SAVINGS ACCOUNT TO THE SEWER OPERATING ACCOUNT

WHEREAS, the Town of Lapel ("Town" or "Lapel") deems it necessary to transfer Thirty Five Thousand Dollars ($35,000) from the Sewer Savings Account to the Sewer Operating Account in order to cover a negative appropriation with positive unspent appropriations; and,

WHEREAS, the transfer is necessary to bring the Sewer Operating Account positive.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by reference.

Section 2: That the transfer of Thirty Five Thousand Dollars ($35,000) from the Sewer Savings Account, Fund Number 902 001 520, to the Sewer Operating Account, Fund Number 606 931, is approved.

Section 3: That this Resolution shall become effective upon the adoption and signature of the Town Council of the Town of Lapel and publication as may be required by law.

Approved by the Lapel Town Council this 15th day of July 2021.

 

 

#9-2021

A RESOLUTION OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AUTHORIZING REQUEST FOR ADDITIONAL APPROPRIATIONS.

WHEREAS, it has been determined that it is now necessary to appropriate more money than was originally appropriated in the annual budget.

NOW THEREFORE, BE IT RESOLVED by the Lapel Town Council of the Town of Lapel, Madison County, Indiana, that for the expenses of the taxing unit the following additional sums of money are hereby appropriated out of unappropriated revenue in the American Rescue Plan Act Fund (Fund #176) for the purpose specified herein, subject to laws governing the same:

Fund Name

Personal Services (10000)

Amount Requested

$48,728.50

Amount Approved

$48,728.50

APPROVED by the Lapel Town Council this 16th day of September 2021.

 

 

#10-2021

A RESOLUTION OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AUTHORIZING THE TRANSFER OF FUNDS FROM THE CASCADDEN GIFT ACCOUNT FUND TO THE MVH FUND

RECITALS

WHEREAS, the Town of Lapel operates and maintains an account titled Cascadden Gift Account (Fund #446); and,

WHEREAS, the Town Council has determined that it is desirable to loan the amount of Seventy-Four Thousand, Three Hundred Dollars ($74,300.00) from the Cascadden Gift Account (#446) to the Town of Lapel's MVH (Fund #201), for a term not to exceed one (1) year, at a rate of zero percent (0%) interest, with all such repayments being made to the Cascadden Gift Account (#446).

NOW, THEREFORE, BE IT RESOLVED by the Lapel Town Council, as follows:

That it is deemed desirable for the Town's Cascadden Gift Fund to loan funds to the Town's MVH Fund, in the amount of Seventy-Four Thousand, Three Hundred Dollars ($74,300.00), for a term not to exceed one (1) year at a rate of zero percent (0%) interest, with all such repayments being made to the Cascadden Gift Fund.

APPROVED by the Lapel Town Council this 27th day of July 2021.

 

 

#11-2021

A RESOLUTION OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AUTHORIZING THE TRANSFER OF FUNDS FROM THE SEWER IMPROVEMENT FUND TO THE MVH FUND.

RECITALS

WHEREAS, the Town of Lapel operates and maintains an account titled Sewer Improvement (Fund #608); and,

WHEREAS, the Town Council has determined that it is desirable to loan the amount of Seventy-Five Thousand Dollars ($75,000.00) from the Sewer Improvement (Fund#608) to the Town of Lapel's MVH (Fund #201), for a term not to exceed one (1) year, at a rate of zero percent (0%) interest, with all such repayments being made to the Sewer Improvement Fund (#608).

NOW, THEREFORE, BE IT RESOLVED by the Lapel Town Council, as follows:

That it is deemed desirable for the Town's Sewer Improvement Fund to loan funds to the Town's MVH Fund, in the amount of Seventy-Five Thousand ($75,000.00), for a term not to exceed one (1) year at a rate of zero percent (0%) interest, with all such repayments being made to the Sewer Improvement Fund.

APPROVED by the Lapel Town Council this 27th day of July 2021.

 

 

#12-2021

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LAPEL, INDIANA, AUTHORIZING THE EXECUTION AND DELIVERY OF A MASTER EQUIPMENT LEASE-PURCHASE AGREEMENT AND SEPARATE LEASE SCHEDULES AND CERTIFICATES OF ACCEPTANCE WITH RESPECT TO THE ACQUISITION, PURCHASE, FINANCING AND LEASING OF CERTAIN EQUIPMENT FOR THE PUBLIC BENEFIT; AUTHORIZING THE EXECUTIION AND DELIVERY OF DOCUMENTS REQUIRED IN CONNECTION THEREWITH; AND AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION.

WHEREAS, Town of Lapel, Indiana (the "Lessee"), a body politic and corporate duly organized and existing as a political subdivision, municipal corporation or similar public entity of the Ste of Indiana, is authorized by the laws of the State of Indiana to purchase, acquire and lease personal property for the benefit of the Lessee and its inhabitants and to enter into contracts with respect thereto; and

WHEREAS, the Lessee desires to purchase, acquire and lease certain equipment (including maintenance and other support service agreements) constituting personal property necessary for the Lessee to perform essential governmental functions; and

WHEREAS, in order to acquire such equipment, the Lessee proposes to enter into that certain Master Equipment Lease-Purchase Agreement (the "Agreement") and separate Lease Schedules and Certificates of Acceptance relating thereto from time to time as provided in the Agreement with Crossroads Bank (the "Lessor"), the form of which has been presented to the governing body of the Lessee at this meeting; and

WHEREAS, the governing body of the Lessee deems it for the benefit of the Lessee and for the efficient and effective administration thereof to enter into the Agreement and the separate Lease Schedules and Certificates of Acceptance relating thereto as provided in the Agreement for the purchase, acquisition and leasing of the equipment to be therein described on the terms and conditions therein provided;

NOW, THERE, BE IT AND IT IS HEREBY RESOLVED by the Town Council of the Town of Lapel as follows:

Section 1. Approval of Documents. The form, terms and provisions of the Agreement and the separate Lease Schedules and Certificates of Acceptance relating thereto as provided in the Agreement are hereby approved in the Town Council president, or the Clerk Treasurer of the Lessee or other members of the governing body of the Lessee executing the same, the execution of such documents being conclusive evidence of such approval; and the Town Council President or the Clerk Treasurer of the Lessee is hereby authorized and directed to execute the Agreement, each Lease Schedule, each Certificate of Acceptance and any related Exhibits and Attachments attached to any thereof and to deliver the Agreement, each Lease Schedule and each Certificate of Acceptance (including such Exhibits and Attachments) to the respective parties thereto.

Section 2. Other Actions Authorized. The officers and employees of the Lessee shall take all action necessary or reasonably required by the parties to the Agreement., each Lease Schedule and each Certificate of Acceptance to carry out, give effect to and consummate the transactions contemplated thereby (including the execution and delivery of any tax certificate and agreement, each with respect to separate Lease Schedules and Certificates of Acceptance, as contemplated in the Agreement) and to all action necessary in conformity therewith, including, without limitation, the execution and delivery of any closing and other documents required to be delivered in connection with the Agreement, each Lease Schedule and each Certificate of Acceptance.

Section 3. No General Liability. Nothing contained in this Resolution, the Agreement, any Lease Schedule, any Certificate of Acceptance nor any other instrument shall be construed with respect to the Lessee as incurring a pecuniary liability or charge upon the general credit of the Lessee or against its taxing power, nor shall the breach of any agreement contained in this Resolution, the Agreement, any Lease Schedule, any Certificate of Acceptance or any other instrument or document executed in connection therewith impose any pecuniary liability upon the Lesse or any charge upon its general credit or against its taxing power, except to the extent that the Rental Payments payable under each Lease are special limited obligations of the Lessee as provided in such Lease.

Section 4. Appointment of Authorized Lessee Representatives. The Town Council President or the Clerk Treasurer (and/or/his/her Deputy Clerk Treasurer) of the Lessee is hereby designated to act as authorized representative of the Lessee for the purposes of the Agreement, each Lease Schedule and each Certificate of Acceptance until such time as the governing body of the Lessee shall designate any other or different authorized representative for purposes of the Agreement, each Lease Schedule and each Certificate of Acceptance in which the Lessee shall notify the Lessor in writing of any new authorized representatives designated as herein provided.

Section 5. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity of unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution.

Section 6. Repealer. All bylaws, orders and resolutions or parts thereof inconsistent herewith are hereby repealed to the extent only of such inconsistency. The repealer shall not be contrued as reviving any bylaw, order, resolution or ordinance or part thereof.

Section 7. Effective Date. This Resolution shall be effective immediately upon its approval and adoption.

ADOPTED AND APPROVED by the Lapel Town Council this 18th day of November, 2021. 

 

 

#13-2021

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LAPEL, INDIANA, AUTHORIZING THE EXECUTION AND DELIVERY OF A MASTER EQUIPMENT LEASE-PURCHASE AGREEMENT AND SEPARATE LEASE SCHEDULES AND CERTIFICATES OF ACCEPTANCE WITH RESPECT TO THE ACQUISITION, PURCHASE, FINANCING AND LEASING OF CERTAIN EQUIPMENT FOR THE PUBLIC BENEFIT; AUTHORIZING THE EXECUTIION AND DELIVERY OF DOCUMENTS REQUIRED IN CONNECTION THEREWITH; AND AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION.

WHEREAS, Town of Lapel, Indiana (the "Lessee"), a body politic and corporate duly organized and existing as a political subdivision, municipal corporation or similar public entity of the Ste of Indiana, is authorized by the laws of the State of Indiana to purchase, acquire and lease personal property for the benefit of the Lessee and its inhabitants and to enter into contracts with respect thereto; and

WHEREAS, the Lessee desires to purchase, acquire and lease certain equipment (including maintenance and other support service agreements) constituting personal property necessary for the Lessee to perform essential governmental functions; and

WHEREAS, in order to acquire such equipment, the Lessee proposes to enter into that certain Master Equipment Lease-Purchase Agreement (the "Agreement") and separate Lease Schedules and Certificates of Acceptance relating thereto from time to time as provided in the Agreement with Crossroads Bank (the "Lessor"), the form of which has been presented to the governing body of the Lessee at this meeting; and

WHEREAS, the governing body of the Lessee deems it for the benefit of the Lessee and for the efficient and effective administration thereof to enter into the Agreement and the separate Lease Schedules and Certificates of Acceptance relating thereto as provided in the Agreement for the purchase, acquisition and leasing of the equipment to be therein described on the terms and conditions therein provided;

NOW, THERE, BE IT AND IT IS HEREBY RESOLVED by the Town Council of the Town of Lapel as follows:

Section 1. Approval of Documents. The form, terms and provisions of the Agreement and the separate Lease Schedules and Certificates of Acceptance relating thereto as provided in the Agreement are hereby approved in the Town Council president, or the Clerk Treasurer of the Lessee or other members of the governing body of the Lessee executing the same, the execution of such documents being conclusive evidence of such approval; and the Town Council President or the Clerk Treasurer of the Lessee is hereby authorized and directed to execute the Agreement, each Lease Schedule, each Certificate of Acceptance and any related Exhibits and Attachments attached to any thereof and to deliver the Agreement, each Lease Schedule and each Certificate of Acceptance (including such Exhibits and Attachments) to the respective parties thereto.

Section 2. Other Actions Authorized. The officers and employees of the Lessee shall take all action necessary or reasonably required by the parties to the Agreement., each Lease Schedule and each Certificate of Acceptance to carry out, give effect to and consummate the transactions contemplated thereby (including the execution and delivery of any tax certificate and agreement, each with respect to separate Lease Schedules and Certificates of Acceptance, as contemplated in the Agreement) and to all action necessary in conformity therewith, including, without limitation, the execution and delivery of any closing and other documents required to be delivered in connection with the Agreement, each Lease Schedule and each Certificate of Acceptance.

Section 3. No General Liability. Nothing contained in this Resolution, the Agreement, any Lease Schedule, any Certificate of Acceptance nor any other instrument shall be construed with respect to the Lessee as incurring a pecuniary liability or charge upon the general credit of the Lessee or against its taxing power, nor shall the breach of any agreement contained in this Resolution, the Agreement, any Lease Schedule, any Certificate of Acceptance or any other instrument or document executed in connection therewith impose any pecuniary liability upon the Lesse or any charge upon its general credit or against its taxing power, except to the extent that the Rental Payments payable under each Lease are special limited obligations of the Lessee as provided in such Lease.

Section 4. Appointment of Authorized Lessee Representatives. The Town Council President or the Clerk Treasurer (and/or/his/her Deputy Clerk Treasurer) of the Lessee is hereby designated to act as authorized representative of the Lessee for the purposes of the Agreement, each Lease Schedule and each Certificate of Acceptance until such time as the governing body of the Lessee shall designate any other or different authorized representative for purposes of the Agreement, each Lease Schedule and each Certificate of Acceptance in which the Lessee shall notify the Lessor in writing of any new authorized representatives designated as herein provided.

Section 5. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity of unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution.

Section 6. Repealer. All bylaws, orders and resolutions or parts thereof inconsistent herewith are hereby repealed to the extent only of such inconsistency. The repealer shall not be contrued as reviving any bylaw, order, resolution or ordinance or part thereof.

Section 7. Effective Date. This Resolution shall be effective immediately upon its approval and adoption.

ADOPTED AND APPROVED by the Lapel Town Council this 18th day of November, 2021. 

 

 

#14-2021

A RESOLUTION AUTHORIZING ADDITIONAL APPROPRIATIONS

WHEREAS, it has been determined that it is now necessary to appropriate more money than was originally appropriated in the annual budget; now, therefore:

NOW THEREFORE, be it ordained by the Town Council of the Town of Lapel, Madison County Indiana that for the expenses of the taxing unit the following additional sums of money are hereby appropraited out of the funds named and for the purposes specified, subject to the laws governing the same.

MOTOR VEHICLE HIGHWAY FUND

201001400 CAPITAL EXPENSES $35,000

LOCAL ROAD AND STREET FUND

202001400 CAPITAL EXPENSES $61,525

PARK AND RECREATION FUND

204001300 Other Services & Charges $4,000

LOCAL LAW ENFORCEMENT CONTINUING EDUCATION FUND

208001300 Other Services & Charges $475

INTRODUCED & PASSED on this 13th day of December, 2021 by the Town Council of Lapel, Madison County, Indiana, having been passed by a vote of four (4) in Favor and zero (0) Oppposed.

 

 

#15-2021

A RESOLUTION APPROVING A TRANSFER OF FUNDS BETWEEN FUNDS

WHEREAS, the Town Council and Clerk-Treasurer recommended that funds be transferred from the following Funds in the amounts stated.

FROM: MOTOR VEHICLE HIGHWAY FUND #201

LINE ITEM: 201001117.000 MVH ADM LABOR COMP $9,000

LINE ITEM: 201001341.000 MVH SVC INSURANCE $5,000

TOTAL AMOUNT $14,000

TO: MOTOR VEHICLE HIGHWAY FUND #201

LINE ITEM: 201001241.000 MVH SUPPLIES - MISC $900

LINE ITEM: 201001442.00 MVH STREET REPAIR $13,100

 

FROM: PARK FUND #204

LINE ITEM: 204001441 PARK EQUIPMENT $4,882

TOTAL AMOUNT $4,882

TO: PARK FUND #204

LINE ITEM: 204001361 PARK REPAIRS $4,882

 

 

#17-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA AUTHORIZING THE TRANSFER OF FUNDS FROM DORMANT SAVINGS ACCOUNTS TO THE ACTIVE CHECKING ACCOUNT.

WHEREAS, the Town of Lapel ("Town" or "Lapel") deems it necessary to transfer five thousand seven hundred forty dollars ($5,740) from the Sewer Customer Deposit Savings Account (927), to the Sewer Customer Deposit Checking Account (614) in order to zero out the dormant savings fund accountl and,

WHEREAS, the transfer is necessary to delete the dormant fund (927).

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by reference.

Section 2: That the transfer of five thousand seven hundred forty dollars ($5,740) from the Sewer Customer Deposit Savings Account, Fund Number 927, to the Sewer Customer Deposit Checking Account, Fund Number 614, is approved.

Section 3: That this Resolution shall become effective upon adoption and signature of the Town Council of the Town of Lapel and publication may be required by law.

APPROVED by the Lapel Town Council this 16th day of December, 2021.

 

 

#18-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA AUTHORIZING THE TRANSFER OF FUNDS FROM DORMANT SAVINGS ACCOUNTS TO THE ACTIVE CHECKING ACCOUNT.

WHEREAS, the Town of Lapel ("Town" or "Lapel") deems it necessary to transfer twelve thousand six hundred thirty-one dollars & thirty-three cents ($12,631.33) from the Water Meter Customer Deposit Savings Account (928), to the Water Meter Customer Deposit Checking Account (604) in order to zero out the dormant savings fund accountl and,

WHEREAS, the transfer is necessary to delete the dormant fund. (928)

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by reference.

Section 2: That the transfer of twelve thousand six hundred thirty-one dollars & thirty-three cents ($!2,631.33) from the Water Meter Customer Deposit Savings Account, Fun Number 928, to the Water Meter Customer Deposit Checking Account, Fund Number 604, is approved.

Section 3: That this resolution shall become effective upon adoption and signature of the Town Council of the Town of Lapel, and publication may be required by law.

APPROVED by the Lapel Town Council this 16th day of December, 2021.

 

 

#19-2021

A RESOLUTION OF THE TOWN OF LAPEL, INDIANA AUTHORIZING THE TRANSFER OF FUNDS FROM DORMANT SAVINGS ACCOUNTS TO THE ACTIVE CHECKING ACCOUNT

WHEREAS, the Town of Lapel ("Town" or "Lapel") deems it necessary to transfer thirty-one thousand twenty-two dollars ($31,022) from the Gas Meter Customer Deposit Savings Account (929), to the Gas Meter Customer Deposit Checking Account (618) in order to zero out the dormant savings fund account; and,

WHEREAS, the transfer is necessary to delete the dormant fund. (929)

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by reference.

Section 2: That the transfer of thirty-one thousand twenty-tw dollars ($31,022) from the Gas Meter Customer Deposit Savings Account, Fund Number 9292, to the Gas Meter Customer Deposit Checking Account, Fund Number 618, is approved.

Section 3: That this resolution shall become effective upon adoption and signature of the Town Council of the Town of Lapel, and publication may be required by law.

APPROVED by the Lapel Town Council this 16th day of December, 2021.

 

 

DECLARATION OF LOCAL EMERGENCY

WHEREAS, the undersigned, is the duly elected Town Council President, of the Town of Lapel, Indiana; and,

WHEREAS, Indiana Code 10-14-3-29(a)(1) permits the Town Council President to declare a local emergency; and,

WHEREAS, the Town Council has a duty to ensure efficient government of the Town; and,

WHEREAS, owing to a positive COVID-19 test or tests of Lapel Town employees, the undersigned hereby deems it necessary to close Lapel Town Hall, until Monday, December 20, 2021.

IT IS THUS DECLARED THAT A STATE OF LOCAL EMERGENCY EXISTS IN THE TOWN OF LAPEL.

As a result of positive COVID-19 tests, Lapel Town Hall shall be closed until Monday, December 20, 2021.

 In addition, all public meetings of Town agencies and boards shall be conducted virtually until Monday, December 20, 2021. 

With the exception of Lapel Town Hall, all Town Departments, including First Responders, are to continue to operate as normal during the pendency of this Emergency.   Citizens making utility payments are instructed to utilize the drop box attached to the Town Hall or make an online payment.

The Lapel Police Department is hereby authorized to take lawful action necessary to effectuate the terms and intent of this Declaration, to reduce the risk of further spread of the Coronavirus which would reduce the efficiency of Lapel Town Government.

This emergency expires in seven (7) days.

      SO DECLARED THIS _12th_ DAY OF DECEMBER, 2021.

WHEREAS, it has been determined that it is now necessary to appropriate more money than was originally appropriated in the annual budget;

THEREFORE be it ordained by the Town Council of the Town of Lapel, Madison County, Indiana that for the expenses of the taxing unit the following additional sums of money are hereby appropriated out of the funds named and for the purposes specified, subject to the laws governing the same:

  • General Police Fund
  • Major Budget Classification: 10000: Personal Services, requested $1,968 approved by Town Council $1,968.
  • Total: $1,968 / $1,968

Further Information

1-2021
Date Passed: 1/21/2021

Amendments and Repeals

Sections of this ordinance have since been Amended By - 12-2021 

Be it ordained by the Town of Lapel, Madison County, Indiana: Section #1 the salaries of the town officials, police officers, utility/park employees, and all others employed by the Town of Lapel, IN, effective for all pays after January 1st, 2021 and ending December 31st, 2021 shall be as follows, to-wit:

Clerk/Treasurer

  • General Fund $1,298
  • Gas Company $8,657
  • Water Company $8,657
  • Sewer Company $8,658
  • Total $27,270

Town Council Members

  • General Fund $290
  • Gas Company $1,836.67
  • Water Company $1,836.67
  • Sewer Company $1,836.66
  • Total $5,800

Town Council Vice President

  • General Fund $300
  • Gas Company $1,900.00
  • Water Company $1,900.00
  • Sewer Company $1,900.00
  • Total $6,000

Town Council President

  • General Fund $350
  • Gas Company $2,216.67
  • Water Company $2,216.67
  • Sewer Company $2,216.67
  • Total $8,000

Attorney

  • Annually $4,600

Janitor on Contract

  • $50/weekly

Checks will be issued as follows: Council-monthly, the next pay period following the Council meeting. 

Clerk/Treasurer weekly, Janitor-monthly, Town Attorney-semi-annually, and all other employees weekly.

Specific salaries for Town of Lapel employees beginning January 1st, 2021 and ending December 31st, 2021 are:

  • Police Chief $52,520 annually / $25.25/hour
  • Police Captain $43,818.29 annually / $21.12/hour
  • 1st Class Patrolman $39,208 annually / $18.85/hour
  • 2nd Class Patrolman $38,126.40 annually / $18.33/hour
  • 3rd Class Patrolman $37,065.60 annually / $17.82/hour
  • Part Time Officer $22/hour
  • Deputy Clerk $23.58/hour Office Administration
  • Accounts Payable $18.71/hour Office Administration
  • Seasonal Labor 1 $12.50/hour Part Time General Maintenance
  • Seasonal Labor 2 $16.48/hour Part Time Seasonal Labor
  • Seasonal Labor 3 $11.00/hour Part Time Seasonal Labor
  • Wastewater Operator $21.22/hour
  • Contract Employee $40.00hr/5hr week Water Operator/Sewer Operator
  • Utility Director $61,800 annually
  • Gas Operator $20.602/hour
  • Gas Assistant/Labor $16.23/hour
  • Utility Labor $15.00-$15.15/hour
  • Code Enforcement $50,859.34 annually
  • Water Operator $16.71/hour
  • Full time/Part time Office Employee $16.54/hour

Section - Bereavment Days

Bereavement days- three (3) per family member, which includes and is limited to the following: wife, husband, children, stepchildren, father, mother, stepfather, stepmother, father-in-law, mother-in-law, brothers, sisters, and immediate grandparents; one day (1) for brother-in-law, sister-in-law and immediate aunts/uncles. Aunts/Uncles and immediate grandparents amended 11/21/2019.

Section - Paid Legal Holidays

All full-time employees are entitled to the following: New Year's Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving (Thursday & Friday), Christmas Eve and Christmas Day. Holidays are paid at the employee's current pay rate. As of January 1st 2020, Holidays will not be used in overtime calculations, or any special forms of compensation such as incentives, commissions, bonuses or shift differentials.

Vacation/Personal Days for Full-Time Employees

The amount of paid vacation benefits an employee earns each year increases with the length of his or her employment. Once employees enter an eligible employmeny classification, they earn vacation benefits according to the schedule below.

  • 90-days through December 31st of the employee's first year / 40-hours pro-rated based upon the number of months left in the year / Five-days pro-rated based upon the number of months left in the year.
  • On January 1st of the employee's first year to the December 31st prior to the employee's second anniversary / 40-hours / Five-days.
  • On January 1st prior to the employee's second anniversary to December 31st prior to the employee's fifth anniversary / 80-hours / Ten-days.
  • On January 1st prior to the employee's fifth anniversary to December 31st prior to the employee's tenth anniversary / 120-hours / Fifteen-days.
  • On January 1st prior to the employee's tenth anniversary and all subsequent years / 160-hours / Twenty-days.

Vacation benefits may be used in minimum increments of one hour. New employees are not entitled to paid vacation benefits during their first 90 days of employment. After 90 days of employment, employees will be eligible to use a pro-rated amount of vacation benefits for the remainder of the calendar year. Requests for vacation benefits will be honored on a "first come/first serve" basis. Employees should request approval from their Supervisors in writing at least 24 hours in advance of the requested time off. Approval of vacation benefits requests is the responsibility of a Supervisor and is subject to the operational needs of the Town. The Town reserves the right to deny vacation benefits requests when such vacation benefits would interfere with busy times, limited staff, or other circumstances which jeopardize the operations of the Town. All vacation benefits must be exhausted before an employee requests the use of unpaid time off.

Personal Days

The Town of Lapel provides paid personal days to all eligible employees for periods of temporary absence due to illness, injuries, or personal pursuits. Employees in the following employment classification(s) are eligible to earn and use personal days as described in this policy:

*Regular full time employees

Eligible employees receive eight personal days (64 hours) per calendar year which are available to employees on January 1st of each year. New employees are not entitled to paid personal days during their first 90 days of employment. After 90 days of employment, employees will be eligible to use a pro-rated amount of personal days for the remainder of the calendar year.

Employees should request approval from their Supervisors prior to the start of their shift. If a Supervisor cannot be reached, the employee should contact Town Hall prior to the start of their shift and leave a voicemail. Approval of personal day requests is the responsiblity of a Supervisor and is subject to the operational needs of the Town. The Town reserves the right to deny personal day requests when such personal days would interfere with busy times, limited staff, or other circumstances which jeopardize the operations of the Town.

Effective with the implementation of the handbook, personal days may not be carried over year to year.

All earned but unused personal days will be paid out on the last pay period in 2019. Beginning in 2020, earned but unused personal days will be forfeited at the end of the calendar year. Upon involuntary termination of employment, employees will not be paid for all earned but unused personal days. Upon voluntary termination of employment, employees who provide a minimum of two weeks' notice and work thru the final day of employment according to their notice will be paid for all earned but unused personal days.

Personal days are paid at the employee's current pay rate at the time of the personal day. Paid time off for personal days will be used in overtime calculations, and any special forms of compensation such as incentives, commissions, bonuses, or shift differentials thru December 31st, 2019. As of January 1, 2020, personal days will not be used in overtime calculations, or any special forms of compensation such as incentives, commissions, bonuses, or shift differentials.

Section Overtime

Overtime compensation will be paid to nonexempt employees in accordance with federal and state wage and hour restrictions, which includes any time worked over 40 hours in a standard workweek. Paid time off (vacations, holidays, personal days and bereavement leave) will be used in overtime calculations and any special forms of compensation such as incentives, commissions, bonuses, or shift differentials thru December 31st, 2019. 

As of January 1st, 2020 vacation time used, personal time used and holidays will not count toward the calculation of overtime.

The payroll clerk will prepare on a weekly basis, a report to the Council illustrating the amount of and who were paid overtime. It will be the job of the department supervisors to limit overtime whenever possible.

"ON CALL" Employees: The employees who are assigned to utilities duties on weekends that is is considered part of the essential duties and responsibilities of their job and is not considered an emergency will be paid at their straight time rate for all hours worked. Overtime will be paid to nonexempt employees in accordance with federal and state wage and hour laws, for any time worked over 40 hours in a standard workweek.

The definition of "on call" is being designated to be available to answer emergency calls from the Town during nonscheduled hours. Employees in an "on call" status are required to respond to an "on call" emergency within 30 minutes. Employees will be paid for a minimum of two hours of pay, regardless of the amount of time worked. Employees will receive premium pay at a rate of time and one half for all hours worked when in an employee is "on call". Premium pay will not be included in overtime calculations.

Section - Meeting Attendance Payment

Non-council members that are authorized members of the Planning Commission, Park Board, Board of Zoning Appeals and Storm Water Subcommittee will be paid $10 per meeting attended. Disbursements of amounts owed will be semi-annually July and January.

Section - Office Hours and Utility/Street Department Hours

Town Hall office hours are Monday - Friday 8am to 4pm. The Utility/Street Department hours are 7am to 3:30pm.

Section - Police Officers

Non-academy graduates will be in a probationary status until one year from graduation date.

Academy graduates will be on a probationary period of one year from hire date.

New hire without academy certification will be sent to the academy within one year of hire date.

If for some foreseen or unforeseen reason the officer has to leave the department or fails to complete the academy assignment, said officer must repay all training compensation of the Town of Lapel.

 

Section - Educational Reimbursement

It is the desire of the Town of Lapel that all employees gain more education in their specific disciplines. If the employee quits a course, paid by the Town of Lapel, the employee must repay to the Town the cost of the course. This would include tuition fees, cost of books and materials, and mileage reimbursements. If the employee completes the course work and attendance requirements, but fails the final test, reimbursement is not required. Retesting is at the discretion of the Council.

Section - Insurance

The Town of Lapel will pay 100% of the employee's health insurance premium; employees will have to pay dependent coverage, if desired. This benefit is available to full-time employees only. Employees who are eligible to enroll in the group medical program may choose to waive participation in the plan. Only employees covered under another group health carrier will be permitted to waive coverage. Employees are required to complete the appropriate form to waive ther election and provide verification of coverage.

  • Health, Life and Vision - Health Application
  • Life Only - Health Application (check life only, indicate waiver/other coverage)

An optional dental insurance benefit plan is offered to all full-time employees. The premium for the insurance policy is split 50%/50% between the employee and the employer.

Section - Utility Certificates.

When a Lapel Utility employee acquires a Class 1 operator's certification for water or wastewater, their salary will be increased 75 cents per hour.

When a Lapel Utility employee acquires a Class 2 operator's certification for water or wastewater, their salary will increase 75 cents per hour.

If a Lapel Utility employee receives an initial gas operators certification, their salary will be increased by 50 cents per hour.

If a Lapel Utility employee receives their CDL, their salary will increase $1.00 per hour. Per Council only four Utility employees are eligible to obtain a CDL at a time.

Section - Special Pay/Year End

Employees with 1 to 5 years of service will receive $100.00, employees with more than 5 year' of service will receive $250.00 at year end. Special/Year End Pay will be paid to the employees the first pay of December.

 

Further Information

2-2021
Date Passed: 1/21/2021

WHEREAS, it has been determined that it is now necessary to appropriate more money than was originally appropriated in the annual budget;

THEREFORE be it ordained by the Town Council of the Town of Lapel, Madison County, Indiana that for the expenses of the taxing unit the following additional sums of money are hereby appropriated out of the funds named and for the purposes specified, subject to the laws governing the same:

  • Park Fund
  • Major Budget Classification: 30000: Other Services and Changes, requested $6,000 approved by Town Council $6,000.
  • Total: $6,000 / $6,000

Further Information

3-2021
Date Passed: 2/18/2021

AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, PROHIBITING CERTAIN TRAFFIC IN AND AROUND THE AREA OF 875 WEST AND 650 SOUTH IN LAPEL, MADISON COUNTY, INDIANA

WHEREAS, the Town of Lapel has experienced the degradation of the condition of municipal streets in or around the location of 875 West 650 South; and

WHEREAS, this degradation in the condition of the Town roads creates a safety hazard to vehicular and pedestrian traffic in the area; and

WHEREAS, the streets in this area were not designed for semi-tractor trailer and other vehicular traffic in excess of 16,000 pounds; and

WHEREAS, to eliminate the threat to human safety and personal property, the Town Council hereby deems it necessary to institute a weight limit in and around County Road 875 West and 650 South.

NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE TOWN OF LAPEL THAT all semi-tractor trailers and all other vehicular traffic in excess of sixteen thousand (16,000) pounds is prohibited at or around Country Roads 875 West and 650 South, to include an area from Country Road 650 South to the East of State Road 13; and County Road 875 West, to the south of State Road 38, between 650 South and State Road 38.

 

Further Information

4-2021
Date Passed: 2/18/2021

AN ORDINANCE OF THE TOWN OF LAPEL, INDIANA AMENDING ORDINANCE NO. 9-1982, CHAPTER 4, SECTION 4.2 OF THE CODE OF ORDINANCES, FOR TRAFFIC ACCIDENT REPORT FEES

WHEREAS, Indiana Code (I.C) 9-26-9-3 allows the fiscal body to establish a fee by ordinance which the police department under its jurisdiction may charge for accident reports; and,

WHEREAS, I.C. 9-26-9-3 requires that the fee be at least $5.00; and,

WHEREAS, the Town of Lapel ("Town" or "Lapel") passed Ordinance No. 9-1982 on December 22nd, 1982, as codified in the Town's Cord of Ordinances under Chapter 4, Section 4.2, establishing a fee of $3.00 for copies of accident reports; and,

WHEREAS, the Town now desires to amend Ordinance 9-1982 as codified in Chapter 4, Section 4.2, and set the fee for $8.00 for the production and distribution of accident reports as permitted by I.C 9-26-0-3 and authorize the Lapel Police Department to collect such fee; and,

WHEREAS, pursuant to I.C. 9-26-9-3 any fee collected by the Lapel Police Department must be depositied in the local law enforcement continuing education fund as established by I.C 5-2-8-2.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by referenced.

Section 2: That Ordinance No. 9-1982, Chapter 4, Section 4.2 of the Town's Code of Ordinances, is hereby amended to change the previously established fee of $3.00 for accident reports to $8.00 per report.

Section 3: The Lapel Police Department is authorized to collect such fee.

Section 4: All fees for accident reports shall be deposited in the law enforcement continuing education fund as established by the Town pursuant to  I.C. 5-2-8-2

Section 5: This Ordinance shall become effective upon the adoption and signature of the Town Council of the Town of Lapel and publication as may be required by law.

 

Further Information

5-2021
Date Passed: 3/18/2021

AN ORDINANCE OF THE TOWN OF LAPEL, INDIANA ESTABLISHING A FEE FOR THE INSPECTION OF VEHICLES

WHEREAS, Indiana Code (I.C) 9-17-12(e) allows a unit of government to establish a fee by ordinance for the inspection of a vehicle performed pursuant to 9-17-12 by a police officer employed by that unit; and,

WHEREAS, I.C. 9-17-12(e) requires that the fee may not exceed $5.00; and,

WHEREAS, pursuant to I.C. 9-17-12(e) any fee collected by the Lapel Police Department must be deposited in the local law enforcement continuing education fund as established by I.C. 5-2-8-2.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: That the recitals stated herein are hereby incorporated by referenced.

Section 2: That a fee of $5.00 is hereby established for any vehicle inspection performed pusuant to I.C. 9-17-12 by a Lapel Police Department police officer.

Section 3: That the Lapel Police Department is authorized to collect such fee.

Section 4: That all fees for vehicle inspections shall be deposited in the law enforcement continuing education fund as established by the Town pursuant to I.C. 5-2-8-2.

Section 5: That all prior ordinances that may exist that are in conflict with this Ordinance are hereby repeated in their entirety.

Section 6: That this Ordinance shall become effective upon the adoption and signature of the Town Council of the Town of Lapel and publication as may be equired by law.

Further Information

6-2021
Date Passed: 3/18/2021

AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AMENDING PRIOR ORDINANCES REGARDING THE REGULATION OF GOLF CARTS AND ALTERNATIVE TRANSPORTATION IN THE TOWN OF LAPEL AND ESTABLISHING NEW REGULATIONS FOR THE OPERATION OF GOLF CARTS AND MOTORIZED CARTS

WHEREAS, the Town of Lapel ("Town" or "Lapel") have passed prior ordinances regulating the use of golf carts and alternative transportation in the Town of Lapel; and,

WHEREAS, the Town now desires to repeal in part and amend in part those prior ordinances; and,

WHEREAS, I.C. 9-21-1 provides regulations for the use of golf carts; and,

WHEREAS, I.C. 9-21-1-3(a)(14) allows a local authority to regulate or prohibit the operation of low speed vehicles, golf carts, or off-road vehicles on highways under the local authority's jurisdiction; and,

WHEREAS, I.C. 9-21-1-3.3 specifically authorizes a town, if it chooses, to adopt an ordinance providing traffic regulations concerning the use of golf carts on a highway under the town's jurisdiction as long as certain statutory requirements as contained in I.C. 9-21-1-3.3 are met.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

  1. PRIOR ORDINANCES REPEALED: Ordinance no 4, 2003, Ordinance No 5, 2009, Ordinance No 5, 2011, Ordinance No 5, 2016 are hereby repealed in their entirety and replaced as follows.
  2. DEFINITIONS: For purposes of this Ordinance, the following terms apply:
    1. "Golf Cart" as defined in I.C. 9-13-2-69.7, as may be amended from time to time, means "a four (4) wheeled motor vehicle originally and specifically designed and intended to transport one (1) or more individuals and golf clubs for the purpose of playing the game of golf on a golf course."
    2. "Motorized Cart" as defined in I.C. 14-19-1-0.5, as may be amended from time to time, means, "a conveyance that is (1) motor driven, either by gas or electricity; (2) used to carry passengers or equipment; and (3) smaller than the types of motor vehicles required to be registered by the bureau of motor vehicles such as a : (A) passenger motor vehicle (as defined in I.C 9-13-2-123); (B) recreational vehicle (as defined in I.C. 9-13-2-150) or (C) truck as defined in I.C. 9-13-2-188). A motorized cart may be characterized as a golf cart, utility cart, or similar form of motor vehicle. The term does not include: (1) an electric personal assistive mobility device (as defined in I.C. 9-13-2-49.3); (2) a motorcycle (as defined in I.C. 9-13-2-108); (3)) a motor drive cycle (as defined in I.C. 9-13-2-104.1); (4) an off-road vehicle; or (5) an electric foot scooter (as defined in I.C. 9-13-2-49.4)."
  3. REGISTRATIONS AND INSPECTION:
    1. Any owner of a Golf Cart or Motorized Cart desiring to operate the same on Town streets must annually register the Golf Cart with the Lapel Police Department ("LPD" or "Police Department").
    2. The Lapel Police Department is charged with the responsibility of inspecting and registering Golf Carts and Motorized Carts to ensure the Golf Cart or Motorized Cart is in compliance with State law and the requirements set forth in this Ordinance. The Police Department shall also maintain records of the inspection and registration for Golf Carts and Motorized Carts.
    3. Inspections must be completed annually and will expire on June 30th of every calendar year.
    4. Inspections can be conducted by contacting the Lapel Police Department for an appointment.
    5. Upon registration and inspection of the Golf Cart or Motorized Carts, the owner of said Golf Cart or Motorized Cart shall receive an inspection sticker if the Golf Cart or Motorized Cart passes inspection. The inspection sticker shall be placed and displayed at all times on the outside of the windshield on the lower passenger side of the Golf Cart or Motorized Cart.
    6. Inspection stickers shall not be transferred to another person.
    7. The cost of the registration and inspection fee is $50.00 per Golf Cart or Motorized Cart.
    8. All fees from the registration and inspections of Golf Cart and Motorized Carts shall be deposited in the Law Enforcement Continuing Education fund.
  4. INSURANCE: The owner of any registered Golf Cart or Motorized Cart on any Town roadway or highway shall maintain recreational vehicle insurance with a minimum amount of twenty-five thousand dollars ($25,000) for bodily inury to or the death of one (1) individual, fifty thousand dollars ($50,000) for bodily injury to or the death of two (2) or more individuals in any one (1) accident, and twenty-five thousand dollars ($25,000) for damage to or the destruction of property in one (1) accident.
  5. LICENSE REQUIREMENT: Pursuant to I.C. 9-24-1-7(b), an operator of a Golf Cart or Motorized Cart that is characterized as a Golf Cart pursuant to I.C. 14-19-1-0.5 must have a valid driver's license.
  6. DESIGNATED ROADS:
    1. Golf Carts and Motorized Carts are prohibited from operating on any State highway, including but not limited to, Pendleton Avenue and State Road 13.
    2. The Lapel Town Council may prohibit the use of Golf Carts and Motorized Carts on roads, street, highways that are under the jurisdiction of the Town of Lapel if the operation of Golf Carts and Motorized Carts poses a danger. This Ordinance shall be amended from time to time to include those roads deemed unsuitable for their use.
  7. PASSENGERS: The number of persons permitted is three (3) per row of seats.
  8. RULES AND REGULATIONS: The operator of a Golf Cart and Motorized Carts shall adhere to and follow all traffic rules and regulations as set forth in the Indiana Code, and, in addition thereto, the following:
    1. The operator of the Golf Cart or Motorized Cart shall drive the Golf Cart or Motorized Cart as close to the curb/edge of the street/road when possible and must yield to other vehicles on the road;
    2. Golf Carts and Motorized Carts shall not be operated on sidewalks, walking paths, or in any Town park;
    3. Golf Carts and Motorized Carts must be equipped with all of the following:
      1. Headlights and taillights
      2. Turn signals
      3. Brake lights
      4. Windshield that extends above the height of the operator
      5. Rearview mirrors
      6. adequate brakes
    4. No children under three (3) years of age shall be permitted to ride in or on a Golf Cart or Motorized Cart;
    5. The maximum speed by which Golf Carts and Motorized Carts may operate is the lesser of thirty (30) miles per hour or the posted speed limit;
  9. HOURS OF OPERATION: The hours of operation allowed for Golf Carts and Motorized Carts are from 6:00am to 11:00pm. Golf Carts and Motorized Carts must have lighted headlights and taillights one (1) hour after sunrise and one (1) hour prior to sunset.
  10. EXCLUSIONS:
    1. This Ordinance shall not apply to any Golf Carts or Motorized Carts owned by the Town and used by the Town for official Town business.
    2. This Ordinance shall not apply to Golf Carts or Motorized Carts being operated in a parade or other function sanctioned and authorized by the Town.
    3. This Ordinance does not rescind, repeal, or otherwise amend Ordinance 4, 2011 regarding the procedures for the use of golf carts during the Lapel Village Fair. Ordinance 4, 2011 remains in full force and effect.
  11. VIOLATIONS/PENALTIES:
    1. Any person who violates this Ordinance shall be fined up to and in an amount not to exceed $250.00.
    2. Monies collected for a violation of this Ordinance shall be deposited into the Town's general fund pursuant to Indiana Code I.C. 9-21-1-3.3.
  12. CONFLICT WITH STATE LAW: No provision of this Ordinance is intended to conflict with or supersede state law.
  13. SEVERABILITY/VALIDITY: If any provision of this Ordinance shall be held to be invalid or unenforceable, that determination shall not affect the remaining provisions of this Ordinance and such remaining provisions shall be considered valid.
  14. EFFECTIVE DATE: This Ordinance shall become effective upon the adoption and signature of the Lapel Town Council and the posting of signs and publication as required by law.

 

Further Information

7-2021
Date Passed: 3/18/2021

AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AMENDING PRIOR ORDINANCE REGARDING THE REGULATION OF GOLF CARTS AND ALTERNATIVE TRANSPORTATION IN THE TOWN OF LAPEL AND ESTABLISHING NEW REGULATIONS FOR THE OPERATION OF OFF ROAD VEHICLES AS DEFINED BY I.C. 14-8-2-185

WHEREAS, the Town of Lapel ("Town" or "Lapel") have passed prior ordinances regulating the use of golf carts and alternative transportation in the Town of Lapel; and,

WHEREAS, while those prior ordinances did not specifically address the use of Off Road Vehicles as defined by I.C. 14-8-2-185, the Town now desires to repeal in part and amend in part those prior ordinances that could have been construed to apply to Off Road Vehicles and pass a new ordinance that applies only to Off Road Vehicles; and,

WHEREAS, I.C. 9-21-1-3(a)(14) allows a local authority to regulate or prohibit the operation of low speed vehicles, golf carts, or off-road vehicles on highways under the local authority's jurisdiction; and,

WHEREAS, I.C. 14-16-1-22 permits counties, cities, and towns to pass ordinances regulating the operation of off-road vehicles provided that such ordinances meet substantially the minimum requirements of I.C. 14-16-1.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

  1. RECITALS: The recitals stated herein are hereby incorporated by reference.
  2. PRIOR ORDINANCES REPEALED: Ordinance No 4, 2003, Ordinance No 5, 2009, Ordinance No 5, 2011, Ordinance No 5, 2016 are hereby repealed in their entirety and replaced as follows.
  3. DEFINITIONS: All definitions contained herein shall have the same meaning as set forth in I.C. 14-16-1 except as indicated herein.
    1. "Alcoholic Beverage": The term "alcoholic beverage" as defined in I.C. 14-16-1-1.5 "has the meaning set forth in I.C.
    2. "Operate": The term "operate" as defined in I.C. [[14-16-1-4" target="ic">7.1-1-3-5."
    3. "Operate": The term "operate" as defined in I.C. [[14-16-1-4 means "to (1) ride in or on; and (2) be in actual physical control of the operation of; a vehicle."
    4. "Operator": The term "operator" as defined in I.C. 14-16-1-5 means "an individual who: (1) operates; or (2) in in actual physical control of; an off-road vehicle or a snowmobile."
    5. "Owner": The term "owner" as defined in I.C. 14-16-1-6 means "a person, othat than a lienholder, who: (1) has the property in or title to: and (2) is entitled to the use or possession of: an off-road vehicle or a snowmobile."
    6. "Vehicle": The term "vehicle" as defined in I.C. 14-16-1-7 means "an off-road vehicle or snowmobile."
      1. Off Road Vehicle is more precisely defined in IC 14-8-2-185;
      2. For purposes of this Ordinance, the term "Vehicle" shall include Vehicles with four or more tires that has side-by-side seating. The term Vehicle does not include snowmobiles, quads, and three wheelers. Snowmobiles, quads, and three wheelers are specifically excluded from the provisions of this Ordinance and are prohibited from operation in the Town.
  4. REGISTRATION
    1. All Vehicles must be registered pursuant to I.C. 9-18.1-14-1
    2. In addition, any owner of a Vehicle desiring to operate the same on Town streets must annually register the Off-Road Vehicle with the Lapel Police Department ("LPD" or "Police Department").
    3. The Lapel Police Department is charged with the responsibility of inspecting and registering the Vehicle to ensure the Vehicle is in compliance with State law and the requirements set forth in this Ordinance. The Police Department shall also maintain records of the inspection and registration for the Vehicle.
    4. Inspections must be completed annually and will expire on June 30th of every calendar year.
    5. Inspections can be conducted by contacting the Lapel Police Department for an appointment.
    6. Upon registration and inspection of the Vehicle, the owner of said Vehicle shall receive an inspection sticker if the Vehicle passes inspection. The inspection sticker shall be placed and displayed at all times on the outside of the windshield on the lower passenger side of the Vehicle
    7. Inspection stickers shall not be transferred to another person.
    8. The cost of the registration and inspection fee is $50.00 per Vehicle.
    9. All fees from the registration and inspections of Vehicle shall be deposited in the Law Enforcement Continuing Education fund.
  5. INSURANCE: The owner of any registered Vehicle who operates the Vehicle on any Town roadway or highway shall maintain recreational vehicle insurance with a minimum amount of twenty-five thousand dollars ($25,000) for bodily injury to or the death of one (1) individual, fifty thousand dollars ($50,000) for bodily injury to or the death of two (2) or more individuals in any one (1) accident, and twenty-five thousand dollars ($25,000) for damage to or the destruction of property in one (1) accident.
  6. AGE REQUIREMENT: No children under three (3) years of age shall be permitted to ride in a Vehicle.
  7. LICENSE REQUIREMENT: The operation of a Vehicle on a public highway in Indiana without a valid motor vehicle driver's license is prohibited by I.C. 14-16-1-20(c).
  8. LIGHTS: Pursuant to I.C. 14-16-1-21(a) A Vehicle may not be operated between sunset and sunrise unless the Vehicle has at least one (1) headlight and one (1) taillight.
  9. BRAKES: Pursuant to I.C. 14-16-1-21(b), a Vehicle may not be iperated at any time unless the vehicle has adequate brakes capable of producing deceleration at fourteen (14) feet a second on level ground at a speend of twenty (20) miles per hour
  10. HELMETS:
    1. Pursuant to I.C. 14-16-1-33, a person who is: (1) the owner of an off-road vehicle; (2) in possession of an off-road vehicle; or (3) entitled to the possession of an off-road vehicle, whether by reason of legal title, lease, license, rental arrangement, lease with option to purchase, contract of conditional sale, or otherwise; may not knowingly authorize or permit an individual less than eighteen (18) years of age to operate the off-road vehicle in violation if I.C. 9-18.1-14-11.
    2. Pursuant to I.C. 9-18.1-14-11, an individual less than eighteen (18) years of age who is operating or riding on an off-road vehicle shall wear a helmet that meets the standards established by the United States Department of Transportation under 49 CFT 571.218 as in effect January 1, 1979. (b) An individual who violates this section commits a Class C infraction.
  11. DESIGNATED ROADS AND STATE HIGHWAYS:
    1. Vehicles may not be operated on state highways except as provided herein or pursuant to I.C. 14-16-1-20.
    2. Vehicles may be operated on roadways within the Town.
    3. The Lapel Town Council may prohibt the use of Vehicles on roads, street, highways that are under the jurisdiction of the Town of Lapel if the operation of Vehicles poses a danger. This Ordinance shall be amended from time to time to include those roads deemed unsuitable for their use.
  12. PASSENGERS: The maximum number of persons in a Vehicle will be limited by the requirements set by the manufacturer. Each occupant must be in a seat and must wear a seatbelt.
  13. SIDEWALKS, PARKS AND WALKING PATHS: Vehicles shall not be operated on sidewals, walking paths, or in any Town park.
  14. RESTRICTIONS AND EXCEPTIONS:
    1. Pursuant to I.C. 14-16-1-23(a), an individual shall not operate a vehicle under any of the following conditions:
      1. At a rate of speed greater than is reasonable and proper having due regard for existing conditions or in a manner that unnecessarily endangers the person or property of another.
        1. For purposes of this Ordinance, the Town hereby limits the speed at which a Vehicle may be operated at thirty (30) miles an hour or the posted speed limit, whichever is less.
      2. While:
        1. under the influence of an alcoholic beverage; or
        2. unlawfully under the influence of a narcotic or other habit forming or dangerous depressant or stimulant durg.
      3. During the hours from thirty (30) minutes after sunset to thirty (30) minutes before sunrise without displaying a lighted headlight and a lighted taillight.
      4. In a forest nursery, a planting area, or public land posted or reasonably identified as an area of forest or plant reproduction and when growing stock may be damaged.
      5. On the frozen surface of public waters within:
        1. one hundred (100) feet of an individual not in or upon a vehicle; or
        2. one hundred (100) feet of a fishing shanty or shelter; except at a speed of not more than five (5) miles per hour.
      6. Unless the vehicle is equipped with a muffler in good working order and in constant operation to prevent excessive or unusual noise and annoying smoke.
      7. Within one hundred (100) feet of a dwelling between midnight and 6:00am, except on the individuals own property or property under the individuals control or as an invited guest.
      8. On any property without the consent of the landowner or tenant.
      9. While transporting on or in the vehicle a firearm, unless the firearm is:
        1. unloaded; and
        2. securely encased or equipped with and made inoperative by a manufactured key locked trigger housing mechanism.
      10. On or across a cemetery or burial ground.
      11. Within one hundred (100) feet of a slide, ski, or skating area, except for the purpose of servicing the area.
      12. On a railroad track or railroad right-of-way, except railroad personnel in the performance of duties.
      13. In or upon a flowing river, stream, or creek, except for the purpose of crossing by the shortest possible route, unless the river, stream, or creek is of sufficient water depth to permit movement by flotation of the vehicle at all times.
      14. An individual shall not operate a vehicle while a bow is present in or on the vehicle if the nock of an arrow is in position on the string of the bow.
    2. The exceptions, as contained in I.C. 14-16-1-23(b), apply herein.
  15. HOURS OF OPERATION: The hours of operation allowed for Vehicles are from 6:00am to 11:00pm.
  16. EXCLUSIONS:
    1. This Ordinance shall not apply to any Vehicles owned by the Town and used by the Town for official Town business.
    2. This Ordinance shall not apply to Vehicles being operated in a parade or other function sanctioned and authorized by the Town.
    3. This Ordinance does not rescind, repeal, or otherwise amend Ordinance 4, 2011 regarding the procedures for the use of golf carts during the Lapel Village Fair. Ordinance 4, 2011 remains in full force and effect.
  17. VIOLATIONS/PENALTIES:
    1. Any person who violates this Ordinance shall be fined up to an in an amount not to exceed $250.00
    2. Monites collected for a violation of this Ordinance shall be deposited into the Town's general fund pursuant to Indiana Code I.C. 9-21-1-3.3.
  18. CONFLICT WITH STATE LAW: No provision of this Ordinance is intended to conflict with or supersede state law.
  19. SEVERABILITY/VALIDITY: If any provision of this Ordinance shall be held to be invalid or unenforceable, that determination shall not affect the remaining provisions of this Ordinance and such remaining provisions shall be considered valid.
  20. EFFECTIVE DATE: This Ordinance shall become effective upon the adoption and signature of the Lapel Town Council, the posting of signs giving notice, and publication as required by law.

Further Information

8-2021
Date Passed: 4/15/2021

AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, TO ESTABLISH THE ARP CORONAVIRUS LOCAL FISCAL RECOVERY GRANT FUND.

SUMMARY

This Ordinance calls for the Common Council of the Town of Lapel, Madison County, Indiana, to establish the ARP Coronavirus Local Fiscal Recovery Grant Fund (Fund #176) purusant to I.C. 5-11. The sources of funding for the newly established fund will include monies allocated to the Town from the American Rescue Plan Act of 2021 (ARPA). The monies within this fund shall be used for eligible purposes of the ARPA.

Funds receipted into this Fund will require an additional appropriation approved by the Town Council. The fiscal officer will review the requested use of monies along with the City Attorney and financial advisory for compliance with ARPA requirements. The fiscal officer will also maintain detailed accounting records of the fund to provide future audits of the ARP fund.

BE IT ORDAINED by the Town Council of Lapel, Madison County Indiana:

Section I:

The Town Council of Lapel, Madison County, Indiana, ("Town" or "Lapel") recognizes that a need now exists for the establishment of the ARP Coronavirus Local Fiscal Recovery Grant Fund (Fund #176) pursuant to I.C. 5-11.

Section II:

The sources of funing for the newly established fund will include monies allocated to the Town from the American Rescue Plan Act of 2021 (ARPA). The monies within this fund shall be used for eligible purposes of the ARPA.

The Town anticipates using the monies for the following uses as described in Section 603(c) of ARPA:

  1. Section 603(c)(1)(C) - "for the provision of government services to the extent of the reduction in revenue of such metropolitan city, nonentitlement unit of local government or county due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, nonentitlement unit of local government or country prior to the emergency,".
  2. Section 603(c)(1)(D) - "to make necessary investments in water, sewer, or broadband infratructure."

The Town will develop a plan that details the uses of the monies received and that complies with Section 603 of ARPA.

 

Section III:

Funds receipted inthis Fund will require an additional appropriation (Common Council approval) and the fiscal officer will review the requested use of monies along with the City Attorney and financial advisor for complian with the ARPA requirements. The fiscal officer will also maintain detailed accounting records of the fund to provide for future audits of the ARP fund.

BE IT FURTHER ORDAINED that this Ordinance be in full force and effect from and after its passage by the Lapel Town Council.

Further Information

9-2021
Date Passed: 5/20/2021

AN ORDINANCE OF THE TOWN OF LAPEL, INDIANA ESTABLISHING DAYS AND HOURS OF USE OF FIREWORKS WITHIN THE TOWN OF LAPEL.

WHEREAS, Indiana Code I.C. 22-11-14 pertains to the regulation of fireworks; and,

WHEREAS, I.C. 22-11-14-10.5 allows a county or municipality to regulate the "use" of consumer fireworks in the unincorporated areas of a county or within the corporate limits of a municipality through the adoption of an ordinance; and,

WHEREAS, the term "use" is defined in I.C. 22-11-14-10.5(a) to mean when consumer fireworks may be used, ignited or discharged; and,

WHEREAS, I.C. 22-11-14-10.5(c) allows a country or municipality to limit the use of consumer fireworks by an ordinance, which said ordinance may not be more lenient than a rule adopted by a state agency concerning the use of fireworks and the county or municipality is prohibited from limiting the use of consumer fireworks during specified time periods as set forth in I.C. 22-11-14-10.5(c)(3); and,

WHEREAS, the term "consumer fireworks" is defined in I.C. 22-11-14-1;and,

WHEREAS, the Town of Lapel ("Town" or "Lapel") desires to establish operating hours for the use of consumer fireworks within the Town.

NOW, THEREFORE BE IT ORDAINED by the Town Council of the Town of Lapel, Madison County, Indiana, as follows:

Section 1: Recitals: The recitals stated herein are hereby incorporated by reference.

Section 2: Operating Hours: The use of consumer fireworks, as defined in I.C. 22-11-14-1, in the Town of Lapel is hereby allowed oly during the following dates and times as set forth below:

  1. Between the hours of 5:00pm and two (2) hours after sunset on June 29th, June 30th, July 1st, July 2nd, July 3rd, July 5th, July 6th, July 7th, July 8th and July 9th;
  2. Between the hours of 10:00am and 12:00 midnight on July 4th; and
  3. Between the hours of 10:00am on December 31st and 1:00am on January 1st.

Section 3: Locations: Pursuant to I.C. 22-11-14-6(b), "A person who ignites, discharges, or uses consumer fireworks at a site other than: (1) a special discharge location; (2) the property of the person; or (3) the property of another who has given permission to use the consumer fireworks; commits a Class C infraction. However, if a person rechlessly, knowingly, or intentionally takes an action described in this subsection within five (5) years after the person previously took an action described in this subsection, whether or not there has been a judgement that the person committed an infraction in taking the previous action, the person commits a Class C misdemeanor." I.C. 22-11-14-6(b).

The public right of way or street is not considered a special discharge location and thus the igniting, discharging, or use of consumer fireworks in the public right of way or street is strictly prohibited.

Section 4: Penalties for Violations: Any person who violates this Ordinance will be fined not more than $500.00 for each day a violation occurs or continues.

Section 5: Conflict with State Law: No provision of this Ordinance is intended to conflict with or supersede state law.

Section 6: Severability/Validity: If any provision of this Ordinance shall be held to be invalid or unenforceable, that determination shall not affect the remaining provisions of this Ordinance and such remaining provisions shall be considered valid.

Section 7: Effective Date: This Ordinance shall become effective upon the adoption and signature of the Town Council of the Town of Lapel and publication as required by law.

Further Information

10-2021
Date Passed: 6/17/2021

AN ORDINANCE OF THE TOWN OF LAPEL CREATING A NON-REVERTING FUND FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT AWARD

WHEREAS, the Town of Lapel ("Lapel" or "Town") was awarded a Community Development Block Grant ("CDBG Award") in December 2020 for the Wastewater/Drinking Water Program; and,

WHEREAS, the project that the CDBG Award will fund and enable the Town to complete includes installing 10,550 linear feet of water main, complete well improvements, and water treatment and storage improvements ("Project"); and,

WHEREAS, the Project must be completed by July 18, 2022; and,

WHEREAS, the Town desires to create a non-reverting fund for the CDBG Award; and,

WHEREAS, the CDBG Award will be given the fund number of 412 until and unless otherwise directed by the State Board of Accounts; and,

WHEREAS, the said CDBG Award shall remain in the non-reverting fund at the end of each fiscal year.

NOW, THEREFORE, BE IT ORDAINED, by the Town of Lapel, Madison County, Indiana, that:

  1. That the recitals stated herein are hereby incorporated by reference.
  2. That a non-reverting fund is hereby created for the CDBG Award.
  3. That this Ordinance shall be effective immediately upon passage by the Lapel Town Council.

Further Information

11-2021
Date Passed: 6/17/2021

Be it ordained by the Town of Lapel, Madison County, Indiana: Section #1 the salaries of the town officials, police officers, utility/park employees, and all others employed by the Town of Lapel, IN, effective for all pays after January 1st, 2021 and ending December 31st, 2021 shall be as follows, to-wit:

Clerk/Treasurer

  • General Fund $1,298
  • Gas Company $8,657
  • Water Company $8,657
  • Sewer Company $8,658
  • Total $27,270

Town Council Members

  • General Fund $290
  • Gas Company $1,836.67
  • Water Company $1,836.67
  • Sewer Company $1,836.66
  • Total $5,800

Town Council Vice President

  • General Fund $300
  • Gas Company $1,900.00
  • Water Company $1,900.00
  • Sewer Company $1,900.00
  • Total $6,000

Town Council President

  • General Fund $350
  • Gas Company $2,216.67
  • Water Company $2,216.67
  • Sewer Company $2,216.67
  • Total $7,000

Attorney

  • Annually $4,600

Janitor on Contract

  • $50/weekly

Checks will be issued as follows: Council-monthly, the next pay period following the Council meeting. 

Clerk/Treasurer weekly, Janitor-monthly, Town Attorney-semi-annually, and all other employees weekly.

Specific salaries for Town of Lapel employees beginning January 1st, 2021 and ending December 31st, 2021 are:

  • Police Chief $52,520 annually / $25.25/hour
  • Police Captain $43,919.20 annually / $21.12/hour
  • 1st Class Patrolman $39,208 annually / $18.85/hour
  • 2nd Class Patrolman $38,126.40 annually / $18.33/hour
  • 3rd Class Patrolman $37,065.60 annually / $17.82/hour
  • Part Time Officer $22/hour
  • Deputy Clerk $23.58/hour Office Administration
  • Accounts Payable $18.71/hour Office Administration
  • Seasonal Labor 1 $12.50/hour Part Time General Maintenance
  • Seasonal Labor 2 $16.48/hour Part Time Seasonal Labor
  • Seasonal Labor 3 $11.00/hour Part Time Seasonal Labor
  • Wastewater Operator $21.22/hour
  • Contract Employee $40.00hr/5hr week Water Operator/Sewer Operator
  • Utility Director $61,800 annually
  • Gas Operator $20.602/hour
  • Gas Assistant/Labor $16.23/hour
  • Utility Labor $15.00-$15.15/hour
  • Street/Utility Labor $16.71/hour
  • Code Enforcement $50,859.34 annually
  • Water Operator $16.71/hour
  • Full time/Part time Office Employee $16.54/hour

Section - Bereavment Days

Bereavement days- three (3) per family member, which includes and is limited to the following: wife, husband, children, stepchildren, father, mother, stepfather, stepmother, father-in-law, mother-in-law, brothers, sisters, and immediate grandparents; one day (1) for brother-in-law, sister-in-law and immediate aunts/uncles. Aunts/Uncles and immediate grandparents amended 11/21/2019.

Section - Paid Legal Holidays

All full-time employees are entitled to the following: New Year's Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving (Thursday & Friday), Christmas Eve and Christmas Day. Holidays are paid at the employee's current pay rate. As of January 1st 2020, Holidays will not be used in overtime calculations, or any special forms of compensation such as incentives, commissions, bonuses or shift differentials.

Vacation/Personal Days for Full-Time Employees

The amount of paid vacation benefits an employee earns each year increases with the length of his or her employment. Once employees enter an eligible employmeny classification, they earn vacation benefits according to the schedule below.

  • 90-days through December 31st of the employee's first year / 40-hours pro-rated based upon the number of months left in the year / Five-days pro-rated based upon the number of months left in the year.
  • On January 1st of the employee's first year to the December 31st prior to the employee's second anniversary / 40-hours / Five-days.
  • On January 1st prior to the employee's second anniversary to December 31st prior to the employee's fifth anniversary / 80-hours / Ten-days.
  • On January 1st prior to the employee's fifth anniversary to December 31st prior to the employee's tenth anniversary / 120-hours / Fifteen-days.
  • On January 1st prior to the employee's tenth anniversary and all subsequent years / 160-hours / Twenty-days.

Vacation benefits may be used in minimum increments of one hour. New employees are not entitled to paid vacation benefits during their first 90 days of employment. After 90 days of employment, employees will be eligible to use a pro-rated amount of vacation benefits for the remainder of the calendar year. Requests for vacation benefits will be honored on a "first come/first serve" basis. Employees should request approval from their Supervisors in writing at least 24 hours in advance of the requested time off. Approval of vacation benefits requests is the responsibility of a Supervisor and is subject to the operational needs of the Town. The Town reserves the right to deny vacation benefits requests when such vacation benefits would interfere with busy times, limited staff, or other circumstances which jeopardize the operations of the Town. All vacation benefits must be exhausted before an employee requests the use of unpaid time off.

Personal Days

The Town of Lapel provides paid personal days to all eligible employees for periods of temporary absence due to illness, injuries, or personal pursuits. Employees in the following employment classification(s) are eligible to earn and use personal days as described in this policy:

*Regular full time employees

Eligible employees receive eight personal days (64 hours) per calendar year which are available to employees on January 1st of each year. New employees are not entitled to paid personal days during their first 90 days of employment. After 90 days of employment, employees will be eligible to use a pro-rated amount of personal days for the remainder of the calendar year.

Employees should request approval from their Supervisors prior to the start of their shift. If a Supervisor cannot be reached, the employee should contact Town Hall prior to the start of their shift and leave a voicemail. Approval of personal day requests is the responsiblity of a Supervisor and is subject to the operational needs of the Town. The Town reserves the right to deny personal day requests when such personal days would interfere with busy times, limited staff, or other circumstances which jeopardize the operations of the Town.

Effective with the implementation of the handbook, personal days may not be carried over year to year.

All earned but unused personal days will be paid out on the last pay period in 2019. Beginning in 2020, earned but unused personal days will be forfeited at the end of the calendar year. Upon involuntary termination of employment, employees will not be paid for all earned but unused personal days. Upon voluntary termination of employment, employees who provide a minimum of two weeks' notice and work thru the final day of employment according to their notice will be paid for all earned but unused personal days.

Personal days are paid at the employee's current pay rate at the time of the personal day. Paid time off for personal days will be used in overtime calculations, and any special forms of compensation such as incentives, commissions, bonuses, or shift differentials thru December 31st, 2019. As of January 1, 2020, personal days will not be used in overtime calculations, or any special forms of compensation such as incentives, commissions, bonuses, or shift differentials.

Section Overtime

Overtime compensation will be paid to nonexempt employees in accordance with federal and state wage and hour restrictions, which includes any time worked over 40 hours in a standard workweek. Paid time off (vacations, holidays, personal days and bereavement leave) will be used in overtime calculations and any special forms of compensation such as incentives, commissions, bonuses, or shift differentials thru December 31st, 2019. 

As of January 1st, 2020 vacation time used, personal time used and holidays will not count toward the calculation of overtime.

The payroll clerk will prepare on a weekly basis, a report to the Council illustrating the amount of and who were paid overtime. It will be the job of the department supervisors to limit overtime whenever possible.

"ON CALL" Employees: The employees who are assigned to utilities duties on weekends that is is considered part of the essential duties and responsibilities of their job and is not considered an emergency will be paid at their straight time rate for all hours worked. Overtime will be paid to nonexempt employees in accordance with federal and state wage and hour laws, for any time worked over 40 hours in a standard workweek.

The definition of "on call" is being designated to be available to answer emergency calls from the Town during nonscheduled hours. Employees in an "on call" status are required to respond to an "on call" emergency within 30 minutes. Employees will be paid for a minimum of two hours of pay, regardless of the amount of time worked. Employees will receive premium pay at a rate of time and one half for all hours worked when in an employee is "on call". Premium pay will not be included in overtime calculations.

Section - Meeting Attendance Payment

Non-council members that are authorized members of the Planning Commission, Park Board, Board of Zoning Appeals and Storm Water Subcommittee will be paid $10 per meeting attended. Disbursements of amounts owed will be semi-annually July and January.

Section - Office Hours and Utility/Street Department Hours

Town Hall office hours are Monday - Friday 8am to 4pm. The Utility/Street Department hours are 7am to 3:30pm.

Section - Police Officers

Non-academy graduates will be in a probationary status until one year from graduation date.

Academy graduates will be on a probationary period of one year from hire date.

New hire without academy certification will be sent to the academy within one year of hire date.

If for some foreseen or unforeseen reason the officer has to leave the department or fails to complete the academy assignment, said officer must repay all training compensation of the Town of Lapel.

 

Section - Educational Reimbursement

It is the desire of the Town of Lapel that all employees gain more education in their specific disciplines. If the employee quits a course, paid by the Town of Lapel, the employee must repay to the Town the cost of the course. This would include tuition fees, cost of books and materials, and mileage reimbursements. If the employee completes the course work and attendance requirements, but fails the final test, reimbursement is not required. Retesting is at the discretion of the Council.

Section - Insurance

The Town of Lapel will pay 100% of the employee's health insurance premium; employees will have to pay dependent coverage, if desired. This benefit is available to full-time employees only. Employees who are eligible to enroll in the group medical program may choose to waive participation in the plan. Only employees covered under another group health carrier will be permitted to waive coverage. Employees are required to complete the appropriate form to waive ther election and provide verification of coverage.

  • Health, Life and Vision - Health Application
  • Life Only - Health Application (check life only, indicate waiver/other coverage)

An optional dental insurance benefit plan is offered to all full-time employees. The premium for the insurance policy is split 50%/50% between the employee and the employer.

Section - Utility Certificates.

When a Lapel Utility employee acquires a Class 1 operator's certification for water or wastewater, their salary will be increased 75 cents per hour.

When a Lapel Utility employee acquires a Class 2 operator's certification for water or wastewater, their salary will increase 75 cents per hour.

If a Lapel Utility employee receives an initial gas operators certification, their salary will be increased by 50 cents per hour.

If a Lapel Utility employee receives their CDL, their salary will increase $1.00 per hour. Per Council only four Utility employees are eligible to obtain a CDL at a time.

When a Lapel Utility employee acquires full certification for gas, their salary will be increased One Dollar ($1.00) per hour.

Section - Special Pay/Year End

Employees with 1 to 5 years of service will receive $100.00, employees with more than 5 year' of service will receive $250.00 at year end. Special/Year End Pay will be paid to the employees the first pay of December.

 

Further Information

12-2021
Date Passed: 7/15/2021

AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA AMENDING ORDINANCE #2-2021 

"AMENDED SALARY ORDINANCE FOR 2021" (2020 SALARY ORDINANCE)

WHEREAS, on Dec, 17th, 2020, the Town Council of the Town of Lapel, Indiana "Council" adopted Ordinance #15-2020 Salary Ordinance for 2021 (Effective January 1, 2021), which may be amended from time to time ("2021 Salary Ordinance"); and

WHEREAS, the Town Council again desires to amend the 2021 Salary Ordinance to provide for pay for employees upon obtaining certain certifications.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Lapel, Indiana, as follows:

1. The 2021 Amended Salary Ordinance for 2021 is hereby amended to add the following to the section titled "Section Utility Certificates":

"When a Lapel Utility employee acquires full certification for gas, their salary will be increased One Dollar ($1.00) per hour."

2. This Amendment to the 2021 Amended Salary Ordinance shall take effect immediately upon its adoption. Increases or changes in the payment schedule, when implemented, will be pro-rated respectively.

3. All other portions of the 2021 Salary Ordinance, including any amendments or exhibits thereto, shall remain in full force and effect.

SO ORDAINED THIS 15th DAY OF JULY 2021.

 

Further Information

13-2021
Date Passed: 7/15/2021

AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA MODIFYING LOCAL INCOME TAX RATES.

BE IT ORDAINED by the Town Council of Lapel, Madison County, Indiana that a need now exists to modify the local income tax rates imposed in the following way:

Allocation Rate Category Existing LIT Rate Proposed Lit Rate
Certified Shares (IC 6-3.6-6) 1.00% 1.00%
Public Safety (IC 6-3.6-6) 0.25% 0.55%
Economic Development (IC 6-3.6-6) 0.00% 0.00%
Property Tax Relief Rate (IC 6-3.6-6) 0.50% 0.50%

The local income tax rates proposed above will become effective on January 1, 2022.

BE IT FURTHER RESOLVED that a public hearing was held on the proposed local income tax rate modifications on October 21, 2021. Proper notice of the public hearing was provided pursuant to IC 5-3-1

DULY ADOPTED AND APPROVED by the Lapel Town Council this 21st day of October 2021.

Further Information

14-2021
Date Passed: 10/21/2021

AN ORDINANCE AUTHORIZING THE CURRENT REFUNDING OF THE TOWN OF LAPEL, INDIANA, WATERWORKS REVENUE BONDS, SERIES 2000, THE ISSUANCE AND SALE OF REFUNDING REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, AND THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SUCH WATERWORKS AND OTHER RELATED MATTERS.

WHEREAS, the Town of Lapel, Indiana (the "Town"), has heretofore established and constructed and currently owns and operates a waterworks by and through its Town Council (the "Town Council") furnishing the public water supply to the Town and its inhabitants (the "Waterworks"), pursuant to the provisions of IC 8-1.5, as amended; and

WHEREAS, the Town has withdrawn the Waterworks from the jurisdiction of the Indiana Utility Regulatory Commission; and

WHEREAS, pursuant to an Ordinance adopted by the Town Council of the Town (the "Town Council") on May 11, 2000, the Town has heretofore issued its Waterworks Revenue Bonds, Series 2000 (the "2000 BOnds" or the "Refunded Bonds") in the original principal amount of One Million Three Hundred Twenty-Eight Thousand Dollars ($1,328,000), payable from the Net Revenues (as hereinafter defined) of the Waterworks, said 2000 Bonds currently outstanding the principal amount of Nine Hundred Twenty-Three Thousand Dollars ($923,000), and maturing semiannually over a period ending on January 1st, 2040; and

WHEREAS, the Town Council has found that savings in interest cost can be generated through refunding the Series 2000 Bonds, and the Town Council hereby authorizes the issuance of refunding revenue bonds for such purpose to be known as the Town of Lapel, Indiana Waterworks Refunding Revenue Bonds, Series 2021A (the "Refunding Bonds") or the "2021A Bonds"); and

WHEREAS, the Town has issued its Waterworks Revenue Bonds, Series 2011 (the "Prior Bonds") in the original aggregate principal amount of One Million Two Hundred Fifty-Two Thousand Dollars ($1,252,000), of which One Million Ninety-One Thousand Dollars ($1,091,000) is now outstanding, and which Prior Bonds constitute a charge on the Net Revenues (as defined below); and

WHEREAS, the Town Council now finds that all conditions precedent to the issuance of the Refunding Bonds on a parity with the Prior Bonds have been or will be met; and

WHEREAS, the Refunding Bonds will constitute a charge against the Net Revenues on a parity with the Prior Bonds and are to be issued subject to the provisions of the laws of IC 8-1.5, as amended, and Indiana Code 5-1-5, as amended (collectively, the "Act" and this Ordinance);

NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LAPEL, INDIANA, AS FOLLOWS:

Section 1: Issuance of the Refunding Bonds. The Town, acting by and through the Town Council and as the owner and operator of the Waterworks for the furnishing of the public water supply to the Town and its inhabitants, now finds it necessary to provide funds for the refunding of the Refunding Bonds (referred to herein as the "Refunding").

Where used in this Ordinance, the term "Town" shall be construed also to include any department, board, commission or officer or officers of the Town or of any Town department, board or commission. The terms "Waterworks", "waterworks", "works" and similar terms used in this Ordinance shall be construed to mean and include the existing structures and property of the Waterworks and all enlargements, improvements, extensions and additions thereto, and replacements thereof, now or subsequently constructed or acquired. The refunding bonds herein authorized shall be issued pursuant to the provisions of this Ordinance and the Act.

Section 2: The Refunding Bonds. In Accordance with the Act and for the purpose of providing funds with which to pay the costs of the Refunding, together with authorized expenses relating thereto, including the costs of issuance of the Refunding Bonds on account thereof, the Town shall issue and sell its waterworks refunding revenue bonds in the aggregate principal of not to exceed One Million One Hundred Thousand Dollars ($1,100,00). The principal of, redemption premium, if any, and interest on the Refunding Bonds shall be payable solely out of the Bond and Interest Redemption Account referred to below, on a parity with the Prior Bonds.

The Refunding Bonds shall be designated as the "Town of Lapel, Indiana, Waterworks Refunding Revenue Bonds, Series 2021A.". The Refunding Bonds shall be issued in an aggregate principal amount of not to exceed One Million One Hundred Thousand Dollars ($1,100,00). The Refunding Bonds shall be issued as fully registered bonds in denominations of Five Thousand Dollars ($5,000) and any integral multiple thereof (or such higher minimum denominations as the Clerk-Treasurer shall determine prior to the sale of the Refunding Bonds), not exceeding the aggregate principal amount of the Refunding Bonds maturing in any one year, shall be numbered consecutively from 21AR-1 upward and shall bear interest at a rate not to exceed four percent (4.0%) per annum (the exact rate or rates to be determined by negotiation or by bidding). Interest on the Refunding Bonds shall be calculated on the basis of twelve (12) thirty (30)- day months for a three hundred sixty (360) day year and shall be payable semiannually on January 1st and July 1st in each year (or, if so determined prior to the issuance of the Refunding Bonds, annually on January 1st of each year) (each an "Interest Payment Date"), commencing not sooner than January 1st, 2022, until principal is fully paid. The principal of the Refunding Bonds shall mature serially commencing not sooner than January 1st, 2022, over a period of not more than twenty (20) years. The final amortization schedule for the Refunding Bonds shall be established by the Clerk-Treasurer as set forth in the Clerk-Treasurer's Certificate (as hereinafter defined) prior to the sale of the Refunding Bonds.

The Refunding Bonds shall bear an original issue date which shall be the date of issuance of the Refunding Bonds, and each Refunding Bond shall also bear the date of its authentication. Any Refunding Bond authenticated on or before the fifteenth day of the calendar month immediately preceding the first Interest Payment Date shall pay interest from its original issue date. Any Refunding Bond authenticated thereafter shall pay interest from the Interest Payment Date next preceding the date of authentication of such Bond to which interest thereon has been paid or duly provided for, unless such Refunding BOnd is authenticated after the day which is the fifteenth day of the calendar month immediately preceding an Interest Payment Date and on or before such Interest Payment Date, in which case interest thereon shall be paid from such Interest Payment Date.

The Clerk-Treasurer is hereby authorized to contract with a qualified financial institution to serve as registrar and a paying agent for the Refunding Bonds (the "Registrar" and "Paying Agent" and, in both such capacities, the "Registrar and Paying Agent"). The Registrar and Paying Agent shall be charged with and shall by appropriate agreement undertake the performance of all of the dutures and responsibilities customarily associated with each such position, including without limitation the authentication of the Refunding Bonds. The Clerk-Treasurer is authorized and directed to enter into such agreements and understandings with the Registrar and Paying Agent and any subsequent Registrar and Paying Agent as will enable and facilitate the performance of its duties and responsibilities, and is authorized and directed to pay such fees as the Registrar and Paying Agent may reasonably charge for its services in such capacity, and such fees may be paid from the Bond and Interest Redemption Account continued by this Ordinance.

The Registrar and Paying Agent may at any time resign as Registrar and Paying Agent upon giving thirty (30) days' notice in writing to the Town and by first-class mail to each registered owner of the Refunding Bonds then outstanding, and such resignation will take effect at the end of such thirty (30) days or upon the earlier appointment of a successor Registrar and Paying Agent by the Town. Any such notice to the Town may be served personally or sent by certified mail. The Registrar and Paying Agent may also be removed at any time as Registrar and Paying Agent by the Town, in which event the Town may appoint a successor Registrar and Paying Agent. The Town shall notify each registered owner of Refunding Bonds then outstanding by first-class mail of the remove of the Registrar and Paying Agent. Notices to registered owners of the Refunding Bonds shall be deemed to be given when mailed by first-class mail to the addresses of such registered owners as they appear on the registration books kept by the Registrar. Any predecessor Registrar and Payng Agent shall deliver all of the Refunding BOnds and cash in its possession with respect thereto, together with the registration books, to the successor Registrar and Paying Agent. The Clerk-Treasurer is hereby authorized to act on behalf of the Town with regard to any of the aforementioned actions of the Town relating to the resignation or removal of the Registrar and Paying Agent and appointment of a successor Registrar and Paying Agent.

If the Refunding Bonds are registered in the name of any purchaser that does not object to such designation, the CLerk-Treasurer shall be designated as the Registrar and Paying Agent for the Refunding Bonds and shall be charged with the performance of all of the duties and responsibilities of Registrar and Paying Agent.

Principal of and any redemption premium on the Refunding Bonds shall be payable at the principal office of the Paying Agent. Interest on the Refunding Bonds shall be paid by check or draft mailed or delivered by the Paying Agent to the registered owner thereof at the address as it appears on the registration books kept by the Registrar as of the fifteenth (15th) day of the month immediately preceding the Interest Payment Date or at such other address as may be provided to the Paying Agent in writing by such registered owner. All payments on the Refunding Bonds shall be made in any coin or currency of the United States of America which, on the dates of such payments, shall be legal tender for the payment of public or private debt.

Each Refunding Bond shall be transferable or exchangeable only on the books of the Town maintained for such purposes at the principal corporate trust office of the Registrar, by the registered owner thereof in person, or by his or her attorney duly authorized in writing, upon surrender of such Refunding Bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the registered owner or his or her attorney duly authorized in writing, and thereupon a new fully registered Refunding Bond or Refunding Bonds in the same aggregate principal amount and of the same maturity shall be executed and delivered in the name of the transferee or transferees or the registered owner, as the case may be, in exchange therefor. Each Refunding Bond may be transferred or exhanged without cost to the registered owner, except for any tax or other governmental charge which may be required to be paid with respect to such transfer or exchange. The Registrar shall not be obligated to make any transfer or exchange of any Refunding Bond (i) during the fifteen (15) days immediately preceding an Interest Payment Date or (ii) after the mailing of notice calling such Refunding Bond for redemption. The Town, the Registrar and the Paying Agent may treat and consider the person in whose name any Refunding Bond is registered as the absolute owner thereof for all purposes including the purpose of receiving payment of or on account of, the principal thereof, and redemption premium, if any, and interest thereon.

In the event any Refunding Bond is mutilated, lost, stolen or destroyed, the Town may cause to executed and the Registrar may authenticate a new Refunding Bond of like date, maturity and denomination as the mutilated, lost, stolen, or destroyed Refunding Bond, which new Refunding Bond shall be marked in a manner to distinguish it from the Refunding Bond for which it was issued; provided , that in the case of any mutilated Refunding Bond, such multilated Refunding Bond shall first be surrendered to the Registrar, and in the case of any lost, stolen or destroyed Refunding Bond there shall be first furnished to the Registrar evidence of such loss, theft or destruction satisfactory to the Town and the Registrar, together with indemnity satisfactory to them. In the even that any such mutilated, lost, stolen or destroyed Refunding Bond shall have matured or been called for redemption, instead of causing to be issued a duplicate Refunding Bond, the Registrar and Paying Agent may pay the same upon surrender of the mutilated Refunding Bond or upon satisfactory indemnity and proof of loss, theft or destruction in the case of a lost, stolen or destroyed Refunding Bond. The Town and the Registrar and Paying Agent may charge the owner of any such Refunding Bond with their reasonable fees and expenses in connection with the above. Every substitute Refunding Bond issued by reason of any Refunding Bond being lost, stolen or destroyed shall, with respect to such Refunding Bond, constitute a substitue contractual obligation of the Town pursuant to this Ordinance, whether or not the lost, stolen or destroyed Refunding Bond shall be found at any time, and shall be entitled to all the benefits of this Ordinance, equally and proportionately with any and all other Refunding Bonds duly issued hereunder.

In the event that any Refunding Bond is not presented for payment or redemption on the date established therefor, the Town may deposit in trust with the Paying Agent an amount sufficient to pay such Refunding Bond or the redemption price thereof, as appropriate, and thereafter the owner of such Refunding Bond shall look only to the funds so deposited in trust with the Paying Agent for payment and the Town shall have no further obligation or liability with respect thereto.

Section 3. Option Redemption of the Refunding Bonds: Term Bonds. The redemption provisions, including redemption dates and prices, with respect to the Refunding Bonds shall be set forth in the Clerk-Treasurer's Certificate prior to the sale of such Refunding Bonds.

Official notice of such redemption shall be mailed by the Registrar and Paying Agent by certified or registered mail at least thirty (30) days prior to the scheduled redemption date to each of the registered owners of the Refunding Bonds called for redemption (unless waived by any such registered owner) at the address shown on the registration books of the Registrar and Paying Agent, or at such other address as is furnished in writing by such registered owner to the Registrar; provided, however, that any failure to give such notice by mailing, or any defect therein, with respect to any Refunding Bond shall not affect the validity of the proceedings for the redemption of any other Refunding Bonds. The notice shall specify the redemption price, the date and place of redemption, and the registration numbers (and, in case of partial redemption, the respective principal amounts) of the Refunding Bonds called for redemption. The place of redemption may be at the principal corporate trust office of the Registrar and Paying Agent or as otherwise determined by the Town. Interest on the Refunding Bonds (or portions thereof) so called for redemption shall cease to accrute on the redemption date fixed in such notice, if sufficient funds are available at the place of redemption to pay the redemption price on the redemption date and when such Refunding Bonds (or portions thereof) are presented for payment. Any Refunding Bond redeemed in part my be exchanged for a Refunding Bond or Refunding Bonds of the same maturity in authorized denominations equal to the remaining principal amount thereof.

Upon the payment of the redemption price of the Refunding Bonds (or portions thereof) being redeemed and if so directed by the Town, each check or other transfer of funds issued for such purpose shall bear the CUSIP number, if any, identifying, by issue and maturity, the Refunding Bonds (or portions thereof) being redeemed with the proceeds of such check or other transfer.

As determined by the Clerk-Treasurer, with the advice of the financial advisor to the Town, as set forth in the Clerk-Treasurer's Certificate, all or a portion of the Refunding Bonds may be aggregated into one or more term bonds payable from mandatory sinking fund redemption payments ("Term Bonds") required to be made as set forth below. The Term Bonds shall have a stated maturity or maturities as determined by the Clerk-Treasurer, with the advice of the financial advisor to the Town, as set forth in the Clerk-Treasurer's Certificate.

In the event that the Clerk-Treasurer opts to aggregate certain Refunding Bonds into Term Bonds, such Term Bonds shall be subject to mandatory sinking fun redemption prior to maturity at a redemption price equal to 100% of the principal amount thereof, plus accrued interest ot the redemption date, but without premium, on the dates and in the principal amounts set forth in the Clerk-Treasurer's Certificate.

The Registrar shall credit against any mandatory sinking fund redemption requirement for a Term Bond of a particular maturity, any Refunding Bonds of such maturity purchased for cancellation by the Town and canceled by the Registar and not theretofore applied as a credit against any mandatory sinking fund redemption requirement. Earth Bond is purchased shall be credited by the Registrar at 100% of the principal amount thereof against ther mandatory sinking fund redemption requirements for the applicable Term Bond in inverse order of mandatory sinking fund redemption (or final maturity) dates, and the principal amount of such Term Bond to be redeemed on such mandatory sinking fund redemption dates by operation of the mandatory sinking fund requirements shall be reduced accordingly.

The Registrar shall determine by lot (treating each minimum denomination of principal amount of each Bond as a separate Bond for such purpose) the Refunding Bonds within a Term Bond of a particular maturity to be redeemed pursuant to mandatory sinking fund redemption requirements on a mandatory redemption date.

Notice of any such mandatory sinking fund redemption shall be given in the manner provided in this Section 3 of this Ordinance.

Section 4. Execution and Authentication of the Refunding Bonds. The Refunding Bonds shall be executed in the name of the Town by the manual or facsimile signature of the President of the Town Council (the "Town Council President") and attested by the manual of facsimile signature of the Clerk-Treasurer, who shall cause the seal, if any, of the Town or a facsimile thereof to be affixed to each of the Refunding Bonds. The Refunding Bonds shall be authenticated by the manual signature of the Registrar, and no Refunding Bond shall be valid or obligatory for any purpose until the certificate of authentication thereon has been so executed. In case any official whose signature appears on any Refunding Bond shall cease to be such official before the delivery of such Refunding Bond, the signature of such official shall nevertheless be valid and sufficient for all purposes, the same as if such official had been in office at the time of such delivery. Subject to the provisions of this Ordinance regarding the registration of the Refunding Bonds, the Refunding Bonds shall be fully negotiable instruments under the laws of the State of Indiana.

The Refunding Bonds may, in complaicne with all applicable laws, be issued and held in book-entry form on the books of the central depository system, The Depository Trust Company, or its successors, or any successor central depository system appointed by the Town from time to time (the "Clearing Agency"). The Town and Registrar may, in connection therewith, do or perform or cause to be done or performed any acts or things not adverse to the rights of the holders of the Refunding Bonds, as are necessary or appropriate to accomplish or recongnize such book-entry from Refunding Bonds.

During any time that the Refunding Bonds are held in book-entry form on the books of a Clearing Agency (1) any such Refunding Bond may be registered upon the books kept by the Registrar in the name of such Clearing Agency, or any nominee thereof, including CEDE & Co, as nominee of the Depository Trust Company; (2) the Clearing Agency in whose name such Refunding Bond is so registered shall be, and the Town and the Registrar and Paying Agent may deem and treat such Clearing Agency as, the absolute owner and holder of such Refunding Bond for all purposes of this Ordinance, including, without limitation, the receiving of payment of the principal of, premium, if any, on and interest on such Refunding Bond, the receiving of notice and giving of consent; (3) neither the Town nor the Registrar or Paying Agent shall have any responsibility or obligation hereunder to any direct or indirect participant, within the meaning of Section 17A of the Securities Exchange Act of 1934, as amended, of such Clearing Agency, or any person on behalf of which, or otherwise in respect of which ,any such participant holds any interest in any Refunding Bond, including, without limitation, any responsibility or obligation hereunder to maintain accurate records of any interest in any Refunding Bond or any responsibility or obligation hereunder with respect to the receiving of payment of principal, premium, if any, or interest on any Refunding BOnds, the receiving of notice or the giving of consent; and (4)  the Clearing Agency is not required to present any Refunding Bond called for partial redemption prior to receiving payment so long as the Registrar and Paying Agent and the Clearing Agency have agreed to the method for noting such partial redemption.

If either (i) the Town receives notice from the Clearing Agency which is currently the registered owner of the Refunding Bonds to the effect that such Clearing Agency is unable or unwilling to discharge its responsibility as a Clearing Agency for the Refunding BOnds or (ii) the Town elects to discontinue its use of such Clearing Agency as a Clearing Agency for the Refunding Bonds, then the Town and Registrar and Paying Agent each shall do or perform or cause to be done or performed all acts or things, not adverse to the rights of the holders of the Refunding Bonds as are necessary or appropriate to discontinue use of such Clearing Agency as a Clearing Agency for the Refunding Bonds and to transfer the ownership of each of the Refunding Bonds to the person or persons, including any other Clearing Agency, as the holder of the Refunding Bonds may direct in accordance with this Ordinance. Any expenses of such discontinuance and transfer, including expenses of printing new certificates to evidence the Refunding Bonds, shall be paid by the Town.

During any time that the Refunding Bonds are held in book-entry form on the books of a Clearing Agency, the Registrar and Paying Agent shall be entitled to request and rely upon a certificate or other written representation from the Clearing Agency or any participant or indirect participant with respect to the identity of any beneficial owners of the Refunding Bonds as of a date selected by the Registrar and Paying Agent. For purposes of determining wheter the required advice, discretion or demand of a Registered Owner of the Refunding Bond has been obtained, the Registrar or Paying Agent shall be entitied to treat the beneficial owners of the Refunding Bonds as the Refunding Bondholders.

During any time that the Refunding Bonds are held in book-entry form on the books of a Clearing Agency, the Clerk-Treasurer and/or the Registrar are authorized to enter into a Letter of Representations agreement with the Clearing Agency, and the provisions of any such Letter of Representations or any successor agreement shall control on the matters set forth herein.

Section 5. Security and Sources of Payment for the Refunding Bonds. The Refunding Bonds, when fully paid for and delivered to the purchaser thereof, together with any other bonds issued on a parity therewith, as to both principal and interest, shall be valid and binding special revenue obligations of the Town, payable, on a parity basis with the Prior Bonds, solely from and secured by an irrevocable pledge of and constituting a charge upon all of the Net Revenues (herein defined as gross revenues after deduction only for the payment of the reasonable expenses of operation, repair, and maintenance) derived from the Waterworks, including all such Net Revenues from the existing works, the Project and all additions and improvements thereto and replacements thereof subsequently constructed or acquired, to be set aside into the Bond and Interest Redemption Account as herein provided. The Town shall not be obligated to pay the Refunding Bonds or the interest thereon except from the Net Revenues of the Waterworks, and the Refunding Bonds shall not constitute an indebtedness of the Town within the meaning of the provisions and limitations of the constitution of the State of Indiana.

Section 6. Form of the Refunding Bonds. The form and tenor of the Refunding Bonds shall be substantially set forth in Appendix A attached hereto and incorporated herein as if set forth at this place (with blanks to be properly completed prior to the preparation of the Refunding Bonds)

Section 7. Issuance, Sale and Delivery of the Refunding Bonds. The Clerk-Treasurer is hereby authorized and directed to have the Refunding Bonds prepared, and the Town Council President and the Clerk-Treasurer are each hereby authorized and directed to execute the Refunding Bonds in the form and manner herein provided. The Clerk-Treasurer is hereby authorized and directed to deliver the Refunding Bonds to the purchaser or purchasers thereof after the sale made in accordance with the provisions of the Act and this Ordinance, provided that at the time of said delivery the Clerk-Treasurer shall collect the full amount which the purchaser or purchasers have agreed to pay therefor, which shall be not less than 97.0% of the par amount of the Refunding Bonds (or such higher percentage of the par amount of the Refunding Bonds as the Clerk-Treasurer shall determine prior to the sale thereof), plus accrued interest thereon to the date of delivery, if any. The proceeds derived from the sale of the Refunding Bonds shall be and are hereby set aside for application to the costs of the Refunding, together with the expenses necessarily incurred in connection therewith including the expenses incurred in the issuance of the Refunding Bonds. The authorized officers of the Town are hereby authorized and directed to draw all proper and necessary warrants and to do whatever other acts and things that may be necessary or apppropriate to carry out the provisions of this Ordinance.

The Refunding Bonds may, in the discretion of the Clerk-Treasurer, be sold either at public sale or by private negotiation.

Prior to the delivery of the Refunding Bonds, the Clerk-Treasurer, subject to the approval of the Town Council, (i) shall be authorized to investigate, negotiate and obtain bond insurance, other forms of credit enhancement and/or credit ratings on the Refunding Bonds and to obtain a legal opinion as to the validity of the Refunding Bonds from Barnes & Thornburg LLP, Indianapolis, Indiana, bond counsel for the Town, with such opinion to be furnished to the purchaser of the Refunding Bonds at the expense of the Town. The costs of obtaining such insurance, other credit enhancement and/or credit ratings, together with bond counsel's fee for deliverying such opinion and in the performance of related services in connection with the issuance, sale and delivery of the Refunding Bonds, shall be considered as a part of the costs of the Refunding and shall be paid out of the proceeds of the Refunding Bonds.

Section 8. Disposition of Proceeds of the Refunding Bonds. Concurrently with the delivery of the Refunding Bonds, the Clerk-Treasurer shall apply a portion of the proceeds thereof, together with other available funds of the Town, to fully redeem the Refunded Bond at the earliest opportunity. The proper officers of the Town are hereby authorized and directed to take all actions deemed necessary or appropriate to effectuate the Refunding, including entering into an escrow agreement with a qualified financial institution.

Section 9. Segregation and Application of Waterworks Revenue. All revenues derived from the operation of the waterworks and from the collection of water rates and charges shall be segregated and kept in a special fund separate and apart from all other funds of the Town. Out of this fund the proper and a response expenses of operation, repair and maintenance of the waterworks shall be paid and the requirements of the Bond and Interest Redemption Account shall be met.

The income and revenues of the Waterworks shall be segregated and set aside into a special fund separate and apart from all other funds of the Town heretofore established and designated as the "Town of Lapel, Indiana, Waterworks Special Fund" (the "Special Fund") to be used and applied in the operation, repair and maintenance thereof, in the payment of the principal of and interest on the then outstanding bonds of the Waterworks and in establishing a reserve for such payment, in establishing an improvement account and for other purposes of the Waterworks, all as follows:

(a) Operation and Maintenance Account. On the last day of each calendar month, a sufficient amount of the gross revenues of the Waterworks shall be paid into an account of the Special Fund heretofore established and hereby continued and designated as the "Town of Lapel, Indiana, Waterworks Operation and Maintenance Account" (the "Operation and Maintenance Account") for the payment of all necessary and reasonable expenses of operation, repair and maintenance of the Waterworks for the then next succeeding two calendar months.

(b) Bond and Interest Redemption Account. There is hereby continued an account of the Special Fund previous established by the Town designated as the "Town of Lapel, Indiana, Bond and Interest Redemption Account" (the "Bond and Interest Redemption Account"), which account shall be used for the payment of the interest on and principal of the then outstanding bonds of the Waterworks and the payment of any fiscal agency charges in connection with the payment of such principal and interest thereon. Said account shall be continued until all outstanding bonds of the Waterworks, including the Refunding Bonds, have been paid. The Bond and Interest Redemption Account consists of a Debt Service Subaccount and a Reserve Subaccount. As available, there shall be paid into the Debt Service Subaccount of the Bond and Interest Redemption Account a sufficient amount of the net revenues of the Waterworks for the payment of (a) the interest on the Refunding Bonds, the Prior Bonds and any other bonds hereafter issued and payable by their terms from the net revenues of the Waterworks, as such interest shall fall due; (b) the necessary fiscal agency charges for paying such bonds and interest; and (c) the principal of the Refunding Bonds, the Prior Bonds and any other bonds hereafter issued and payable by their terms from the net revenues of the Waterworks, as such principal shall fall due. The monthly payments into the Debt Service Subaccount of the Bond and Interest Redemption Account shall be in an amount equal to at least one-sixth (1/6) (one-twelfth (1/12) if interest on the Refunding Bonds is payable on an annual basis) of the amount required for the payments of interest on the Bonds and all other bonds hereafter issued and payable by their terms from the revenues of the Waterworks during the next succeeding six (6) months (twelve (12) months if interest on the Refunding Bonds is payable on an annual basis) and an amount equal to one-twelfth (1/12) of the amount required during the next succeeding twelve (12) calendar months for payments into the Debt Service Subaccount of the Bond and Interest Redemption Account for the purposes described herein other than the payment of interest.

All of the net revenues of the Waterworks not used in making the required Debt Service Subaccount payments shall next be set aside as available and paid into the Reserve Subaccount account monthly until there has been accumulated therein an amount equal to the least of (a) the maximum annual debt service on all bonds payable from the net revenues of the Waterworks, (b) 125% of the average annual debt service on all bonds payable from the net revenues of the Waterworks, or (c) ten percent (10%) of the proceeds of all bonds payable from the net revenues of Waterworks (the least of (a), (b)  and (c) is herein referred to as the "Reserve Requirement"), until there has been accumulated in the Reserve Subaccount an amount equal to the Reserve Requirement. However, the Reserve Requirement shall be equal to the maximum annual debt service on all bonds payable from the net revenues of the Waterworks for so long as as any such bonds are held by the Indiana Finance Authority

In no event shall any part of the Bond and Interet Redemption Account be used in calling Refunding Bonds for redemption prior to maturity, except to the extent that the amount then in Bond and Interest Redemption Account exceeds the amount required to pay the principal of the bonds payable therefrom which will mature within a period of twelve (12) calendar months next succeeding the date of said redemption, together with all interest on the Refunding Bonds payable in said period. Any excess of funds above said required level may also be used in purchasing outstanding bonds at a price less than the then applicable redemption price. Moneys in the Bond and Interest Redemption Account shall not be used for any other purpose whatsoever except as provided in this Ordinance.

(b) Improvement Account. In the event all required monthly deposits into the Bond and Interest Redemption Account have been made, then any excess net revenues of the Waterworks shall be deposited monthly as available into an account of the Special Fund previous established and continued hereby as the "Town of Lapel, Indiana, Waterworks Improvement Account" (the "Improvement Account"), to be used to pay the cost of additions, improvements, replacements and repairs to the Waterworks. No revenues of the Waterworks shall be deposited in or credited to the Improvement Account which will interfere with the requirements of the Bond and Interest Redemption Account.

In the event of any deficiency at any time in the Bond and Interest Redemption Account for the purposes of paying the interest on or principal of bonds payable therefrom or any required fiscal agency charges, funds may be withdrawn from the Improvement Account for deposit into the Bond and Interest Redemption Account in the amount of such deficiency.

Any revenues remaining after meeting the requirements of the Operation and Maintenance Account, the Bond and Interest Redemption Account and the Improvement Account may be used for any lawful purposes including payments in lieu of taxes which would be payable if the Town's Waterworks were privately owned and transfers to the Town's General Fund or any other fund of the Town.

All of the amounts in the several funds and accounts created and/or continued pursuant to this Section 9 shall be deposited in lawful depositories of the State, and shall be continuously held and secured or invested as provided by the laws of Indiana relating to the depositing, securing, holding and investing of public funds, including particularly Indiana Code 5-13-9. The amounts in the Bond and Interest Redemption Account and all other funds and accounts created pursuant to this Section 9 shall be kept in separate bank accounts apart from all other bank accounts of the Town. In no event shall any of the revenues of the Waterworks be transferred or used for any purpose not authorized by this Ordinance so long as any of the bonds issued pursuant to the provisions of this Ordinance shall be outstanding.

Section 10. Books of Records and Accounts. The Town shall keep proper books of record and accounts, separate from all of its other records and accounts, in which completed and accurate entries shall be made and showing all revenues collected from said works and deposited in such accounts and all disbursements made therefrom on account of the operation of the works, and to satisfy the requirements of the Bond and Interest Redemption Account and all other financial obligations relating to said works. There shall be prepared and furnished upon written request, to the holders of the Refunding Bonds at the time then outstanding, not more than ninety (90) days after the end of each fiscal year, complete financial statements of the works, covering the preceding year, which annual statements shall be certified by the Clerk-Treasurer, or by licensed certified public accountants employed for that purpose. Copies of all such statements and reports shall be kept filed in the office of the Clerk-Treasurer. Any owner of owners of at least five percent (5%) of the Refunding Bonds then outstanding shall have the right at all reasonable times to inspect the works and all records, accounts and data of the Town relating thereto. Such inspections shall be performed by representatives duly authorized by written instrument.

Section 11. Rates and Charges. The Town, to the fullest extent permitted by law, shall fix, maintain and collect reasonable and just rates and charges for the use of and the services rendered by the Waterworks so that such rates and charges shall produce revenues at least sufficient each year to (a) pay all the legal and other necessary expenses incident to the operation of the Waterworks, including maintenance costs, operating charges, upkeep, repairs, depreciation charges on bonds or other obligation, including leases; (b) provide a sinking fund for payment of bonds or other obligations, including leases; (c) provide a debt service reserve for all obligations, including leases as required by the terms of such obligations; (d) provide adequate money for working capital; (e) provide adequate money for making extensions and improvements; and (f) provide money for the payment of any taxes that may be assessed against the Waterworks.

So long as any of the Refunding Bonds are outstanding, none of the facilities and services afforded by the Waterworks shall be furnished without a reasonable and just charge being made therefor. The reasonable cost and value of any facility or service rendered to the Town, or to any department, agency, or instrumentality thereof by the Waterworks by furnishing water for public purposes or by maintaining hydrants and other facilities for fire protection shall be (i) charged against the Town; and (ii) paid for in monthly installments as the service accrues, out of the current revenues of the Town, collected or in the process of collection, and the tax levy of the Town made by it to raise money to meet its necessary current expenses. The revenue received shall be deemed to be revenue derived from the operation of the Waterworks and shall be used and accounted for in the same manner as other revenues derived from the operation of the Waterworks.

Section 12. Defeasance. If, when the bonds issued hereunder shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions to call the bonds for redemption shall have been given, and the whole amount of the principal and the interest and the premium, if any, so due and payable upon all of the Refunding Bonds then outstanding shall be paid; or (i) sufficient moneys, or (ii) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, the principal of and the interest on which when due will provided sufficient funds; or (iii) time certificates of deposit fully secured as to both principal and interest by obligations of the kind described in (ii) above of a bank or banks the principal of and interest on which when due will provide sufficient moneys, shall be held in trust for such purpose, and provisions be made for paying all fees and expenses for the redemption, then and in that case the Refunding Bonds issued hereunder shall no longer be deemed outstanding or entitled to the pledge of the net revenues of the Town's Waterworks.

Section 13. Sale, Lease, Mortgage or Disposition of the Waterworks. For purposes of safeguarding the interests of the owners of the Refunding Bonds, the Town covenants, represents and agrees as follows:

(a) The Town will not sell, lease, mortgage, pledge or otherwise dispose of or encumber the Waterworks or any component or part thereof except as permitted in this Section 13.

(a) The Town may sell, scrap, discard or otherwise dispose of materials relating to the Waterworks being replaced in the ordinance course of business of the Waterworks. The proceeds, if any, received front the sale of such materials relating to the Waterworks shall be deposited into and credited to the Improvement Account.

(b) The Town may sell or otherwise dispose of equipment or fitures of the Waterworks under the following conditions:

(1) If the book value of such property, as determined by consulting engineers employed by the Town, together with the book value of all such property previous sold, scrapped, discarded or disposes of under this Section 13(c) in such fiscal year, does not exceed two percent (2%) of the book value of the Waterworks, then such property may be sold or otherwise disposed of in accordance with the Act, so long as the Town Council (by affirmative vote at a meeting duly called and held) (i) finds that such property is no longer necessary, useful or profitable in the operation of the Waterworks and (ii) authorized the sale or other disposition of such property. Any proceeds received from the sale of such property shall be deposited into and credited to the Improvement Account.

(2) If the book value of such property, together with the book value of all such property previously sold, scrapped, discarded or disposed of under this Section 15(c) in such fiscal year, exceeds two percent (2%) of the book balue of the Waterworks, then such property may be sold or otherwise disposed of upon the affirmative vote of the Town Council, as provided in subsection (c)(1) herein, if the consulting engineers employed by the Town submit to the Town Council a written determination that (A) the sale or other disposition of such property will not materially and adversely affect the operation of the Utility or the Town's ability to meet its obligations under this Ordinance or (B) such property is no longer necessary, useful or profitable in the operation of the Waterworks. Any proceeds derived from the sale of such property shall be deposited into and credited to the Improvement Account.

Section 14. Additional Bonds. The Town reserves the right to authorized and issue additional bonds payable of of the net revenues of its Waterworks, ranking on a parity with the bonds authorized by this ordinance, for the purpose of financing the cost of future additions, extensions and improvements to the Waterworks, subject to the following conditions:

(a) The interest on and principal of all bonds payable from the revenues of the Waterworks shall have been paid to date in accordance with the terms thereof.

(a) The net operation revenues of the Waterworks in the fiscal year immediately precending the issuance of any such bonds ranking on a parity with the bonds authorized by this section shall be not less than one hundred twenty-five percent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional partiy bonds to be issued; or, prior to the issuance of said parity bonds, the water rates and charges shall be increased sufficiently so that said increased rates and charges applied to the previous fiscal year's revenues would have produced net operating revenues for said year equal to not less than one hundred twenty-five percent (125%) of the maximim annual interest and principal requirements of the then outstanding bonds and the additional parity bonds proposed to be issued. For purposes thereof the records of the Waterworks shall be analyzed and all showings shall be prepared by certified public accountants employed by the Town for that purposes.

(b) The principal of said additional parity bonds shall be payable on January 1st and the interest on said additional parity bonds shall be payable on the same Interest Payment Dates as the Refunding Bonds.

Section 15. Additional Covenants of the Town. For the purpose of further safeguarding the interests of the owners of the Refunding Bonds herein authorized, it is specifically provided as follows:

(a) The Town shall at all times maintain its Waterworks in good condition and operate the same in an efficient manner and at a reasonable cost.

(a) So long as any of the Refunding Bonds herein authorized are outstanding, the Town shall maintain insurance on the insurable parts of said works of a kind and in an amount such is normally carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the State of Indiana. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be treated and applies as net revenues of the Waterworks.

(b) Except as hereinbefore provided in Section 14 hereof, so long as any of the Refunding Bonds herein authorized are outstanding, no additional bonds or other obligations payable from any portion of the revenues of the Waterworks shall be authorized, executed or issued by the Town except such as shall be made subordinate and junior in all respects to the bonds herein authorized, unless all of the bonds herein authorized are redeemed, retired or cancelled pursuant to Section 12 hereof coincidentally with the delivery of such additional bonds or other obligations.

(c) The provisions of this Ordinance shall be construed to create a trust in the proceeds of the sale of the Refunding Bonds for the uses and purposes herein set forth and, so long as any of the Refunding Bonds are outstanding, the provisions of this Ordinance shall also be construed to create a trust in the revenues of the Waterworks herein directed to be set apart and paid into the Bond and Redemption Account for the uses and purposes of such Account as set forth in this Ordinance.

(d) The provisions of this Ordinance shall constitute a contract by and between the Town and the owners of the Refunding Bonds, all of the terms of which shall be enforceable at alw or in equity, and after the issuance of the Refunding BOnds this Ordinance shall not be repealed or amended in any respect would adversely affect the rights and interests of the owners of the Refunding Bonds, and the Town Council of the Town shall not adopt any law, ordinance or resolution which in any way would adversely affect the rights of such owners os long as any of the principal of or interest on the Refunding Bonds remains unpaid; provided, that the Town shall have the right to amend this Ordinance, under certain circumstances, without notice to or approval by any owners of the Refunding Bonds in accordance with Section 18 of this Ordinance. The owners of the Refunding Bonds shall have all of the rights, remedies and privileges provided in the Act and under Indiana law.

Section 16. Permitted Actions Relating to Preservation of Exclusion of Interest from Federal Gross Income. 

(a) The Clerk-Treasurer is hereby authorized to invest moneys pursuant to the provisions of this Ordinance at a restricted yield (subject to applicable requirements of federal law to insure such yield is then current market rate) to the extent necessary or advisable to preserve the exclusion from gross income of interest on the Refunding Bonds, or the tax-exempt status of interest on the Refunding Bonds, under federal law.

(a) The Clerk-Treasurer shall keep full and accurate records of investment earnings and income from moneys held in the funds and accounts created or referenced herein. In order to comply with the provisions of this Ordinance, the Clerk-Treasurer is hereby authorized and directed to employ consultants or attorneys from time to time to advise the Town as to requirements of federal law to preserve the tax exclusion or exemption.

Section 17. Tax Covenants. In order to preserve the exclusion of interest on the Refunding Bonds from gross income for federal income tax purposes and as an inducement to the holders of the Refunding Bonds, the Town represents, covenants and agrees that:

(a) No person or entity, other than the Town or another state or local governmental unit, will use proceeds of the Refunding Bonds or property secured by the Refunding Bond proceeds other than as a member of the general public. No person or entity other than the Town or another state or local governmental unit will own property financed by the Refunding Bond proceeds or will have actual or beneficial use of such property pursuant to a lease, a management or incentive payment contract, an arrangement such as take-or-pay or output contract or any other type of contract that differentiates that person's or entity's use of such property from the use by the public at large.

(a) No Refunding Bond proceeds will be loaned to any entity or person. No Refunding Bond proceeds will be transferred, directly or indirectly, or deemed transferred to a non-governmental persona in any manner that would in substance constitute a loan of the Refunding Bond proceeds.

(b) The Town will not take, or cause or permit to be taken by it or by any party subject to its control, or fail to take or cause or permit to fails to be taken by it or by any party under its control, any action with respect to the Refunding Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the Refunding Bonds pursuant to Section 103 of the Code, nor will the Town act in any other manner which would adversely affect such exclusion. The Town further convenants that it will not make any investment or do any other act or thing during the period that any Refunding Bond is outstanding hereunder which would cause any Refunding Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations applicable thereto as in effect on the date of delivery of the Refunding Bonds.

(c) The Town will, to the extent necessary to preserve the exclusion of interest on the Refunding Bonds from gross income for federal income tax purposes, rebate all required arbitrage profits on Refunding Bond proceeds or other moneys treated as Refunding Bond proceeds to the federal government and will set aside such moneys in a Rebate Account to be held by the Clerk-Treasurer in trust for such purpose.

(d) All officials, officers, members, employees and agents of the Town are hereby authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the Town as of the date that the Refunding Bonds are issued, and to make covenants on behalf of the Town evidencing the commitments made herein and to do all such other acts necessary or appropriate to carry out this Ordinance. In particular and without limiting the foregoing, any and all appropriate officials, officers, members, employees  and agents of the Town are authorized to certify and/or enter into covenants on behalf of the Town regarding (i) the facts and circumstances and reasonable expectations of the Town as of the date that the Refunding Bonds are issued and (ii) the commitments made herein by the Town regarding the amount and use of the proceeds of the Refunding Bonds.

(e) The Clerk-Treasurer is hereby authorized to employ consultants and attorneys from time to time to advise the Town with respect to the requirements under federal law for the continuing preservation of the exclusion of interest on the Refunding Bonds from gross income for purposes of federal income taxation, as described in this Section 19.

Section 18. Supplemental Ordinances. Without notice to or consent of the owners a majority of bonds herein authorized, the Town may, from time to time and at any time adopt an ordinance supplemental hereto (which supplemental ordinance or ordinances shall thereafter form a part hereof) for any of the following purposes:

(a) To cure any ambiguity or formal defect or omission in this Ordinance or in any supplemental ordinance or to make any other change authorized herein;

(a) To grant to or confer upon the owners of the bonds herein authorized any additional benefits, rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners of the bonds herein authorized or to make any change which, in the judgment of the Town, is not to be prejudice of the owners of the bonds herein authorized;

(b) To modify, amend or supplement this Ordinance to permit the qualifications of the bonds herein authorized for sale under the securities laws of the United States of America or of any sof the states of the United States of America or to obtain or maintain bond insurance with respect to payments of principal of and interest on bonds herein authorized;

(c) To provide for the refunding or advance refunding of the bonds herein authorized;

(d) To procure a rating on the bonds herein authorized from a nationally recognized securities rating agence or agencies designated in such supplemental ordinance if such supplemental ordinance will not adversely affect the owners of the bonds herein authorized; and

(e) Any other purpose which, in the judgment of the Town, does not adversely affect the interests of the owners of the bonds herein authorized.

Subject to the terms and provisions contained in this Section 18, and not otherwise, the owners of not less than sixty-six and two-thirds percent (66-2/3%) in aggregate principal amount of the bonds issued pursuant to this Ordinance and then outstanding shall have the right, from time to time, anything contained in this Ordinance to the contrary notwithstanding, to consent to and approve the adoption by the Town of such ordinance or ordinances supplemental hereto as shall be deemed necessary or desirable by the Town for the purpose of modifying, altering, amending, adding or rescinding in any particular any of the terms or provisions contained in this ordinance, or in any supplemental ordinance; provided, however that nothing herein contained shall permit or be construed as permitting:

(a) An extension of the maturity of the principal of or interest on any bond issued pursuant to this ordinance; or

(f) A reduction in the principal amount of any bond or the redemption premium or the rate of interest thereon; or

(g) The creation of a lien upon or a pledge of the revenues of the waterworks ranking prior to the pledge thereof created by this ordinance; or

(h) A preference or priority of any bond or bonds issued pursuant to this ordinance over any other bond or bonds issued pursuant to the provisions of this ordinance; or

(i) A reduction in the agreegate principal amount of the bonds required for consent to such supplemental ordinance.

The owners of not less than sixty-six and two-thirds percent (66-2/3%) in aggregate principal amount of the bonds outstanding at the time of adoptions of such supplemental ordinance shall have consented to and approved the adoption thereof by written instrument to be maintained on file in the office of the Clerk-Treasurer of the Town. No owner of any bond issued pursuant to this Ordinance shall have any right to object to the adoption of such supplemental ordinance or to object to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin or restrain the Town or its officers from adopting the same, or from taking any action pursuant to the provisions thereof. Upon the adoption of any supplemental ordinance pursuant to the provisions of this Section, this Ordinance shall be, and shall be deemed, modified, and amended in accordance therewith, and the respecting rights, duties and obligations under this Ordinance of the Town and all owners of bonds issued pursuant to the provisions of this Ordinance then outstanding, shall thereafter be determined, exercised and enforced in accordance with this Ordinance, subject in all respect to such modifications and amendments. Notwithstanding anything contained ins the foregoing provisions of this Ordinance, the rights and obligations of the Town and of the owners of the bonds authorized by this Ordinance, and the terms and provisions of the bonds and this Ordinance, or any supplemental ordinance, may be modified or altered in any respect with the consent of the Town and the consent of the owners of all the bonds issued pursuant to this Ordinance then outstanding.

Section 19. Repeal of Conflicting Ordinances. All ordinances and parts of ordinances in conflict herewith are hrereby repealed.

Section 20. Rates and Charges. The estimage of the rates and charges which will be needed and charged to the general classes of users or property to be served by the waterworks in order to provide sufficient moneys to make payments of principal of and interest on the Refunding Bonds along with the other payments identified in this Ordinance, is set forth in an ordinance entitled "An Ordinance Amending Ordinance No 8-2010". Establishing New Rates and Charges for the Use and Services Rendered by the Water Works System of the Town of Lapel, Indiana," adopted on October 20, 2011.

Section 21. Compliance with Tax Sections. Notwithstanding any other provisions contained in this ordinance, the covenants and authorizations contained in this ordinance ("Tax Sections") which are designed to preserve the tax exempt status of interest on the Refunding Bonds or the exclusion of interest on the Refunding Bonds from gross income under federal law ("Tax Exemption") need not be complied with if the Town receives an opinion of nationally recognized bond counsel that any Tax Section is unnecessary to preserve the Tax Exemption.

Section 22. Qualified Tax-Exempt Obligations. The Refunding Bonds are hereby designated as "qualified tax-exempt obligations" for the purposes of Paragraph (3) of Section 265(b) of the Code, and any or all officials, officers, members, employees and agents of the Town are hereby authorized to execute on behalf of the Town any documents necessary or appropriate to evidence further such designation. The reasonably anticipated amount of "tax exempt obligations" (as such term is used in Section 265(b) of the Code) (other than obligations described in Section 265(b)(3)(C)(ii) of the Code) which will be issued by the Town or otherwise on behalf of the Town or subordinate entities during calendar year 2021 does not exceed $10,000,000. The designation set forth in this Section 22 as to the Refunding Bonds may be revoked by the Clerk-Treasurer in the Clerk-Treasurer's Certificate.

Section 23. Clerk-Treasurer's Certificate: Disclosure. The Clerk-Treasurer shall, prior to the sale of the Refunding Bonds, set forth is a certificate (the "Clerk-Treasurer's Certificate") the amortization schedule for the Refunding Bonds, the percentage of par at which the Refunding Bonds shall be sold and any other matters required by this Ordinance to be provided in the Clerk-Treasurer's Certificate.

If required by the Rule hereinafter defined, the Refunding Bonds shall be offered and sold pursuant to an Official Statement with respect to the Refunding Bonds (the "Official Statement"), to be made available and distributed in such manner, at such times, for such periods and in such number of copies as maybe required pursuant to Rule 15c2.12 promulgated by the United States Securities and Exchange Commission (the "Rule") and any and all applicable rules and regulations of the Municipal Securities Rulemaking BOard. The Town Council hereby authorized the Town Council President and Clerk-Treasurer (a) to authorized and approve a Preliminary Official Statement, as the same may be appropriately confirmed, modified and amended for distribution as the Preliminary Official Statement of the Town; (b) on behalf of the Town, to designate the Preliminary Official Statement as the final Official Statement with respect to the Refunding Bonds, subject to completion as permitted by and otherwise pursuant to the Rule; and (c) to authorize and approve the Preliminary Official Statement to be placed into final form and to enter into such agreements or arrangements as may be necessary in order to provide for the distribution of a sufficient number of copies of the Offical Statement under the Rule. The Town Council President and the Clerk-Treasurer are further authorized to execute an agreement in connection with the offering of the Refunding Bonds in accordance with the Rule by which the Town agrees to undertake such continuing disclosure obligations as may be required under the Rule.

Section 24. Further Actions. The Town Council hereby requests, authorizes and directs the Town Council President and the Clerk-Treasurer, and each of them, for and on behalf of the Town, to prepare, execute and deliver any and all other instruments, letters, certificates, and documents as are determined to be necessary or appropriate to consummate the actions contemplated by this Ordinance, and such determination shall be conclusively evidenced by delivery thereof. The instruments, letters, certificates, agreements and documents necessary to consummate the transactions contemplated by this Ordinance shall, upon execution, as set forth herein, constitute the valid and binding obligations or representations and warranties the full performance and satisfaction of which by the Town are hereby authorized and directed.

Section 25. Payments on Holidays. If the date of making any payment or the last date for the performance of any act or the exercising of any right, as provided in this Ordinance, shall be a legal holiday or a day on which banking institutions in the Town or the city or town in which the Registrar and Paying Agent is located are typically closed, such payment may be made or act performed or done on the next succeeding day not a legal holiday or a day on which such banking institutions are typically closed, with the same force and effect as if done on the nominal date of this Ordinance, and no interest shall accrue for the period after such nominal date.

Section 26. Partial Invalidity. If any section, paragraph or provisions of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordianance.

Section 27. Captions. The captions in this Ordinance are inserted only as a matter of convenience and reference, and such captions are not intended and shall not be construed to define, limit, establish, interpret or describe the scope, intent or effect of any provision of this Ordinance.

Section 28. Effectiveness. This ordinance shall be in full force and effect from and after its passage.

 

 

APPENDIX A TO THE BOND ORDINANCE

FORM OF REGISTERED BOND

 

UNITED STATES OF AMERICA

STATE OF INDIANA, COUNTY OF MADISON

TOWN OF LAPEL, INDIANA

WATERWORKS REFUNDING REVENUE BOND, SERIES 2021A

 

The Town of Lapel (the "Town"), in Madison County, State of Indiana, for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, upon surrender hereof, solely out of the special revenue fund hereinafter referred to, the Principal Amount specified above, on January 1 in the years and in the amounts as set forth on Schedule A attached hereto, unless this bond be subject to and be called for redemption prior to maturity as hereinafter provided, and to pay interest thereon until the Principal Amount is fully paid at the Interest Rate per annum specified above from the interest payment date to which interest has been paid next preceding the Authentication Date of this bond unless this bond is authenticated after the fifteenth day of the month preceding an interest payment date and on or before such interest payment date, in which case it shall bear interest from such interest payment date, and unless this bond is authenticated on or before .......... in which case it shall bear interest from the Original Date, which interest is payable ........ on January 1, 20....., and annually on each January 1 thereafter. Interest shall be calculated on the basis of a three hundred sixty-five (365) day year.

The principal of and premium, if any, on this bond are payable at the office of the Clerk-Treasurer of the Town, acting as registrar and paying agent, or of any successor registrar and paying agent appointed under the Ordinance defined and described herein (the "Registrar" and the "Paying Agent"). Interest hereon will be paid by cash or draft mailed or delivered to the Registered Owner at the address as it appears on the registration books of the Registrar as of the fifteenth day of the month immediately preceding the applicable interest payment date or at such other address as is provided to the Paying Agent in writing by such Registered Owner. All payments on this bond shall be made in any coin or currency of the United States of America which, on the dates of such payments, shall be legal tender for the payment of public and private debts.

THE TOWN IS NOT AND SHALL NOT BE OBLIGATED TO PAY THE PRINCIPAL OF OR INTEREST ON THIS BOND EXCEPT FROM THE HEREINAFTER DESCRIBED SPECIAL FUND, AND NEITHER THIS BOND NOR ANY OTHER BOND OF THIS ISSUE SHALL CONSTITUTE AN INDEBTEDNESS OF THE TOWN WITHIN THE MEANING OF THE PROVISIONS AND LIMITATIONS OF THE CONSTITUTION OF THE STATE OF INDIANA.

The Town, the Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of the principal hereof and the interest due hereon and for all other purposes, and none of the Town, the Registrar or the Paying Agent shall be affected by any notice to the contrary.

This bond shall not be valid or become obligatory for any purpose or entitled to any benefit under the Ordinance unless and until the certificate of authentication hereon shall have been executed by a duly authorized representative of the Registrar.

This bond is one of an authorized issue of bonds of the Town of Lapel, Indiana, of like date, tenor and effect, except as to number, interest rates and dates of maturity, in the total amount of .......... Dollars ($.....) numbered 21AR-1 upward, issued for the purpose of providing funds to pay the cost of refunding certain outstanding waterworks revenue bonds of the Town and paying all expenses necessarily incurred in connection with the issuance of such bonds, as authorized by an ordinance adopted by the Town Council of the Town on the ...... day of ........., 2021 entitled "AN ORDINANCE AUTHORIZING THE CURRENT REFUNDING OF THE TOWN OF LAPEL, INDIANA, WATERWORKS REVENUE BONDS, SERIES 2000, THE ISSUANCE AND SALE OF REFUNDING REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, AND THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SUCH WATERWORKS AND OTHER RELATED MATTERS" (the "Ordinance"), and in strict compliance with the provisions of the Indiana Code 8-1.5, Indiana Code 5-1-5, and the laws amendatory thereof and supplemental thereto (the "Act").

This bond is issuable only in fully registered form in the denomination of $............... or an integral multiple thereof not exceeding the aggregate principal amount of the bonds of this issue maturing in any one year.

Pursuant to the provisions of the Act and the Ordinance, the principal of and interest on this bond and all other bonds of this issue, together with any bonds thereafter issued ranking on a parity therewith, are payable, on a parity basis with the Prior Bonds (as defined in the Ordinance), solely from the "Waterworks Special Fund" created by the Ordinance (the "Special Fund") to be provided from the net revenues (herein defined as the gross revenues of waterworks of the Town remaining after payment of reasonable expenses of operation, repair and maintenance) of the waterworks of the Town.

The Town is not and shall not be obligated to pay this bond or the interest thereon except as provided and only from the sources described herein, and this bond does not and shall not constitue a corporate indebtedness of the Town within the meaning of the provisions and limitations of the constitution of the State of Indiana.

The Town convenants that it shall, to the fullest extent permitted by law, establish, fix, maintain and collect reasonable and just rates and charges for the use of and the services rendered by the waterworks so that such rates and charges will provide revenues at least sufficient in eacy year to pay all the legal and other necessary expenses incident to the operation of the waterworks, including maintenance costs, operating charges, upkeep, repairs, and interest charges on bonds or other obligations, including leases; (b) provide a sinking fund for the liquidation of bonds or other obligations, including leases; (c) provide a debt service reserve on bonds or other obligations, including leases, as required by the terms of such obligations; (d) provide adequate money for working capital; (e) provide adequate money for making extensions aid replacements; and provide money for the payment of any taxes that may be assessed against the waterworks; and that it will in all other respects, faithfully comply with all provisions of the Act pursuant to which this bond is issued. In the event the Town shall make any default in the payment of the principal of or the interest on this bond, the Registered Owner of this bond may, by action or other proceeding, compel performance of all duties required by the Act of the Town or any officer of the Town including the collecting of reasonable and sufficient rates lawfully established for services rendered by the waterworks, the segregation of the income and revenues of the waterworks, and the segregation of the revenues and the respective funds anal accounts as specified in the Ordinance.

The bonds of this issue are subject to redemption prior to maturity, at the option of the Town, in whole or in part, on any date on or after ............., in order of maturity selected by the Town and by lot within any such maturity or maturities by the Registrar at a redemption price equal to are hundred percent (100%) of the principal amount of each bond to be redeemed, plus accrued interest to the date of redemption.

Notice of any such redemption shall be sent by registered or certified mail to the Registered Owner of this bond not less than thirty (30) days prior to the date fixed for redemption, unless notice is waived by the Registered Owner; provided, however, that failure to give such notice, or any defect therein, with respect to any such bond will not affect the validity of notice of redemption of any other such bonds. The notice shall specify the redemption date and place of redemption and the registration numbers (and in case of partial redemption the respective principal amounts) of the bonds called for redemption. Interest on bonds so called for redemption shall cease to accrue on the redemption date fixed in such notice, so long as sufficient funds are available at the place of redemption to pay the redemption price on the redemption date or when presented for payment.

Prior to the date fixed for redemption, funds shall be deposited with the Paying Agent to pay, and the Paying Agent is hereby authorized and directed to apply such funds to the payment of the bonds or portions thereof called, together with accrued interest thereon to the redemption date and any required premium. No payment shall be made by the Paying Agent upon any bond or any portion thereof called for redemption until such bond shall have been delivered for payment or cancellation or the Registrar shall have received the items required by the Ordinance with respect to any mutilated, lost, stolen or destroyed bond.

If this bond shall have become due and payable in accordance with its terms or this bond or a portion hereof shall have beta duly called for redemption or irrevocable instructions to call this bond or a portion hereof for redemption shall be given and the whole amount of the principal of and premium, if any, and interest, so due and payable upon this bond or such portion hereof shall be paid, or (i) sufficient moneys, or (ii) direct obligations of or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, the principal of and interest on which when due will provide sufficient moneys for such purpose, or (iii) time certificates of deposit of a bank or banks, fully secured as to both principal and interest by obligations of the kind described in (ii) above, the principal of and interest on which when due will provide sufficient moneys for such purpose, shall be held in trust for such purpose, and provision shall be made for paying all fees and expenses for the redemption, then and in that case this bond or such portion hereof shall no longer be deemed outstanding, entitled to the pledge of the net revenues of the waterworks or an obligation of the Town.

If this bond shall not be presented for payment or redemption on the date fixed therefor, the Town may deposit in trust with the Paying Agent an amount sufficient to pay such bond or the redemption price, as appropriate, and thereafter the Registered Owner shall look only to the funds deposited in trust with the Paying Agent for payment, and the Town shall have no further obligation or liability with respect thereto.

All bonds which have been redeemed shall be cancelled and cremated or otherwise destroyed and shall not be reissued and a counterpart of the certificate of cremation or other destruction evidencing such cremation or other destruction shall be furnished by the Registrar to the Town; provided, however, that one or more new registered bonds shall be issued for the unredeemed portion of any bond without charge to the holder thereof.

Subject to the provisions of the Ordinance regarding the registration of such bonds, this bond and all other bonds of the issue of which this bond is a part are fully negotiable instruments under laws of the State of Indiana. This bond is transferable or exchangeable only on the books of the Town maintained for such purpose at the principal corporate trust office of the Registrar, bu the Registered Owner hereof in person, or by his attorney duly authorized in writing, upon surrender of this bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the Registered Owner or his attorney duly authorized in writing, and thereupon a new fully registered bond or bonds in the same aggregate principal amount and of the same maturity shall be executed and delivered in the name of the transferee or transferees or the Registered Owner, as the case may be, in exchange therefor. This bond may be transferred or exchanged without cost the Registered Owner hereof or his attorney duly authorized in writing, except for any tax or other governmental charge which may be required to be paid with respect to such transfer or exchange. The Registrar shall not be obligated to make any exchange or transfer of this bond (i) during the fifteen (15) days immediately preceding an interest payment date on this bond, or (ii) after the delivery of any notice calling this bond for redemption. The Town, the Register and the Paying Agent for this bond may treat and consider the person in whose name this bond is registered as the absolute owner hereof for all purposes including for the purpose of receiving payment of, or on account of, the principal hereof and the redemption premium, if any, and interest due hereon.

In the event this bond is mutilated, lost, stolen or destroyed, the Town may cause to executed and the Registrar may authenticate a new bond of like date, maturity and denomination as this bond, which new bond shall be marked in a manner to distinguish it from this bond; provided, however, that the case of this bond being mutilated, this bond shall first be surrendered to the Registrar, and in the event of this bond being lost, stolen or destroyed, there shall first be furnished to the Registrar evidence of such loss, theft or destruction satisfactory to the Town and to the Registrar, together with the indemnity satisfactory to them. In the event that this bond, being mutilated, lost, stolen or destroyed, shall have matured or been called for redemption, instead ofcausing to be issued a duplicate bond, the Registrar and Paying Agent may pay this bond upon surrender of this mutilated bond or upon satisfactory indemnity and proof of loss, theft or destruction in the event this bond is lost, stolen or destroyed. In such event, the Town and the Registrar may charge the owner of this bond with their reasonable fees and expenses in connection with the above. Every substitute bond issued by reason of this bond being lost, stolen, or destroyed shall, with respect to this bond, constitute a substitute conctractual obligation of the Town, whether at not this bond, being lost, stolen or destroyed shall be found any time, and shall be entitled to all the benefits of the Ordinance, equally and ratably with any and all other bonds duly issued thereunder.

The Town has designated the bonds of this issue as qualified tax-exempt obligations to qualify the bonds for the $10,000,000 exception from the provisions of Section 265(b) of the Internet Revenue Code of 1986 relating to the disallowance of 100% of the deduction for interest expense allocable to tax-exemp obligations.

In the manner provided in the Ordinance, the Ordinance and the rights and obligations of the Town and the owners of the bonds of the issue authorized thereunder, including this bond, may, subject to certain exceptions as stated in the Ordinance, be modified or amended with the consent of at least sixty-six and two-thirds percent (66-2/3%) in aggregate principal amount of the bonds exclusive of any such bonds which may be owned by the Town.

The bonds authorized and issued pursuant to the Ordinance, including this bond, are subject to defeasance prior to redemption or payment as provided in the Ordinance, and the owner of this bond, by the acceptance hereof, hereby agrees to all the terms and provisions contained in the Ordinance

The Town hereby certifies, recites and declares that all acts, conditions and things required to be done precedent to and in the preparation, execution, issuance and delivery of this bond have been done and performed in regular and due form as required by law.

IN WITNESS WHEREOF, the Town of Lapel, in Madison County, State of Indiana, has caused this bond to be executed in its corporate name by the manual or facsimile signature of the President of its Town Council, and its corporate seal be hereunto affixed and attested by the signature or facsimile signature of its Clerk-Treasurer.

Further Information

15-2021
Date Passed: 10/21/2021

(SRF BONDS)

AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AUTHORIZING THE ACQUISITION, CONSTRUCTION OF CERTAIN ADDITIONS AND IMPROVEMENTS TO THE WATERWORKS OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA; AUTHORIZING THE ISSUANCE OF REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF; ADDRESSING OTHER MATTERS CONNECTED THEREWITH, INCLUDING THE ISSUANCE OF NOTES IN ANTICIPATION OF BONDS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND ALL MATTERS RELATED HERETO

WHEREAS, the Town has heretofore established, acquired, constructed and finances its municipal waterworks utility system (the "Waterworks" or the "System") for the purpose of furnishing the public water supply to the Town and its inhabitants, and now owns and operates the Waterworks pursuant to provisions of I.C. 8-1.5, as in effect on the issue date of the Bond Anticipation Notes or the Bonds, as applicable, which are authorized herein (the "Act"); and

WHEREAS, the Town Council of the Town of Lapel, Madison County, Indiana, a Municipal Corporation (hereinafter, the "Town Council"), as its duly elected legislative body, finds that certain additions, improvements and extensions to the System are necessary; and that Commonwealth Engineers, Inc., of Indianapolis, Indiana, the consulting engineers employed by the Town (the "Consulting Engineers"), have prepared and filed plans, specifications, and detailed descriptions and estimates of the costs of the necessary improvements and extensions to the Waterworks, which plans, specifications, descriptions and estimates, to the extent required by applicable law, have been duly submitted to and approved by or will be approved by all governmental authorities having jurisdiction thereover (the improvements and extensions to the Waterworks as described in such engineers' plans and specifications and below as set forth on Exhibit A (and as more fully set forth in the Financial Assistance Agreement (as hereinafter defined), and any amendment thereto, attached hereto and made a part hereof) are referred to herein as the "Project"); and

WHEREAS, the Town Council now further finds that the estimates prepared and delivered by the Consulting Engineers with respect to the costs of acquisition and construction of such improvements and extensions to the Waterworks, and including all authorized expenses relating thereto, including the costs of issuance of bonds on account of the financing of all or a portion thereof, will be in the aggregate amount not to exceed Seven Million Five Hundred Thousand Dollars ($7,500,000); and

WHEREAS, the Town has advertised or will advertise for and receive bids or proposals for the construction of the Project, which bids or proposals will be subject to the Town obtaining funds to pay for the Project; that on the basis of said aforementioned engineering estimates, the maximum estimated cost of the Project, including incidental expenses, in in the amount of Seven Million Find Hundred Thousand Dollars ($7,500,000); and

WHEREAS, the Town Council has determined that to provide funds necessary to pay for the costs of the Project for which other funding is not available, it will be necessary for the Town to issue waterworks revenue bonds, in one (1) or more series, in an amount not to exceed Seven Million Five Hundred Thousand Dollars ($7,500,000), and, if necessary, bond anticipation notes ("BANs") in an aggregate amount not to exceed Seven Million Five Hundred Thousand Dollars ($7,500,000); and

WHEREAS, the Town Council, after being duly advised, now seeks to authorize the issuance of the Bonds hereunder payable from the Net Revenues (as hereinafter defined) of the Waterworks and the BANs hereunder, if necessary, payable solely from the proceeds of the Waterworks Revenue Bonds issued hereunder; and

WHEREAS, the Town expects to refund its outstanding (a) Waterworks Revenue Bonds, Series 2000 and (b) Waterworks Revenue Bonds, Series 2011 prior to the issuance of the Bonds, by issuing its Waterworks Revenue Refunding Bonds, Series 2021A (hereinafter, the "2021A Bonds" ), in the aggregate principal amount of not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000), and maturing annually on January 1st of each year over a period ending not later than January 1st, 2042, and which 2021A Bonds shall constitute a charge on the Net Revenues (as hereinafter defined) of the System; and

WHEREAS, the Town Council has been informed and advised that the Ordinance authorizing the 2021A Bonds (the "2021A Ordinance") allows for the issuance of additional bonds payable from revenues of the System, and ranking on parity with the 2021A Bonds; and

WHEREAS, the Town Council now finds, after being duly informed and advised, that all conditions precedent to the issuance of the Bonds on a parity with the 2021A Bonds have been or will be met; and

WHEREAS, the Town Council now, based on the foregoing, consequently seeks to authorize the issuance of the Bonds and the BANs to finance the costs of the acquisition and construction of the Project pursuant to the Act and the sale of such revenue bonds at public or private sale, all pursuant ot the provisions of IC 5-1-11, or to the Authority, as set forth below, pursuant to the provisions of the Act, subject to and dependent upon the terms and conditions hereinafter set forth; and

WHEREAS, this Town Council now finds, after being duly informed and advised, that all conditions precedent to the adoption of an Ordinance authorizing the issuance of bond anticipation notes and revenue bonds to provide the necessary funds to be applied to pay all or a portion of the cost of the Project have been compiled with in accordance with the applicable provisions of the Act; and

WHEREAS, it is anticipated that the Town may advance all or a portion of the costs of the Project prior to the issuance of the BANs or the Bonds, with such advance to be repaid from proceeds of the BANs or the Bonds upon the issuance thereof; and

WHEREAS, the Town Council has been further informed and advised that Section 1.150-2 of the Treasury Regulations on Income Tax (the "Reimbursement Regulations") specifies conditions under which a reimbursement allocation may be treated as an expenditure of bond proceeds, and the Town intends by this Ordinance to qualify amounts advanced by the Town to the Project for reimbursement from proceeds of the BANs or the Bonds in accordance with the applicable requirements of the Reimbursement Regulations; and

WHEREAS, the Town may enter into a Financial Assistance Agreement, Funding Agreement and/or Financial Aid Agreement (substantially in the form of Exhibit B attached hereto and made a part hereof)  ("Financial Assistance Agreement") with the Indiana Finance Authority (the "Authority") as part of its drinking water loan program, supplemental drinking water and wastewater assistance program, water infrastructure assistance program and/or water infrastructure grant program, established and existing pursuant to IC 5-1.2-1 through IC 5-1.2-4, IC 5-1.2-10, IC 5-1.2-11, IC 5-2.2-14 and/or IC 5-1.2-14.5 (collectively, the "IFA Program"), pertaining to the Project and financing of the Project if any Bonds or BANs are sold to the Authority as part of its IFA Program; and

WHEREAS, the Town Council understands that for the Project to be permitted to be financed under the IFA Program, the Town must (a) agree to own, operate and maintain the waterworks and the Project fir its useful life and (b) represent and warrant to the AUthority that the Town has not intent to sell, transfer or lease the waterworks or the Project for its useful life; and

WHEREAS, the Town may accept other forms of financial assistance, as and if available from the IFA Program; and

WHEREAS, the Town has removed its waterworks from the jursidiction of the Indiana Utility Regulatory Commission (the "IURC") with repsect to the approval of rates and charges and financings of the waterworks and, accordingly, the Town will not need approval of the IURC prior to the issuance of the Bonds and BANs herein authorized;

NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AS FOLLOWS:

SECTION 1. Authorization of Project. The Town may proceed with the construction of the Project in accorance with the plans and specifications heretofore prepared and filed by the consulting engineers employed by the Town, which plans and specifications are by reference made a part of this Ordinance as fully as if the same were attached hereto and incorporated herein. Two (2) copies of the plans and specifications are now on file or will be subsequently placed on file in the Office of the Clerk-Treasurer and/or Administrative Offices of the Town and open for public inspection pursuant to the provisions of IC 36-1-5-4. The cost of construction of the Project to be financed shall not exceed the sum of Seven Million Five Hundred Thousand Dollars ($7,500,000), plus investment earnings on the Bond and BAN proceeds, without further authorization from this Town Council. Where used in this Ordinance, the term "Town" shall be construed also to include any Department, Board, Commission or Officer or Officers of the Town. The terms "Waterworks", "waterworks", "works", "system", and similar terms used in this Ordinance, shall be construed to mean the Town's existing waterworks system together with all the real estate, equipment and appurtenances thereto used in connection therewith, and all improvements, extensions and additions thereto, and replacements thereof, now or subsequently constructed or acquired. If the bonds herein authorized will be sold to the IFA Program, such terms shall also be construed to mean the Drinking Water System, as defined in the Financial Assistance Agreement to be entered into, in such case, between the Town and the Authority through the IFA Program. The Project shall be constructed in accordance with the plans and specifications heretofore mentioned, which plans and specifications are hereby approved. The Project shall be constructed and the Bonds herein authorized shall be issued pursuant to and in accordance with provisions of the Act. The Town reasonably expects to reimburse expenditures incurred by the Town for the Project with proceeds of the Bods and this constitutes a declaration of Official Intent pursuant to Treasury Regulation 1.150-2(e) and the provisions of IC 5-1-14-6(c).

In the event the bonds herein authorized or the BANs are purchased by the Authority as part of the IFA Program, on behalf of the Town, the Town Council hereby (i) agrees to own, operate and maintain the waterworks and the Project for its useful life and (ii) represents and warrants to the Authority that the Town has no intent to sell, transfer or lease the waterworks or the Project for its useful life.

SECTION TWO: Description of the Project. The Project is more particularly described in Exhibit A attached hereto and made a part hereof. The Town shall proceed with the acquisition, construction and installation of the Project and shall enter into all contracts necessary or appropriate for such purpose, in conformity with and subject to the requirements and conditions set forth in this Ordinance and in the Act.

SECTION THREE: Issuance of BANS and Bonds. 

(a) The Town shall issue, if necessary, Bond Anticipation Notes (the "BANs") for the purpose of procuring interim financing to pay a portion of the cost of the Project and, if deemed appropriate, the costs of issuance of the BANs. The Town may issue the BANs in one (1) or more series, in an aggregate amount outstanding at any one (1) time not to exceed $7,500,000 to be designated "Waterworks Bond Anticipation Notes, Series 2021," to be completed with the appropriate year of issuance and an alphabetical designation, if necessary. The BANs shall be lettered and numbers consecutively from R-1 and upward, and shall be in authorized denominations of $1,000 or more. The BANs shall be dated as of the date of delivery thereof and shall bear interest at a rate not to exceed Three and a Half percent (3.50%) per annum (the exact rate or rates to be determined through negotiations with the purchasers of the BANs) payable either upon maturity or semiannually on January 1st and July 1st, as designated by the Clerk-Treasurer of the Town (the "Clerk-Treasurer"), with the advice of Reedy Financial Group P.C., the Municpal Advisor to the Town (the "Municipal Advisor"). Each series of BANs will mature no later than five (5) years after their date of delivery, the exact maturity determined by the Clerk-Treasurer, with the advice of the Municipal Advisor and Barnes & Thornburg LLP, Bond Counsel to the Town ("Bond Counsel"). The President of the Town Council (the "President") and the Clerk-Treasurer are hereby authorized and directed to execute a BAN Purchase Agreement in such form or substance as they shall approve acting upon the advice of counsel. The BANs are subject to renewal or extension at an interest rate or rates not to exceed Three and a Half percent (3.50%) per annum (the exact rate or rates to be negotiated with the purchaser of the BANs). The term of any renewal BANs may not exceed five (5) years from the date of delivery of the BANs. The BANs shall be registered in the name of the purchasers thereof. Notwithstanding anything in this Ordinance to the contrary, any series of BANs issued hereunder may bear interest that is taxable and included in the gross income of the owners thereof. If the BANs are issued on a taxable basis, the designated name shall include the term "Taxable" as the first word in the designated name.

(b) The BANs shall be issued pursuant to IC 5-1.2-1 through IC 5-1.2-4, IC 5-1.2-10, IC 5-1.2-14 and/or IC 5-1.2-14.5 if sold to the Authority or pursuant to the provisions of IC 5-1-14-5, as amended, and the Act, if sold to a financial institution or any other purchaser. The BANs shall be sold at a price not less than One Hundred percent (100.00%) of the principal amount thereof. The Town shall pledge to the payment of the principal of and interest on the BANs the proceeds from the issuance of the Bonds pursuant to and in the manner prescribed by the Act. The Town may also use other revenues or funds of the Town legally available therefor, if any, including amounts available to the Town out of federal or state funds available for application to the Project, for payment of the principal of the BANs; provided, however that no funds other than proceeds from the issuance and sale of the Bonds, if and when issued, are pledged to the payment of principal of the BANs. Notwithstanding any other provision of this Ordinance, if the BANs are sold to a purchaser that so agrees, the Town may receive payment for the BANs in installments, and principal shall not be payable and interest shall not accrue on the BANs until such principal amount has been advanced pursuant to requests made by the Town to such purchaser. In the event that the total principal amount of the BANS sold to such purchaser is not advanced to the Town, the principal amount of the BANs shall be reduced accordingly.

(c) The Town shall issue its Waterworks Revenue Bonds (the "Bonds"), in one (1) or more series, in an aggregate principal amount not to exceed $7,500,000 to be designated "Waterworks Revenue Bonds, Series 202...," to be completed with the year in which the Bonds are issued and separate series designations as appropriate, for the purpose of procuring funds to pay a portion of the cost of the Project, the refunding of the BANs, if issued, and the issuance costs of the Bonds or the BANs, if issued, as deterimed by the Town, with the advice of the Municipal Advisor. The Bonds shall be issued and sold at a price not less than One Hundred percent (100%) of the principal amount thereof. The Bonds shall be issued in fully registered form in authorized denominations of One Dollar ($1) each if sold to the Authority as part of the IFA Program and in the denomination of Five Thousand Dollars ($5,000) each (or such higher minimum denominations as the Clerk_Treasurer shall determine prior to the sale of the Bonds) if sold to another purchaser, and any integral multiple thereof not exceeding the aggregate principal amount of the Bonds maturing in any one (1) year. The Bonds shall be lettered and numbered consecuitvely from ....R-1 and upward (with such blank to be filled in based on the year of issuance of the Bonds), originally dated as of the date of delivery, and shall bear interest at a rate not to exceed Three and a Half percent (3.50%) per annum if sold to the Authority as a part of the IFA Program, or shall bear interest at a rate or rates not exceeding Three and a Half percent (3.50%) per annum if sold to any other purchaser (the exact rate or rates to be determined by negotiation with the IFA Program or another purchaser, or by bidding, as the case may be). Interest on the Bonds shall be calculated on the basis of twelve (12) thirty (30)-day months for a three hundred sixty (360) day year (or on the basis of a three hundred sixty-five (365) day year, if required by the purchaser of the Bonds) and payable semiannually on a January 1st and July 1st in each year (each an "Interest Payment Date"), commencing on the first January 1st or July 1st following the date of delivery of the Bonds, all as determined by the Clerk-Treasurer, with the advice of the Municipal Advisor. The Bonds shall be payable in lawful money of the United States of America, at the principal office of the Paying Agent (as hereinafter defined). The Bonds shall mature annually on January 1st of each year, or shall be subject to mandatory sinking fund redemption if term bonds are issued, over a period ending no later than thirty (30) years after the date of issuance of the Bonds in such amounts as is deemed appropriate by the Clerk-Treasurer, with the advice of the Municpal Advisor; provided, however, that any Bonds sold to the Authority as part of its IFA Program shall mature annually on January 1st, or be subject to mandatory sinking fund redemption on January 1st, over a period ending no later than thirty-five (35) years after the date of issuance of the Bonds, and in such amounts as will allow the Town to meet the coverage and/or amortization requirements of the IFA Program, with such debt service schedules to be finalized and set forth in the Financial Assistance Agreement. If the Bonds are sold to a purchaser other than to the Authortiy as part of its SRF Program, The Town may, upon the advice of the Municipal Advisor, obtain bond insurance for the Bonds.

(d) All or a portion of the Bonds may be issued as one (1) or more term bonds, upon election of the purchaser thereof. Such term bonds shall have a stated maturity or maturities consistent with the maturity schedule determined in accorance with the preceding paragraph, in the years as determined by the purchaser thereof, but in no event later than the last serial maturity date of the Bonds as determined in the preceding paragraph. The term bonds shall be subject to mandatory sinking fund redemption and final payment(s) at maturity at one hundred percent (100%) of the princpial amount thereof, plus accrued interest to the redemption date, on principal payment dates which are hereafter determined in accordance with the preceding paragraph.

(e) If the Bonds authorized hereunder are issed in multiple series, each series of the Bonds shall rank on a parity basis with any other series issued hereunder for all purspoes, including the pledge of Net Revenues under this Ordinance.

(f) The Clerk-Treasurer is authorized to serve or select and appoint a qualified financial institution to serve as the Registrar and the Paying Agent for the BANs and the Bonds, which Registrar is hereby charged with the responsibility of authenticating the BANs and the Bonds (the "Registrar" or the "Paying Agent"). The Clerk-Treasurer is hereby authorized to enter into such agreements or understandings with such institution as will enable the institution to perform the services required of the Registrar and the Paying Agent. The Clerk-Treasurer is further authortized to pay such fees as the institution may charge for the services it provides as the Registrar and the Paying Agent, and such fees may be paid from the Sinking Fund. As to the BANs and as to the Bonds, if the purchaser thereof does not object to such designation, the Clerk-Treasurer may serve as Registrar and Paying Agent, and in that case, is hereby charged with the perofrmance of all duties and responsibilites of Registrar and Paying Agent.

(g) If the BANS or Bonds are sold to the Authority as part of its IFA Program, the principal of and interest thereon shall be paid by wire transfer to such financial institution if and as directed by the Authortiy on the due date of such payment or, if such due date is a day when financial instutions are not open for business, on the business day immediately after such due date. So long as the Authority as part of its IFA Program is the owner of the BANs or the Bonds, such BANs or Bonds shall be presented for payment as directed by the Authority.

(h) If the BANS or Bonds are not sold to the Authortiy as part of its IFA Program or if the wire transfer payment is not required, the principal of the Bonds and the principal and interest on the BANs shall be payable at the principal (or designated) corporate trust office of the Paying Agent. All payments of interest on the Bonds shall be paid by check mailed to the registered owners thereof, as of the fifteenth (15th) day of the month preceding each Interest Payment Date ("Record Date"), at the addresses as they appear on the registration books kept by the Registrar or at such other address as is provided to the Paying Agent in writing by such registered owner on or before such Record Date. If payment of principal or interest is made to a depository, payment shall be made by wire transfer on the payment date in same-day funds. If the payment date occurs on a date when financial institutions are not open for business, the wire transfer shall be made on the next succeeding business day. The Paying Agent shall be instructed to wire transfer payments by 1:00pm (New York City time) so such payments are received at the depository by 2:30pm (New York City time). All payments on the BANs and the Bonds shall be made in any coin or currency of the United States of America, which on the date of such payment, shall be legal tender for the payment of public and private debts.

(i) Each BAN or Bond shall be transferable or exchangeable only upon the books of the Town kept for that purpose at the principal office of the Registrar, by the registered owner thereof in person, or by its attorney duly authortized in writing, upon surrender of such BAN or Bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the registered owner or its attorney duly authorized in writing, and thereupon a new fully registered BAN or BANs or Bond or Bonds in the same aggregate principal amount and of the same maturity shall be executed and delivered in the name of the transferee or transferees or the registered owner, as the case may be, in exchange thereof. The costs of such transfer or exchange shall be borne by the Town; provided, however that the Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. The Town, the Registrar and Paying Agent for the Bonds may treat and consider the person in whose name the BANs or the Bonds are registered as the absolute owner thereof for all purposes, including for the purpose of receiving payment of, or on account of, the principal thereof, the premium, if any, and interest due thereon.

(j) The Registrar and Paying Agent may at any time resign as Registrar and Paying Agent upon giving thirty (30) days' notice in writing to the Town and by first class mail to each registered owner of the Bonds then outstanding, and such resignation will take effect at the end of such thirty (30) day period or upon the earlier appointment of a successor registrar and paying agent by the Town. Any such notice to the Town may be served personally or sent by registered mail. The Registrar and Paying Agent may be removed at any time as Registrar and Paying Agent by the Town, in which event the Town may appoint a successor Registrar and Paying Agent. The Town shall notify each registered owner of the Bonds then outstanding by first class mail of the removal of the Registrar and Paying Agent. Notices to the registered owners of the Bonds shall be deemed to be given when mailed by first class mail to the addresses of such registered owners as they appear on the registration books kept by the Registrar. Upon the appointment of any Successor Registrar and Paying Agent by the Town, the Clerk-Treasurer is authorized and directed to enter into such agreements and understandings with such Successor Registrar and Paying Agent as will enable the institution to perform the services required of a registrar and paying agent for the Bonds. The Clerk-Treasurer is further authorized to pay such fees as the successor Registrar and Paying Agent may charge for the services it provides as registrar and paying agent, and such fees may be paid from the Waterworks Sinking Fund continued in SECTION THIRTEEN hereof. Any predecessor registrar and paying agent shall deliver all of the Bonds and any cash or investments in its possession with respect thereto, together with the registration books, to the successor Registrar and Paying Agent.

(k) The BANs and the Bonds shall bear an original issue date which shall be the date of issuance of the BANs and the Bonds, and each BAN and Bond shall also bear the date of its authentication. Any BAN or Bond authenticated on or before the fifteenth day of the calendar month immediately preceding the first Interest Payment Date shall pay interest from its original issue date; provided,however, that interest on any BANs or Bonds sold to the Authority as part of its IFA Program shall be payable from the date or dates of payment made by the Authority as part of its purchase of the BANs or Bonds pursuant to the Financial Assistance Agreement. Any BAN or Bond authenticated thereafter shall pay interest from the Interest Payment Date next preceding the date of authentication of such BAN or BOnd to which interest thereon has been paid or duly provided for, unless such BAN or Bond is authenticated after the day which is the fifteenth day of the calendar month immediately preceding an Interest Payment Date and on or before such Interest Payment Date, in which case interest thereon shall be paid from such Interest Payment Date.

(l) The BANs or the Bonds may be issued in book-entry-only form as one (1) fully registered BAN or Bond per maturity registered in the name of Cede & Co., as nominee for The Depository Trust Company ("DTC"), New York, New York, and DTC may act as securities depository for the BANs or the Bonds and have transfers of the Bonds effected by book-entry on the books of DTC (the "Book Entry System"). The Bonds may be initially issued in the form of a separate single authenticated fully registered Bond for the aggregate principal amount of each separate maturity of the Bonds. Purchasers of beneficial interests will not receive certificates representing their interests in the BANs or the Bonds purchased.

(m) With respect to the Bonds registered in the register kept by the Registrar in the name of CEDE & CO., as nominee of the Depository Trust Company, the Town and the Paying Agent shall have no responsibility or obligation to any other holders or owners (including any beneficial owner ("Beneficial Owner")) of the Bonds with respect to (i) the accuracy of the records of the Depository Trust Company, CEDE & CO., or any Beneficial Owner with respect to ownership questions; (ii) the delivery to any bondholder (including any Beneficial Owner) or any other person, other than the Depository Trust Company, of any notice with respect to the Bonds including any notice of redemption; or (iii) the payment to any bondholder (including any Beneficial Owner) or any other person, other than the Depository Trust Company, of any amount with respect to the principal of, or premium, if any, or interest on the Bonds, except as otherwise provided herein.

(n) With respect to Bonds registered in the name of CEDE & CO., the following provisions shall also apply. No person other than the Depository Trust Company shall receive an authenticated Bond evidencing an obligation of the Town to make payments of the principal of and premium, if any, and interest on the Bonds pursuant to this Ordinance. The Town and the Registrar and Paying Agent may treat as and deem the Depository Trust Company or CEDE & CO. to be the absolute bondholder of each of the Bonds for the purpose of (i) payment of the principal of and premium, if any, and interest on such Bonds; (ii) giving notices of redemption and other notices permitted to be given to bondholders with respect to such Bonds; (iii) registering transfers with respect to such Bonds; (iv) obtaining any consent or other action required or permitted to be taken by or with respect to bondholders; (v) voting; and (vi) for all other purposes whatsoever. The Paying Agent shall pay all principal of and premium, if any, and interest on the Bonds oly to or upon the order of the Depository Trust Company, and all such payments shall be valid and effective fully to satisfy and discharge the Town's and the Paying Agent's obligations with respect to principal of and premiium, if any, and interest on the Bonds to the extent of the sum or sums so paid. Upon delivery by the Depository Trust Company to the Town of written notice to the effect that the Depository Trust Company has determined to substitute a new nominee in place of CEDE & CO., and subject to the provisions herein with respect to consents, the words "CEDE & CO." in this Ordinance shall refer to such new nominee of the Depository Trust Company. Notwithstanding any other provision hereof to the contrary, so long as any Bond is registered in the name of CEDE & CO., as nominee of the Depository Trust Company, all payments with respect to such Bonds shall be made and gioven to the Depository Trust Company as provided in a Representation Letter from the Town to the Depository Trust Company.

(o) Upon receipt by the Town of written notice from the Depository Trust company to the effect that the Depository Trust Company is unable or unwilling to discharge its responsibilities and if no substitute depository willing to undertake the functions of the Depository Trust Company hereunder can be found which is willing and able to undertake such functions upon reasonable and customary terms, then the Bonds shall no longer be restricted to being registered in the register of the Town kept by the Registrar in the name of CEDE & CO., as nominee of the Depository Trust Company, but may be registered in whatever name or names the bondholders transferring or exchanging the bonds shall designate, in accordance with the provisions of this Ordinance.

(p) If the Town determines that it is in the best interests of the bondholders that they be able to obtain certificates for the fully registered Bonds, the Town may notify the Depository Trust Company and the Registrar, whereupon the Depository Trust Company will notify the Beneficial Onwers of the availability through the Depository Trust Company of certificates for the Bonds. In such event, the Registrar shall prepare, authenticate, transfer and exchange Certificates for the Bonds as requested by the Depository Trust Company and any Beneficial Owners in appropriate amounts, and whenever the Depository Trust Company requests the Town and the Registrar o do so, the Registrar and the Townl will cooperate with the Depository Trust Compinay by taking appropriate actions after reasonable notice (i) to make available one (1) or more separate Certificates evidencing the fully registered Bonds of any Beneficial Owner's Depository Trust Company account or (ii) to arrange for another securities depository to maintain custody of Certificates and evidencing the Bonds.

(q) In connection with any notice or other communication to be provided to bondholders by the Town or the Registrar with respect to any consent or other action to be taken by bondholders, the Town or the Registrar, as the case may be, shall establish a record date for such consent or other action and give the Depository Trust Company notice of such record date not less than fifteen (15) calendar days in advance of such record date to the extent possible.

(r) So long as the Bonds are registered in the name of the Depository Trust Company or CEDE & CO. or any substitute nominee, the Town and the Registrar and Paying Agent shall be entitled to request and to rely upon a Certificate or other written representation from the Beneficial Owners of the Bonds or from the Depository Trust Company on behalf of such Beneficial Owners stating the amount of their respective beneficial ownership interests in the Bonds and setting forth the consent, advice, direction, demand or vote of the Beneficial Owners of a record date selected by the Registrar, to the same extent as if such consent, advice, direction, demand or vote were made by the bondholders for purposes of this Ordinance, and the Town and the Registrar and Paying Agent shall for such purposes treat the Beneficial Owners as the bondholders. Along with any such Certificate or representation, the Registrar may request the Depository Trust Company to deliver, or cause to be delivered, to the Registrar a list of all Beneficial Owners of the Bonds, together with the dollar amount of each Beneficial Owner's interest in the Bonds and the current addresses of such Beneficial Owners.

(s) Notwithstanding anything contained herein, the Town may accept any other forms of financial assistance, as and if available, from the IFA Program (including without limitation any forgivable loans, grants or other assistance whether available as an alternative to any BAN or Bond related provision otherwise provided for herein or as a supplement or addition thereto). If required by the IFA Program to be eligible for such financial assistance, one or more of the series of the BANs or Bonds issued hereunder may be issued on a basis such that the payment of the principal of or interest on (or both) such series of BANs or Bonds is junior and subordinate to the payment of the principal of and interest on other series of BANs or Bonds issued hereunder (and/or any other revenue bonds secured by a pledge of Net Revenues, whether now outstanding or hereafter issued), all as provided by the terms of such series of BANs or Bonds as modified pursuant to this authorization. Such financial assistance, if any, shall be as provided in the Financial Assistance Agreement and the BANs or Bonds of each series of BANs or Bonds issued hereunder (including any modification made pursuant to the authorization in this paragraph to the form of Bond otherwise contained herein).

SECTION 4: Redemption of BANS and Bonds.

(a) If deemed appropriate by the Clerk-Treasurer, with the advice of the Municpal Advisor, the BANs shall be prepayable by the Town, in whole or in part, on or after the date determined to be most appropriate by the Clerk-Treasurer, with the advice of the Municpal Advisor, upon seven (7) days' notice to the owner of the BANs as of the date which is one hundred eighty (180) days prior to such prepayment, without any premium, but with accrued interest to the date of prepayment.

(b) The Bonds may be made redeemable at the option of the Town, in whole or in part, in the order of maturity as determined by the Town, and by lot within a maturity, on thirty (30) days' notice (or sixty (60) days' notice for Bonds sold to the Authortiy as part of its SRF Program), at face value, with a premoim no greater than two-percent (2%), plus accrued interest to the date fixed for redemption. The exact redemption dates and premium, if any, shall be established by the Clerk-Treasurer, with the advice of the Town's municpal advisor, prior to the sale of the Bonds; provided, that Bonds sold to the Authority as part of its IFA Program shall be redeemable not sooner than ten (10) years after their date of delivery and in inverse order of maturity; provided, further, that if the Bonds are sold to the IFA Program and registered in the name of the Authority, the Bonds shall not be redeemable at the option of the Town unless and until consented to by the Authority.

(c) All or a portion of the Bonds may be aggregated into one (1) or more term bonds payable from mandatory sinking fund redemption payments. If any BOnd issued as a term bond, the Paying Agent shall credit against the mandatory sinking fund requirement for the Bonds maturing as term bonds, and corresponding mandatory redemption obligation, in the order determined by the Town, any Bonds maturing as term bonds maturing on the same date which have previously been redeemed (otherwise than as a result of a previous mandatory redemption requirement) or delivered to the Registrar for cancellation or purchased for cancellation by the Paying Agent and not theretofore applied as a credit against any redemption obligation. Each Bond maturing as a term bond so delivered or canceled shall be credited by the Paying Agent at one hundred percent (100%) of the principal amount thereof against the mandatory sinking fund obligation on such mandatory sinking fund date, and any excees of such amount shall be credited on future redemption obligations, and the principal amount of the Bonds to be redeemed by operation of the mandatory sinking fund requirement shall be accordingly reduced; provided, however, the Paying Agent shall creidt only such Bonds maturing as term bonds to the extent received on or before forty-five (45) days precedingthe applicable mandatory redemption date.

(d) Each authorized denomination amount of Bonds shall be considered a separate bond for purposes of optional and mandatory redemption. If less than an entire maturity is called for Redemption, the Bonds to be called for redemption shall be selected by lot the Bonds ofr mandatory sinking fund redemption before selecting the Bonds by lot for optional redemption.

(e) Notice of redemption shall be given not less than thirty (30) days prior to the date fixed for redemption for Bond's, unless such redemption notice is waived by the owner of the Bonds or Bonds to be redeemed. Such notice shall be mailed to the address of the registered owner as shown on the registration record of the Town as of he date which is forty-five (45) days prior to such redemption date for Bonds that are sold to any other purchaser; provided, however that such notice shall be provided at least (60) days in advance if the Bonds are sold to the Authority as part of the IFA Program, to the registered owner as shown on the registration record of the Town as of the date which is sixety-five (65) days prior to the redemption date for such Bonds. The notice shall specify the date and place of redemption and sufficient identification of the Bonds called for redemption. The place of redemption may be determined by the Town. Interest on the Bonds so called for redemption shall cease on the redemption date fixed in such notive if sufficient funds are available at the place of redemption to pay the redemption price on the date so named.

(f) The BANs and the Bonds shall be called for redemption in multiples of their minimum authorized denomination. The BANs and the Bonds in denominations of more than the minimum authorized denomination shall be treated as representing the number of BANs and Bonds, respectively, obtained by diving the denomination of the BAN and the Bond, respectively, by the minimum authorized denomination within a maturity. The BANs and the Bonds may be redeemed in part. In the event of redemption of BANs and Bonds in part, upon surrender of the BAN or the Bond to be redeemed, a new BAN or BANs or Bond or Bonds in an aggregate principal amount equal to the unredeemed portion of the BAN or the Bond surrendered shall be issued to the registered owner thereof.

SECTION FIVE: Execution and Authentication of the BANs and the Bonds; Pledge of Net Revenues to the Bonds. The BANs and the Bonds shall be executed in the name of the Town by the manual or facsimile signature of the President of the Town Council (the "President") and attested by the manual or facsimile signature of the Clerk-Treasurer, who shall affix the seal of the Town to each of the BANs and the Bonds manually or shall have the seal imprinted or impressed thereon by facsimile. These Officials, by the signing of a Signature and No Litigation Certificate, shall adopt as and for their own proper signatures their facsimile signatures appearing on the BANs and the Bonds. The BANs and the Bonds must be authenticated by an authorized Officer of the Registrar or by the Clerk-Treasurer if the Clerk-Treasurer is acting as the Registrar. In case any Officer whose signature or facsimile signature appears on the Bonds or BANs shall cease to be such Officer before the delivery of the Bonds or BANs, the signature of such Officer shall nevertheless be valid and sufficient for all purposes the same as if such Officer had remained in office until such delivery. The Bonds and BANs shall have all of the qualities and incidents of negotiable instruments under the laws of the State of Indiana, subject to the provisions for registration herein. The Bonds, the 2021A Bonds and any additional bonds issued on a parity with the Bonds in accordance with the restrictions imposed by this Ordinance (the "Parity BOnds"), as to both principal and interest, shall be payable from and secured by an irrevocable pledge of and shall constitute a first charge upon the Net Revenues of the System, on parity with the 2021A Bonds. The TOwn agrees to take such action as is necessary from time to time to perfect or to otherwise preserve the priority of the pledge of the Net Revenues underapplicable law. The Town shall not be obligated to pay the principal of and interest on the Bonds, except from the Net Revenues of the System (except to the extent payable from the proceeds of the Bonds), and the Bonds shall not constitute an indebtedness of the Town within the meaning of the provisions and limitations of the Constitution of the State.

SECTION SIX: Security and Sources of Payment for the Bonds. The Bonds, as and to the extent paid for and delivered to the purchaser thereof, together with any other bonds issued on a parity therewith, including the 2021A Bonds (to be referred to hereinafter collectively as the "bonds," unless the context otherwise requires) , as to both principal and interest, shall be valid and binding special revenue obligations of the Town, payable solely from and secured by an irrevocable pledge of and constituting a charge upon all of the Net Revenues (herein defined as gross revenues, including System Development Charges (as hrereinafter defined), after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) derived from the Waterworks, including all such Net Revenues from the existing works, the Project and all additions and improvements thereto and replacements thereof subsequently constructed or acquired, to be set aside into the Sinking Fund as herein provided. For purposes of this Ordinance, "System Development Charges" shall mean the proceeds and balances from any System Development Charges such as tap fees, subsequent connector fees, capacity or contribution fees, and other similar one-time charges that are available for deposit under this Ordinance. The Town shall not be obligated to pay the Bonds or the interest thereon except from the Net Revenues of the Waterworks, and the Bonds shall not constitute an indebtedness of the Town within the meaning of the provisions and limitations of the Constitution of the State of Indiana.

SECTION SEVEN: Form of Bonds. The form and tenor of the Bonds shall be substantially as set forth in Exhibit C, with all blanks to be filled in properly and all necessary additions and deletions to be made prior to delivery thereof.

SECTION EIGHT: Preparation and Sale of BANs and Bonds Generally. The Clerk-Treasurer is hereby authroized and directed to have the BANs and the Bonds prepared, and the Town Council President and the Clerk-Treasurer are hereby authorized and directed to execute the BANs and the Bonds in the form and manner herein provided. The Clerk-Treasurer is hereby authorized and directed to deliver the BANs and the Bonds to the purchasers thereof after the sale made in accordance with the provisions of this Ordinance, provided that at the time of such delivery, the Clerk-Treasurer shall collect the full amount which the purchasers have agreed to pay therefor, which amount shall not be less than the applicable minimum percentage of the par value of the BANs or the Bonds set forth in SECTION THREE of this Ordinance. The Town may receive payment for the BANs and the Bonds in installments. The Bonds, as and to the extent paid for and delivered to the purchaser, shall be the binding speical revenue obligations of the Town, payable out of the Net Revenues of the System to be set aside into the Sinking Fund as provided herein. The proceeds derived from the sale of the BANs and the Bonds shall be and are hereby set aside to pay a portion of the cost of the project, the refunding of the BANs, if issued, and the investnment income therefrom, if applicable, and the expenses necessarily incurred in connection with the issuance of the BANs, if issued, and the Bonds. The designated and proper Officers of the Town are hereby directed to draw all proper and necessary warrants, and to do whatever acts and things which may be necessary to carry out the provisions of this Ordinance.

SECTION NINE: Issuance, Sale and Delivery of the Bonds; Official Statement.

(a) To provide for the Bonds to be sold by competitive sale, the Clerk-Treasurer shall cause to be published iether (i) a notice of such sale in the authorized newspaper(s) published in the Town, two (2) times, at least one (1) week apart, with the first publication being made at least fifteen (15) days before the date of the sale and the second publication being made at least three (3) days before the date of the sale; or (ii) a notice of intent to sell bonds in such authorized newspaper(s) and the Indiana Business Journal, all in accordance with the provisions of IC 5-1-11, as amended, and the provsions of IC 5-3-1, as amended. The notice shall state the character, the amount and the authorized denominations of the Bonds, the maximum rate or rates of interest thereon, the terms and conditions upon which bids will be received and the sale made, and such other information as the Clerk-Treasurer and the attorneys employed by the Town shall deem advisable. Any summary notice may contain any information deemed so advisable. The notice may provide, among other htings, that each bid shall be accompanied by a certified or cashier's check or a financial surety bond in an amount equal to one percent (1%) of the principal amount of the Bonds described in the notice. If a financial surety bond is used, it must be from an insurance company licensed to issue such bond in the State, and such bond must be submitted to the Town prior to the opening of the bids. The financial surety bond must identify each bidder who good faith deposit is guaranteed by such financial surety bond. If the Bonds are awarded to a bidder utilizing a financial surety bond, then the purchaser is required to submit to the Town a certified or cashier's check (or wire transfer such amount as instructed by the Town) not later than a time determined by the Municipal Advisor on the next business day following the award. In the event that the successful bidder shall fail or refuse to accept delivery of the Bonds and pay for the same as soon as the Bonds are ready for delivery, or at the time fixed in the notice of sale, then such good faith deposit and the proceeds thereof shall be the property of the Town and shall be considered as its liquidated damages on account of such default. Bidders for the Bonds will be required to name the rate or rates of interest which the Bonds are to bear, not exceeding the maximum rate hereinbefore fixed, and that such interest rate or rates shall be in multiples of one hundredth (1/100) of one percent (1%). The rate bid on a maturity shall be equal to or greater than the rate bid on the immediately preceding maturtiy. No conditional bid or bid for less than the applicable minimum percentage of the par value of the Bonds set forht in SECTION THREE of this Ordinance will be considered. The bonds shall be awarded by the Clerk-Treasurer to the best bidder who has submitted its bid in accordance with the terms of this Ordinance, the provisions of IC 5-1-11, as amended, and the notice. The best billder will be the one which offers the lowest interest cost to the Town, to be determined by computing the total interest on all of the Bonds to their maturities and deducting the premium bid, if any, or adding thereto the discount bid, if any. The right to reject any and all bids shall be reserved. If an acceptable bid is not received on the date of sale, the sale may be continued from day today thereafter without further advertisement for a period of thirty (30) days, during which time, no bid which provides a higher net interest cost to the Town that the best bid received at the time of the advertised sale will be considered. The opinion of Bond Counsel approving the legality of the Bonds will be furnished to the purchaser at the expense of the Town.

(b) As an alternative to public sale, the Clerk-Treasurer may negotiate the sale of the BANs or Bonds to any purchaser or to the Authority as part of its IFA Program. The President and the Clerk-Treasurer are hereby authorized to (i) submit an application to the Authority as part of its IFA Program, (ii) execute a Financial Assistance Agreement with the Authority with terms conforming to this ordinance, and (iii) sell such BANs or Bonds upon such terms as are acceptable to the President and the Clerk-Treasurer consistent with the terms of this Ordinance. The substantially final form of Financial Assistance Agreement attached hereto Exhibit B and incorporated herein by reference is hereby approved by this Town Council, and the President and Clerk-Treasurer are hereby authorized to execute and deliver the same, and to approve any changes in form or substance to the Financial Assistance Agreement which are consistent with the terms of this Ordinance, such changes to be conclusively evidenced by such execution.

(c) The BANs and Bonds (other than the BANs and Bonds sold to the Authority as part of its IFA Program) may, to the extent required by law, be offered and sold pursuant to an Official Statement with respect to the BANS or Bonds. Distribution of an Official Statement (Preliminary and Final) when and if prepared by the Municipal Advisor on behalf of the Town, is hereby authorized and approved, and the Town Council President is authorized and directed to execute the Offical Statement on behalf of the Town in a form consistent with this Ordinance. The Town Council President is authorized to deem the Preliminary Official Statement as "final" for purposes of Rule 15c2-12 promulgated by the Securities and Exchange Commission (the "Rule"). In the alternative, the Town Council President or the Clerk-Treasurer may obtain an investment letter from the purchaser of the Bonds in a form satisfactory to the Town Attorney and Bond Counsel.

SECTION TEN: Use of Proceeds.

(a) The accrued interest and the premium, if any received at the time of the delivery of the Bonds shall be deposited in the Bond and Interest Account (defined hereinbelow). The remaining proceeds from the sale of the Bonds and the BAN proceeds shall be deposited in a bank or banks which are legally designed depositories for the funds of the Town, in a special account or accounts to be deisgnated as "Town of Lapel Waterworks Construction Account" (the "Construction Account"). All funds deposited to the credit of the Sinking Fund or the Construction Account shall be deposited, held, secured or invested in accordance with the laws of the State of Indiana relating to the depositing, holding, securing or investing of public funds, including particularly the provisions of IC 5-13, as amended. The funds in the Construction Account shall be expended only for the purpose of paying the costs of issuance of the BANs or the Bonds, to pay all or any portion of the cost of the Project, refunding all or a portion of the BANS, if issued, or as otherwise required by the Act. The cost of obtaining the legal services of Bond Counsel shall be considered a part of the costs of issuance of the BANs and the Bonds.

(b) The Town hereby declares that it reasonably expects to reimburse the Town's advances to the Project from proceeds of the BANs or the Bonds, as anticipated by this Ordinance.

(c) Any balance or balances remaining unexpended in the Construction Account after completion of the Project, which are not required to meet unpaid obligations incurred in connection with the Project, shall either (1) be paid into the Bond and Interest Account and used solely for the purpose of paying the interest on the BANs or the Bonds when due until depleted or (2) be used for the same purpose or type of project for which the BANs or the Bonds were originally issued, all in accordance with the provisions of IC 5-1-13, as amended and supplemented.

(d) With respect to any BANs or Bonds sold to the Authority as part of its IFA Program, to the extent that (a) the total principal amount of the BANs or Bonds is not paid by the purchaser or drawn down by the Town, or (b) proceeds remain in the Construction Account and are not applied to the Project (or any modifications or additions thereto approved by the Authority), the Town shall reduce the principal amount of the remaing Bond maturities to effect such reduction in accounts which will still achieve the annual debt service as described in SECTION THREE subject to and upon the terms set forth in the Financial Assistance Agreement.

SECTION ELEVEN: Revenues. All income and revenues of the System shall be deposited upon receipt in the "Town of Lapel, Indiana. Waterworks Special Fund" (the "Revenue Fund"), hereby continued. The Revenue Fund shall be maintained separate and apart from all other accounts of the Town. Of these revenues the proper and reasonable expenses of operation, repair and maintenance of the Waterworks shall be paid, the principal and interest of all bonds and fiscal agency charges of registrars or paying agents shall be paid, the reserve shall be funded and the costs of replacements, extensions,additions and improvements shall be paid. All monies deposited in the Revenue Fund may be invested in accordance with the provisions of IC 5-13-9, as amended, and other applicable laws. The Revenue Fund shall be maintained separate and apart from all other accounts of the Town. No monies derived from the revenues of the System shall be transferred to the General Fund of the Town, or be used for any purpose not connected with the Waterworks.

SECTION TWELVE: Operation and Maintenance Fund. These shall be transferred from the Revenue Fund and credited to the "Town of Lapel, Indiana, Waterworks Operation and Maintenance Fund" (the "Operation and Maintenance Fund"), hereby continued, on the last day of each calendar month, a sufficient amount of the revenues of the System so that the balance in the Operation and Maintenance Fund shall be sufficient to pay the expenses of operation, repair and maintenance of the System for the then next succeeding two (2) calendar months. The monies credited to the Operation and Maintenance Fund shall be used for the payment of the reasonable and proper operation, repair and maintenance expenses of the System on a day-to-day basis, but none of the monies in such fund shall be used for depreciation, replacements or improvements. Any monies in the Operation and Maintenance Fund in excess of the expected expenses of operation, repair and maintenance for the next succeeding month may be transferred to the Sinking Fund if necessary to prevent a default in the payment of the principal of or interest on the Bonds, the 2021A Bonds, and any Parity Bonds (collectively, the "Bonds").

SECTION THIRTEEN: Sinking Fund.

(a) General. Aftermeeting the requirements of the Operation and Maintenance Fund set forth hereinabove, there shall be set aside and deposited in the "Town of Lapel, Indiana,Bond and Interest Redemption Account" (the "Sinking Fund"), hereby continued, as available, and as provided below (which Sinking Fund shall contain a Debt Service Subaccount, hereby continued (the "Bond and Interest Account") and a Reserve Subaccount, hereby continued (the "Reserve Account")), a sufficient amount of the Net Revenues of the System to meet the requirements of the Bond and Interest Account and the Reserve Account. Such payments shall continue until the balance in the Bond and Interest Account, plus the balance in the Reserve Account, equals the amount necessary to redeem all of the Bonds, the 2021A Bonds, and any Parity Bonds.

If the Bonds are sold to the Authority as part of its IFA Program, the Sinking Fund, containing the Bond and Interest Account and the Reserve Account, and/or the Construction Account, may be held by a financial institution acceptable to the Authority as part of its IFA Program, pursuant to terms acceptable to the Authority. If the Sinking Fund and the accounts therein are held in trust, the Town shall transfer the monthly required amounts of Net Revenues to the Bond and Interest Account and the Reserve Account in accordance with this Section 13, and the financial institution holding such funds in trust shall be instructed to pay the required payments in accordance with the payment schedules for the Town's outstanding bonds. The Town Council President and Clerk-Treasurer are hereby authorized to execute and deliver an agreement with a financial institution to reflect this trust arrangement for the Sinking Fund and/or the Construction Account. The financial institution selected to serve in this role may also serve as the Registrar and the Paying Agent for any outstanding bonds of the Town.

(b) Bond and Interest Account. Beginning as of the date of issuance of the Bonds, there shall be transferred from the Revenue Fund and credited on the first day of each month to the Bond and Interest Account an amount of the Net Revenues equal to at least (i) one sixth (1/6) of the interest on all the then-outstanding bonds payable from the Net Revenues on the next succeeding Interest Payment Date and (ii) one-twelth (1/12) of the principal on all of the outstanding bonds payable on the next succeeding principal payment date, until the amount of interest and principal payable on the next succeeding interest and principal payment date shall have been so credited. There should similarly be credited to the account any amount necessary to pay the bank fiscal agency changes on the outstanding Bonds as the same became payable. The Town shall, from the sums deposited in the Sinking Fund and credited to the Bond and Interest Account, remit promptly to the registered owner or bank fiscal agent sufficient monies to pay the principal and interest on the due date thereof together with the amount of bank fiscal agency charges.

In no event shall any part of the Sinking Fund be used in calling Bonds for redemption prior to their respective maturities, except to the extent that the amount then in the Sinking Fund exceeds the amount required to pay the Bonds which will mature within a period of twelve (12) calendar months next following the date of such redemption, together with all interest on Bonds payable in such period. Any such excess of funds above such required levle may also be used in purchasing outstanding bonds at a price less than the then-applicable redemption price, with the prior approval of the Town. Monies in the Sinking Fund shall not be used for any other purpose whatsoever except as provided in this Ordinance.

(c) Reserve Account.

(1) On the date of delivery of the Bonds, the Town may deposit Bond proceeds, unless the Bonds are sold to the Authority as part of its IFA Program, funds on hand or a combination thereof, into the Reserve Account. Except as set forth herein, the balance to be maintained in the Reserve Account shall equal but not exceed the least of (i) the maximum annual debt service on the Bonds issued hereunder, the 2021A Bonds, and any Parity Bonds; (ii) one hundred twenty-five percent (125%) of average annual debt service on the Bonds issued hereunder, the 2021A Bonds, and the Parity Bonds; or (iii) ten percent (10%) of the proceeds of the Bonds issued hereunder, the 2021A Bonds, and the Pairty Bonds (the "Reserve Requirement"). In the event the Bonds are sold to the Authority as part of its IFA Program, then the Reserve Requirement shall equal but not exceed the maximum annual debt service on the Bonds, the 2021A Bonds, and any Parity Bonds. If no deposit is made at the time of the issuance of the Bonds or if the initial deposit does not equal the Reserve Requirement, the monthly deposits of Net Revenues shall be equal in amount and sufficient to accumulate the Reserve Requirement within five (5) years of the date of delivery of the Bonds. The balance in the Reserve Account, allocable to the Bonds, shall never exceed the Reserve Requirement.

(2) The Reserve Account shall constitute a margin for safety and a protection against default in the payment of the principal of, premium, if any, and interest on the Bonds, the 2021A Bonds, and any Parity Bonds on a parity basis, and the monies in the Reserve Account shall be used to pay the principal of and interest on the Bonds, the 2021A Bonds, and any Parity Bonds on a parity basis, to the extent that monies in the Bond and Interest Account are insufficient for that purpose. Any deficiency in the balance maintained in the Reserve Account shall be promptly made up from the next available Net Revenues after the required deposits into the Bond and Interest Account. In the event monies in the Reserve Account are transferred to the Bond and Interest Account to pay the principal of and interest on the Bonds, the 2021A Bonds, and any Parity Bonds on a parity basis, then that depletion of the balance in the Reserve Account shall be made up from the next available Net Revenues after the required deposits into the Bond and Interest Account. Invenstments in the Reserve Account shall be valued at least annually at their fair market value and marked to market. If, after such valuation, it is determined that the amount on deposit in the Reserve Account is in excess of the Reserve Requirement, such excess shall either be transferred to the Town of Lapel, Indiana, Waterworks Improvement Account, hereby continued (the "Improvement Fund"), or be used for the purchase of Bonds or installments of principal of Bonds at a price not exceeding par and accrued interest.

(3) Notwithstanding the foregoing, the Clerk-Treasurer, with the advice of the Municipal Advisor and Bond Counsel and with the prior written consent of the Authority if the Bonds are sold to the Authority as part of the IFA Program, may enable the Town to satisfy all or any portion of the Reserve Requirement by depositing in the Reserve Account any surety bond, insurance policy, guaranty, letter of credit or other credit enhancement in an amount equal to such portion, provided the issuer of such instrument is rated "AA" or higher at the time of such deposit.

(4) If the Bonds are sold to the Authority as part of its IFA program, the Sinking Fund (containing the Bond and Interest Account, and the Reserve Account), or any portion thereofm and the Construction Fund, may be held by one (1) or more financial institutions acceptable to the Authority as part of its IFA Program, pursuant to terms acceptable to the Authority. If the Sinking Fund and the account therein, or any portion thereof, are so held in trust, the Town shall transfer the monthly required amounts of Net Revenues to the Bond and Interest Account and the Reserve Account in accordance with SECTION THIRTEEN of this Ordinance, and the financial instution holding such funds in trust shall be instructed to pay the required payments in accordance with the payment schedules applicable to the Town's outstanding bonds. If the Construction Fund is so held in trust, the Town shall deposit the proceeds of the Bonds therein until such proceeds are applied consistent with this Ordinance and the Financial Assistance Agreement. The Town Council President and Clerk-Treasurer are hereby authorized to execute and deliver an agreement with a financial institution to reflect this trust arrangement for all or a part of the Sinking Fund and the Construction Fund in the form of a Trust Agreement as approved by the Town Council President and Clerk-Treasurer, consistent with the terms and provisions of this Ordinance.

SECTION FOURTEEN: Improvement Fund. After meeting the requirements of the Operation and Maintenance Fund and the Sinking Fund set forth above, the Town shall transfer to the Improvement Fund from the Revenue Fund on or before the last day of each calendar month a sufficient amount of Net Revenues to be used for improvements to, replacements of, additions to, and extensions of the System. Monies in the Improvement Fund shall be transferred to the Bond and Interest Account if and to the extent necessary to prevent a default in the payment of the principal of, premium, if any, or interest on any Bond payable from Net Revenues, or, if necessary, to eliminate any deficiencies in the deposits or the minimum balance in the Reserve Account as required by SECTION THIRTEEN (c) of this Ordinance. At any other time, monies in the Improvement Fund may be transferred to the Operation and Maintenance Fund to meet unforeseen contingencies in the operation, repair and maintenance of the System.

SECTION FIFTEEN: Maintenance of Accounts: Investments. The Sinking Fund shall be maintained as a separate account or accounts from all other accounts of the Town. The Operation and Maintenance Fund and the Improvement Fund may be maintained in a single account or separate accounts, but such account or accounts, shall likewise be maintained separate and apart from all other accounts of the Town and apart from the Sinking Fund account or accounts. All monies deposited in the Funds and Accounts continued by this Ordinance shall be deposited and held and secured as public funds in accordance with the public depository lawns of the State; provided that monies therein may be invested in obligations in accordance with applicable laws, including the provisions of IC 5-13-9, IC 5-1.2-1 through IC 5-1.2-4, IC 5-1.2-10, IC 5-1.2-11, IC 5-1.2-14 and/or IC 5-1.2-14.5 (as applicable), as each are amended or supplemented, and in the event of such investment, the income therefrom shall become a part of the funds invested and shall be used only as provided in this Ordinance. The amounts in the Bond and Interest Account and all other funds and accounts created pursuant to this Ordinance shall be kept in separate bank accounts apart from all other bank accounts of the Town. In no event shall any of the revenues of the Waterworks be transferred or used for any purpose not authorized by this Ordinance so long as any of the bonds of the Waterworks issued pursuant to the provisons of this Ordinance shall be outstanding. Investment income earned on monies in the funds and accounts established by this Ordinance shall become a part of the funds and accounts invested and shall be used only as provided in this Ordinance.

SECTION SIXTEEN: Maintenance of Books and Records.

The Town shall keep proper books of records and accounts, separate from all of its other records and accounts, in which complete and correct entries shall be made showing all revenues collected from the Waterworks, all disbursements made on account of the operation of the Waterworks, and to meet the requirements of the Sinking Fund and all other financial transactions relating to the Waterworks. There shall be prepared and furnished upon written request, to any owner of the BANs or Bonds at the time then outstanding, not more than ninety (90) days after the close of each fiscal year, complete financial statements of the works, covering the preceding fiscal year, which annual statements shall be certified by the Clerk-Treasurer, or by licensed independent public accountants employed for that purpose. Copies of all such statements and reports shall be kept on file in the office of the Clerk-Treasurer. Any owner or owners of at least five percent (5%) of the Bonds then outstanding shall have the right at all reasonable times to inspect the works and all records accounts and date of the Town relating thereto. Such inspections may be made by representatives duly authorized by written instrument. If any BAN's or Bonds are sold to the Authority as part of its IFA Program, the Town shall establish and maintain the books and other financial records of the Project (including the establishment of a separate account or subaccount for the Project) and the waterworks in accordance with (i) generally accepted governmental accounting standards for utilities, on an accrued basis, as promulgated by the Government Account Standards Board and (ii) the rules, regulations and guideance of the State Board of Accounts.

SECTION SEVENTEEN: Rate Covenant. The Town covenants and agrees that, by orginance of the Town Council, it will establish and maintain just and equitable rates and charges for the use of and the service rendered by the System, to be paid by the owner of each and every lot, parcel of real estate or building that is connected with and uses the System by or through any part of the Waterworks of the Town, or that in any way uses or is served by the System, that such rates and charges shall be sufficient in each year to provide for the payment of the proper and reasonable expenses of Operation and Maintenance and for the payment of the sums required to be paid into the Sinking Fund by the Act and this Ordinance and to comply with an satisfy all covenants contained in this Ordinance and the Financial Assistance Agreement. So long as any of the Bonds are outstanding, none of the facilities or services afforded or rendered by said system shall be furnished without a reasonable and just charge being made therefor. The Town shall pay like charges for any and all services rendered by said Waterworks to the Town, and all such payments shall be deemed to be revenues of the Waterworks. Such rates and charges shall, if necessary, be changed and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet the expenses of Operation and Maintenance of the System and the requirements of the Sinking Fund. The rates and charges so established shall apply to any and all use of the System by and service rendered to the Town and shall be paid by the Town as the charges accrue.

SECTION EIGHTEEN: Defeasance of Bonds. If: (i) any of the Bonds shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions to call the Bonds or any portion thereof for redemption shall have been given, and the whlole amount of the principal, the premium, if any, and the interest, so due and payable upon all of the Bonds or any designated portion thereof then outstanding shall be paid; or (ii) the Town shall cause to be held in trust for the purpose of paying when due the principal of, premium, if any, and interest on the Bonds or any designated portion thereof, money, together with direct obligations of (including obligations issued or held in book entry form on the books of) the Department of the Treasury of the United States of America, the principal of and the interest on which when due, will be sufficient, without reinvestment, to make such payments, and provision shall also be made for paying all fees and expenses for the redemption of such Bonds; then and in that case, such Bonds shall no longer be deemed outstanding or entitled to the pedge of the Net Revenues of the System.

SECTION NINETEEN: Additonal BANs and Bonds. The Town reserves the right to authorize and issue additional BANs at any time ranking on a parity with the BANs. The Town reserves the right to authorized and issue Parity Bonds for the purpose of financing the cost of future additions to, extensions of and improvements to the System, or to refund obligations, subject to the following conditions:

(a) The principal of and interest on all bonds payable from the Net Revenues of the System shall have been paid in accordance with the terms thereof, and the amounts required to be paid into the Sinking Fund shall have been made to date in accordance with the provisions of this Ordinance.

(b) The Net Revenues of the System in the fiscal year immediately preceding the issuance of any such Parity Bonds shall be not less than one hundred twenty-five percent (125%) of the maximum annual principal and interest requirements of the then-outstanding bonds payable from the Net Revenues and the additional Parity Bonds proposed to be issued; or, prior to the issuance of such Parity Bonds, the water rates and charges shall be increased sufficiently so that such increased rates and charges applied to the previous year's operations would have produced Net Revenues for such year equal to not less than one hundred twenty-five percent (125%) of the maximum annual principal and interest requirements of the then-outstanding bonds payable from the Net Revenues and the additional Parity Bonds porposed to be issued. For purposes of this subsection, the records of the System shall be analyzed and all showings shall be prepared by a certified public accountant employed by the Town for that purpose. In addition, for purposes of this subsection, with respect to any Parity Bonds hereafter issued while the Bonds remain outstanding and owned by the Authority as part of its IFA Program, Net Revenues may not include any revenues from the System Development Charges unless the Authority provides its consent to include all or some portion of the System Development Charges as part of the Net Revenues or otherwise consents to the issuance of such Parity Bonds without satisfying this subjection (b).

(c) The principal of, or mandatory sinking fund redemption dates for, the additional Parity Bonds shall be payable annually on January 1st and interest on the additional Parity Bonds shall be payable semiannually on the first day of January and July.

(d) The Reserve Requirement shall be satisfied for the additional Parity Bonds either at the time of delivery of the additional Pairty Bonds or over a five (5) year or shorter period, in a manner which is commensurate with the requirements established in Section 11(c) of this Ordinance.

(e) If the Bonds are sold to the Authority as part of its IFA program: (i) the Town obtains the consent of the Authority; (ii) each of the Town and the Town Council has faithfully performed and is in compliance with each of its obligations, agreements and covenants contained in the Financial Assistance Agreement and this Ordinance; and (iii) the Town is in compliance with its System permits, except for noncompliance, the elimination of which is a purpose for which the Parity Bonds, including any refunding bons are issued so long as such issuance constitutes part of an overall plan to eliminate such noncompliance.

SECTION TWENTY: Further Covenants. For the purpose of further safeguarding the interests of the owners of the BANs and the Bonds, it is specifically provided as follows:

(a) All contracts let by the Town in connection with the construction of said additions and improvements to the Waterworks shall be let after due advertisement as required by the applicable laws of the State of Indiana, and all contractors shall be required to furnish surety bonds in an amount equal to one hundred percent (100%) of the amount of such contracts, to insure the completion of said contracts in accordance with their terms, and such contractors shall also be required to carry such employer's liability and public liability insurance as are required under the applicable laws of the State of Indiana in the case of public contracts, and shall be governed in all respects by the applicable laws of the State of Indiana relating to public contracts.

(b) Said additions and improvements shall be constructed under the supervision and subject to the approval of the Consulting Engineers or such other competent engineer as shall be designated by the Town Council. All estimates for work done or material furnished shall first be checked by the Consulting Engineers and approved by the Town Council.

(c) The Town shall at all times maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost.

(d) So long as any of the BANs or the Bonds are outstanding, the Town shall acquire and maintain insurance coverage acceptable to the Authority if any Bonds are sold to or owned by the Authority as part of the IFA Program, on the insurable parts of the system, of a kind and in an amount such as is usually carried by private corporations engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the applicable laws of the State. All insurance proceeds or condemndation proceeds shall be used in replacing or restoring the System or, unless the Authority shall consent to a different use of such proceeds or awards if any Bonds are sold to or are owned by the Authority as part of its IFA Program, or, if no bonds are sold to or are owned by the Authortiy as part of its IFA Program and such proceeds or awards are not used for such purposes, such proceeds or awards shall be treated and applied as Net Revenues of the Waterworks.

(e) So long as any of the BANs or the Bonds are outstanding, the Town shall not mortgage, pledge or otherwise encumber the property and plant of the System, or any portion thereof, or any interest therein. The Town shall not sell, lease or otherwise dispose of any part of the System, except for such machinery, equipment or other property as may be replaced or shall no longer be necessary for use in connection with the System, and if Bonds are sold to the Authortiy as part of its IFA Program, provided that the Town shall obtain the prior written consent of the Authority.

(f) Except as otherwise specifically provided in SECTION NINETEEN hereof, as long as any of the BANs or the Bonds are outstanding, no additional bonds or other obligations pledging any portion of the revenues of the System shall be authorized, executed, or issued by the Town, except those as shall be made subordinate and junior in all respects to the Bonds herein authorized, unless the BANs and the Bonds are redeemed or defeased pursuant to SECTION EIGHTEEN hereof coincidentally with the delivery of such additional bonds or other obligations.

(g) If any Bonds are sold to the Authority as part of its IFA Program, except as otherwise specifically provided in SECTION NINETEEN hereof, the Town shall not without the prior written consent of the Authority (i) enter into any lease, contract or agreement or incur any other liabilities in connection with the Waterworks other than for normal operating expenditures or (ii) borrow any money (including without limitation any loan from other utilities operated by the Town) in connection with the Waterworks.

(h) The provisions of this Ordinance shall constitute a contract by and between the Town and the owners of the BANs and the Bonds, all the terms of which shall be enforceable by any holder of the BANs or the Bonds by any and all appropriate proceedings in law or in equity. After the issuance of the BANs or the Bonds, this Ordinance shall not be repealed, amended or modified in any respect which will adversely affect the rights or interests of the owners of the BANs or the Bonds, nor shall the Town Council or any other body of the Town adopt any law, Ordinance or Resoluton which in any way adversely affects the rights of such owners so long as any of the BANs or the Bonds remain outstanding. Except for the changes set forth in SECTION TWENTY-THREE (a)(1)-(7) of this Ordinance, this Ordinance may be amended, however, without the consent of the BAN or the Bond owners, if the Town Council determines, in its sole discretion, that such amendment would not adversely affect the rights of any of the owners of the BANs or the Bond; provided, however, that if any of the Bonds are sold to and owned by the Authority as part of its IFA Program, the Town shall obtain the prior written consent of the Authority.

(i) The provisions of this Ordinance shall be construed to create a trust in the proceeds of the sale of the BANs and the Bonds for the uses and purposes set forth herein, and the owners of the BANs and the Bonds shall retain a lien on such proceeds until the same are applied in accordance with the provisions of this Ordinance and the Act. The provisions of this Ordinance shall also be construed to create a trust in the portion of the Net Revenues herein directed to be set apart and paid into the Sinking Fund or the Improvement Fund for the uses and purposes of such Funds as set forth in this Ordinance. The owners of the BANs and the Bonds shall have all of the rights, remedies and privileges set forth in the provisions of the Act, including the right to have a receiver appointed to administer the System, in the event of default in the payment of the principal of or interest on any of the Bonds. Upon the appointment of such receiver, the receiver may: (i) charge and collect rates sufficient to provide for the payment of the expenses of the operation, repair and maintenance of the System and debt service as provided in the next following clause; (ii) pay the interest on the BANs or the principal of, premium, if any, and interest on any bonds payable from the Net Revenues; and (iii) apply the revenues of the System in conformity with the Act and this Ordinance.

In addition, any owner of the BANs and the Bonds may, by civil action, protect and enforce rights, granted by the Act or under this Ordinance in connection with any action or duty to be performed by the Town, the Town Council, or any Officer of the Town, including the making and collecting of reasonable and sufficient charges and rates for services provided by the System as described in this Ordinance.

(j) For purpose of this SECTION, the term "lease" shall include any lease, contract, or other instrument conferring a right upon the Town to use property in exchange for a periodic payments made from the revenues of the Waterworks, whether the Town intends to cause such to be, or by its terms (or its intended effects) is to be, (i) payable as rent, (ii) booked as an expense or an expenditure, or (iii) classified for accounting or other purposes as a capital lease, finacning lease, operating lease, non-appropriation leases, installment purchase agreement or lease, or otherwise (including any combination thereof).

(k) None of the provisions of this Ordinance shall be construed as requiring the expenditure of any funds of the Town derived from any source other than the proceeds of the BANs, the Bonds or the operations of the System.

SECTION TWENTY-ONE: Investment of Funds. 

(a) The Clerk-Treasurer is hereby authorized pursuant to the provisions of IC 5-1-14-3, as mended, to invest monies pursuant to the provisions of this Ordinance (subject to applicable requirements of federal law to insure the yields on such investments are equal to the then-current market rates) to the extent necessary or advisable to preserve the exclusion from gross income of interest on the BANs or the Bonds under federal law.

(b) The Clerk-Treasurer shall keep full and accurate records of investment earnings and income from monies held in the Funds and Accounts continued by this Ordinance. In order to comply with the provisions of the Ordinance, the Clerk-Treasurer is hereby authorized and directed to employ consultants or attorneys from time to time to advise the Town as to requirements of federal law to preserve the tax exclusion described above. The Clerk-Treasurer may pay the fees of such consultants or attorneys as operation expense of the System.

SECTION TWENTY-TWO: Tax Covenants. In order to preserve the exclusion of interrest on the BANs and the Bonds from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as existing on the date of issuance of the BANs or the Bonds, as the case may be (the "Code"), and as an inducement to the purchasers of the BANs and the Bonds, the Town represents, covenants and agrees that:

(a) The use of the System will be based upon arrangements providing for use that is available to the general public on the basis of rates that are generally applicable and uniformly applied, and, to the extent so used, such use shall constitute general public use. No person or entity, other than the Town or another state or local governmental unit, will use more than tent percent (10%) of the proceeds of the BANs or the Bonds or the property financed by the BAN or Bond proceeds, other than in a manner constituting general public use. No person or entity, other than the Town or another state or local governmental unit, will own property financed by the BAN or Bond proceeds or will have actual or beneficial use of such property pursuant to a lease, management, service or incentive payment contract, or any other type of arrangement that conveys other special legal entitlements and differentiates that person's or entity's use of such property from general public use, unless such uses in the aggregate relate to no more than tent percent (10%) of the proceeds of the BANs or the Bonds, as the case may be. If the Town enters into a management contract for all or a portion of the System, the terms of the contract will comply with the Treasury Regulations issued by the United States Department of the Treasury (the "Regulations") and IRS Revenue Procedure 2017-13, and as such may hereafter be further amended, supplemented or superseded from time to time, so that the contract will not give rise to private business use under the Code and the Regulations, unless such use in the aggregate will not relate to more than tent percent (10%) of the BANs or the Bonds.

(b) No more than tent percent (10%) of the principal of or interest on the BANs or the Bonds is (under the terms of the BANs, the Bonds, this Ordinance or any underlying arrangement), directly or indirectly, secured by an interest in property used or to be used for private business use or payments in respect of such property, or to be derived from payments (whether or not to the Town) in respect of property or borrowed money used or to be used for a private business use.

(c) No more than five percent (5%) of the BAN or Bond proceeds will be loanded to any person or entity other than another state or local governmental unit. No more than five percent (5%) of the BAN or Bond proceeds will be transferred, directly or indirrectly, or deemed transferred to a nongovernmental person in any manner that would in substance constitute a loan of the BAN or Bond proceeds.

(d) The Town reasonably expects, as of the date hereof, that the BANs and the Bonds will not meet either the private business use test described in sub-sections (a) and (b) above or the private loan test described in sub-section (c) above during the entire term of the BANs and the Bonds.

(e) No more than five percent (5%) of the proceeds of the BANs or the Bonds will be attributable to private business use as described in sub-section (a) above and private security or payments described in sub-section (b) above attributable to unrelated or disproportionate private business use. For this purpose, the private business use test is applied by taking to account only that that is not related to any government use of proceeds of the issues and use that is related but disproportionate to any governmental use of those proceeds.

(f) The Town will not take any action nor fail to take any action with respect to the BANs or the Bonds that would result in the loss of the exclusion from gross income for federal tax purposes of interest on the BANs or the Bonds pursuant to the provisions of Section 103 of the Code, nor will the Town act in any other manner which would adversely affect such exclusion.

(g) It shall not be an event of default under this Ordinance if the interest on any BANs or Bonds is not excludable from gross income for federal tax purposes or otherwise pursuant to any provision of the Code which is not currently in effect and in existence on the date of issuance of the BANs or the Bonds, as the case may be.

(h) The Town represents that will will rebate any arbitrage profits to the United States of America to the extent required by the Code and the Regulations.

(i) On or before the date of issuance of each series of BANs and the Bonds, the Clerk-Treasurer is hereby authorized to designate all or any portion of such BANs or Bonds as qualified tax-exempy obligations pursuant to Section 265(b)(3) of the Code, if determined appropriate and permissible thereunder, with the advice of Bond Counsel.

(j) These covenants are based solely on current law in effect and in existence on the date of delivery of the BANs or the Bonds as the case may be.

(k) Notwithstanding any other provisions of this Ordinance, the covenants and authorizations contained in this Ordinance (the "Tax Sections"), which are designed to preserve the exclusion of interest on the BANs and the Bonds from gross income under federal law (the "Tax Exemption"), need not be complied with if the Town receives an opinion of nationally recognized bond counsel that any Tax Section is unnecessary to preserve the tax exemption.

SECTION TWENTY-THREE: Amendments with Consent of Bondholders.

(a) Subject to the terms and provisions contained in this SECTION and SECTION NINETEEN (e) of this Ordinance, and not otherwise, the owners of not less than sixty-six and two-thirds percent (66 2/3%) in aggregate principal amount of the Bonds then-outstanding shall have the right, from time to time, anything contained in this Ordinance to the contrary notwithstanding, to consent to and approve the adoption by the Town Council of such Ordinance or Ordinances supplemental hereto or amendatory hereof, as shall be deemed necessary or desirable by the Town Council for the purpose of modifying,altering, amending, adding to or rescinding in any particular any of the terms or provisions contained in this Ordinance or any supplemental ordinance; provided, however, for so long as the Bonds are outstanding and owned by the Authority, the Town shall obtain the prior written consent of the Authority; and provided, further that nothing herein contained shall permit or be construed as permitting:

(1) An extension of the maturity of the principal of or the due date of interest on any BAN or Bond; or

(2) A reduction in the principal amount of any BAN or Bond or the redemption premium or the rate of interest thereon; or

(3) The creation of a lien upon or a pledge of the revenues or Net Revenues of the System ranking prior to the pledge thereof created by this Ordinance; or

(4) A preference or priority of any BAN or BANs over any other BAN or BANs or of any Bond or Bonds over any other Bond or Bonds; or

(5) A reduction in the aggregate principal amount of the Bonds required for consent to such supplemental ordinance; or

(6) A reduction in the Reserve Requirement; or

(7) The extension of mandatory sinking fund redemption dates for the Bonds, if any.

(b) If the owners of not less than sixty-six and two-thirds percent (66 2/3%) in aggregate principal amount of the Bonds outstanding at the time of adoption of such supplemental ordinance shall have consented to and approved the adoption thereof by written instrument to be maintained on file in the Office of the Clerk-Treasurer, no owner of any Bond shall have any right to object to the adoption of such supplemental ordinance or to object to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin or restrain the Town Council from adopting the same, or from taking any action pursuant to the provisions thereof; provided, however that if any BANs or Bonds are sold to the Authority, the Town shall obtain the prior written consent of the Authority. Upon the adoption of any supplemental Ordinance pursuant to the provisions of this SECTION, this Ordinance shall be, and shall be deemed, modified and amended in accordance therewith, and the respective rights, duties and obligations under this Ordinance of the Town and all owners of Bonds then-outstanding, shall thereafter be determined, exercised and enforced in accordance with this Ordinance, subject in all respects to such modifications and amendments. Not withstanding anything contained in the foregoing provisions of this Ordinance, the rights and obligations of the Town and the owners of the Bonds, and the terms and provisions of the Bonds and this Ordinance, or any supplemental Ordinance, may be modified or altered in any respect with the consent of the Town and the owners of all the Bonds then-outstanding.

SECTION TWENTY-FOUR: Issuance of BANs.

(a) The Town, having satisfied all the statutory requirements for the issuance of the Bonds, may elect to issue the BAN or BANs to a financial institution, or any other purchaser (if then authorized by State law), pursuant to a Bond Anticipation Note Purchase Agreement (the "Bond Anticipation Note Agreement") to be entered into between the Town and the purchaser of the BAN or BANs, but only if such Agreement is deemed necessary by Bond Counsel. The Town Council hereby authorizes the isusance and execution of the BAN or BANs in lieu of initially issuing the Bonds to provide interim financing for the Refunding until permanent financing becomes available and, if deemed appropriate, to refund such BAN or BANs and to pay the costs of issuance of the BANs. It shall not be necessary for the Town to repat the procedures for the issuance of the Bonds, as the procedures followed before the issuance of the BAN or BANs are for all purposes sufficient to authorize the issuance of the Bonds and the use of the proceeds to repay the BAN or BANs.

(b) The President and the Clerk-Treasurer are hereby authorized and directed to execute a Bond Anticipation Note Agreement, if any (and any amendments made from time to time) in such form or substance as they shall approve, acting upon the advice of Bond Counsel. The Town Council President and the Clerk-Treasurer may take such other actions or execute and deliver such certificates as are necessary or desirable in connection with the issuance of the BANs or the Bonds and the other documents needed for the financing deemed necessary or required in connection therewith.

SECTION TWENTY-FIVE: Rate Ordinance. The Town Council adopted a Rate Ordinance which sets forth the rates and charges applicable to the System.

SECTION TWENTY-SIX: Continuing Disclosure. If necessary in order for the purchaser of the BANs or the Bonds to comply with the Rule, the Town Council President and the Clerk-Treasurer are hereby authorized to execute and deliver, in the name and on behalf of the Town, (i) an agreement by the Town to comply with the requirements for a Continuing Disclosure Undertaking of the Town pursuant to subsection (b)(5) or (d)(2) of the Rule, and (ii) amendments to such agreement from time to time in accordance with the terms of such agreement (the agreement and any amendments thereto are collectively referred to hereinafter as the "Continuing Disclosure Agreement"). The Town hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Agreement. The remedies for any failure of the Town to comply with and carry out the provisions of the Continuing Disclosure Agreement shall be as set forth therein.

SECTION TWENTY-SEVEN: Conflicting Ordinances. All prior Ordinances, and parts of prior ordinances insofar as they are in conflict herewith, are hereby repealed.

SECTION TWENTY-EIGHT: Effective Date. This Ordinance shall take effect, and be in full force and effect, from and after its passage and adoption by the Toen Council of the Town of Lapel, Madison County, Indiana, in conformance with applicable law.

 

EXHIBITS

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Further Information

16-2021

EXHIBIT A

PROJECT DESCRIPTION

The Project will be constructed in two (2) contract divisions which are defined and outlined as follows:

Division A - Well, Treatment, and Storage Improvements

The project includes but is not limited to improvements to the existing wells, including Ford Street building improvements and SR13 pump/motor replacement, and improvements to the existing WTP, including SCADA upgrades, and chemical feed upgrades. The project also included general modifications to the existing clearwell including the addition of a mechanical mixer, and a new fire flow pump station.

Division B - Distribution System Improvements

The project consists of furnishing all labor, material, and equipment to complete general improvements to the Town of Lapel's distribution system. The work consists of but is not limited to, the installation of 8-inch and 6-inch diameter water mains, new fire hydrants, abandonment of existing water mains in place, all associated connects to existing mains and services, and all related work required to complete the project as outlined the Plans and Specification. This includes associated paving, grading, surface restoration, striping, and utility relocation to accomodate the proposed improvements.

 

EXHIBIT B

FORM OF FINANCIAL ASSISTANCE AGREEMENT

STATE OF INDIANA

DRINKING WATER REVOLVING LOAN PROGRAM

FINANCIAL ASSISTANCE AGREEMENT made as of ________ day of _________ 2021 by and between the Indiana Finance Authority (the "Finance Authority"), a body politic and corporate, not a state agency but an independent instrumentality of the State of Indiana (the "State") and the Town of Lapel, Indiana (the "Participant"), a political subdivision as defined in IC 5-1.2-2-57, operating its water utility under IC 8-1.5, withesseth:

WHEREAS, the State's Drinking Water Revolving Loan Program (the "Drinking Water SRF Program") has been established in accordance with the federal safe Drinking Water Act and any regulations promulgated thereunder, and pursuant to IC 5-1.2-10 (the "Drinking Water SRF Act"), which Drinking Water SRF Act also establishes the drinking water revolving loan fund (the "Drinking Water SRF Fund"); and

WHEREAS, pursuant to the Drinking Water SRF Act, the State was authorized to fund the Drinking Water SRF Program with federal capitalization grants, together with required state matching funds therefor, and to operate the Drinking Water SRF Program, and prior to May 15th, 2005 so funded and operated the Drinking Water SRF Program; and 

WHEREAS, pursuant to Public Law 235 - 2005, by operation of law and effective May 15, 2005, the Finance Authority has become the successor to the State in all matters related to the Drinking Water SRF Program (including use and acceptance of federal capitalization grants and required state matching funds and operation of the Drinking Water SRF Program); and

WHEREAS, the Participant is a duly existing political subdivision of the State, lawfully empowered to undertake all transactions and execute all documents mentioned or contemplated herein; and

WHEREAS, the Participant has determined to undertake a drinking water system project (as more fully described herein, the "Project") and to borrow money from the Drinking Water SRF Program to construct and acquire the Project; and

WHEREAS, the Finance Authority and the Participant desire to set forth the terms of such financial assistance as hereinafter provided.

NOWTHEREFORE, in consideration of the mutual covenants herein set forth, the Finance Authortiy and the Participant agree as follows:

ARTICLE 1

DEFINITIONS

Section 1.01. Definitions. The following terms shall, for all purposes of this Agreement, have the following meaning:

"Agency" shall mean the United States Environmental Protection Agency or its successor.

"Asset Management Program" means programs, plans and documentation (including a Fiscal Sustainability Plan) that demonstrates that the Participant has the financial, managerial, technical, and legal capability to operate and maintain its Drinking Water System and which is consistent with SRF Policy Guidelines including applicable requirements of the Drinking Water SRF Act.

"Authorizing Instrument(s)" shall mean the Clerk-Treasurer of the Participant or such other officer, official, or representative of the Participant duly authorized to act for and on behalf of the Participant as provided for herein.

"Bond" or "Bonds" shall mean the instrument(s) which evidence(s) the Loan, as authorized by the Authorizing Instrument and containing the terms set forth in Section 2.02 of this Agreement.

"Bond Fund" shall mean the separate and segregate fund or account established and created by the Participant pursuant to the Authorizing Instrument from which payment of the principal of and interesnt on the Bonds is required to be made by the Participant.

 "Business Day" shall mean any day other than a Saturday, Sunday or State legal holiday or any other day on which financial institutions in the State are authorized by law to close and to remain closed.

"Code" shall mean the Internal Revenue Code of 1986, as amended and supplemented from time to time, together with the regulations related thereto.

"Commission" shall mean the Indiana Utility Regulatory Commission created under IC 8-1-1-2 or its successor.

"Construction Fund" shall mean the separate and segregated fund or account established and created by the Participant pursuant to the Authorizing Instrument to receive proceeds of the Bonds and from which Eligible Costs of the Project may be paid by the Participant.

"Credit Instrument" means a letter of credit, surety bond, liquidity facility, insurance policy or comparable instrument furnished by a Credit Provider that is used by the Participant to meet all or a portion of any debt service reserve requirement securing the Bonds or any other bonds payable from the revenues of the Drinking Water System which bonds are on a parity with the Bonds.

"Credit Provider" means a bank, insurance company, financial institution or other entity providing a Credit Instrument.

"Department" shall mean the Indiana Department of Environmental Management created under IC 13-13-1-1 or its successor.

"Deposit Agreement" shall mean an agreement between the Participant and the Deposit Agreement Counterparty in such form as from time to time determined by the Finance Authority pursuant to which (a) the Participant's Bond Fund (including any reserve account established and created by the Participant pursuant to the Authorizing Instrument related thereto) shall be held by such Deposit Agreement Counterparty and available for payment of the Bonds and any other similar obligations of the Participant that are payable from the Bond Fund regardless whether they are on a parity basis, (b) such Deposit Agreement Counterpart serves as the paying agent for the Bonds and any other such similar obligations of the Participant that are payable from the Bond Fund, and (c) the Participant's Construction Fund may be held by such Deposit Agreement Counterparty upon any Loand disbursement by the Finance Authority to it from time to time.

"Deposit Agreement Counterparty" shall mean the financial institution that enters into a Deposit Agreement with the Participant, which financial institution shall be approved by the Finance Authority and may be replaced by the Finace Authority from time to time.

"Director of Environmental Programs" shall mean the person designated by the Finance Authority as authorized to act as the Director of Environmental Programs (whch deesignation includes such Director's assumption of the duties previously assigned to the Drinking Water SRF Program Representative and the Drinking Water SRF Program Director ) and where not limited, such person's designee.

"Disbursement Agent" shall mean the party disbursing the Loand to or for the benefit of the Participant, which shall be the Trustee unless amounts are held in the Construction Fund, in which case the Disbursement Agent shall thereafter be the Deposit Agreement Counterparty as the part disbursing amounts that are held in the Construction Fund unless otherwise agreed by the Finance Authority.

"Disbursement Request" shall mean a request for a disbursement of the Loand made by an Authorized Representative in such form as the Finance Authority may from time to time prescribe.

"Drinking Water SRF Fund" shall mean the drinking water revolving loan fund as established by IC 5-1.2-10-2.

"Drinking Water SRF Indenture" shall mean the Fourth Amended and Restated Drinking Water SRF Trust Indenture, dated as of September 1st, 2019 between the Finance Authority (as successor by operation of law to the State in all matters related to the Drinking Water SRF Program) and the Trustee, as amended and supplemented from time to time.

"Drinking Water System" shall mean all, or any part of, the system for the provision to the public of water for human consumption through pipes and other constructed conveyances that:

(1) has a least fifteen (15) service connections; or

(2) regularly serves at least twenty-five (25) individuals;

and as further defined and described in IC 13-11-2-177.3 and SRF Policy Guidelines, as amended and supplemented from time ti time.

"Eligible Cost" shall mean and include, whether incurred before or after the date of this Agreement, all costs which have been incurred and qualify for Financial Assistance, including engineering, financing and legal costs related thereto.

"Finance Authority" shall mean the Indiana Finance Authority, a body politic and corporate, not a state agency but an independent instrumentality of the State.

"Finance Authority Bonds" shall mean any Finance Authority State Revolving Fund Program Bonds or other similar obligations of the Finance Authority issued as a part of the Drinking Water SRF Program within the meaning of the Drinking Water SRF Indenture.

"Financial Assistance" shall mean the financial assistance authorized by the Safe Drinking Water Act, including the Loan.

"Fiscal Sustainability Plan" means in connection with a project that provides for the repair replacement, or expansion of an existing Drinking Water System, a plan that is consistent with SRF Policy Guidelines including applicable requirements of the Drinking Water SRF Act and includes (a) and inventory of critical assets that are a part of the Drinking Water System, (b) an evaluation of the condition and performance of inventoried assets or asset groupings; (b) a certification that the Participant has evaluated and will be implementing water and energy conservation efforts as part of the plan; and (d) a plan for maintaining, repairing, and, as necessary, replacing the Drinking Water System and a plan for funding such activities.

"Loan" shall mean the purchase of the Bonds by the Finance Authority to finance the planning, designing, constructing, renovating, improving and expanding of the Participant's Drinking Water System or refinance an existing debt obligation where such debt was incurred and building of such systems began after July 1st, 1993, but does not mean the provision of other Financial Assistance.

"Loan Reduction Payment" shall mean in any circumstances where there is a balance (inclusive of Loan proceeds and any earnings) in the Construction Fund, any action causing such balance to be applied to a reduction in the maximum aggregate amount of the Loan outstanding other than pursuant to regularly scheduled principal payments or optional redemptions applicable to the Bonds. A Loan Reduction Payment shall not be applicable unless Loan amounts are held in the Construction Fund.

"Non-Use Close-out Date" shall mean that date which is the earlier of (a) the first date as of which the full amount of the Loan has been disbursed on a cumulative basis (which shall also be deemed to have occurred when and if such amounts have been deposited in the Participant's Construction Fund) or (b) the date as of which the Participant binds itself that no further Loan disbursements will be made under this Agreement.

"Non-Use Fee" shall mean a fee in an amount determined by the Finance Authority charged to compensate it for costs and expenses within the Drinking Water SRF Program. Such amount shall be the greater of (A) the product of the undrawn balance of the Loan on each applicable Non-Use Assessment Date multiplied by one percent (1%) of (B) One Thousand Dollars ($1,000). Such fee shall apply and be payable under Section 5.09 herein with respect to each Non-Use Assessment Date until the Non-Use Close-Out Date shall occur. A Non-Use Fee shall not be applicable if the full amount of the Loan has been disbursed and deposited in the Participant's Construction Fund by the Non-Use Assessment Date.

"Non-Use Assessment Date" shall mean ________ 1, 20___ and the first day of each sixth (6th) calendar month thereafter unless and until the Non-Use Close-out Date occurs in advance of any such Non-Use Assessment Date.

"Operation and Maintenance" shall mean the activities required to assure the continuing dependable and economic function of the Drinking Water System, including maintaining compliance with primary and secondary drinking water standards, as follows:

(1) Operation shall mean the control and management of the united processes and equipment which make up the Drinking Water System, including financial and personnel management, records, reporting, laboratory control, process control, safety and emergency operation planning and operating activites.

(2) Maintenance shall mean the preservation of the functional integrity and efficiency of equipment and structures by implementing and maintaining systems of preventive and corrective maintenance, including replacements.

"Plans and Specifications" shall mean the information submitted by the Participant that is necessary for the Finance Authority to determine the technical, enconomic and environmental adequacy of the proposed Project.

"Project" shall mean the activites or tasks identified and described in Exhibit A to this Agreement, and incorporated herein, as amended or supplemented by the Participant and consented to by the Finance Authority, for which the Participant may expend the Loan.

"Purchase Account" shall mean the account by that name created by the Drinking Water SRF Indenture and held as part of the Drinking Water SRF Fund.

"Safe Drinking Water Act" shall mean the Safe Drinking Water Act, 42 U.S.C 300f et seq. and other laws, regulations and guidance supplemental thereto, as amended and supplemented from time to time including the 2014 Appropriations Act.

"SRF Policy Guidelines" shall mean guidance of general applicability (as from time to time published, amended and supplemented by the Finance Authority) pertaining to participants utilizing financial assistance in connection with their projects funded in whole or in part through the Drinking Water SRF Program.

"State" shall mean the State of Indiana.

"Substantial Completion of Construction" shall mean the day on which the Finance Authority (or if designated by the Finance Authority, the Department) determines that all but minor components of the Project have been built, all equipment is operational and the Project is capable of functioning as designed.

"System Development Charges" shall mean the proceeds and balances from any non-recurring charges such as tab fees, subsequent connector fees, capacity or contribution fees, and other similar one-time charges applicable to the Drinking Water System that are available for deposit under the Authorizing Instrument.

"Trustee" shall mean The Bank of New York Mellon Trust Company, N.A. Indianapolis, Indiana, in its capacity as trustee or its successor under the Drinking Water SRF Indenture.

"2014 Appropriations Act" shall mean the Consolidated Appropriations Act, 2014 (also known as HR 3457), and other laws, regulations and guidance supplemental thereto (including the Safe Drinking Water Act), as amended and supplemented from time to time.

ARTICLE II

PURPOSE OF BORROWING AND LOAN TERMS

Section 2.01. Amount; Purpose. The Finance Authority agrees to loan an amount not to exceed ____________ Dollars $_______ in aggregate principal amount to the Participant as Financial Assistance to pay for the Eligible Costs, as hereinafter described, of the Project on, and subject to, the terms and conditions contained herein. The Loan shall be used only to pay the following Eligible Costs: (a) eligible planning services for the production of a Preliminary Engineering Report ("Planning"), (b) eligible design services for the production of Plans and Specifications ("Design") and (c) eligible construction costs, including financing and legal costs ("Construction"). The Loan shall be funded solely from available proceeds of the Finance Authority Bonds contained in the Purchase Account or from other sources that the Finance Authority may, in its sole discretion, designate. The Loan is evidenced by the Bonds executed and delivered by the Participant contemporaneously herewith. The Bonds shall be in fully registered form, with the Finance Authority registered as the registered owner. So long as the Finance Authority is the registered owner, the principal of and redemption premium, if any ,and interest on the Bonds shall be paid to the Trustee by a wire transfer referenced as follows: The Bank of New York, ABA XXX XXX XXX, For Credit to XXXXXXX40C, Account Name: Town of Lapel Drinking Water SRF. The Participant agrees to undertake and complete the Project and to receive and expend the Loan proceeds in accordance with this Agreement.

Section 2.02. The Bonds.

(a) Until paid, the Bonds will bear interest at the per annum rate of _____ percent. Such interest shall be calculated on the basis of a 360 day year comprised of twelve 30-day months, and be as provided in IC 5-1.2-10-15 and -20. Interest, if any, on the Bonds will be payable on January 1st and July 1st of each year, commencing ________ 1, 20__. The Bonds will be in the aggregate principal amount of ___________ Dollars. Suject to Section 2.05 and 2.06 herein, the Bonds will mature on January 1st of each of the years set forth in, and at the principal amount set opposite each such month and year set forth in the schedule contained in the attached Exhibit B to this Agreement (which is hereby incorporated by reference); provided, however, notwithstanding the foregoing or the terms of the Bonds to the contrary, no maturity of Bonds shall extend beyond the date which is thirty-five (35) years after the date of this Agreement. If the maturity date for any Bonds is beyond such date, unless otherwise agreed to, such Bonds, together with accrued and unpaid interest thereon, will be due and payable on such date.

(b) The Bonds will be subject to redemption by the Participant as provided in the Authorizing Instrument; provided however that in no event shall the Participant exercise any provision contained in the Authorizing Instrument or the Bonds permitting a redemption of the Bonds at the options of the Participant unless and until such has been consented by the Authority. The Loan, and the Bonds evidencing it, will be subject to payment by the Participant as provided in this Agreement.

(c) The form and other terms of the Bonds will be in conformity with the Authorizing Instrument.

(d) The additional terms contained in the attached Exhibit D are applicable to this Loan (as and to the extent set forth in Exhibit D) to the same effect as if such were set forth in this section.

Section 2.03. Disbursement Conditions. Each of the following shall be a condition precedent to the disbursement of the Loan or any portion thereof (including from the Construction Fund):

(a) (1) With respect to procurement of professional services related to the Project to be paid from Loan proceeds, the Participant shall have complied with applicable State law and SRF Policy Guidelines. (2) With respect to procurement of all other goods and services related to the Project to be paid from Loan proceeds, the Participant shall have complied with IC 36-1-12 and SRF Policy Guidelines.

(b) No representation, warranty or covenant of the Participant contained in this Agreement or in any paper executed and delivered in connection with the transactions contemplated by this Agreement shall be false or inaccurate in any material respect.

(c) The Participant shall undertake and faithfully perform each of its obligations, agreements and covenants contained in this Agreement, the Authorizing Instrument and the Bonds.

(d) There shall be available to the Finance Authority uncommitted funds in an amount sufficient to satisfy the Finance Authority's obligations hereunder from the proceeds of Finance Authority Bonds in the Purchase Account or from other sources that the Finance Authority may, in its sole discretion, designate; provided however, once Loan proceeds have been deposited in the Construction Fund, such condition shall be deemed satisfied.

(e) The Participant shall have undertaken all actions necessary to comply with and satisfy the conditions and requirements for a Loan secured with money made available from the Drinking Water SRF Fund as set forht in federal and State statutes, rules and regulations, including IC 5-1.2-10, SRF Policy Guidelines, the Safe Drinking Water Act and 40 C.F.R Part 35.

(f) Prior to making any Loan disbursement to pay any Construction costs, the Project shall have been approved by the State's Historical Preservation Officer in a manner consistent with the policies  and practicies of the Drinking Water SRF Program (the "Historical Preservation Approval"). Notwithstanding any provision of this Agreement to the contrary, in the event a Historical Preservation Approval has not been given within four (4) months after the date of this Agreement, the Finance Authority may, in its sole discretion, (i) reduce the aggregate amount of the Loan to the amount then disbursed and outstanding under this Agreement and (ii) if any amounts are held in the Construction Fund, require a Loan Reduction Payment pursuant to Section 2.06 herein as if it were a date tha was three (3) years after the dated date of the Bonds. Upon giving notice to the participant of such action, no further Loan disbursement (including from the Construction Fund) may be made under this Agreement unless consented to by the Finance Authority.

(g) In the event the Bonds are payable from rates and charges of the Drinking Water System and if requested by the Finance Authority, the Participant shall provide evidence satisfactory to the Finance Authority demonstrating that such rates and charges are at a level adequate to produce and maintain sufficient net revenue after providing for the proper Operation and Maintenance of the Drinking Water System, on a proforma basis consistent with SRF Policy Guidelines, to provide 1.25x coverage on all obligations of the Drinking Water System (including the Bonds).

Section 2.04. Disbursement Procedures. Loan proceeds (including any held from time to time in the Construction Fund) shall be disbursed to the Participant by the Disbursement Agent for actual Eligible Costs incurred with respect to the Project. The Finance Authority may , in its discretion, cause Loan disbursements to be made (a) directly to the person or entity identified in the Disbursement Request to whom payment is due, or (b) if advised in writing by the Participant that IC [36-1-12-14 or a similar law applies to the Project, to the Participant for purposes of collecting retainage, or some combination thereof. Any Loan proceeds in excess of the amount subject to retainage controlled by the Participany will be immediately remitted to the person or enttiy to whom payment is due, no later than three (3) Business Days after receipt or the date such Loan proceeds are no longer subject to retainage. The Finance Authority may, in its discretion, cause Loan disbursements to be made from time to time, in whole or in part, to the Participant's Construction Fund for disbursement consistent with this Agreement. Loan disbursements shall not be made more frequently than monthly and shall only be made following the submission of a Disbursement Request to the Finance Authority. Disbursement Requests shall be approved by the Director of Environmental Programs prior to submission to the Disbursement Agent for a Loan disbursement. Disbursement Requests shall be numbered sequentially, beginning with the number 1.

Section 2.05. Effect of Disbursements. Loan disbursements made to or for the benefit of the Participant shall be deemed to be a purchase of the Bonds in such amounts and with such maturities as achieves as level debt service as practicable, and with no maturity longer than the original maturity schedule; provided that any principal payments originally scheduled under Section 2.02 herein as being due prior to one year after Substantial Completion of Construction shall first be deemed to be a purchase of the Bonds in order of maturity. The deposit of Loan proceeds in the Construction Fund shall be deemed to be a purchase of the Bonds. Interest on the Loan commences on disbursement of the Loan to or for the benefit of the Participant (including any amounts disbursed to the Construction Fund) by the Finance Authority and the Bonds shall be deemed to be purchased in the full amount thereof. Each disbursement (including any amounts disbursed from the Construction Fund) shall be made pursuant to a Disbursement Request. In the event any Loan disbursement (including any amounts disbursed from the Construction Fund) shall be made in excess of Eligible Costs, such excess disbursements shall be made immediately paid by the Participant to the Disbursement Agent (and if made from any amounts held in the Construction Fund, shall be immediately deposited by the Participany into such Construction Fund) and thereafter may, subject to the terms and conditions set forth in this Agreement, be applied thereafter to pay Eligible Costs of the Project by the Participant.

Section 2.06. Acknowledgement of Amount of Loan; Final Disbursement. (a) Within 30 days after any request by the Finance Authority from time to time, the Participant shall execute and deliver to the Finance Authority an acknowledgment in the form prescribed by the Finance Authority which acknowledges the outstanding principal of and interest on the Bonds. Unless the Finance Authority consents in writing, no Loan disbursement shall be made more than one year after Substation Completion of Construction. After Substantial Completion of Construction, upon the request of the Finance Authority, the Participant shall replace, at its expense, the Bonds with substitutes issued pursuant to the Authorizing Instrument to evidence the outstanding principal under the Loan.

(b) In the event there remains a balance (inclusive of Loan proceeds and any earnings) in the Construction Fund on the date that is the earlier of (i) one year after Substation Completion of Construction or (ii) three (3) years after the dated date of the Bonds (or in either such circumstance, such later date as the Finance Authority may approve in its discretion), the Participant agrees to make a Loan Reduction Payment to the Finance Authority within 10 days after any Finance Authority written demand. Any Loan Reduction Payment shall be applied to pay principal in such amounts and with such maturities as achieves as level debt service as practicable consistent with methodology prescribed in the Authorizing Instrument and as originally applied to the Bonds, and with no maturity longer than the original maturity schedule; provided that any principal payments originally scheduled under Section 2.02 herein as being due prior to the Loan Reduction Payment shall be unaffected by such payment. If the Authorizing Instrument permits the Participant to apply Bond proceeds to pay interest accruing on or before Substantial Completion of Construction, the Participant may seek to reimburse itself for such interest costs it has paid pursuant to a Disbursement Request provided. If the Participant fails to make such Loan Reduction Payment by such date, the Finance Authority and Deposit Agreement Counterparty are authorized to cause any balance held in the Construction Fund to be so applied without further direction and authorization from the Participant. Notwithstanding the foregoing, if requested by the Finance Authority, in lieu of the Participant making a Loan Reduction Payment, the Finance Authority may in its discretion require the Participant to hold any remaining balance (inclusive of Loan proceeds and any earnings) in the Construction Fund until such amounts may be applied on the first optional redemption date applicable to the Bonds, and upon any such request, the Participant agrees to cause such amounts to be so held and applied on such date.

(End of Article II)

 

 

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS

OF THE PARTICIPANT

Section 3.01. Planning, Design and Construction Covenants. The Participant hereby covenants and agrees with the Finance Authority that the Participant will:

(a) Provide information as requested by the Finance Authority to determine the need for, or to complete any necessary, environmental review or analysis.

(b) Comply with the procurement procedures and affirmative action requirements contained in SRF Policy Guidelines in the Planning, Design and Construction of the Project to the extent that such are to be paid from Loan proceeds.

(c) With respect to prime and first tier contract awards, report minority and women business enterprise utilization in the Planning, Design and Construction of the Project, to the extent that such are to be paid from Loan proceeds, by executing and delivering Agency Form SF 5700-52 to the Finance Authority whenever any agreements or subagreements are awarded. (These reports must be submitted on regular reporting cycles consistent with SRF Policy Guidelines commencing after such agreement or subagreement is awarded.)

(d) Comply with all applicable federal, State and local statutes, rules and regulations relating to the acquisition and construction of the Drinking Water System.

(e) In the event COnstruction is to be paid from Loan proceeds, prior to an award of any contract for Construction of the Project, obtain a construction permit from the Department and receive the written approval of the Finance Authority of the Preliminary Engineering Report.

(f) Obtain the property rights necessary to construct the Drinking Water System and, in procuring any such rights comply with federal and State law.

(g) In the event Construction is to be paid from Loan proceeds, comply with the federal Davis-Bacon Act, codified at 40 USC 276a-276-5 unless separately waived by the Finance Authority.

(h) In the event Construction is to be paid from Loand proceeds, execute and deliver to the Finance Authority Agency Form 4700-4 ("Pre-award Compliance Review Report for Wastewater Treatment Construction Grants") and such other forms as may be required by the Clean Water Act or SRF Policy Guidelines.

(i) In the event Construction is to be paid from Loan proceeds, follow guidance issued by the Finance Authority in procuring contracts for Construction, including (1) submission to the Finance Authority of Project change orders, (2) obtaining approval from the Director of Environmental Programs of any Project change order which significantly changes the scope or Design of the Project or, when taking into account other change orders and contracts, are reasonably expected to result in expenditures in an amount greater than the Loan, (3) receiving approval from the Director of Environmental Programs prior to the award of any contract for Construction and (4) receiving authorization from the Director of Environmental Programs prior to initiating procurement of Construction of the Project.

(j) In the event Construction is to be paid from Loan proceeds, before awarding Construction contracts, receive approval of the Directory of Environmental Programs for the user charge system (including any use ordinance and interlocal agreement) associated with the Project.

(k) In the event Construction is to be paid from Loan proceeds, cause the Project to be constructed in accordance with the Preliminary Engineering Report and the Plans and Specifications, using approved contract papers.

(l) Permit the Finance Authority and its agents to inspect from time to time (1) the Project, (2) the Drinking Water System and (3) the books and other financial records of the Drinking Water System, including the inspections described in SRF Policy Guidelines. Construction contracts shall provide that the Finance Authority or its agents wll have access to the Project and the work related thereto and that the Participant's contractor will provide proper facilities for such access and inspection. All files and records pertaining to the Project shall be retained by the Participant for at least six years after Substantial Completion of Construction.

(m) Upon Substantial Completion of Construction and when requested by the Finance Authority, provide audited reports to the Finance Authority to permit the Finance Authority to determine that the Loan proceeds have been used in compliance with this Agreement.

(n) In the event Construction is to be paid from Loan proceeds, within one year of Substation Completion of Construction, consistent with SRF Policy Guidelines, certify to the Finance Authority that the Project meets performance standards, or if not met, (1) submit to the Finance Authority (or if directed by the Finance Authority, to the Department) a corrective action plan and (2) promptly and diligently undertake any corrective action necessary to bring the Project into compliance with such standards.

(o) In the event Construction is to be paid from Loan proceeds, within one year of Substation Completion of Construction, provide as-built plants for the Project to the Finance Authority (or if directed by the Finance Authority, to the Department).

Section 3.02. General Covenants. The Participant hereby covenants and agrees with the Finance Authority that the Participant will:

(a) Comply with all applicable federal, State and local statutes, rules and regulations relating to Operation and Maintenance.

(b) (1) Own, operate and maintain the Project and the Drinking Water System for their useful life, or cause them to be operated and maintained for their useful life; (2) at all times maintain the Drinking Water System in good condition and operate it in an efficient manner and at a reasonable cost; and (3) not sell, transfer, lease or otherwise encumber the Drinking Water System or any portion thereof or any interest therein without the prior written consent of the Finance Authority.

(c) Obtain and maintain the property rights necessary to operate and maintain the Drinking Water System, and in procuring any such rights, comply with federal and State law.

(d) Acquire and maintain insurance coverage acceptable to the Finance Authority, including fidelity bonds, to protect the Drinking Water System and its operations. All insurance shall be placed with responsibly insurance companies qualified to do business under State law. Insurance proceeds and condemnation awards shall be used to replace or repair the Drinking Water System unless the Finance Authority consents to a different use of such proceeds or awards.

(e) Establish and maintain the books and other financial records of the Project (including the establishment of a separate account or subaccount for the Project) in accordance with (1) generally accepted governmental accounting principles, as promulgated by the Government Accounting Standards Board (including GASB No. 34 standards relating to the reporting of infrastructure) and (2) the rules, regulations and guideance of the State Board of Accounts.

(f) Provide to the Finance Authority such periodic financial and environmental reports as it may request from time to time, including (1)  annual operating and capital budgets and (2) such other information requested or required of the Finance Authority or the Participant by the Agency.

(g) Provide to the Finance Authority audited financial statements of the Participant inclusive of the activities of the Drinking Water System, commencing with financial statements for a calendar year period that ends not more than two (2) years after the date of this Agreement (and for each calendar year period that ends every two (2) years thereafter until the Loan has been repaid), which audit (i) shall have been performed by the Indiana State Board of Accounts or by an independent public accountant and (ii) shall be submitted to the Finance Authority no later than nine (9) months following the end of the calendar year period to which such audit pertains.

(h) Develop, certify, implement and maintain an Asset Management Program (including a Fiscal Sustainability Plan) of the Participant that meets SRF Policy Guidelines including applicable requirements of the Drinking Water SRF Act. The Participant acknowledges that its agreement to develop, certify, implement and maintain an Asset Management Program (including a Fiscal Sustainability Plan) as provided in this subsection was a condition of the Loan. Unless the Participant's Asset Management Program (including a Fiscal Sustainability Plan) was certified prior to the date of this Agreement, the Participant agrees to submit a certification (on and in a form as provided by the Finance Authority) related to the Participant's Asset Management Program (including a Fiscal Sustainability Plan) prior to submitting its request for a final Loan disbursement related to the Project. Over the term of the Loan, the Participant further agrees to continue to update, implement and maintain the Participant's Asset Management Program (including a Fiscal Sustainability Plan) to assure it has the financial, managerial, technical, and legal capability to operate and maintain its Drinking Water System consistent with SRF Policy Guidelines including applicable requirements of the Drinking Water SRF Act.

(i) Provide notice to the Finance Authority under the circumstances contemplated, and undertake inspections as required, by SRF Policy Guidelines.

(j) (1) Establish and maintain just and equitable rates and charges for the use of and the service rendered by the Drinking Water System, to be paid by the owner of each and every lot, parcel of real estate or building that is connected with and uses the Drinking Water System, or that in any way uses or is served by the Drinking Water System, (2) establish, adjust and maintain rates and charges at a level adequate to produce and maintain sufficient revenue (when determined including user and other charges, fees, income or revenues available to the Participant, provided that to the extent permitted by law System Development Charges shall be excluded when determining if such are sufficient) to provide for the proper Operation and Maintenance of the Drinking Water System, to comply with and satisfy all covenants contained herein and to pay all obligations of the Drinking Water System and of the Participant with respect thereto, and (3) if and to the extent Bonds are payable from property taxes, levy each year a special ad valorem tax upon all property located in the boundaries of the Participant, to pay all obligations of the Participant with respect thereo.

(k) If the Bonds are payable from the revenues of the Drinking Water System, not borrow any money, enter into any contract or agreement or incur any other liabilities in connection with the Drinking Water System without the prior written consent of the Finance Authority if such undertaking would involve, commit or use the revenues of the Drinking Water System; provided that the Participant may authorize and issue additional obligations, payable out of the revenues of its Drinking Water System, ranking on a parity with the Bonds for the purpose of financing the cost of future additions, extensions and improvements to the Drinking Water System, or to refund obligations of the Drinking Water System, subject to the conditions, if any, in the Authorizing Instrument.

(l) Comply with the Civil Rights Act of 1964, as amended, 42 USC Section 200d et seq., the Age Descrimination Act, as amended, Public Law 94-135, Section 504 of the Rehabilitation Act of 1973, as amended (including Executive Orders 11914 and 11250), 29 USC Section 794, Section 13 of the Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500, Executive Order 11246 regarding equal employment opportunity and Executive Orders 11625 and 12138.

(m) Undertake all actions necessary to investigate all potential, material claims which the Participant may have against other persons with respect to the Drinking Water System and the Project and take whatever action is necessary or appropriate to (1) recover on any actionable, material claims related to the Project or the Planning, Design or Construction thereof, (2) meet applicable Project performance standards and (3) otherwise operate the Drinking Water System in accordance with applicable federal, State and local law.

(n) Not modify, alter, amend, add to or rescind any provision of the Authorizing Instrument without the prior written consent of the Finance Authority.

(p) In any year in which total expenditures of Federal financial assistance received from all sources exceeds $750,000 the Participant shall comply with the Federal Single Audit Act (SAA) of 1984, as amended by the Federal Single Audit Act Amendments 1996 (scc 2 CFR 200 Subpart F) and have an audit of their use of Federal financial assistance. The Participant agrees to provide the Finance Authority with a copy of the SAA audit within 9 months of the audit period.

(q) Inform the Finance Authority of any findings and recommendations pertaining to the SRF program contained in an audit of 2 CFR 200 Subpart F (a/k/a "Super Circular") matters in which SRF Federal financial assistance was less than $750,000.

(r) Initiate within 6 months of the audit period corrective actions for those audit reports with findings and recommendations that impact the SRF financial assistance.

(s) Notwithstanding anything in the Authorizing Instrument related to the Bonds (or in any authorizing instrument related to any other outstanding bonds payable from the revenues of the Drinking Water System whcih are on a parity with the Bonds) to the contrary, in the event any Credit Provider that has provided a Credit Instrument fails to be rated on a long term basis at least "A-/A3" by Standard & Poor's Ratings Services, a Division of the McGraw-Hill Companies, and Moody's Investors Service, Inc., and their successors (such Credit Instrument, a "Disqualified Instrument"), within 12 months of such failure (or pursuant to such other schedule as may be approved by the Finance Authority), the Participant shall cause cash (or a replacement Credit Instrument from a Credit Provider that is rated on a long term basis at least "AA-/Aa3" by Standard & Poor's Rating Services, a Division of the McGraw-Hill Companies, and Moody's Investors Service, Inc., and their successors)(or some combination thereof) in an aggregate amount equal to the stated credit available under the Disqualified Instrument(s) to be deposited in the related reserve account(s) in lieu of such Disqualified Instrument(s). No Disqualified Instrument shall be included as part of the reserve balance which satisfies any such reserve requirement under any such authorizing instrument. Nothing in this subsection shall waive or modify additional requirements contained in any such authorizing instrument (including the Authorizing Instrument related to the Bonds); the provisions of this subsection and any such authorizing instrument (including the Authorizing Instrument related to the Bonds) shall both be required to be met. Unless and until notice shall be given by the Finance Authority to the Participant, a surety policy inssued by MBIA Insurance Corporation or Financial Guaranty Insurance Company that has been reinsured by National Public Finance Guarantee Corporation (formerly known as MBIA Insurance Corp. of Illinois) shall not be treated as a Disqualified Instrument.

(t) (i) comply with Title 40 CFR Part 34 (New Restrictions and Lobbying) and the Byrd Anti-Lobbying Amendment ("Lobbying Restrictions"); (ii) provide certifications and disclosures related to Lobbying Restrictions in a form and manner as may from time to time be required by SRF Policy Guidelines or the Safe Drinking Water Act including without limitation the Lobbying Restrictions; and (iii) pay any applicable civil penalty required by the Lobbying Restrictions as may be applicable to making a prohibited expenditure under Title 40 CFR Part 34, or failure to file any required certification or lobbying disclosures. The Participant understands and acknowledges that pursuant to such Lobbying Restrictions, the make of any such prohibited expenditure, or any such failure to file or disclose, is subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure or failure.

(u) Comply with all federal requirements applicable to the Loan (including those imposed by the 2014 Appropriations Act and related SRF Policy Guidelines) which the Participant understands includes, among other, requirements that all of the iron and steel products used in the Project are to be produced in the United States ("American Iron and Steel Requirement") unless (i) the Participant has requested and obtained a waiver from the Agency pertaining to the Project or (ii) the Finance Authority has otherwise advised the Participant in writing that the American Iron and Steel Requirement is not applicable to the Project.

(v) Comply with all record keeping and reporting requirements under the Safe Drinking Water Act, including any reports required by a Federal agency or the Finance Authority such as performance indicators of program deliverables, information on costs and project progress. The Participant understands that (i) each contract and subcontract related to the Project is subject to audit by appropriate federal and state entities and (ii) failure to comply with the Safe Drinking Water Act and this Agreement may be a default hereunder that results in a repayment of the Loan in advance of the manturity of the Bonds and/or other remedial actions.

(w) Whenever from time to time requested by the Finance Authority, submit evidence satisfactory to the Finance Authority demonstrating that the Participant's rates and charges are at a level adequate to produce and maintain sufficient net revenue after providing for the proper Operation and Maintenance of the Drinking Water System, on a proforma basis consistent with SRF Policy Guidelines to provide 1.25x coveral on all obligations of the Drinking Water System (including the Bonds) and, in the event the Participant's rates and charges are insufficient to demonstrate such coverage, then to the extent permitted by law annually enact an increase in its rates and carges reasonably designed to be consistent with SRF Policy Guidelines regarding such coverage.

(x) Notwithstanding any provision of the Authorization Instrument to the contrary, not make any payment in lieu of propery taxes from any account of the Drinking Water System (i) if the Finance Authority provides norice to the Participant that the Finance Authority has determined in its reasonable discretion that such a transfer adversely affects the Finance Authority and (ii) more frequently than semiannually if the Authority provides notice to the Participant so requiring such a limitation on frequency.

(y) Comply with all requirements of this Agreement applicable to the Loan (including those imposed by the attached exhibit D).

Section 3.03. Representations and Warranties of the Participant. After due investigation and inquiry, the Participant hereby represents and warrants to the Finance Authority that:

(a) The Participant is duly organized and existing under State law, and constitutes a "political subdivision" within the meaning of IC 5-1.2-2-57 and a "participant" within the meaning of IC 5-1.2-2-54. The Project and the Drinking Water System are subject to IC 8-1.5.

(b) The Participant and its Drinking Water System are not subject to the jurisdiction of the Commission under IC 8-1-2 or any other applicable law and the Project and the Bonds are not subject to the Commission's review and approval requirements. If the Participant or its Drinking Water System is subject to the jurisdiction of the Commission under IC 8-1-2 or any other applicable law, the Commission has reviewed and approved the Project and the issuance of the Bonds and no additional approvals or consents are required to be obtained from the Commission related thereo.

(c) The Participant has full power and authority to adopt the Authorizing Instrument, enter into this Agreement and issue the Bonds and perform its obligations hereunder and thereunder.

(d) By all required action, the Participant has duly adopted the Authorizing Instrument and authorized the execution and delivery of this Agreement, the Bonds and all other papers delivered in connection herewith.

(e) Neither the execution of, nor the consummation of the transaction contemplated by, this Agreement nor the compliance with the terms and conditions of any other paper referred to herein, shall conflict with, result in a breach of or constitute a default under, any indenture, mortgage, lease, agreement or instrument to which the Participant is a party or by which the Participant or its property, including the Drinking Water System, is bound or any law, regulation, order, writ, injunction or decree of any court of governmental agency or instrumentality having jurisdiction.

(f) There is no litigation pending or, to the knowledge of the Participant, upon investigation, threatend that (1) challenges or questions the validity or binding effect of this Agreement, the Authorizing Instrument or the Bonds or the authority or ability of the Participant to execute and deliver this Agreement or the Bonds and perform its obligations hereunder or thereunder or (2) would, if adversely determined, have a significant adverse effect on the ability of the Participant to meet its obligations under this Agreement, the Authorizing Instrument or the Bonds.

(g) The Participant has not at any time failed to pay when due interest or principal on, and it is not now in defulat under, any warrant or other evidence of obligation or indebtedness of the Participant.

(h) All information furnished by the Participant to the Finance Authority or any of the persons representing the Finance Authority in connection with the Loan or the Project is accurate and complete in all material aspects including complaince with the obligations requirements and undertakings imposed upon the Participant pursuant to this Agreement.

(i) The Participant has taken or will take all proceedings required by law to enable it to issue and sell the Bonds as contemplated by this Agreement.

(j) For any outstanding bonds payable from the revenues of the Drinking Water System which are on a parity with the Bonds, each Credit Provider, if any, that has provided a Credit Instrument is at least rated on a long term basis "A-/A3" long term by Standard & Poor's Ratingd Services, a Division of the McGraw-Hill Companies and Moody's Investors Service, Inc., and their successors, except as represented and set forth in Exhibit C attached thereto (and with respect to which true, accurate and complete copies of each such Credit Instrument have been delivered to the Finance Authority).

Each of the foregoing representations and warranties will be deemed to be have been made by the Participant as of the date of this Agreement and as of the date of any disbursement of Loan proceeds (including from the Construction Fund). Each of the foregoing representations and warranties shall survive the Loan disbursements regardless of any investigation or investigations the Finance Authority may have undertaken.

Section 3.04. Covenants Regarding Assignment. The Participant acknowledges that the Finance Authority may pledge, sell or assign the Bonds or cause the Bonds to be pledged, sold or assigned, and certain of its rights related thereo, as permitted pursuant to Section 5.02 herein. The Participant covenants and agrees to cooperate with and assist in, at its expense, any such assignment. Within 30 days following a request by the Finance Authority, the Participant covenants and agrees with the Finance Authority that the Participant will, at its expense, furnish any information, financial or otherwise, with respect to the Participant, this Agreement, the Authorizing Instrument and the Bonds and the Drinking Water System as the Finance Authority reasonably requests in writing to facilitate the sale or assignment of the Bonds.

Section 3.05. Nature of Information. All information furnished by the Participant to the Finance Authority or any person representing the Finance Authority in connection with the Loan or the Project may be furnished to any other person the Finance Authority, in its judgment, deems necessary or desirable in its operation and administration of the Drinking Water SRF Program.

Section 3.06. Tax Covenants. The Participant hereby covenants that it will not take, or cause or permit to be taken by it or by any party under its control, or fail to take or cause to permit to be taken by it or by any party under its control, any action that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the Bonds pursuant to Section 103 of the Code. The Participant further covenants that it will not do any act or thing that would cause the Bonds to be "private activity bonds" within the meaning of Section 141 of the Code or "arbitrage bonds" within the meaning of Section 148 of the Code. In furtherance and not in limitation of the foregoing, the Participant shall take all action necessary and appropraite to comply with the arbitrage rebate requirements under Section 148 of the Code to the extent applicable to the Participant or the Bonds, including accounting for and making provision for the payment of any and all amounts that may be required to be paid to the United States of American from time to time pursuant to Section 148 of the Code.

Section 3.07. Non-Discrimination Covenant. Pursuant to and with the force and effect set forth in IC 22-9-1-10, the Participant hereby covenants that the Participant, and its contractor and subcontractor for the Project, shall not discriminate against any employee or applicant for employment, to be employed in the performance, of this Agreement, with respect to the hire, tenure, terms, conditions or privileges of employment, or any matter directly or indirectly related to employment, because of race, color, religion, sex, disability, national origin or ancestry.

(End of Article III)

ARTICLE IV - DEFAULTS

Section 4.01. Remedies. The Finance Authority's obligation to make a disbursement under the Loan to the Participant hereunder may be terminated at the option of the Finance Authority, without giving any prior notice to the Participant, in the event: (a) the Participant fails to undertake or perform in a timely manner any of its agreements, covenants, terms or conditions set forth herein or in any paper entered into or delivered in connection herewith (including the Authorizing Instrument); or (b) any representation or warranty made by the Participant as set forth herein or in any paper entered into or delivered in connection herewith is materially false or misleading. Any such event shall constitute an event of default and in addition to any other remedies at law or in equity, the Finance Authority may (x) require a Loan Reduction Payment pursuant to Section 2.06 herein as if it were a date that was three (3) years after the dated date of the Bonds, (y) in the event a Deposit Agreement has not previously been entered into related to the Participant's Bond Fund (including any related reserve), require the Participant to enter into a Deposit Agreement (or to modify any such previously entered Deposit Agreement) and the Participant shall enter into (or modify) such an agreement within 5 days after any such demand and (z) without giving any prior notice, declare the entire outstanding principal amount of the Loan, together with accrued interest thereon, immediately due and payable.

Section 4.02. Effect of Default. Failure on the part of the Finance Authority in any instance or under any circumstance to observe or perform fully any obligation assumed by or imposed upon the Finance Authority by this Agreement or by law shall not make the Finance Authority liable in damages to the Participant or relieve the Participant from paying any Bond or fully performing any other obligation required of it under this Agreement or the Authorizing Instrumentl provided, however, that the Participant may have and pursue any and all other remedies provided by law for compelling performance by the Finance Authority of such obligation assumed by or imposed upon the Finance Authority. The obligations of the Finance Authority hereunder do not create a debt or a liability of the Finance Authority or the State under the constitution of the State or a pledge of the faith or credit of the Finance Authority or the State and do not directly, indirectly or contingently, obligate the Finance Authority or the State to levy any form of taxation for the payment thereof or to make any appropriation for their payment. Neither the Finance Authority or the State, nor any agent, attorney, member or employee of the Finance Authority or the State shall in any event be liable for damages, if any, for the nonperformance of any obligation or agreement of any kind whatsoever set forth in this Agreement.

(End of Article IV)

ARTICLE V

MISCELLANEOUS

Section 5.01. Citations. Any reference to a part, provision, section or other reference description of a federal or State statute, rule or regulation contained herein shall include any amendments, replacements or supplements to such statutes, rules or regulations as may be made effective from time to time. Any reference to a Loan disbursement shall include any disbursement from the Construction Fund. Any use of the term "including" herein shall not be a limitation as to any provision herein contained but shall mean and include, without limitation, the specific matters so referenced.

Section 5.02. Assignment. Neither this Agreement, nor the Loan or the proceeds thereof may be assigned by the Participant without the prior written consent of the Finance Authority and any attempt at such an assignment without such consent shall be void. The Finance Authority may at its option sell or assign all or a portion of its rights and obligations under this Agreement, the Authorizing Instrument, and the Bonds to an agency of the State or to a separate body corporate and politic of the State or to a trustee under trust instrument to which the Finance Authority, the State or any assignee is a beneficiary or part. The Finance Authority may at its option pledge or assign all or a portion of its rights under this Agreement, the Authorizing Instrument, and the Bonds to any person. The Participant hereby consents to any such pledge or assignment by the Finance Authority. This Agreement shall be binding upon and inure to the benefit of any permitted secured party, successor and assign.

Section 5.03. No Waiver. Neither the failure of the Finance Authority nor the delay of the Finance Authority to exercise any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other further exercise of any other right, power or privilege.

Section 5.04. Modifications. No change or modification of this Agreement shall be valid unless the same in in writing and signed by the parties hereto.

Section 5.05. Entire Agreement. This Agreement contained the entire agreement between the parties hereto and there are no promises, agreements, conditions, undertakings, warranties and representations, either written or oral, expressed or implied between the parties hereto other than as herein set forth or as may be made in the Authorizing Instrument and the other papers delivered in connection herewith. In the event there is a conflict between the terms of this Agreement and the Authorizing Instrument, the terms of this Agreement shall control. It is expressly understood and agreed that except as otherwise provided herein this Agreement represents an integration of any and all prior and contemporaneous promises, agreements, conditions, undertakings, warranties, and representations between the parties hereto.

Section 5.06. Execution of Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be executed by the Finance Authority and the Participant, and all of which shall be regarded for all purposes as one original and shall constitute one and the same instrument.

Section 5.07. Severability of Invalid Provisions. If any one or more of the covenants or agreements provided in this Agreement on the part of the Finance Authority or the Participant to be performed shall be deemed by a court of competent jurisdiction to be contrary to law or cause the Bonds to be invalid as determined by a court of competent jurisdiction, then such covenant or covenants or agreement or agreements shall be deemed severable from the remaining covenants and agreements and waived and shall in no way affect the validity of the other provisions of this Agreement.

Section 5.08. Notices. All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally or sent or transmitted to the appropriate destination as set forth below in the manner provided for herein. Notice to the Finance Authority shall be addressed to: 

Indiana Finance Authority
SRF Programs
100 North Senate, Room 1275
Indianapolis, Indiana 46204
Attention: Director of Environmental Programs

or at such other address(es) or number(s) and to the attention of such other person(s) as the Finance Authority may designate by notice to the Participant. Notices to the Participant shall be addressed to:

Town of Lapel
825 N Main Street
Lapel, Indiana
Attention: Clerk-Treasurer

or at such other address(es) or number(s) and to the attention of such other person(s) as the Participant may designate by notice to the Finance Authority. Any notice hereunder shall be deemed to have been served or given as of (a) the date such notice is personally delivered, (b) three (3) Business Days after it is mailed U.S. mail, First Class postage prepaid, (c) one (1) Business Day after it is sent on such terms by Federal Express or similar next-day courier, or (d) the same day as it is sent by facsimile transmission with telephonic confirmation of receipt by the person to whom it is sent.

Section 5.09. Expenses. The Participant covenants and agrees to pay (a) the fees, costs and expenses in connection with making the Loan, including issuing the Bonds and providing the necessary certificates, documents and opinions required to be delivered therewith; (b) the fees, costs and expenses in connection with making and administering the Loan; (c) the costs and expenses of complying with its covenants made herein; and (d) any and all costs and expenses, including attorneys' fees, incurred by the Finance Authority in connection with the enforcement of this Agreement, the Authorizing Instrument and the Bonds in the event of the breach by the Participant of or a default under this Agreement, the Authorizing Instrument or the Bonds Notwithstanding clause (b) above, the Participant shall not be obligated to pay any of the fees, costs and expenses in connection with administering the Loan except as follows: (1) the Finance Authority may request and the Participant shall promptly pay (no later than the date first above written), a closing fee in connection with the Loan in an amount determined by the Finance Authority, but not exceeding #1,000, which may not be paid from a Loan disbursement; (2) the Finance Authority may request and the Participant shall promptly pay (no later than thirty (30) days after any request) , an annual administrative fee in connection with the Loan in an amount determined by the Finance Authority, but not exceeding $1,000, which may not be paid from a Loan disbursement; (3) the Finance Authority may request and the Participant shall promptly pay (not later than thirty (30) days after any request), a Non-Use Fee in connection with the Loan, which may not be paid from a Loan disbursement; (4) for so long as the Finance Authority is the registered owner of the Bonds, at the direction of the Finance Authority, the interest rate on the Bonds may be adjusted to lower the interest rate on the Bonds, and the difference between the amount payable as the original rate on the Bonds and the lower rate shall be deemed an additional administrative fee in connection with the Drinking Water SRF Program; and (5) the Participant shall only be obligated to pay fees, costs and expenses of the Finance Authority's counsel and financial advisers in connection with making the Loan up to $10,000, which may be paid from a Loan disbursement.

Section 5.10. Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Indiana.

Section 5.11. Term. This Agreement shall terminate at such time as the Participant has fully met and discharged all of its obligations hereunder, which term may extend beyond the final payment of the Bonds or provision for the payment of the Bonds pursuant to the Authorizing Instrument.

Section 5.12. Non-Collusion. The undersigned attests, subject to the penalties of perjury, that he/she is an authorized officer or representative of the Participant, that he/she has not, nor has any other officer or representative of the Participant, directly or indirectly, to the best of the undersigned's knowledge, entered into or offered to enter into any combination, collusion or agreement to receive pay, and that the undersigned has not received or paid any sum of money or other consideration or is a payment to lawyers, accountants and engineers by the Participant related to customary services rendered in connection with the Loan.

Section 5.13. Federal Award Information. The Catalogue of Federal Domestic Assistance ("CFDA") Number for the Authority's Drinking Water SRF Program is 66.648 and the Federal Agency & Program Name is "US Environmental Protection Agency Capitalization Grant for Drinking Water State Resolving Funds".

(End of Article V)

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers or officials, all as of the date first above written.

 

 

EXHIBIT A

The Project consists of the following improvements to the Participant's Drinking Water System:

  • State Road 13 supply well improvements, including installation of VFD, chemical cleaning, and pump/motor overhaul;
  • Ford Street supply well improvements, including building upgrades, installation of VFD, chemical cleaning, pump replacement, and upgrade well discharge piping;
  • Hydrogeological investigation for future well location;
  • Abandon remaining well that is out of service;
  • Water treatment plant improvements, including upsized chlorine gas system and scrubber, added chlorinator and pre-filtration injection point; new polymer and sodium permanganate feed systems; new chemical storage and feed building; upgraded filter media to both sand and anthracite; new raw water flow meter; and upgraded SCADA;
  • Ground storage tank improvements, including new mixer and controls;
  • Elevated storage tank improvements, including epoxy repairs and modifications to access hatch and overflow pipe;
  • Additional pump station, including two 750 gpm pumps, enclosure, discharge piping, connections, controls, and standby power; and
  • Approximitely 10,500 LF of 6- and 8-inch diameter water main to replace undersized pipe in Priority Areas I-4. including associated valves, hydrants and connections.

The Project is more fully described in, and shall be in accordance with, the Preliminary Engineering Report and the Plans and Specifications approved by the Finance Authority (or if designated by the Finance Authority, the Department).

[End of Exhibit A]

 

EXHIBIT B

Principal Payment Schedule for the Bonds

[End of Exhibit B]

 

EXHIBIT C

Credit Instrument

Credit Providers rated on a long term basis lower than "A-/A3" long term by Standard & Poor's Ratings Services, a Division of the McGraw-Hill Companies and Moody's Investors Services, Inc. are:

None

[End of Exhibit C]

 

EXHIBIT D

Additional Terms

A. The following additional terms in this Paragraph A are NOT applicable to the Loan:

"Equivalency Project" shall mean a project designated by the Finance Authority as an "equivalency project" under the Safe Drinking Water Act related to the "US Environmental Protection Agency Capitalization Grant for Drinking Water State Revolving Funds" for the federal fiscal year ending September 30, 2020 (or such later federal fiscal year as the Finance Authority may otherwise designate).

The Participant understands and acknowledges that the Project has been designated as an Equivalency Project and is required to meet the related applicable requirements of the Safe Drinking Water Act.

The Participant further understands and agrees that it is required to comply with all terms of 2 CFR 200.216, Prohibition on certain telecommunication and video surveillance services or equipment, which among other requirements prohibits the use of Loan proceeds by the Participant to procure (by means of entering into, extending, or renewing contracts) or obtain equipment, systems or services that use "covered telecommunications equipment or services" identified in the regulation as a substation or essential component of any Drinking Water System, or as critical technology as part of any Drinking Water System. Such prohibitions extend to the use of Loan proceeds by the Participant to enter into a contract with an entity that "uses any equipment, system, or services that uses covered telecommunications equipment or services" as a substantial or essential component of any Drinking Water System, or as critical technology as part of any Drinking Water System. The Participant represents and warrants that it has not procured or obtained from Loan proceeds equipment, systems or services that use "covered telecommunications equipment or services" identified in the regulation as a substantial or essential component of any Drinking Water System, or as critical technology as part of any Drinking Water System.

B. The following additional terms in this Paragraph B related to GPR Projects (and the related defined terms) are NOT applicable to the Loan.

"GPR Projects" shall mean Project components that meet the requirement of the "Green Project Reserve (GPR) Sustainability Incentive Program" consistent with SRF Policy Guidelines including applicable requirements of the Drinking Water SRF Act.

"GPR Projects Adjustment Fee" shall mean an amount which would equal the gross additional interest that would have accrued on the Bonds from the date of this Agreement through their scheduled final maturity, had such Bonds been issued at an interest rate determined under the Drinking Water SRF Program's interest rate policies and practices using the final, actual GPR Projects Expenditures (rather than the amount referenced in the Participant's business case or categorical exclusion posted at www.srf.in.gov), all as determined by the Finance Authority.

"GPR Projects Expenditures" shall mean those costs and expenses incurred by the Participant that are part of the Project which are GPR Projects in nature (within the meaning of the Drinking Water SRF Act) as determined by the Finance Authority, in order for the Bonds to receive special interest rate treatment under the Drinking Water SRF Program's interest rate policies and practices.

The Participant understands and acknowledges that a special interest rate has been applied to the Bonds as a result of a portion of the Project having been identified by the Participant as being a GPR Projects project. In the event GPR Projects Expenditures are hereafter determined by the Finance Authority to be less than the amount referenced in the Participant's business case or categorical exclusion, then the Finance Authority may request and the Participant shall promptly pay (no later than thirty (30) days after any request), a GPR Projects Adjustment Fee in connection with the Loan. The Participant shall certify to the Finance Authority those loan disbursements it represents to be its GPR Projects Expenditures when ad as required by SRF Policy Guidelines. The Participant understands an acknowledges that it is required to submit a business case or categorical exclusion documenting GPR Projects prior to loan closing or if a request is made pursuant to Section 3.02(f0 of this Agreement.

C. The following additional terms in this Paragraph C related to LLR Projects (and the related defined terms) are NOT applicable to the Loan.

"LLR Projects" shall mean Project components that meet the requirement of the "Lead Line Replacement (LLR) Incentive Program" consistent with SRF Policy Guidelines including applicable requirements of the Drinking Water SRF Act.

"LLR Projects Adjustment Fee" shall mean an amount which would equal the gross additional interest that would have accrued on the Bonds from the date of this Agreement through their scheduled final maturity, had such Bonds been issued at an interest rate determined under the Drinking Water SRF Program's interest rate policies and practices using the final, actual LLR Projects Expenditures (rather than the amount referenced in the Participant's related post-bid and other documents submitted to the Finance Authority), all as determined by the Finance Authority.

"LLR Projects Expenditures" shall mean those costs and expenses incurred by the Participant that are part of the Project which are LLR Projects in nature (within the meaning of the Drinking Water SRF Act) as determined by the Finance Authority, in order for the Bonds to receive special interest rate treatment under the Drinking Water SRF Program's interest rate policies and practices.

The Participant understands and acknowledges that a special interest rate has been applied to the Bonds as a result of a portion of the Project having been identified by the Participant as being a LLR Projects project. In the event LLR Project's Expenditures are hereafter determined by the Finance Authority to be less than the amount referenced in the Participant's related post-bid and other documents submitted to the Finance Authority, then the Finance Authority may request and the Participant shall promptly pay (no later than thirty (30) days after any request), a LLR Projects Adjustment Fee in connection with the Loan. The Participant shall certify to the Finance Authority those Loan disbursements it represents to be its LLR Projects Expenditures when and as required by SRF Policy Guidelines.

[End of Exhibit D]

 

EXHIBIT C

FORM OF BOND

No. 21_R-___

Registered Owner:

Principal Sum:

The Town of Lapel (the "Town") , in Madison County, State of Indiana, for value received, hereby promises to pay to the Registered Owner specified above or registered assigns, solely out of the special revenue fund hereinafter referred to, the Principal Sum specified above, [or so much thereof as may be advanced from time to time and be outstanding as evidenced by the records of the registered owner making payment for this bord, or its assigns,] on the [Maturity Date set forth above] OR [______________________ in the years and in the amounts as set forth on Schedule A attached hereto] (unless this 2021_ Bond is subject to and shall have been duly called for redemption and payment as provided for herein), and to pay interest hereon until the Principal Sum shall be fully paid at the Interest Rate per annum specified above from [the dates of payment made on this 2021_Bond] OR [the interest payment date to which interest has been paid next preceding the Authentication Date of this 2021_ Bond, unless this 2021_ Bond is authenticated after the fifteenth (15th) day of the month preceding an interest payment date and on or before such interest payment date, in which case it shall bear interest from such interest payment date, or unless this 2021_ Bond is authenticated on or before _________ 15, 2021, in which case it shall bear interest from the Original Issue Date, which interest is payable] semiannually on the first day of January and July of each year, beginning on ________________ 1, 2021. Interest shall be calculated according to a three hundred sixty (360) day calendar year containing twelve (12) thirty (30) day months.

[The principal of and premium, if any, on this 2021_ Bond is payable at the principal Office of _________ (the "Registrar" or the "Paying Agent"), in the _______ of _________ Indiana] [Principal and] Interest on this 2021_ Bond shall be paid by check mailed OR [wire transfer for deposit to a financial institution as directed by the Indiana Finance Authority (the "Authority") on the due date  or, if such due date is a day when financial institutions are not open for business, on the business day immediately after such due date] one (1) business day prior to the interest payment date to the Registered Owner hereof, as of the rfifteenth (15th) day of the month preceding such payment, at the address as it appears on the registration books kept by the Registrar or at such other address as is provided to the Paying Agent in writing by the registered owner. [If payment or principal is made to a depository, payment shall be made by wire transfer on the payment date in same-day funds. If the payment date occurs on a date when financial institutions are not open for business, the wire transfer shall be made on the next succeeding business day. The Paying Agent shall wire transfer payments so such payments are received at the depository by 2:30pm (New York City time).] All payments on the Town's Waterworks Revenue Bonds, Series 2021_ (the "2021_ Bonds"), shall be made in any coin or currency of the United States of America, which on the dates of such payment, shall be legal tender for the payment of public and private debts.

This 2021_ Bond shall not constitute an indebtedness of the Town within the meaning of the provisions and limitations of the Constitution of the State, and the Town shall not be obligated to pay this 2021_ Bond or the interest hereon except from the Sinking Fund (as defined in the Ordinance) provided from the Net Revenues (herein defined as the gross revenues of the System (herein defined as the Town's waterworks system, including all real estate, equipment and appurtenances thereo used in connection therewith, and all extensions, additions and improvements thereto and replacements thereof, now or at any time hereafter constructed or acquired) inclusive of System Development Charges (as defined in the Ordinance) remaining after the payment of the reasonable expense of [Operation and Maintenance as defined in the Financial Assistance Agreement] or [operation, repair and maintenance] of the System.

[Reference is hereby made to the Finance Assistance Agreement ("Financial Assistance Agreement") between the Town and the Authority concerning certain terms and covenants pertaining to the Waterworks project and the purchase of this Bond as part of the drinking water loan program established and existing pursuant to IC 5-1.2-1 through IC 5-1.2-10.]

This 2021_ Bond is one (1) of an authorized series of 2021_ BOnds of like tenor and effect, except as to numbering, interest rates per annum and dates of maturity, in the total amount of ________________ Dollars ($_____________) lettered and numbered consecutively from R-1 and upward, issued for the purpose of providing funds to pay all or any portion of the cost of certain additions, extensions, and improvements to the municipally owned waterworks system of the Town, [to refund interim notes issued in anticipation of the 2021_ Bonds (the "BANs")] and to pay the costs of issuance of the 2021_ Bonds [and the BANs], as authorized by an Ordinance adopted by the Town Council on ________, 2021, entitled "AN ORDINANCE OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA, AUTHORIZING THE ACQUISTION, CONSTRUCTION OF CERTAIN ADDITIONS AND IMPROVEMENTS TO THE WATERWORKS OF THE TOWN OF LAPEL, MADISON COUNTY, INDIANA; AUTHORIZING THE ISSUANCE OF REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF; ADDRESSING OTHER MATTERS CONNECTED THEREWITH, INCLUDING THE ISSUANCE OF NOTES IN ANTICIPATION OF BONDS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND ALL MATTERS RELATED HERETO" (the "2021_ Ordinance"), and in strict compliance with the provisions of IC 8-1.5, as in effect on the issue date of this 2021_ Bond (the "Act"). Capitalized terms not otherwise defined herein have the same meanings as ascribed ot them in the 2021_ Ordinance.

Pursuant to the provisions of the 2021_ Ordinance and the Act, the principal of and interest on this 2021 Bond, all other 2021 Bonds, including the 2021A Bonds and the Parity Bonds (each as defined in the 2021_ Ordinance), and any bonds hereafter issued ranking on a parity therewith (collectively, the "Bonds"), are payable solely from the Waterworks Sinking Fund (the "Sinking Fund") to be funded from the Net Revenues of the System, except to the extent payable from the proceeds of the Bonds.

The Town irrevocably pledges, the entire Net Revenues of the System to the prompt payment of the principal of and interest on the Bonds and covenants that it will cause to be fixed, maintained and collected such rates and charges for service rendered by the System as are sufficient in each year to (i) provide for the payment of the proper and reasonably expenses of [Operation and Maintenance (as defined in the Financial  Assistance Agreement] OR [operation, repair and maintenance] of the waterworks, (ii)) provide for the payment of the sums required to be paid into the Sinking Fund under the provisions of the Act and the Ordinance, and (III) comply with and satisfy all covenants contained in the Ordinance and any Financial Assistance Agreement. Such required payments shall constitute a first charge upon all the Net Revenues of said works, on a parity with the payment of the 2021_ Bonds. If the Town or the proper Officers of the Town shall fail or refuse to so fix, maintain and collect such rates or charges, or if there shall be a default in the payment of the principal of or interest on the Bonds when due, the owners of this 2021_ Bond shall have all of the rights and remedies provided for in the Act and the Ordinances, including the right to have a receiver appointed to administer the System (but only in the event of a default in the principal of or the interest on the Bonds when due), and, by civil action, to protect and enforce rights granted by the Act or under the Ordinances in connection with any action or duty to be performed by the Town, the Town Council or any Officer of the Town, including the making and collecting of reasonable and sufficient charges and rates for services provided by the System.

[Reference is hereby made to the Financial Assistance Agreement ("Financial Assistance Agreement") between the Town and the Authority concerning certain terms and covenants pertaining to the Waterworks project and the purchase of this Bond as part of the drinking water loan program established and existing pursuant to IC 5-1.2-1 through IC 5-1.2-4 and IC 5-1.2-10.]

The 2021_ BOnds maturing on and after ___________, are redeemable at the option of the Town on ___________ 1, 20___, or any date thereafter, on thirty (30) days' notice, in whole or in part, in [inverse/any] order of maturity and by lot within a maturity, at face value, [together with the following premiums:

_____

plus in each case accrued interest to the date fixed for redemption [; provided, however, if the Bonds are sold to the IFA Programs and registered in the name of the Authority, the Bond shall not be redeemable at the option of the Town unless and until consented to by the Authority].

[The 2021_ Bonds maturing on ______, are subject to mandatory sinking fund redemption prior to maturity, at a redemption price equal to the principal amount thereof, plus accrued interest, on January 1st in the years and in the amounts set forth below:

Year                          Amount

*Final Maturity.]

[Each Five Thousand Dollar ($5,000) principal amount shall be considered a separate Bond for purposes of option [and mandatory] redemption. In the event of the 2021 Bonds are to be redeemed by optional redemption and mandatory sinking fund redemption on the same date, the Registrar shall select by lot the 2021_ Bonds for mandatory sinking fund redemption before selecting the 2021_Bonds by lot for optional redemption.]

Notice of redemption shall be mailed to the address of the Registered Owner as shown on the registration record of the Town, as of the date which is [forty-five (45)] days prior to such redemption date, not less than thirty (30) days prior to the date fixed for redemption. The notice shall specify the date and place of redemption and sufficient identification of the 2021_ Bonds called for redemption. The place of redemption may be determined by the Town. Interest on the 2021_ Bonds so called for redemption shall cease on the redemption date fixed in such notice, if sufficient funds are available at the place of redemption to pay the redemption price on the date so named,

If this 2021_ Bond shall not be presented for payment or redemption on the date fixed therefor, and the Town shall have deposited in trust with [the Paying Agent] [its depository bank], an amount sufficent to pay this 2021_ Bond or the redemption price, as the case may be, then the Registered Owner shall thereafter look only to the funds so deposited in trust with [the Paying Agent] [such depository bank] for payment and the Town shall have no further obligation or liability with respect thereto.

This 2021_ Bond is transferable or exchangeable only upon the books of the Town kept for that purpose at the office of the Registrar, by the Registered Owner hereof in person, or bit its attorney duly authorized in writing, upon surrender of this 2021_ Bond, together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the Registered Owner or its attorney duly authorized in writing, and thereupon a fully registered 2021_ Bond or 2021_ Bonds in the same aggregate principal amount and of the same maturity, shall be executed and delivered in the name of the transferee or transferees or to the Registered Owner, as the case may be, in exchange therefor. The Town, the Registrar andfthe Paying Agent may treat and consider the person in whose name this 2021_ Bond is registered as the absolute owner hereof for all purposes including for the purpose of receiving payment of, or on account of, the principal hereof, premium, if any, and interest due hereon.

The 2021_ Bonds maturing in any one (1) year are issuable only in fully registered form in the denomination of [One Dollar ($1)] OR Five Thousand Dollars ($5,000)] or any integral multiple thereof not exceeding the aggregate principal amount of the 2021_ Bonds maturing in such year.

[All of the 2021_ Bonds have been designated [or deemed designated] as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended]

THE REGISTERED OWNER, BY THE ACCEPTANCE HEREOF, HEREBY AGREES TO ALL THE TERMS AND PROVISIONS CONTAINED IN THE 2021_ ORDINANCE. This 2021_ Bond is subject to defeasance prior to redemption or payment as provided in the 2021_ Ordinance. The 2021_ Ordinance may be amended without the consent of the owners of the 2021_ Bonds as provided in the 2021_ Ordinance if the Town Council determines, in its sole discretion, that the amendment shall not adversely affect the rights of any of the owners of the 2021_ Bonds.

[A Continuing Disclosure Agreement dated as of the Original Issue Date (hereinafter, the "Disclosure Agreement" has been executed by the Town for the benefit of each registered or beneficial owner of any 2021_ Bond. A copy of the Disclosure Agreement is available from the Town and its terms are incorporated herein by reference. The Disclosure Agreement contains certain covenants of the Town to each registered or beneficial owner of any 2021_ Bond, including a covenant to provide continuing disclosure of certain annual financial information and notices of the occurrence of certain events, if material. By its payment for and acceptance of this 2021_ Bond, the Registered Owner and any beneficial owner of this 2021_ Bond assents to the Disclosure Agreement and to the exchange of such payment and acceptance for such covenants.]

It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the preparation and completion of the execution, issuance and delivery of this 2021_ Bond have been done and performed in regular and due form as provided for by applicable law.

This 2021_ Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been executed by [an authorized representative] of the Registrar.

IN THE WITNESS WHEREOF, the Town has caused this 2021_ Bond to be executed in its corporate name and on its behalf by the manual or facsimile signature of its Town Council President, have its corporate seal affixed hereunto, imprinted or impressed by any means, and be attested manually or by facsimile by its Clerk-Treasurer.

 

 

REGISTRAR'S CERTIFICATE OF AUTHENTICATION

It is hereby certified that this 2021_ Bond is one (1) of the BOnds described in the 2021_ Ordinance.

 

ABBREVIATIONS

The following abbreviations, when used in this 2021_ 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 right of survivorship and not as tenants in common

UNIF TRAN
MIN ACT - under Uniform Transfers to Minors Act of (State)

Additional abbreviations may also be used although not in the list above.

 

 

 

ASSIGNMENT

For value received, the undersigned hereby sells, assigns and transfers unto _________________________________________________________

(Please print or typewrite name, address and social security or other identifying number of the assignee and insert number for the first named transferee if held by joint account)

the within 2021_ Bond and all rights hereunder, and hereby irrevocably constitutes and appoints _________________, as attorney to transfer the within 2021_ Bond on the books kept for the registration thereof with full power of substitution in the premises.

 

DATED: ________________________________

 

 

AN ORDINANCE AMENDING ORDINANCE NO. 9-11, ESTABLISHING NEW RATES AND CHARGES FOR THE USE AND SERVICES RENDERED BY THE WATERWORKS SYSTEM OF THE TOWN OF LAPEL, INDIANA

WHEREAS, the Town of Lapel, Indiana (the “Town”), has heretofore constructed and has in operation a waterworks utilty; and

WHEREAS, the Town Council of thr Town (the “Council”) has previously established the existing schedule of user rates and charges for waterworks service, pursuant to Ordinance No. 0-11, adopted by the Council on October 20, 2011; and

WHEREAS, the Town has employed Reedy Financial Group P.C. (the “Municipal Advisor”) to prepare a rate report reviewing the sufficiency of such existing rates and charges; and

WHEREAS, the Municipal Advisor has prepared and submitted a rate report ( the “Rate Report”) which concludes the exisiting rates and charges are insufficient to pay all the legal and other necessary expenses incident to the operation of the utility, including maintenance costs, operating charges, upkeep, repairs, depreciation, including increases in such coss, and the payment of principal and interest on bonds, future bonds or other obligations; and

WHEREAS; pursuant to IC 8-1.5, as amended (the “Act”), this Council may change or adjust its existing schedule of fees by ordinance after providing notice and conducting a public hearing; and

WHEREAS, the Clerk Treasurer of the Town has given notice of the public hearing on the proposed rates as provided for in the Act; and

WHEREAS, the public hearing was held bfore this Council on November 10, 2021, at which time testimony from interested persons was received, after introduction of this ordinance and as provided for in the Act.

NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LAPEL, INDIANA, AS FOLLOWS:

SECTION 1. The Council hereby finds and deteremines that, based upon the Rate Report, the exisiting rates and charges are insufficient to pay all the legal and other necessary expenses incident to the operation of the utility, including maintenance costs, operating charges, upkeep, repairs, depreciation, including increases in such coss, and the payemnt of principal and interest on bonds, future bonds or other obligations.

SECTION 2. The Council finds and determines that the proposed rates and charges set forth in the Rate Report are nondsciminatory, reasonable and just, and therefore should be adopted.

SECTION 3. The Council finds and determines that the proposed rates set forth in Exhibit A hereto are nondsciminatory, reasonable and just, and therefore should be adopted.

SECTION 4. All ordinances and parts of ordinances in conflict herewith are hereby repealed.

SECTION 5. This ordinance shall be in full force and effect from and after its passage. This ordinance shall be effective for bills rendered on and after the day after adoption of this ordinance or such later date as set forth in Exhibit A hereto.

DULY PASSED on this 10th day of November, 2021, by the Town Council of the Town of Lapel, Indiana.

 

 

EXHIBIT A

LAPEL MUNICIPAL WATER UTILITY

SCHEDULE OF PRESENT AND PROPOSED RATES AND CHARGES

 

  Current Rates Proposed Rates
I. Metered Rates Per Month    
Per 1,000 Gallons    
First 2,000 Gallons $9.20 $11.71
Next 4,000 Gallons $8.35 $10.63
Next 9,000 Gallons $7.10 $9.04
Next 15,000 Gallons $6.44 $8.20
Over 30,000 Gallons $4.65 $5.92
     
II. Minimum Charge Per Month    
5/8 - 3/4 inch $18.40 $23.43
1 inch $27.74 $35.32
1 1/4 inch $46.18 $58.80
1 1/2 inch $64.56 $82.20
2 inch $73.93 $94.14
3 inch $92.31 $117.54
4 inch $147.86 $188.27
6 inch $230.84 $293.93

Further Information

17-2021

AN ORDINANCE AUTHORIZING THE CURRENT REFUNDING OF THE TOWN OF LAPEL, INDIANA, WATERWORKS REVENUE BONDS, SERIES 2000, AND THE TOWN OF LAPEL, INDIANA, WATERWORKS REVENUE BONDS SERIES 2011, THE ISSUANCE AND SALE OF REFUNDING REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, AND THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUE OF SUCH WATERWORKS AND OTHER RELATED MATTERS

WHEREAS, the Town of Lapel, Indiana (the “Town”), has heretofire established and constructed and currently owns and operates a waterworks by and through its Town Council (the “Town Council”) furnishing the public water supply to the Town and its inhabitants (the “Waterworks”), pursuant to the provisions of Indiana Code 8-1.5, as amended; and

WHEREAS, the Town has withdrawn the Waterworks from the jurisdiction of the Indiana Utility Regulatory Comission; and

WHEREAS, the Town has heretofore issued its Waterworks Revenue Bbonds, Series 200 (the “2000 Binds”), in the original principal amount of One Million Three Hundred Twenty-Eight Thousand Dollars ($1,328,000), payable from the Net Revenues (as heinafter defined) of the Waterworks, said 2000 Bonds currntly outstanding in the principal amount of Nine Hundred Twenty-Three Thousand Dollars ($923,00); and

WHEREAS, th Town has heretofore isses its Waterworks Revenue Bonds, Series 2011 (the “2011 Bonds” andm together with the 2000 Bonds, the “Refunded Bonds”), in the original aggregate principal amount of One Million Two Hundred Fifty -Two Thousand Dollars ($1,252,000), payable from the Net Revenues of the Waterworks, said 2011 Bonds currently oustanding in the principal amount of One Million Ninety-One Thousand Dollars ($1,091,000); and

WHEREAS, the Town Council has found that savings in the interest cost can be generated through refunding the 2000 Bonds, and that restrictive covenants can be eliminated through refunding of the 2011 Bonds, and the Town Council hereby authorizes the issuance of refundung revenue bonds for such purpose to be knows as the “Town of Lapel, Indiana, Waterworks Refunding Revenue Bonds, Series 2021A” (the “Refunding Bonds” or the “2021A Bonds”); and

WHEREAS, the Town Council now finds that all the conditions precedent to the issuance of the Refunding Bonds have been or will be met; and

WHEREAS, the Refunding Bonds will constitute a charge against the Net Revenues and are to be issued subject to the provisions of the laws of Indiana Code 8-1.5, as amended, and Indiana Code 5-1-5, as amended (collectively, the “Act” and this Ordinance);

NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LAPEL, INDIANA, AS FOLLOWS:

Section 1. Issuance of the Refunding Bonds. The Town, acting by and through the Town Council and as the owner and operator of the Waterworks for the furnishing of the public water supply to the Town and its inhabitants, now finds it necessary to provide funds for the refunding of the Refunding Bonds (referred to herein as the"Refunding").

Where used in this Ordinance, the term “Town” shall be constructed also to include any department, board, commission, or officer or officers of the Town or of any Town department, board or commission. The term “Waterworks”, ‘waterworks’, ‘works’ and similar terms used in this Ordinance shall be construed to mean and include the ecisting structures and property of the Waterworks and all enlargements, improvements, extensions, and additions heretom and replacements thereof, now or subsequently constructed or acquired. The refunding bonds herein authorized shall be issued to the provisions of this Ordinance and the Act.

Section 2. The Refunding Bonds. In accordance with the Act and for the purpose of providing funds with which to pay the costs of the Refunding, together with authorizes expenses relating thereto, including cost of issuance of the Refunding Bonds on account thereof, the Town shall issue and sell its waterworks refunding revenue bonds in the aggregate principal of not to exceed Dollars ($ ). The principal of, redemption premous, if any, and interest on the Refunding Bonds shall be payable solely out of the Bond and Interest Redemption Account referred to below.

The Refunding Bonds shall de designate as the “Town of Lapel, Indiana, Waterworks Refunding Revenue Bonds, Series 2021A.” The Refunding Bonds shall be issued in an aggregate principal of not to exceed Dollars ($ ). The Refunding Bonds shall be issued as fully registered bonds in denominations od Five Thousand Dollars ($5,000) and any integral multiple thereof (or such higher minimum denominations as the Clerk-Treasurer shall determine prior to the sale of the Refunding Bonds), not exceeding the aggregate principal amount of the Refunding Bonds maturing in any one year, shall be numbered consecutively from 21AR-1 upward and shall bear interest at a rate not to exceed four percent (4.0%) per annym (the exact rate or rates to be determined by negotiation or y bidding). Interest on the Refunding Bonds shall be calculated on the basis of twelve (12) thirty (30)-day months for a three hundred sixty (360) day year and shall be payable semiannually on January 1 and July 1 in each year (each an “Interest Payment Date”), commencing not sooner than January 1, 2022, until principal is fully paid. The principal of the Refunding Bonds shall mature serially commencing not sooner than Juanuary 1, 2022, over a period of not more than twenty (20) years. The final amortization schedule for the Refunding Bonds shall be established by the Clerk-Treasurer as set forth in the Clerk-Treasurer’s Certificate (as hereinafter defined) prior to the sale of the Refunding Bonds.

The Refunding Bonds shall bear an original issue date which shall be the date of issuance of the Refunding Bonds, and each Refunding Bond shall also bear the date of its authentication. Any Refunding Bond authenticated on or before the fifteenth day of the calendar month immediately preceding the first Interest Payment Date shall pay interest from its original issue date. Any Refunding Bond authenticated thereafter shall pay interest from the Interest Payment Date next preceding the date of authentication of such Bond to which interest thereon has been paid or duly provided for, unless such Refunding Bond is authenticated after the day which is the fifteenth day of the calendar month immediately preceding an Interest Payment Date and on or before such Interest Payment Date, in which case interest thereon shall be paid from such Interest Payment Date.

The Clerk-Treasurer is hereby authorized to contract with a qualified financial institution to serve as registrar and a paying agent for the Refunding Bonds (the "Registrar" and "PayingAgent" and, in both such capacities, the "Registrar and Paying Agent"). The Registrar and Paying Agent shall be charged with and shall by appropriate agreement undertake the performance of all of the duties and responsibilities customarily associated with each such position, including without limitation the authentication of the Refunding Bonds. The Clerk-Treasurer is authorized and directed to enter into such agreement and understanding with the Registrar and Paying Agent and any subsequent Registrar and Paying Agent as will enable and facilitate the performance of its duties and responsibilities, and is authorized and directed to pays such fees as the Registrar and Paying Agent may reasonably charge for its services in such capacity, and such fees may be paid from the Bond and Interest Redemption Account continued by this Ordinance.

The Registrar and Paying Agent may at any time resign as Registrar and Paying Agent upon giving thirty (30) days or upon the earlier appointment of a successor Registrar and Paying Agent by the Town. Any such notice to the Town may be served personally or sent by certified mail. The Registrar and Paying Agent may also be removed at any time as Registrar and Paying Agent by the Town, in which event the Town may appoint a successor Registrar and Paying Agent. The Town shall notify each registered owner of Refunding Bonds then outstanding by first-class mail of the removal of the Registrar and Paying Agent. Notices to registered owners of the Refudning Bonds shall be deemed to be given when mailed by first-class mail to the addresses of such registered owners as they appear on the registration books kept by the Registrar. Any predecessor Registrar and Paying Agent shall deliver all of the Refunding Bonds and cash in its possession with respect thereto, together with the registration books, to the successor Registrar and Paying Agent. The Clerk-Treasurer is hereby authorized to act on behalf of the Town with regard to any of the aforementioned actions of the Town relating to the resignation or removal of the Registrar and Paying Agent and appointment of a successor Registrar and Paying Agent.

If the Refunding Bonds are registered in the name of any purchaser that does not object to such designation, the Clerk-Treasurer shall be designated as the Registrar and Paying Agent for the Refunding Bonds and shall be charged with the performance of all of the duties and responsibilities of Registrar and Paying Agent.

Principal of and any redemption premium on the Refunding Bonds shall be payable at the principal office of the Paying Agent. Interest on the Refunding Bonds shall be paid by check or draft mailed or delivered by the Paying Agent to the registered owner thereof at the address as it appears on the registration books kept by the Registrar as of the fifteenth (15th) day of the month immediately preceding the Interest Payment Date or at such other address as may be provided to the paying Agent in writing by such registered owner. All payments on the Refunding Bonds shall be made in any coin or currency of the United States of America which, on the dates of such payments, shall be legal tender for the payment of public or private debt.

Each Refunding Bond shall be transferable or exchangeable only on the books of the Town maintained for such purpose at the principal corporate trust office of the Registrar, by the registered owner thereof in person, or by his or her attorney duly authorized in writing, upon surrender of such Refunding Bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the registered owner or his or her attorney duly authorized in writing, and thereupon a new fully registered Refunding Bond or Refunding Bonds in the same aggregate principal amount and of the same maturity shall be executed by and delivered in the name of the transferee or transferees or the registered owner, as the case may be, in exchanfe thereof. Each Refunding Bond may be transferred or exchnaged without the cost to the registered owner, except for any tax or other governmental charge which may be required to be paid with repsect to such transfer or exchange. The Registrar shall not be obligated to make any transfer or exchange of any Refunding Bond (I) during fifteen (15) days immediately preceeding an Interest Payment Date or (ii) after the mailing of notice calling such Refunding Bond for redemption. The Town, the Registrar and the Paying Agent may treat and consider the person in whose name any Refunding Bond is registered as the absolute owner thereof for all purposes including the purpose of receiving payment of or on account of, the principal thereof, and redemption premium, if any, and interest thereon.

In the event any Refunding Bond is mutilated, lost, stolen or destroyed, the Town may cause to executed and the Registrar may authenticate a new Refunding Bond of like date, maturity and denomination as the mutilated, lost, stolen or destroyed Refunding Bond, which new Refunding Bond shall be marked in a manner to distinguish it from the Refunding Bond for whuch it was issued; provided that in the case of any mutilated Refunding Bond, such mutilated Refunding Bond shall be first to be surrended to the Regitrar, together its indemnity satisfactory to them. In the event that any such mutilated, lost, stolen, destroyed Refunding Bond shall have matured or been called for redemption, instead of causing to be issued a duplicate Refunding Bond, the Registrar and Paying Agent may pay the same upon surrender of the mutilated Refunding Bond or upon satisfactory indemnity and proof of loss, theft destruction in the case of a lost, stolen or destroyed Refunding Bond. The Town and the Regisrar and Paying Agent may charge the owner of any such Refunding Bond with their reasonable fees and expenses in connection with the above. Every substitute Refunding Bond issued by reason of any Refunding Bond being lost, stolen or destroyed shall, with respect to such Refunding Bond, constitute a substitute contractual obligation of the Town pursuant to this Ordinance, where or not lost, stolen or destroyed Refunding Bond shall be found at any time, and shal be entitled to all the benefits of this Ordinance, equally and proportinately with any and all other Refunding Bond duly issued hereunder.

In the event that any Refunding Bond is not presented for payment or redemption on the date established therefor, the Town may deposit in trust with the paying Agent an ammount sufficient to pay such Refunding Bond or the redemption price thereof, as appopriate, and thereafter the owner of such Refunding Bond shall look only into the funds so deposited in trust with the Paying Agent for payment and the Town shall have no futher obligation or liabilty wth respect thereto.

Section 3. Optional Redemption of the Refunding Bonds; Term Bonds. The redemption provisions, including redemption dates and prices, with respect to the Refunding Bonds shall be set forth in the Clerk-Treasurer’s Certificate prior to the sale of such Refunding Bonds.

Official notice of such redemption shall be mailed by the Registrar and Paying Agent by the certified or registered mail at least thirty (30) days prior to the scheduled redemption date to each of the regsitered owners of the Refunding Bonds called for redemption (unless waived by any such registred owner) at the address shown on the registration books of the Registrar and Paying Agent, or at such other address as is furnished in writing by such registered owner to the Registrar; provided, however, that any failure to give such notice by mailing, or any defect therein, with respect to any Refunding Bond shall not affect the validity of the proceedings for the redemption of any other Refunding Bond. The notice shall specify the redemption price, the date and place of redemption, and the registration numbers (and, in case of partial redemption, the respective principal amounts) of the Refunding Bond called for redemption. The place of redemption may be at the principal trust office of the Registrar and Paying Agent or as otherwise determined by the Town. Interest on the Refunding Bond (or portion thereof) so called for the redemption shall cease to accrue on the redemption date fixed with such notice, if sufficuent funds are available at the place of redemption to pay the redemption price on the redemption date and when such Refunding Bond (or portions thereof) are presented for payment. Any Refunding Bond redeemed in part may be exchanged for a Refunding Bond or Refunding Bonds of the same maturity in authorized denominations equal to the remainng principal amount thereof.

Upon the payment of the redemption price of the Refunding Bonds (or portions thereof) being redeemed and if so directed by the Town, each check or other transfer of funds issued for such purpose shall bear the CUSIP number, if any, identifying, by issue and maturity, the Refunding Bonds (or portions thereof) being reedemed with the proceeeds of such check or other transfer.

As determined by the Clerk-Treasurer, with the advice of the financial advisor to the Town, as set forth in thr Clerk-Treasurer’s Certificate, all or a portion of the Refunding Bonds may be aggregated into one or more term bonds payable from mandatory sinking fund redemption payment (‘The Bonds”) required to be made as set forth below. The Term Bonds shall have a stated maturity or maturities as determined by the Clerk-Treasurer, with the advise of the financial advisor to the Town, as set forth in the Clerk-Treasurer’s Certificate.

In the event that the Clerk-Treasurer opts to aggregate certain Refunding Bonds into Term Bonds, such Term Bonds shall be subject to mandatory sinking fund redemption prior to maturity at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date, but without premium, on the dates and in the principal amounts set forth in thr Clerk-Treasurer’s Certificate.

The Registar shall credit against any mandatory sinking fund redemption requirement for a Term Bond of a particular maturity , and any Refunding Bonds of such maturity purchased for cancellation by the Town and cancelled by the Registrar and not therefore applied as a credit against any mandatory sinking fund redemption requirement. Earth Bonds so purchased shall be credited by the Registrar at 100% of the principal amount thereof against the mandatory sinking fund redemption requirement for the applicable Term Bond in inverse order of mandatory sinking fund redemption (or final maturity) dates, and the principal amount of such Term Bonds to redemeed on such mandatory sinking fund redemption dates by operation of the mandatory sinkng fund requirements shall be issued accordingly.

The Registrar shall determine by lot (treating each minimum denomination of principal amount of each Bonds as a separate Bond for such purpose) the Refunding Bond within a Term Bond of a particular maturity to be redeemed pursuant to mandatory sinking fund redemption requirement on a mandatory redemption date.

Notice of any such mandatory sinking fund redemption shall be given in a manner provided in this Section 3 of this Ordinance.

Section 4. Execution and Authentication of the Refunding Bonds. The Refunding Bonds shall be executed in the name of the Town by the manual or facsimile signature of the President of the Town Councul (‘the Town Council President”), and attested by the manual or facsimile signature of the Clerk-Treasurer, who shall cause the seal, if any, of the Town or a facsimile thereof to be affixed to each of the Refunding Bonds. the Refunding Bonds shall be authenticated by the manual signature or the Registrar and no Refunding Bond shall be valid or obligatory for any purpose until certificate of authentication thereof has been so executed. In case any official whose signature appears on any Refunding Bond shall cease to be such official before the delivery of such Refunding Bonds, the signature of such official shall nevertheless be valid and sufficuent for all purposes, the same as if such official had been in office at the time of such delivery. Subject to provisions of this Ordinance regarding the registration of the Refunding Bonds, the Refunding Bond shall be fully negotiable instruments under the laws of the state of Indiana.

The Refunding Bonds may, in compliance with all applicable lawas, be issued and helf in book-entry form on the books of the central depository system, The Depository Trust Company, or its successors, or any successor central depository system appointed by the Town from time to time (the “Clearing Agency”). The Town and Registrar may, in connection therewith, do or perform cause to be done or performed any act or things not adverse to the rights of the holders of the Refunding Bond as are necessary or appropriate to accomplish or recognize such book-entry form Refunding Bonds.

During any time that the Refunding Bonds are held in book-entry form on the books of a Clearing Agency (1) any such Refunding Bond may be registered upon the books kept by the Registrar in the name of such Clearing Agency, or any nominee thereof, including CEDE&Co., as nominee of the Depository Trust Company (2) the Clearing Agency in whose name such is so registered shall be, and the Town and the Registrar and Paying Agent may deem and treat such Clearing Agency as, the absolute owner and holder of such Refunding Bond for all purposes of this Ordinance, including, without limitation, the receiving and payment of the principal of premium, if any, in and interest in the Refunding Bond, the receiving notice and giving consent; (3) neither the Town not the Registrar or Paying Agent shall give any responsility or obligation hereunder to an direct or indirect participant, within the meaning of Section 17A of the Securities Exchange Act of 1934, as amended, of such Clearing Agency, or any person on behalf of which, or otherwise in respect of which, any such participant holds any interst in any Refunding Bond, including, without limitation, any responsibility or obligation hereunder to maintain accurate records of any interest in any Refunding Bond or any responsibility or obligation hereunder with repect to receiving of payment of principal, premium, if any, or interest on any Refunding Bond, the receiving of notice or the giving consent ; and (4) the Clearing Agency is not required to present any Refunding Bond called for partial redemption prior to receiving payment so long as the Registrar and Paying Agent and the Clearing Agency have agreed to the method for noting such partial redemption.

If either (i) the Town receives notice from thr Clearing Agency which is currently the registered owner of the Refunding Bonds to the effect that such Clearing Agency is unable or unwilling to discharge its responsibility as a Clearing Agency for the Refunding Bonds or (ii) the Town elects to discontinue its use of such Clearing Agency as a Clearing Agency for the Refunding Bonds, then the Town and Registrar and Paying Agent each shall do or perform or casuse to be done or performed all acts or things, not adverse to the rights of the holders of the Refunding Bonds as are necessary or appropriate to discontinue use of such Clearing Agency as a Clearing Agency for the Refunding Bonds and to transfer the ownership to of each of the Refunding Bonds to the person or persons, including any other Clearing Agency, as the holder of the Refunding Bonds may direct in accordance with this Ordinance. Any expenses of such discontinuance and transfer including expenses of printing new certificates to evidence the Refunding Bonds, shall be paid y the Town.

During any time that the Refunding Bonds are held in book-entry form on the books of a Clearing Agency, the Registrar and Paying Agent shall be enttitled to request and rely upon a certificate or other written representation from the Clearing Agency or any participant or indirect participant with respect to the identity if any beneficial owners of the Refunding Bond as of a date selected by the Registrar and Paying Agent. For purposes of determening whetether the required advice, direction or demand of a Registered Owner of the Refunding Bond has been obtained, the Registrar of Paying Agent shall be entitled to treat the beneficial owners of the Refunding Bond as the Refunding Bondholders.

During any time that the Refunding Bonds are held book-entry form on the books of a Clearing Agency, the Clerk-Treasurer and or the Registrar are authorized to enter into a Letter of Representations agreement with the Clearing Agency, and the provisions of any such Leter of Representations or any successor agreement shall control on the matters set forth herein.

Section 5. Security and Sources of Payment for the Refunding Bonds. The Refunding Bonds, when fully paid for and delivered to the purchaser thereof, together with any other bonds issued on a parity therewith, as to the principal and interest, shall be valid and binding special revenue obligations of the Town, payable solely from and secured by an irrevocable pledge of and constituting a charge upon all of the Net Revenues (herein defined as gross revenues after deduction only for the payment of the reasoanable expenses of operation, repair and maintenance) derived from the Waterworks, including all such Net Revenuews from the existing works, the Project and all additions and improvements hereto and replacements thereof subsequently constructed or acquiered, to be set aside into the Bond And Interest Redemption Account as herein provided. The Town shall not be obligated to pay the Refunding Bonds or the interest thereon except from the Net Revenues of the Waterworks, and the Refunding Bond shall not constitute and indebtness of the Town within the meaning of the provisions and limitations of the constitution of the State of Indiana.

Section 6. Form of the Refunding Bonds. The form and tenor or the Refunding Bond shall be substantially set forth in Appendix A attached hereto and incorporated herein as if set forth at this place (with blanks to be properly completed prior to the preparation of the Refunding Bonds).

Section 7. Issuance, Sale and Delivery of the Refunding Bonds. The Clerk-Treasurer is hereby authorized and directed to have the Refunding Bonds prepapred, and the Town Council President and the Clerk-Treasurer are each hereby authorized and directed to execute the Refunding Bonds in the form and manner herein provided. The Clerk-Treasurer is hereby authorized and direcred to delived the Refunding Bonds to the purchaser or purchasers thereof after the sale made in accordance with the provisions of the Act and this Ordinance, provided that the time of said delivery the Clerk-Treasurer shall collect the full amount which the purchasers have agreed to pay therefor, which shall be not less than 97% of the par amount of the Refunding Bonds (or such higher percentage of the par amount of the Refunding Bonds as the Clerk-Treasurer shall determine prior to the sale thereof), plus accrued interest thereon to the date of delivery, if any. The proceeds derived from the sale of the Refunding Bonds shall be and are hereby set aside for application to the costs of the Refunding, together with the expenses necessarily incurred in connection therewith including the expenses incurred in the issuance of the Refunding Bonds. The authorized officers of the Town are hereby authorized and directed to draw all proper and necessary warrants and to do whatever other acts and things that may be necessary or appropriate to carry out the provisions of the Ordinance.

The Refunding Bonds may, in the discretion of the Clerk-Treasurer, be sold either at public sale or by private negotiation.

Prior to the delivery of the Refunding Bonds, the Clerk-Treasurer, subject to the approval of the Town Council, shall be authorized to investigate, negotiate and obtain Bond insurance, other forms of credit enhancement and or credit ratings of the Refunding Bonds and to obtain a legal opinion as to the validity of the Refunding Bonds from Barnes & Thornburg LLP, Indianapolis, Indiana, bond counsel for the Town, with such opinion to be furnished to the purchaser of the Refunding Bonds at the expense of the Town. The costs of obtaining such insurance, other credit enhancements ratings, together with bond counsel’s fee for delivering such opinion and in the performane of the related services in connection with the issuance, sale and delivery of the Refunding Bonds, shall be considred as a part of the costs of the Refunding and shall be paid out of the proceeds of the Refunding Bonds.

Section 8. Disposition of Proceeds of the Refunding Bonds.
Concurrently with the delivery of the Refunding Bond, the Clerk-Treasurer shall apply a portion of the proceeds thereor, together with other available funds of the Town, to fully redeem the Refunding Bond at the earliest opportunity. The proper officers of the Town are hereby authorized and directed to take all actions deemed necessary or appropriate to effectuate the Refunding, including entering into an escrow agreement with a qualified financial institution.

Section 9. Segregation and Application of Waterworks Revenues. All revenues derived from operation of the waterworks and from the collection of water rates and charges shall be segregated and kept in a special fund separate and apart from all other funds of the Town. Out of this fund the proper and reasonable espenses of operation, repair and maintenance of the wateterowks shall be paid and the requirements of the Bond and Interest Redemption Account shall be met.

The income and revenues of the Waterworks shall be segregated and set aside into a special fund from all other funds of the Town heretofore established and designated as the “Town of Lapel, Indiana, Waterworks Special Fund”(the “Special Fund”), to be used and applied in the operation, repair and maintenance thereof, in the payment of the principal of and interest on the then outstanding bonds of the Waterworks and in establishing a reserve for such payment, in establishing an improvement account and for other purporses of the Waterworks, all as follows:

(a) Operation and Maintenance Account. On the last day of each calendar month , a sufficient amount of the gross revenues of the Waterworks shall be paid into an acount of the Special Fund heretofore established and hereby continued and designated as thew “Town of Lapel, Indiana, Waterworks Operation and Mainenance Account” (the “ Operation and Maintenance Account”) for the payment of all necessary and reasonable expenses of operation, repair and maintenance of the Waterworks for the next succedding two calendar months, but not including depreciation or payment in lieu of taxes.

(b) Bond and Interest Redemption Account. There is hereby continued an account of the Special Fund previously established by the Town designated as “The Town of Lapel, Indiana, Bond and Interest Redemption Account” ( the “Bond and Interest Redemption Account”), which account shall be used for the payment of the interest on and principal of the then outstanding bonds of the Waterworks and the payment of any fiscal agency charges in connection with the payment of such principal and interest thereon. Said account shall be continued until outstanding Bonnds of the Waterworks, including the Refunding Bonds, have been paid. The Bond and Interest Redemption Account consists of a Debt Service Subaccount and a Reserve Subaccount. As available, there shall be paid in to the Debt Service Subaccount fo the Bond and Interest Redemption Account a sufficient amount for the net revenues of the Waterworks for the payment of (a) the interest on the Refunding Bonds and any other bonds hereafter isssued and payable by their terms from the net revenues of the Waterworks, as such interest shall fall due; (b) the necessary fiscal agency charges for paying such bonds and interest; and (c) the principal of the Refunding Bonds and any other bonds hereafter issued and payable by their terms from the net revenues of the Waterworks, as such principal shall fall due. The monthly payments into the Debt Service Subaccount of the Bond and Interest Redemption Account shall be in an amount equal to at least one-sixth (1/6) (one-twelfth (1/12) if interest on the Refunding Bonds is payable on an annual basis ( of the amount required for the payment of interest on the bonds and all other bonds hereafter issued and payable by their terms from the revenues of the by their terms from the net revenues of the Waterworks during the next succeding six (6) months (twelve (12) months if interest on the Refunding Bonds is payable on an annual basis) and an amount equal to one-twelfth (1/12) of the amount required during the next succeeding twelve (12) calendar months for payments into the Debt Service Subaccount of the Bond and Interest Redemption Account for the purposes described herein other than the payment of interest.

All of the net revenues of the Waterworks not used in making the required Debt Service Subaccount payments shall next be set aside as available and paid into the Reserve Subaccount account monthly until there has been accumulated therein an amount equal to the least of (a) the maximum annual debt service on all bonds payable from the net revenues of the Waterworks, (b) 125% of the average annual debt service on all bonds payable from the net revenues of the Waterworks, or (c) ten percent (10%) of the proceeds of all bonds payable from the net revenues of Waterworks (the least of (a), (b) and (c) is herein referred to as the "Reserve Requirement"), until there has been accumulated in the Reserve Subaccount an amount equal to the Reserve Requirement. However, the Reserve Requirement shall be equal to the maximum annual debt service on all bonds payable from the net revenues of the Waterworks for so long as any such bonds are held by the Indiana Finance Authority.

In no event shall any part of the Bond and Interest Redemption Account be used in calling Refunding Bonds for redemption prior to maturity, except to the extent that the amount then in Bond and Interest Redemption Account exceeds the amount required to pay the principal of the bonds payable therefrom which will mature within a period of twelve (12) calendar months next succeeding the date of said redemption, together with all interest on the Refunding Bonds payable in said period. Any excess of funds above said required level may also be used in purchasing outstanding bonds at a price less than the then applicable redemption price. Moneys in the Bond and Interest Redemption Account shall not be used for any other purpose whatsoever except as provided in this Ordinance.

(c) Improvement Account. In the event all required monthly deposits into the Bond and Interest Redemption Account have been made, then any excess net revenues of the Waterworks shall be deposited monthly as available into an account of the Special Fund previously established and continuied hereby as the "Town of Lapel, Indiana, Waterworks Improvement Account" (the "Improvment Account"), to be used to pay the cost of additions, improvements, replacements and repairs to the Waterworks. No revenues of the Waterworks shall be deposited in or credited to the Improvement Account which will interfere with the requirements of the Bond and interest Redemption Account.

In the event of any deficiency at any time in the Bond and Interest Redemption Account for the purposes of paying the interest on or principal of bonds payable therefrom or any required fiscal agency charges, funds may be withdrawn from the Improvement Account for deposit into the Bond and Interest Redemption Account in the amount of such deficiency.

Any revenues remaining after meeting the requirements of the Operation and Maintenance Account, the Bond and Interest Redemption Account and the Imrpovement Account may be used for any lawful purpose including payments in lieu of taxes which would be payable if the Town's Waterworks were privately owned and transfers to the Town's General Fund or any other fund of the Town.

All of the amounts in the several funds and accounts created and/or continued pursuant to this Section 9 shall be deposited in lawful depositories of the State, and shall be continuously held and secured or invested as provided by the laws of Indiana relating to the depositing, securing, holding and investing of public funds, including IC 5-13-9. The amounts in the Bond and Interest Redemption Account and all other funds and accounts created pursuant to this Section 9 shall be kept in separate bank accounts apart from all other bank accounts of the Town. In no event shall any of the revenues of the Waterworks be transferred or used for any purpose not authorized by this Ordinance so long as any of the bonds issued pursuant to the provisions of this Ordinance shall be outstanding.

Section 10. Book of Records and Accounts. The Town shall keep proper books of record and accounts, separate from all of its other records and accounts, in which completed and accurate entries shall be made and showing all revenues collected from said works and deposited in such accounts and all disbursements made therefrom on account of the operation of the works, and to satisfy the requirements of the Bond and Interest Redemption Account and all other financial obligations relating to said works. There shall be prepared and furnished upon written request, to the holders of the Refunding Bonds at the time then outstanding, not more than ninety (90) days after the end of each fiscal year, complete financial statements of the works, covering the preceding year, which annual statements shall be certified by the Clerk-Treasurer, or by licensed certified public accountants employed for that purpose. Copies of all such statements and reports shall be kept filed in the office of the Clerk-Treasurer. Any owner or owners of at least five percent (5%) of the Refunding Bonds then outstanding shall have the right at all reasonable times to inspect the works and all records, accounts and date of the Town relating thereto. Such inspections shall be performed by representatives duly authorized by written instrument.

Section 11. Rates and Charges. The Town, to the fullest extent permitted by law, shall fix, maintain and collect reasonable and just rates and charges for the use of and the services rendered by the Waterworks so that such rates and charges shall produce revenues at least sufficient each year to (a) pay all the legal and other necessary expenses incident to the operation of the Waterworks, including maintenance costs, operating charges, upkeep, repairs, depreciation charges on bonds or other obligations, including leases; (b) providing a sinking fund for payments of bonds or other obligations, including leases; (c) provide a debt service reserve for all obligations, including leases, as required by the terms of such obligations; (d) provde adequate money for working capital; (e) provide adequate money for making extensions and improvements; and (f) provide money for the payment of any taxes that may be assessed against the Waterworks.

So long as any of the Refunding Bonds are outstanding, none of the facilities and services afforded by the Waterworks shall be furnished without a reasonable and just charge being made therefor. The reasonable cost and value of any facility or service rendered to the Town, or to any department, agency, or instrumentality thereof by the Waterworks by furnishing water for public purposes or by maintaining hydrants and other facilities for fire protection shall be (i) charged against the Town; and (ii) paid for in monthly installments as the service accrues, out of the current revenues of the Town, collected or in the process of collection, and the tax levy of the Town made by it to raise money to meet its necessary current expenses. The revenue received shall be deemed to be revenue derived from the operation of the Waterworks and shall be used and accounted for in the same manner as other revenues derived from the operation of the Waterworks.

Section 12. Defeasance. If, when the bonds issued hereunder shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions to call the bonds for redemption shall have been given, and the whole amount of the principal and the interest and the premium, if any, so due and payable upon all of the Refunding Bonds then outstanding shall be paid; or (i) sufficient moneys, or (ii) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, the principal of and the interest on which when due will provide sufficient funds; or (iii) time certificates of deposit fully secured as to both principal and interest by obligations of this kind described in (ii) above of a bank or banks the principal of and interest on which when due will provide sufficient moneys, shall be held in trust for such purpose, and provisions be made for paying all fees and expenses for the redemption, then and in that case the Refunding Bonds issued hereunder shall no longer be deemed outstanding or entitled to the pledge of hte net revenues of the Town's Waterworks.

Section 13. Sale, Lease, Mortgage or Disposition of the Waterworks. For purposes of safeguarding the interests of the owners of the Refunding Bonds, the Town covenants, represents and agrees as follows:

(a) The Town will not sell, lease, mortgage, pledge or otherwise dispose of or encumber the Waterworks or any component or part thereof except as permitted in this Section 13.

(b) The Town may sell, scrap, discard or otherwise dispose of materials relating to the Waterworks being replaced in the ordinary course of business of the Waterworks. The proceeds, if any, received front the sale of such materials relating to the Waterworks shall be deposited into and credited to the Improvement Account.

(c) The Town may sell or otherwise dispose of equipment or fixtures of the Waterworks under the following conditions:

(1) If the book value of such property, as determined by consulting engineers employed by the Town, together with the book value of all such property previously sold, scrapped, discarded, or disposed of under this Section 13(c) in such fiscal year, does not exceed two percent (2%) of the book value of the Waterworks, then such property may be sold or otherwise disposed of in accordance with the Act, so long as the Town Council (by affirmative vote at a meeting duly called and held) (i) finds that such property is no longer necessary, useful or profitable in the operation of the Waterworks and (ii) authorizes the sale or other disposition of such property. Any proceeds received from the sale of such property shall be deposited into and credited to the Improvement Account.

(2) If the book value of such property, together with the book value of all such property previous sold, scrapped, discarded or disposed of under this Section 15(c) in such fiscal year, exceeds two percent (2%) of the book value of the Waterworks, then such property may be sold or otherwise disposed of upon the affirmative vote of the Town Council, as provided in subsection (c)(1) herein, if the consulting engineers employed by the Town submit to the Town Council a written determination that (A) the sale or other disposition of such property will not materially and adversely affect the operation of the Utility or the Town's ability to meet its obligations under this Ordinance or (B) such propert is no longer necessary, useful or profitable in the operation of the Waterworks. Any proceeds derived from the sale of such property shall be deposited into and credited to the Improvement Account.

Section 14. Additional Bonds. The Town reserves the right to authorized and issue additional bonds payable out of the net revenues of its Waterworks, ranking on a parity with the bonds authorized by this ordinance, for the purpose of financing the cost of future additions, extensions and improvememts to the Waterworks, subject to the following conditions:

(a) The interenst on and principal of all bonds payable from the revenues of the Waterworks shall have been paid to date in accordance with the terms thereof.

(b) The net operating revenues of the Waterworks in the fiscal year immediately rpeceding the issuance of any such bonds ranking on a parity with the bonds authorized by this section shall be not less than one hundred twenty-five percent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds to be issued; or, prior to the issuance of said parity bonds, the water rates and charges shall be increased sufficiently so that said increased rates and charges applied to the previous fiscal year's revenues would have produced net operating revenues for said year equal to not less than one hundred twenty-five percent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional parity bonds proposed to be issued. For purposes thereof the records of the Waterworks shall be analyzed and all showings shall be prepared by certified public accountants employed by the Town for that purpose.

(c) The principal of said additional parity bonds shall be payable on January 1st and the interest on said additional parity bonds shall be payable on January 1st and July 1st of each year.

Section 15. Additional Covenants of the Town. For the purpose of further safeguarding the interests of the owners of the Refunding Bonds herein authorized, it is specifically provided as follows:

(a) The Town shall at all times maintain its Waterworks in good condition and operate the same in an efficient manner and at a reasonable cost.

(b) So long as any of the Refunding Bonds herein authorized are outstanding, the Town shall maintain insurance on the insurable parts of said works of a kind and in an amount such as is normally carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the State of Indiana. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be treated and applied as net revenues of the Waterworks.

(c) Except as hereinbefore provided in Section 14 hereof, so long as any of the Refunding Bonds herein authorized are outstanding, no additional bonds or other obligations payable from any portion of the revenues of the Waterworks shall be authorized, executed or issued by the Town except such as shall be made subordinate and junior in all respects to the bonds herein authorized, unless all of the bonds herein authorized are redeemed, retired or cancelled pursuant to Section 12 hereof coincidentally with the delivery of such additional bonds or other obligations.

(d) The provisions of this Ordinance shall be construed to create a trust in the proceeds of the sale of the Refunding Bonds for the uses and purposes herein set forth and, so long as any of the Refunding Bonds are outstanding, the provisions of this Ordinance shall also be construed to create a trust in the revenues of the Waterworks herein directed to be set apart and paid into the Bond and Redemption Account for the uses and puroses of such Account as set forth in this Ordinance.

(e) The provisions of this Ordinance shall constitute a constract by and between the Town and the owners of the Refunding Bonds, all of the terms of which shall be enforceable at alw or in equity, and after the issuance of the Refunding Bonds this Ordinance shall not be repealed or amended in any respect would adversely affect the rights and interests of the owners of the Refunding Bonds, and the Town Council of the Town shall not adopt any law, ordinance or resolution which in any way would adversely affect the rights of such owners so long as any of the principal of or interest on the Refunding Bonds remains unpaid; provided, that the Town shall have the right to amend this Ordinance, under certain circumstances, without notice to or approval by any owners of the Refunding Bonds in accordance with Section 18 of this Ordinance. The owners of the Refunding Bonds shall have all of the rights, remedies and privileges provided in the Act and under Indiana law.

(f) For so long as any of the Refunding Bonds are outstanding, the Town shall ensure that the rates and charges for the use and the services of the Waterworks produce revenues in each year, net of all necessary expenses incident to the operation and maintenance of the Waterworks, that are equal to at least 120% of the amount of bond principal and interest payments due each year on the Refunding Bonds and any parity bonds.

Section 16. Permitted Actions Relating to Preservation of Exclusion of Interest from Federal Gross Income.

(a) The Clerk-Treasurer is hereby authorized to invest moneys pursuant to the provisions of this Ordinance at a restricted yield (subject to applicable requirements of federal law to insure such yield is then current market rate) to the extent necessary or advisable to preserve the exclusion from gross income of interest on the Refunding Bonds, or the tax-exempt status of interest on the Refunding Bonds, under federal law.

(b) The Clerk-Treasurer shall keep full and accurate records of investment earnings and income from moneys held in the funds and accounts created or referenced herein. In order to comply with the provisions of this Ordinance, the Clerk-Treasurer is hereby authorized and directed to employ consultants or attorneys from time to time to advise the Town as to requirements of federal law to preserve the tax exclusion or exemption.

Section 17. Tax Covenants. In order to preserve the exclusion of interest on the Refunding Bonds from gross income for federal income tax purposes and as an inducement to the holders of the Refunding Bonds, the Town represents, covenants and agrees that:

(a) No person or entity, other than the Town or another state or local governmental unit, will use proceeds of the Refunding Bonds or property secured by the Refunding Bond proceeds other than as a member of the general public. No person or entity other than the Town or another state or local governmental unit will own property financed by the Refunding Bond proceeds or will have actual or beneficial use of such property pursuant to a lease, a management or incentive payment contract, an arrangement such as tak-or-pay or output contract or any other type of contract that differentiates that person's or entity's use of such property from the use by the public at large.

(b) No Refunding Bond proceeds will be loaned to any entity or person. No Refunding Bond proceeds will be transferred, directly or indirectly, or deemed transferred to a non-governmental person in any manner that would in substance constitute a loan of the Refunding Bond proceeds.

(c) The Town will not take, or cause or permit to be taken by it or by any part subject to its control, or fail to take or cause or permit to fails to be taken by it or by any part under its control, any action with respect to the Refunding Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the Refunding Bonds pursuant to Section 103 of the Code, nor will the Town act in any other manner which would adversely affect such exclusion. The Town further covenants that it will not make any investment or do any other act or thing during the period that any Refunding Bond is outstanding hereunder which would cause any Refunding Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations applicable thereto as in effect on the date of delivery of the Refunding Bonds.

(d) The Town will, to the extent necessary to preserve the exclusion of interest on the Refunding Bonds from gross income for federal income tax purposes, rebate all require arbitrage profits on Refunding Bond proceeds or other moneys treated as Refunding Bond proceeds to the federal government and will set aside such moneys in a Rebate Account to be held by the Clerk-Treasurer in trust for such purpose.

(e) All officals, officers, members, employees and agents of the Town are hereby authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the Town as of the date that the Refunding Bonds are issued, and to make covenants on behalf of the Town evidencing the commitments made herein and to do all such other acts necessary or appropriate to carry out this Ordinance. In particular and without limiting the foregoing, any and all appropriate officals, officers, members, employees and agents of the Town are authorized to certify and/or enter into covenants on behalf of the Town regarding (i) the facts and circumstances and reasonable expectations fo the Town as of the date that the Refunding Bonds are issued and (ii) the commitments made herein by the Town regarding the amount and use of the proceeds of the Refunding Bonds.

(f) The Clerk-Treasurer is hereby authorized to employ consultants and attorneys from time to time to advise the Town with respect to the requirements under federal law for the continuing preservation of the exclusion of interest on the Refunding Bonds from gross income for purposes of federal income taxation, as described in this Section 17.

Section 18. Supplemental Ordinances. Without notice to or consent of the owners a majority of bonds herein authorized, the Town may, from time to time and at any time, adopt an ordinance supplemental hereto (which supplemental ordinance or ordinances shall thereafter form a part hereof) for any of the following purposes:

(a) To cure any ambiguity or formal defect or omission in this Ordinance or in any supplemental ordinance or to make any other change authorized herein;

(b) To grant to or confer upon the owners of the bonds herein authorized any additional benefits, rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners of the bonds herein authorized or to make any change which, in the judgment of the Town, is not to the prejudice of the owners of the bonds herein authorized;

(c) To modify, amend or supplement this Ordinance to permit the qualification of the bonds herein authorized for sale under the securities laws of the United States of America or of any of the states of the United States of America or to obtain or maintain bond insurance with respect to payments of principal of and interest on bonds herein authorized;

(d) To provide for the refunding or advance refunding of the bonds herein authorized;

(e) To procure a rating on the bonds herein authorized from a nationally recognized securities rating agency or agencies designated in such supplemental ordinance if such supplemental ordinance will not adversely affect the owners of the bonds herein authorizedl; and

(f) Any other purpose which, in the judgment of the Town,does not adversely affect the interests of the owners of the bonds herein authorized.

Subject to the terms and provisions contained in this Section 18, and not otherwise, the owners of not less than sixty-six and two-thirds percent (66 2/3%) in aggregate principal amount of the bonds issued pursuant to this Ordinance and then outstanding shall have the right, from time to time anything contained in this Ordinance to the contrary notwithstanding, to consent to and approve the adoption by the Town of such ordinance or ordinances supplemental hereto as shall be deemed necessary or desirable by the Town for the purpose of modifying, altering, amending, adding or rescinding in any particular any of the terms or provisions contained in this ordinance, or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting:

(a) An extension of the maturity of the principal of or interest on any bond issued pursuant to this ordinance; or

(b) A reduction in the principal amount of any bond or the redemption premium or the rate of interest thereon; or

(c) The creation of a lien upon or a pledge of the revenues of the waterworks ranking prior to the pledge thereof created by this ordinance; or

(d) A preference or priority of any bond or bonds issued pursuant to this ordinance over any other bond or bonds issued pursuant to the provisions of this ordinance; or

e) A reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance.

The owners of not less than sixty-six and two-thirds percent (66-2/3%) in aggregate principal amount of the bonds outstanding at the time of adoption of such supplemental ordinance shall have consented to and approved the adoption thereof by written instrument to be maintained on file in the office of the Clerk-Treasurer of the Town. No owner of any bond issued pursuant to this Ordinance shall have any right to object the adoption of such supplemental ordinance or to object to any of the terms and provisions contained therein, or to enjoin or restrain the Town or its officers from adopting the same, or from taking any action pursuant to the provisions thereof. Upon the adoption of any supplemental ordinance pursuant to the provisions of this section, this Ordinance shall be, and shall be deemed, modified and amended in accordance therewith, and the respective rights, duties and obligations under this Ordinance then outstanding, shall thereafter be determined, exercised and enforced in accordance with this ordinance, subject in all respect to such modifications and amendments. Notwithstanding anything contained in the foregoing provisions of this Ordinance, the rights and obligations of the Town and the owners of the bonds authorized by this Ordinance, and the terms and provisions of the bonds and this Ordinance, or any supplemental ordinance, may be modified or altered in any respect with the consent of the Town and the consent of the owners of all the bonds issued pursuant to this Ordinance then outstanding.

Section 19. Repeal of Conflicting Ordinances. All ordinances and parts of ordinances in conflict herewith are hereby repealed.

Section 20. Rates and Charges. The estimate of the rates and charges which will be needed and charges to the general classes of users or property to be served by the waterworks in order to provide sufficient moneys to make payments of principal of and interest of the Refunding Bonds along with other payments identified in this Ordinance, is set forst in an ordinance entitled “An Ordinance Amending Ordinance No.8-2010. Establishing New Rates and Charges for the Use and Services Rendered by the Water Works System of the Town of Lapel, Indiana”, adopted on October 20, 2011.

Section 21. Compliance with Tax Sections. Notwithstanding any other provisions contained in this ordinance, the covenants and authorizations contained in this ordinance (“Tax Sections”) which are designed to preserve the tax exempt status of interest on the Refunding Bonds or the exclusion of interest on the Refunding Bonds from gross income under federal law(“Tax Exemption”) need not be complied with if the Town received an opinion of nationally recognized bond counsel that any Tax Section is unneccessary to preserve the Tax Exemption.

 

Section 22. Qualified Tax-Exempt Obligations. The Refunding Bonds are hereby designated as ‘Qaulified tax exempt obligations’ for the purposes of Paragraph (3) of Section 265(b) of the Code, and any or all officials, officers, members, employees and agents of the Town are hereby authorized to execute on behalf of the Town any documents necessary or appropriate to evidence further such designation.The reasonably anticipated amount of “tax-exempt obligations” (as such term is used in Section 265 (b) of the Code)(other than obligation described in section 265(b)(3)(C)(ii) if the Code) which will be issued by the Town or otherwise on behalf of the Town or subordinate entities during calendar year 2021 does not exceed $10,000,000. The designation set forth in this Section 22 as to the Refunding Bonds may be revoked by the Clerk-Treasurer in the Clerk-Treasurer’s Certificate.

Section 23. Clerk-Treasurer’s Certificate: Disclosure. The Clerk-Treasurer shall, prior to the sale of the Refunding Bonds, set forth is a certificate (the “ Clerk-Treasurer’s Certificate”) the amortization schedule for the Refunding Bonds, the percentage of par at which the Refunding Bonds shall be sold and any other matters required by this Ordinance to be provided in the Clerk-Treasurer’s Certificate.

If required by the Rule hereinafter defined, the Refunding Bonds shall be offered and sold pursuant to an Official Statement with respect to the Refunding Bonds (the ‘Official Statement”), to be made available and distributed in such manner, at such times, for such periods and in such number of copies as may be required pursuant to Rule 15c2.12 promulgated by the United States Securities and Exchange Commission (the “Rule”) and any and all applicable rules and regulation of the Municipal Securities Rulemaking Board. The Town Council hereby authorizes the Town Council President and Clerk-Treasurer (a) to authorize and approve a Preliminary Official Statement, as the same may be appropriately confirmed, modified and amended for distribution as the Preliminary Official Statement of the Town;(b) on behalf of the Town, to designate the Preliminary Official Statement, as the final Official Statement,with respect to the Refunding Bonds subject to completion as permitted by and otherwise pursuant to the Rule;and (c) to authorize and approve the Preliminary Official Statement to be placed into final form and to enter into such agreements or arrangements as may be necessary in order to provide for the distribution of a suffucient number of copies of the Official Statement under the Rule. The Town Council President and the Clerk-Treasurer are further authorized to execute an agreement in connection with the offering of the Refunding Bonds in accordance with the Rule by which the Town agrees to undertake such continuing disclosure obligations as may be required under the Rule.

Section 24. Further Actions. The Town Council hereby requests, authorizes and directs the Town Council President and the Clerk-Treasurer, and each of them, for and on behalf of the Town, to prepare, execute and deliver any and all instruments, letters, certificates and documents as are determined to be necessary or appropriate to consummate the actions contemplated by this Ordinance, and such determination shall be conclusively evidenced by delivery thereof. The instruments, letters, certificates, agreements and documents necessary to consummate the transactions contemplated by this Ordinance shall, upon execution, as set forth herein, constitute the valid and binding obligations or representations and warranties the full performance and satisfaction of which by the Town are hereby authorized and directed.

Section 25. Payments on Holidays. If the date making any payemnt of the last date for the performance of any act or the exercising of any right, as provided in this Ordinance, shall be a legal holiday or a day on which banking institutions in the Town or the city of the town in which the Registrar and Paying Agent is located are typically closed, such payment may be made or act performed or done on the next succeeding day not a legal holiday or a day on which such baking institution are typicall closed, with the same force and effect as if done on the nominal date of this Ordinance, and no interest shall accrue for the period after such nominal date.

 

Section 26. Partial Invalidity.
If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforcable for any reason, the invalidity or unenforcability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance.

Section 27. Captions. The captions used in this Ordinance are inserted only as a matter of convenience and reference, and such captions are not intended and shall not be construed to define, limit, establish, interpret, or describe the scope, intent, or effect of any provision of this Ordinance .

Section 28. Effectiveness. This Ordinance shall be in full force and effect from and after its passage.

APPENDIX A TO THE BOND ORDINANCE

FORM OF REGISTERED BOND

 

 

UNITED STATES OF AMERICA
STATE OF INDIANA, COUNTY OF MADISON TOWN OF LAPEL, INDIANA
WATERWORKS REFUNDING REVENUE BOND, SERIES 2021A

 

The Town of Lapel (the "Town"), in Madison County, State of lndiana, for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, upon surrender hereof, solely out of the special revenue fund hereinafter referred to, the Principal Amount specified above, on January1 in the years and in the amounts as set forth on Schedule A attached hereto, unless this bond be subject to and be called for redemption prior to maturity as hereinafter provided, and to pay interest thereon until the Principal Amount is fully paid at the Interest Rate per annum specified above from the interest payment date to which interest has been paid next preceding the Authentication Date of this bond unless this bond is authenticated after the fifteenth day of the month preceding an interest payment date and on or before such interest payment date, in which case it shall bear interest from such interest payment date, and unless this bond is authenticated on or before , in which case it shall bear interest from the Original Date, which interest is payable on January 1, 20_, and semiannually on each January 1 thereafter and July 1 thereafter. Interest shall be calculated on the basis of a three hundred sixty-five (365) day year.

The principal of and premium, if any, on this bond are payable at the office of the Clerk-Treasurer of the Town, acting as registrar and paying agent, or of any successor registrar and paying agent appointed under the Ordinance defined and described herein (the "Registrar" and the "PayingAgent"). Interest hereon will be paid by cash or draft mailed or delivered to the Registered Owner at the address as it appears on the registration books of the Registrar as of the fifteenth day of the month immediately preceding the applicable interest payment date or at such other address as is provided to the Paying Agent in writing by such Registered Owner. All payments on this bond shall be made in any coin or currency of the United States of America which, on the dates of such payments, shall be legal tender for the payment of public and private debts.

 

THE TOWN IS NOT AND SHALL NOT BE OBLIGATED TO PAY THE PRINCIPAL OF OR INTEREST ON THIS BOND EXCEPTFROM THE HEREINAFTER DESCRIBED SPECIAL FUND, AND NEITHER THIS BONDNOR ANY OTHER BOND OF THIS ISSUE SHALL CONSTITUTE AN INDEBTEDNESS OF THE TOWN WITHIN THE MEANING OF THE PROVISIONS AND LIMITATIONS OF THE CONSTITUTION OF THE STATE OF INDIANA.

The Town, The Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of the principal hereof and the interest due hereon and for all other purposes, and none of the Town, the Registrar and the Paying Agent shall be affected by any notice to the contrary.

This bond shall not be valid or become obligatory for any purpose or entitled to any benefit under the Ordinance unless and until the certificate of authentication hereon shalll have been executed by a duly authorized representative of the Registrar.

This bond is one of an authorized issue of the bonds of the Town of Lapel, Indiana, of like date, tenor and effct, except as to numbering, interest rates and dates of maturity, in the total amount of Dollars ($ ) numbered 21 AR-1 upward, issued for the puprose of providing funds to pay the cost of refunding certain outstanding waterworks revenue bonds of the Town and paying all expenses necessarily incurred in connection with the issuance of such bonds, as authorized by an ordinance adopted by the Town Council of the Town on the day of , 2021, entitled “ AN ORDINANCE THE CURRENT REFUNDING OF THE TOWN OF LAPEL, INDIANA,
WATERWORKS REVENUE BONDS, SERIES 2000, AND THE TOWN OF LAPEL, INDIANA, WATERWORKS REVENUE BONDS, SERIES 2011, THE ISSUANCE AND SALE OF
REFUNDING REVENUE BONDS TO PROVIDE FUNDS FORTHE PAYMENT OF THE COSTS THEREOF, AND THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE
REVENUES OF SUCH WATERWORKS AND OTHER RELATED MATTERS” (the “Ordinance”), and in strict compliance with the provisions of the Indiana Code 8-1.5, Indiana Code 5-1–5, and the laws amendatory thereod and supplemental thereto (the “Act”).

This bond is issuable only in fully registered form in the denomination of $ of an integral multiple of thereof not exceeding the aggregate principal amount of the bonds of this issue maturing in any one year.

Pursuant to the provisions of the Act and the Ordinance, the principal of and interest on this bond and all other bonds of this issue, together with any bonds hereafter issued ranking on a parity therewith, are payable solely from the “Waterworks Special Fund” created by the Ordinance (the “Special Fund”) to be provided from the net revenues (herein defined as the gross revenues of waterworks of the Town remaining after payment of reasonable expenses of operation, repair and maintenance) of the waterworks of the Town.

The Town is not and shall not be obligated to pay this bond or the interest thereon except as provided and only from the sources described herein, and this bond does not and shall not constitute a corporate indebtedness of the Town within the meaning of the provisions and limitations of the constitution of the State of Indiana.

 

The Town covenants that it shall, to the full extent permitted by law, establish, fix, maintain and collect reasonable and just rates and charges for the use of and the services rendered by the waterworks so that such rates and charges will provide revenues at least sufficient in each year to pay all the legal and other necessary expenses incident to the operation of the waterworks, including maintenance costs, operating charges, upkeep, repairs, and interest charges on bonds or other obligations, includingleases;(b) provide asinking fund for the liquidation of bonds or other obligations, including leases;(c) provide a debt service reserve on bonds or other obligations, including leases, as required by the terms of such obligations; (d) provide adequate money for working capital;(e) provide adequate money for making extensions aid replacements; and provide money for the payment of any taxes that may be assessed against the waterworks; and that it will in all other respects, faithfully comply with all provisions of the Act pursuant to which this bond is issued. In the event the Town shall make any default in the payment of the principal of or the interest on this bond, the Registered Owner of this bond may, by action or other proceeding, compel performance of all duties required by the Act of the Town or any officer of the Town including the collecting of reasonable and sufficient rates lawfully established for services rendered by the waterworks, the segregation of the income and revenues of the waterworks, and the segregation of the revenues and the respective funds anal accounts as specified in the Ordinance.

The bonds of this issue are subject to redemption prior to maturity, at the option of the Town, in whole or in part, on any date on or after , in order of maturity selected by the Town and by lot within any such maturity or maturities by the Registrar at a redemption price equal to one hundred percent (100%) of the principal amount of each bond to be redeemed, plus accrued interest to the date of redemption.

Notice of any such redemption shall be sent by registered or certified mail to the Registered Owner of this bond not less than thirty (30) days prior to the date fixed for redemption, unless notice is waived by the Registered Owner; provided, however, that failure to give such notice, or any defect therein, with respect to any such bond will not affect the validity of notice of redemption of any other such bonds. The notice shall specify the redemption date and place of redemption and the registration numbers (and in case of partial redemption the respective principal amounts) of the bonds called for redemption. Interest on bonds so called for redemption shall cease to accrue on the redemption date fixed in such notice, so long as sufficient funds are available at the place of redemption to pay the redemption price on the redemption date or when presented for payment.

Prior to the date fixed for redemption, funds shall be deposited with the Paying Agent to pay, and the Paying Agent is hereby authorized and directed to apply such funds to the payment of the bonds or portions thereof called, together with accrued interest thereon to the redemption date and any required premium. No payment shall be made by the Paying Agent upon any bond or any portion thereof called for redemption until such bond shall have been delivered for payment or cancellation or the Registrar shall have received the items required by the Ordinance with respect to any mutilated, lost, stolen or destroyed bond.

If this bond shall have become due and payable in accordance with its terms or this bond or a portion hereof shall have beta duly called for redemption or irrevocable instructions to call this bond or a portion hereof for redemption shall be given and the new whole amount of the principal of and premium, if any, and interest, so due and payable upon this bond or such portion hereof shall be paid, or (i) sufficient moneys, or (ii) direct obligation of or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, the principal of and interest on which when due will provide sufficient moneys for such purpose, or (iii) time certificates of deposit of a bank or banks, fully secured as to both principal and interest by obligations of the kind described in (ii) above, the principal and interest on which when due will provide sufficient moneys for such purpose, shall be held in trust for such purpose, and provision shall be made for paying all fees and expenses for the redemption, then and in that case this bond or such portion hereod shall no longer be deemed outstanding, entitled to the pledge of the net revenues of the waterworks or an obligation of the Town.

If this bond shall not be presented for payment or redemption on the date fixed therefor, the Town may deposit in trust with the Paying Agent an amount sufficient to pay such bond or the redemption price, as appropriate , and thereafter the Registered Owner shall look only to the funds deposited in trust with the Payin Agent for payment, and the Town shall have no further oligation or liability with respect thereto.

All bonds which have been redeemed shall be cancelled and cremated or otherwise destroyed and shall not be reissued and a counterpart of the certificate of cremation or other destruction evidencing such cremation or other destruction shall be furnished by the Registrar to the Town; provided, however, that one or more new registered bonds shall be issued for the unredeemed portion of any bond without charge to the holder thereof.

Subject to the provisions of the Ordinance regarding the registration of such bonds, this bond and all other bonds of the issue of which this ond is a part are fully negotiable instruments under laws of the State of Indiana. This bond is transferrable or exchangeable only on the books of the Town maintained for such purpose at the principal corporate trust office of the Registrar, by the Registered Owner hereof in person, or by his attorney duly authorized in writing, upon surrender of this bond together with a written statement of transfer or exchange satisfactory to the Registrar duly executed by the Registered Owner or his attorney duly authorized in writing, and thereupon a new fully registered bond or bonds in the same aggregate principal amount and of the same maturity shall be executed and delivered in the name of the transferee or transferees or the Registered Owner, as the case may be, in exchange therefor. This bond may be transferred or exchanged without cost to the Registered Owner hereof or his attorney duly authorized in writing, except for any tax or other governmental charge which may be required to be paid with respect to such transfer or exchange. The Registrar shall not be obligated to make any exchange or transfer of this bond (i) during the fifteen (15) days immediately preceeding an interest payment date on this bond, or (ii) after the delivery of any notice calling this bond for redemption. The Town, the Registrar and Paying Agent for this bond may treat and consider the person in whose mane this bond is registered as the absolute owner hereof for all purposes including for the purpose of receiving payment of, or on account of, the principal hereof and the redemption premium, if any, and interest due hereon.

In the event this bond is mutilated, lost, stolen or destroyed, the Town may cause to execute and the Registrar may authenticate a new bond of like date, maturity and denomination as this bond, which new bond shall be marked in a manner to distinguish it from this bond; provided, however, that the case of this bond being mutilated, this bond shall first be surrendered to the Registrar , and in the event of this bond being lost, stolen, or destroye, there shall first be furnished to the Registrar as the evidence of such loss, theft or destruction satisfactory to the Town and to the Registrar, together with indemnity satisfactory to them. In the event that this bond, being mutilated, lost, stolen or destroyed, shall have matured or been called for redemption, instead of causing to be issued a duplicate bond, the Registrar and Paying Agent may pay this bond upon surrender of this mutilated bond or upon satisfactory indemnity and proof of loss, theft or destruction in the event this bond is lost, stolen or destroyed. In such event, the Town and the Registrar may charge the owner of this bond with their reasonable fees and expenses in connection with the above.

Every substitute bond issued by reason of this bond being lost, stolen or destroyed shall, with respect to this bond, constitute a substitute contractual obligation of the Town, whether at not this bond, being lost, stolen or destroyed shall be found any time, and shall be entitled to all the benefits of the Ordinance, equally and ratably with any and all other bonds duly issued thereunder.

The Town has designated the bonds of this issue as qualified tax-exempt obligations to qualify the bonds for the $10,000,000 exception from the provisions of Section 265(6) of the Internal Revenue Code of 1986 relating to the disallowance of 100% of the deduction for interest expense allocable to tax-exempt obligations.

In the manner provided in the Ordinance, the Ordinance and the rights and obligations of the Town and the owners of the bonds of the issue authorized thereunder, including this bond, may, subject to certain exceptions as stated in the Ordinance, be modified or amended with the consent of at least sixty-six and two-thirds percent (66-2/3%) in aggregate principal amount of the bonds exclusive of any such bonds which may be owned by theTown.

The bonds authorized and issued pursuant to the Ordinance, including this bond, are subject to defeasance prior to redemption or payment as provided in the Ordinance, and the owner of this bond, by the acceptance hereof, hereby agrees to all the terms and provisions contained in the Ordinance.


The Town hereby certifies, recites and declares that all facts, conditions, and things required to be done precedent to and in the preparation, execution, issuance and delivery of this bond have been done and performed and in regular and due form as required by law.

IN WITNESS THEREOF, the Town of Lapel, in Madison County, State of Indiana, has caused this bond to be executed in its corporate name by the manual or facsimile signature of the President of its Town Council, and its corporate seal be hereunto affixed and attested by the signature or facsimile of its Clerk-Treasurer.

Further Information

18-2021

The Town of Lapel, through the Town Board, desires to amend the current Fee Schedule as established in Ordinance No. 4-2009, and amended by Ordinance No. 5-2010 & Ordinance 1-2017, that fee schedule including all permit schedules of fees.

BE IT ORDAINED, by the Town Board of Lapel, that Ordinance No. 4-2009 and Ordinance No, 5-2010 and Ordinance No. 1-2017 are now amended and the fees adopted are as follows:

PROPOSED FEE SCHEDULE

  • Site Development Plan Review, $1.05 rate of consultant to review plan
  • PUD Concept Plan, $1,200 + $50
  • PUD Ordinance, $750 + $50 per acre.
    PUD Variance, $500 + $50 per acre.
  • Rezoning (zone Map amendment), $325
  • Special Use Petitions, $300
  • Appeal $0 + legal notice
  • Administrative Plat Review, $200 + $50 per lot
  • Major Subdivision Sketch Plan Review 4 lots or less, $400 + $35 per lot
  • Major Subdivision Sketch Plan Review 5 or more lots, $600 + $30 per lot
  • Waiver of Subdivision Regulations, $250 per waiver
  • Re-Plat Review, $100 + $50 per lot

Single Family Dwelling Units (Building Permit)

  • $400 + $0.10 per sq ft.

Two Family Dwelling Units (Building Permit)

  • $400 + $0.10 per sq ft.

Multi Family (Building Permit)

  • $400 + $50 per unit + $0.10 per sq ft.

Commercial (Building Permit)

  • 600 + $0.15 per sq.ft.

Industrial (Building Permit)

  • $600 + $0.15 per sq.ft.

Certificate of Occupancy

  • 1-2 Family Dwelling $50
  • Multi-Family Dwelling $100
  • Commercial / Industrial $100

Additions

  • 1-2 Family dwelling $150 + 0.10 per sq. ft.
  • Multi-Family $250 + $0.10 per sq ft.
  • Non-Residential $250 + $0.10 per sq ft.

Remodels

  • 1-2 Family Dwelling $100 + $0.15 per sq. ft.
  • Multi-Family $125 + $100 per unit + $0.15 per sq. ft.
  • Non-Residential $350 + $0.15 per sq. ft.

Detached Garages, Pole Barnes and Accessory Structures

  • Under 100 sq. ft. AND no foundation, $0
  • 100 sq. ft. and above, $100 + $0.10 per sq. ft.
  • In-ground Swimming Pool (filtered), $100
  • Above Ground (filtered, with electric), $50
  • Spas (with electric), $50
  • Decks, $50 over 50 sq ft.
  • Fences, $50
  • Driveway $50 Residential, Non-Residential $100

Cellular Facilities

  • New Tower $750
  • Additional or Modification $250

Improvement Location / Structural Permits

  • Residential
    • Foundation Permit, $100
    • Roofing Permit, $50
    • Electric $75
    • Plumbing, HVAC Permit, $50
    • Driveway, $2
    • Curb-cut Permit, $25
    • Combination
      • 1-2 Family Dwelling $100
      • Multi-Family $100 + $50 per unit.
      • Non-Residential $200
    • Demolition
      • Residential $100
      • Non-Residential $200 + $50 per additional building
      • Accessory Structure $50

Signs

  • Signs (permanent with base), $50 + $1 per sq. ft. over 16 sq. ft
  • Sign violation, $50

Additional Fees

  • Temporary Use, $50
  • Additional Inspection due to Incomplete Work $50
  • Amendment to approved permit $25
  • Stop Work Order Violation $100
  • Legal Notice Requirement $25

Further Information

19-2021

AN ORDINANCE OF THE LAPEL TOWN COUNCIL ADOPTING PRIMARY ELECTIONS AS THE METHODOLOGY FOR NOMINATION OF MAJOR PARTY CANDIDATES FOR TOWN OFFICES

WHEREAS, Indiana Code 3-8-5-2 provided methodologies by which candidates of major political party, as that term is defined by Indiana Code 3-5-2-30, are nominated for town political offices; and,

WHEREAS, currently, the Town of Lapel’s major party candidates are nominated for the town office through a town convention; and

WHEREAS, the Town Council has determined that, in the interest of providing the citizens of Lapel with increased participation in town government through the selection of candidates, that it is desirable for future nominations of major party candidates for Lapel town offices be selected in primary election.

NOW, THEREFORE, BE IT ORDAINED BY THE LAPEL TOWN COUNCIL that, effective January 1, 2022, and pursuant to I.C. 3-8-5-2(d), that it is estalished that primary elections shall be used to nominate major political party candidates ot the Town of Lapel offices, and

BE IT FURTHER ORDAINED, that the Clerk-Treasurer of the Town of Lapel is directed to file a certified copy of this Ordinance with the Madison County Circuit Court, as soon as practicable.

 

 

Further Information

20-2021

AN ORDINANCE OF THE TOWN COUNCIL OF LAPEL AMENDING CHAPTER 24.2 OF THE TOWN OF LAPEL, INDIANA CODE OF ORDINANCES REGARDING TAKE-HOME CAR POLICY FOR FULL TIME POLICE OFFICERS

WHEREAS, on March 5, 2015 the Lapel Town Council adopted an Ordinance establishing a take-home car policy, which is currently codified in the Town of Lapel Code of Ordinances, Chapter 24.2 and which policy was established in response, in part, to an enlargement in the Town of Lapel's municipal limits; and

WHEREAS, the Lapel Town Council, now deems it desirable to amend Chapter 24.2 of the Town of Lapel Code of Ordinances, to allow police officers personal use of their assigned police cars pursuant to a policy attached hereto as Exhibit "A" (hereafter referred to as the "Personally Assigned Vehicle Policy"); and,

WHEREAS, the Town Council, finds it in the best interest of the Town of Lapel to adopt the policy considerations contained in Article II of the Personally Assigned Vehicle Policy; and, 

WHEREAS, the Town Council of Lapel finds it desirable to amend the Take-Home Policy such that all provisions of Chatper 24.2 of the Lapel Code of Ordinances in conflict with the Personally Assigned Vehicle Policy are hereby deleted and replaced with those appropriate portions of the Personally Assigned Vehicle Policy, attached hereto.

NOW, THEREFORE BE IT ORDAINED by the Town Council of the Town of Lapel, Madison County, Indiana, that Chapter 24.2 of the Town of Lapel Code of Ordinances is hereby amended as follows:

1. Exhibit A, Personally Assigned Vehicle Policy, as attached hereto, is hereby added to the previously adopted Take Home Car Policy codified in the Town of Lapel's Code of Irdinances;

2. All provisions contained in Chapter 24.2 of the Town of Lapel Code of Ordinances, in conflict with the Personally Assigned Vehicle Policy attached hereto as Exchibit A, are hereby deleted and replaced by the appropriate provisions contained in Exhibit A.

This Ordinance shall be effective upon passage.

SO ORDAINED by the Lapel Town Council this 16th day of December 2021.