ORD 1991-10 - Authority Issuance Of Waterworks & Sanitary Sewer System Revenue Bonds 06-11-1991ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF HUNTSVILLE,
TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE
BONDS, SERIES 1991
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE:
ARTICLE I
FINDINGS AND DETERMINATIONS
Section 1: Findings and Determinations. It is hereby
officially found and determined that:
(a) The City is authorized by Article 1111 et seq,
Vernon's Texas Civil Statutes, as amended, to issue
bonds payable from the net revenues of its
waterworks and sanitary sewer system, and is
authorized by Article 1112 to issue such bonds
without an election to provide money for
acquisitions, extensions, construction, improvement
or repair of such system.
(b) The City Council, by ordinance adopted April 30,
1991, authorized the giving of notice under Article
2368a, Vernon's Texas Civil Statutes, as amended,
and Chapter 252, Texas Local Government Code, as
amended, of its intention to issue the bonds
authorized by this Ordinance, and such notice was
published as required by law and the City Charter.
(c) The City has not received any petition for a
referendum concerning the issuance of such bonds.
ARTICLE II
DEFINITIONS AND INTERPRET4TIONS
Section 2.1: Definitions. In this Ordinance, the following
terms shall have the following meanings, unless the context clearly
indicates otherwise:
"Additional Bonds" shall mean the additional parity revenue
bonds permitted to be issued by the City under Article VI of this
Ordinance.
"Bonds" or "Series 1991 Bonds" shall mean the City of
Huntsville, Texas, Waterworks and Sanitary Sewer System Revenue
Bonds, Series 1991, authorized by this Ordinance.
"Business Day" shall mean any day which is not a Saturday,
Sunday, or a day on which the Registrar is authorized by law or
executive order to close.
"City" shall mean the City of Huntsville, Texas, and where
appropriate, the City Council thereof and any successor to the City
as owner of the System.
"Code" shall mean the Internal Revenue Code of 1986, as
amended.
"Comptroller" shall mean the Comptroller of Public Accounts
of the State of Texas.
"Interest Payment Date ", when used in connection with any
Bond, shall mean January 1, 1992, and each July 1 and January 1
thereafter until maturity or earlier redemption.
"Net Revenues" shall mean the gross revenues of the System
less the reasonable expense of operation and maintenance of the
System, including all salaries, labor, materials, repairs and
extensions necessary to render efficient service, provided,
however, that only such repairs and extensions, as in the judgment
of the City Council, reasonably and fairly exercised, are necessary
to keep the plant or utility in operation and render adequate
service to the City and the inhabitants thereof, or such as might
be necessary to meet some physical accident or condition which
would otherwise impair the Outstanding Bonds, the Bonds and the
Additional Bonds shall be deducted in determining Net Revenues.
"Ordinance" shall mean this bond ordinance and all amendments
hereof and supplements hereto.
"Outstanding Bonds" shall mean the City's Waterworks and
Sanitary Sewer System Revenue Bonds, Series 1983.
"Owner" or "Registered Owner ", when used with respect to any
Bond shall mean the person or entity in whose name such Bond is
registered in the Register. Any reference to a particular
percentage or proportion of the Owners shall mean the Owners at a
particular time of the specified percentage or proportion in
aggregate principal amount of all Bonds then Outstanding under this
Ordinance, exclusive of Bonds held by the City. When used with
respect to any of the Outstanding Bonds, the term "Owner" shall
mean the bearer of such bond.
"Paying Agent" shall mean the Registrar.
"Record Date" shall mean, for any Interest Payment Date, the
15th day of the month next preceding each Interest Payment Date.
"Register" shall mean the books of registration kept by the
Registrar in which are maintained the names and addresses of, and
the principal amounts of the Bonds registered to, each Owner.
"Registrar" shall mean First National Bank, Huntsville, Texas,
and its successors in that capacity.
"Reserve Fund" shall mean the reserve fund for the Outstanding
Bonds, the Bonds and Additional Bonds, which fund is established
and confirmed in the ordinances authorizing the Outstanding Bonds
and this Ordinance.
"System" shall mean the waterworks and sanitary sewer system
of the City, including all present and future extensions,
additions, replacements and improvements thereto.
Section 2.2: Interpretations. All terms defined herein and
all pronouns used in this Ordinance shall be deemed to apply
equally to singular and plural and to all genders. The titles and
headings of the articles and sections of this Ordinance have been
inserted for convenience of reference only and are not to be
considered a part hereof and shall not in any way modify or
restrict any of the terms or provisions hereof. This Ordinance and
all the terms and provisions hereof shall be liberally construed
to effectuate the purposes set forth herein and to sustain the
validity of the Bonds and the validity of the lien on and pledge
of the Net Revenues to secure the payment of the Bonds, the
Outstanding Bonds, and the Additional Bonds.
ARTICLE III
TERMS OF THE BONDS
Section 3.1: Authorization and Authorized Amount. The Bonds
shall be issued in fully registered form, without coupons, in the
total authorized aggregate amount of $1,700,000 for the purpose of
constructing improvements and extensions to the City's waterworks
and sanitary sewer system, , under and in strict conformity with the
Constitution and laws of the State of Texas, particularly
Articles 1111 through 1118, Vernon's Texas Civil Statutes, as
amended.
Section 3.2: Designation. Date. and Interest Payment Dates.
The Bonds shall be designated as "City of Huntsville, Texas,
Waterworks and Sanitary Sewer System Revenue Bonds, Series 1991,"
and shall be dated July 1, 1991. The Bonds shall bear interest at
the rates set out in Section 3.3 of this Ordinance from the later
of July 1, 1991, or the most recent Interest Payment Date to which
interest has been paid or duly provided for, calculated on the
basis of a 360 day year of twelve 30 day months, payable on
January 1, 1992, and semiannually thereafter on July 1 and
January 1 of each year until maturity or earlier redemption.
Section 3.3: Initial Bonds; Numbers and Denomination. The
Bonds shall be initially issued bearing the n»mbers, in the
principal amounts, and the bearing interest at the rates set forth
in the following schedule, and may be transferred and exchanged as
set out in this Ordinance. The Bonds shall mature, subject to
prior redemption in accordance with this Ordinance, on July 1 in
each of the years and in the amounts set out in such schedule.
Bonds delivered on transfer of or in exchange for other Bonds shall
be numbered in order of their authentication by the Registrar,
shall be in the denomination of $5,000 or integral multiples
thereof, and shall mature on the same date and bear interest at the
same rate as the Bond or Bonds in lieu of which they are delivered.
Bond Principal Year of Interest
Number Amount Maturity Rate
R- 1 $ 50,000 1992 %
R- 2 50,000 1993 %
R- 3 60,000 1994 %
R- 4 60,000 1995 %
R- 5 70,000 1996 %
R- 6 70,000 1997 %
R- 7 80,000 1998 %
R- 8 80,000 1999 %
R- 9 80,000 2000 %
R -10 90,000 2001 %
R -11 100,000 2002 %
R -12 100,000 2003 %
R -13 380,000 2004 %
R -14 430,000 2005 %
Section 3.4: Execution of Bonds; Seal. The Bonds shall be
signed on behalf of the City by the Mayor and countersigned by the
City Secretary, by their manual, lithographed, or facsimile
signatures, and the official seal of the City shall be impressed
or placed in facsimile thereon. Such facsimile signatures on the
Bonds shall have the same effect as if each of the Bonds had been
signed manually and in person by each of said officers, and such
facsimile seal on the Bonds shall have the same effect as if the
official seal of the City had been manually impressed upon each of
the Bonds. If any officer of the City whose manual or facsimile
signature shall appear on the Bonds shall cease to be such officer
before the authentication of such Bonds or before the delivery of
such Bonds, such manual or facsimile signature shall nevertheless
be valid and sufficient for all purposes as if such officer had
remained in such office.
Section 3.5.: Approval By Attorney General; Reaistration by
Comptroller. The Bonds to be initially issued shall be delivered
to the Attorney General of Texas for examination and approval and
shall be registered by the Comptroller of Public Accounts. The
manually executed registration certificate of the Comptroller
substantially in the form provided in Article IV of this Ordinance
shall be affixed or attached to the Bonds to be initially issued.
Section 3.6: Authentication. Except for the Bonds to be
initially issued, which need not be authenticated, only such Bonds
as shall bear thereon a certificate of authentication substantially
in the form provided in Article IV of this Ordinance, manually
executed by an authorized representative of the Registrar, shall
be entitled to the benefits of this Ordinance or shall be valid or
obligatory for any purpose. Such duly executed certificate of
authentication shall be conclusive evidence that the Bond so
authenticated was delivered by the Registrar hereunder.
Section 3.7. Payment of Principal and Interest. The
Registrar is hereby appointed as the registrar and paying agent for
the Bonds. The principal of the Bonds shall be payable, without
exchange or collection changes, in any coin or currency of the
United States of America which, on the date of payment, is legal
tender for the payment of debts due the United States of America,
upon their presentation and surrender as they respectively become
due and payable at the principal corporate trust office of the
Registrar. The interest on each Bond shall be payable by check
payable on the Interest Payment Date, mailed by the Registrar on
or before each Interest Payment Date to the Owner of record as of
the Record Date, to the address of such Owner as shown on the
Register, or by such other method acceptable to the Registrar,
requested by and at the risk and expense of the Owner.
If the date for the payment of principal or interest on any
Bond is not a Business Day, then the date for such payment shall
be the next succeeding Business Day, and payment on such date shall
have the same force and effect as if made on the original date such
payment was due.
Section 3.8. Successor Registrars. The City covenants that
at all times while any Bonds are outstanding it will provide a
commercial bank or trust company organized under the laws of the
State of Texas or other entity duly qualified and legally
authorized to act as Registrar for the Bonds. The City reserves
the right to change the Registrar for the Bonds on not less than
60 days written notice to the Registrar, so long as any such notice
is effective not less than 60 days prior to the next succeeding
principal or interest payment date on the Bonds. Promptly upon the
appointment of any successor Registrar, the previous Registrar
shall deliver the Register or a copy thereof to the new Registrar,
and the new Registrar shall notify each Owner, by United States
mail, first class postage prepaid, of such change and of the
address of the new Registrar. Each Registrar hereunder, by acting
in that capacity, shall be deemed to have agreed to the provisions
of this Section.
Section 3.9. Special Record Date. If interest on any Bond
is not paid on any Interest Payment Date and continues unpaid for
thirty (30) days thereafter, the Registrar shall establish a new
record date for the payment of such interest, to be known as a
Special Record Date. The Registrar shall establish a Special
Record Date when funds to make such interest payment are received
from or on behalf of the City. Such Special Record Date shall be
fifteen (15) days prior to the date fixed for payment of such past
due interest, and notice of the date of payment and the Special
Record Date shall be sent by United States mail, first class,
postage prepaid, not later than five (5) days prior to the Special
Record Date, to each Owner of record of an affected Bond as of the
close of business on the day prior to the mailing of such notice.
Section 3.10. Ownership; Unclaimed Principal. and Interest.
Subject to the further provisions of this Section, the City, the
Registrar and any other person may treat the person in whose name
any Bond is registered as the absolute Owner of such Bond for the
purpose of making and receiving payment of the principal of or
interest on such Bond, and for all other purposes, whether or not
such Bond is overdue, and neither the City nor the Registrar shall
be bound by any notice or knowledge to the contrary. All payments
made to the person deemed to be the Owner of any Bond in accordance
with this Section 3.10 shall be valid and effectual and shall
discharge the liability of the City and the Registrar upon such
Bond to the extent of the sums paid.
Amounts held by the Registrar which represent principal of
and interest on the Bonds remaining unclaimed by the Owner after
the expiration of three years from the date such amounts have
become due and payable shall be reported and disposed of by the
Registrar in accordance with the applicable provisions of Texas
law including, to the extent applicable, Title 6 of the Texas
Property Code, as amended.
Section 3,11. Registration. Transfer. and Exchange. So long
as any Bonds remain outstanding, the Registrar shall keep the
Register at its principal corporate trust office and, subject to
such reasonable regulations as it may prescribe, the Registrar
shall provide for the registration and transfer of Bonds in
accordance with the terms of this Ordinance.
Each Bond shall be transferable only upon the presentation
and surrender thereof at the principal corporate trust office of
the Registrar, duly endorsed for transfer, or accompanied by an
assignment duly executed by the registered Owner or his authorized
representative in form satisfactory to the Registrar. Upon due
presentation of any Bond in proper form for transfer, the Registrar
shall authenticate and deliver in exchange therefor, within 72
hours after such presentation, a new Bond or Bonds, registered in
the name of the transferee or transferees, in authorized
denominations and of the same maturity and aggregate principal
amount and bearing interest at the same rate as the Bond or Bonds
so presented.
All Bonds shall be exchangeable upon presentation and
surrender thereof at the principal corporate trust office of the
Registrar for a Bond or Bonds of the same maturity and interest
rate and in any authorized denomination, in an aggregate amount
equal to the unpaid principal amount of the Bond or Bonds presented
for exchange. The Registrar shall be and is hereby authorized to
authenticate and deliver exchange Bonds in accordance with the
provisions of this Section 3.11. Each Bond delivered in accordance
with this Section 3.11 shall be entitled to the benefits and
security of this Ordinance to the same extent as the Bond or Bonds
in lieu of which such Bond is delivered.
Neither the City nor the Registrar shall be required to
transfer or exchange any Bond during the period beginning fifteen
(15) calendar days prior to the mailing of any notice of redemption
and ending on the date of such mailing.
The City or the Registrar may require the Owner of any Bond
to pay a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with the transfer or
exchange of such Bond. Any fee or charge of the Registrar for such
transfer or exchange shall be paid by the City.
Section 3.12. Cancellation of Bonds. All Bonds paid or
redeemed in accordance with this Ordinance, and all Bonds in lieu
of which exchange Bonds or replacement Bonds are authenticated and
delivered in accordance herewith, shall be cancelled and destroyed
upon the making of proper records regarding such payment or
redemption. The Registrar shall furnish the City with appropriate
certificates of destruction of such Bonds.
Section 3.13. Mutilated. Lost. or Stolen Bonds. Upon the
presentation and surrender to the Registrar of a mutilated Bond,
the Registrar shall authenticate and deliver in exchange therefor
a replacement Bond of like maturity, interest rate and principal
amount, bearing a number not contemporaneously outstanding. The
City or the Registrar may require the Owner of such Bond to pay a
sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith and any other expenses
connected therewith, including the fees and expenses of the
Registrar.
If any Bond is lost, apparently destroyed, or wrongfully
taken, the City, pursuant to the applicable laws of the State of
Texas and in the absence of notice or knowledge that such Bond has
been acquired by a bona fide purchaser, shall execute and the
Registrar shall authenticate and deliver a replacement Bond of like
maturity, interest rate and principal amount, bearing a number not
contemporaneously outstanding, provided that the Owner thereof
shall have:
(1) furnished to the City and the Registrar satisfactory
evidence of the ownership of and the circumstances
of the loss, destruction or theft of such Bond;
(2) furnished such security or indemnity as may be
required by the Registrar and the City to save them
harmless;
(3) paid all expenses• and charges in connection
therewith, including, but not limited to, printing
costs, legal fees, fees of the Registrar and any tax
or other governmental charge that may be imposed;
and
(4) met any other reasonable requirements of the City
and the Registrar.
If, after the delivery of such replacement Bond, a bona fide
purchaser of the original Bond in lieu of which such replacement
Bond was issued presents for payment such original Bond, the City
and the Registrar shall be entitled to recover such replacement
Bond from the person to whom it was delivered or any person taking
therefrom, except a bona fide purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the
extent of any loss, damage, cost or expense incurred by the City
or the Registrar in connection therewith.
If any such mutilated, lost, apparently destroyed or
wrongfully taken Bond has become or is about to become due and
payable, the City in its discretion may, instead of issuing a
replacement Bond, authorize the Registrar to pay such Bond.
Each replacement Bond delivered in accordance with this
Section 3.13 shall be entitled to the benefits and security of this
Ordinance to the same extent as the Bond or Bonds in lieu of which
such replacement Bond is delivered.
Section 3.14: Redemption. The City reserves the right, at
its option, to redeem prior to maturity the Bonds maturing on and
after July 1, 2004, in whole or from time to time in part, on
July 1, 2003, or any Interest Payment Date thereafter, at par plus
accrued interest on the amounts called for redemption to the date
fixed for redemption. If less than all of the Bonds of a
particular maturity are to be redeemed, the Registrar shall
determine by lot the Bonds or portions thereof to be redeemed.
Principal amounts may be redeemed only in integral multiples
of $5,000. If a Bond subject to redemption is in a denomination
larger than $5,000, a portion of such Bond may be redeemed, but
only in integral multiples of $5,000. Upon surrender of any Bond
for redemption in part, the Registrar, in accordance with
Section 3.11 hereof, shall authenticate and deliver in exchange
therefor a Bond or Bonds of like maturity and interest rate in an
aggregate principal amount equal to the unredeemed portion of the
Bond so surrendered.
Notice of any redemption identifying the Bonds to be redeemed
in whole or in part shall be given by the Registrar at least thirty
days prior to the date fixed for redemption by sending written
notice by first class mail, postage prepaid, to the Owner of each
Bond to be redeemed in whole or in part at the address shown on the
Register. Such notices shall state the redemption date, the
redemption price, the place at which Bonds are to be surrendered
for payment and, if less than all Bonds outstanding are to be
redeemed, the numbers of the Bonds or portions thereof to be
redeemed. Any notice given as provided in this Section 3.14 shall
be conclusively presumed to have been duly given, whether or not
the Owner receives such notice. By the date fixed for redemption,
due provision shall be made with the Registrar for payment of the
redemption price of the Bonds or portions thereof to be redeemed,
plus accrued interest to the date fixed for redemption. When Bonds
have been called for redemption in whole or in part and due
provision has been made to redeem the same as herein provided, the
Bonds or portions thereof so redeemed shall no longer be regarded
as outstanding except for the purpose of receiving payment solely
from the funds so provided for redemption, and the rights of the
Owners to collect interest which would otherwise accrue after the
redemption date on any Bond or portion thereof called for
redemption shall terminate on the date fixed for redemption.
ARTICLE IV
FORM OF BONDS AND CERTIFICATES
Section 4.1: Forms. The form of the Bonds, including the
form of the Registrar's authentication certificate, the form of
assignment, and the form of the Comptroller's Registration
Certificate for the Bonds to be initially issued, shall be
substantially as follows, with such additions, deletions and
variations, including any legend or statement regarding bond
insurance, as provided by the insurer, as may be necessary or
desirable and not prohibited by this Ordinance:
FORM OF BOND
United States of America
State of Texas
NUMBER
R-
AMOUNT
REGISTERED REGISTERED
CITY OF HUNTSVILLE, TEXAS
WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BOND
SERIES 1991
INTEREST RATE: MATURITY DATE: ISSUE DATE: CUSIP:
July 1, 1991
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Huntsville, Texas, a municipal corporation duly
incorporated under the laws of the State of Texas (herein the
"City ") for value received, promises to pay, but solely from
certain Net Revenues as hereinafter provided, to the registered
owner identified above or registered assigns, on the Maturity Date
specified above, upon presentation and surrender of this Bond at
the principal corporate trust office of First National Bank,
Huntsville, Texas (the "Registrar "), the principal amount
identified above, in any coin or currency of the United States of
America which on the date of payment of such principal is legal
tender for the payment of debts due the United States of America,
and to pay, solely from such Net Revenues, interest thereon at the
rate shown above, calculated on the basis of a 360 day year of
twelve 30 day months, from the later of July 1, 1991, or the most
recent interest payment date to which interest has been paid or
duly provided for. Interest on this Bond is payable by check on
January 1, 1992, and each July 1 and January 1 thereafter until
maturity or earlier redemption, mailed to the registered owner of
record as of the 15th day of the month next preceding each interest
payment date, or by such other method acceptable to the Registrar,
requested by and at the risk and expense of the Owner.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE
THE SAME FORCE AND EFFECT AS IF SET FORTH AT THIS PLACE.
IN WITNESS WHEREOF, the City has caused its corporate seal to
be impressed, printed, or lithographed hereon and has caused this
Bond to be executed by the manual or facsimile signatures of the
Mayor and City Secretary.
(AUTHENTICATION
CERTIFICATE)
(SEAL) CITY OF HUNTSVILLE, TEXAS
xxxxxxxxx
Mayor
COUNTERSIGNED:
xxxxxxxxx
City Secretary
(Back Panel of Bond)
THIS BOND IS ONE OF A DULY AUTHORIZED SERIES OF BONDS
aggregating $1,700,000, issued for the purposes of improving and
extending the City's waterworks and sanitary sewer system, under
and in strict conformity with the Constitution and laws of the
State of Texas, particularly Articles 1111 to 1118, both inclusive,
Vernon's Texas Civil Statutes, as amended, and pursuant to an
ordinance adopted by the City Council of the City on June 11, 1991
(the "Ordinance ").
THE CITY RESERVES THE RIGHT to redeem Bonds maturing on and
after July 1, 2004, in whole or from time to time in part, in
integral multiples of $5,000, on July 1, 2003, or any interest
payment date thereafter at par plus accrued interest on the
principal amounts called for redemption to the date fixed for
redemption. Reference is made to the Ordinance for complete
details concerning the manner of redeeming the Bonds.
THIS BOND is transferable only upon presentation and surrender
at the principal corporate trust office of the Registrar, duly
endorsed for transfer or accompanied by an assignment duly executed
by the registered owner or his authorized representative, subject
to the terms and conditions of the Ordinance.
THE BONDS are exchangeable at the principal corporate trust
office of the Registrar for Bonds in the principal amount of $5,000
or any integral multiple thereof, subject to the terms and
conditions of the Ordinance.
THIS BOND AND THE SERIES OF WHICH IT IS A PART are special
obligations of the City that are payable from and, together with
the City's Waterworks and Sanitary Sewer System Revenue Bonds,
Series 1983 (the "Outstanding Bonds "), are equally and ratably
secured by a first lien on the "Net Revenues" collected and
received by the City from the operation and ownership of the City's
waterworks and sewer system, as defined and provided in the
Ordinance, which Net Revenues are required to be set aside and
pledged to the payment of the Outstanding Bonds, the Bonds, and all
additional bonds issued on a parity therewith, in the Interest and
Sinking Fund and the Reserve Fund maintained for the payment of all
such Bonds, all as more fully described and provided for in the
Ordinance. This Bond and the series of which it is a part,
together with the interest thereon, are payable solely from such
Net Revenues and do not constitute an indebtedness or general
obligation of the City. The owner hereof shall never have the
right to demand payment of this obligation out of any funds raised
or to be raised by taxation.
THE CITY HAS RESERVED THE RIGHT to issue additional parity
revenue bonds, subject to the restrictions contained in the
Ordinance, which may be equally and ratably payable from, and
secured by a first lien on and pledge of, the aforesaid Net
Revenues in the same manner and to the same extent as this Bond and
the series of which it is a part.
IT IS HEREBY DECLARED AND REPRESENTED that this Bond has been
duly and validly 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 Bond have been
performed, existed, and been done in accordance with law; that the
Bonds do not exceed any statutory limitation; and that provision
has been made for the payment of the principal of and interest on
this Bond and all of the Bonds by the creation of the aforesaid
lien on and pledge of the Net Revenues.
FORM OF REGISTRATION CERTIFICATE
OF COMPTROLLER OF PUBLIC ACCOUNTS
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Bond has been examined, certified
as to validity, and approved by the Attorney General of the State
of Texas, and that this Bond has been registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS MY SIGNATURE AND SEAL this
[SEAL]
xxxxxxxxxx
Comptroller of Public Accounts
of the State of Texas
FORM OF AUTHENTICATION CERTIFICATE
AUTHENTICATION CERTIFICATE
It is hereby certified that this bond
has been delivered pursuant to the Bond
Ordinance described in the text of this
Bond.
First National Bank
Huntsville, Texas
By
Authorized Signature
Date of Authentication
FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns, and
transfers unto
(Please print or type name, address, and zip code of
Transferee)
(Please insert Social Security or Taxpayer Identification
Number of Transferee)
the within bond and all rights thereunder, and hereby irrevocably
constitutes and appoints
attorney to transfer the within bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED:
Signature Guaranteed:
NOTICE: Signature must be
guaranteed by a member firm
of the New York Stock
Exchange or a commercial
bank or trust company.
Registered Owner
NOTICE: The signature above
must correspond to the name of
the registered owner as shown
on the face of this bond in
every particular, without any
alteration, enlargement or
change whatsoever.
Section 4.2: Legal Opinion; Cusip Numbers; Bond Insurance.
The approving opinion of Vinson & Elkins, Houston, Texas, and CUSIP
Numbers may be printed on the Bonds, but errors or omissions in the
printing of such opinion or such numbers shall have no effect on
the validity of the Bonds. If bond insurance is obtained by the
purchaser, the Bonds may bear an appropriate legend as provided by
the insurer.
ARTICLE V
SECURITY AND SOURCE OF PAYMENT FOR BONDS
Section 5.1: Pledge and Source of Payment. All of the Net
Revenues of the waterworks and sanitary sewer system with the
exception of those in excess of the amounts required to establish
and maintain the funds as hereafter provided are hereby irrevocably
pledged for the payment of the Bonds, the Outstanding Bonds, and
the Additional Bonds if issued under the conditions and in the
manner specified in this Ordinance, and the interest thereon, and
it is hereby ordained that the Bonds, the Outstanding Bonds, and
Additional Bonds if so issued, and the interest thereon shall
constitute a first lien upon the Net Revenues.
Section 5.2: Rates. The City covenants and agrees with the
original purchasers of the Bonds and the Additional Bonds if and
when issued:
(a) That it will at all times charge and collect for services
rendered by the System rates sufficient to pay all operating,
maintenance, depreciation, replacement and betterment expense and
other costs deductible in determining "Net Revenues" as herein
defined, and to produce Net Revenues equal to at least one and one-
half times the average annual requirement for the payment of
principal of and interest on the Bonds, the Outstanding Bonds, and
the Additional Bonds if issued.
(b) If the Additional Bonds are issued, or if the System
should become legally liable for any other indebtedness, the City
will fix and maintain rates and collect charges for the services
of the System sufficient to discharge such indebtedness.
Section 5.3: Special Funds. Al]. revenue derived from the
operation of the System shall be kept separate from other funds of
the City. To that end, the creation of the following special
Funds is hereby confirmed.
(a) City of Huntsville Waterworks and Sewer System
Revenue Fund, hereinafter called "Revenue Fund."
(b) City of Huntsville Waterworks and Sewer System
Revenue Bonds Interest and Sinking Fund, hereinafter
called "Interest and Sinking Fund."
(c) City of Huntsville Waterworks and Sewer System
Revenue Bonds Reserve Fund, hereinafter called
"Reserve Fund."
Section 5.4: Revenue Fund. All revenues of every nature
received through the operation of the System shall be deposited
from day to day as collected, into the Revenue Fund, and the
reasonable and proper expenses of operating and maintaining the
System, including salaries, labor and materials shall be paid
therefrom upon approval of the City Council. The City Treasurer
shall not make any disbursement from said Fund for repairs in
excess of $1,000.00 or for extensions, except pursuant to a
resolution adopted by the City Council declaring that it is the
judgment of the City Council that such repairs or extensions are
necessary to keep the plant or system in operation and render
adequate service to the City and the inhabitants thereof, or that
such repairs or extensions are necessary to meet some physical
accident or condition which would otherwise impair the Bonds, and
such resolution, in either case, shall recite the facts and reasons
for such judgment. Certified copies of such resolution shall be
furnished without cost to Owners requesting the same. Such
resolution shall be binding or conclusive upon any Owner. All
revenues of the System not actually required to pay expenses and
costs incurred as permitted by this Section shall be deposited in
the other Funds set forth in this Ordinance, each of which shall
have priority thereto in the order in which they are treated in the
following sections.
Section 5.5: Additional Payments into the Interest and
Sinking Fund. After the payment of all maintenance and operation
expenses of the System, as provided in Section 5.4, and in addition
to and at the same time as the payments into the Interest and
Sinking Fund required by the ordinance authorizing the Outstanding
Bonds, on or before the 1st day of each month, from moneys in the
Revenue Fund, the City shall make the following deposits into the
Interest and Sinking Fund:
Beginning in July, 1991, to pay the interest maturing on
January 1, 1992, and the principal maturing on July 1,
1992, there shall be deposited in substantially equal
monthly installments an amount sufficient to pay, in
addition to other amounts therein and available for such
purposes, such principal and interest as it matures.
Beginning in January, 1992, with respect to interest
payments, and in July, 1992, with respect to principal
payments, and continuing until all of the Bonds have been
paid, there shall be deposited an amount which, in
addition to other amounts therein and available for such
purpose, is not less than one -sixth (1/6) of the next
maturing interest on the Bonds and one - twelfth (1/12) of
the next maturing principal of the Bonds.
If in any month the City shall, for any reason, fail to pay into
said Interest and Sinking Fund the full amounts above stipulated,
the amounts equivalent to such deficiencies shall be set apart and
paid into said Interest and Sinking Fund from the first available
and unallocated revenues of the following month or months and such
payments shall be in addition to the amounts hereinabove provided
to be otherwise paid into said Interest and Sinking Fund each
month.
Money in the Interest and Sinking Fund shall be used only to
pay the principal of and interest on the Bonds, the Outstanding
Bonds and any Additional Bonds.
Section 5.6: Additional Payments into Reserve Fund. In
addition to and at the same time as the payments into the Reserve
Fund required by the ordinance authorizing the Outstanding Bonds,
the City on or before the 1st day of each month, beginning with
the month of January, 1992, shall pay into the Reserve Fund each
month an amount which is not less than $2,833.34 and such monthly
payments shall be continued until such time as there is in the
Reserve Fund ( in addition to the balance required to be in said
Reserve Fund by the ordinances authorizing the Outstanding Bonds)
a balance of not less than $170,000. When said balance of not less
than $170,000 is reached in the Reserve Fund, as above provided,
then insofar as these Bonds are concerned, no further payment need
be made into said Reserve Fund; however, in the event that the
balance required to be in the Reserve Fund by this ordinance is
ever reduced to any amount less than $170,000, the monthly payments
as above provided, shall be resumed and continued until said
balance of $170,000 is again reached and maintained. If in any
month the City shall, for any reason, fail to pay into said Reserve
Fund the full amount above stipulated, amounts equivalent to such
deficiencies shall be set apart and paid into said Reserve Fund
from the first available and unallocated revenues of the following
month or months and shall be in addition to the amount hereinabove
provided to be otherwise paid into said Reserve Fund each month.
Money in the Reserve Fund shall be used to pay the principal of and
interest on the Bonds, Outstanding Bonds, and any Additional Bonds
at any time that the balance in the Interest and Sinking Fund is
insufficient for such purposes.
Section 5.7: Deficiencies in Funds. If in any fiscal year
the City shall, for any reason, fail to pay into the Interest and
Sinking Fund or Reserve Fund the full amounts above stipulated,
amounts equivalent to such deficiencies shall be set apart and paid
into said Funds from the first available and unallocated revenues
of the following fiscal year or years, and such payment shall be
in addition to the amounts hereinabove provided to be otherwise
paid into said Funds during such fiscal year or years.
Section 5.8: Excess Revenues. Any revenues in excess of
those required to establish and maintain the Funds as above
required may be used for the redemption of Bonds, Outstanding
Bonds, or Additional Bonds, or for any lawful purpose.
Section 5.10: Security of Funds. All funds described in this
Ordinance shall be secured in the manner and to the fullest extent
permitted by the laws of Texas for the security of public funds,
and such funds shall be used only for the purposes permitted in
this Ordinance.
ARTICLE VI
ADDITIONAL BONDS
In addition to inferior lien bonds, the City reserves the
right to issue Additional Bonds, in one or more series, and said
Additional Bonds, when issued, may be secured by and payable from
a first lien on and pledge of the Net Revenues of the System in the
same manner and to the same extent as are the Outstanding Bonds and
the Bonds, and such Additional Bonds may in all respect be of equal
dignity with the Outstanding Bonds and the Bonds. No Additional
Bonds may be issued unless:
(a) Each of the Funds set forth above contains the amount of
money then required to be on deposit therein,
(b) The. Net Revenues of the System for either of the
following periods:
the 12 -month period ending on the last day of the month
preceding the month in which the bond ordinance is
adopted authorizing such Additional Bonds,
the then last preceding fiscal year (being the last
completed fiscal year preceding the month in which the
bond ordinance is adopted authorizing such Additional
Bonds),
were equal to at least 1 -1/2 times the average annual principal and
interest requirements on all bonds payable from the revenues of the
System which will be outstanding after the Additional Bonds then
proposed to be issued are issued, sold and delivered.
(c) An independent professional engineer registered under the
laws of the State of Texas makes a projection of the income of the
System during the life of all bonds payable from the revenues of
the System then outstanding and the Additional Bonds proposed to
be issued and such projection shows that, in the engineer's
opinion, the average annual Net Revenues of the System will equal
at least 1 -1/2 times the average annual principal and interest
requirements of all bonds payable from the revenues of the System
which will be outstanding after the Additional bonds then proposed
to be issued are issued, sold and delivered.
The term "Net Revenues" as used in this Section shall mean all
of the net revenues of the System (excluding income received
specifically for capital items) after deduction of the reasonable
expenses of operation and maintenance of the System (excluding
expenditures for capital items).
ARTICLE VII
COVENANTS AND PROVISIONS RELATING TO THE SYSTEM
Section 7.1: Maintenance and Operation - Insurance. The City
maintain the System in good condition and operate the same in an
efficient manner and at a reasonable cost. So long as any of the
Bonds are outstanding, the City agrees to maintain insurance, for
the benefit of the Owners of the Bonds, on the System of a kind and
in an amount which usually would be carried by private companies
engaged in a similar type of business. Nothing in this Ordinance
shall be construed as requiring the City to expend any funds which
are derived from sources other than the operation of the System,
but nothing herein shall be construed as preventing the City from
doing so.
Section 7.2: Accounts and Fiscal Year. The City shall keep
proper books of records and accounts (separate from all other
records and accounts of the City) in which complete and correct
entries shall be made of all transactions relating to the System.
The City will operate the System and will keep its books of records
and accounts on the basis of a fiscal year ending September 30,
unless otherwise ordained by the City Council.
Section 7.3: Accounting Reports. Within ninety days after
the close of each fiscal year hereafter, the City will furnish
(without cost) to any Owner who may so request, a signed or
certified copy of a report by an independent accountant covering
the next preceding fiscal year showing the following information
relating to the System:
(a) Income and Expense Statement;
(b) Balance Sheet;
(c) Accountant's comment regarding the manner in which the
City has complied with the requirements of this Ordinance, and his
recommendation for any changes or improvements in the operation of
the System;
(d) List of insurance policies in force at the end of the
fiscal year, showing as to each policy, the risk covered, the name
of the insurer, and the expiration date;
(e) The number of properties connected with the System and
the total income from the System for the year;
(f) The number of unmetered customers of the System at the
end of the year.
Section 7.4: Inspection. Any Owner of Bonds or Additional
Bonds have the right at all reasonable times to inspect the System
and all records, accounts and data of the City relating thereto.
Section 7.5: Special Covenants. The City hereby further
covenants as follows:
(a) That it has the lawful power to pledge the revenues
supporting the Bonds and has lawfully exercised that power under
the Constitution and laws of the State of Texas; that the Bonds,
the Outstanding Bonds, and the Additional Bonds, when issued, shall
be ratably secured in such manner that no bond shall have
preference over any other bond.
(b) That no free service of the System shall be allowed, and
should the City or any of its agencies or instrumentalities make
use of the services and facilities of the System, payment of the
reasonable value thereof shall be made by the City out of funds
from sources other than the revenues and income of the System.
Section 7.6: Bonds are Special Obligations. The Bonds are
special obligations of the City payable from the pledged revenues,
and the Owners thereof shall never have the right to demand payment
out of any funds raised or to be raised by taxation.
Section 7.7: System and Revenues not Encumbered. The City
covenants that neither the properties comprising the System nor the
revenues of the System are in any way pledged or hypothecated
except as the Net Revenues of the System are pledged to the payment
of the Outstanding Bonds and the Bonds.
ARTICLE VIII
PROVISIONS CONCERNING SALE AND
APPLICATION OF PROCEEDS OF BONDS
Section 8.1: Sale. The Bonds are hereby sold and shall be
delivered to
at a price of par plus a cash premium of $ plus accrued
interest to the date of delivery, subject to the approval of the
Attorney General of Texas and Vinson & Elkins, bond counsel, and
such price is hereby found and determined to be the most
advantageous reasonably obtainable by the City pursuant to public
competitive bids. The Mayor and other appropriate officers, agents
and representatives of the City are hereby authorized to do any and
all things necessary or desirable to provide for the issuance and
delivery of the Bonds.
Section 8.2: Tax Exemption. (a) General Tax Covenant. The
City intends that the interest on the Bonds shall be excludable
from gross income for purposes of federal income taxation pursuant
to sections 103 and 141 through 150 of the Code, and applicable
regulations. The City covenants and agrees not to take any action,
or knowingly omit to take any action within its control, that if
taken or omitted, respectively, would cause the interest on the
Bonds to be includable in gross income, as defined in section 61
of the Code, of the holders thereof for purposes of federal income
taxation. In particular, the City covenants and agrees to comply
with each requirement of this Section 8.2; provided, however, that
the City shall not be required to comply with any particular
requirement of this Section 8.2 if the City has received an opinion
of nationally recognized bond counsel ("Counsel's Opinion ") that
such noncompliance will not adversely affect the exclusion from
gross income for federal income tax purposes of interest on the
Bonds or if the City has received a Counsel's Opinion to the effect
that compliance with some other requirement set forth in this
Section 8.2 will satisfy the applicable requirements of the Code,
in which case compliance with such other requirement specified in
such Counsel's Opinion shall constitute compliance with the
corresponding requirement specified in this Section 8.2.
(b) USE OF PROCEEDS. The City covenants and agrees that its
use of the Net Proceeds of the Bonds will at all times satisfy the
following requirements:
(i) The City will limit the amount of original or
investment proceeds of the Bonds to be used (other than
use as a member of the general public) in the trade or
business of any person other than a governmental unit to
an amount aggregating no more than ten percent of the Net
Proceeds of the Bonds ( "private -use proceeds "). For
purposes of this Section, the term "person" includes any
individual, corporation, partnership, unincorporated
association, or any other entity capable of carrying on
a trade or business; and the term "trade or business"
means, with respect to any natural person, any activity
regularly carried on for profit and, with respect to
persons other than natural persons, any activity other
than an activity carried on by a governmental unit. Any
use of proceeds of the Bonds in any manner contrary to
the guidelines set forth in Revenue Procedures 82 -14,
1982 -1 C.B. 459, and 82 -15, 1982 -1 C.B. 460, including
any revisions or amendments thereto, shall constitute the
use of such proceeds in the trade or business of one who
is not a governmental unit;
(ii) The City will not permit more than five percent
of the Net Proceeds of the Bonds to be used in the trade
or business of any person other than a governmental unit
if such use is unrelated to the governmental purpose of
the Bonds. Further, the amount of private -use proceeds
of the Bonds in excess of five percent of the Net
Proceeds of the Bonds ( "excess private -use proceeds ")
will not exceed the proceeds of the Bonds expended for
the governmental purpose of the Bonds to which such
excess private -use proceeds relate;
(iii) The City will not permit an amount of proceeds
of the Bonds exceeding the lesser of (a) $5,000,000 or
(b) five percent of the Net Proceeds of the Bonds to be
used, directly or indirectly, to finance loans to persons
other than governmental units.
When used in this Section 8.2, the term Net Proceeds of the Bonds
shall mean the proceeds from the sale of the Bonds, including
investment earnings on such proceeds, less accrued interest.
(c) No Federal Guaranty. The City covenants and agrees not
to take any action, or knowingly omit to take any action within its
control, that, if taken or omitted, respectively, would cause the
Bonds to be "federally guaranteed" within the meaning of section
149(b) of the Code and applicable regulations thereunder, except
as permitted by section 149(b)(3) of the Code and such regulations.
(d) Bonds are not Hedge Bonds. The City covenants and agrees
that not more than 50 percent of the proceeds of the Bonds will be
invested in nonpurpose investments (as defined in section
148(f)(6)(A) of the Code) having a substantially guaranteed yield
for four years or more within the meaning of section
149(g)(3)(A)(ii) of the Code, and the City reasonably expects that
at least 85 percent of the spendable proceeds of the Bonds will be
used to carry out the governmental purposes of the Bonds within the
three -year period beginning on the date the Bonds are issued.
(e) No- Arbitrage Covenant. The City shall certify, through
an authorized officer, employee or agent, that based upon all facts
and estimates known or reasonably expected to be in existence on
the date the Bonds are delivered, the City will reasonably expect
that the proceeds of the Bonds will not be used in a manner that
would cause the Bonds to be "arbitrage bonds" within the meaning
of section 148(a) of the Code and applicable regulations
thereunder. Moreover, the City covenants and agrees that it will
make such use of the proceeds of the Bonds including interest or
other investment income derived from Bond proceeds, regulate
investments of proceeds of the Bonds, and take such other and
further action as may be required so that the Bonds will not be
"arbitrage bonds" within the meaning of section 148(a) of the Code
and applicable regulations thereunder.
(f) Arbitrage Rebate,. The City expects to qualify for an
exception to the requirements of the Code relating to rebate to
the United States, because the City will use at least 95% of the
Net Proceeds of the Bonds for local governmental activities of the
City and expects that the total of all tax - exempt bonds (excluding
"private activity" bonds) issued by or attributable to the City
during calendar year 1991 will not exceed $5,000,000. If the City
does not qualify for such exception, the City will take all
necessary steps to comply with the requirement that certain amounts
earned by the City on the investment of the "gross proceeds" of the
Bonds (within the meaning of section 148(f)(6)(B) of the Code), be
rebated to the federal government. Specifically, the City will (i)
maintain records regarding the investment of the gross proceeds of
the Bonds as may be required to calculate the amount earned on the
investment of the gross proceeds of the Bonds separately from
records of amounts on deposit in the funds and accounts of the City
allocable to other obligations of the City or moneys which do not
represent gross proceeds of any obligations of the City, (ii),
calculate at such times as are required by applicable regulations,
the amount earned from the investment of the gross proceeds of the
Bonds which is required to be rebated to the federal government,
and (iii) pay, not less often than every fifth anniversary date of
the delivery of the Bonds and within sixty days following
retirement of the Bonds, all amounts required to be rebated to the
federal government.
(g) Information Reporting. The City covenants and agrees to
file or cause to be filed with the Secretary of the Treasury, not
later than the 15th day of the second calendar month after the
close of the calendar quarter in which the Bonds are issued, an
information statement concerning the Bonds, all under and in
accordance with section 149(e) of the Code and applicable
regulations thereunder.
Section 8.3: Qualified Tax - Exempt Obligations. The City
hereby designates the Bonds as "qualified tax - exempt obligations"
for purposes of section 265(b) of the Code. In connection
therewith, the City represents (a) that the aggregate amount of
tax - exempt obligations issued by the City during calendar year
1991, including the Bonds, which have been designated as "qualified
tax - exempt obligations" under section 265(b)(3) of the Code does
not exceed $10,000,000, and (b) that the reasonably anticipated
amount of tax - exempt obligations which will be issued by the City
during calendar year 1991, including the Bonds, will not exceed
$10,000,000. For purposes of this Section 8.3, the term
"tax- exempt obligation" does not include "private activity bonds"
within the meaning of section 141 of the Code, other than
"qualified 501(c)(3) bonds" within the meaning of section 145 of
the Code. In addition, for purposes of this Section 8.3, the City
includes all governmental units which are aggregated with the City
under the Code.
Section 8.4: Use of Proceeds. Proceeds
Bonds shall, promptly upon receipt by the
follows:
(a) Accrued interest shall be deposited
Sinking Fund.
from the sale of the
City, be applied as
into the Interest and
(b) The remaining proceeds from the sale of the Bonds shall
be used for the purposes of constructing improvements and
extensions to the City's waterworks and sanitary sewer system
and to pay costs of issuance.
Section 8.5: Official Statement. The City hereby approves
the form and content of the Official Statement prepared for use in
the sale of the Bonds and the preparation of a supplement thereto
or final Official Statement containing the terms of sale of the
Bonds and other relevant information. The use of such Official
Statement in the offering of the Bonds by the Purchaser is hereby
approved and authorized. The proper officials of the City are
hereby authorized to execute and deliver a certificate pertaining
to such Official Statement as prescribed therein, dated as of the
date of payment for and delivery of the Bonds.
ARTICLE IX
MISCELLANEOUS
Section 9.1: Further Proceedings. The Mayor, the City
Secretary, and other appropriate officials of the City are hereby
OFFICIAL BID FORM
Mayor and City Council
City Hall, City of Huntsville
1212 Avenue M
Huntsville, Texas 77340
Mayor and City Council
We are in receipt of and have read the Official Notice of Sale and accompanying Preliminary Official Statement, which
are hereby made a part hereof, relating to the $1,700,000 City of Huntsville, Texas Waterworks and Sanitary Sewer System
Revenue Bonds, Series 1991 (the "Bonds "). We offer to purchase the Bonds for the par value thereof plus a cash premium
of $ -0- plus accrued interest from the date of the Bonds to the date of delivery of the Bonds to us, provided the Bonds
bear interest at the following rates: -
Maturity Interest
Amount July 1 Rate
$50,000 1992
$50,000 1993
$60,000 1994
$60,000 1995
$70,000 1996
$70,000 1997
$80,000 1998
Amount
$ 80,000
$ 80,000
$ 90,000
$100,000
$100,000
$380,000
$430,000
Maturity
July 1
1999
2000
2001
2002
2003
2004*
2005*
Interest
Rate
• , e4'
i•
6.40%
• • ,
-r •.
0
* Bonds maturing 2004 and 2005 will be callable in whole or in part on July 1, 2003 or any interest payment date
thereafter at par and accrued interest.
Our calculation (which is not a part of ythis bid) of the interest from above is: ++ ^' 01 ! �0 pp
Total Interest Cost from Jul 1, 1991 $ 1. �C
Less: Cash Premium $ �-O� O.. 9
Net Interest Cost $ a O 0O °
Net Effective Interest Rate $ ;2O(.
The Initial Bonds shall be registered in the name of NCNR r. pi Pm 1 MArle ata tracheate manager). We will
advise the First National Bank, Corporate Trust Division, Huntsville, Texas, the Registrar, of our registration instructions
at least five business days prior to the date set for Initial Delivery.
We agree to complete, execute and deliver to the City within two business days, a certificate relating to the "issue price"
of the Bonds in the form and to the effect attached to or accompanying the Official Notice of Sale, with such changes
thereto as may be acceptable to the City.
Cashier's Check No. issued by //1S �"C/ , ! LX14S Bank, 14S T/b? , Texas,
and payable to your order in the amount of $34,000 (is attached her o) (has been made available to you prior to the
opening of this bid) as a Good Faith Deposit for disposition in accordance with the Official Notice of Sale. Should we fail
or refuse to make payment for the Bonds in accordance with the terms and conditions, this check shall be cashed and the
proceeds retained as complete liquidated damage against us. We hereby represent that the sale of the Bonds in states other
than Texas will be made only pursuant to exemption from registration or qualification and where necessary, we will register
or qualify the Bonds in accordance with the securities laws of the states in which the Bonds are offered or sold.
•1/4112r.A-IFAILMM
Authorized Signature
Leslie F. Parrish, Vice President
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Huntsville, Texas this 1 lth day of June,
1991.
ity Secretary, ity of Huntsville Mayor, City of Huntsville
Return of $34,000 Good Faith Deposit is hereby acknowledged.
BOND YEARS
Dated: July 1, 1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Due: July 1
Accumulated
Amount Bond Years Bond Years
$ 50,000 50 50
$ 50,000 100 150
$ 60,000 180 330
$ 60,000 240 570
$ 70,000 350 920
$ 70,000 420 1,340
$ 80,000 560 1,900
$ 80,000 640 2,540
$ 80,000 720 3,260
$ 90,000 900 4,160
$100,000 1100 5,260
$100,000 1200 6,460
$380,000 4940 11,400
$430,000 6020 17,420
Average Maturity: 10.247
authorized and directed to do any and all things necessary and /or
convenient to carry out the terms of this Ordinance.
Section 9.2: Severabilitv. If any Section, paragraph, clause
or provision of this Ordinance shall for any reason be held to be
invalid or unenforceable, the invalidity or unenforceability of
such Section, paragraph, clause or provision shall not affect any
of the remaining provisions of this Ordinance.
Section 9.3: Open Meeting. It is hereby officially found and
determined that the meeting at which this Ordinance was adopted was
open to the public, and that public notice of the time, place and
purpose of said meeting was given, all as required by Article
6252 -17, Vernon's Texas Civil Statutes, as amended.
Section 9.4: Paying Agent /Registrar Agreement. The form of
agreement setting forth the duties of the Registrar is hereby
approved, and an appropriate official of the City is hereby
authorized to execute such agreement for and on behalf of the City.
Section 9.5: No Personal Liability. No recourse shall be
had for payment of the principal of or interest on any Bonds or for
any claim based thereon, or on this Ordinance, against any official
or employee of the City or any person executing any Bonds.
Section 9.6: Parties Interested. Nothing in this Ordinance
expressed or implied is intended or shall be construed to confer
upon, or to give to, any person or entity, other than the City,
the Registrar, and the Owners of the Bonds, any right, remedy or
claim under or by reason of this Ordinance or any covenant,
condition or stipulation hereof, and all covenants, stipulations,
promises and agreements in this Ordinance shall be for the sole and
exclusive benefit of the City, the Registrar, and the Owners of the
Bonds.
Section 9.7: Repealer. All orders, resolutions and
ordinances, or parts thereof, inconsistent herewith are hereby
repealed to the extent of such inconsistency.
Section 9.8: Effective Date,. This Ordinance shall become
effective immediately upon passage by this City Council and
signature of the Mayor.
PASSED AND APPROVED this 11th day of June, 1991.
ATTEST:
etary
OF HUNTSVILLE, TEXAS
(SEAL)
APPROVED AS TO LEGALITY:
City Attorney
CITY OF HUNTSVILLE, TEXAS
Mayor
CITY OF HUNTSVILLE, TEXAS