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516174
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<br />as hereinafter provided, to ........................................ , or registered assigns, on July 1,. ....... , upon presenta-
<br />tion and surrender of this bond, the sum of ................ THOUSAND DOLLARS, with interest thereon at
<br />the rate of ......qb per annum, payable semiannually on the first days of January and July of each and every
<br />year from ............................ until this bond is paid; provided, however, that if at the maturity date of this
<br />bond, or, if the same is redeemable and shall be duly called for redemption, then at the date fixed
<br />for redemption, funds are available for the payment or redemption thereof, as provided in the resolution
<br />hereinafter mentioned, this bond shall then cease to bear interest. Both principal and interest are payable
<br />in lawful money of the United States of America at the office of the Director of Finance of the City
<br />of Santa Ana, in said city, or, at the option of the holder hereof, at any paying agent of the city in Los
<br />Angeles or San Francisco, California, Chicago, Illinois, or in New York, New York.
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<br /> This is one of a duly authorized issue of bonds of the city designated "1962 Water Revenue Bonds,
<br />Series C", hereinafter called "the bonds", all of which have been issued pursuant to the Charter of said
<br />city, the Revenue Bond Law of 1941 (Chapter 6, Part 1, Division 2, Title 5 of the Government Code
<br />of the State of California) and Article 8, Chapter 3, Part I, Division 2, Title 5 of said Government Code
<br />for the purpose of the acquisition and construction of a water system for said city and the creation of
<br />said issue and the terms and conditions of the bonds are provided for by the resolution of the City Council
<br />of said city authorizing the bonds adopted May 6, 1974, designated Resolution No ................. and this
<br />reference incorporates said resolution and said laws herein, and by acceptance hereof the holder of this
<br />bond and the coupons hereto attached assents to said terms and conditions. Said resolution is adopted
<br />under, and this bond and the interest coupons hereto attached are issued under and are to be construed
<br />in accordance with the Charter of said city and the laws of the State of California.
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<br /> This bond and the interest hereon and any premium upon the redemption hereof are not a debt
<br />of the City of Santa Aha, nor a legal or equitable pledge, charge, lien or encumbrance upon any of its
<br />property or upon any of its income, receipts, or revenues except the gross revenues of the enterprise
<br />(as defined in said resolution) pledged to its payment, and the principal of and the interest on this bond
<br />and any premium upon the redemption hereof are payable solely from the gross revenues of the enterprise
<br />pledged to its payment and said city is not obligated to pay such principal, interest and premium except
<br />from said gross revenues. The Revenue Fund is established under and pursuant to the Revenue Bond
<br />Law of 1941, and under the provisions of said resolution authorizing the issuance of this bond the gross
<br />revenues received from the enterprise are required to be deposited to the credit of said Revenue Fund
<br />and used only for the purposes authorized by said resolution, including the payment of principal and
<br />interest of the issue of bonds of which this is one.
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<br /> By the terms of said Revenue Bond Law and by covenant expressed in said resolution, the city
<br />is obligated to prescribe, revise and collect charges for the services, facilities and water of the water
<br />system of the city such as to provide revenues sufficient to pay the interest on and principal of the bonds
<br />as they become due and payable in addition to all other payments required for compliance with said
<br />resolution and the necessary and reasonable maintenance and operation costs of the water system, is
<br />prohibited from issuing bonds having any priority with respect to payment from the gross revenues
<br />of the enterprise, and is subject to conditions with respect to any sale of said water system. In the manner
<br />provided in the resolution, any or all of the obligations referred to in this paragraph and certain other
<br />obligations mentioned in said resolution may be waived with the consent of the holders of 66% in
<br />aggregate principal amount of the bonds then outstanding (exclusive of issuer-owned bonds).
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<br /> This bond is callable and redeemable prior to maturity in accordance with the provisions for redemp-
<br />tion endorsed hereon.
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<br /> This bond is issued in fully registered form and is non-negotiable. This bond may be exchanged
<br />for a like aggregate principal amount of bearer bonds of the same series, interest rate and maturity bearing
<br />all unmatured coupons or for a like aggregate principal amount of fully registered bonds of other
<br />authorized denominations of the same series, interest rate and maturity and bearer bonds bearing all
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