HomeMy WebLinkAbout1993-2033 - Ordinance - 09/09/1993ORDINANCE NO. 2033
ORDINANCE AUTHORIZING THE ISSUANCE OF
PUBLIC PROPERTY FINANC~ CONTRACTUAL OBLIGATIONS
AND OTHER MAI I'hRS IN CONNECTION THEREWITH
WHEREAS. Ibc Pubhc Property Finance Act. Scclion 271.001 - 271.009. Texas Local Government Code. as
amended (the "Act"). authenzes cities to execute, perform, and make payments under contracts wxth any person for
thc use. acquisition, or porchasc of personal property as descnhed [] thc Act; and
WHEREAS. the Act permJts the governing body of a cay to execute contracts in uny form deemed appropru~
by said govemmS body tn connscuon with the use. acqu~Uon, or purchase of personal property; and
WHEREAS. the Cry Councd of thc City of College Stauon. Texas (the "Issuer") demres to complete the
ncquisition or purchase personal property descdhed m Exhib~! A. attuched hereto und incorporated by reticence
herein, or such other pe~onnl property, apphances, eqmpment, facifiues, furnishings, or int,'rests therein, whether
movable or fixed, deemed by the Csty Councd of thc Issuer to be necessary, useful, und/or apprepnatc for the
purposes of the Issuer (the "Property"); und
WHEREAS. the City Council of the Issuer deems :t approprmte to adopt IlUs Ordmunce und issue the *Con-
trnctual Obhgauons" herein authorized ns penmtled by thc Act.
NOW, THEREFORE. BE IT ORDAINED BY TIlE CITY COUNCIL OF THE CITY OF COLLEGE
STATION. TEXAS THAT'
Section 1. AMOUNT AND PURPOSE OF CONTRACTUAL OBLIGATIONS: The Issuer's Pubhc Property
Finance Conlractenl Obligations (hereinafter sometimes called the "Comractual Obligauons") m-e hereby authorized
to be issued m the aggregate Imnc~pal nmount of $400.000 FOR THE PURPOSE OF PAYING ALL OR A
FORTION OF THE ISSUER'S CONTRACTt~AL OBLIGATIONS INCURRED IN CONNECTION WITH THE
ACQUISITION OR PURCHASE OF PERSONAL PROPERTY. IN ACCORDANCE WITH TI-IB PROVISIONS
OF THE PUBLIC PROPERTY FINANCE ACT. SECTION 271.001 - 271.009. TEXAS LOCAL GOVERNMENT
CODE. AS AMENDED.
Section 2. DESIGNATION. Thc Conwactunl Obhgatlons shall he designated as the "CITY OF COLLEGE
STATION. TEXAS. PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATIONS. SERIES 1993."
Section 3. DATE. DENOMINATIONS. NUMBERS. MATURITIES. AND INTEREST RATES OF
CONTRACTUAL OBLIGATIONS. There shall be issued, sold. und dehvered herconder fully regxstered conlrac#ml
obli?,,ons, without interest coupons, dated September 1. 1993. hereinafter further desenhed, numbered consecutively
I-1 or from R-I upward, payable to the respective tmtm] registered owner thereof (as designated in Section 17
hereof), or to the reknstered assignee or assignees of smd mmal contract~ obligation ca' uny portmn or potions
thmeof (in each case. the "regsstered owner").
Thc term "Contractual Obhgauons'* as used in flus Ordmunce shall meun and incluctc collectively the
contractual obhgation initially issued and delivered pm-suunt to this Ordinance and all substitute coniractual
obhgat~ons exchanged thorefor, as weft as aH other subsUtute conlrscnm] obligations und replacemont contractual
obligations issued pursuant hereto, und the term "Contractual Obligation* shall mcan uny of thc Conlractunl
Obligations.
The Coon'acttm] Obhgalions shall bert mature and hem' interest m accordance with the following schedule:
CERTIFICATE FOR ORDINANCE
We. the ander~igned Mayor and City Seore~ary of the City of College Station. Texas (the *City"). he,by
comfy as follows:
I. The City Couucd of the City (the "Council"} cenvened In regulnr sessmn, open to the public, ou
September 9. 1993. at the ment, ng place destgnoted [] the notice (the "Mceling"). and the roll was called of the
members, to wit: Larry J. Ringer. Mayor. and the following City Councflmembe~: Fred Brown. Dnvid l-hcksou.
Lynn Mclthaany. Hubbard Kennedy. Vernon Sclmeidor. and Nancy Crouch. AH members of the Council were
present, except all Dre~en~: . constituting a quorum. Whereupon among othe~' businass.
the following wns Iransucted nt the Meeting a written ordinance entitled:
ORDINANCE AUTHORIZING THE ISSUANCE OF PUBLIC PROPERTY FINANCE
CONTRACTUAL OBLIGATIONS AND OTHER MA-I-I'P. RS RELATED THERETO
(the "Ordinance") was duly mu'educed for the conslderauon of the Councd and read m full. It was then duly moved
by Councdmember Brown and seconded by Counctimember SchneJ. der.__ thnt the
Ordinance be finally passed and adopted; and alter due discu~on, such moUon, canying vnth ti the adoption of the
Ordinance prevaded and carried by the following vote:
vus: rY ous:. D AUSVeSrr,o s: t9 .
2. A Iruc, full. nmi correct copy of the Ordinance adopled at the Meeting is attached to and follows flus
Certificate: the Ordinance has been duly recorded in the Councd's mmules of the Mceung: the above and fo~'egmng
paragraph is a uue. full. and correct excerpt fi'om the Council's minutes of the Meeting pertaining to the adoption
of the Ordinance: the persons named in the above and foregoing parngraph are duly chosen, quahfied, and ncting
officers and membe~ of the Council as indicated therein: each of the officem and members of the Council was duly
and sufficiently noufied officially and personally, in advance, of the time. place, and porpor, e of the Menung. nnd
that the Or&nnnce would be mlroduced and considered for edopUon at tho Menung and each of such officers and
members consented, in advance, to the holding of the Meeting for such propose: and the Meeting wa~ open to the
pubhc, and pubhc notice of the lime. pluce, and purpose of the Mcetmg was g~ven, all as requu~l by Article 6252-
17. Vernou's Texas Civil Statutes. as emended
3. Connie Hooks is the duly appointed and acting City Seoretary of Ihe City.
SIGNED AND SEALED THIS September 9,
City Secretary
City of College Station. Texas
City of College Station, Texas
(CITY SEAL)
MATURITY DATE
(September I) MATURING AMOUNT
1994 $80,000
1995 80.000
1996 80.000
1997 80,000
1998 80.000
The Comrnctual Obhgat~ons shall bear interest at a rate equal to 70~ oftbe pnme rate of Bank One N.A., Houston,
Texas determined on the Dehvcly Date and adjusted semumn~ly on each interest payment date thereafter. If the
prime rate cannot he determined, lite Contractual Obh~atlons shall bear mteres! at 70~-. of the "lmme money rates"
or stmtlar mdex as published m the Wall Street Jourfldl on the day ]~or to such interest paymcot date.
Section 4. CHARACTERISTICS OF THE CONTRACTUAL OBLIGATIONS (a) Remslratton, Transfer,
Conversion, and Exchange~ Authonticataon. The Issuer shall keep or cause lo he kept at the principal coq~rsle trust
office of Fa'st American Bank. Bo/an, Texas (the "Paying Agent/Reg~smn-") books or records for the registrauon
of the teansfer, conversion, and exchange of the Conlract~ Obligations Cthe 'Reglstrsllon Books'). and the Issuer
hereby appmnls the Paymg Agent/Reglstear as its registrar and teans~r agent lo keep such books or recoils and make
such regsslrattons of transfers, conversions, and exchanges under such reasonable regulauons as the Issuer and the
Paying Agenl/RegisWar may prescribe, and the Paying AgenVRugisWar shall make such regssuauons. Iransfers.
conversions, and exchanges as herem provided. Altached hereto as Exinbit B as a copy et the Paying Agont/Rebnslrar
Agreement between the Issuer and the Paying Agent/Regislrar which .s hereby approved m substanually final form,
and the Mayor and City Seereta~ of the Issuer are hereby authorized lo execute the Paymg Agonl/Ragisttm'
Agreement and approve any changes m the fina] form thereof.
The Paying Agenl/Registrar shall obtain and record in the Registr~zon Books the address of the registered
owner of each Contractual Obltgafion lo which payments wtth respect to the Contractual Oblil0mons shall he mailed.
as hereto provided; but it shall be the duty el each registered owner to notify the Paymg Agenl/Registrar in writing
of the address lo which payments shall be mailed, and such interest payments shall not be mailed unless such notice
has been given. The Issuer shall buve thc right lo respect the Regnslxation Books during regular business hours of
the Paying Agent/Registrar, but otherwise the Paymg Agent/Rag~rar shall keep the Registration Books confidential
and, unless otherwtse requued by law, shall not permit then' anspncl~on by any other entity, The Issuer shall pay the
Paying Agenl/Regastrsr's standard or customary fees and charges for malang such registration, uansfer, conversion.
exchange and delivery of a sub.rule Conlractual Obhgal~on or Conlract~ Obhgafions. Regismmon of asstgnment~.
transf~.s, convemons, and exchanges of Contractual Obltgatlons shall he made m the manner provided and wtth the
effect staled in th~ FORM OF CONTRACTUAL OBLIGATION set forth in this Ordinance. Each substilule
Conlrncloal Obhgat~on shall bear a letler and/or number to dislingmsh it from each other Contractual Obhgation.
Exeel~ as provided m Seetaon 4(c) of thL~ Or&nance, an authorized representat:ve of the Paying
Agonl/Regzstrar shall, hefort: the delivery of any such Contractual Obhgatzon. date and manually sign saal Contenctaal
Obl:gauon, and no such Contractual Obhgatzon shall he deemed lo be issued or outstanding unless such Contractual
Obligation is so executed. The Paying Agent/Reglstrsr promptly shall cancel all paid Contractual Obligation or
Contract~ Obligations sm'rendered for conversion and exchange No ad&oonal ordinances, orders, m' resolutions
need he passed or adopted by the lasuer or any other body ~ person so az lo nccomphsh the foregoing convemon
and exchange of any Contractual Obligauon or pomon thereof, and the Paying Agent/Regnstear shall provtde for the
pnntiag, execution, and dehvery of the subsl~lete Contractual Obligations in the manner prescribed herein, and said
ConWact~ Obligauons shall he of type composttion printed on paper wllh lithographed or steel engraved borders
of customary weight and streagth, Pursuant to Vernon's Ann, Tex. Civ. St. Art. 717k-6. and this Ordmanne. ~ duty
of conversion and exchange of Contractual Obligations ns aforesaid is hereby ~mposed upon tho Paying Agenl/
Reg~swar. and. upon the execution of said Conlracloal Obhganons, the converted nnd exchanged Co~.~.~taal
Obhgauons shall he vahd, incontestable, and enforceable m the same manner and with the same effect as the
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Contraclual Obhgalions which mit*ally were ~ssned and delivered pursuant lo this Ordinance. approved by the
Attorney General. and registered by the Comptroller of Pubhc Accounts.
lb) Payment of Conlract~ Obh~al~ons and Interegt The l~ner hereby further appoints the Paying
Agenl/Rng~stras to acl as the paying agent for paying the principal of and interest on the Contractual Obl~,atlons.
aH as provided in this Ordmunce. The Paying Ageal/Reg~slrar shall keep proper records of all payments made by
the Issuer and the Paying Agenl/RnglsWar with rcspecl to the Conu'acund Obhgattons.
(c) In General. Thc Coatractual Obhgat~ons (il shall be issued m the pnncipal amount of $5.000 or any
inh,gral malt, ple thereof; (il) shall be issued m fully registered form. without interest coupons, with the principal of
and interest on such Cunwactual Obligations to be payable only to the registered owners thereof: (m) may be
transfenv..d and assigned: (tv) may be convened and exchunged for other Contractual Obhganons: (v) shah have the
charactensucs; (vt) shall be signed, sealed, executed.and authenticated; (vn} shall be subject to prior redemimon;
(vail shall be payable as to the pnncipal and interest, and (ixl shall be administered and the Paying Agent/Rnglslras
and the Issuer shall have certain duaes and respunstbdates with respect to the Contrnctunl Obligations. all as
provided, and in the munner ,'md to the effect as required or indicated, in the FORM OF CONTRACt-UAL
OBLIGATION set forth in this Ordinance. The Conlractual Obhgattons imlmlly issued and delivered pursuant to
this Ordmanen (on wluch ts prmled or to which Cnolractual Obhgettens is atlached the Registration Certdicate of
the Complroller of Public Accounts) are not required to be. and shah not be. anlbenl]cated by the Paying
Agent~agtstrar. but on each subsutute Conwactuai Obligation issued tn conversion of and exchange for any
Conlractunl Obligation or Conlractual Obhgattnos issued under this Ordinance the Paying Ageat/Regiatras shall
execute the PAYING AGENT/REGISTRAR*S AUTHENTICATION CERTIPlCATE. in the i'~nm set forth in the
FORM OF CONTRACTUAL OBLIGATION.
rd) Substuute Paving Agenl/R~gtslrar. The Issuer covenants with the registered owners of the Coatractual
Obligettons that at all Umes while the Contractual Oblll01t~ons are outstanding the Issuer will provide a competent
and legally qualified bank. Iru~! company, financial mstttunon, or other agency to act as and perform the services
of Paying Agent/Regis~'ar for Ihe Conlractual Obhgalanos under this Orchnance. and that the Paying Agent/Rngtslrm'
wall be one entity. The Issuer reserves the right to. and may. at its option, change the Paying Agent/Rngtslras upon
not less than 120 days written nonce to the Paying AgenYRegls~rar. to be effective not inter than 60 days prior to
the next principal or interest payment dine after such notice. In the event that the entity at any nme acnng as Paying
Agent/Rgg~slrar (or tls successor by merger, acquisition, or other method} should resign or otherwise cease to
ns such. the Issuer covenants that promptly tt will appoint a competent and Ingally qualified bank. a'usl company.
£manctal institution, or other agency to ncr as Paying Agent/Registrar under this Ordinance Upon uny change an
the Paying Agent/Ragtslrar, the previous Paying Agent/Registrar promptly shall u'ansfer and dehver the Rngistration
Books (or a copy thereof), along with all other pertinent books and records relating to the Contractual Oblignnons.
to the new Paying Agent/Regislrnr designated and appointed by the Issuer. Upon uny change m the Paying
Agent/Regtztrar. the Issuer promptly will cause a written notice thereof to be sent by the new Paying Agent/Rnglslrar
to each registered owner of the Cemficate. by Umted Stales mini. C~t-class postage prelxad, which nonce also shall
give the address of the new Paying/Agent Regtswar By accepting the position and performing as such, each Paying
Agent/Registrar shall be deemed Io have agreed to the provisions of this Ordmunce. und a certified copy of flus
Orthnuncc shall be delivered to each Paying Agent/P~glstrar.
Sectwn 5. FORM OF CONTRACTUAL OBLIGATIONS. The form ofthe Contractual Obligations. inclu,hng
the form of the Paying Agen~egistrar's Autbenlicat~on Ceruflcate. the form of Asstgnmant. and the form of the
Rngtslration Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the Contractanl
Obhg, atlons lmtlally issued and dehvered pmsuant to this Ordmance. shall be. respcct, vely. subslantmlly as follows.
with such appropriate variauons, omissions, or msenians as ate permitted or required by this Ordinance.
FORM OF DEFIN~TIV'E CONTRACTUAL OBLIGATION
Uml~d States of America
Stute of Texas
NUMBER DENOMINATION
R- $
REGISTERED REGISTERED
CITY OF COLLEGE STATION. TEXAS
PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATION
SERI~S 1993
INTEREST RATE:
As Determined Below
MATURITY DATE: ISSUE DATE:
September 1,1993
DELIVERY DATE: CUSIP:.
REGISTERED OWNER:
PRINCIPAL AMOUNT: $
THE CITY OF COLLEGE STATION. TEXAS (the "Issuer"). a pohtleai subdtvlsion of the Stale of Texas.
promises to pay to the Registered Owner. specified above, or registered assigns (the "registered owner"), on the
Maturity Date. specified above, upon presentution and sm'render of th~s Contractual Obhgtuion at the principal
c.o~orate uust office of FIRST AMERICAN BANK. Bryan. Texas. or ~ts successor (the "Paying Agent/Regmrar").
the Pnncipal Amount. specif'ted above, in lawful money of the Umted States of America. and to pay interest thereon
at the Interest Rate. ns determined below, calculated on the bests of a 360-day year of twelve 30-day months, from
the later of the De. livery Date. specified above, or the most recent date to which interest has been paid or duly
prov~dad for. Interest on Ihis Conlractual Obhgadon ~s payable by check on March I. 1994. nmi on each September
I and March I therea-qer, mnded to the registered owner of record as shown on the books of rngiswallon kept by
the Paying Agent/RegssUm- (the "Regtstration Books"). as of the date which is the 15th cnlendar day of the month
next preceding the mtere~ payment date (the "Record Date"). or in such other manner as may he acceptable to the
registered owner and the Paying Agent/Reg~sunr. The Interesl Rate shall be equal to 70% of the prime rate of Bank
One N.A.. Houston. Texas deter'mined on the Delivery Date and adjusted semmnnually on each mterest payment date
therenfter. If the prime rate cnnnol be determined, the Interest Rate shall he 70% of the "prime money rates" or
sonilar index as published m the Wall Street .louraal on the day prior Io such mterest payment dale.
IN CONSIDERATION of the registered owner's acceptance hereof, which acceptance shah constitute the
reglsterad owner's assent hereto and to the terms and conditions of the orthnance anthonzing Ihe issuance of this
Conffactual Obhgation (the "Ordinance"). the Issuer he,by unilaterally contracts wtth such registered owner that ~t
wall ufihze the net available proceeds of the Conlract~ Obb?~ions, after payment of the cosls of issuance related
thereto, to acquire and purchase personal property m nccordance with the Ordinance and the lssner's plan of
aequlait~on therefor.
THE PRINCIPAL OF AND INTEREST ON this Contractual Obhgauon are payable in lawful money of the
Umted Slates of America. withoul exchange or collecl~on charges. The payment of principal and interesl on this
Contractual Obhgafion shall be made by FIRST AMERICAN BANK. BRYAN. TEXAS. which is the "Paying
Agent/Registrar" for tfus Conwactual Obhgatton. to the registered owner hereof on the Maturity Date or on any poor
redempuon date only upon surrender of th~s Contractual Oblq~auon to the Paying Agenl/RegisWar for canceilat,on.
The Issuer covenanls wtth the registered owner of th~s Contractual Obhgation thnt on or before each such d~e= it
will make avadable to the Paying Agent/Registrar. from the "Interest and Sinlong Fend" created by the Orthnnnce.
tbe amounts required to pmv~le for the payment, m anmethately avadable funds, of all pnnctpal of and ~nterest on
the Conunctanl Obhgat~ons when due.
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THIS CONTRACTUAL OBLIGATION MAY BE REDEEMED prior to the Mammy Date on any ,l,,,~ at
tho option of the Issuer. Notice of such early redemption shall be g,ven by depositing nouce fllcn~f m the United
States mini. postage pied, addressed to the registered owner at its address as il appaers on the Rngistrauon Books
kept by the Paying Agent/Registrar.
IF THE DATE for die payment of thc princtpal of er interest on this Contraciuai Obligation shall be a
Saturday, a Sunday. a legal hohday, or a day on which banl~ng msumttons in thc city where the pnncipal coq)orate
trust office of the Paying Agnnt/Registrar is located are anthonzed by law or executive order to close, or the Umied
States Postal Servtce ss not open for business, then the date for such payment shall be the next succeeding day which
ss not such a Snmr~ay. Snnday. legal holiday, or day on which banking snstilonoas are authorized to close, or Ihe
Umted Slates Pnelnl Service ss not open for business, and peyment on such date shall have thc same force nnd effect
as if made on thc original date payment was due.
THIS CONTRACTUAL OBLIGATION IS ONE OF A SERIES OF PUBLIC PROPERTY FINANCE
CONTRACTUAL. OBLIGATIONS, dated as of the Date of Series, specified above, anthonzed in accordance with
the laws of the State of Texas in thc pnncipal amount of $400.000 FOR THE PURPOSE OF PAYING ALL OR
A PORTION OF THE ISSUER'S CONTRACTUAL OBLIGATIONS TO BE [NCURRF. D IN CONNF. CTION
WITH THE ACQUISITION OR PURCHASE OF PERSONAL PROPF. RTY. IN ACCORDANCE WITH THE
PROVISIONS OF ~ PUBLIC PROPERTY FINANCE ACT, SECTION 271.001 - 271.009. TEXAS LOCAL
GOVERNMENT CODE. AS AMENDED.
THiS CONTRACTUAL OBLIGATION may be assigned and shall be transferred only in the Rngisuntion
Bool~ of the Issuer kepi by the Paymg Agenl/Rngistrer acting in the capacity of reglslrar for the Conlractnel
Obligations. upon thc terms and conthtlons set forth m thc Ordinance Among other requirements for such
assignment and unnsfer, this Contractual Obligation must be presented mid surrende~d to the hying Agent/Regaswar.
to~ether with proper instalments of assignment, tn form and with guernntec of mgnatores satisfactory to the Paying
Agnnt/Rcgislrnr, cwdencmg aasignment of this Contractual Obhgnuco to the assignee an whose nnme Ibis Conuactual
Obhga~on ts to be transferred nnd registered. The form of As~agnment printed on this Contractunl Obligntton sbull
be executed by the rng~ered owner, or its duly enthonzed attorney or represenlauve, to evidence the assignment
hereof. The issuer shall pay the Paying AgenVRegtstrar's standard or castomary fees and charges for making such
mmsfer, but the one requesting such transfer shall pay any taxes or other governmental charges required to be prod
wtth respect thereto. The Paying Agenl/Regislrar shall not be required to mnkc Iransfers of registration of this
Contractual Obligation (t) during thc period commencang wtth Ihe close of business on any Record Date and ending
with die opening of business on the next foflowmg pnnclpal er interest payment date or (ti) w~th respect to any
Conunci~ Oblignuon called for rcdempuon prior to maturity, within 45 days prier to lis redemption date. The
registered owner of this Contractual Obhgnuon shall be deemed and t~',~i,~d by the Issuer and the Paying Agent/
Registrar as the nbsolute owner hereof for ail ~. including payment and discharge of lmbility upon this
Contract~ Obhgntion to the extent of such paymeni, and thc Issuer and thc Paytng Agent/Registrar shall not be
affected by any noUce to the contrary.
IN THE EVENT any Paying Agenl/l~egistrar for the Contracimd Obhgattons is changed by the Lssuer.
remgns, or otherwise ceases to aci as such, thc Issuer has covenanted in the Ordinance that it promptly will appoint
a competent and legally quahfind substitute therefor, and cnuse written notice thereof to be mailed to the registered
owners of the Contraclual Obhgatmns.
1T IS HEREBY cemfied, rectted, and covennnted that this Conu'uetual Obhgation has been duly and vnlidly
authorized, assued, and defivered, thai all acts, condmons, mid things required or proper to be performed, eyast, and
be done precedcot to or in thc authorization, issuance, and dehvery of this Contractual Obhgation have been
performed, existed, and bcen done in accordance with law; that this Contractual Obligauon is a general obligation
of the lasuer, issued on the full froth and c~at thereof: and that ann~ ad valorem taxes sufficient to provide for
the payment of the interest on and principal of this Contractual Obhgntmn, as such ante. rest comes due and such
ptiucJpal matra*es, have been iewed and ordered to be levied against all tsxable properly m thc Issuer. end have been
pledged for such payment, within thc lira, prescribed by law.
BY BECOMING the registered owner of thLq Contrnct~ Obh~atton the regtstered owner assents to the
terms and provmons of the Ordmence. a copy of which is on file tn the officm] records of the Issuer. and the
registonxl owner agrees to be bound by such terms end provismns, end agrees dmt the tonns and prov~ions of this
Conffactual ObhgaUon nnd thc Ordumnce consmme a contract between each regtstered owucz hereof nmi the Issuer.
IN WITNESS WHEREOF. the Issuer has censed ~s Conu'actual Obligauon to be s~gned with Ihe menual
or fucsimdc si~naturo of the Mayor of the issuer end countersigned with Ihc mnnual or fucsimfle signature of thc
City Seeretsry of thc Issuer. nnd has caused the officml seal of the Issuer to be duly imprer, sed. or placed in
facsimile, on this Comractual Obligation.
XXXXXXXXAXXXXXXXXX XXXXXXXXXXXI
City Seerctary. C,y of College Stat,on, Texas
Mayor. City of College Stauon. Texas
(SEAL)
The lnitml Conlractual Obliontsnql shall be in the form set fo~h above for the D~.flni~ve ~nntmr'r:ml
Oblinal~ons. exccol the following shall mptn~ the h~lln.o, and the first
NO. I-1 ~100.000
United States of America
State of Texas
CITY OF COLLEGE STATION. TEXAS
PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATION
SERIES 1~93
Issue l~ue:
SEt'I'~MBER I. 1993
Registered Owne~. FIRST AMERICAN BANK
Pnncipoi Amounl: FOUR HUNDRED THOUSAND DOLLARS (~100.000)
'I~ CITY OF COLLEOE STAT[ON, TEXAS (tbe "City" or "IssueF'), for vnlue rece4ved, acknowledges itseff
indebted to and hereby promises to pay to the order of thc Registered Owner. specked above, or thc registered
assigns thereof (thc "Registered Owner"). the Principal Amount. specified above, with principal installments payable
on Sel~ember I in each of the years, and beanng interest al per annum rates m accordance Mth the following
schedule:
YEARS OF
STATED MATURITIF~
PRINCIPAL
INSTALLMENTS
(InfonnnUon to be inserted from schedule ,n Section 3 hereof.)
INTEREST on the unpmd Pnncipal Amount bereof from the Dohvery Date. specified nbove, or from the most
recent interest payment date to which interest hns been paid or duly provided fix until the Princapal Amount has
6
become due and payment thereof has been made or duly provided fi~r shall be paid computed on the basis of a 3~O-
day year of twelve ?.O-day months; such interest being payable on March ! and September I of each year.
commencing Ma~h 1.1994. The Inte~st Rate shall be equal to 70~. of die prune rate of Bank One N.A.. Houston.
Texas determined on the Delivery Date and ndjusted ~miannually on each interest payment date thereafter. If the
prime rate cannot be determined, the Interest Rate shall be 70% of the "pnme money rates" or s~milar index as
published in the Wall Street Journal on the day prior to such interest payment date.
THE PRINCIPAL OF AND INTEREST ON tins Contractual Oblig__=at~n are payable in lawful money of the
United Slates of America. without exchange or collection charges. The final payment of princspal of th~s Conuuctoni
Obhgafion shall be paid to the Registered Owner hereof upon presentetmn and sunwder of dits Contractual
ObUgatton at final maturity, at the I~incipal corporate trust office of FIRST AMERICAN BANK. Bryan. Texas.
which is the "Paying Aganl/Rng~strar" for tins Contractunl Obhgadon. The payment of principal installments and
interest on this Conmlctoni Obligation shall be made by the Paying AgenVReg~strar to the Registered Owner hereof
as shown by die Rngislrat;on Books kept by the Paying Agent/Registrar at die close of lmsmess on thc Record Date
by check drawn by the Paying AgenVRegistrar on. and paynble solely from. funds of the Issoe~ reqtm~d to be on
deposit with the Paying Agent/Registrar for such purpose as hereinafter provided: and such check shall be sent by
die Paying Agent/Regtstrm- by United States mail. postngc prepaid, on each such payment date. to thc registea~l
owner bereof at lis address as it appears on the RegistraUon Books kept by the Paying Agant/Rngisu'm'. as heremnf~-
described. The record date ("Record Dale") fer payments he~on means die Fd'tenndi calendar day of the month
preceding n scheduled payment In the event of a non-payment of interest on a scheduled payment ans,~, and for 30
days thereafter, a new record date for such payment (a "Specaxl Record Date"} w~ll be established by the Paying
Agent/RngtsUar. If and when fund.~ for the payment thereof have been received from die Issuer. Notice of the
Special Record Date and of the scheduled payment date of thc past due payment (the "Special Payment Date". winch
shall be 15 calendm' days after the Spacml Record Date) shall be sent ax least five business days prior to the Specisl
Record Daxe by Umted Slates mad. first class, postage prepmd, to the address of the Regsstered Owner appearing
on the books of the Paying Agenl/Registrar ax the close of buamess on the last business day next preceding the date
of maihng of such nottce. The Issuer covenants with the Reg~sten~d Owner that no later than each prmcknni
installment payment date and interest payment date for th~,~ Conu'uctual Obligatton tt will make avnslnhle to thc
Paying Alient/Rcglstmr the amounts required to provide for the payment, in ~mmediataly &vnilnhl¢ funds, of all
pnncipal of and interest on the Contractual Obligation. when due. [] the manner set forth tn die ordinance authorizmli
the msuance of thc Contractual Obhgauons adopted by the C~ty Couuesl of the City on September 9. 1993 (the
"Or&nance").
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AOENT/REOISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby cemt'ed that thts Conlractual Obligation has been issued under the provisions of the Ordinance
described on the face of this Conlracttmi Obligation; and that this Contractual Obligation has been issued in conver-
sion or ~pincement of. or m exchange for. a contractual obhgatton or contractual obhgations, or a portion of a
contractual obligation or conl~uct~ obligations of a series whnch onginnily was npproved by the Attorney General
of the State of Texas and registered by the Comptroller of Pabhc Accounts of the Slate of Texas.
FIRST AMERICAN BANK
Bryan. Texas
Paying Agenl/Regssu.m-
By
Authorized Represenlative
7
FOR VALUE RECEIVED. the
L /.
(Plee~ u~en SocaJ Secumy or
Te.Mmyer ldemffiomon number)
FORM OF ASSIGNMENT:
ASSIGNMENT
understgned hereby sells,
assigns, and transfers unto
(Please pnnl or typewrite name and address, including z~p code. ~f Tn~t~feree)
the within Contractual Obhgatico and all rights thereunder, nnd hereby u'revneably constttutes nmi appoints
atlorney to register Ihe Iransfer of the willun
Conlrnct~ Obligation on the books kept for regislrntion thereof, with full power of substzmtion in the premises.
Signn~re Guaranteed:
NOTICE: Slgnatom(s) mast be gunnmtced
by a member firm of the New York
Stock Exchange or n commercial bank
or Uast compnny.
NOTICE: The s~gnnmre above must correspond
with the name of the Registered Owner as it
appenm upon the front of thss Conlracmal Obllgndon
m every pamculnr, w~thout alteranon ~ enlargement
or any change whalsoever.
The following abbrnviai~ons, when used in the Ass~gnmem above or on the face of the mthm Contractual
Obligal~on, shnll he conslrued as though they were written out nn full according to npplienble inws or mguinlions:
TEN COM - as tenants m common
TEN ENT - as tenants by the enmetias
JT TEN - as jOtul tenants wllh right of survivorsinp and not as ten~ts m common
UNIF GIFT MtN ACT - Casto(han
(Cast) (Minor)
under Uniform Gu'ts to Mmom Act
(State)
Additional abbrevumons may also be used Ihough not m the hst above.
FORM OF REGISTRATION CER'I'II. ICATE OF COMPT~Or.!.~R OF PUBLIC ACCOUNTS*
*Print on or attach to Initial Contractual Oblisafion only
COMPTROLLER'S REGISTRATION CERTIFICATE: REGIS I ~,K NO.
STATE OF TEXAS:
I HEREBY CER-I'tI-¥ THAT there is on ire and of record m my office a certificate to the effect that the
Attorney General of the State of Texas has ex,mined and finds that thts Contractual Obhgauon has been issued in
conformity with the laws of the Slate of Texas and is a valid and binding oblngalion of the City of College Station.
Texas. and further ~tt this Conlrnct~ Obhgation has been rel~stemd th~s day by me.
WITNESS my signnt~e and seal of office this
(COMPTROL~.~R'S SEAL)
Comptroller of Public Accounts of the State of Tunas
['END OF FORMSJ
Section 6. DEFINITIONS. That/he terms de£med in thss Section for all p~ of this Ordinance. except
where the context by clear unphcation shall othe~'wlse require, shall have the respect, ve munninga as follows, to-yin:
(a) The te~n "Code" shall mean the Inlemal Revenue Code of 1986. ns amended.
(b) Thc lerms "Conlsucleal Obhgation" and "Contractual Obhgauoas" shall mean the "City of Collcga Slation.
Texas Public Properly Finance Contractual Obligations. Sones 1993" authorized to he issued and dahvered by this
Ordinance.
(c) ~ term "Paying Ageat/Rngislrar" shah mcan imtially First American Bank. Bryan. Texas. or any
successor named by ~hc Issuer m accordance with the provisions of Section 5 of this Orthnan~.
Section 7. INTEREST AND SINKING FUND. The City of Collega Stanon. Texas, Public PropenT Finance
Contractual Obligaimns, Series 1993 Interest and Smlang Fund (the "Interest and Ssnklng Fund"), is hereby
authonznd and shall he established end tnmnlained in a depository bank of the issuer, so long as the Coatrac*~tnl
Obligations. or inle~st thereon, nrc outstanding and unpaid. There shall he depe~ted at the appmprmto time in thc
Interest end Sinlang Fund an amount, together vnth other amounts m the lnteresl and Stolons Fund. not less than
the amount of principal end/or interest coming duc on the Conu'actual Obligations on the next succeeding payment
dale. The Inlen~st and Sinlong Fund shall he used to pay the pnnclpal of and interest on the Contractual Obhgntmns
as such prmcipal end interest come due.
Section 8. TAX LEVY. All ad valorem taxes levied end coliecled for and on account of the Coatractenl
Obligauons shall he deposited, as collecled, to the credit of the Inte~st and Sinking Fund. During each year wlule
any of the Conuact~ Obhgalions are out,landing and aupmd, the C-~ty Council of the Issuer shall compute and
ascerlam a rate and amount of ad valorem lax which will he suffictent to raise end produce the money ~luired to
pay the inlerest on the Conuactual Obhgaf~oas as such interest comes due. end to provide and malatain a sinkang
fund adequate to pay the principal of the Coatract~ Obligations as such principal matures (but never less than 2%
of the orsliinal principal amount of the Contractual Obligations as a smlanli fund each year); and said tax shall be
based on the latest npprovnd lax mils of the Issuer, with full aflowance being made for lax dalinqucnctes end the
cost of tax coflecuon. Said rate and amount of ad valorem lax is hereby levied, and is hereby ord~ed to be levied.
against all laxable property in the Issuer for each year wlule any of the Contractual Obhgations are outstandms[ and
unpmd, and smd tax shall he assessed and coflecled each such year end deposited to the c~tht of the lnlereai and
Sinking Fund. Smd nd valo~m taxes sufficient to provide for the payment of the interest on end pnneipal of the
Contractual Obligations, as such mtesest comes due and such principal matures, am hereby pledged for such payment.
within the limit prescnhed by law.
Section 9. SECURITY FOR FUNDS, All Funds created by tins Ordmence shall he secured in the manner and
to the fullest extent permitted or required by law for thc security of pubhc funds, and such Funds shall he used only
for the purposes end in the manner permitted or requtred by this Ordinance.
Section 10. DEFEASANCE OF CONTRACTUAL OBLIGATIONS. (a) Any Contractoal Obhgatton and the
interest thereon shall he denmed to he pud. reined, and no longer outslandmg (a '*Defeased Conlraclonl Obligatton")
mli~n the menmng of this Ordinance, except to the extent provided in subsecuon (d) of this Section 12, when
payment of the pnnelpal of such Contractual Obligation. plus interest thereon to the due date (whether such due
he by reason of maturity or otherwise1 rather (i) shall have beon made or caused to he made in accordance with the
terms thereof or (h) shall have been provided for on or before such duc date by irrevocably depositing with or
making avndable to the Paying Agant/Reglslrar for such payment ( I ) lawful money of the United Slates of America
9
sufficient to make such payment or (2) Government Obbgadons which marine as to princ,pal end interest in such
amounts and at such times as wdl insme the avaHab~hty, without rmnvestmcnt, of soffic~ent money to prov~lc for
such payment, and when proper arrangements have been made by the Issuer with the Paying Agenl/Regtstrer for the
payment of tts services until aH Defensed Centracmal Oblignttons shall have become due and payable. At such tune
ns n Contractual Obhgatton shall be deemed to be a Del'eased Contractual ObhgnUon hereunder, ns nforemucl, such
Contractual Obligat]on mid the interest thereon shah no longer be secured by. payable from. or entitled to the benefits
of. the ad valorem laxes hereto levied as provided in this Ordinance. and such principal nnd inte~st shall be payable
solely .'.urn such money or Government Obhgations.
(b) Any money so deposited w~th the Paying Agenl/Rcgtslrar may at the written direcuon of lite [ssuor also
be invested in Govenlment Obligations. maturing in thc amounts end limes ns hereinbefere set fo~h. end aH income
from such Government Obligations received by the Paymg Agent/Registrar which m not required for the pnyment
of the Cenlzuctual Obli?nons end interest thereon, with respect to which such money has been so deposited, shall
be mined over to the Issuer. or deposited ns dbected in writing by the Issuer.
(c) The term "Governmem Obhgauoes" as used m this Section 12. slmll mean direct obli?r,ons of the Umted
States of Aroencn or obhgations the pnncipal of and interest on which are unconthtmnally guaranteed by thc Umted
Stntes of America. whtch nmy be Umted States Treasury obhgenons such ns its Slate and Local Government Series.
which may be in beok-enU'y form.
(d) Until ali Defeascd Contractual Obhgat]ons shah have become due end payable, the Paying Agent/Rcgismlr
shah perform thc sarviccs of Paying Agent/Rcgistolr for such Defensed Conlractual Obligations the same ns if they
had not been dcfen.,~.d, and thc Issuer shall make proper arrengcments to prowde and pay for such services as
requu~d by this Ordinance.
Section II. DAMAGED, MUTILATED. LOST. STOLEN. OR DESTROYED CONTRACTUAL
OBLIGATIONS. fa) Renlacement Conu'act~ Obhgatinn~ In the event any outstanding Contractual Obligation
ns damaged, mutiinted, lost, stolen, or desnoyed, thc Paying Agent/Regsstrea' shall cause to be pnnted, esecutad, end
dehve~:l, a new contractual obhgatten of the same principal ~nennt. maturity, and interest rate. ns lite dnnmged.
mut]lntcd, lost. stolen, or desm)yed Contracteni Obligation. in replacement for such Conlract~ Obligat]on in the
manner hereinafter provided.
(b) Aoolicatmn for Replacement Contractual Obh~,ntlnng. Apphcntion for t'eplacemcnt of damaged, mutilated.
IosL stolen, or deslroyed Centntcmal Obhgahons shall be made by thc registered owner thon~f to the Paying
Agent/Registrar. In every case of loss. theft, or desuuction of a Conlractual Obligauon. thc registered owner
applying for a replacement conlraclual obhgation shall furmsh to the Issuer and to lite Paying AgenURegtstrar such
security c~ indemnity ns may be required by them to save each of them harmless front any loss or derange with
respect thereto. Also. in every case of loss. theft, or destmctien of a Issuer. the registered owner shall ftmfish to
the Issuer and to the Paying Agent/Rcgislrar evtdcuce to their sat]sfuctinn of the loss, tbefL or destruct]on of such
Contractual Obligation. ns thc case may be. In every case of damage or mutdat]en of a Conlractual Obligation. thc
registered owner shall surrender to the Paying Agent/Registrar for cencelint]on the Contract]ad Obhgatmn so dlunnged
m' mutilated.
(c} No Default Occun-ed. Notwtthstenthng the foregoing provisions of this Sect]on 1 i. m thc event any such
Conlructunl Obhgnuon shaH have matured, end no default has occun'ed which is then cont]nuing in the payment of
the principal of. redemption premium, ffany, or interest on tlus Contractual Obligation. the Issuer tony nuthenze the
.payment of thc same (without surrender therenf except ut the case of a damaged or mutdated Contractual Obfigauen)
instead of issuing a repincemeat conuactosl obhgntion, provided security or indemmty is furnished ns above prodded
in this Section I 1.
(el) Chnrae for Issuing Replacement Comrn~tua] Ohl?,ntin*lS PI'lot to the lssunnce of eny replacement
contracnud obligauon, thc Paying Agent/Registrar shall charge the rng~stenxl owner of such Contractual Obbgation
10
with ali legal, pr, hung. and other expenses m connecuon therewsth. Every replacement contractual obligation issued
pursuant Io the provisions of this Sect]on I1 by value of Ihe fact that any Contractual Obligation is lost. stolen. Or
destroyed shah constitute an obligation of the Issuer whether or not the Io~t. slolan, or destroyed Contractual
Obliga,,on shall be found at any ume. or be enforceable by anyone, and shah be entzfled to aH the benefits of this
Ordinance equally and proport,enately w,th any and all other Contractual Obligat[]ns duly ,ssued under this
(e) Authority for lssmno Renlace[]ent Cnnm,,-_,,_,_~! Obli?.o~,{, In accordance wtth Secuon 6 of Vemon's Ann.
Tex. Civ. St. Art. 717k-6. tins Sect,on 11 of this Orthnance shah consUt,,te authority for the issuance of any such
replacement certificate w,thout necessity of further ac,ion by the Issuer or any other body Or person, nmi the duty
of the replacement of such conUactual obl,gnUons is hereby authorized and imposed upon the Paying Agent/Registrar.
and the Paying Agent/Registrar shah anthenucate and dellvem' such Contractual Obhgat~oes ,n the form and manner
and vnth the effect, ns prowded [] Secuon 4(a) of th~s Orchnance for Contractual Obligauons ,ssued in conversion
and exchange of other Contractual Obl,gations.
Secnon 12. CUSTODY. APPROVAL, AND REGISTRATION OF CONTRACTUAL OBLIGATIONS; I~3ND
COUNSEL OPINION. CUSIP NUIV~ERS AND BOND INSURANCE. The Mayor of the Issuer is hetuby
authorized to have control of the Contractual Obligauons ,n,uaHy sssued and delivered hereunder and ali necessary
records and procendmgs peftmnmg to the Contract~ Obhgalions pending thetr del,very and their investi~finn.
examinauon, and approval by the Attorney General of the State of Texns. and then' reglsUm~on by the Comptroller
of Pabhc Accounts of the Satt~ of Texns. Upon regtstrauon of the Certuqc. a~s satd CompUoller of Public Accounts
(o~ a deputy designated m writing to act for smd Comptroller) shall manually s~gn the Comptro{ler's Registrar,on
Cemficate attached to such Contractual Obliga,,ons. and time seal of said CompU'oller shall he impressed, or placed
,n facsimde, on such Cert~cate. The legal opinion of the Issuer's Bond Counsel. a statement regarding the issuance
of a mu[]cq~nl bond insurance pehcy to secure payment of debt serv,ce on the Contractual Obhgations. ~f any. and
the assigned CUSIP numbers may. al the option of the Issuer. be printed on the Contract~ Obligations ~ssund nmi
del,vered under this Ordinance. but none of such opln,on, statement, or number shall have any legal effect, and shah
be solely for the convenience and ,nfonnat~on of the registered owner, of the Contractual Obligations.
Section 13. CONTRACTUAL UNDERTAKING WITH REGISTERED OWNER. The Issuer hereby, and by
the acceptance of each of the Contract~ Obligations. contractually obhgales and commits ~tself to uttlize the net
proceeds avmlable from the issuance and delivery of the Contractual Obl~al,ons. after payment of costs of issuance
reinted thereto, fol' the acquisition or purchase of the Property ,n accordance wxth this O~lmance and the Issuer's
plan of acquisition therefor.
Sect,on 14. REMEDIES IN EVENT OF DEFAULT. In addiuon 1o ah of the rights and rumndies proxqded
by the laws of the State of Texas. the Issuer covenants and agrees that in the event of default in payment of principal
or interest on any of the Contractue{ Obligatwns when due. or. ,n the event it fa, Is to mn% the payments required
to be made into the Interest and Smlung Fund or defaults in the observance of performance of any other of the
contracts, covenants, condmons, or obi'gallons set forth m tins Ordinance or ,n time Contraclual Obligat,ons. the
following reme&es shall be available:
fa) the registered owners shah he entitled to a writ of mandamus issued by a court of competent jurisdiction
compelling and requmng the Issuer and the ofiicmls thereof to observe and perform the contracls, covonenls.
obhgat~ons, or condmons prescribed [] tins Ordinance: and
Co) any delay or omission to exerc,se any right or power accruing upon any default shah not impair any such
right or power nor be construed to he a wmver of any such default or acquiescence therein, and every such
nghi and powe~ may be exerctsed from time to tone and as oflen ns may be deemed expethent.
Secuon 15. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE CONTRACTUAL
OBLIGATIONS. The Issuer covenants to take any act,on or refrmn from any acuon winch would adversely affecl
II
the treatment of the Contrac!,ml Obligations as obligations desenhed in section lO~ of thu Coda, the rawest on whtch
is not includable m the "gross income" of thc holder for purposes of federal income taxaUon In furtherance thereof,
the Issuer covenants as follows:
(a) to take any action to assm-e that no more than 10% of thc proceeds of the Conlractuul Obhganons (less
amounts deposited to a reserve fund. if any) are ased far any "private business use." as defined in section 141COX6)
of the Code ar. if more than 10% of the proceeds am so used. thal a[]oants, whether or not received by the Issuer.
with respect to such pnvale bas[]uss use. do not. under thc terms of thru Ordmanee ar any underlying affangement.
directly or indu'ectly, secure or prowde for the payment of more than 10% of thc debt service on the Conlractunl
Obligations. in conU'avenl~on of section 141(b)(2) of the Code:
(b) to lake any action to assure thai Jn the event that the "private business use" described in sub- sect,on (a)
hereof exceeds 5% of the proceeds of the Conlrantnsl Obhgat~oas (less amounts deposited to a reserve fund, if any)
then the amount [] excess of 5% ~s used for a "p'ivete business use" which is "related" and nm "dispropomonn~."
wiflun the mcanmg of section 141(b)(3) of the Code, to the governmental use:
(c) to take any actton to assure that no amount which is greater than the lesser of $5,000,000, or 5% of the
pmcoeds of the Contract~ Obhgauons (less amounts deposited into a reserve fund. E any) ~s directly or indtrectiy
used to finnnce loans to persons, other than state or local govemmennd unils. [] comravention of secUon 141(c) of
the Code;
(d) to refz'am fi'om taking any action winch would otherwsse result [] the Conlractuul Obl~,atioas being treated
as "private activity bunds" w~thm the meaning of section 141(b) of the Code:
(e) to refrmn from lakang any action that would result in Ibc Contractual ObligaUons being "federally
gum'an~eed" willun the meaning of ~,ecuon 149(b) of the Code-'
(0 to refrmn from asang my pomon of the proceeds of the Conlracmei Obhgations. do'ectiy or indirectly, to
acqu~e or to seplace funds whtch were used, &rectly or []du'ecfly. to acquire mvestmont I~opetty (as defined in
section 148(b)(2) of the Code} which produces a materially ingher yield over the term of the Contractual Obligations,
other than invnslment prope~y acquired w~th --
(!) proceeds of the Contractual Obl~auom mvus~ed ~' a reasonable temporary penod of three years or less
or. in the case of a refunding bond. for a period of 30 days or less until such proceeds are needed ~n' the
pmpor, e for which the bonds am issued.
(2) amounts invested m a bona fide debt service fund, witinn the meaning of section 1.103-13(bX12) of the
Treasury Regalations. and
(3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do
not exceed 10% of the proceeds of the Contrsetunl Obligations:
(g) to ot.'~'wise restrict the use of the proceeds of the Conuactunl Obligations or nmounts Ireated as proceeds
of the Conunetual Obhgat~oas. as may be necessary, so Ihat the Contractual Obhgations do not otherwise conuavene
the requ~ements of secl~on 148 of the Code (feinting to m-bilrnge) and. to the exlent applicable, section 149(d) of
the Code (relating to advance refundtngs):
(h) to pay to the United States of America at least once during each five-year period (begmmng ou the date
of delivery of the Contractual Obligations} an amount that m at least equal to 90% of the "Excess Earnings," within
the meaning of secUon 148(0 of the Code and to pay to the United Slates of Amorica, not la~er than 60 days nfter
the Contractual Obhgat[]as have been prod in full. 100% of the amount then required to be paid as a result of Excexs
Earnings under section 148(0 of the Code: and
12
(l) to nminlain such records ~ wall enable Ihe issuer to full'all its responsibdities under this suction and sectton
14.8 of the Code and to rein such records for at least s~x yenrs £ollowmg the final payment of Imnc~pal and interest
on the Contractunf Obhguhons.
11 is the undemanding of the Issuer thai the covenants contsined herein nre iflteeded to assm'e compliance with the
Code and any regulations or ruhngs promulgated by the U.S. Department of the Treasury pursuant the~lo. In
furtherance of such intention, the Issuer hereby authorizes and directs the Mayor and City Admimslrator und chief
financnd ofr~cer of the Issuer to execute auy documents, cemficates, or reports requn'ed by the Code and Io make
such elections, on behalf of the Issuer. winch may be permitted by Ihe Code as are conslstenf wllh the pm'poze for
the issuence of the Conlructual Obhgatmns. In the event that reguintlons or mlinga ~e hereafter promulgated which
modify, or expand prowslons of the Code. as npphcable to the Ccolrucmal Obhgulions. the Issuer will not be
requh'ed to comply with any covenant conndalned herein Io the extent that such mo&tic, anon or expansion, in the
opinion of ~tlonally-recogn~..ed bond counsel, will not adversely affect the exempnon from red,rut income taxation
of ink, at on the Conlraclual Oblillations under secl~on 103 of the Code. In the event that regulalions or ruhngs a~e
hereafter promulgated which impose additional reqmremenls which are apphcsble to the Conlructoal Obhgudons.
the Issuer agrees to comply with the addmonul reqtnrements to the extent necessary, in the opinion of nationally-
recogntzed bond counsel, to preserve the exempuon fi'om federal income taxation of interest on thc Contractual
Obhgudons under secuon 103 of the Code.
Secuon 16. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The Issuer hereby desiglmtes
the Conlractoal Obliga~ons as '*qualified lax-exempt obligations" as defined in section 265(bX3) of the Code. In
fimherence of such daslgnatmn, the Issuer represents, covenants, and warrants the following: (a) that during the
calendar yenr in which the Conlructual Obligations use issued. Ihe issuer (including any subordinate entities) has not
des~guated nor will designate bonds or other obhgatmn~, which when nggregated with the Conlructual Obl~.atlons.
will result in n'm~e than $ I0.000.000 of"qualified lax-exempt obhgatlons" being issued: Co} that the Issuer reasonably
anticipates that the amount of lax-exempt obhgations issued during the calendar year m whtch the Cuntractoul
Obl~gunons nre issued, by the issue~ (or any subordinate entities) wdl not exceed $10.000.000: nod (c) that the Issuer
wtll ~ such ucuon or refrmn from such acuon as necessary, and as more particularly set forth in Sectton 17 of
this Ordinance. in order that the Cunlructual Ohilllattens will not be conslde~l "private activity bonds" witiun the
mennlng of secUon 142 of the Code.
Secuon 17. SALE OF CONTRACTUAL OBLIGATIONS. The Contractual Obhgatlons ~e hereby sold and
shall be drJivered m First American Bank. Bryan. Texas for the purchase price equal to ~400.000. The Contractual
Obhgution IRitinlly shah be reglst'ered m the name of Fust American Bank, Bryan. Texas. A Pm~hase Conuaut and
Inveslment Letter substantially in the form attached hereto as Exhtbit C. belwcen the Issuer and Fust American Bnnk.
Bryan Texas. is hereby approved, and shall be executed by Ihe Mayor and Cily Secretsry of the Issuer.
Section 18. AUTHORITY FOR OFFICERS TO EXECUTE ~TS. The Mayor. C~ly Secretary.
Executive Directo~ of Fiseal and Human Resources and chief f'mancnd officer of the Issuer. and ah other officers.
employees, and agents of the Issuer. and each of them. shah be and they ~e hereby expressly nothorized.
empowered, and d~ected from time to time and at any time to do nnd perform all such auts and thin~ and to
execute, acknowledge, and deliver in the name and under the co~pomte seal and on behalf of the Issuer all such
insltuments, whether or not here~n mentioned, as may he uecesssry or dastraHle m order to cat~y out the te~ns and
provistons of tius Ordinance. the Conlrectual Oblil~aHons. the Purchase Contract and Invesnnent Lelter. and the
Paying Agent/Regislrar Agreement.
Section 19. INCORPORATION OF RECITALS. The Issuer hereby finds Illat the statements set forth in the
recitals of this Ordinance are true and correct, and the Issuer hereby mcorlx)rates such recitals as a ~ of this
13
Section 20. EI~I~P-;L"TIVE DATE. This Ordmnnce sludl lake cffect and be sn full force and effect from and
afl~r the date of its passnge, and ~t ~s so ordered.
PASSED AND APPROVED BY THE CITY COUNCn'- OF THE CITY OF COLLEGE STATION, TEXAS,
AND E~-i-i=CTIVE ON this 9th day of Seplember, 1993.
Cfly Sccrelazy, C~ty of College Station.
Texas
{SEAL)
14
Exhib~, A
PERSONAL PROPERTY TO BE ACQUIRED
TYPE OF EQUIPMENT
PC Networlung Equipment
AS400 Haradware Upgradc
Traffic S~gna] Enhancemcn!
ESTIMATED
COST
$ 90,000
$130.000
$180,000
DELIVERY
DATE
Seplember, 1993
March, 1992
September. 1993
A-I
Exhibit B
Form of Paying Agent/Reg~slrar Agreement
THE PAYI]qG AGF2qT/REGISTRAR AGREEMENT IS OMI~ l~I) AT THIS POINT AS IT IS FOUND
EXF. CUTED FORM ELSEWHERE IN THIS TRANSCRIPT
Exlubzt C
Form of Purchase Contract and Investment Letter
~ PURC~E CONTRACT AND I]q'v'~STMENT LE, I~R IS Olkll'l-l'bD AT THIS POINT AS IT I$ fOUND
IN EXF~-'UTED ~ORM ELSEWHERE IN TI'US TRANSCRIPT