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ORD CC 1980-13 - Certificate of Obligation - $300000gid, 80-4 3 ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $300,000 CERTIFICATES OF OBLIGATION WHEREAS, the City Council of the City of Huntsville, Texas, by ordinance adopted April 8, 1980, found that it was necessary and desirable for said City to purchase land for police station and municipal court building purposes for said City, and that certificates of obligation be issued by the City for all or any part of the cost of same; and WHEREAS, said Council thereafter gave due and proper notice of its intention to issue such certificates of obli- gation; and WHEREAS, there has not been filed with the City Secretary a petition protesting the issuance of such certificates and re- questing an election on same; and WHEREAS, it is affirmatively found that the City Council is authorized to proceed with the issuance and sale of said certificates in accordance with the terms of this ordinance; Now, Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE: Section 1. That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Section 2. That for the purpose of evidencing the indebtedness of said City for all or any part of the cost of purchasing land for police station and municipal court building purposes for said City, there shall be issued the negotiable, serial certificates of obligation of said City in the principal amount of $300,000, to be known and designated as "CITY OF HUNTSVILLE, TEXAS, POLICE AND MUNICIPAL COURT BUILDING CERTIFICATES OF OBLIGATION, SERIES 1980," in strict conformity with the Constitution and laws of the State of Texas, particularly Article 2368a.1, V.T.C.S., as amended. Section 3. That said certificates shall be dated June 1, 1980, shall be numbered consecutively from 1 through 60, shall be in the denomination of $5,000 each, and shall mature serially on June 1, without option of prior redemption, in each of the years, and in the amounts respectively, all as set forth in the following schedule: $30,000 1981/1990 Section 4. That the certificates shall bear interest at the rate of 9% per annum, interest payable on the dates indicated in the FORM OF CERTIFICATE set forth in this ordinance. Section 5. That the certificates shall be payable, and shall have the characteristics, and shall be signed and executed (and the certificates shall be sealed), all as provided and in the manner indicated in the FORM OF CERTIFICATE set forth in this ordinance. Section 6. That the form of certificates, including the Form of Interest Coupons and the Comptroller's Registration Certificate, shall be, respectively, substantially as follows: FORM OF CERTIFICATE: No. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF WALKER CITY OF HUNTSVILLE, TEXAS POLICE AND MUNICIPAL COURT BUILDING CERTIFICATE OF OBLIGATION SERIES 1980 THE CITY OF HUNTSVILLE, in the County of Walker, State of Texas, FOR VALUE RECEIVED, acknowledges itself indebted to and promises to pay the bearer on the 1st day of June, 19_, the sum of FIVE THOUSAND DOLLARS and to pay interest thereon from the date hereof at the rate of 9% per annum, interest payable December 1, 1980, and semiannually thereafter on June 1 and December 1 of each year while this certificate is outstanding. Both principal of and interest on this certificate shall be payable in any coin or currency of the United States of America which, on the respective dates of payment of such principal and interest, is legal tender for the payment of debts due the United States of America, at the First National Bank, Huntsville, Texas, which shall be the paying agent for this series of certificates. The principal hereof shall be payable only upon presentation and surrender of this certificate, and interest hereon falling due on and prior to the maturity of this certificate shall be payable only upon presentation and surrender of the interest coupons attached as such coupons severally become due. THIS CERTIFICATE IS ONE OF A SERIES OF 60 NEGOTIABLE, SERIAL CERTIFICATES OF OBLIGATION of like tenor and effect, ex- cept as to number and maturity, numbered consecutively from 1 to 60, both inclusive, in the denomination of $5,000 each, aggregating $300,000, and, together with the other certificates of said issue, is issued for the purpose of evidencing the indebtedness of said City for paying all or any part of the cost of purchasing land for police and municipal court building purposes for said City, under and in strict conformity with the Constitution and laws of the State of Texas, including particularly Article 2368a.1, V.T.C.S. and pursuant to an ordinance ( "Ordinance ") passed by the City Council of said City, which Ordinance is of record in the official minutes of said City Council. THE DATE OF THIS CERTIFICATE, in conformity with the Ordi- nance above mentioned, is JUNE 1, 1980. IT IS HEREBY certified, recited and covenanted that this certificate has been duly and validly authorized, issued and delivered; that all acts, conditions and things required or proper to be performed, exist and be done precedent to or in the issuance and delivery of this certificate, have been performed, existed and been done in accordance with law; that annual ad valorem taxes sufficent to provide for the payment of the interest on and principal of this certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the City and have been pledged irrevocably for such payment within -2- the limits prescribed by law; that this certificate shall be a debt of the City within the meaning of Article XI, Sections 5 and 7 of the Constitution of Texas; and that, when delivered, this certificate shall be deemed and construed (i) to be a "Security" within the meaning of Chapter 8, Investment Securities, Uniform Commercial Code (Chapter 785, Acts of the 60th Legislature, Regular Session, 1967), and (ii) to be a general obligation of the City within the meaning of Chapter 784, Acts of the 61st Legislature of Texas, Regular Session, 1969. IN WITNESS WHEREOF, the City Council of the City of Huntsville, Texas, has caused the official seal of said City to be impressed, or placed in facsimile hereon, this certificate and the interest coupons appertaining hereto to be signed with the facsimile signature or subscription of the Mayor and countersigned with the facsimile signature or subscription of the City Secretary. xxxxxxxxxx COUNTERSIGNED: xxxxxxxxxx City Secretary City of Huntsville, Texas (SEAL) No. Mayor City of Huntsville, Texas FORM OF INTEREST COUPONS: ON 1, 19 , the City of Huntsville, in the County of Walker, in the State of Texas, hereby promises to pay to bearer, without exchange or collection charges, the amount shown on this interest coupon, in any coin or currency which, on such date is legal tender for the payment of debts due the United States of America, upon presentation and surrender of this interest coupon, at the First National Bank, Huntsville, Texas, being interest due that date on the certificate, bearing the number hereinafter designated, of that issue of City of Huntsville, Texas, Police and Municipal Court Building Certificates of Obligation, Series 1980, dated June 1, 1980. Certificate No. xxxxxxxxxx Mayor xxxxxxxxxx City Secretary FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE§ REGISTER NO. I HEREBY CERTIFY that this certificate has been examined, certified as to validity, and approved by the Attorney General of the State of Texas and that this certificate has been registered by the Comptroller of Public Accounts of the State of Texas. -3- WITNESS my signature and seal this (SEAL) xxxxxxxxxx Comptroller of Public Accounts of the State of Texas Section 7. That there is hereby created a special fund to be designated "City of Huntsville, Texas, Police and Municipal Court Building Certificates of Obligation, Series 1980, Interest and Sinking Fund," and all taxes collected for and on account of said certificates shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of said certificates are outstanding and unpaid, the City Council of the City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on said certificates as such interest comes due and to provide and maintain a sinking fund of not less than 2% of the principal amount of said certificates or not less than the amount required to pay the principal out of said tax, whichever is greater; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax de- linquencies and the cost of tax collection. Said rate and amount of ad valorem tax are hereby levied, and are hereby ordered to be levied, against all taxable property in the City for each year while any of said certificates are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said certificates, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment within the limits prescribed by law. Section 8. That the City Council certifies that based upon all facts and estimates now known or reasonably expected to be in existence on the date the certificates are delivered and paid for, the City Council reasonably expects that the proceeds of the certificates will not be used in a manner that would cause the certificates or any portion of the certificates to be an "arbitrage certificate" under Section 103(c)(2) of the Internal Revenue Code of 1954, as amended, and the regulations prescribed thereunder. Furthermore, all officers, employees and agents of the City are authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the City Council as of the date the certificates are delivered and paid for. In particular, all or any officers of the City are authorized to certify for the City Council the facts and circumstances and reasonable expectations of the City Council on the date the certificates are delivered and paid for regarding the amount and use of the proceeds of the certificates. Moreover, the City Council covenants that it shall make such use of the proceeds of the certificates, regulate investments of proceeds of the certificates and take such other and further actions as may be required so that the certificates shall not be "arbitrage certificates" under Section 103(c)(2) of the Internal Revenue Code of 1954, as amended, and the regulations prescribed from time to time thereunder. Section 9. That the Mayor is hereby authorized to have control of the certificates and all necessary records and pro- ceedings pertaining to the certificates pending their delivery and their investigation, examination and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. -4- Section 10. That the sale of said certificates to the First National Bank, Huntsville, Texas, at a price equal to the principal amount thereof, plus accrued interest thereon from the date thereof to the date of actual delivery, sub- ject to the approving opinions, as to the legality of such certificates, of the Attorney General of the State of Texas and Vinson & Elkins, market attorneys, is hereby authorized, approved, ratified and confirmed. When said certificates have been approved by the Attorney General of Texas and registered by the Comptroller of Public Accounts of Texas, they shall be delivered to the purchasers thereof upon receipt of the full purchase price. The Mayor and City Secretary are authorized and directed to do any and all things necessary and /or convenient to carry out the terms of this ordinance. Section 11. That this ordinance shall take effect from and after its adoption, AND IT IS SO ORDAINED. PASSED AND APPROVED this 29th day of April, 1980. J1..�111 Secretary CITY OF HUNTSVILLE, TEXAS M yor CITY OF HUNTSVILLE, TEXAS City Attorney CITY OF HUNTSVILLE, TEXAS (SEAL) -5-