91.160. Management--form of bonds.

MISSOURI STATUTES AND CODES

91.160. Management--form of bonds.

Management--form of bonds.

91.160. 1. The said waterworks plant and system, whenacquired, shall be subject to the control and management of aboard known as "The Board of Waterworks Commissioners", who shallhave the power to issue to the person, firm or corporation, inpayment for said waterworks system, bonds in such denomination asmay be stated in the proposition to the city or as may bedetermined by the board, which bonds shall refer to and recitesections 91.090 to 91.300, as authority for their issuance, andshall be signed by each member of the board, attested by thesecretary, under the seal of the board, and each bond shallcontain substantially the following, among other appropriaterecitals therein:

This bond shall constitute a first lien in the nature of amortgage or vendor's lien upon all the property, rights, issuesand revenue of the waterworks system in this city, or in any wayappertaining thereto, including any and all funds that may havebeen or may be derived therefrom, whether in existence at thetime of the issuing of this bond or thereafter acquired, but thisbond shall not create any personal or general liability on thepart of this city or the persons signing the same for the paymentthereof, and the same shall be paid only out of the propertyconstituting the waterworks system and the revenue derivedtherefrom, on which it shall be a first lien, as aforesaid, andin case of default in the payment of the principal hereof, or anyinterest due thereon, for a period of six months, all of the saidproperty upon which it shall be a lien, as aforesaid, shall beconveyed by the waterworks commissioners to the holders of thewaterworks bonds in the proportion that the bonds held by eachbears to the entire bond issue; provided, that said property maybe conveyed to a trustee designated by a majority of thebondholders, to be held for the use of all the bondholders in theproportion aforesaid, and the conveyance of the said waterworkscommissioners shall also convey all obligations due to the saidboard of waterworks commissioners from private corporations,individuals, or this city on account of water furnished orconsumed, and shall also convey to them, their grantees andassigns, the right, privilege and franchise to continuethereafter the maintenance and operation of said waterworkssystem for a period of thirty years, and for that purpose to havethe use of the streets, avenues, alleys and other public placesof the city to maintain and operate the said waterworks plant.

2. The said bond shall run for a period of twenty years anddraw interest at the rate of six percent per annum, payablesemiannually, said interest to be evidenced by the couponsattached. The bonds and coupons shall be negotiable in form.The coupons may be signed only by the lithographed signatures ofthe president of the board and the secretary thereof.