§ 42-86. 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 Series 1999 bonds by and between the city and the underwriter.

Bonds means the Series 1999 bonds, and any additional bonds presently of equal standing or hereafter issued.

Escrow agent means Bank of New York, New York.

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

Mandatory redemption requirements means the mandatory prior redemption requirements of bonds that are term bonds, if any, as specified in the bond purchase agreement relating to the Series 1999 bonds or in any subsequent ordinance in connection with the issuance of additional bonds.

1988 bonds means the issuer's water supply and wastewater system revenue bonds, Series 1988, dated July 1, 1988, in the outstanding principal amount of $65,000.00, which bonds mature on September 1, 1999.

1989 bonds means the issuer's water supply and wastewater system revenue bonds, Series 1989, dated May 1, 1989, in the outstanding principal amount of $615,000.00, which bonds mature serially on September 1 of each of the years 1999 to 2001, inclusive and 2008.

1993 bonds means the issuer's water supply and wastewater system revenue bonds, Series 1993, dated June 1, 1993, in the outstanding principal amount of $525,000.00, which bonds mature serially on September 1 of each of the years 1999 to 2008, inclusive.

1993 refunding bonds means the issuer's water supply and wastewater system revenue refunding bonds, Series 1993, dated July 1, 1993, in the outstanding principal amount of $1,515,000.00, which bonds mature serially on September 1 of each of the years 1999 to 2007, inclusive.

1995 bonds means the issuer's water supply and wastewater system revenue bonds, Series 1995, dated September 1, 1995, in the outstanding principal amount of $2,300,000.00, which bonds mature on September 1 of each of the years 2004 to 2009, inclusive and 2012.

Outstanding bonds means the 1988 bonds, the 1989 bonds, the 1993 bonds, the 1993 refunding bonds and the 1995 bonds.

Outstanding ordinances means Ordinance Nos. 88-07, 89-07, 93-08, 93-10 and 95-20.

Project means the additions, extensions and improvements to the system, together with all necessary appurtenances and additions thereto.

Refunded bonds means all or a portion of the following:

(1)

The 1989 bonds as shall be finally identified in the sales resolution referred to herein, but preliminarily refers to those 1989 bonds maturing in the years 2000, 2001 and 2008, aggregating the principal amount of $500,000.00; and

(2)

The 1993 bonds as shall be finally identified in the sales resolution referred to herein, but preliminarily refers to those 1993 bonds maturing in the years 2000 to 2008, inclusive aggregating the principal amount of $485,000.00.

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 Series 1999 bonds.

Series 1999 bonds means the water supply and wastewater system revenue and revenue refunding bonds, Series 1999, of the issuer authorized by the ordinance from which this division is derived.

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 items 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 as defined in the term "outstanding ordinances."

Transfer agent means Old Kent Bank, Grand Rapids, Michigan.

Underwriter means Robert W. Baird & Co. Incorporated, as the purchaser of the Series 1999 bonds.

(Prior Code, § 2.257; Ord. No. 88-07, 5-2-1988; Ord. No. 99-03, 3-1-1999)