HomeMy WebLinkAbout1991-1932 - Ordinance - 12/08/1991ORDINANCE NO 1932
ORDINANCE AUTHORIZING THE ISSUANCE OF
CITY OF COLLEGE STATION. TEXAS,
GENERAL OBLIGATION AND REFUNDING BONDS. SERIES 1991,
AND APPROVING AND AUTHORIZING INSTRUMENTS.
DOCUMENTS, AND PROCEDURES RELATED THERETO
WHEREAS, al an eleeuon duly caiJed and held Ior and wlllun Ihe City of CoUege Slallon, Texas (the
"Issuer" or Ihe "City") on December 8. 1990. the duly quahfied re,ddcnt electors of the Issuer anlhonzed the City
Council of the Issuer (the "Coum. d") lo ixsue IX)lids of the m,'uumum amounl of $5,500,000 with none of such
bond~ havlltg been prewously v~sued (the "1990 Authonzalmn") and to prowde for Ihe paymeul of the prmclpal
of and the interest ou such bonds from the sources and Ul the manner de~crlbed berem:
WHEREAS. tile Courted deems ]1 Io be Ul Ihe be',( mlerest of the Issuer Io is%ue Ihe bouds descnbed
hereto, being $2.7~0,000 from Proposltio~ No. I ol the 1990 Author]zallon leaving $1.750.000 m bond,., lo be
lasued by the CounL]l m the luture Imln such Proposmon and $7511,0(X! Imm PropOSlllOn No 4 leaving $250.000
in bonds,, lo be ~ssued by the Counc]l m Ibe fulure from such Proposition:
WHEREAS. the Issuer has Jssued the "City of College Slat]an. Texa., Pubhc Property Finance Conoactual
Obhgatlons, Series 1991, curreufly outstanding m the aggregate principal mnoant of $1,125.000 (the "Refunded
Contractual Obhgallom,") which are callable by the Issuer al .'my lime ,and which the I~uer desues to refund and
retire with a porhon ol Ihe proceeds ol the bouds issued hereunder; and
WHEREAS, the I~mds hereinafter authorized are to be JSsued and dehvered pursuanl to Arhcle 701 el. heq.
aud Article 717k. Vemou's Texas Civd Slalute',. as ameuded, aud the CIbarter of tho Issuer.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION. TEXAS.
THAT:
Seclmn I. AMOUNT AND PURPOSE OF THE BONDS The bonds ut the Issuer are hereby audtonzed
Io be Jssued and dehvemd in the aggregate principal mnouul of $4.625.{X}0, FOR THE PURPOSE OF
PROVIDING $2.750.000 FOR MAKING PERMANENT PUBLIC IMPROVEMENTS, TO WIT' STREET
IMPROVEMENTS. INCLUDING BUT NOT LIMITED TO REHABILITATION OF COLLECTORS AND
THOROUGHFARES. SIDEWALKS. TRAFFIC SIGNAL ENHANCEMENT, AND NEW STREET
CONSTRUCTION. $750.000 FOR IMPROVING THE EXISTING PUBLIC PARKS IN THE CITY AND
CONSTRUCTION OF ADDITIONAL PARKS IN THE CITY, AND $1.125.000 FOR RETIRING AND
PAYING OUTSTANDING PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATIONS.
Section 2. DESIGNATION. DATE. DENOMINATIONS. NUMBERS, AND MATURITIES OF BONDS.
Each bond issued pur,,uant lo this Ordinance shall be designated. "CITY OF COLLEGE STATION. TEXAS.
GENERAL OBLIGATION AND REFUNDING BOND. SERIES 1~91". and initially there shall be issued, sold,
and dehvered hereunder fully registered bonds, without mteresl coupons, dated November 15. 1991. in the
respective denommallons and pnncipal amouuts herelnatter stated, payable Io the respective inmal registered
owner Ihereof las designated lu Sec(mn I 1 hereof), or to the registered assignee or assignees of said bonds or
any porllou or port]on,~ Ibereol Iai e~h case. the "Registered Owuer", ~Ownur", or "owner%
The term "Bonds" ,'ts used in this Ordinance shall mean and Jaclude collecllvely the bonds initially issued
and dehvered pursuanl to Ihu. Ordinance and all substitute bonds exclbanged therefor, as weU as all other
',ubslltute bonds and replacement burets issued pursuanl hereto, and the term "Boud" shall mean any of Ibe
Bonds. The Bonds shall be numbered R-I upward, shall be in the denommallou of $5.000 ea~h or any integral
mull~ple thereof, and .,hall malure and be payable ~nally on February 15 in e~h of the years and m the
pnuclpai amoums, respectively as scl forth m the following schedule:
Y EARS AMOUNTS YEARS AMOUNTS
1993 $200.000 2003 $225.000
1994 225.000 2004 225.000
1995 225.000 2005 225.000
1996 225.000 2006 225,000
1997 225.00o 20(')7 250,000
1998 225,000 2(X~8 250,000
1999 225,00(! 2009 250.000
2000 225,000 20 II) 250,000
20(11 225J~00 2ltl I 25(}JR)0
2002 225.0(){) 2012 250,0(10
Section 3. INTEREST. The Bouds scheduled to mature during the yearn, respectively, sel forth below
shall bear in!ere,,! from the dates specified m the FORM OF BOND SCl forth m lin.,, Ordinance to Iheit respective
date.', of maturdy or redemption prior to matunly at the followmg ties per annum:
YEAR OF INTEREST YEAR OF INTEREST
MATURITY RATE MATURITY RATE
1993 7.50~ 2003 6.00q~,
1994 7.50 2004 6.10
1995 7,50 20(15 6.20
1996 7.50 2006 6.30
1997 7.50 2007 6.40
1998 7.50 2008 6.50
1999 7 50 2(109 6.25
20(X) 5.60 20l(!
2001 5.70 2011 5.50
2002 5.80 2012 5.50
Said lntemM ,,hull be payable in Ihe manner ~vlded and on the ~le,, q~ted in the FORM OF BOND set forlh
in this Ordinance.
Seclwn 4. CHARACTERISTfCS OF THE BONDS. Ia) Re~,lstraUon, Trmtsfer, and Exchange;
AuthenUcalloo. The Issuer shall keep or canse Io be kept at the principal corporate trusl office of First City,
Texas - Houston N A., Houston. Texas (the re!ual "Paying Agenl/Regtstrar") Ix~oks or reoords for Ihe regislcauon
of the Iransfer and exchange of the Bond~ (Ibe "Regislrahoo Books"). and the Issuer hereby appoinls the Paying
Ageal/RegisUar as its registrar and Iransfer ageel Io keep such books or record~ and make such reglslrations of
transfers and exchanges under ,,ocli reasonable regulahons as the Issuer and Paying Agen~/Reglslrar may
scnbe: and the Paying Agent/Reglalxar shall make ,,uch regtstration,,, transfers, and exchanges as herein provided.
The Paying Agenl/Reglstrar shall obtam and record m the RegtslmUon Books the address of the registered owner
of each Bond to winch payments with respect to the Bonds shall be {mind. as herein provided: bul ii shall be
Ihe duty of each registered owner to notify the Paying Agenl/Reglstrar tn wntmg of the ,address to winch
payments shall be {mind. and such intereq payments shall not be {mind unless such notice ha.,, bees given. To
the extent possible and under reasonable c~rcumstances, ail Uan~fer,, of Bonds shall be made within three
basters days after request and presenlation thereof. The I,,suer si{Il have the ngin to {{peel the Registralwn
Books dunng regular bus{ess hour~ of the Paying Agant/Regislrar. but otharwt~e the Paying Agenl/Rcgistrar
shall keep the Reglslration Books confidentm] and. unless otherwise rcxluinM by law. shall not permit theu'
mspecuon by any other entity. The Paymg Agenl/Regtstrar's standa~ or customa'y fees and chazges for {along
such registration, transfer, exchange and delivery of a substitute Bond or Bonds Shall be prod as provided m the
FORM OF BOND set forth m this Ordinance. Reglslratmn of assignments, transfers, and exchanges Of Bond8
shall be made m the manner provided and with the efferl slaled m the FORM OF BOND set forth m this
Ordinance. Each substitute Bond shall bear a lc!let and/or nmnber to dlsungmsh ~1 from each other Bond
Excepl as provided in subsection (¢l helow, an anthonzed representative of the Paying Agcnl/ReglsU'ar
shall, hefore the delivery of any such Bond. dale and manually sign Ihe Paying Agcnl/Rcglslrar's Aulhenlleal,on
Cemficate. and no such Bond shall be deemed to be Jssucd or oulstandmg unless such C'emficate is ~o executed.
Thc Paying Agenl/Reglslrar promptly shall cancel all pud Bonds and Bonds surrendered for Iransfer and
exchange. No adchtmnal ordinance,,, orders, or re.let,oas need he passed or adoplcd by the governing body of
the Issuer or any other body or person ~ as to accx~mphsh the foregolng Iran,d'er and exchange of any Bond or
pomon thereof, and the Paying Agent/ Rag,sitar shall provide Jor the pnnuag, cxacution, aid delivc~y of the
subslltote Bonds in the manner prescribed herein, and ..a~d Bonds shall he of type composition pnnled on papar
with hlhographed or steel engraved borders of customary weight '.md sfl'cnglh Pursannl to Vcmon*s Ann. Tax.
C*,v. St. Afl 717k-6. and parhculiu'ly Secln~n 6 thcreol, thc duly of mmsler and exchange of Bonds as aforesaid
,s hereby imposed upon the Paying Agenl/Reglslrar, mid. upon thc' exeCUllOn of s,:ud tertlfieatc, the Iransfen'ed
and exchanged Bond ,,hall bt' valid, mconteslablc, and enforceable in the same manner and w,th the same effect
as the Bonds which re, tally were is,,ued and dehvered pursuan! to th,,, Ordinance. approved by thc Attorney
General. and registered by the ComptroUer of Public Aeccqmts.
lb) Paymem of Bonds and lnlere.;I. The Issuer hereby further appomls the Paying Agenl/Reglstrar lo act
as thc paying agenl for paying the pnnclpal of and interest on tie Bonds. all as provided in this Ordinance. The
Paying Agent/ Registrar shall keep proper records of all payments made by the [,,suer and the Paying
Agent/aec,sitar with respect to the Bonds The Mayor and City Secrelary are hereby anthonzed to execute an
agreement with the Paying Agenl/Rag,slrar substantially n] the form presenled at this Ineet,ng.
lc) In General. Thc Bonds ti) shall he ,ssued m fully registered form. without mlerest coupons, with Ihe
principal of and interest on such Bonds to he payable only Io the registered owners thereof, tn) may he redeemed
prior to their ~cheduled matunues. (,ti) may he transferred and as.signed. (tv) may he exchanged for olher Bonds.
tv) shall have thc chamctenslres. (vt) shall he signed, sealed, executed, and anthentlcated. (vu) shall have the
priue,pal of and inlerest on the Bonds he payable, and (viii) shall be administered and the Paying Agcot/Regrstrar
and the Issuer shall have eerlain duties and responsthdllle, with respecl to the Bonds. all as provided, and in the
manner and to lite eflecl as requu'ed or md~cated, in the FORM OF BOND ',et forth in Ih,s Ordmanee. The
Bonds mulally issued and delivered pursuanl to Ihls Ordinance numhered R-I thmagh R-20 ( collectively, the
"Intent Bonds") shall he dehvered to the Imlbal purchaser and are nol requ~ed to be. and shall not he. authenll-
cared by the Paying Agcnl/Reglslrar. but on each subsUlUle Bond ,:,sued in exchange for the Imual Bonds or luly
Bond or Bonds ts.sued under this Ordinance the Paying Agent/Registrar shall execote the PAYING
A{3ENT/REGISTRAR'S AUTHENTICATION CERTIFICATE. m the form set forth tn the FORM OF BOND.
{d) Subslllule Paying Agenl/Relzlstrar The Issuer eovenanls wal~ thc reglslered owners of Ihe Bonds that
at all times wlule the Bonds are outslandmg the Issuer wdl provide a compelent and legally qualified bank. ~'asl
company, finan~.ml ,nsulutmn. or oilier agency to act as and peri, mil the senqees of Paying Agent/Reglslrar for
the Bonds under this Ordinance. and that the Payulg Agent/Registrar will he one entoy. The [~uer reserves the
right lo. and may. :It lis opuon, change the Paying Agenl/Reglslrar upon not less than 120 days wntlen not, ce to
the Paying Agant/Raglstmr. lo be effective not later than fao days ~,or to thc next pnnc,pal or mteresl payment
dale after such not,ce. In the event that the onuly al any lime acting .as Paying Agcnl/Rag~slrar (or da ~uecessor
by merger, acqmslllon, or other method) should resign or otherwise cease IO acl as sach. the Issuer covenants
Ihal promptly il will appoinl a competent and legally qanhfied Ixank. trusl company, fimanclal instllution, or other
agency to ael .as Paying Agenl/Reglslrar under this Ordinance UPOn any change ,n Ihe Paying Agonl/Ragrslrar.
the previous Paying Agent/Registrar proreplly shall Iransfer and deliver the RaglslxaUon Books for a copy
thereof), along with all other pe~tluent books and records relaRag to the Bonds. Io the new Paying Agent/Ragls-
tear designated and appointed by the Issaer. Upon any change in the Paying Agent/Registrar. the Issuer promptly
will cause a written notice Ihereof to he sent by the new Paying Ageal/Reglslrar to each regtslered owner of the
Bonds. by Umted Slates ma~L firsl-class poslage prepaid, wh,¢h notice also shall g, ve the address of the new
Paying Agent/ Registrar By aceeplmg the position and peril,atone as such. each Paying Agent/Registrar shall
be deemed to have agreed to the provisions of this Ordinance. and a cerllfied copy of tius Ordinance shall be
dehvefed to each Paying Agent/Registrar.
Section S FORM OF BONDS. The form ol the Bonds. including the Ionn ol Paymg Agent/Regtslrar',,
Au{henucnhon Ccrlbqcate, the form of Asstgnmenl. and Ihe form of Reg~swatton Cerhficale of the Comptroller of
Public Accounts of the Slate of Texas Io he attached to the Imlial Bonds. shall he. respecovely, subslanltally a.~
follows, with such appropnole Varlollons. omissions, or tnserltoas as are permitted or required by thts Ordtunnce.
[FORM OF BOND]
[Form of Front Panel of Bond]
NO. R-
United Slates of Atnenca
Slate of Texas
CITY OF COLLEGE STATION. TEXAS.
GENERAL OBLIGATION AND REFUNDING BOND.
SERIES 1991
PRINCIPAL
AMOUNT
INTEREST RATE
MATURITY DATE ISSUE DATE CUSIP NO.
November 15. 1991
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
ON THE MATURITY DATE, ~peclfied above, THE CITY OF COLLEGE STATION, a home role
and municipal coeporal~on located in Brazos County. Texas (the "l~uer"). hereby promise~ Io pay to the
Regtstered Owner. specified above, or mglslcred as.~tgas (hereinafter called the 'regtslered owner") the Pnnelpal
Amount. SF, ccified above, and Io pay mlerest thereon from Ihe Iv~ue Date, specified above, on February 15, 1992,
and ~mmnanally on each August 15 and February 15 thereafter to the Malanty Dale. or the dale of redemptmn
prior Io molunly, al the Interesl Rale per annum, spectfied above: except thai tf this Bond is required to be
anthenttcoled and the dale of its anlhenucauon sa later than the firsl Record Date (hereinafter defined), ~uch
Principal Amount sludl bear mteresl from thc interest payment date next preceding the dale of anlhenucollon.
unica.,, such dale o1 authentication la alter any Record Dale but on or before the next following mleresl paymeut
dale. in wluch care such pnncipal amount shall bear interest from such next following inleresl payment date:
provtded, bowever, thai d' on the dale of anlhenltcallon hereof the intereq on the Bond or Bonds. tf uny. for
which Ibis Bond is hemg exchanged is due but has not been prod, Ihen dus Bond shall bern' interest from the dale
to which such mlereal has been paalm full.
THE PRINCIPAL OF AND INTEREST ON Ilus Bond are payable m lawful money of the Umted Slates
of America. without exchlmge or collection charges. The pnnctpal of this Bond shall be prod to the registered
owner hereof upon pre*,entatlon and surrender of Ihls Bond at maturity or upon the date fixed for its redemphon
pnne to molunty, al the pnneipal corporole Irast office of FIRST CITY. TEXAS - HOUSTON. N.A., Houston.
Texas, or its ,,occessor. which ss the "Paying Agent/Regtstrar" for tMs Bond. The paymem of mteresl on thu,
Bond shah be made by the Paying Agenl/Regtstrm- to Ihe registered owner hereof on each mlerest payment date
by ebeck, doled as of such mtercsl paymenl dale. drawn by the Paying Agenl~eg~slrur on. and payable solely
from, funds of the Issuer requu'ed by the ordinance authorizing the issuance of thts Bond adopled on Decemher
5. 1991 (the "Ordmunce") Io he on deposit with the Paymg AgenllRegrdrur for ~ucll pmpo~ as heremafter pro-
vided: and such check ,,hall be ~nt by the Paymg Agenl/Reglstrar by United Slate~ mad, fh'st-class poshage pre-
prod. on each such mlercsl payment dale. to the regtstered owner hereof, al tls 'address as il appeared on the last
calendar day ot thc month next preceding each such date (the "Record Dale") on Iht books of regislratton kept
by Ibc Paying Agonl/Regr~ar (Ihe "Regtslratmn Books"). In addition, mleresl may be paid by such other
method, acceptable to the Paying Agent/Registrar. requested by. and al Ibc risk and expense of. the reglslered
owner
THIS BOND is one of a ~enes of Bonds authorized an accordunce with Ihe laws of the Stale of Texas m
the ongp~ prnteipa] ,amount of $4.625.000 FOR THE PURPOSE OF PROVIDING $2,7'~0.000 FOR MAKING
PERMANENT PUBLIC IMPROVEMENTS, TO WIT. STREET IMPROVEMENTS, INCLUDING BUT NOT
LIMfI'tiD TO REHABILITATION OF COLLECTORS AND THOROUGHFARES. SIDEWALKS. TRAFFIC
SIGNAL ENHANCEMENT. AND NEW STREET CONSTRUCTION: $750.000 FOR IMPROVING THE
EXISTING PUBLIC PARKS IN THE CITY AND CONSTRUCTION OF ADDITIONAL PARKS IN THE
CITY. AND S1.125.000 FOR RETIRING AND PAYING OUTSTANDING PUBLIC PROPERTY FINANCE
CONTRACTUAL OBLIGATIONS.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH
ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAM~ FORCE AND EFFECT AS
SET FORTH IN THIS SPACE
IN WITNESS WHEREOF. the Issucr has caused tlu~ Bond to be signed wllh the manual or facsunde
signalure of the Mayor of Ibe Issuer and counters]gued wah Ihe manual or f:lcs[]oJle signature of thc City
Secrelary Gl the Issuer, and ha.., caused the official ~eal of the Issuer IO be duly nnpres,,ed, or placed m fa~.,,imlle.
on th,, Bond.
CITY OF COLLEGE STATION
(facslm,le signatureI
City Secrelary
(facsimile ~lgnature)
Mayor
[Form of Back Panel of Bond]
THE BONDS are tssued pursuant Io the Ordinance wheivunder the Is,,uer covenants lo levy a continuing
du'ect annual ad valorem lax on taxable property within the Issuer. uot Io exceed $2. fi0 per a.s..,essed $100
valuailcm, as provtded in Arlicle XI. Section 5 of the Texas ConstltUlion. for each year while any part of the
Bonds m'e considered oulslandlng under the pfl}wsJons of thc Ordinance. in sufficlanl amount to pay mlerest on
each Bond as it becomes due. Io provide a sinking fund Ior the payment of the principal el the Bonds when due.
and to pay the expan*gs of assessing ,'md collecting such t,ax. all as more specifically provided in Ibe Ordinance.
Reference is hereby made to the Ordinance for provisions with respecl Itt Iht: custody and apphcanon of the
Issuer's funds, remedies in the event of a defaull hereunder or thereunder, and the other ]aghts of the registered
owner.
THIS BOND IS TRANSFERABLE OR EXCHANGEABLE cady upon pre,enlaIion and sm'reader at the
principal eoqxtmte office of the Paying Agent/Registrar. ff this Bond is being tr~msferred, ii shall be duly
endorsed for transler or accompamed by an as.~lgnmenl duly execuled by the registered owner, or his authorized
reF-,resentatlve, subJeCt Io the term,, and condillons of the Ordinance.
ANY ACCRUED iNTEREST DUE al matmaly or ulxm the redemption of this Bond poor Io maturity as
provided hereto shall be prod lo Ibe registered oweer upon presenlation and surrender of this Bond for
redemption and paymenl al the principal corporate Imst office of the Paying Agent/Registrar. The Issuer cove-
nants with the registered owner of this Bond thal on or before each pnnc]pal paymenl dale. interest paymenl
date. and accrued interest payment dale for this Bond it will make avad'able to the Paying Agenl/ReglsUar. lmm
the "lnteresl and SJnkmg Fund" crealed by the Ordinance. the mnoums reqmred to provide for the payment, m
lmmedJately avmlable funds, of all pnnc]pal of and interesl on the Bonds. when due.
IF THE DATE for the payment of the pnncipal of or interest on this Bond sl~l be a Saturday, a Sunday.
a legal holiday, or a day on wluch banlong mstllutlons in the cfly where the pnncipal corporate [rUSl office ol the
Paying Agenl/Reglslrar is located are authorized by law or execulive order lo close, or the United Slates Poslal
Service ts not open for business, then the date for such payment shall be the next sueceeahng day which is not
such a Salurdsy. Sunduy. legal holiday, or day on which banking mstllutloas are anlhortzed to c]o~e, or the
United Stale.,, Po,;t,ql Servl~.e is not open for business: and paymenl on ~u~.h date shall have the s,'une force and
effect as if made on Ibc original dale payment was due.
THE CITY RESERVES THE RIGHT Io redeem Ibc Bonds pnor lo theft ~.-beduled maturities, m whole
or m purl, m mlegral mulliples of $5,000. on Februa~ 15. 2001. or on ,'my dale thereafter, at a redempuou price
of par plus accrued mleresl on the pnnclpal mnounts called Ice redemption Io the dme fixed for redemption. Al
leasl 30 days prior to the dale fixed Ior any redemption of Bonds or IX~aons Ibereof prior to maturity a wnuen
nouce of such redemption shall be published once an a fiannoal jourmd or pubheataon pubhshed in the Cily of
New York. New York. or m the Clly of Aasun, Tex,~ Such nouce sludl also be given by the Is.,,uer to the
Paying Agem/Reg~strar. and the Paying Agaul/Regi,,trar shall seed a copy of such nouc¢ al le,'u,I 45 days prior
Io the date fixed for redempllon by Umtad States m. al. fast class, post~e prepard, addressed lo the registered
owuer of each Boed to he redeemed ~n whole or in parl at the addre,,s shown on the Reglslml~on Books and to
anajor securities depositories, antloual bond raung agencies, mad bond reformation servic~s, provided, however.
that the an,lure to *:ad. mini. or receive such notrce, or may delecl thereto or m the sending or anadmg thereoL
shall not aflcct the validity or effectaveness of the proceedings for the redemplaon of auy Bond. and it is
spacdically provided that Ibe publication ol such horace as requu~d above sh,dl be the ouly notice aclually
requu'ed in connection with or as a prerequisite to ihe redemption of any Bond When Bonds or portions
thereof have been called Ior rcdempllon, and due provision has been made lo redeem the same. the pnuclpal
amounts so redeemed shall be payable solely from the funds prowded Ior redempllou, and mteresl which would
otherwise accrue on the amount,, called for redemption shall leflmante oil the dale fixed for redemption
ALL BONDS OF THIS SERIES are assanble solely a,s lully reglslered Bonds. wlthoul anteresl coupons, in
the denommatlou of any integral multiple of $5.IXI0. As provided in Ihe Ordinance. this Bond. or any
unredeemed porUon hereof, may. al the request of Ibe reglslered owner or the a.ss~gaee tn' assignees hereol, be
assigned, transferred, and exchanged for a like aggregate pnncipal lunount of lully reglslered Bonds. without
inlereal coupons, payable to the appropriate registered owner, assignee, tlr assignees, as Ihc case may be. having
the same denomination or denominations ifa any integral mulllple ol $'i.fff}O as requested in writing by the
appropriate registered owner, assignee, or a.ss~gaee,,, ah the ease may be. upon surrender of this Bond to the
Paying Ageul/Reglstrar for cancellatlou, all in accordance wflh Ihe form and prtx:cdarcs .,,el forth in lite
Ordumnee Among other requirements for such assigamenl and mmsfer, this Bond must be presented and
surrendered to the Paying Agent/Registnu'. togalber with proper msffuments ol assigamenl, in form and with
guamutee of signatures ~l~sfactory to the Paying Agent/Registrar. evadencmg asslgnmenl of ISis Bond or any
poe[lOll or pOfllOUS hureof in any anlegral malllple ot $5.{)00 to the assignee or assignees in whose anme or
names Ilus Bond or any such porhon or pamons bereof a~ ha' am lO be teglslered. The fofln ol Assigamenl
printed or endorsed on this Bond may be executed by the registered owner to evadence the a.s,~agament hereof.
but such method As nol exclusive, and other mstrumanlS ol a.ss~gamem Sallsfaclory to the Paying Agent/Reglslxar
may be used lo evadenee Ibe asslgnmenl of IMs Bond or any portion or porlloas hereof from time to tame by the
reglslered owamr. Thc parson requesting such Iransfer and exchmage shall pay the Paying Agant/Reg~strar's
reasonable standard or customary fees ,'md charges for Inmsferrmg mad exchanging any Bond or portion thereof.
In any cucumslance. :uty ~xes or governmental charge,, rcqmred Itl be paid with respect thereto shah be paid by
the pe~on requuslmg such asslgmneat, tra~tsfer, or exchange, as a condition preeedenl lo the exercise of such
pnvdege The Ioregomg notwithslanding, ut the case of the exchange of a portion of a Bond which has been
t~leemed prior lo matunly, as provided herein, and in Ibc case ol die exchange of mt assigned and ffansferred
Bond or Bonds or may portiou or po{laons thereof, such fees and charges of the Paying Asahi/Registrar will be
paid by Ibc Issuer. The Paying Asahi/Registrar shall nol be ~quued to make any such transfer or exchange O)
dunug the period commencing with the close of business on any Record Date and ceding with the opemng of
business on the nexl following p~nclpal or Interesl paymeul date or Ill) with respect lo any Broad or any polllon
thereol called for rodemptlon prior to maturity, wathm 45 days prior lo als redempllon date.
IN THE EVENT any Paying Agcn~/Reglslxar for Ihc Bonds is changed by lite Issuer. resigns, or otherwise
ceases to act as such. the Issuer hag coveuanlcd in the Ordinance that it pr(nnplly will appoml a competent and
6
legally qanhfied subaUlule therefne, and cause wnllen nollce thereof Io he mmled to thc reglslcred owners of the
Bonds.
BY BECOMING the registered owner of this Bond. the registered owner thereby acknowledges all of the
terms and provlslous ol the Ordinance. agrees ~o be bound by such terms and provisions, acknowledges that the
Ordinance is duly recorded and avtulable for mspeeuon in the official mmmes and records ol the govermllg body
of the Issuer. and agrees thai the terms and provr, lons of Ih~s Bond aild the Ordinance conslflule a conlract
between each registe~,l owner hereof and the Issuer.
IT IS HEREBY CERTIFIED. RECITED. AND COVENANTED THAT this Bond has been duly and
vabdly authorized, issued, and dehvered: all ac~s. condtttons, mid thing*, requa'ed or proper to he performed.
exist, and he done precedent Io or tn the aulhonzation, issuance, and delivery of thr; Bond have been performed.
existed, and been done in accordam, e with law: and ad valorem lases sufficient to po)vide for thc payment of the
interest on mid pnnc,pal of this Bond. as such interest comes due. and as sm.h prmclpa] matures, have been
levied and ordered to he levied agmnst all la.xable property in the Issuer. mid have been pledged for such
paymanl, within Ihe hlmt pre.'~.nhed by law.
[FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE[*
* Pnnter - Do not pnnl on Initial Bonds
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby cerrdied Ihat Ibis Bond has been m~ued under the provr, lons o1' {he Ordinance described in Iht
text of this Bond and thai this Bond has been issued in exchange for n bond. bonds, or a portion of a bond or
bonds of a sen~ which originally wa,, approved by thc Attorney General of the State of Texas and registered by
the CompUoller of Public Accounls of the State of Texas.
Dated
FIRST CITY. TEXAS - HOUSTON N.A.,
HOUSTON. TEXAS
Paying Agenl/Reg~strm'
By.
Authtmzed Slgnalure
[FORM OF ASSIGNMENT]
ASSIGNMENT
FOR VALUE RECEIVED, Ihe undersigned registered owuer ol this bond or duly authorized represenmuve
or attorney Ihe. reof, hereby assigns this bond to
and hereby m'cvocably constitutes and appoints
attorney to Imnsfer Ihe reglslratlon of thJs bond on Ihe Bond Regr, lratton Books with full power of Subettlul]on
Iff the premises.
Dated:
Signature Gunranteed:
NOTICE: The signature of the Reglslered
Owner musl he guaranleed by a memher of
the New York Sttx:k Exchange or a
commercial bank or trus[ company.
Rebqslcred Owner
NOTICE. Th:s ~gnalure must cotrcspond
with the name of the Regr,te~x~l Owner
appearing on the face of th~s bond In every
particular way without alteration or
enlargemenl or any change whatsoever.
The foUow]ng abbrevialtoas, when used in the assignment above or oil the face of thc within Bond, shall
he construed as though Ibey were written GUI in full accor&ng lo applicable laws or regulations
TEN COM - as tenants in common
TEN ENT - as lenanls by the enurelies
JT TEN - as joint lenanls with nghl of survl¥or~hlp
mid not ,'ts tenants in common
UNIF GIFT MIN ACT - Custodian
(Cust) (Minor)
under Uniform Gifts to Mmon, Acl
(Slate)
Addmon..d abbrev~allons may also be ascd though not m the hsl above.
[FORM OF REGISTRATION CER I'IPICATE OF
THE COMPTROLLER OF PUBLIC ACCOUNTS]*
*To be printed on or allached lo the [manl Bonds
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby cemfy that this Bond has been examined, cemfied as to validity, and approved by the Attontey
General of the State of Texa~, and thai Ibis Bond has been reglsten~l by the Comptroller of Public Accounts of
the Slale of Texas.
WEtness my signature and seal this
(COMPTROLLER'S SEAL)
Comptroller of Public Accounts of the State of Texas
[END OF FORM]
Section 6. TAX LEVY A special lntercsl and Stoking Fund (tho "lnteresl and Sinking Fund") ~,,, hercby
crcated solely for the benefit of the Bonds. and the Interest attd Sinlang Fund shall he established and mamlmned
by Ihe Issuer at an official depository bank of the Issuer The Interest and Stoking Fund shall he kepi separale
and apart from all other funds and accoums of the Issuer. mid shall be used only for paying the mteresl on and
pnaclpal of the Bonds. All ad valorem lazes levied and collecled for and on account of the Bonds shah he
deposited, as collected, to Ihe credit of the Inlerest mid Sinking Fund During each year whde any of the Bonds
or Inlerest thereon are outqandmg and unpaid, the Council shall compute and ascerlmn a rate ,'md amount Gl nd
valorem tax which will be aufficlenl to nusc and pr~xiuce Ihe money reqa]red lo ~y thg mte~sl on I~ Bonds as
such mlc~st tom~ d~. and to pmwde and remain a sin~ng fund ~anlc Io ~y the ~ncz~ of i~ B~ds
as such p~c~ matures (bat sever I~ th~ 2~ of the ongm~ pnnct~ ~oant of ~d BUn& ~ a stoking
fund e~h ye~): ~d ~d t~ ~l ~ ~ on ~e Imest a~v~ mx mils of t~ Issue. wdh full ~ow~ce
~mg m~e for tt~ dehnquenc~es ~d the ct~l of I~ collection. Smd ~e ~ t~nt of M vMomm t~ ~s
hereby lewd. ~d is hereby o~ m ~ lev~. agmn~l ~l ~le pn~fly m the Issuer I~ e~h y~ wh~le
any of ~e Bond~ or rate,st thegn ~ out~tdmg ~d un~d: and ~d t;~ sh~l ~ ~d ~d collcclcd
e~h such ye~ ~d dc~xlcd m the c~t of the ~o~md ~lc~st and Stoking FuM. S~d ~ v~o~m t~es
sufficient to pmvrde f~ Ibe ~ymem of thc mlc~sl on and p~c.~ of the Bonds, ~ such mlc~st comes due
~rd s~h pnucl~ mat~s, ~ he,by pledg~ for such payment, w~th~n Ihe {umt p~n~ by ~w
Seclton 7. DISPOSI'Ir'ION OF BOND PROCEEDS The proceeds of the Bonds ,,hall be placed into the
Inlcrcat and Stoking Fund and the Con.`lruction Fund of the Issuer an follows.
fa) Inleresl a.d Sinking Fund ,$a~ amouut equal to the ,accrued mlerest on die Bonds from the date of the
Bonds to the date of delivery lo the Intoal Purchaser .,hall be delx~llcd m the Interest amd Sinking Fund.
(b) Construction Fund. The proceeds of lite Bonds rema~mng after lite above descrd~l deposit into the
Intereal and Sinking Fund shall be placed in the Conslruehon Fund (hereby created with a depoatory bank of the
Issuer) lo be used by the Issuer for the purposes for which the Bonds are issued, including the paymanl of the
principal of the R~funded Contruclan/Obhgailons. and. to the extent uol otherwise provided Iht. to pay expanses
annmg m connection w~th the issuance hi the Bonds.
Section 8. REMEDIES OF OWNERS. In addison to all rights and remedies of any owner of the Bonds
provzded by Ibc laws of the Stale ut Texa~. the Issuer and the Couuefl covenanl and agree thai in the event the
Issuer defaulls m the payment of the pnnctpal of or intercnt on any of the Bonds when due, falls to make the
payments rcquu~d by this Ordinance to be made tutu file Interest aftd Sinking Find. or delanlts m the observa]lce
or performance of any of the covenants, conditions, or obligations scl forth in this Ordinance. the owner of any
of the Bonds shall be entitled to a writ of mandamas issued by a court of proper .lun~lction compelling and
requiring the Council and other ofricers of the I~suer to observe and perform any covenanl, obhgahon, or
condlllon prescribed in this Ordinance. No delay or omission by any owner lo exercise any right or power
accruing to such owner upou defaalt shall impair any such right or power, or ah,all he constnJed lo be a w~uvcr
of any .`ueh dcfanll or acqa]eseance Iherem, and every such right or power may be exerel.,.ed from time to time
and as oflcu as may be deemed expedienl. The specific remedies menUoued in this Ordinance shall be available
to any owner of any of the Bonds and shall be cumu{auve of all other existing remedres
Section 9. DEFEASANCE OF BONDS (al Any Bond and lite ~nlcresl thereon shall be deemed to be
pard. reltred, and nt~ longer oulnlandmg (a "Defeated Bond") wllhm the meaning ol this Ordinance, except to the
extent provided in subsectum id) of thin Secl~on 9, when paymenl of the pnncipal of such Bond. plus inlcresl
thereon to the due date (whether such due date be by reason of maturity, upon redempuon, or otberw~scl e~ther
0) shall have been made or caused to be made m accordance with the lcrms theronl (including the giving of any
required notice of rcdcmptton) or (ii) shall have been provided for on or before such duc date by u'revocably
depositing with or making available to the Paying Ageai/Reglatrar Ior such payment (Al lawful money of the
United States ut America sufficient to make such payinenl or (B) Government Obhgations (hereinafter defined)
which mature as to pnnclpal and mlerest m such amounls and al such tines as will insure the ava]labdity,
without reinvestment, of sulficienl money to provide for such Intyment, and when proper arrangemenLs have been
made by the Issuer with the Paying Agenl/Registrar for the paymeai of it., services unld all Defeated Bonds shall
have become due and payable. At such lime as a Boud shah be deemed to be a Defcased Bond hereunder, as
aforesaid, such Bond and the interesl thereon shall no longer be secured by. payable from. or entllled to the
ben~filn of. the ad valorem taxes herein levied and pledged as provJded m thLn Ordinance, and such princtpaJ and
interest nhall be payable ~dely from such money or Govemmenl Obhgallona
9
lb) Any money so deposited with the Paying Agent/RegJsWar may al the written alu'notion of the Issuer
also be mvesled m Government Obhffalums. malunng m Ihe amounts mid times u.,, hereinbefore set forth, and all
income from aach Government Obhgalians received by the Paying Ageat/Regv~lrur which is not requlvnd for the
payment of thc Bonds and interest thereon, with respect Io which such money hat been so deposited, shall be
turned over lo the Issuer, or deposited as directed m writing by the I.~suer
lc) The It:nn "Govemmenl Obhgal~ons". as used tn this Setllon. shall mean threct obhgattons of the
United States of America, including obhgahons th-' pnnclpal of and mleresl on which ,'un uncondmonally
guaranlced by the United State.s of America. which may be United Slates Treasury obhgauons such as its State
and Local Govennnent Series, wMch may be m book-entry lotto.
(d) Until all De[cased Bonds shall have become duc and payable, thc Paying Agenl/Reg~strar shall
peffonn thc services of Paying Agent/Reglslrar for such Defensed Bonds lite sman as ff they had nol been
defensed, mM the Issuer shall make proper arrangemenls to provide and pay for such ~ervlces as required by this
Ordinance.
Sectmn 10 DAMAGED. MUTILATED. LOST, STOLEN. OR DESTROYED BONDS (a) Replacement
Bonds. In the cvenl any oul.,~lthng Bond ts damaged, mutilated, lost, slolen, or destroyed, the Paying
Agent/Registrar slm]l cause to be printed, executed, and delivered, a new bond of the ~ne principal amount.
maturity, and inlemst rate, ~ tls damaged, mutilated, lost. stolen, or desuoyed Bond, m replacement for such
Bond in Ihe manner beremafler provided.
lb) Apphcalwn for Replacement Bonds Applgaln~n for replacement of damaged, muldated. I~nt. slolen.
or destroyed Bonds shall be made by the registered owner thereof lo the Paying Agenl/Reglslras. In every case
of loss. theft, or th.~lmctton of a Bond. the registered owner applying for a replacemem bond shall furnish to the
I,,,suer and to the Paying Agent/Regtslrar such security or mdemmty ~ may be rcqun'ed by Ihcm lo save each of
them harmless from any Ios~ or damage with respect thereto. Also. m every case of Io~s. theft, or deqtucta~n of
a Bond, the ragtslered owner slm/[ furnish Io the Issuer and lo the Paying Agenl/Reglsltas evidence lo then'
sattslhchon of Ihe logs, theft, or desffucllon of such Bond, 0z the case may be. In every case of damage or
maldatlon ota Bond. the registered owner shall surrender lo the Paying Agen~Reg~suar for cancellation the
Bond so damaged or mutilated.
lc) No Delault Occun'ed. NotwJth%landmg the foregoing provisions of this Section. m the event any such
Bond shall have matured, and no default has occurred winch ts then conunumg tn the paymenl of the pnnctpal
oL redempuon premmm, if any. or interest on thc I~md. the Issuer may antbonze thc payment of the same
(w~thout surrender thereof excepl in the case of a damaged or muttlaled Band) ]nsteed of issuing a replacement
Bond. provided secumy or mdemmly is furmshed as above provided tn this Section
(d) Charge for l~sumg Replacement Bondg Prior lo thc issuam.-e of any replacement bond, the Paying
Agenl/Reglswar shall charge thc reglslered owner of such Bond with all legal, prmang, and other expenses tn
connection therewith. Every replacement bond issued pursuant to the provisions of this Section by xartue of the
fact that any Btnal v, Io~t, slolen, or desm.~yed ',hall consulule a coalraclual obligation of the I~,.,,uer whether or
not thc lost, stolen, or destroyed Bond shall be found at any tune. or be entorceablc by anyone, and shall be
enl~fled to all the bencfils of this Onhnance equally and proporltoantely wxth any atld all Othur Bonds duly issued
under flits Ordinance.
(e) Authority for Issuing Replactnnent Bond,, In accordaace with Secllon 6 of Vernon's Ann. Tex Crv.
St. AfL 717k-6, this Sectton 10 of this Ordinance shall cousttlule authonty for the ~,,uance of any such
replacement bond wtthota uecessity of further acuon by the governing body of the Issuer or any other body or
person, and thc duty of the repla~ment of such bonds ~s hereby authorized and imposed ulx'm the Paying Ageut/
Regtalrar. and the Paying Agent/Registrar shall aathentwate and dehver such Bonds tn the form and maancr and
with the effect, as prov~dnd tn Section 4(a) of tMs Ordinance for Bonds issued m exchange for other Bonds.
10
Seclwn 11. CUSTODY. APPROVAL, AND REGISTRATION OF BONDS: BOND COUNSEL'S
OPINION, AND CUSIP NUMBERS The Mayor or the Issuer ts hereby authorized lo have control of the Inmal
Bonds and all necessary records and pruecethngs pertaining Io the huual Bonds pandmg their dehvery and thou'
u]veSllgation, examinauon, and approval by thc Atlomey General of the State of Texas. and their rcg]stratwn by
the Comptroller of Pubhc Accounts of the Slae of Texas. Upou reg]swauon of lite Inmal Bonds ~td
Complroller of Public Accounts (or a d~pu~y designated m wntmg to act lot smd CompS'oiler) shaU mananlly
sign the CompU~ller's Reg,smauon Certificate ailuehed Io the lint]al Bonds. and the el. al of smd Compu'oller
shall be ~mpressed. or placed m fac~tmde, on such Ccnfll~.ate. The approving legal opinion of thc McO]nm~.
Lochndge & ICllgore, Bond Couw,'cl. and the assigned CUSIP nmnhers may. at the opt]on of the I,,~uer. he
printed on the Bonds issued and delivered under this Or&nm]ce, but neither shall have any legal effect, and shall
be ,,'olcly for the convenience aid inlormatton ol tile registered owuer,, of the Bonds.
Section 12. COVENANTS OF THE ISSUER Ia) General Covenants. The Issuer covenants and
repmsents thai:
(0 The Issuer ts a duly incorporated Home Rule Cuy, having more than 500¢) inhabiters, operaung
and ex,sung under thc laws of the S~e of Texas. ~d ~ duly authon~ under the ~ws of ~e State of
T~xas to ¢~te ~d ~g~ the B~ds; all ~l~on on ~ts ~m for the c~t~on ~d ~ of the Bonds has
~en duly ~d eff~uvely t~en: ~d t~ Bonds m the hands ol the ow~ tbemof
and enf~eable obhgaaons ol the Issuer m t~co~w w~lh the~ te~s; and
(it) The Bonds shall be ratably seem'ed m such manner Ihal no one Bond shall have preference over
other Bonds.
lb) Sptn.qfic Covenants. The Issuer covenanls and repre,,ents thai, while the Bonds are outslaodmg and
unpaid, il wlU'
¢0 Levy an ad valorem lax thai will he sulfictent Io provide funds lo pay the currenl mleresl on the
Bonds and lo provide the n~e,,sary smkmg land. all as de~.nhed m this Orthnance; and
tn) Keep proper books of record and accounl tn which full. tree, and corre~.l crimes wall be mndc of
all dealmg~, activities, and wansactions relahng to the Funds created pursuant to thxs Ordinance. and all
books, d~cumeuts, and vouchers relalm$ thereto ~all al all reasonable times be made avmlable for respec-
t[on upon request fi'om any owner.
lc) Tax Covenants. The I~suer covenants Io refrain from any aeuon which would adversely alTecl, or Io
lake any ael~on Io assure, the ueaimenl, of the Bond,. as obhgallons de,.cnbed tn sceuon 103 ol the Internal
Revenue Code of 1986, as amended Cthe ~Code"), the mteresl on which is not includable m the "gross income"
of the holder for ptalx)ses of federal income hqxatmn. [n furtherance thereof, the Issuer covenants as follows.
Ia) to take any action to a~sure Ilia[ no tnore Ihan II)% ol the proceeds of the Bonds (less a,nounts
deposited to a reserve fund. if any) are used for any "private business use". as defined m section 141(b)(6)
of the Code or. if more than 10% of the proceeds are ~ used. thai amounts, whether or nol received by
the Issuer. with respect Io such private business u~. do uoL under the terms of tlus Orthnance or any
underlying ,irrangemanl, dlreclly or indirectly, secure or provide for the payment of more than 10% of the
debl service on thc Bonds. m contravention of so:uon 141(b)(2) ot the Code;
lb) to take any aetaon Io assure that in Ihe evenl that Ibe "private business use" de~cnbod in
sub~ctwn la) hereof exceeds $~ of Ihe proceed.,, of the Bonds (le~ ,amounts deposited into a rexerve
fund. if any) then the amouui in exce~a of Se~ ts used for a "private business use" which is "related" and
not "disproportionate~, within the meaning of ~-'ctton 141(b)(3) of the Code, to Ihe governmental use;
II
(c) to take any actton IO assure fi!al no alflOUal which ig greater fi!an the lesser ol $5.OOO.OOO. or
o! file proceeds of the Bonds (less amounts deposited into a re, rye fund. if any) Is dUeclly or tnda~.'n.'lly
used to fin::u]ee loans to pcrson,L olber than slate or local goveromelltal omi%. in contraveuuon of secuofl
141(c) of file Code:
(d) to refrain lrom taking any actwn which would ofiletwl~e result m tho Bon& being Irealed as
"private acuvlty bonds" within file meaning of secuon [41(a) of the Code:
(e) to reft;un from takmg any acllon that would result tn the Bonds being "federally guaranteed"
file meaning of seouon 149(b) of Ute Code:
(f) to refrain from using uny portion of file proceeds of Ihe Bonds. directly or indirectly, to acqmre
or to replace tunds whch were u~:l. ahrecdy or indirectly, lo acqmre investment pwpcrly (as defined m
sectwn 148¢b)(2) of the Code) which produces a malerndly higher yield over Ih,: term of the Bon&, other
thun mvestmunt property acquu~d with --
¢ I) proceeds of file Bonds invested for a reason!title temporary period of Ilo'ce ye;un or le,s. or
in the ca~e pt the Refunded Obhganons 30 days. until such proceeds ate needed for the purpose for
which the bondn are t~sued.
(2) mnount,, ~nvesled tn a bona fide debt service fund. wllhm the meaning of secuon I 103-
13(b)(12) pi Ibe Trea.nmy Regulauons. and
(3) amounts delx~.,uled tn any reasonably requu'cd reserve or replacemcnl fund to thc cxtenl
such amounts do not exceed lO% of the proceedn ol thc Bonds,
(8) Io otherwise restrict the u~e of the proceeds of file Bond* or amounls Ireated as proceeds of thc
Bond.,. as may be neeco.nary. ~ ~ Ute Bonds do not ofilcrw~se conWavcne the requu~ments of
148 of the Code (relating to arbitrage) and. to thc extem apphcablc, section 149(d} of file Code (relating to
advance refund,ngn),
(h) to pay to file Urn!ed Stales of Aancnca al Jessi once durJng each five-ye~' penod (begmnmg on
the dale of dehvery of the Bonds) an amounl that is at least equal to 90~ of the "Excess Earmngs". wdhm
the meamng of secuon 148(0 of file Code and to pay to the Umtal Stales of America. not laler fi!an 60
days after the Bonds have been pad in full. 100% of file amOUnl Iben requu~d to be paid as a result of
Exeea, Eammgs under section 148/0 of file Code; and
(0 to maintain such records as wdl enable the Issuer lo lulfill its responslhd]uen under tilts seetwn
and ,,:eclaon 148 of file Code and to return such records for al leant nix years following file Final payment
pnaclpal and interest on Ihc Bonds
II ts the undeL'standJiIg of file I,,.,,uer that the covenants contmned bere]n are mlended to a~sure complmnce w]fil
the Code and any regulattous or rulings promulgated by the U S. Department of the Treasury pm~uunt Iberelo
In file eveut filat resulalloas or rulings are hereafter promulgated which modJfy or expand provisions of the
Code. a5 appbcable to the Bond.,,. file Issuer w]ll not be required to comply wlfil any covenant conlmned hereto
to the extent that ,,uch modification or expannion, m the opinion of natloually-recosnized bond counsel, wdl not
adversely affect the exemption from federal income taxation of mteresl tm Ibe Bonds under section 103 of the
Code. In the event that regulauons or mlmgs are hereafter promulgated which nnpose additional reqmremenls
whtch a~e apphcable lo file Bonds. file i~uer agrees to comply with thc additional requuemeals lo the extent
ncces~,ary, m the opinion of flallonally-recogmzed bo]Id counsel, to preserve the exempIlon from federal mcoule
taxauon of interest on file Bonds under section 103 of Ihe Code.
12
Section 13 DESIGNATION AS QUALIFIED TAX-EXEMPT BONDS. The Issuer hereby designates the
Bonds as "qualified la.x-~xcmpt bonds" as defined in Secllon 265(b)¢31 of the C~xlc In furtherance of such
designation, the Issuer mpresenL~, covenanls, and warranls Ihal (al dunng Ihe calendar year 1991. Ihe Issuer
(including any suberdmate entities) has not designated nor wig fl designate any tax-exempt obllgallon, which,
when aggregated with thc Bonds. wdl r~salt m more than $10.0OO.000 of "quahfied tax-exempt bonds" being
i~sued: (b) the Issuer masoanbly aniwlpates thai thc atnonut of las-cxempl obhgal]ons ]~ued during the calendar
year 1991 by the Issuer (or any subordm,~¢ enl]ucs) will not exceed $10.¢~0.000: and ¢c) the Issuer will take
such action or refrmn from such m.'tlon as uecessm7, and az more pml]cularly set forth in Secuon 12 of this
Ordinance, in order that the Bonds will not be considered "private activity bends" w~thln thc mc'ming ol SeCllOU
142 of Ibe CkMe
Section 14 SALE OF BONDS The Bonds arc hereby sold and shah be delivered to Prudeutia] Secunues
Incorlx~rated (the "initial purchasers") at a puce of par pins mlemsl thereon to date of delivery, pursuant lo the
terms and provr;ions of the Official Nollce of Side and other sale documenls. Il is hereby officcally found.
detennmed, and declared that the terms of this sale ~ the mo~t advantageous reu~.~nably obtmnable The Bonds
shall imllally be registered in the name ol Prudential Securmcs Incorporated. The officen, of the Is,,uer .'ire
hereby anthonzed and tbrected to execute and dehver such ~.ertlfi~.dtes. insln~cuonx, or other iastrulnenls as art:
required or necessary to accomphsh the purposes of thr~ Ordinance.
Section 15. APPROVAL OF OFFICIAL STATEMENT. The Issuer hereby approves the form and
contem of the Otl'icnd Statemenl re]aline to the Bonds. and any addenda, supplement, or amendmonl Iherelo and
approves the dlslnbution of such Officnd Statement in the reoffenng of the Bonds by the Initial Pureha,~rs m
final form. with such change~ therein or ndthlloas Ihereto as the officer executing Ihe same may deem advisable.
such detenmnauon Io be conclusively evidenced by his executmn thereof I! is further officudly found deler-
mined and declared that thc statemems and represenlatmn,~ continued in smd Officud Statement ar~ true and
con'ect in all material reslx~Cts to the best knowledge and bellel ol the Council. Tile Ionn and content of and the
dlslnbution and use of the Preliminary Official Statemant dated November 20. 1991. prior to the date bereol is
hereby ratdied and ~.xmf'mned The Council finds and delermmes thiR the Pmhminary Official Slatemenl ~s
"deemed final" as that tonn is defined m 17 C F.R. Section 240 15c2-12.
Section 16. ORDINANCE A CONTRACT: AMENDMENTS. This Ordinance shall constitute a contract
with the owners, from tune to tune. of the Bonds. binding on the lasuer and ,ts successors and a~,~lgns, and shall
ool be amended or repealed by Ibe Issuer as long as ,'my Bond remmn,, ouls~u~.Jing except as permitted in this
Section The Issuer may. wflhoul Ihe con,ut of or notice Io any owner~, amend, change, or modUy tlu,~
Ordinance as may be reqmred Il) by the ixxwlslons hereof. (u) in counection with the issuance of any additional
bonds, em) for the purpose ol cunng any a~nblgmty, inconsistency, or formal defect or omission berem, or (iv) in
connectlou wltll any other change wluch is not to the prejudice of the owners. The Issuer may. with the: wrllten
consent ol lite ownen; of a mRIonly in aggregate prmclpul amount of Bonds then outslandmg affected Ibereby.
and the insurer of any Bonds atnend, change, mothfy, or rescind any provisions of this Ordinance: provided that
without the consent of all of the owners affected, no such atnendmenl, change, moddication, or re~l,~slon shah
(ii extend the lime or times of paymeut ol the pnnclpul ol and interest on the Bonds. reduce the principal
atnounl thereol lo Ihe rate of mteresl thereon, or in any olher way modify the term~ of payment of the pnnclpul
of or mtereat ou edd~tzonal bond:, on a parlly w~th the hen of the Bonds. (ii) give any preference ol ,'my Bond
over any other Bond. (uO extend any waiver of default Iii sub~quent defaull.,, or (iv) reduce the aggregate
pnnclpal amount of Bond,, required for consent to any ~uch amendmenl, change, modification, or reselsslon
Whenever the Issuer shall desuc to make any atnendmcnt or addlllon to or rescission of thl~ Ordinance requinng
consent of the owners, the Issuer shall cause notice of the mnondmenl, addmon, or rescission to be given as
desenbed above for a no{ice ol redempuon and give written noln.'e to any insurer and Standard & Poor's
Corporation. Whenever al any time wllhm one year alter the date of the giving ol such notice, the Issuer shall
receive an mstmmem or in~;tmlnenls m writing executed by any insurer and the owners of a majority m
aggregate pnnclpal amount of the Bonda then oublandmg alfected by any ,,uch amendment, addition, or
rescission reqmnng consent, which instrument or instrumenla shall reter to the pruposed amendmenl, addition, or
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rescission described m auch notice and shall spec~fic'a//y consent to and approve the adopuon thereof ul
subslanladly the form of the copy thercof refen'ed Io in such nouce, Ibereupon, but not otherwise. Ibe ]asuer may
adopt such mnendment, addition, or rescission m sul'~tantadly such form, except a~ herein provided. No owner
or msu~r may Ihereafler objecl to Ibe adoplion of such amendment, addition, or rescission, or LO any of the
pmvuaons thereof, and such omendmenl, addllion, or rescission shall be fully effec'live for all parpoae~.
Section 17, NOTICE TO PAYING AGENT AND REGISTERED OWNERS The Refunded Contraclual
Obhgauons a~ hereby called for rndemplion on Dec~mber 23. 1991. and the Paying Agenl/Registrar is hereby
du'ectee to make appropriate artangemenLs so that the principal of and accrued mlerest on such Refunded
Conlractual Obhgal~ons may be redeemed at smd bank on the ~lempllon dale. Unless notice i~ wmvee by the
owners thereof, a copy oi the Notice ol Prior Redemption. subslantmily in the form atta~.hee herelo a.,, Exhlbll A,
shall be delivered to the paying agent bank for the Refunded Contraclual Obhgallons ,'md a copy of such Notice
of Prior Redemption shall be madee to the reglslered owner thereof, or olberw~se glveu as provided in Ihe
appropriate order, resolullon, or ordinance authorizing tile called Refunded Contraclu~ Obhgat~ons.
Seclion 18. MA-I-I'IaRS RELATED TO REFUNDING. In order thai the Issuer shall ~llsfy in a llmely
manner all of as obhgatlons under this Ordinance. Ibe Mayor and all other appropnale offiecrs and agenls of the
Issuer are beroby authoo_zed and dm:cled LO lake all other aclmn., that are re,'c~onably uece.,,~ry LO provide for Ibe
refunding ol the Refunded Contractual Obhgatlons. including without limitation, executing and dehvenng on
behalf of lite Issuer all cemficales, cousents, receipts, rcque*,ts, notices, and other documents ,'ts may be
reasonably necessary LO ~aHsly Ihe Issuer's obhgalmns under Ihis Ordinance and to direct the transler and
apphcallon of funds of the Issuer conslstenl with the prowslon~ of thl~ Ordinance
Sec. lion 19. FUNDS APPROPRIATED. The Council hereby appropriates from lawfully avmlable money
sufficlanl sums to pay the mteresl on the Relandee Contractual Obligations on the date of redempllon and Io pay
mlcreSl to accrue on thc Bonds on Ihe ru-sl mleresl payment dale spcclfiee m this Ordinance
Sectmn 20 MISCELLANEOUS. (a) Incorporation of Preamble. The preamble Io Ihls Ordmauce is
incorporated by reference in this Ord,uaflce.
(b) Titles NOt Restrictive The lilies assignee Io the vanons sections of Ih]s Ordinance are for convenience
only and shall not be considered restrictive of the subJeCt mailer ol any ~ection or of any pan of flus Ordinance.
(c) Inconslslent Provisions All ordinance, orders, and resolullons, or parts thereof, which are in confllcl
or mconslslent with any provis~an of this Ordinance ate be~by repealee and declared to be mapphcable, and the
provisions of this Ordmance shall be and mm,am controlling as to the matlera presenhed herein
(d) Sevcmb~hly. If any word, phra~, clause, paragraph. ~eutence. parl. portion, or prowsaon of Ihls
Ordinance or thc apphcatron thereof Lo any person or cu'cum,,tances shall be held lo be invalid, the remainder of
this Orthnance shall nevenbele.~*, be va/id and the Council I~ereby dechwcs that this Ordanance would have been
cnactnd wllhont such invalid word, phrase, clause, p,'u'agraph, senlance, parl, portion, or provisions.
(e) Governing Law This Ordulance shall be construed and enforced m accordance with thc laws of the
Slate of Texas.
fi) Effective Date. This Ordinance shall take effect and be m full force and effect from and after the date
of its passage, and it is so ordained.
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PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS this 5th day of December, 1991, at
which meeting a quorum was present.
Mayor
ATTEST:
Conn~ Hooks
City Secretary
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EXHIBIT A
NOTICE OF REDEMPTION
CITY OF COLLEGE STATION, TEXAS,
PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATIONS. SERIES 1991
DATED SEPTEMBER I. IO91
NOTICE IS HEREBY GIVEN Ihat Ihe City of College Slauon (the "Issuer"). acting through Its City
Councd. has cai[ed /or optu)nai redemption the above described Obhgal~ons on December 23. 1991 at a
rcdcmpllon once cgual Io file onnclpa] amount thc~of, plus unpaid acemed mlerc~t Io the dale fixed for
redemption, without premium Such redemption shidl ~ke pl,~e at the coronrme u'usl offices of Plrst C~ty.
Texas - Houston. N A.. Houslon. Texas. on or before 10:00 am on ~nch dale
THIS NOTICE IS GIVEN pursuant to thc OlX~ml of redclnpllou reserved by Ibc Issuer in the Ordinance
authorizing the Obhgatlons and shall be sent by cerhfied mall ptr,,lmarkcd at least ten day,, onor to December 23.
1991 and 'addressed Io Past C~ly. Texas - Houston. N.A.. Houslou. Texas. us the Rt~g~sffred Owner of the
Obhgatmns.
WHEN DUE PROVISION has been made to mieem these Obligations. the Obhgalmns sludl be payable
solely from the funds provu]ed lor redemption, and interesl that would otherwise accrue shall lermlnale on
December 23, 1991.
WITNESS MY HAND this Decc~nber 5, 1991.
CITY OF COLLEGE STATION. TEXAS
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