HomeMy WebLinkAboutOrdinance - 594-1938 - Issuance Of $50,000 Interest Bearing Time Warrants - 06/24/1938v · .... .,
594
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
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OLD-2. 4 -1.93~
OU-2~-1938
On this the 24th day of JWle, 1938, the City Commission of the
City of Lubbock, Texas, met in recess meeting with the following n1embers
o£ the Commission present:
c. E. Slaton, Mayor
Hub Jones
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... W-Gio5-oiM~cWIM...,,~· J,_l~.,~;a...,n.__ ___ ) Commissioners
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La venia W'illiams, City Secretary
W. H. Rodgers, City Manager
with the following memebers absent: J A Fortenberry , ~--~--------~---------------------
constituting a quorum, the following ~ong other business, was transacted
to-wit:
A motion was made by Commissioner Hub Jones that Ordin-
ance No. ..a5.w9ii.Oi4..__ __ be passed on its first reading. The motion was seconded
by Commissioner W.B .Price • Said motion, carrying with it the passage
on 1 ts first reading of Ordinance No. __,;;:5;..;;9;..;;4;__ ____ _ prevailed by the
following vote:
AYES: Mayor, c. E. Slaton, and Commissioners----------------'
W.B. Price, Hub ,Jones, , W G McMillan
NOES: None.
and ------------------·
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The mayor declared the Ordinance passed on its first reading.
The Ordinance is as follows:
GRDIN:CE NO. 5~4 ~
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $50,000.00 of interest-
bearing TIME WARRANTS TO REPRESENT THE CITY'S INDEBTEDNESS THEREUNDER,
FOR STREET IMPROVEMENTS, LEVYING THE NECESSARY TAXES TO PAY THE INTEREST
AND TO PROVIDE A SINKING FUND TO REDEEM SAID WARRANTS AT MATURITY.
WHEREAS, the City Commission of the City of Lubbock, Texas, has
determined that it ia to the best interest of the City that it pave certain
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streets, parts of streets and alleys and install curb and gutter on certain
streets,parts of streets and alleys in the City of Lubbock, Texas, and to
issue interest-bearing time warrants in pay,ment of the necessary labor and
material required and necessary to build and la~ said paving, curbs and
gutters; and
WHEREAS, pursuant to the provisions of Chapter 163 of the
Acts of the Regular Session of the Forty Second Legislature, the City
Commission has published notice of intention to issue said interest-
bearing time warrants, which notice is as follows to-wit:
and
"NOTICE OF INTENTION TO ISSUE INTEREST-
BEARING TIME WARRANTS
Notice is hereby given that on the 24th day of June, 1938,
the City Commission of the City of Lubbock, Texas, will pass an
Ordinance authorizing the issuance of interest-bearing time war-
rants of said City in the maximum amount of not exceeding Fifty
Thousand ($50,000.00) Dollars, for the purpose of street improve-
ment by the purchase of material and the payment of labor needed
and necessary to make such street improvement.
Said warrants shall bear a maximum interest rate of not
exceeding four percent (4~) per annum, and shall mature on or
before one 18&r from their date.
This notice i~ given as required by law.
c. E. Slaton
Mayor of the city of Lubbock, Texas";
WHEREAS, said notice was published in a newspape~ published
within the City or Lubbock, Texas, in the issues of June lOth , 1938 1
and June 16th 1 1938; and _....;:;;;;....;;o,.,;;=...-
WHEREAS, no petition was filed by the property tax-paying
voters of the City of Lubbock asking for a referendum on the question of
issuing said warrants.
THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF LUBBOCK, TEXAS:
Section 1.
That in accordance with said notice of intention to issue inter-
eat-bearing time warrants of the City of Lubbock, Texas, for Street improve-
ment purposes. said warrants to be called "City of Lubbock, Texas, Street
Improvement Warrants, Series 1938" 11 be issued in the amount of Fifty
Thousand~50,000.00) Dollars, payable to bearer, evidencing the indebted•
ness of the City of Lubbock, Texas.
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Section 2.
Said warrants shall be numbered from One (1) to Fifty (50)
both inclusive~ shall be in the denomination of One Thousand ($1000.00)
Dollars each and shall be dated the 27th day of J~, 1938, and all
of said warrants shall become due and payable on or before one year after
date.
Section 3.
Said warrants shall bear interest at the rate of Four percent
(4%) per _~~um from date until paid, interest pa~~le on the 2Zth
day of l>.e.t:.t. ,. /, 1938, a~d on the 27t]i day of Juir~t 1939, both principal
and interest payable at the office of the City Treasurer of Lubbock,
Texas.
Section 4.
Said warrants shall be signed by the Mayor, countersigned by the
City Secretary and registered by the City Treasurer, and the seal of the
Ci'f;;y shall be impressed upon each of them.
Section s.
Said warrants shall be in substantially the following form: .
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"No. 1 _...,.;;;; ___ _ $ 1,000.00
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
STREEI' IMPROVEMENT WARRANTS, SERIES 1938.
The City of Lubbock, in the County of Lubbock, and State of
a.nd a.~e.e s to P.aY Texas, for value received, is justly indeb~~d/~.searer on the 27th
day of Jui•, 1939, the principal sum of $1,000.00 in lawfUl money of
the United States of America, together with interest thereon from date
until paid at the rate of four percent (4%) per annum, interest payable --_..., --. \. J--
_ 1939, and the fUll faith, credit
and resources of the said City are hereby irrevocably pledged to the prompt
payment of this warrant 6 and the City Treasurer is author1zed6 ordered
and directed to pay to bearer said principal swm, together with interest
thereon, principal and interest payable at the office of the City Treasurer,
Lubbock, Texas, upon presentation and surrender of this warrant. In
event the sum of money represented by this warrant shall not be paid at
maturity, the same shall thereafter bear interest at the rate of four
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percent (4%) per annum until fully paid, and in the event of such default
and it becomes necessary for the holder hereof, to )lace claim therefor
in the hands of an attorney for collection, or to institute suit there-
on, the City of Lubbock, Texas, i~ obligated to pay to the holder an
additional ten percent (10%) of the wmount of default as attorney's fees.
This warrant is one of a series of Fifty (50) warrants numbered
consecutively from one (1) to Fifty (50) in the denomination of One
Thousand <tlooo.oo) Dollars each, aggregating the sum of Fifty Thousand
($50 1 000.00) Dollars, issued for the purpose of evidencing the indebted-
ness of said City ot Lubbock, Texas, to bearer hereof for the purchase
price of material and labor purchased by the City of Lubbock to pave
certain streets, parts of streets and alleys, and to install curbs and
gutters on certain streets and parts of streets in the City of Lubbock,
Texas, and under and by virtue ot the Constitution and Laws of the State
of Texas, including the Provisions of Chapter 163, Acts of the Regular
Session of tbe Forty-second Legislature, the Charter of said City ~d pur-
suant to an Ordinance passed by the City Commission of said City of
Lubbock, Texas, which Ordinance is duly recorded in the minutes of said
City Commission. The City Commission of the City of Lubbock, Texas,
hereby e~pressly represents and declares by the execution and delivery
of this warrant that said City bas received full value thereof to the
amount stated for street improvements in said City.
The date of this w~rrant~ in conformity with the Ordinance
above mentioned is the 27th day of Junt. 1938.
AND IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions
and things required to be done precedent to and in the issuance of this
warrant and the series of which it is a part, including the levying of
the tax to pay principal and interest thereon~ have been properly done,
have happened and been performed in regular and due time, form and manner
as required by law, and that the total indebtedness of said City, includ-
ing this warrant, does not exceed any constitutional, Statutory or Charter
Limitations.
IN WITNESS WHEREOF, the City of Lubbock, Texas, bas caused the
corporate seal of said City to be affixed hereto, and this warrant to be
signed by its Mayor, countersigned by its City Secretary and registered
by its City Treasurer, as of the date last above written.
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Mayor, ~Ity of tuo6ock, Texas
COUNTERSIGNED:
_) ~ity Secretary, City of Lubbock,
T e x a s
REGISTERED as of the 2'lth day of .Ju~ 1938.
City Treasurer, City of tu~bock,
T e x a s "
Section 6.
The form of endorsement on the reverse side of each of said
warrants shall be substantially as follows:
nENDORSEMENT
THIS IS TO CERTIFY that Bearer received the within warrant
from the officials of the City of Lubbock, Texas, and tor value received,
hereby transfers and delivers said warrant Without recourse, and the said
Bearer is hereby subrogated to all claims, liens, rights or titles,
whether at law or in equity which are or may be secured to him under said
warrant and the Ordinance under which same were issued, and the Bearer is
authorized to collect same and to give tull acquittance therefor.
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Section 7.
Said warrants shall be executed and delivered to the Bearer
in payment of materials and labor used by the City of Lubbock in paving
and otherwise improving certain streets, parts of streets 1 and alleys, and
laying curbs and gutter on certain streets and parts of streets tor and
within the City of Lubbock, Texas.
Section 8.
The City ComDdssion of the City of Lubbock, Texas, hereby ex-
pressly acknowledges, represents and declares that the City of Lubbock,
Texas, is justly and legally indebted to the Citizens National Bank of
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Lubbock, Texas, in the sum of $25,000.00 for money furnished from
time to time by said Bank, at the request of said City, to take up and
pay off valid claims for labor and material owing by said City for such
street improvements already made in and for said City. The City of
Lubbock, Texas, having received the benefits of said improvements, paid
tor by said Bank in the manner stated, to the full amount thereof, it is
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hereby ordered by the City Commission that sufficient amount of the afore-
said warrants be delivered to the said Citizens National Bank of Lubbock,
Texa~, as ·evidence of the City's legal liability and obligation to said
Bank upon said indebtedness already owing. It is fUrther ordered by the
City Commission of the City of Lubbock, Texas, that as and when said Bank
continues to pay claims for labor and material furnished said City in
making said street improvements, that the City Manager of the City of
Lubbock shall deliver to said Bank from time to time sufficient of said
warrants, in number and amount, to 'reinburse said Bank for payment of
such labor and materials for said street improvements made for said City.
The City Commission of the City of Lubbock, Texas, hereby expressly
represents and declares that by the execution and delivery of said war-
rants to said Bank, the City 6f Lubbbck has received the benefit of said
improvements and the value of said warrants in the amount stated. The
City Manager shall not deliver any such warrants to said Bank until ~ch
improvements have been made for, and received by the City, and the City
has become indebted to said Bank for money furnished by said Bank in
paying for said labor and material in making said street improvements for
said City, but the City Manager's delivery of such warrant or warrants
to said Bank shall be evidence that -the aforesaid requirements have been
fully complied with and that said City has become indebted to said Bank
'£or the full liDlount of said warrant or warrants. Any warrant or warrants
not delivered to said Bank in payment of the City's liability to said bank
within one year from date shall be immediately canceled by the City
Manager o~ City Auditor.
Section 9.
A fund is hereby made and created and shall be provided and set
aside out of the funds derived from taxes authorized to be levied and
collected by the Constitution and Laws of the State of Texas, and the
Charter of the City of Lubbock 1 such fund to be designated "STREET IM-
PROVEMENT WARRANTS, SERIES 1938 FUND", which fund shall be used for no
other purpose save and except to pay all interest and to provide the
necessary sinking fund '£or said warrants at their maturity, and to pay
attorney's fees in case of default.
Section 10.
That to pay the interest and to create a sinking fund to retire
said warrants at their maturity .and to provide for ten percent (10%)
attorney's fees in event of default, a tax of and at the rate of ----
( ¢) Cents on the One Hundred ($100.00) Dollars valuation of all
taxable property in said City of Lubbock., Te.xas, out of the $2.50 tax-
ing fUnd of said City, is hereby levied for the currect year, 1938; that
during each year thereafter while any of said warrants are outstanding
and unpaid, and at the time other City taxes are levied in each of said
years, there shall be computed and ascertained what rate of ta.x based
upon the latest approved ta.x rolla of said City, will be necessary, re-
quisite and sufficient to tully make, raise and produce in eaCh of said ~
years the amount of principal necessary to be raised for that year plus
the interest maturing in said years upon the amount of this s .eries of
warrants outstanding and unpaid, and to provide 10% attorney's fees in
case of default, and for each of said years there is hereby levied and
ordered to be assessed and collected in due time, form and manner, a tax
at the rate necessary, Which shall be placed in a separate fund for this
series of warrants, known and designated as "Street Improvement Warrants,
Series 1938 Fundn, and the City Treasurer shall not honor any draft upon
said fUnd or pay out any of the same except in the payment of interest
on said warrants or for retiring the same, or for attorne~ fees as
provided above.
Section 11.
This Ordinance shall take effect from and after the date of its
final ~saage and it is so ordered.
Passed and Approved first reading this the 24th day of June, 1938.
Passed and Approved second and final reading, this the 27th
llai~exas day of Junt, 1938.
ock,