HomeMy WebLinkAbout1967-0494 - Ordinance - 01/13/1967E3OORUM & PEASE "No a"
ORDINANCE NO, 494
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $333, 000 WATERWORKS
AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE
REFUNDING BONDS AND DECLARING THAT THIS ORDINANCE SHALL BE
EFFECTIVE IMMEDIATELY UPON ITS ADOPTION.
THE STATE OF TEXAS
COUNTY OF BRAZOS
The City Council of the City of College Station, Texas, convened in
special session at the regular meeting place thereof in the City Hall, within
said City on the 13th day of January, 1967, with the following members
present, to -wit:
D. A. Anderson Mayor
Bill J. Cooley Councilman
Homer B. Adams Councilman
Robert R. Rhodes Councilman
O. M. Holt Councilman
A. L. Rosprim Councilman
A. P. Boyett Councilman
Charles F. Richardson City Secretary
and the following member(s) absent, to -wit: None, when, among other business,
the following was transacted:
The Mayor introduced an ordinance which was read in full. Councilman
Rhodes made a motion that the ordinance be adopted as read. Councilman
Adams seconded the motion for adoption of the ordinance. The motion,
carrying with it the adoption of the ordinance, prevailed by the following vote:
AYES: Councilman Cooley, Adams, Rhodes, Holt, Rosprim,
Boyett and Mayor Anderson.
NOES: None.
The Mayor thereupon announced that the motion had duly and lawfully
carried, and that the ordinance had been duly and lawfully adopted. The ordinance
thus adopted follows:
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $333, 000 WATERWORKS
AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE
REFUNDING BONDS AND DECLARING THAT THIS ORDINANCE SHALL BE
EFFECTIVE IMMEDIATELY UPON ITS ADOPTION.
WHEREAS, the City Council of the City of College Station, Texas, deems
it advisable and in the best interests of the City and its inhabitants to refund all
of the outstanding bonds of the City which are payable from the net revenues
X/133
Ordinance No. 494
January 13, 1967
Page 2
of its waterworks system, sanitary sewer system and/or electric light and
power system, or any combination of such systems into one issue of bonds
payable from the net revenues of the combined waterworks, sanitary sewer
and electric light and power systems; and
WHEREAS, the following revenue bonds of said City are presently outstanding
and unpaid:
City of College Station Waterworks and Sewer System Revenue Bonds,
dated February 1, 1951, being Bonds Nos. 23 to 60, both inclusive,
in the denomination of $1, 000 each, aggregating the principal sum of
$38, 000, maturing on February 1 in each of the years 1968 through
1981, bearing interest at the rate of 3% per annum; and
City of College Station Waterworks and Sewer System Revenue Bonds,
Series II of 1951, dated August 1, 1951, being Bonds Nos. 23 to 30,
both inclusive, in the denomination of $1, 000 each, aggregating the
principal sum of $8, 000, maturing on February 1 in each of the
years 1968 through 1971, bearing interest at the rate of 3-1/2% per
annum;
and
WHEREAS, the proceedings authorizing the issuance of the above bonds
provided that said bonds were redeemable on February 1, 1966 or on any
interest payment date thereafter, and said City now desires to authorize the
issuance of $45, 000 of its Refunding Bonds for the purpose of refunding
paying off and in lieu of $38, 000 of the City's Waterworks and Sewer System
Revenue Bonds dated February 1, 1951, and $7, 000 of the City's Waterworks
and Sewer System Revenue Bonds, Series H of 1951 (the remaining $1, 000
outstanding of the Series II of 1951 being retired with funds on hand and available
for such purpose); and said City Council finds and determines that by refunding
such bonds, as hereinafter provided, that there will result a savings in total
amount of interest to said City; and
WHEREAS, the following revenue bonds of said City are also presently
outstanding and unpaid:
City of College Station Waterworks and Sewer System Revenue Bonds,
Series of 1955, dated February 1, 1955, being Bonds Nos. 32 to 110,
both inclusive, in the denomination of $1, 000 each, aggregating the
principal sum of $79, 000, maturing on February 1, 1968 through 1984,
bearing interest at the rates of 2-3/4% and 3-1/2% per annum, respectively;
and
City of College Station Electric Light and Power System Revenue Bonds,
Series 1955, dated February 1, 1955, being Bonds Nos. 77 through 265,
both inclusive, in the denomination of $1, 000 each, aggre Sgt
Ordinance No. 494
January 13, 1967
Page 3
principal sum of $189, 000, maturing on February 1, in each of the
years 1968 through 1984, bearing interest at the rates of 2-3/4%,
3% and 3-1/4% per annum, respectively; and
City of College Station, Texas, Electric Light and Power System
Revenue Bonds, Series 1962, dated August 1, 1962, being Bonds Nos.
4 through 7, both inclusive, in the denomination of $5, 000 each,
aggregating the principal sum of $20, 000 maturing on February 1 in
each of the years 1968 through 1971, bearing interest at the rate of
2. 90% per annum; and
WHEREAS, in the proceeding authorizing the issuance of each of the
series of bonds, said City expressly reserved the right to redeem, for
refunding purposes only, all of said bonds on anyinterest payment date, provided
that all bonds then outstanding payable from the net revenues of the waterworks
system, sanitary sewer system, and/or electric light and power system, or
from the net revenues of any combination of such systems, are to be refunded
into one issue of bonds payable from the net revenues of the waterworks
system, sanitary sewer system and electric light and power system, and
further provided that the bonds of the refunding bond issue bear the same
interest rate or rates and maturity date or dates as the underlying bonds
to be so refunded and exchanged, and said City now desires to authorize the
issuance of $288, 000 of its Refunding Bonds for the purpose of refunding,
cancelling and in lieu of the above outstanding revenue bonds of said City,
such refunding bonds to bear the same interest rate and have the same maturity
date as the bonds being refunded and exchanged; and
WHEREAS, said City has determined that said $45, 000 Refunding Bonds
and said $288, 000 Refunding Bonds should be combined into a single issue
of $333, 000 Refunding Bonds payable from the net revenues of the combined
waterworks system, sanitary sewer system and electric light and power system;
and
WHEREAS, said City has duly and validly exercised its option to refund
all aforementioned outstanding revenue bonds;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF COLLEGE STATION, TEXAS:
Section 1. Authorization, Designation, Amount and Purpose. That said
City's coupon bonds to be designated the "CITY OF COLLEGE STATION WATER-
WORKS AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM
REVENUE REFUNDING BONDS, SERIES 1967", are hereby authorized to
be issued and delivered in accordance with the Constitution and laws of the State
of Texas in the principal amount of $333, 000 for the purpose of refunding $38, 000
in principal amount of City of College Station Waterworks and Sewer System
Revenue Bonds, dated February 1, 1951; for the purpose of refunding $7, 000
'11.85
Ordinance No. 494
January 13, 1967
Page 4
in principal amount of City of College Station Waterworks and Sewer System
Revenue Bonds, Series II of 1951, dated August 1, 1951; for the purpose of
refunding $79, 000 in principal amount of City of College Station Waterworks
and Sewer System Revenue Bonds, Series of 1955, dated February 1, 1955;
for the purpose of refunding $189, 000 in principal amount of City of College
Station Electric Light and Power System Revenue Bonds, Series 1955, dated
February 1, 1955; and for the purpose of refunding $20, 000 in principal amount
of City of College Station, Texas, Electric Light and Power System Revenue
Bonds, Series 1962, dated August 1, 1962.
Section 2. Date, Numbers, Denomination, Interest Rates and Interest
Payment Dates, and Maturity. Said bonds shall be dated February 1, 1967, shall
be numbered consecutively from 1 through 281, shall be in the denominations
specified in the schedule below, shall bear interest form their date until
maturity at the rates specified in the schedule below, with said interest to be
evidenced by interest coupons payable August 1, 1967 and semi-annually there-
after on each February 1 and August 1, and shall mature and become due and
payable serially on February 1 in each of the years, and in the amounts as set
forth in the following schedule:
Bond Numbers Coupon
Year of Maturity (both inclusive) Denomination Rate Amount
1968 1 - 12 $ 1, 000 2.75 $12, 000
13 5, 000 2.90 5, 000
14 - 16 5, 000 4. 50 15, 000
1969 17 - 22 5, 000 4. 50 30, 000
23 - 34 1, 000 2. 75 12, 000
35 5, 000 2, 90 5, 000
1970 36 - 47 1, 000 2. 75 12, 000
48 5, 000 2. 90 5, 000
1971 49 - 57 1, 000 2. 75 9, 000
58 5, 000 2. 90 5, 000
59 - 62 1, 000 3.50 4 000
1972 63 - 72 1, 000 2.75 10, 000
73 - 76 1, 000 3.50 4, 000
1973 77 - 86 1, 000 3. 00 10, 000
87 - 90 1, 000 3. 50 4, 000
1974 91 - 100 1, 000 3. 00 10, 000
101 - 104 1, 000 3.50 4, 000
1975 105 - 115 1, 000 3. 00 11, 000
116 - 119 1, 000 3. 50 tirl.96
1976 120 - 130 1, 000 3.00 11, 000
131 - 134 1, 000 3. 50 4, 000
Ordinance No. 494
January 13, 1967
Page 5
Bond Numbers Coupon Amount
Year of Maturity (both inclusive) Denomination Rate
1977 135 - 145 $1, 000 3.00 $11, 000
146 - 149 1, 000 3.50 4, 000
1978 150 - 161 1, 000 3.00 12, 000
162 - 165 1, 000 3.50 4, 000
1979 166 - 177 1, 000 3.25 12, 000
178 - 182 1, 000 3.50 5, 000
1980 183 - 194 1, 000 3.25 12, 000
195 - 199 1, 000 3.50 5, 000
1981 200 - 212 1, 000 3.25 13, 000
213 - 217 1, 000 3.50 5, 000
1982 218 - 230 1, 000 3.25 13, 000
231 - 235 1, 000 3.50 5, 000
1983 236 - 249 1, 000 3.25 14, 000
250 - 258 1, 000 3.50 9, 000
1984 259 - 272 1, 000 3. 25 14, 000
273 - 281 1, 000 3. 50 9, 000
Section 3. Place of Payment. That the principal of and interest on said
bonds shall be payable to bearer, in lawful money of the United States of America,
without exchange or collection charges to the bearer, upon presentation and
surrender of proper bond or interest coupon, at the University National Bank,
College Station, Texas, which place shall be the paying agent for said bonds.
Section 4. Execution of Bonds and Interest Coupons. That the facsimile
of the official seal of said City shall be lithographed or printed on each of said
bonds, and each of said bonds shall be signed by the Mayor and countersigned by
the City Secretary of said City, by their lithographed or printed facsimile signatures,
and the interest coupon attached to said bonds shall also be executed by said
facsimile signatures of the Mayor and City Secretary, said facsimile seal
on the bonds and said facsimile signatures on the bonds and interest coupons shall
have the same effect as if the official seal of the City had been manually impressed
upon each such bond and as if the Mayor and City Secretary had in person
and manually signed each such bond and interest coupon.
Section 5. Form of Bonds. That the form of said bonds shall
be substantially as follows:
01187
Ordinance No. 494
January 13, 1967
Page 6
NO. $1, 000*
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION
WATERWORKS AND SEWER SYSTEM AND ELECTRIC LIGHT
AND POWER SYSTEM REVENUE REFUNDING BOND, SERIES 1967
FOR VALUE RECEIVED, the City of College Station, in the County of
Brazos, State of Texas, hereby acknowledges itself indebted to and promises to
pay to bearer on February 1, 19 , the sum of
ONE* THOUSAND DOLLARS
and pay interest thereon, from the date hereof, at the rate of % per
annum (NOTE TO PRINTER: For interest rate see Schedule in Section 2 of this
Ordinance), evidenced by interest coupons payable August 1, 1967, and semi-
annually thereafter on each February 1 and August 1 while this bond is outstanding.
The principal of this bond and the interest coupons attached hereto shall be
payable to bearer, in lawful money of the United States of America, without
exchange or collection charges to the bearer, upon presentation and surrender
of this bond or proper interest coupon, at the University National Bank, College
Station, Texas, which place shall be the paying agent for this series of bonds.
This bond is one of a Series of coupon bonds dated February 1, 1967,
issued in the principal amount of $333, 000, for the purpose of refunding $38, 000
in principal amount of City of College Station Waterworks and Sewer System
Revenue Bonds, dated February 1, 1951; $7, 000 in principal amount of City of
College Station Waterworks and Sewer System Revenue Bonds, Series II of 1951,
dated August 1, 1951; $79, 000 in principal amount of City of College Station
Waterworks and Sewer System Revenue Bonds, Series of 1955, dated February 1,
1955; $189, 000 in principal amount of City of College Station Electric Light
and Power System Revenue Bonds, Series 1955, dated February 1, 1955; and
$20, 000 in principal amount of City of College Stat ion Electric Light and Power
System Revenue Bonds Series 1962, dated August 1, 1962. In addition to
all other rights, the holders of this Series of bonds shall be subrogated to all
pertinent and necessary rights of the holders of the obligations being refunded thereby
It is hereby certified and recited that this bond has been duly and validly
authorized, issued and delivered in accordance with theConstitution and laws
*NOTE TO PRINTER: Except for Bonds Nos. 13, 14, 15, 16, 17,
18, 19, 20, 21, 22, 35, 48 and 58 which are in denomination of $5, 0
01198
Ordinance No. 494
January 13, 1967
Page 7
of the State of Texas; and that the interest on and principal of this bond, and the
Series of which it is a part, are payable solely from and secured by a first lien
on and pledge of the revenues of the Waterworks System, Sewer System and
Electric Light and Power System of said City, after deduction of reasonable
operation and maintenance expenses.
Said City has reserved the right, subject to the restrictions stated in
the ordinance authorizing this Series of bonds, to issue additional revenue bonds
which may be secured by and made payable from the same revenues as, and
be on a parity and of equal dignity in all respects with, this Series of bonds.
The holder hereof shall never have the right to demand payment of this
obligation out of any funds raised or to be raised by taxation.
IN WITNESS WHEREOF, this bond and the interest coupons attached
hereto have been signed by the imprinted or lithographed facsimile signature of
the Mayor of said City and countersigned by the imprinted or lithographed facsimile
signature of the City Secretary of said City, and a facsimile of the official seal of
said City has been duly printed or lithographed on this bond, all of the 1st day
of February, 1967.
Mayor, City of College Station, Texas
(/)
City Secretary, City of College Station,
Texas
Section 6. Form of Interest Coupons. The interest coupons to be
attached to said bonds shall be in substantially the following form:
NO. $
ON THE 1ST DAY OF , 19
the CITY OF COLLEGE STATION, in the county of Brazos, State of Texas,
PROMISES TO PAY TO BEARER, without exchange or collection charges, at
the University National Bank, College Station, Texas, the sum of $
in lawful money of the United States of America solely from the funds specified in
the bond to which this coupon is attached and without right to demand payment out
of any funds raised or to be raised by taxation, said sum being interest due that
date on the CITY OF COLLEGE STATION WATERWORKS AND SEWER SYSTEM
AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE REFUNDING BONDS,
SERIES 1967, dated February 1, 1967.
Bond No.
i
Gj
fAa \AV; �: ; f;l C`<. ,,L_,/-_,( _,__ -- ___.___
City Secretary, City of College Station,
Texas
Mayor, City of College Station, Texas
01189
Ordinance No. 494
January 13, 1967
Page 8
Section 7. Registration of Bonds by State Comptroller and Form of
Registration Certificate. Each of said bonds shall be registered by the Comptroller
of Public Accounts of the State of Texas. Upon registration, said Comptroller
(or a deputy designated in writing to act for said Comptroller) shall manually
sign the Comptroller's Registration Certificate printed on the back of each of said
bonds and the seal of said Comptroller shall be impressed or printed or lithographed
on back of said bonds. The form of such Registration Certificate shall be
substantially as follows:
OFFICE OF THE COMPTROLLER I
X
THE STATE OF TEXAS X
REGISTER NO.
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 by law; that he finds that it has been
issued in conformity with the Constitution and laws of the State of Texas; and that
it is a valid and binding special obligation upon the City of College Station, Texas,
payable solely from the revenues pledged to its payment, and said bond has this
day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts of the State
of Texas
Section 8. Definitions. (a) The term "City" refers to the City of
College Station, Texas, or where appropriate to the City Council thereof.
(b) The term "Systems" as used in this
ordinance shall mean the City's combined Waterworks System, Sewer System, and
Electric Light and Power System, including all present and future extension, additions,
replacements and improvements thereto.
(c) The term "Systems Fund" shall mean all
revenues derived from the Systems.
(d) The term "Net Revenues" as used in this
ordinance shall mean the gross revenues of the Systems less the reasonable expense
of operation and maintenance, including all salaries, labor, materials, repairs,
and extensions necessary to render efficient service, provided however, that only
such repairs and extensions, as in the judgment of the City Council, reasonably and
fairly exercised, are necessary to keep the plant or utility in operation arid render
adequate service to the City and the inhabitants thereof, or such as might be necessary
01190
Ordinance No. 494
January 13, 1967
Page 9
to meet some physical accident or condition which would otherwise impair the
Bonds authorized by this ordinance and any additional bonds permitted to be
issued hereunder, shall be deducted in determining "Net Revenues. "
(e) The term "Bonds" shall mean the $333, 000 of
bonds authorized by this ordinance.
(f) The term "Additional Bonds" means the
Additonal Bonds which the City reserves the right to issue under Section 11 hereof.
Section 9. Pledge. The Bonds and all Additional Bonds, and the interest
thereon, are and shall be payable from and secured by an irrevocable first lien
and pledge of the net revenues of the Systems, and said net revenues are 'hereby
pledged irrevocably for the payment and security of the Bonds and the Additional
Bonds and the interest thereon.
Section 10. Rates and Use of Revenues, The City covenants and agrees
with the holders' of the Bonds, and Additional Bonds if and when issued, that it will:
(A) fix and maintain rates and collect charges for the facilities and services
afforded by the Systems which will provide revenues sufficient at all times:
(1) To pay all operation, maintenance, depreciation, replacement and
betterment charges of the Systems;
(2) To establish and maintain the Bond Fund;
(3) To pay all outstanding indebtedness against the Systems, other than
Bonds, as and when the same become due. Provided also, that no free services of the
Systems shall be allowed, and should the City or any of its agencies or instrument-
alities make use of the services and facilities of the Systems, payment of the
reasonable value thereof shall be made by the City out of funds derived from
sources other than the revenues and income of theSystems; and
(B) deposit as collected all revenues derived from the operation of the Systems into
the Systems Fund which shall be kept separate and apart from all other funds of
the City. The Systems Fund shall be administered as follows:
(1) Bond Fund: From the funds in the Systems Fund, the City shall pay into
the Bond Fund during each year in which any of the bonds herein authorized are
outstanding, commencing with the date of the delivery of the bonds herein
authorized to the purchasers thereof, an amount equal to 100 per centum of the
amounts required to meet the interest and principal payments falling due on or before
the next maturity date of the bonds. In addition to such payment, the City shall pay
into the Bond Fund from the Systems Fund in each year twenty (20%) per centum
of the above required amount until such time as there is in the Bond Fund an amount
sufficient to meet the interest and principal payments falling due on or before the
9
Ordinance No. 494
January 13, 1967
Page 10
next maturity date of the bonds and the interest and principal payments on the bonds
for one year thereafter. The amount required to be paid into the bond fund in
each year shall be paid in substantially equal monthly payments from the money
in the Systems Fund, after deductions have been made for paying the reasonable
cost of operating and maintaining the Systems for such month.
(2) Excess Revenues. Any funds remaining in the Systems Fund, after
provision for the reasonable cost of operating and maintaining the Systems, and
after paying the amounts required to be paid into the Bond Fund as above provided,
may be used by the City for the purchase of said bonds at not exceeding the
principal amount thereof; provided, however, that if no such bonds are readily
available for purchase at not exceeding the principal amount thereof, then such
excess revenues may be used for any lawful purpose.
Section 11. Additional Bonds. In addition to inferior lien bonds authorized
by Chapters 249 and 250, Acts of the 51st Legislature of Texas, 1949, as amended,
the City expressly reserves the right hereafter to issue additional parity bonds,
which when issued, may be secured by and payable from , a first lien on and
pledge of the net revenues of the Systems in the same manner and to the same
extent, and in all respects of equal dignity with, as the bonds authroized by this
ordinance. It is provided, however, that no such additional parity bonds shall
be issued unless:
(a) An independent firm of certified public accountant certifies that the
net earnings of the Systems for the twelve month period next preceding the month
in which the ordinance authorizing such additional parity bonds is adopted, were
equal to at least one and one-half ( 1-1/2 ) times the principal and interest
requirements on the then outstanding bonds payable from the revenues of said Systems
and on said additional bonds, when issued, sold, and delivered, for the calendar
year in which said requirements are greatest.
The term "net earnings" as used in this Section shall mean all of the
net revenues of the Waterworks System, the Sewer System and the Electric Light
and Power System, exclusive of income received specifically for capital items,
after deduction for the reasonable expenses of operation and maintenance of the
Systems excluding expenditures which under standard accounting practice should
be charged to capital expenditures.
(b) Said additional bonds are made to mature on February 1st in each of the
years in which they are scheduled to mature .
Section 12. Maintenance and Operation. The City shall maintain the
Systems in good condition and operate the same in an efficient manner and at a
reasonable cost. So long as any of the bonds are outstanding, the City agrees to
maintain insurance for the benefit of the holder or holders of the bonds, on the
Systems, of a kind and in an amount which usually would be carried by private
011.194
Ordinance No. 494
January 13, 1967
Page 11
companies engaged in a similar type of business. This ordinance shall not be
construed as requiring the City to expend any funds which are derived from
sources other than the operation of the Systems, but nothing herein shall be
construed as preventing the City from doing so.
Section 13. Account Periodic Statements and Inspection. The City
shall keep proper books of records and accounts, separate from all other records
and accounts, in which complete and correct entries shall be made of all transactions
relating to the Systems. Upon written request made not more than 60 days following
the close of the fiscal year, the City shall furnish to any holder of any of the
bonds, complete financial statements of the Systems in reasonable detail
covering such fiscal year, certified by the City's Auditor. Any purchaser, holder,
or holders of 25% of the outstanding bonds of said Systems shall have the right
at all reasonable times to inspect the Systems and all records, accounts, and data
of the City relating thereto.
Section 14. Special Covenants. The City hereby further covenants as
follows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of Bonds and has lawfully exercised said power
under the Constitution and laws of the State of Texas, including said power existing
under Articles 1111-1118, both inclusive, Revised Civil Statutes of the State of
Texas, with amendments thereto; that the Bonds issued hereunder shall be
ratably secured by said pledge of income, in such manner that one bond shall
have no preference over any other Bond of this issue.
(b) The City covenants and represents that
other than for the payment of the Bonds herein authorized, the rents, revenues
and income of the Systems have not in any manner been pledged to the payment of
any debt or obligations of the City or of the Systems.
(c) That, so long as any of the Bonds or
Additional Bonds remain outstanding, the City will not sell, or encumber the
Systems or any substantial part thereof, and that it will not encumber the revenues
thereof unless such encumbrance is made junior and subordinate to all of the
provisions of the Ordinance.
(d) That no free service of the Systems
shall be allowed, and should the City or any of its agencies or instrumentalities
make use of the services and facilities of the Systems payment of the reasonable
value thereof shall be made by the City out of funds from sources other than the
revenues and income of the System.
(e) To the extent that it legally may, the
City further covenants and agrees that, so long as any of the Bonds or any interest
thereon is outstanding, no franchise shall be granted for the installation or operation
01193
Ordinance No. 494
January 13, 1967
Page 12
of any competing Systems, that the City will prohibit the operation of any such
Systems other than those owned by the City and the operation of any such Systems
by anyone other than this City is hereby prohibited.
Section 15. Bonds are Special Obligations. The Bonds are special
obligations of the City payable from the pledged revenues and the holder thereof
shall never have the right to demand payment thereof out of funds raised or
to be raised by taxation.
Section 16. Subrogation. That in addition to all other rights, the holder
of the Bonds shall be subrogated toall pertinent and necessary rights of the holders
of the obligations being refunded thereby.
Section 17. Approval and Registration. The Mayor of said City is hereby
authorized to have control of said Bonds and all necessary records and proceedings
pertaining to said Bonds pending their delivery and their investigation, examination,
and approval by the Attorney General of the State of Texas, and their registration
by the Comptroller of Public Accounts of the State of Texas. $288, 000 in principal
amount of the Bonds herein authorized such bonds being represented by Bonds
numbered 1 through 13 and 23 through 281 respectively, shall be exchanged for
the bonds being refunded thereby. The Comptroller of Public Accounts of the
State of Texas is hereby authorized and directed to deliver said Bonds herein
authorized to the holder or holders of the obligation being refunded thereby, in
exchange for, and upon surrender and cancellation of, a like principal amount,
a like interest rate or rates, and a like maturity date or dates of the underlying
bonds being refunded, provided that all current and unmatured interest coupons
are attached to each of said obligations surrendered for exchange. Said exchange
may be made in one or in several installment deliveries.
Section 18. Duties of City Officers. That the Mayor and City Secretary and
other appropriate officers of the City are hereby authorized and directed (a) to
proceed with the sale of Bonds number 14 through 22 to the highest bidder therefor,
subject to the unqualified approving opinion of the Attorney General of the State of
Texas and Baker, Botts, Shepherd & Coates, market attorneys, (b), when
said bonds have been approved by said Attorney General and registered by the
Comptroller of Public Accounts of the State of Texas, to deliver such bonds to the
purchaser thereof upon receipt of the full purchase price thereof and (c) to do any and
all other things necessary or convenient to carry out the provisions of this ordinance.
Section 19. Effective Date of Ordinance. This ordinance shall take effect
from and after its passage.
PASSED AND APPROVED this 13th day of January, 1967.
ATTEST:
City Secretary
APPROVED:
D. A. Anderson, ayor
01 94