HomeMy WebLinkAbout01759This bond is one of an issue of two thousand two
hundred twenty water revenue bonds of like amount, date
and tenor in the total principal sum of $2,200,000, which
bonds are issued pursuant to ordinances of the city duly and
regularly adopted, for the purpose of providing funds to
acquire, construct and install certain additions, better-
ments and improvements to and replacements and extensions
of the existing water supply and distribution system of the
city. All of said bonds are payable solely out of the revenue
to be derived from the rentals to be paid to the city by Crown
Zellerbach Corporation under a lease of a part of such system
executed March 15, 1956, or under any subsequent lease of
the part of such system so leased if such Crown Zellerbach
Corporation lease is ever canceled, or out of the proceeds of
sale of such leased properties, or out of moneys the city may
receive from its own use and operation of such leased properties.
The City of Port Townsend hereby covenants and agrees with
the holder of this bond that it will keep and perform all the
covenants of this bond and of Ordinances No. 1318 and No. 1321
to be by it kept and performed. The city does hereby pledge
and bind itself to set aside all the money received as rentals
under said lease or leases, or out of such proceeds of sale,
or from its own use and operation of such part of its water
system so leased, and to pay the same into said Bond Redemption
Fund and the Reserve Account created therein by said Ordinance
No. 1321, all within the times provided by said ordinance.
Said amounts so pledged are hereby declared to be a prior
lien and charge upon such rental payments, upon such proceeds
of sale, or upon all moneys which the city may receive from its
own use and operation of such part of such system, superior to
all other charges of any kind or nature whatsoever.