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HomeMy WebLinkAboutORD 397 - ORD Authorizing the Borrowing of $15000 for the Construction and Improvment of the Street II' " T L, 'J I 234 ORDINANCE NO. 397 AN ORDINANCE AUTHORIZING THE BORROWING OF $15,000 FOR THE PURPOSE OF THE CONSTRUCTION AND IMPROVEMENT OF THE STREETS OF THE CITY OF WEST UNIVERSITY PLACE; AUTHORIZING THE ISSUANCE OF A PROMISSORY NOTE TO EVIDENCE SUCH "- INDEBTEDNESS; PLEDGING CERTAIN ANTICIPATED PROCEEDS FROM THE SALE OF. $165,000 STREET IMPROV~vrnNTS BONDS FOR THE PURPOSE OF PAYING THE PRINCIPAL AND INTEREST ON SUCH INDEBTEDNESS. fi: [I I ---.J WHEREAS, the City Commission of the City of West University Place, Texas, in regular meeting on August 16, 1948, passed an ordinance a~thorizing the issuance of $105,000 Street Improvement Bonds for the purpose of the con- struction and improvement of the streets of said city; and WHEREAS, pending final approval and sale and delivery of'~aid bonds, the city is authorized by Article XIV, Section 19 of'the City Charter of said ,citY,toborrow money for the purpose which said bonds are to be ,issued in anticipation of the receipt of the proceeds from the sale of said bonds; and WHEREAS, The City National Bank of Houston, Houston, Texas, has agreed to lend the City of West University Place a total aggregate sum of $15,000 pending the sale of said bonds hereinabove described; THEREFORE, BE IT ORDAINED by the City Commission of the City of West University Place, Texas: 1. (I , i , I I ' That there shall be borrowed for and on behalf of the City of West I~ University Place, Texas, fI!om The City National Bank: of,Houston, Houston, Texas, the sum of $15,000 for the purpose of initiating the program of street improvements as contemplated by the $165,000 Street Improvement Bond issue adopted by the City Commission of said city on August 16, 1948. 2. The Mayor and City Secreta~ 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 a promisso~ 'note in the principal sum of $15,000. 3. That said note shall be dated September , 1948, and shall hear in- terest at the rate of 3% per annum from date until finally paid, shall be in the aggregate principal sum of $15,000, and shall be due and payable, both as to principal and interest, on or before December 31, 1948. Both principal and interest shall be payable at The Gi ty National Bank of Houston, Houston, Texas. 4. That said note 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 lJ c o o 235 . 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 FIFTEEN THOUSAND DOLLARS ($15,000.00) on or before the 31st day of December, 1948, and to pay interest thereon from 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 note has 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 appropriated, pledged and set aside from and out of the anticipated proceeds from the sale of $165,000 Street Improvement Bonds, dated August 16, 1948, the sum of $15,000 plus. such additional sum or sums as are necessary to pay the'accrued,interest on said note; and that the total indebtedness of the city, including this note,'does not exceed any co~stitutional or ,statutory limitation. CITY OF WEST UNIVERSITY PLACE, TEXAS By Mayor ATTEST t." City Secretary 5. That for the purpose of paying the principal of above said note, as it matures, and the interest on said note as it accrues, there is hereby set aside, appropriated and hypothecated and pledged the sum of $15,,000 from and out of the initial proceeds of the,sale of the $165,000 bond issue authori~ed by the City Commission of the City of West University Place, Texas, on August 16, 1948, plus such additional sum or sums as are necessary to pay the accrued interest on said note. PASSED and APPROVED this 13th day of September, ATTEST: City Secretary :l. ::' :: ... L"' . . ~ '-.:J: r: L.... ~!..=n