HomeMy WebLinkAboutOrd 132 - sewer revenue bonds 1938
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o1IDINANCE NO. 132.
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AUTHORIZING ,THE ISSUANCE OF_ CITY OF WEST UNIVER-
SITY PLACE, ,TEXAS, SEWER REVENUE BONDS, SERIES
1938, AGGREGATINQ'$lOOtOOO.OO,BEARING 4i~ INTER-
EST, TO SECURE FONpS FOR. THE PURPOSE OF BUILDING,
IMPROVING,ENLARGING,EXTENDING,AND REPAIRING THE',
SEWER SYSTEM u IN AND" FOR SAID CITY~ PRESCRIBING fiE
FORM OF BOlID~ PLEDGING THE REVENUES OF SAID SYSTEM
TO 'fHE.PADIENT OF PRINCIPAL AND INTEREST OF THE
BONDS, AFTER PROVIDIN,G, FOR THE EXPDSE OF OPERATING
SAID SYS,TEM." MAKING CERTAIN. COVENANTS OF THE CITY
IN REFEREN,CE TO, THE BOND FUND FROM WHICH SAID PRIN-
OIPAL AND INTEREST_ARE TO BE PAID; PROVIDING .THAT
THE HOLDER OEl HOLDER OF SAID BONDS SHALL NEVER HAVE
THE RIGHT TO DEMAND PADENT OF SAID OBLIGATIONS OUT
OF ANY FUNDS RAISED OR TO, BE RAISED BY TAXATION; RE-
PEALING ALL ORDINANCES IN CONFLICT HEREWITH, AND DE-
CLARING AN EMERGENCY.
, WHEREAS,. the City Commission has heretofore on the 27th
day of August, A.D., 1937, adopted a resolution calling an elec-
'tion on- the question of_the.issuance___of City of West Uiiversi ty
Pla-c,e, Texa.a~ Sewer, Revenue Bonds, 'Series 1938, in the aggregate
amount._ of One Hundred Thousand Dollars ($100,,000.00), bearing
4!% inter_est, to secure funds, for the purpose of building, im-
proving, enlarging, extending and repairing the Sewer System in
and for said City; and
WHEREAS, said elec,tion was held pursuant to said re-
so,lution o~the 18th day__of Sep,tember" A.P., 1937, and result-
ed favorably to the issuance of said revenue bonds; and
WHEREAS, the City Council. has heretofore 'adopted are-
solution, declaring the, result,s of, saiduel_ectlon and determiBlng
the ~pec.1f'.1cL&uthol'itYuo:f'uthe.City to issue said revenue bonds;
and '
WHEREAS, the City has authorlty"general11 to pass this
ordin.anc.,e., author.1z.1ng ,the issuanc.e' .o~, revenue bonds for the .
purpoae, of. obtain.1ng t'unds, ,tor the ,purp.ose ,of building, improving,
enlarging" extending. and rep.a.1ring the, Sewer System in and for
said uC.ity, under ,the prco:Vis1.ons, ofthe.oons_titutioJl. and Laws of
the state of_ Texas., ,including particularly: Articles 1.111-1118,
both inclus1.ve, of the 192.5 Revised C.1:viluStatutes of Texas,
as emended; and
WHEREAS, it is now necessary and."proper that the Cit;r
Commission proceed with the issuance Qt such revenue bonds;
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
WEST. UNIVERSITY PLACE, TEXAS:
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1. That to provide funds for the purpose of. building,
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improving, enlarging, extending and repairing, ,the Sewer Sys tem,
pursuant t,Q the Constitution and~Statutes_ of the State of Texas,
including par t.1eul arly, Articles lllL - 1118, both inclusive, of
the 192.5 Re.vise,d C.1vil Statutes of, Texas, as amended; there shall
be issued "City of_West UniversLty Plac.e, Texas, Sewer System Re-
venu~ Bonds, Series 1938"~aggregating One Hundred Thousand Dollars
($100,000.00.> numbered_from,One (1.) to. One Hundred (100), both
inclusive, of the . denomination of $1,000.00 each. "
~. Said bonds.. shall be dated January 1, 1938, and
,shall bear interest at the ,rate of 4~% per:., annum, payable Jan-
uary 1; 1939, and semi..annual1y thereafter" on the 1st day of
July, and,tb,elst day of "January in each year; p:rincipa1 and
interest ,9f..sa:td bonds snaIl be pay.ab1e in suchf'Unds as are,
on the respective dates of payment of the,principa1 of an int-
ereston the bonds, legal tender fordeqts due the United States
of America, upon presentation and surrender o,f bond or proper
coupon at the orfice,~of the.. Guaranty Trus:t.. Co~pany in the City
or New York, state of New York.
3.. Said bonds shall mature as follows:
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BOND NUMBERS MATURITY ,DATES AMOUNTS
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1 & 2 January 1, 1939 $2,0.00.00
3 - 5, IllC. January I, 1940 ,3,000.00 ' .-
6 - 8 Inc. cJ anuary1, 1941 3,000..00,,'
9 - 11 I.IlC. January 1, 1942 ,3,000.00
12-15 Inc. January 1, 1943 4,000..00
16-19 Inc., January 1, 1944 4,000.00
20-23 Inc .. January I, 1945 4,000,.00' '\{,
24-27 Inc., January 1, 1946 4,000'.00 , ,
28-32 Inc., January 1, 1947 5., 000 ~ 00 J... L/
33-37 In~., January 1" 1948 _ 5, ~QQ..oJ)_,- ..' ?
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38- 42 Inc.. January 1, 1949 ~ OOO~._QQ.__ ;(
43-47 Inc. January 1, 1950 5,000.00
,48-53 Inc., January 1, 1951 6,000.00
54-59 Inc., January 1, 1952 ' 6,000.00'
60-65, Inc., January 1, 1953 6,000.00
66-'72 Inc. ,January 1, 1954 7,000.00
73-79 Inc., January 1, 1955 7,000.00
80-86 ' Inc .' January I, 1956 7,000..00
87-93 Inc.. ' January 1, 19.57 7,000.00
, 94-100 Inc. January 1, 1958. 7,OQO.0~
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4. Each of said bonds shall b.e signed by the Mayor,
countersigned by the City, Secretary and .rBg~stered by the City
Treasurer" and the, eorpo,rate seaI,..ofthe Oity of West University
Place, Texas" ,shall be impressed upo.n., each of them. The fac-
simile.. s.1gnatnres. 01 the. Mayor an~ Ci,ty Secretary may be Ii th-
o graphed" engraved o,r. prin,ted upon the coupons a ttached,to said
bonds and shall have thes.ame effect as if the.y had been signed
by said officers. '
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as follows:
5. The form. of' aaid.bonds ahaU"be sUbstantiall,y
No.,
$1,000.00
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UNITED STATES OF AMERICA;"
STATE OF TEXAS
" CO.UNTY OF HARRIS
CITY OF WEST UNIVERSITY PLACE
SEVER, SYSTEM REVENUE BOND
SERIES ~t38
The" Ci:ty~of.,_West, University Plac~" in the County of
Rarri.s"" in the ,state o.f Texas, .for value ~rec,~ived, hereby ack-
nowledge. i t-s.e.lf', indeb,t,edto and. prom1.s,es to pay to the bearer,
or it this bond"'be regis"tered as to princ,ipal, .to the regis-
tered holder thereof, as hereinafter stated, on the 1st day o~
January 19_, the surne of
ONE,~HOUSAND DOLLARS
($1,000,.00), in s~ch funds as are, on said date, legal tender
for debta.due.the United States of America, with interest there-
on from date at the, rate of four.. and one-half (4~~) per cent
per..,annum, ,payable, January .1, 1939, and, semi;.annually thereafter
on July 1st and. January. 1st ,of each year until the principal sum
shall be paid, wh1ch in tere-s t is payable in. such funds ,as are, , ' [j
on, the ,respective dates of .payment"legal. tender for debts due' i '
the"Un:Lted ,Statesof America, upon the presentation and ,surren- -
der of proper c.oupons as they se,verally become due; both prin-
cipal and interest being payable a.t the office of the Guarar:q
Trust, c.ompany,~.in,. the City.",,~of New York, N." Y. .
This bond is subject to the condition and every
holder ,hereof by acc,epting ,the" same, agrees with the obligor and
every subsequent holder. her.eof, that, ,( a) the delivery of. this
bond to. any, transferee ,1t." not.re.gistered, or 1f it be negistered
if, the ,las,t regis,t.eredtr.ans.fer b.e, to ,b,earer., shall vest title
in,.thiabond.. and...the..ln,t.e.r"e.s.t. r epres.ent.e,d, thereby in such trans-
teree to the,_sam.e,e,x.tent for alL purpos.ea as would the delivery'
under l..ike ..c.1re,um.atancesof any negotiable instrument payable to
bear,er.;, (b), the, obligor and any. agent of.. the obligor may treat.
the, bearer "o.f ,this bond" or. 1f, 1 t be r egis tered in the name of' "
a holder, the registered hQlder of this bond, as the absolute
owner hereo~ for all purposes, and Shal1not,be affected by any
no,tice toc,.the,_contrary; (c), the principal of and the interest
on this bond will be paid, andthis..bond ,.and each of the coupons
appertaining,.. thereto are transferable", tr,eefrom and wi.thout
regard to equities between the obligor and, the original or any
intermediate holder hereof or any set-aft's oreross-claims; and,
(d) the surrender to the obligor or any agent of the obligor '
of this bond and of, each of the coupons if not regist,ered, or nll-
if.. it be registered if the last registered trans:eer be to , LI
bearer, or the recipt of the regis t,er,ed holder for the princl-
pal"hereof',and,interest hereon if this bond be registered in
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the name ora holder, shall be a goOd discharge ~o the obligor
for the same.
, At the option of the holder this bon4 may be regis-
tered as to principal at the office of the City-Secretary in
the City or _West University__Place, State of Texas, and such re-
gistration,noted hereon by the City Secretary. as Registrar.
After such registration" upon_dellyery to the-.City Secretary of
a written ,instrument of trans.:fer, in the form approved by the
City of",West University Place., exe:cuted by the registered hold-
er in person or by hisattorn,eythereunto duly authorized, this
bond may be. transferred, and such transfer s;hallbe similarly
noted hereon, and no, transfer, hereof shall.be valiClunless so
made; but ,this bond may be.diseharged,from registration b7 being'
in like manner transferr,ed. to bearer, and thereupon transfer-
ability by delivery shall be restored, and, this bond may again
from time, ,to time be registered to beArer as before. No such
regis.tration,sha.ll ,affect the, negoti.ab,ility of the coupons 'apper-
taining hereto,. which shall dcontinue to be transferable by de-
livery, ~ly._,and shall remain, p,ayable to bearer.
, .. '. The City reserves the. right" on any ,interest payment
date, ..on and/or after January I., 1948, to calL for payment pr'ior .-
to maturity bonds numbers 38 to 100, both inclusive, of this
series,of bonds, by paying the par- value thereof with accrued int-
er.est to date fixed for payment; provided, however, that bonds
thus redeemed are called in their inverse ,numerical order, and
provided.further that notic,e of ' intention to redeem a bond ,shall.
be given to the holder thereof by written notice to the bank 'of
payment mailed, at least thirty (30) days prior to the date so
fixed for redemption, and by publication in a financial journal'
or chronicle published in or having general circulation in the
City of New York in at least one issue thereof, the date of pub-
lication,beingnot less than thirty days prior to the date so
fixed for redemption. Should any bond so called for redemption
not be presented it shall cease to bear interest from and after
the date so fixed for redemption.
This bond. is one of.a series of bonds of like tenor
and effect except, as to denomination and, ma:turity, numbered One
(1) to One Hundred (100), both inclusive, in the denomlnationof
One Thousand Dollars ($1,000.00) eaeh"aggregating the sume of
One Hundred Thousand ($100,000.00) Dollars~ issued by the Gity
of ,West University Pl~ce, for the purpose of building, improving,
enlarging, extending.. and, repairing the Sewer Syatan in. and for
said City, in-acc.ordance withthe Constitution and la.ws of the
State of Texas, the authority of a vote of the qUalified electors
of said City voting at an election held, oae the 18th day of Sep- '
tember" 1937., and. pursuant to an ordinance passed by the, Ci~y .
Commission dUly,,,reco.rded in the, Minu..tes of the City Commission.
-The da_te of this, bond in conformity with the ordi-
nance ahoye mentioned is January 1, 1938.
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This .bond and tb,e~ seri.es of which it is a part con-
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stitute special.obllgatlons.of ,the Oi'ty ot West University
Place, payable f'rOD.l and aecUred,b.y anexc,~us.1ve first lien on
and, pledge' of the . revenues . ,of, ,the. C,ltyts, Sewer System, after
deductlono.f reas:onabl,EL operatlon and maintenance expenses.
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The . holder ,hereof', shalL never, have the right to
demandp,a~ent, of. this obligation out ,of,: any funds ,raised, or
to be raised b-y taxation..,
And it is hereby e~rtif'ied that the issuance of
this bond, and the s.er.1esnof wldchit, i8..& part, is duly auth-
oriz~d ,by law;, that allacts,conditlons and ,things required to
exlstand,to. be done precedent to and in ,the issuance of this
bond to render the same lawful and valid, have, been properly
done, have happened and have been performed in I' egular and due
time, form and manner..req~ired by the Constitution and the laws
of the State of ~exas, and the ordinance hereinable mentioned, ,
and that ,this series of' ,r.evenue ,bonds do as no,t exc eedany eon":"
stitutional, or, .s.tatut.orylimitations; and tb,at provision has
been made for the ,paJDlent, of, .the principal and fnterest of this
bond and the serles, of which it is a part by irrevocably pledg-
ing the.revenues,of.s.aidsewer,sy.steDL"Qf saldCity of West Uni-
versity Place.
IN TESTIMONY WHEREOF, the Ci.ty Commission of the
City of.. West University ,Place has caused the seal of said City
to be her e.on , impressed, and.thi,s: bond to he, s.igned by the Mayor
of said, Oi ty" countersigned. by the City, Secx-etary and' regis-
tered by the , City, Treasurer and. hascauaedthe annexed coupons
to be ,signe,d. by the f'ac.-simUe ..signature, of "the Mayor and the
City Secretary.
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Mayor_, c.;ityor~,West University, Place,
T e x a s..
COUNTERSIGNED:
C1.ty Secretary
REGISTERED:
as follows:
City Treasurer.
a. The form of, said coupons, shall be substantially
NO.
$.
ON THE FIRST'DAY OF
,19_, ]
the City of'..West University Place. Texas, will pay to the b~ar-
er,-- from the ,~revenue.s of .the. Cl ty' s, Sewer System, afterdeduc-
tion of reasonable operation and maint,enance expenses, at the ,
e.ff'ice of the Guaranty Trust ComP8:IlY of New York. N.Y., the surnt. '
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of
DOLLARS
in such funds. as, ar.e, on, said date,. legal tender"f'or debts due the
United Still. te.s, .o,!", Amer1.e.a.", said sum being months ' interest
. due ~atday on "City Of'_w.es.t..Universi.t:y Plac.e., Texas, Sewer~ Sys-
tem. ,ev.enue Bond., seri.e.s.193B,. bear,ing. ,the numbersp.~clf'ied,da ted
J,an\1a.ry 1, 1938.. '.rhe ,holder hereof shalL never have the right to
demand pa,ment,of this ob11gationol1't ,of any dtunds raised or to be
raised by...:.taxa,tion.. Bond No. '.
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Mayor,
~ity Secretary.
",' 2:. Subs,tantiall.y the f'o.llowingshall be printed on
the b~ko'f'each bond:
OFFICE 0 FCOMPTROLLER
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STATE OF TEXAS
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'I HEREBY CERTIFY that there is on: file and of record
in my office a certificate,_.of the Attorney General of the State
of Texas to the effect that, this bond has. been examined by him
as required bylaw, and .that hef'inds that, it has been issued '
l11conf'QZ'Jlllty.with the. Co:n.s"tltu~t1,on.;.;.a.nd laws; of the state of
Texas., and,;that"it,ia av:a11d'lU1d binding"s.pec~al obligation of'
said"Cityof_West University Place, Texas, payalble .from the re-
venues .pledged to its payment by and in the ordinanceauthoriz-
ing same, and, said bond has.this day been ,J;'egistered bY'1I1'$..
WITNESS MYHAND,an:d s,eal of'off'ice at Austin, Texas,
this the _day~.of' A.D., 1938.
Comptroller of' PUblic Accounts
of' the State of Texas
8. The f'ol'm...of Re,gistration Endorsement shall be sub-.
stantia1ly as follows: .
"
" (No wri.ting here.on exe.ep.tby the City Secretaz>y of'
""", " U ' R )
the.Cit,. oJ'."Westniv,ersity P.lac.e., ,Texas, as .egistraz>
DATE OF, REGIS,TRAT.ION
IN WHOSE NAME REGISTERED
RmIS'l'RAR
r ......
City Secretary
City Secretary
City Secretary
City Secretary
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"'1r!ty Secretary
City ::>ecretary
Ci ty,Secretary,
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',' 9. -In this ordinance_, the term fI system" sha11 include,
an.d mean .thtLSanitary-Sewer. System ,of. said C1.ty., together with the
completed ,project and. anyaddi.tions thereto and improvements and,
replacements thereof.
10. The, City Council sha1l, at all times while any ot:
said bonds,_ or any interest ther,eon", are outstanding and unpaid,
charge and collect for serviees r_endered by said Sysrtem rates
sufficient to pay all maintenance~ deprec.1ation, replacement,
betterment and interest_ charges, and :for, interest and sinking
Fun. su:f.f'ic,1.ent. to pay-the in,ter,es,t" and p.rin,c.1pal of' said bonds
as such principal and interest matures, and acc~ues and. am.y out-
standing indebtedness against-the syst_em, ,as is required by
Arti.cle lllS, 1925, Iievi's.ed C.1v.1l Statutes ,o:f Texas and amendments
there,to.. For thebenefl,t,o.f, ,the" ,origina1. pur.chaser, and for the
benefi.t of'" an~_-.and all,sub,se,quen.t., holders, ot: said bonds, coupons"
or, any partther,eo.f,,._ and,1n additi.on.to all,o_theI' provisions and
covenants,1n..._the, l,aws.,_o,f,~.the ~Stat,e.,of'._Texas, and in. this ordinance,
it is expressly stipulated:
"A. Rate,s: 'fhe City shal~ fix and maintain rates
and collect chargesf'or the f'acili,tiesand. services afforded by
the Syst'em,. Which wilL provl.de revenues suf..f'.1cl.ent at all times:
(1) To pay for all operatioBs, maintenance de-
preciat10n,replaeements and betterment charges of the Aystem.
(2) To es tablish and maintain the Bond Fund.
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(3) 'fo pay a~l outstanding indebtedness against
the System" other than the bonds,,. as and ,when the same becomes
due.." ,Provi.de,d.also ,that ,no,;tre,a..service of the S.,s"tem shall
be allowed,..,and should the ,Cj.ty or any.. of its agencies or in-
s trumen taJ.i.t,ies mak.e Huse of the services and, taeili ties ot the
System, ,payment otuthe,reasonabJ.:e,_value, therep:f sha11 be made
by th,e City out of funds derived trom sources other than the re- '
venues and income of the System. ,
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B.. USE OF..,REVENUES. ' The Ci,ty will deposit as coll- '
ected all revenues derived, from, the operatianot the System into
a l'e:parat.e acc,ount, .{hereincalled,,^ the. "System FUnd") which shall
be kept separa.te and_ apart_ .from all, other .funds of the City. The
SysteIllFund.s,~l, beadm.1n.1s:.~ered as :follows: .,
(~J. ", BOND FUND. From the ~ds in- the System Fund, :0,'
the Ci,ty shall. pay into the Bond F\md during each year beginning
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wi.th the date of comple,tion of the project, an amount equal
to 100 per, c,entum of the, amount required to meet the interest
and princlpa1,pa~ents falling due on, or before .e next'mat-
urity date,of the bonds,. Inadd1.tlonHto, sllch paj'IDent, the City
s;hall p,ay.,1ntGL the Bond Fund...f.r,om the, System, ~d in. each year
20 per centum of' the .above required amount until such time as
there., is in ,the Bond. Fund an amount sufficient to meet the int-
erest and prin,c,ipa~p,aym.en ts falling, due on or before, the nex:b
maturity da,te. of the bonds and the interest and principal pay-,
mentson the bonds for 2 years therea.tter." , The .amount require(l
to b ,e paid "into the Bond Fund,.in each yearsha11 be paid in sub-
stantia'lly equal monthly paym.ents from the monies in the System
BuIld after deductions have been,made ,for paying the reasonable
cost of the operating and maintaining of, the System for such
month. If the.revEmues of the System.in any month, after deduc-
tions for operation and maintenance, are.insufficient to make
the required payment into the Bond Fund, then the amount of any
deficiency in the pa~ent made shall be added to the amount other-
wise required bo b.e pa1d into the Bond Fund. in the next ,month.
It is,.. the intent of this provision that the sums paid into the
Bond FUnd shall be in excess of the immediate requirements for
payment of..interes,t on the principal of the bonds, ,until, there
has..beenacc.umula.ted in. the Bond Fund, as a reserVe for contin-
gencies, an amount sufficient. to s ervic,e ' the bonds for ,two years.
The monies in the Bond Fund shall be used,solely for the purpo se
of paying interest on and principal of the bonds until all bonds
have been retired;, provided,__ that, when _the total in the Bond
Fund is. equal to the aggregate principal amount of the bonds'
outstand~g plus ~ccrued inteJ:'est thereon, the monie#! in, the
Bond Fund may be used to purchase bonds at a price, exclusive
of accrued ,interest, not exceedlng~ the principa;t amount thereof.
The mOl'l,ie.s ,paid, into the Bond Fund shall be d.eposi ted in a bank
or bank$ and shall, becontinuous.ly secured by a valid pledge to
the C'1.~yofd1rect obligatloWl of the JJniteo. States of Amer,ica hav-
ing an, ~ggegate market value exclusiv,e of accrued interest, at
all times.- $. t. leas.tequal, to, .suc,h_,Bond., .Bund., ' ~e Bond Fund, at
the op,t:1.~,.oi" the OitY"q may be invested in such"dil"ect obligations
of. the 'Uni.ted States of America and deposited, in esc.row under an
escr,o~w agreePlent.. ;J:f such funds are so invest,ed and deposited
in escrow.. the City shall have the right to ,haye sold through
the escrow agent on the open market a . sufficient amount of said
securities in order to meet its obligations of princ1pal and .1nt-
erestin event it does not have suf'f'icientfUnds, uninvested~ on,
hand for_ such purpose. Under such circumstances, the Mayor ,is
hereby authorized, ordered and directed to give fifteen days writtem
notice to such ~scrow agent of the necessity to sell said secur-
itieson the open market. After such sale, the monies resulting
there.t'rom shall belong to the Bond Fund and shall be aV,ailable to
pay such obligations of principal and interest.. .
(-2 ) SURPLUS." ADy fUnds r.emaining. in the Sys tam
Fund,,, after provision for the.reasonab1e cost of' operating and
mainta~1ng the System and af'ter, paying the amounts required: to
be paid..into the Bond Fund as above provide,d, may be used by the
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City for the purchase of bonds at not exceeding the principal
amount thereo.f', (exc~usive, of,. aecrued"interest) or for any , ,
other, purpose, permitted by law.
C. Additiona16onds :_Encumbrance and Sale. While
any of the bonds are outstand1ng", the, City, shall not issue any
addit10nal bonds payable .from the~,revenues of the System unless
the lien of such, bonds Dn the"ravenuesof the System" is made
junior and subordinate in all respects to the l1en of the bonds
authorized in this ord.1nane,e,., In no,even,t, ,while any of said
bonds are outstanding, wilL the' Cltymortgage or otherwise en-
cumber the System or any part thereof, or sell, lease or other-
wise dispose of any substantial,portien of such 'System. These
provisions shall inure to the benefit of and .be enforceable by
any holder of any of the bonds.
D.~intenance.and,Operation:' The City 'shall main-
tain the 81's.tem, "goo_d, condit.1.on, and opera te the same in an
ef"ficient m.anneranda t ar,ea.sQnable eost...", So long as any of
the, bonds, dare ,o.u.ts.tanding,. ,the Oity agrees to maintain insur-
ance, for the.. b.enefit' of the holder or holders of the bonds,
on the_System. of, a ind, and in an amount which usually would be
carried by private. companies.. engaged ,1n.a,s.1m.1lar type of busi-
nesa. Nothing in this, ordinanc,e, shall beeonstnued as requir-
ing the City to expend' any funds which are derived from s ourees
other than the o..peration of the System, but nothing herein shall il,
be eonstrued as_preventing the,. City from doing 10., J
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E. Aceoun.ts: and P,erio,dic, .S,tatement's. The City shall
keep proper books of._r,ecords...andpc.ounts (.aepalllte from all other
reeords and ,eount.sJ in, which eomple,te and correct entries 'shall'
be made,: of al1_ transa.ct1.ons.c,..relat,1ng".to the System. The C-it7 '
shall. furnish to any holder of any of. the_ bonds, at the written
reques.t of. such hol.d.er.., not more than, thirty: days after the close
of each six months, fiseal p,eriod, complete operating and income
statemen.ts of the System in. reasonable detail covering suoh six
months period, ,and" not more than ilhty days after the close of
each fisoal year, complete f1.nancial s.tatements of the System
in reasonable detail covering such fiscal year, certified by
the City's auditors.
F. Inspection: ,Any purchaser of 25 per centum in
aggregate principal amount of the, bonds at the time then out-
standing or any holder or holders; of 25 per centum of said
amount -of outstanding bonds shall have ther1ght. at all reas-
onabl'e times, to insp,ect the System and all, records, accounts
and ,data of the City relating 1bereto.
, G. Information: During the construction of" the
Project the City will fUrnish to anypurohaser of 25 per ,centum 1
Ofd, the- bondS'tSUehol-~1nhanCiialt stathtem;ntsj aJltdodthet: i~fOrmt' ,ation . .
an data.,rela ing .,,-0 te C " y, e." 1'0 eo. ,an ne 18 em as .
any such purohas.er from time to time may reasonably require.
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, . ,H~ -S~leof ~~~dS~ ~on request, the City will fur-
nish to any purcnaser of , per centUm o..f. theB.onds, information
for the' preparation, of a, bond circular in. customary form, signed
by the proper~_of.ficial of the City"containing such data as such
purchaser, may reasonably reques.t, concerning, the City, the Project,
and the Sys tem. "
11. The Mayor; Ci,ty Secretary and City Treasurer
are hereby, instructed and diree:ted to do any and all things nec-
essal'"Y and/or convenient in reference to, the installing and main-
taining of a 'complete system of 'records and ae.counts pertaining
to said . system and to make the monies. available for the payment
of said revenue bonds.. in the manner provided..byCb:apter 122,
Acts., af, the Regular., Sess.1on,.ot'"..the For,ty:~Third' Texas Legisla-
ture, eff.ectiv.e May 12" 1933.. In accordance Wit~ the, provisions
of Ar:t1.cle:ll.l.3., 192.5.. Revia.ad Civil Statute.s:o'of, exas', as amend-
ed, the .fiscal year for the op~ration of such System shall be
January 1st to Decemb.er, 31B.t. of eac,h y,ear..... The remaining part
of 1938 shall constitut.e, a, tr.actional part of a fiscal year.
,12... The City .further covenant.s by and through this
ordinance as. follows:
, (a) That the revenue bonds authorized hereunder
shall be special obliga,tions,ot the C,ity" and the holder thereof'
shall never have the right to demand payment thereof out of f\mds
raised or bo be raised by taxation.
(b) ,That it has the lawful power to :pledge the
revenue, supporting this is,sue or. bonds and has lawfully exer-
cised said.,power under the Constitution..and laws of the State
of ~exas, including power,existing under Art~cles 1111 to 1118,
both:inclusiye,192.5 ltevis.ed Civil, Statutes~ of the State of Texas
with ,amendments ther,eto, and_by authorlt;yof &. ,vote of the qual-
ified electors of _said.. City voting, at an election held on the
18th da~ of September, 1937; that the bondslssued hereunder
shall be ratably secured under said p2edge, of income, in such
manner that one bond shall have no preference, over any .other.. <
bond of said issue.
( c) . That 0 ther. than for the payment of' the bonds
herein provided for, the r.ents, revenues and inc-om-e of the said,:' r
Sewer System. have not in any manner be,en pledged to the payment
of any debtor Obligation of' the city" nor of, said system.
(d) ,In addition to monJ.eB to he, paid into the 'Bond
FUnd fr,om r_evenues produce.duby said._system" the, City 'will, pay
intQ said,fund.".thefollowing: The balance remaining unexpended
from the proceeds of the_ sal.e" of, the..b.onds_, after the completion
of the projec.t, andthe,money represented by interest accruing
on said bonds ,from ,.their .date, to the ,date of deliv:ery to the
purchaser or purchasers thereof. Said, funds shall be used for the
purpose of pure~sing outstanding bonds of th,ls series and/or
tn~erest coupons; provided that bonds thus purchased shall be
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eaneel1.edand.shall_Ilot be'relssued.
, 13., It ,shallbe~,"the, duty of, the Mayor to submit
,the rec,ord_ or.sai.d,-bonda.-and~th,e_ b.onds_,:to.the At.tomey Gen.-
eral.~of the,S tate of Texas.. .for ,approval, and thareaf-ter to have
them., registered by_the Comp.troll,er._.o~ the, State of Texas.
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14. The. reYenu,e.. banda, men, properly executed by
the City offlclals__shaJ.l._,be held b-1 .the, Ma.yor of' the City to
be delivered by the Mayor to the purEhaser or purchasers
thereof,. .. The, May.or ~ Oit..y Secretary and Oi ty Treasurer a.re
author,izedand dir-ected, to do any, and.. all, tllings- neo,essary and!
or co,nv.enient ,to c.arr"out, the. terms. of saUl purchase.
. .. .
15. 'The bonds, thus -authorized shall pass by deliv-
err unless registered as to ,owner,sh.1p on -the books of the City
Secretary,as registrar,. but after such registration of owner-
ship d.uly noted..,on the_ bonds_no, trans.f'er exc,ept on sald books
shall be valid_ unl_e,s.s ' the la,st r,egis,tratlon, shall be to bearer,
andsaici bonds_ shallcontlnue, to be subject to reg1..stratlon
and to transfer to bear_er at, ,the op.tion of ..,th-e holdSr.
16.' All, ordinances and, resolutions.. and parts theI'e
of, in conflle t herewith ar,e hereby expressly repealed msofar
as they conflict herewith.
17. By reason of the fae..t that the Oi t-y Council
considers the, pas,sage of this ordinanc.e neces.sary for the pre-
servation, of thepublle: heal.th,and.aaf_e.ty of the Oi ty and of
its c1..t.1zens,. itqls, hereby declared. to bean emergency measure
demanding ..tha.t :the _rul,e..requ1r1ng_ordin.anc.e,s, to be read at more'
than, on.e...,me,ating_o.fthe.C-1.ty_ Coun.cil,besuap,ended and1bat this
ord1n.ancne, ,take, ,ef'f,ect immediately .from..andafter1.ts pasage,
and_,it is so ordained.
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Passed and approved this the
A.D., 1938.
(8 E A L)
A~TEST: '
~ifft~y
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