§ 42-40. Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Act 94 means Act 94, Public Acts of Michigan, 1933, as amended.

Bond purchase agreement means the bond purchase agreement relating to the purchase of the refunding bonds by and between the city and the underwriter.

Bonds mean the refunding bonds, and any additional bonds presently of equal standing or hereafter issued.

Issuer or city means the City of Cadillac, County of Wexford, State of Michigan.

Mandatory redemption requirements means the mandatory prior redemption requirements for bonds that are term bonds, if any, as specified in the bond purchase agreement relating to the refunding bonds or in any subsequent ordinance in connection with the issuance of additional bonds.

Outstanding bonds means the issuer's:

(1)

Water supply and wastewater system revenue bonds, Series 1988 in the aggregate outstanding principal amount of $695,000.00, which bonds are dated as of July 1, 1988, and will mature serially on September 1 of each of the years 1993 to 2003, inclusive;

(2)

Water supply and wastewater system revenue bonds, Series 1989, in the aggregate outstanding principal amount of $2,235,000.00, which bonds are dated as of May 1, 1989, and will mature serially on September 1 of each of the years 1993 to 2008, inclusive; and

(3)

The issuer's water supply and wastewater system revenue bonds, Series 1993 in the aggregate outstanding principal amount of $750,000.00, which bonds will be dated as of June 1, 1993 and will mature serially on September 1 of each of the years 1993 to 2008, inclusive.

Outstanding ordinances means Ordinance Nos. 88-07, 89-07 and 93-08.

Refunded bonds means a portion of the outstanding bonds as shall be identified in the sales resolution referred to herein.

Refunding bonds means the water supply and wastewater system revenue refunding bonds, Series 1993 of the issuer authorized by this division.

Revenues and net revenues mean the revenues and net revenues of the system and shall be construed as defined in section 3 of Act 94, including with respect to revenues, the earnings derived from the investment of moneys in the various funds and accounts established by the outstanding ordinances and this division.

Sales resolution means the sales resolution to be adopted by the issuer respecting the sale of the refunding bonds.

Sufficient government obligations means direct obligations of the United States of America or obligations, the principal and interest on which is fully guaranteed by the United States of America, not redeemable at the option of the issuer, the principal and interest payments upon which, without reinvestment of the interest, come due at such times and in such amounts as to be fully sufficient to pay the interest as it comes due on the bonds and the principal and redemption premium, if any, on the bonds as it comes due whether on the stated maturity date or upon earlier redemption. Securities representing such obligations shall be placed in trust with a bank or trust company, and if any of the bonds are to be called for redemption prior to maturity, irrevocable instructions to call the bonds for redemption shall be given to the paying agent.

System means the entire water supply and wastewater system of the city, both inside and outside the city including all plants, works, instrumentalities and properties, used or useful in connection with the supply and distribution of water as well as the collection and treatment of sanitary sewage, and all enlargements, extensions, repairs and improvements thereto hereafter made.

Transfer agent and/or escrow agent means Bank of New York, New York.

Underwriter means Robert W. Baird & Co., Inc., as representative of the purchasers of the refunding bonds.

(Prior Code, § 2.237; Ord. No. 88-07, 5-2-1988; Ord. No. 93-10, 5-3-1993)