HomeMy WebLinkAboutResolution - 021259A - CNB To Purchase U.S. Treasury 3 3_4% Notes Using Special Waterworks System Fund - 02_12_1959 Ro-a-- RESOLUTION
2 - 5
2-/ WHEREAS,, as provided by Art. 836, V+ernon$s Annotated Civil Statutes of Te'
as amended by Acts of the 51 st Leg. the City of Lubbock is authorized and em-
powered to invest its respective sinking funds for redemption and payment of the
outstanding bonds of said City of Lubbock, in bonds of the United States; War
Savings Certificates; and certificates of indebtedness issued by the Secretary
Treasury of the United States, and
WHEREAS , by Ordinances Numbered 1374, 1526, 1834, and 2396, duly passe
etland enacted by the City Commission of the City of Lubbock,, there has been issued
certain Water Works System Revenue Bonds, designated in each Ordinance
3 respectively as the 'City of Lubbock, Texas, Water Works System Revenue Bond's,'
Series 1953, ' dated June 1, 1953; 'City of Lubbock, Texas, Water Works System`
Revenue Bonds,. Series,1954, ' dated March 12 1954; 'City of Lubbock, Texas,
Water Works System Revenue Bonds, Series 1956, ' dated March 12 1956, and
'City of Lubbock, Texas, Water Works System Revenue Bonds, Series 1958,
dated March 1, 1958, and
WHEREASI, in each of said Ordinances above numbered herein it was provided
that an interest and sinking fund be established,, including a reserve fund to pay the
obligations created therein, respectively, in the. Citizens National Bank of Lubboc
Texas, and designated said interest, sinking and reserve fund as the "Special
Water Works System Revenue Bend Retirement and Reserve Fund" and,na.med and`,
made said Bank the custodian of said fund and the paying agent of the Bonds
described and authorized to be issued in each of said Ordinances, and
WHEREAS,, there has been.deposited and there is now on deposit in the Citize
National Bank of Lubbock.. Lubbock County, Texas, in the "Special Water Works
System Revenue Bond Retirement and Reserve Fund, of the City of Lubbock" the
sum of $440, 000 00 which is subject to being invested in United States Government)
Securities as provided and authorized by Art. 836„ Vernon's Annotated Civil Statut s
of Texas, as amended by Acts of 51st Legislature, and
WHEREAS, it is now found and determined by the City Commission of the City
of Lubbock that it is to the best interest of the city to invest said sum of $440, 000. 0
of the "Special Water Works System Revenue Bond Retirement and Reserve Fund!'
now on deposit in the Citizens National Bank of Lubbock., Lubbock County, Texas,
in United States Securities, which according to their terms, mature at a date prior
to the time of maturity of the bonds for the payment of which such "Special Water
Works System Revenue Bond Retirement and Reserve Fund, " was created, and
WHEREAS,, there appears to be available United States Treasury Notes, at
3 3/4 per cent, due November 15, 1962, which has been determined to be a maturi y
date not subsequent to the time of maturity of any of the bonds for the payment of.
which such $440,000. 00 has been deposited in said Bank as "reserver', NOW
T HEREF ORE.,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK:
SECTION 1. THAT the Citizens National Bank of Lubbock, Lubbock County,
Texas, as custodian bank and depository of the 'Special Waterworks System
Revenue Bond Retirement and Reserve Fund" acting through its duly authorized
officer or officers, be and the same is 'hereby requested and authorized to purchas
and invest the sum of $440, 000. 00 of said "Special Waterworks System Revenue
Bond Retirement and Reserve Fund" in "United States Treasury 3 3/40/0 notes"
maturing and payable November 15, 1962, at best possible price available, and
that such notes be held to credit of said Retirement and Reserve Fund for the
redemption and payment of any outstanding bonds issued pursuant to Ordinances
Numbered 1374, 1526, 1834 and 2396 of the said City of Lubbock.
SECTION ,2. 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 ordinances consistent
with public policy and Article 836, Revised Civil ,Statutes of Texas, providing for
the investment of sinking funds which in its opinion is part of and react into said
bond ordinance, the provisions of which do not exclude , and were never intended to
exclude, limit or deny the City Commissionst statutory right to invest said funds,
as provided by law.
Passed by the Commission this 12th day of February , 1959
-LR14NUS1. BAKER, Mayor
"..-. ATTEST:
bon» ppeo"d
f �- . Fy ABorraY
avenia Lowe, City S cretary-Treasurer �'