HomeMy WebLinkAboutResolution - 121963E - City Auditor Authorized To Select Bonds_Certificates For Light_Power System Fund - 12_19_1963 F65:djl
RESOLUTION
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WHEREAS, by Ordinance No. 4205 passed and adopted by the City Commissill r
of the City of Lubbock October 10, 1963, Ordinance No. 4204 relating to the
authorization and issuance of $1, 666, 000 "City of Lubbock, Texas Electric Light
and Power System Revenue Refunding Bonds, Series 1963" was amended to clarify
the method of providing and administering funds for the payment of such bonds, an
said Ordinance as amended provided that the City covenanted and agreed to provid
a bond fund with all amounts required to pay, as due, each of the principal and
interest installments pertaining to all bonds and additional Parity Bonds and furthe
provided that such bond fund would be created as a reserve which would be placed
on deposit to the credit of the underlying bonds and appropriated a sufficient sum
for the purpose of constituting a Reserve Portion of the Special Electric Light and
Power System Revenue Refunding Bonds, Series 1963"; and,
WHEREAS, all steps necessary or convenient to transfer saidlReserve Bond
Fund has now been made as directed by Ordinance No. 4205 and said Reserve
Portion or part thereof should now be made available for investment' purposes as
provided by Article 836, Revised Civil Statutes of Texas, NOW THE�EFORE;
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 authorized to select Bonds of the United States and/or Certificates of
Indebtedness issued by the Secretary-Treasurer of the United States, not to
exceed 5 year maturity as provided by Article 836, Revised Civil Statutes of
Texas, which mature prior to the time of the maturity of the City of Lubbock bond
issued and ,.sold by virtue of Ordinance No. 4204 as amended by Ordinance No.
4205, and for which the "reserve" fund described as the "Special Electric Light
and Power System Revenue Bond Retirement and Reserve Fund" was created; that
said bond or bonds so selected to be purchased as an investment of part, not in
excess of the amount of the "reserve" fund balance, as provided under the provisi
of said Ordinance and provided further that the investments hereby authorized shal
be made in bonds or certificates maturing at such times that under reasonably for
seeable conditions such securities need not be converted into cash at a loss or priar
to maturity.
SECTION 2. THAT the Citizens National Bank of Lubbock, Texas as custod' in
of such bond 'reserve" fund by virtue of being the Citytt Official Depository Bank,
BE and said Bank is hereby authorized and directed upon request of the City Audit
of the City of Lubbock to invest said "reserve" funds as may be available in such
securities as hereinabove specified and as may be selected by said City Auditor,
which shall be paid for out of said "reserve" fund upon delivery of such securities
to become a part of City "Reserve" Funds.
SECTION 3. THAT the Citizens National Bank as custodian and depository
of said bond reserve fund, shall be authorized and directed to convert said
securities into cash on the respective maturity dates for the benefit of the reserve
fund; and to convert any such securities into cash for the benefit of said reserve
fund prior to maturity when and if directed by the City Auditor, 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.s6 purchased under this authority,
but FURTHER PROVIDED, said Bank shall otherwise be liable as the custodian
and depository of said funds, including and/or Certificates, and interest accruing
from any such investments.
SECTION 4. 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 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 read into said
bond ordinance, the provisions of which do not exclude, and were never intended t
exclude, limit or deny the City Commissionts statutory right to invest said funds,
as provided by law.
Passed by the Commission this 19th day of December , 1963
CK F,*. STRONG, Mayor
ATTEST: Form Approved
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- City Attorney
Lav nia Lowe, City ecreta y-Treasurer