An Ordinance of the Borough of Bolivar Authorizing the Incurrence of Lease Rental Debt by Guaranty Agreement

Be it enacted and ordained and it is hereby ordained by the Council of the Borough of Bolivar in session lawfully assembled as follows:

Section 1

The Borough of Bolivar shall incur lease rental debt by Guaranty Agreement for the Tri-Community Water and Sewer Authority project which consists of the construction and operation of a sewage collection, conveyance and treatment facility in certain areas of the Borough of Bolivar, the Township of Fairfield, and the Township of West Wheatfield. When completed the system will service approximately six hundred seventy-six customers, mostly personal residences. The system design has been approved by the Pennsylvania Department of Environmental Resources and is expected to substantially reduce health hazards in the communities served as well as downstream in the Conemaugh River. The estimated life of the project is one hundred years for the collection and conveyance system and forty to fifty years for the treatment facility.

Section II

The aggregate principal amount of indebtedness to be secured by the instrument evidencing lease rental debt is $4,050,000.00. the maximum principal amount of indebtedness for which the Borough of Bolivar may become liable is one third (1/3) of that amount of $1,350,000.00.

Section III

The debt to be incurred is Lease Rental Debt.

Section IV.

The Mayor of the Borough of Bolivar, the Council and the Secretary of the Borough and their successors are authorized and directed to prepare and certify and to file the debt statement required by Section 410 of the Local Government United Debt Act, to execute and deliver the instrument evidencing lease rental debt; and to take other necessary action with the stipulation that the designation of specified officers may be changed from time to time thereafter.

Section V.

The Mayor of the Borough of Bolivar, the Council and the Secretary of the Borough are authorized to prepare and file any statements required by Article II of the Local Government United Debt Act which are necessary to qualify all or any portion of the debt for exclusion from the Borough's debt limit.

Section VI.

The Mayor of the Borough of Bolivar, the Council and the Secretary of the Borough are authorized to execute and deliver a Guaranty Agreement and other papers required by the Local Government Unit Debt Act.

Section VII

The Borough of Bolivar covenants that it shall:

(a) Include the amounts payable in respect of its guaranty for each fiscal year in which such sums are payable in its budget for that year;

(b) Appropriate such amounts from its general revenues for the payment of such guaranty; and

(c) Duly and punctually pay or cause to be paid from such revenues to the extent of its obligation, the amount payable in respect of such guaranty at the dates and places and in the manner stated in such guaranty according to the true intent and meaning thereof.

Section VIII

For such budgeting, appropriation and payment, the Borough of Bolivar hereby pledges its full faith, credit and taxing power. This covenant shall be specifically enforceable, subject, as to the enforceability of remedies, to any applicable bankruptcy, insolvency, moratorium or other laws or equitable principles affecting the enforcement of creditors rights generally. The Borough agrees that this covenant may be enforced against it by the Pennsylvania Infrastructure Investment Authority or its assigns or successors as provided in the Local Government Unit Debt Act.

Section IX

If any clause, provision or section of this Ordinance is held illegal or invalid by any court, the invalidity of such clause, provision or section shall not affect any of the remaining clauses, provisions or sections thereof, and this Ordinance shall be construed and enforced as it such illegal or invalid clause, provision or section had not been contained herein.

Section X

The range of lease rental payments is set forth in the Debt Service Schedule attached hereto as Exhibit "A" (proposed Debt Service Schedule.)

Section XI

The effect of this Ordinance shall become operative upon all of the other participating municipal governments enacting a similar Ordinance and the enactment by Resolution of the final Debt Service Schedule to finalize Exhibit "A"

Section XII

This Ordinance shall become effective on the date specified under the provisions of the Local Government Unit Debt Act.

Enacted and Ordained this 2nd day of October 1989

John E. Seidell

Council President

Attest:

Florine Bella

Secretary

Original Ordinance in Vault