HomeMy WebLinkAboutResolution - 010859G - City Auditor Authorized To Select U.S. Bonds And/Or Treasury Certificates - 01/08/1959RESOLUTION
WHEREAS,,, the City of Lubbock by Ordinance No. 9.16 entitled "An Ordinaw
Authorizing Issuance of $2x.300,,,„000. 00 ''City of Lubbock, Texas, Electric Light
System Revenue Bonds, Series 19491 dated May 1, 1949,'' said Ordinance being
passed on April Z%, 1949, and said Ordinance therein referred to provided an
interest and sinking fund as requested by law, including a reserve fund to pay the
obligations therein created,, and astablished a fund in the E r fi. ,Tat : al,Baril .ir �,
Dallas,, Dallas,, Texas, designated "Special Electric Light System Revenue Bond
Func4;11 and said bank was designated custodian of said fund and paying agent of the
bonds provided for in said Ordinance; and,
WHEREAS, the City of Lubbock by Ordinance No. 1050 entitled "An Ordinance
Authorizing Issuance of $774, 000. 00 'City of Lubbock, Texas, Electric Light Systf
Revenue Bonds, Series 19511 dated January 1, 1.951, "and said Ordinance therein
referred to provided an interest and sinking fund as reque&d by lave, including a
reserve fund to pay the obligations therein created, and established a fund in the
,&merican N tional Bank and Trust Company of Chicago, Chicago,; Illinois,,
designated IO cft Light System Revenue Bond Funda.11 and said bank was desig-
nated custodian of said fund and paying agent of the bonds provided for in said _~
Ordinance; and.,
WHEREAS the City of Lubbock by Ordinance No. 2548 entitled "An Ordinance
Authorizing Issuance of $950, 000. OOtCity of Lubbock, Texas, Electric Light
;system Revenue Bonds, Series 1958; dated September 1, 1958,.” and said Ordinanc
therein referred to provided an interest and sinking fund as requested by lawl,
including a reserve fund to pay the obligations therein created;, and established a
fund in the Mercantile National Bank at Dallas, Dallas,; Texas, designated ''Special
Electric Light System Bond Fund,and, said bank was designated custodian of
said fund and paying agent of the bonds provided for in said Ordinance; and,
WHEREAS,t th§ sihkirng Xunxls>;�rea:te&,in' , the -hereinabove mentioned ordinances
have all been deposited in the special funds as above identified in the First Nationa;
Bank in Dallas, Dallas, Texas, American National Bank and Trust Company of
Chicago, Chicago$ Illinois, and Mercantile National Bank at Dallas, Dallas, Texas
and the City of Lubbock'. now 'has on deposit in said funds in said banks substantial
sum of money and the governing body of the City of Lubbock, desires to invest a
part of said fund in United States Government Securities. as provided in Article
836, Revised Civil Statutes of Teexas, by purchasing bonds and/or certificates
which, according to their termsa, should mature prior to the time of maturity of
the City of Lubbock Bonds, for the ;payment .of which such sinking fund was created
by said ordinance sa it being the intent of the governing body of the City of Lubbocka
to purchase bonds of the value and to. the extent of that part and interest of the
sinking fu?A designated by said ordinances as a, "reserve" NOW THEREFORE,,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK:
SECTION 1. THAT the City Auditor of the ,City of Lubbock, BE and is hereby
prized to select bonds of the United States and/or certificates of indebtedness
i
j''issued by the Secretary of the Treasury of the United States., not to exceed five yea
maturity, as provided by Article 836., Revised Civil Statutes of Texass, which matu le
prior to the time of the ma:icurity of the. City of Lubbock bonds for the payment of
ll,which the "reserve" fund of the fund designated by Ordinances No. 9160 1050, and
2548 as "Special Electric Light Bond Fund*," was created; that said bonds so
selected to be purchased as an investment of part not in excess of the amount of
the "reserve" fund balance, and that additional investments be timely made in the
same manner as and when said'teserve " fund is substantially increased- by addi-
tional payments and the.said fund under the provisions of said ordinances; provided',;
however.,, the investments here authorized shall be made in bonds or certificates
maturing at such times that under reasonably foreseeable conditions such securitie
need not be converted into cash at a loss or prior to maturity.
SECTION 2. THAT the First:N4tional Bank in Dallas, Dallas,. Texas; Americ`13
!National Bank and Trust Company of Chicago, Chicago, Alinois, and Mercantile
(,National Bank at Dallas, Dallas, Texas, designated as custodians and paying
;agents in such ordinances, BE,, and said banks are hereby authorized and directed
Ili upon request of the City Auditor of the City of Lubbock to invest said "reserve"
(funds in such securities as hereinabove specified as may be selected by said City II,
,Auditor;, which shall be paid for out of said "reserve" fundsupon delivery of such
securities to become a part of said "reserve"' funds.
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SECTION 3. THAT the First National Bank in Dallas, Dallas, Texas,.
,American National Bank and Trust Company of Chicago,, Chicago, Illinois, and11
';Mercantile National Bank at Dallas, Dallas, Texas, as custodians and depositories'!
,of said funds., are authorized and directed to convert said securities into cash on
;their respective maturity dates for benefit of the "reserve" fund; and to convert an
',such securities into cash for benefit of the "reserve" fund prior to maturity when Ii
Idirected by the City Auditors PROVIDED., that said =banks shall not be liable for
;lossa if any, sustained by the "reserve" funds due to any decrease in value of the
;';securities so purchased under this authority., but FURTHER PROVIDED said banks;
�Ishall otherwise be liable as the custodiansand •depositories of said funds, including
[bonds and/or certificates,, and interest accruing from any such investments. I
SECTION 4. The provisions of this resolution shall never be construed to
:hange, vary or alter any provision of any ordinance to which it relates:. it being
he intention of the City Commission to construe said bond ordinance consistent
vith public policy and Article 8367 Revised Civil Statutes of Texas., providing for
he investment of sinking funds which in its opinion is part of and read into said
►ond ordinance., the provisions of which do not excludes and were never intended to
excludes limit or deny the City Commissionts statutory right to invest said funds,
ss provided by law.
Passed by the Commission this 8th day of January ,