HomeMy WebLinkAboutResolution - 042855C - Intent To Invest Electric Light System Revenue Bond Funds In US Securities - 04_28_1955 R E S O L U T I O N
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WHEREAS, the City of Lubbock by Ordinance No. 1050 entitled "AN ORDI-
NANCE AUTHORIZING ISSUANCE OF $774,000.00 'CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT SYSTEM REVENUE BONDS, SERIES 1951' DATED JANUARY 1, 1951," said Ordi-
nance being passed December 28, 1950, and ordinance therein referred to pro-
vided an interest and sinking fund as provided by law, including a reserve
fund to pay the obligations therein created, as provided in said ordinance
° and established a fund in the American National Bank and Trust Company of
Chicago, Chicago, Illinois, designated "SPECIAL ELECTRIC LIGHT SYSTEM REV-
ENUE BOND FUND," 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, now has on deposit in said fund in said
bank, a substantial sum of money, and the Governing Body of the City of Lub-
bock desires to invest a part of said fund in United States Government sec-
urities, as provided in 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 ordinance, 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 ordinance as a "RESERVE"; THEREFORE, �
BE IT RESOLVED BY THE CITY C0114ISSION OF THE CITY OF LUBBOCK:
SECTION 1. 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 in-
debtedness issued by the Secretary of the Treasury of the United States, as
provided by Article 836, Revised Civil Statutes of Texas, and which matd re
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. 1050
as "SPECIAL ELECTRIC LIGHT SYSTEM REVENUE BOND FUND," was created; that said
bonds so selected be purchased as an investment of but not in excess of the
amount of the "RES.ERVI� " fund balance; and that additional investments be
timely made in the same manner as and when said "reserve" fund is substan-
tially increased by additional payments into said fund under provisions of
the ordinance; PROVIDED, HOWEVC:R, the investments here authorized shall be
made in bonds and/or certificates maturing at such times that under reason-
ably foreseeable conditions such securities need not be converted into cash
at a loss and/or prior to maturity.
SECTION 2. That the American National Bank and Trust Company of Chicago,
Chicago, Illinois, designated as custodian and paying agent in such ordinance,
BE, and said bank is hereby authorized and directed upon request of the Mayor
of the City of Lubbock to invest said "reserve" fund in such securities, which
shall be paid for out of said "reserve" fund upon delivery of such securiti(.s,
to become a part of "reserve" fund, the bank's safekeeping receipt to be forth-
with transmitted to the City Secretary of the City of Lubbock.
•- _ ... _ -_�����►--ire
SECTION 3. That the American National Bank and Trust Company of Chic-
ago, Chicago, Illinois, as custodian and depository of said fund, is author-
ized and directed to convert said securities into cash on their respective
maturity dates for benefit of the "reserve" fund; and to convert any such sec-
urities into cash for benefit of the "reserve" fund prior to maturity when dir-
ected by the City Commission, PROVIDED, that said bank shall not be .liable for
loss, if any, sustained by the "reserve" 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 certif icates,_and interest accruing from any such
investments.
SECTION 4... That all interest accruing from the investments herein auth-
orized shall be deposited in a new account designated "CITY OF LUBBOCK INTEREST
FUND," 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 Secretary-
Treasurer are authorized to issue such drafts or orders to pay, as may be nec-
essary or required to carry out the provisions and intent of this authority.
SECTION 6. The provisions of this resolution shall never be construed
to change, vary or alter any provision of any ordinance to which it relates,
it being the intention of the City Commission to construe said bond ordinance
r consistent with public policy and Article 8369 Revised Civil Statutes of Texas,
providing for the investment of sinking funds which in its opinion is part of
and read into said bond ordinance, the provisions of which do not exclude, and
were never intended to exclude, limit or deny the City Commission's statutory
right to invest said funds, as provided by law.
On motion of Commissioner_ Pnrrpczt , seconded by Commissioner
�Carnent ar , the foregoing Resolution was this 2Sth day of
April
1955, duly passed, by the following vote:
Commissioners voting "YEA": Carpenter, Forrest, Thomas and Mayor Pro-ten
Baker
Commissioners voting"NAY"None
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L enia Lowe, 4ity Secretary-Treasurer
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4/18/55