HomeMy WebLinkAbout1995-2141 - Ordinance - 08/24/1995ORDINANCE NO. 2141
ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF COLLEGE STATION,
TEXAS GENERAL OBLIGATION BONDS, SERIES 1995, AND APPROVING AND
AUTHORIZING INSTRUMENTS, DOCUMENTS, AND PROCEDURES RELATED
THERETO, INCLUDING IMMEDIATE EFFECTIVENESS
WHEREAS. at an election duly called and held for and within the City of College Station, Texas (the
"Issuer" or the "City") on March 25, 1995, the duly qualified resident electors of the Issuer authorized the
City Council of the Issuer (the "Council") to issue bonds of the maximum amount of $22,500,000 (the "!995
Authorization"), and the Council now deems it to be in the best interest of the Issuer to issue $4,700.000 of
the 1995 Authorization, leaving $17,800,000 of the 1995 Authorization to be issued in the future;
WHEREAS, the Council now deems it to be in the best interest of the Issuer to issue $1,140,000 from
Proposition No. I of the 1995 Authorization, leaving $8,925,000 in bonds from Proposition No. ! to be issued
by the Council in the future; to issue $400,000 from Proposition 2 of the 1995 Authorization, leaving
$1,200,000 in bonds from Proposition 2 to be issued by the Council in the future; to issue $420,000 from
Proposition 3 of the 1995 Authorization, leaving $1,480,000 in bonds from Proposition 3 to be issued by the
Council in the future; to issue $395,000 fi'om Proposition 4 of the 1995 Authorization, leaving $1,410,000 in
bonds from Proposition 4 to be issued by the Council in the future; to issue $700,000 from Proposition 5 of
the 1995 Authorization, leaving $1,935,000 in bonds from Proposition 5 to be issued by the Council in the
future; to issue $935,000 from Proposition 6 of the 1995 Authorization, leaving $430,000 in bonds from
Proposition 6 to be issued by the Council in the future; to issue $280,000 from Proposition 7 of the 1995
Authorization, leaving $1,350,000 in bonds from Proposition 7 to be issued by the Council in the future; and
to issue $430,000 from Proposition No. 8, leaving $1,070,000 in bonds from Proposition No. 8 to be issued
by the Council in the future; and
WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to Article 701 et.
seq., Vernon's Texas Civil Statutes, as amended, and the Charter of the Issuer;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS, THAT:
Section I. Amount and Purpose of the Bonds. The bonds of the Issuer are hereby authorized to be
issued and delivered in the aggregate principal amount of $4,700,000, for purposes as follows: $1,140,000 for
reconstructing, improving, and extending streets, including construction and improvement of sidewalks, traffic
signals, and necessary drainage therefor, together with acquisition of any necessary right-of-way therefor;
$400,000 for improving and extending sid~vaiks and bike paths, and landscaping major thoroughfares
including improvements in the Northgate area; $420,000 for traffic management improvements, including but
not limited to, installation of traffic signals, creation of continuous right turn lanes and intersection
approaches, and construction of center lane medians; $395,000 for drainage improvement projects, including
but not limited to the City's participation in projects and storm drain and channel improvements; $700,000 for
construction of a new municipal libra~, including acquisition of necessary land, books, technology, and
equipment therefor;, $935,000 for construction of a new central fire station and padcing and storage facilities,
including acquisition of necessary land for such purposes; $280,000 for patios and recreation facilities,
including the acquisition of any necessary land .therefor, and $430,000 for acquisition of land and initial
development of a major athletic park.
Section 2. DesiRnation~ Date~ Denominations~ Interest Rates, Numbers~ and Maturities of Bonds.
Each bond issued pursuant to this Ordinance shall be designated: "CITY OF COLLEGE STATION, TEXAS
GENERAL OBLIGATION BOND, SERIES 1995", and initially there shall be issued, sold, and delivered
hereunder fully registered bonds, without interest coupons, dated August 15, 1995, in the respective
denominations and principal amounts hereinafter stated, payable to the respective initial registered owner
thereof (as designated in Section 12 hereof), or to the registered assignee or assignees of said bonds or any
portion or portions thereof (in each case, the "Registered Owner", "Owner", or "owner").
The term "Bonds" as used in this Ordinance shall mean and include collectively the bonds initially
issued and delivered pursuant to this Ordinance and ali substitute bonds exchanged therefor, as well as all
other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of
the Bonds. The Bonds shall be numbered i-1 and R-I upward, shall be in the denomination of $5,000 each
or any integral multiple thereof, shall bear interest at the following per annum interest rates and shall mature
and be payable serially on February 15 in each of the years and in the principal amounts, respectively as set
forth in the following schedule:
INTEREST
YEARS AMOUNTS RATES YEARS
1997 $100,000 7.00% 2006
1998 100,000 7.00 2007
1999 250,000 7.00 2008
2000 250,000 7.00 2009
2001 250,000 7.00 2010
2002 250,000 7.00 2011
2003 250,000 7.00 2012
2004 300,000 6.00 2013
2005 300,000 5.10
AMOUNTS
$300 000
300 000
300 000
350000
350.000
350.000
350.000
350,000
INTEREST
RATES
5.25%
5.25
5.25
5.25
5.25
5.25
5.25
5.25
Said interest shall be payable in the manner provided and on the dates stated in the FORM OF BOND set
forth in this Ordinance.
Section 3. Characteristics of the Bonds. (a) Registration, Transfer~ and ExchanRe~ Authentication.
The Issuer shall keep or cause to be kept at the designated corporate trust office of Texas Commerce Bank
National Association, Houston, Texas (the initial "Paying Agent/Registrar") books or records for the
registration of the transfer and exchange of the Bonds (the "Registration Books"), and the Issuer hereby
appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make
such registrations of transfers and exchanges under such reasonable regulations as the Issuer and Paying
Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such registrations, transfers, and
exchanges as herein provided. The Paying Agent/Registrar shall obtain and record in the Registration Books
the address of the registered owner of each Bond to which payments with respect to the Bonds shall be
mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying
Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall
not be mailed unless such notice has been given. To the extent possible and under reasonable circumstances,
all transfers of Bonds shall be made within three business days after request and presentation thereof. The
Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying
Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Regisuation Books confidential and,
unless otherwise required by law, shall not permit their inspection by any other entity. The Paying
Agent/Registrar's standard or customary fees and charges for making such registration, transfer, exchange and
delivery of a substitute Bond or Bonds shall be paid as provided in the FORM OF BOND set forth in this
Ordinance. Regi-~tration of assi?ments, transfers, and exchanges of Bonds shall be made in the manner
provided and with the effect stated in the FORb4. OF BOND set forth in this Ordinance. Each substitute
Bond shall bear a letter and/or number to distinguish it from each other Bond.
Except as provided in subsection (c) below, an authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such Bond, date and manually sign the Paying Agent/Registrar's Authentica=
tion Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so
executed. The Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered for
2
transfer and exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the
governing body of the Issuer or any other body or person so as to accomplish the foregoing transfer and
exchange of any Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing,
execution, and delivery of the substitute Bonds in the manner prescribed herein, and said Bonds shall be of
type composition printed on paper with lithographed or steel engraved borders of customary weight and
strength. Pursuant to Vernon's Ann. Tex. Civ. St. Art. 717k-6, and particularly Section 6 thereof, the duty of
transfer and exchange of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon
the execution of said certificate, the transferred and exchanged Bond shall be valid, incontestable, and
enforceable in the same manner and with the same effect as the Bonds which initially were issued and
delivered pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of
Public Accounts.
(b) Payment of Bonds and Interest. The Issuer hereby further appoints the Paying Agent/Registrar to
act as the paying agent for paying the principal of and interest on the Bonds, all as provided in this
Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the
Paying Agent/Registrar with respect to the Bonds. The Mayor and City Secretary are hereby authorized to
execute an agreement with the Paying Agent/Registrar substantially in the form presented at this meeting.
(c) In General. The Bonds (i) shall be issued in fully registered form, without interest coupons, with
the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be
redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be exchanged for
other Bonds, (v) shall have the characteristics, (vi) shall be signed, sealed, executed, and authenticated, (vii)
shall have the principal of and interest on the Bonds be payable, and (viii) shall be administered and the
Paying Agent/Registrar and the Issuer shall have certain duties and responsibilities with respect to the Bonds,
all as provided, and in the manner and to the effect as required or indicated, in the FORM OF BOND set
forth in this Ordinance. The Bond initially issued and delivered pursuant to this Ordinance numbered I-1 (the
"Initial Bond") shall be delivered to the initial purchaser and is not required to be, and shall not be, authenti-
cated by the Paying Agent/Registrar, but on each substitute Bond issued in exchange for the Initial Bond or
any Bond or Bonds issued under this Ordinance the Paying Agent/Registrar shall execute the PAYING
AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE, in the form set forth in the FORM OF
BOND.
(d) Substitute Pa¥inR Agent/Registrar. The Issuer covenants with the registered owners of the Bonds
that at ali times while the Bonds are outstanding the Issuer will provide a competent and legally qualified
bank, trust company, financial institution, or other agency to act as and perform the services of Paying
Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity.
The Issuer reserves the fight to, and may, at its option, change the Paying Agent/Registrar upon not less than
120 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next
principal or interest payment date after such notice. In the event that the entity at any time acting as Paying
Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otl}.etwise cease to
act as such, the Issuer covenants that promptly it will appoint a competent and legally qunlifiod bank, trust
company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon
any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and
deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to
the Bonds, to the 'new Paying Agent/Registrar designated and appointed by the Issuer. Upon any change in
the Paying Agent/Registrar, the Issuer promptly .will cause a written notice thereof to be sent by the new
Paying Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class postage
prepaid, which notice also shall give the address of the new Paying Agent/ Registrar. By accepting the
position and performing as such, each Paying Agent~.egisuar shall be deemed to have agreed to the provi-
sions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying
Agent/Registrar.
Section 4. Form of Bonds. The form of the Bonds, including the form of Paying Agent/Registrar's
Authentication Certificate, the form of Assignment, the form of Statement of Insurance, nnd the form of
Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the
Initial Bond, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or
insertions as are permitted or required by this Ordinance.
FORM OF BOND
FORM OF DEFINITIVE BOND
NO. R- United States of America PRINCIPAL
State of Texas AMOUNT
CITY OF COLLEGE STATION, TEXAS
GENERAL OBLIGATION BOND,
SERIES 1995
INTEREST RATE
MATURITY DATE ISSUE DATE CUSIP NO.
August 15, 1995
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
ON THE MATURITY DATE, specified above, THE CITY OF COLLEGE STATION, TEXAS (the
"City" or the "Issuer"), a home rule city and municipal corporation located in Brazes County, Texas, hereby
promises to pay to the Registered Owner, specified above, or registered assigns (hereinafter called the
"registered owner") the Principal Amount, specified above, and to pay interest thereon from the Issue Date,
specified above, on February 15, 1996, and semiannually on each August 15 and February 15 thereafter to the
Maturity Date, or the date of redemption prior to maturity, at the Interest Rate per annum, specified above,
computed on the basis of a 360-day year of twelve 30-day months; except that if this Bond is required to be
authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such
Principal Amount shall bear interest from the interest payment date next preceding the date of authentication,
unless such date of authentication is after any Record Date but on or before the next following interest
payment date, in which case such principal amount shall bear interest from such next following interest
payment date; provided, however, that if on the date of authentication hereof the interest on the Bond or
Bonds, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall bear
interest fi.om the date to which such interest has been paid in full.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United
States of America, without exchange or collection charges. The principal of this Bond shall be paid to the
registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date f'L~ed for
its redemption prior to maturity, at the principal payment office of TEXAS COMMERCE BANK
NATIONAL ASSOCIATION, Dallas, Texas, or its successor, which is the "Paying Agent/Registrar" for this
Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered
owner hereof on e'ach interest payment date by check, dated as of such interest payment date, drawn by the
Paying Agent/Registrar on, and payable solely fro.m, funds of the Issuer required by the ordinance authorizing
the issuance of this Bond adopted on August 24, 1995 (the "Ordinance*') to be on deposit with the Paying
Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the Paying
Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the
registered owner hereof, at its address as it appeared on the last business day of the month next preceding
each such date (the "Record Date") on the books of registration kept by the Paying Agent/Registrar (the
"Registration Books"). In addition, interest may be paid by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of, the registered owner.
THIS BOND is one of a series of Bonds authorized in accordance with the laws of the State of Texas
in the original principal amount of $4,700,000, for the purpose of providing $1,140,000 for street
improvements; $400,000 for thoroughfares, sidewalks, and bike path improvements; $420,000 for traffic
management improvements; $395,000 for the drainage of surface and flood waters; $700,000 for construction
of a new municipal library; $935,000 for construction of a new central fire station; $280,000 for construction
of park facilities and park improvements; and $430,000 for acquisition of land for public services.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH
ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND EFFECT
AS IF SET FORTH IN THIS SPACE.
IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile
signature of the Mayor of the Issuer and countersigned with the manual or facsimile signature of the City
Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in
facsimile, on this Bond.
CITY OF COLLEGE STATION
(facsimile signature)
City Secretary
(facsimile signature)
Mayor
*THE BONDS are issued pursuant to the Ordinance whereunder the Issuer covenants to levy a
continuing direct annual ad valorem tax on taxable property within the Issuer, not to exceed $2.50 per
assessed $100 valuation, as provided in Article XI, Section 5 of the Texas Constitution, for each year while
any part of the Bonds are considered outstanding under the provisions of the Ordinance, in sufficient amount
to pay interest on each Bond as it becomes due, to provide a sinking fund for the payment of the principal of
the Bonds when due, and to pay the expenses of assessing and collecting such tax, all as more specifically
provided in the Ordinance. Reference is hereby made to the Ordinance for provisions with respect to the
custody and application of the Issuer's funds, remedies in the event of a default hereunder or thereunder, and
the other rights of the registered owner.
*THIS BOND IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender at
the designated COl~rate office of the Paying Agent/Registrar. If this Bond is being transferred, it shall be
duly endorsed for lransfer or accompanied by an assi~t, nraent duly executed by the registered owner, or his
authorized representative, subject to the terms and conditions of the Ordinance.
*ANY ACCRUED INTEREST DUE at maturity or upon the redemption of this Bond prior to maturity
as provided herein shall be paid to the registered owner upon presentation and surrender of this Bond for
redemption nnd payment at the designated corporate trust office of the Paying Agent/Registrar. The Issuer
covenants with the registered owner of this Bond that on or before each principal payment date, interest
payment date, and accrued interest payment date for this Bond it will make available to the Paying
Agent/Registrar, fi'om the "Interest and Sinking Fund" created by the Ordinance, the amounts required to
provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when
due.
*IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, a
Sunday, a legal holiday, or a day on which banking institutions in the city where the designated corporate
trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, or the
United States Postal Service is not open for business, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are
authorized to close, or the United States Postal Service is not open for business; and payment on such date
shall have the same force and effect as if made on the original date payment was due.
*THE CITY RESERVES THE RIGHT to redeem the Bonds prior to their scheduled maturities, in
whole or in part, in integral multiples of $5,000, on February 15, 2005, or on any date thereafter, at a
redemption price of par plus accrued interest on the principal amounts called for redemption to the date fixed
for redemption. If less than all of the Bonds are to be redeemed, the particular Bonds to be redeemed shall
be selected by the City in integral multiples of $5,000 within any one maturity. At least 30 days prior to the
date fixed for any redemption of Bonds or portions thereof prior to maturity a written notice of such
redemption shall be published once in a financial journal or publication published in the City of New York,
New York, or in the City of Austin, Texas. Such notice shall also be given by the Issuer to the Paying
Agent/Registrar, and the Paying Agent/Registrar shall send a copy of such notice at least 45 days prior to the
date fixed for redemption by United States mail, first class, postage prepaid, addressed to the registered owner
of each Bond to be redeemed in whole or in part at the address shown on the Registration Books and to
major securities depositories, national bond rating agencies, and bond information services; provided,
however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or
mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any
Bond. When Bonds or portions thereof have been called for redemption, and due provision has been made to
redeem the same, the principal amounts so redeemed shall be payable solely from the funds provided for
redemption, and interest which would otherwise accrue on the amounts called for redemption shall terminate
on the date fixed for redemption.
*ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without interest
coupons, in the denomination of any integral multiple of $5,000. As provided in the Ordinance, this Bond, or
any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees
hereof, be assigned, transferred, and exchanged for a like aggregate principal amount of fully registered
Bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the
case may be, having the same denomination or denominations in any integral multiple of $5,000 as requested
in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of
this Bond to the Paying Agent/Registrar for cancellation, ail in accordance with the form and procedures set
forth in the Ordinance. Among other requirements for such assignment and transfer, this Bond must be
presented and surrendered to the Paying Agent/Registrar, together with proper inslxuments of assignment, in
form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of
this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in
whose name or names this Bond or any such portion or portions hereof is or are to be registered. The form
of Assignment printed or endorsed on this Bond may be executed by the registered owner to evidence the
assignment hereof, but such method is not exclusive, and other insmunents of.assignment satisfactory to the
Paying AgentfRegisWar may be used to evidence the assignment of this Bond or any portion or portions
hereof fi'om time to time by the registered owner. The person requesting such transfer and exchange shall
pay the Paying Agent/Registrar's reasonable standard or customary fees and charges for transferring and
exchanging any Bond or portion thereof. In any circumstance, any taxes or govermnental charges required to
be paid with respect thereto shall be paid by the person requesting such assi_~rnment, transfer, or exchange, ns
a condition precedent to the exercise of such privilege. The foregoing notwithstanding, in the case of the
exchange of a portion of a Bond which has been redeemed prior to maturity, as provided herein, and in the
case of the exchange of an assigned and transferee, d Bond or Bonds or any portion or portions thereof, such
fees and charges of the Paying Agent/Registrar will be paid by the Issuer. The Paying Agent/Registrar shnll
not be required to make any such uansfer or exchange (i) during the period of 15 days next preceding an
interest payment date or (ii) with respect to any Bond or any portion thereof called for redemption prior to
maturity, within 45 days prior to its redemption date.
*IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or
otherwise ceases to act as such, the Issuer has covenanted in the Ordinance that it promptly will appoint a
competent and legally qualified substitute therefor, and cause written notice thereof to be mailed to the
registered owners of the Bonds.
*BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of
the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, acknowledges
that the Ordinance is duly recorded and available for inspection in the official minutes and records of the
governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Ordinance
constitute a contract between each registered owner hereof and the Issuer.
*IT IS HEREBY CERTIFIED, RECITED, AND COVENANTED THAT this Bond has been duly and
validly authorized, issued, and delivered; all acts, conditions, and things required or proper to be performed,
exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been
performed, existed, and been done in accordance with law; and ad valorem taxes sufficient to provide for the
payment of the interest on and principal of this Bond, as such interest comes due, and as such principal
matures, have been levied and ordered to be levied against all taxable property in the Issuer, and have been
pledged for such payment, within the limit prescribed by law.
FORM OF INITIAL BOND
The Initial Bond shall be in the form set forth above for the Definitive Bonds, except the following
shall replace the heading and the first four paragraphs:
NO. 1-1 $4,700,000
United States of America
State of Tcxas
CITY OF COLLEGE STATION, TEXAS
GENERAL OBLIGATION BOND, SERIES 1995
Issue Date:
AUGUST 15, 1995
Registered Owner: MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
Principal Amount: FOUR MILLION SEVEN HUNDRED THOUSAND DOLLARS ($4,700,000)
THE CITY OF COLLEGE STATION, TEXAS (the "City" or the "Issuer"), for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner, specified
above, or the registered assigns thereof (the "Registered Owner"), the Principal Amount, specified above, with
principal installments payable on February 15 in each of the years, and bearing interest at per annum rates in
accordance with the following schedule:
YEARS OF PRINCIPAL INTEREST
STATED MATURITIES INSTALLMENTS RATES
$ %
(Information to be inserte.d from schedule in Section 2 hereof.)
INTEREST on the unpaid Principal Amount hereof from the Issue Date, specified above, or from the
most recent interest payment date to which interest has been paid or duly provided for until the Principal
Amount has become due and payment thereof has been made or duly provided for shall be paid computed on
the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August
15 of each year, commencing February 15, 1996.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United
States of America, without exchange or collection charges. The final payment of principal of this Bond shall
be paid to the Registered Owner hereof upon presentation and surrender of this Bond at final maturity, at the
principal payment office of TEXAS COMMERCE BANK NATIONAL ASSOCIATION, Dallas, Texas,
which is the "Paying Agent/Registrar" for this Bond. The payment of principal installments and interest on
this Bond shall be made by the Paying Agent/Registrar to the Registered Owner hereof as shown by the
Registration Books kept by the Paying Agent/Registrar at the close of business on the Record Date by check
drawn by the Paying Agent/Registrar on, and payable solely from, funds of the City required to be on deposit
with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the
Paying Agent/Registrar by United States mail, postage prepaid, on each such payment date, to the registered
owner hereof at its address as it appears on the Registration Books kept by the Paying Agent/Registrar, as
hereinafter described. The record date ("Record Date") for payments hereon means the last business day of
the month preceding a scheduled payment. The City covenants with the Registered Owner that no later than
each principal installment payment date and interest payment date for this Bond it will make available to the
Paying Agent/Registrar the amounts required to provide for the payment, in immediately available funds, of
ali principal of and interest on the Bonds, when due, in the manner set forth in the ordinance authorizing the
issuance of the Bonds adopted by the City Council of the City on August 24, 1995 (the "Ordinance").
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
['Not included on Initial Bond]
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued under the provisions of the Ordinance described in
the text of th~s Bond and that this Bond has been issued in exchange for a bond, bonds, or a portion of a
bond or bonds of a series which originally was approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts of the State of Texas.
Dated
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
Paying Agent/Registrar
By.
Authorized Signatory
*FORM OF STATEMENT OF INSURANCE
STATEMENT OF INSURANCE
Capital Guaranty Insurance Company ("Capital Guaranty"), a Maryland corporation, has issued its
Municipal Bond Guaranty Insuran~ Policy Number 95..0313-13TX1-10 (the "Insurance Policy") securing the
payment of Insured Amounts of this Obligation, as such terms are def'med in said Insurance Policy.
Reference is made to the Insurnnce Policy for the complete provisions thereof. All payments required
to be made under the Insurance Policy shall be made in accordance with the provisions thereof.
*FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned registered owner of this Bond, or duly authorized representative
or attorney thereof, hereby assigns this Bond to
/ /
(Ass,gnee's Social Sccurity or Tax Payer
ldcntificauon number)
Print or type Assignee's name and address, including zip code)
and hereby irrevocably constitutes and appoints
attorney to transfer the registration of this Bond on the Paying AgentYRegistrar's Registration Books with full
power of substitution in the premises.
Dated
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a
member firm of the New York Stock Exchange or
a commercial bank or trust company.
NOTICE: The signature above must correspond
with the name of the Registered Owner as it
appears upon the front of this Bond in every
particular, without alteration or enlargement or any
change whatsoever.
The following abbreviations, when used in the assignment above or on the face of the within Bond,
shall be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenant with right of survivorship and not as tenants in common
UNIF GIFT MIN ACT - Custodian under Uniform GiPts to Minor
(Cust) (Minor)
Act
(State)
Additional abbreviations may also be used though not in the list above.
FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS
[To be printed on or attached to the Initial Bond]
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Bond has bern examined, certified as to validity, and approved by the Attorney
General of the State of Texas, and that this Bond has been registere~l by the Comptroller of Public Accounts
of the State of Texas.
Wimess my signature and seal this
(COMPTROLLER'S SEAL) Comptroller of Public Accounts of the State of Texas
NOTE TO PRINTER: *'Is to be printed on reverse side of Definitive Bonds.
[END OF FORMS]
Section & Tax Levy. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby
created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and
maintained by the Issuer at an official depository bank of the Issuer. The Interest and Sinking Fund shall be
kept separate and apart from all other funds and accounts of the Issuer, and shall be used only for paying the
interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the
Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while
any of the Bonds or interest thereon are outstanding and unpaid, the Council shall compute and ascertain a
rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay
the interest on the Bonds as such interest comes due, and to provide and maintain a sinking fund adequate to
pay the principal of its Bonds as such principal matures (but never less than 2% of the original principal
amount of said Bonds as a sinking fund each year); and said tax shall be based on the latest approved tax
rolls of the Issuer, with full allowance being made for tax delinquencies and the cost of tax collection. Said
rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable
property in the Issuer for each year while any of the Bonds or interest thereon are outstanding and unpaid;
and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest
and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and
principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such
payment, within the limit prescribed by law.
Section 6. Disposition of Bond Proceeds. The proceeds of the Bonds shall be placed into the Interest
and Sinking Fund and the Construction Fund of the Issuer as follows:
(a) Interest and Sinking Fund. An amount equal to the accrued interest on the Bonds from the date of
the Bonds to the date of delivery to the Initial Purchaser, plus any premium paid by the Initial Purchaser,
shall be deposited in the Interest and Sinking Fund.
(b) Construction Fund. The proceeds of the Bonds remaining after the above described deposit into the
Interest and Sinking Fund shall be placed in the Construction Fund (hereby created with a depository bank of
the Issuer) to be used by the Issuer for the purposes for which the Bonds are issued, and, to the extent not
otherwise provided for, to pay expenses arising in connection with the issuance of the Bonds.
Section 7. Remedies of Owners. In addition to all rights and remedies of any owner of the Bonds
provided by the laws of the State of Texas, the Issuer and the Council covenant and agree that in the event
the Issuer defaults in the payment of the principal of or interest on any of the Bonds when due, fails to make
the payments required by this Ordinance to be made into the Interest and Sinking Fund, or defaults in the
observance or performance of any of the covenants, conditions, or obligations set forth in this Ordinance, the
owner of any of the Bonds shall be entitled to a writ of mandamus issued by a court of proper jurisdiction
compelling and requiring the Council and other officers of the Issuer to observe and perform any covenant,
obligation, or condition prescribed in this Ordinance. No delay or omission by any owner to exercise any
right or power accruing to such owner upon default shall impair any such right or power, or shall be
construed to be a waiver of any such default or acquiescence therein, and every such right or power may be
exercised from time to time and as often as may be deemed expedient. The specific remedies mentioned in
this Ordinance shall be available to any owner of any of the Bonds and shall be cumulative of all other
existing remedies.
Section 8. Defeasance of Bonds. (a) Any Bond and the interest thereon shall be deemed to be paid,
retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the
extent provided in subsection (d) of this Section 8, when payment of the principal of such Bond, plus interest
thereon to the due date (whether such due date be by reason of maturity, upon redemption, or otherwise)
either (i) shall have been made or caused to be made in accordance with the terms thereof (including the
giving of any required notice of redemption) or (ii) shall have been provided for on or before such due date
l0
by irrevocably depositing with or making available to the Paying Agent/Registrar for such payment (A) lawful
money of the United States of America sufficient to make such payment or (B) Government Obligations
(hereinafter defined) which mature as to principal and interest in such amounts and at such times as will
insure the availability, without reinvesmaent, of sufficient money to provide for such payment, and when
proper arrangements have been made by the Issuer with the Paying Agent/Registrar for the payment of its
services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be
deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be
secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged as
provided in this Ordinance, and such principal and interest shall be payable solely from such money or
Government Obligations.
(b) Any money so deposited with the Paying Agent/Registrar may at thc written direction of the Issuer
also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and
all income from such Government Obligations received by the Paying Agent/Registrar which is not required
for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited,
shall be turned over to the Issuer, or deposited as directed in writing by the Issuer.
(c) The term "Government Obligations," as used in this Section, shall mean direct obligations of the
United States of America, including obligations the principal of and interest on which are unconditionally
guaranteed by the United States of America, which may be United States Treasury obligations such as its
State and Local Government Series, which may be in book-entry form.
(d) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall
perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been
defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required by
this Ordinance.
Section 9. Dnmaged~ Mutilated~ Lost~ Stolen~ or Destroyed Bonds. (a) Replacement Bonds. In the
event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall
cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest
rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner
hereinafter provided.
Co) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost,
stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In
every case of loss, theR, or destruction of a Bond, the registered owner applying for a replacement bond shall
furnish to the Issuer and to the Paying Agent/Regislrar such security or indenmity as may be required by
them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of
loss, theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft, or desUuction of such Bond, as the case may
be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying
Agent/Registrar for cancellation the Bond so damaged or mutilated.
(c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any
such Bond shall IIIsve matured, and no default has occurred which is then continuing in thc paymont of the
principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the
same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a
replacement Bond, provided security or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying
Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in
connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of
Il
the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer
whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone,
and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other
Bonds duly issued under this Ordinance.
(e) Authority for Issuing Replacement Bonds. In accordance with Section 6 of Vernon's Ann. Tex.
Civ. St. Art. 717k-6, this Section 9 of this Ordinance shall constitute authority for the issuance of any such
replacement bond without necessity of further action by the governing body of the Issuer or any other body or
person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying
Agent/ Registrar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and
manner and with the effect, as provided in Section 3(a) of this Ordinance for Bonds issued in exchange for
other Bonds.
Section 10. Custody~ Approval~ and Registration of Bondsl Bond Counsel's Opinion~ and CUSIP
Numbers. The Mayor of the Issuer is hereby authorized to have control of the Initial Bond and all necessary
records and proceedings pertaining to the Initial Bond pending its delivery and its investigation, examination,
and approval by the Attorney General of the State of Texas, and its registration by the Comptroller of Public
Accounts of the State of Texas. Upon regiswation of the Initial Bond said Comptroller of Public Accounts (or
a deputy designated in writing to act for said Compuoiler) shall manually sign the Comptroller's Registration
Certificate attached to the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in
facsimile, on such Certificate. The approving legal opinion of the Akin, Gurnp, Strauss, Hauer & Feld,
L.L.P., Bond Counsel, and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the
Bonds issued and delivered under this Ordinance, but neither shall have any legal effect, and shall be solely
for the convenience and information of the registered owners of the Bonds.
that:
Section I1. Covenants of the Issuer. (a) General Covenants. The Issuer covenants and represents
(i) The Issuer is a duly incorporated Home Rule City, having more than 5000 inhabitants,
operating and existing under the laws of the State of Texas, and is duly authorized under the laws of the
State of Texas to create and issue the Bonds; all action on its part for the creation and issuance of the
Bonds has been duly and effectively taken; and the Bonds in the hands of the owners thereof are and
will be valid and enforceable obligations of the Issuer in accordance with their terms; and
(ii) The Bonds shall be ratably secured in such manner that no one Bond shall have preference
over other Bonds.
Co) Specific Covenants. The Issuer covenants and represents that, while the Bonds are outstanding and
unpaid, it will.'
(i) Levy an nd valorem tax that will be sufficient to provide funds to pay the current interest on
the Bonds and to provide the necessary sinking fund, all as described in this Ordinance; and
(ii) Keep proper books of record and account in which full, role, and correct entries will be made
of all dealings, activities, and transactions relating to the Funds created pursuant to this Ordinance, and
all books, dbcuments, and vouchers relating thereto shall at all reasonable times be rnnde available for
inspection upon request from any owner.
(c) Covenants Regarding Tax Matters. The City covenants to take any action to maintain, or refrain
fi.om any action which would adversely affect, the treatment of the Bonds as obligations described in section
103 of the Internal Revenue Code of 1986, as amended (the "Code"), the Interest on which is not includable
inn "gross income" for federal income tax purposes. In furtherance thereof, the City specifically covenants as
follows:
12
(i) To refrain from taking any action which would result in the Bonds being treated as "private
activity bonds" within the meaning of section 141(o) of the Code;
(ii) To take any action to assure that no more than 10% of the proceeds of the Bonds or the
projects financed therewith are used for any "private business use," as defined in section 141(b)(6) of
the Code or, if more than 10% of the proceeds or the projects financed therewith are so used, that
amounts, whether or not received by the City with respect to such private business use, do not under the
terms of this Resolution or any underlying arrangement, directly or indirectly, secure or provide for the
payment of more than 10% of the debt service on the Bonds, in contravention of section 141(b)(2) of
the Code;
(iii) To take any action to assure that in the event that the "private business use" described in
paragraph (ii) hereof exceeds :5% of the proceeds of the Bonds or the projects financed therewith, then
the amount in excess of 5% is used for a "private business use" which is "related" and not
"disproportionate," within the meaning of section 141(bX3) of the Code, to the governmental use;
(iv) To take any action to assure that no amount which is greater than the lesser of $5,000,000 or
5% of the proceeds of the Bonds is directly or indirectly used to finance loans to persons, other than
state or local governmental units, in contravention of section 141(c) of the Code;
(v) To refrain bom taking any action which would result in the Bonds being "federally
guaranteed" within the meaning of section 149(0) of the Code;
(vi) Except to the extent permitted by section 148 of the Code and the regulations and rulings
thereunder, to refrain ~om using any portion of the proceeds of the Bonds, directly or indirectly, to
acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as de
fined in section 148(bX2) of the Code) which produces a materially higher yield over the term of the
Bonds.
(vii) To otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of
the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of
section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code
(relating to advance refundings);
(viii) Except to the extent otherwise provided in section 148(0 of the Code and the regulations
and rulings thereunder, to pay to the United States of America at least once during each five year period
(beginning on the date of delivery of the Bonds) an amount that is at least equal to 90% of the "Excess
Earnings," within the meaning of section 148(0 of the Code, and to pay to the United States of
America, not later than 60 days after the Bonds have been paid in full, 100°,4 of the amount then
required to be paid as a result of Excess Earnings under section 148(0 of the Code; and
(ix) To maintain such records as will enable the City to fulfill its responsibilities under this
subsection and section 148 of the Code and to retain such records for at least six years following the
final payment of principal and interest on the Bonds.
For the purposes of the foregoing, in the case of a refunding bond, the term proceeds includes transferred
proceeds and, for purposes of paragraphs (ii) and (iii), proceeds of the refunded bonds.
The covenants contained herein are intended to assure compliance with the Code and any regulations or
rulings promulgated by the U.S. Department of Treasury pursuant thereto. In the event that regulations or
rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Bonds,
the City will not be required to comply with any covenant contained herein to the extent that such
13
modification or expansion, in the opinion of nationally-recognized bond counsel, will not adversely affect the
exclusion fi.om gross income of interest on the Bonds under section 103 of the Code. In the event that
regulations or rulings are hereat~er promulgated which impose additional requirements which are applicable to
the Bonds, the City agrees to comply with the additional requirements to the extent necessary, in the opinion
of nationally-recognized bond counsel, to preserve the exclusion from gross income of interest on the Bonds
under section 103 of the Code.
Proper officers of the City charged with the responsibility of issuing the Bonds are hereby authorized
and directed to execute any documents, certificates, or repons required by the Code and to make such
elections, on behalf of the City, which may be permitted by the Code as are consistent with the purpose for
the issuance of the Bonds.
Notwithstanding any other provision in this Resolution, to the extent necessary to preserve the exclusion
from gross income of interest on the Bonds under Section 103 of the Code the covenants contained in this
subsection shall survive the later of the defeasance or discharge of the Bonds.
Section 12. Sale of Bonds. The Bonds are hereby sold and shall be delivered to Merrill Lynch & Co.
(the "Initial Purchaser") at a price of par, plus interest thereon to date of delivery, pursuant to the terms and
provisions of the Official Notice of Sale and other sale documents. It is hereby off~cially found, determined,
and declared that the terms of this sale are the most advantageous reasonably obtainable. The Bonds shall
initially be registered in the name of Merrill Lynch, Pierce, Fenner & Smith Inc. The officers of the Issuer
are hereby authorized and directed to execute and deliver such certificates, insu'uctions, or other instruments
as are required or necessary to accomplish the purposes of this Ordinance.
Section 13. Approval of Official Statement. The Issuer hereby approves the form and content of the
Official Statement relating to the Bonds, and any addenda, supplement, or amendment thereto and approves
the disuibution of such Official Statement in the reoffering of the Bonds by the Initial Purchasers in t'mal
form, with such changes therein or additions thereto as the officer executing the same may deem advisable,
such determination to be conclusively evidenced by his execution thereof. It is further officially found
determined and declared that the statements and representations contained in said Official Statement are true
and correct in all material respects to the best knowledge and belief of the Council. The form and content of
and the distribution and use of the Preliminnry Official Statement dated August 10, 1995, prior to the date
hereof is hereby ratified and con£u~ned. The Council finds and determines that the Preliminary Official
Statement is "deemed t-mai" ns that term is der'reed in 17 C.F.R. Section 240.15c2-12.
Section 14. Ordinance a Contractr, Amendments. This Ordinance shall constitute a contract with the
owners, fi.om time to time, of the Bonds, binding on the Issuer and its successors and assigns, and shall not
be amended or repealed by the Issuer as long as any Bond remains outstanding except as permitted in this
Section. The Issuer may, without the consent of or notice to any owners, amend, change, or modify this
Ordinance as may be required (i) by the provisions hereof, (ii) in connection with the issuance of any
additional bonds, (iii) for the purpose of curing nny ambiguity, inconsistency, or formal defect or omission
herein, or (iv) in connection with any other change which is not to the prejudice of the owners. The Issuer
may, with the written consent of the owners of a majority in aggregate principal amount of Bonds then
outstanding affected thereby, and the insurer of any Bonds amend, chnnge, modify, or rescind any provisions
of this Ordinnnce;-provided, however, without the consent of ali of the owners affected, no such amendment,
change, modification, or rescission shall (i) extend the time or times of payment of the principal of and
interest on the Bonds, reduce the principal amount thereof to the rate of interest thereon, or in any other way
modify the terms of payment of the principal of or interest on additional bonds on a parity with the lien of the
Bonds, (ii) give any preference of any Bond over any other Bond, (iii) extend any waiver of default to
subsequent defaults, or (iv) reduce the aggregate principal amount of Bonds required for consent to any such
amendment, change, modification, or rescission. Whenever the Issuer shall desire to mnke any amendment or
addition to or rescission of this Ordinance requiring consent of the owners, the Issuer shall cause notice of the
14
amendment, addition, or rescission to be given as described above for a notice of redemption and give wrinen
notice to any insurer and Standard & Poor's Corporation. Whenever at any time within one year after the
date of the giving of such notice, the Issuer shall receive an instrument or instruments in writing executed by
any insurer and the owners of a majority in aggregate principal amount of the Bonds then outstanding
affected by any such amendment, addition, or rescission requiring consent, which instrument or instruments
shall refer to the proposed amendment, addition, or rescission described in such notice and shall specifically
consent to and approve the adoption thereof in substantially the form of the copy thereof referred to in such
notice, thereupon, but not otherwise, the Issuer may adopt such amendment, addition, or rescission in
substantially such form, except as herein provided. No owner or insurer may thereafter object to the adoption
of such amendment, addition, or rescission, or to any of the provisions thereof, and such amendment,
addition, or rescission shall be fully effective for all purposes.
Section IS. Continuing Disclosure Undertaking. (a) Annual Reports. The Issuer shall provide
annually to each nationally recognized municipal securities information repository CNRMSIR") and any state
information depository ("SID"), within six months after the end of each fiscal year ending in or after 1996,
financial information and operating data with respect to the Issuer of the general type included in the Official
Statement authorized by Section 13 of this Ordinance, being the information described in Exhibit A hereto.
Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles
described in Exhibit A hereto and (2) audited, if the Issuer commissions an audit of such statements and the
audit is completed within the period during which they must be provided. If the audit of such financial
statements is not complete within such period, the Issuer shall provide audited financial statements for the
applicable fiscal year to each NRMSIR and any SID when and if the audit report on such statements becomes
available.
If the Issuer changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the
date of the new fiscal year end) prior to the next date by which the Issuer otherwise would be required to
provide f'mancial information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may be set forth in
full in one or more documents or may be included by specific reference to any document (including an
official statement or other offering document, if it is available from the Municipal Securities Rulemaking
Board ("MSRB") that theretofore has been provided to each NRMSIR and any SID or filed with the SEC.
(b) Material Event Notices. The Issuer shall notify any SID and either each NRMSIR or the MSRB, in
a timely manner, of any of the following events with respect to the Bonds, if such event is material within the
meaning of the federal securities laws: (i) principal and interest payment delinquencies; (ii) non-payment
related defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv)
unscheduled draws on credit enhancements reflecting f'mancial difficulties; (v) substitution of credit or
liquidity providers, or their failure to perform; (vi) adverse tax opinions or events affecting the tax-exempt
status of the Bonds; (vii) modifications to rights of holders of the Bonds; (viii) bond calls; (ix) defeasances;
(x) release, substitution, or sale of property 'securing repayment of the Bonds; and (xi) ratings.
The Issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any
failure by the Issuer to provide financial information or operating data in accordance with this Section by the
time required by this Section.
(c) Limitations, Disclaimers, and Amendments. The Issuer shah be obligated to observe and perform the
covenants specified in this Section for so long as, but only for so long as, the Issuer remains an "obligated
person" with respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will
give notice of any deposit made in accordance with subsection (b) above, that causes the Bonds no longer to
be Outstanding and any call of Bonds made in connection therewith.
15
The provisions of this Section are for the sole benefit of the beneficial owners of the Bonds, and
nothing in this Section, express or implied, shall give any benefit or any legal or equitable fight, remedy, or
claim hereunder to any other person. The Issuer undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this
Section and does not hereby undertake to provide any other information that may be relevant or material to a
complete presentation of the Issuer's financial results, condition, or prospects or hereby undertake to update a
ny information provided in accordance with this Section or otherwise, except as expressly provided herein.
The Issuer d 'es not make any representation or warranty concerning such information or its usefulness to a
decision to 2. est tn or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE BENEFICIAL
OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES
RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE ISSUER, WHETHER
NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS
SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT,
FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
M,~/~D,4MU$ OR SPECIFIC PERFORMANCE.
No default by the Issuer in observing or performing its obligations under this Section shall comprise a
breach of or default under this Ordinance for purposes of any other provisions of this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the
Issuer under federal and state securities laws.
The provisions of this Section may be amended, supplemented, or repealed by the Issuer from time to
time under the following circumstances, but not otherwise: (!) to adapt to changed circumstances that arise
from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of
operations of the Issuer, if the provisions of this Section, as so supplemented or amended, would have
permitted an underwriter to purchase or sell Bonds in the present offering in compliance with the Rule and
either the Holders of a majority in aggregate principal amount of the Outstanding Bonds consent to such
amendment, supplement, or repeal, or any State agency or official determines that such amendment,
supplement, or repeal will not materially impair the interests of the beneficial owners of the Bonds, (2) upon
repeal of the applicable provisions of the Rule, or any judgment by a court of lrmal jurisdiction that such
provisions are invalid, or (3) in any other circumstance or manner permitted by the Rule.
Section 16. Funds Appropriated. The Council hereby appropriates from lawfully available money
sufficient sums to pay interest to accrue on the Bonds on the first interest payment date specified in this
Ordinance.
Section 17. Miscellaneous. (a) Incorporation of Preamble. The. preamble to this Ordinance is
incorporated by reference in this Ordinance.
Co) Titles Not Restrictive. The titles assigned to the various sections of this Ordinance are for
convenience only and shall not be considered restrictive of the subject matter of any section or of any part of
this Ordinance.
(c) Inconsistent Provisions. All ordinances, orders, and resolutions, or parts thereof, which are in
conflict or inconsistent with any provision of this Ordinance are hereby repealed and declared to be
inapplicable, and the provisions of this Ordinance shall be and remain controlling as to the matters prescribed
herein.
16
(d) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or provision of this
Ordinance or the application thereof to any person or circumstances shall be held to be invalid, the remainder
of this Ordinance shall nevertheless be valid and the Council hereby declares that this Ordinance would have
been enacted without such invalid word, phrase, clause, paragraph, sentence, pan, portion, or provisions.
(e) Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the
State of Texas.
(0 Effective Date. This Ordinance shall take effect and be in full force and effect from and after the
date of its passage, and it is so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS this 24th day of August, 1995, at which meeting a quorum was present.
May~, di~ ~-C~q~e Stat~'~, Texas
. EST: ~ . ~t~~oll~g~q~S~~ion,
City ~e~retar;~,, City ' Texas
17
Exhibit A
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 15 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to The Issuer to be provided annually in
accordance with such Section are as specified (and included in the Appendix or under the headings of the
Official Statement referred to below):
1. The "Audit Report" for the most recently concluded fiscal year.
2. The information included in the Official Statement under the following captions, but for the most
recently concluded fiscal year: "Financial Statement", "Computation of Self-Supporting Debt", "Tax
Collection Record", "Tax Rate Distribution", "Tax Adequacy", "City Sales Tax", "Estimated Direct and
Overlapping Debt Statement", "Ten Major Taxpayers", "History of General Fund Revenues and
Expenditures", Utility Department," "Utility System Operating Statements", "Customer Count", "Principal
Utility Customers", and "Water, Wastewater and Electric Rates".
Accounting Principles
The accounting principles referred to in such Section are the accounting principles described in the
notes to the financial statements referred to in paragraph I above, as such principles may be changed from
time to time to comply with state law or regulation.
A-I