HomeMy WebLinkAboutORD 396 - ORD Authorizing the Borrowing of $25000 for Purpose of Essential Function
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ORDINANCE NO. 396
AN ORDINANCE AUTHORIZING THE BORROWING OF $25,000 FOR THE PURPOSE OF
CARRYING ON THE ESSENTIAL FUNCTIONS OF GOVERNMENT; AUTHOR;I:ZING THE ISSUANCE
OF PROMISSORY NOTES TO EVIDENCE SUCH INDEBTEDNESS ; PLEDGING CERTAIN ANTI-
CIPATED INCOME FOR THE PURPOSE OF PAYING THE PRINCIPAL AND INTEREST ON SUCH
INDEBTEDNESS.
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WHEREAS, the fiscal year of the City of West University Place, Texas,
begins on the first day of September and ends on the last day of August; and
WHEREAS, the City of West University Place, pending the' ,collection of
the current tax revenues, from-all sources, being taxes for the year 1948, is
without funds to pay its current 'obligations incurring and to be incurred for
the usual, normal and necessar.y operation of the cit.1 government predicated
upon the budget for the current year; and
WHEREAS, the City Commission in order'to'acquire'furi.ds'whereWiili'to
defray the current expenses of general operation of the. city goyernment,
pending collection of said tax revenues, finds it necessary for the City of
West University PJa ce, pursuant to Article XIV, Section 22 of the, City Charter,
to borrow money upon the face and credit of said city,: . and to secure such
loan by pledging and hypothecating the sum of $25,000 from and out of the
current tax revenues of the city for the year 1948; 'and
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WHEREAS, The City National Bank of Houston, Houston~Texas, has agreed to
lend the City of West University Place, Texas, a total aggregate Sum of
, $25,000;
THEREFORF;, BE IT ORDAINED by the City Commission of the City of West
UniversitY,Place, Texas:
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1.
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That. there shall be borrowed for and on behalf of, the City of' West
University Place, Texas, from The City, National Bank of Houston, Houston,
Texas, the sum of $25,000 for the purpose of paying salaries and other
necessar.y costs in carrying on the essential and normal operation of the
government of the City of West University Place and for items authorized
under the current budget of said city of which the sum of 4ho,000 shall be
borrowed forthwith and immediately and the balance shall be borrowed at such
times as the city shall desire, but on or before October 31, 1948.
2.
The Mayor and City Secretar,y of said city are hereby authorized to issue
and execute on behalf of said city legal and binding obligations in the form '
of and evidenced by promissory notes in the principal sum of $25,000.
3.
That said note or notes shall be dated on the date negotiated and shall
bear interest at the rate of ,3% per annum from date until finally paid, and ,J!IJ-
shall be in such denomination as the Mayor shall betermine to be proper, and
shalibe due arid payable; both asUto principal and interest, on or before
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December 31, 1948. However" the t6tal-..sum of principal of said note or notes
shall be payable at The City National Bank of Houston, Houston,Texas.
4.
That said note or notes shall be in substantially the following form:
No. $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF HARRIS
CITY OF WEST UNIVERSITY PLACE, TEXAS
PROMISSORY NOTE
The City of West University Place, in the County of Harris, State of
Texas, a municipal corporation, for value received, promises to pay to the
order of The City National Bank of Houston, Houston, Texas, the sum of
DOLLARS
($ ), on or'before the 31st day of December, 1948, and to pay the
interest, thereon from the date hereof until paid at ,the rate of 3% per annum,
together with 10% collection fees if suit is brought on this note, or if' it:
is placed in the ,hands of an attorney for collection.
It is hereby certified, recited and declared that all acts, conditions
and things required to be done precedent to and in the issuance of this series
of notes, have been properly done and performed, and have happened in regular
and due time, form and manner as required by law; and that there has been
approp~iated, pledged and set aside from and out of the first moneys to be
collected for the 1948, including delinquent taxes, a sum sufficient where-
with to 'pay off and discharge all of the principal and interest on such notes
as may be issued and negotiated; and that the total i.."'ldebtedness of the d. ty,
including this entire series of notes,_doesnot exceed any constitutional or
statutory limitation.
CITY OF WEST UNIVERSITY PLACE, TEXAS
By
ATTEST:
Mayor
City Secretary
5.
That for the purpose of paying the principal of said note or notes as
they mature and the interest on said note or notes as it' accrues, there is
hereby set aside, appropriated, hypothecated and pledged the sum of $25,000
from and out of all of the first tax revenues collected or to be collected
for the year 1948, including all delinquent taxes heretofore levied in pre-
vious years for general city purposes which are now delinquent and unpaid
and all of said. taxes, ~hall be-, applied , to the payment of principal and such
further swn or sums as are necessary to pay the accrued interest on said above
described note or notes. The note or notes herein described shall be a first
, lien upon the proceeds of such -tax revenues of the City of West University
Place, Texas.
PASSED. and APPROVED this
ATTEST:
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, (_ayor
, ,City . Secretary . ' - ,