HomeMy WebLinkAboutResolution - 092953G - Authorize Issuance Of Electric Light System Revenue Bonds - 09_29_1953 +✓
I R E S O L U T .i O N
WHEREAS, the City of Lubbock by Ordinance No. 860 entitled."AN
ORDINANCE AUTHORIZING ISSUANCE OF $1,850, 000. 00 'CITY OF LUBBOCIK,
TEXAS, ELECTRIC LIGHT SYSTEM REVENUE BONDS, SERIES 1948' DATED
Copy MARCH 1, 1948, " said ordinance being passed.February 26, 1,948; and,
10-2-53 WHEREAS , the City of Lubbock by Ordinance No. ..,916 entitled "AN
to City Audi. ORDINANCE AUTHORIZING ISSUANCE OF $2,300, 000 'City of Lubbock, Texas,
tor�, Electric Light System Revenue Bonds, Series 19491, :Dated-May 1, 1949, t' said
ordinance being passed April 28, 1949, and ordinances therein referred to pro-
vided an,interest and sinking fund as provided by law, including a reserve fund
to pair the :obligations therein created, as provided in said ordinances, and
established a fund in the First National ,Bank in Dallas, ,Dallas, Texas, desig-
nated "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND, " and
said bank was designated custodian of said fund and paying agent of the bonds
provided for in said ordinances; and,
W HE R EAS , the City of Lubbock now has on deposit in said fund in said
bank a substantial sum of money, and the Governing Body of the City of Lubbock
desires to invest a part of said funds in United States Government securities,
as-provided by Article 836, Revised Civil Statutes of Texas, by purchasing bonds
and/or certificates which, according to their terms, 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 ordinances, it being the intent of the Governing
Body of the City of Lubbock to purchase bonds of the value and to the extent of
that part of the interest and sinking fund designated by said ordinances as a
"RESERVE"; THEREFORE , i
BE IT RESOLVED BY THE CITY.COMMISSION OF THE. CITY OF LUBBOCK:
SECTION I. That the Mayor of the City of Lubbock BE, and he is hereby
authorized to select bonds of the. United States and/or certificates of indebtedness
issued by the-Secretary of the Treasury of the United States, as provided by
Article 836, Revised.Civil Statutes of Texas, and which mature prior to the
time of maturity of the City of Lubbock'bonds for the payment of which the
"reserve" fund, of the fund designated.by.Ordinance No. 860 and-Ordinance No.
T.
916 as "SPECIAL.ELECTRIC LIGHSYSEM REVENUE BOND!FUND, " was
(created; that said bonds so'selected be purchased as an investment of but no�in
excess of the amount of the "RESERVE" fund balance; and that additional invest-
ments be..timely made in.the:same maxin.er'as and when:,said_"reserve'' fund is
substantially increased;by additional payments into said fund under provisions of
the ordinances; PROVIDED, HOWEVER) ,the investments here authorized shall
be made in bonds and/or certificates maturing at such times that under reason-
ably fore seeable.conditions such securities need not be converted into cash at a
loss and/or prior to maturity.
SECTION 2. That the .First National Bank in Dallas, Dallas, Texas,
designated as custodian and paying :agent in each of said.ordinances, BE, and
said bank is hereby authorized and directed.upon request of the Mayor of the
City of Lubbock to invest said eireserve't fund in such securities, which shall be
paid for out of said_1 reserve" fund upon delivery of such securities to said bank,
such securities to become a part of the "reserve" fund, the bank.ts safekeeping
receipt to be forthwith transmitted to the City Secretary of the,City of Lubbock.
`SECTION 3. That the First National Bank in Dallas, Dallas, Texas, as
custodian and depository of said fund, is authorized and directed to convert
said`secu.rities into cash on their respective maturity dates for benefit of the
"reserveT1_.fund; and to convert any such securities into cash.for benefit of the
"reserve'! fund prior to maturity when directed by the.City Co'nunission, PRO-
VIDED,that said bank.shall not be liable for loss, if $ny, sustained by the
"reserve1' fund due to ;any decrease in, value of the securities so purchased under
this authority, but FURTHER PROVIDED said bank shall otherwise be liable as
the custodian and depository of `said funds, .including bonds and/or certificates,
and interest accruing from any such investments.
SECTION 4. That all interest accruing from the investments herein
authorized shall be deposited in a new account designated "CITY QF.LUBBOCK
INTEREST FUND, 1' subject to disbursement for such City purposes as the
City Commission may direct by its resolution 'duly passed.
SECTION 5. The Mayor of the City of Lubbock and the City
Treasurer are authorized to issue such drafts or orders to pay, as may be
necessary or required to carry out the provisions and intent of this authority.
.SECTIONS. The provisions .of this resolution shall never be construed
to change. vary or alter any provision of gany ordinance .to which.it relates, it
being:the intention of. the.City Commission to construe said bond ordinances
consistent with,public policy and Article 835,, Revised. Civil:.Statutes of Texas,
providing for the investment of sinking ;funds which in its opinion is part of and
read into said bond ordinances, the provisions of which do not exclude, and
were never intended to exclude, limit or deny the 'City Commissiones statutory
right to invest said funds, as provided by law.
On motion of Commissioner Davis seconded by Cjammis-
stoner Thomas , the foregoing Resolution was this 29 day
of September 1953, duly passed by the following vote:
Commissioners voting "YFAII: P,iorris, Carpenter, Davis, Thomas & Mayor
Tripp
Commissioner's voting ItNAY": None
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ATTESTZ: 7
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