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Fund, as hereinafter provided, to the bearer, on July 1,. ............... , upon presentation and surrender
<br />of this bond, the sum of ONE THOUSAND DOLLARS, with interest thereon at the rate of ...... %
<br />per annum, payable annually for the first year and semiannually thereafter on the first days of
<br />January and July of each and every year from the date hereof until this bond is paid, upon
<br />presentation and surrender of the respective interest coupons hereto attached; provided, however,
<br />that if at the maturity date of this bond or, if the same is redeemable and shall be duly called for
<br />redemption, then at the date fixed for redemption, funds are available for the payment or re-
<br />demption thereof, as provided in the resolution hereinafter mentioned, this bond shall then cease
<br />to bear interest. Both principal and interest are payable in lawful money of the United States of
<br />America at the office of the Director of Finance of the City of Santa Ana, in said city, or, at the
<br />option of the holder hereof, at any paying agent of the city in Los Angeles or San Francisco,
<br />California, Chicago, Illinois, or in New York, New York.
<br />
<br /> This is one of a duly authorized issue of bonds of the city designated "1962 Water Revenue
<br />Bonds, Series A," hereinafter called "the bonds", all of which have been issued pursuant the
<br />Charter of said city and to the Revenue Bond Law of 1941 (being Chapter 6, Part 1, Division 2,
<br />Title 5 of the Government Code of the State of California) for the purpose of the acquisition
<br />and construction of a water system for said city and the creation of said issue and the terms and
<br />conditions of the bonds are provided for by the resolution of the City Council of said city authoriz-
<br />ing the bonds adopted ............................ , 19.._._, designated Resolution No ................. and this refer-
<br />ence incorporates said resolution and said Chapter 6 herein, and by acceptance hereof the holder
<br />of this bond and the coupons hereto attached assents to said terms and conditions. Said resolution
<br />is adopted under, and this bond and the interest coupons hereto attached are issued under and
<br />are to be construed in accordance with the Charter of said city and the laws of the State of
<br />California.
<br />
<br /> This bond and the interest hereon and any premium upon the redemption hereof are not a
<br />debt of the City of Santa Ana, nor a legal or equitable pledge, charge, lien or encumbrance upon
<br />any of its property or upon any of its income, receipts, or revenues except the gross revenues
<br />of the enterprise (as defined in said resolution) pledged to its payment, and the principal of and
<br />the interest on this bond and any premium upon the redemption hereof are payable solely from
<br />the gross revenues of the enterprise pledged to its payment and said city is not obligated to pay
<br />such principal, interest and premium except from said gross revenues. The Revenue Fund is estab-
<br />lished under and pursuant to the Revenue Bond Law of 1941, and under the provisions of said
<br />resolution authorizing the issuance of this bond the gross revenues received from the enterprise
<br />are required to be deposited to the credit of said Revenue Fund and used only for the purposes
<br />authorized by said resolution, including the payment of principal and interest of the issue of bonds
<br />of which this is one.
<br />
<br /> By the terms of said Revenue Bond Law and by covenant expressed in said resolution~ the
<br />city is obligated to prescribe, revise and collect charges for the services, {aeilitles and water
<br />the water system of the city such as to provide revenues sufficient to pay the interest on and
<br />principal of the bonds as they become due and payable in addition to all other payments required
<br />for compliance with said resolution and the necessary and reasonable maintenance and operation
<br />costs of the water system, is prohibited from issuing bonds having any priority with respect to
<br />payment from the gross revenues of the enterprise, and is subject to conditions with respect to
<br />any sale of said water system. In the manner provided in the resolution, any or all of the obligations
<br />referred to in this paragraph and certain other obligations mentioned in said resolution may be
<br />waived with the consent of the holders of 66% in aggregate principal amount of the outstanding
<br />bonds, exclusive of issuer-owned bonds.
<br />
<br /> This bond is callable and redeemable prior to maturity in accordance with the provisions for
<br />redemption endorsed hereon.
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