HomeMy WebLinkAboutOrdinance - 9491-1991 - Issuance Of Combination Tax And Sewer System Subordinate Lien Revenue - 11/14/1991ORDINANCE NO. 9491 _..;;....~---
First Reading
November 14, 1991
Item 1127
Second Reading
November 21, 1991
Item 116
AN ORDINANCE authorizing the issuance of •ciTY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991•; levying an ad valorem
tax upon all taxable property in the City and
pledging the Net Revenues of the Ci ty• s Sewer
System for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters incident
and related to the issuance, sale, security,
payment and delivery of said Certificates,
including the approval and distribution of an
Official Statement pertaining thereto; and
providing ap effective date.
WHEREAS, notice of the City Counci 1' s intention to issue
certificates of obligation in the maximum principal amount of
$1,655,000 for the purpose of paying contractual obligations to
be incurred for (i) constructing improvements and extensions to
the City's Wastewater Treatment System, to wit: replacement of
an existing effluent pipeline and (ii) professional services
rendered in connection therewith, has been duly published in
the Lubbock Avalanche-Journal, a newspaper hereby found and
determined to be of general circulation in the City of Lubbock,
Texas, on October 13, 1991 and October 20, 1991, the date of
the first publication of such notice being not less than
fifteen (15) days prior to the tentative date stated therein
for the passage of the ordinance authorizing the issuance of
such certificates; and
WHEREAS, no petition, protesting the issuance of such
certificates and bearing valid petition signatures of at least
5\ of the qualified voters of the City, has been filed with the
City Secretary, any member of the Council or any other official
of the City on or prior to the date of the passage of this
ordinance; and
WHEREAS, the Council hereby finds and determines that all
of the certificates of obligation described in such notice
should be issued and sold at this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: Authorization-Designation-Principal Amount-
Purpose. Certificates of obligation of the City shall be and
are hereby authorized to be issued in the aggregate principal
amount of $1,655,000 to be designated and bear the title •ciTY
OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE
LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991• (the
•certificates•), for the purpose of paying contractual
obligations to be incurred for (i) constructing improvements
and extensions to the Ci ty• s Wastewater Treatment System, to
wit: replacement of an existing effluent pipeline and (ii)
professional services rendered in connection therewith,
pursuant to authority conferred by and in conformity with the
Constitution and laws of the State of Texas, including
V.T.C.A., Local Government Code, Subchapter c of Chapter 271.
SECTION 2: Fully Registered Obligations -Authorized
Denominations-Stated Maturities-Date. The Certificates are
issuable in fully registered form only; shall be dated
November 15, 1991 (the "Certificate Date•) and shall be in
denominations of $5,000 or any integral multiple thereof and
the Certificates shall become due and payable on February 15 in
each of the years and in principal amounts (the •stated
Maturities•) and bear interest at the per annum rate(s) in
accordance with the following schedule:
Year of Principal Interest
Stated Maturity Amount Rate
1993 80,000 5.50\
1994 80,000 5.50\
1995 80,000 5.50\
1996 80,000 5.50\
1997 80,000 5.50\
1998 80,000 5.50\
1999 80,000 5.50\
2000 80,000 5.50\
2001 80,000 5.50\
2002 85,000 5.50\
2003 85,000 5.50\
2004 85,000 5.50\
2005 85,000 5.50\
2006 85,000 5.50\
2007 85,000 5.50\
2008 85,000 5.50\
2009 85,000 5.50\
2010 85,000 5.50\
2011 85,000 5.50\
2012 85,000 5.50\
The Certificates shall bear interest on the unpaid
principal amount thereof from the date of delivery to the
initial purchasers thereof (which date shall be the
registration date noted on the Initial Certificates in the
•Registration Certificate of Paying Agent/Registrar• to appear
thereon) at the per annum rate(s) shown above in this Section,
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and such interest shall be calculated on the basis of a 360-day
year of twelve 30-day months. Interest on the Certificates
shall be payable on February 15 and August 15 in each year,
commencing August 15, 1992.
SECTION 3: Terms of Payment-Paying Agent/Registrar.
The principal of, premium, if any, and the interest on the
Certificates, due and payable by reason of maturity or
redemption or otherwise, shall be payable only to the
registered owners or holders of the Certificates (hereinafter
called the "Holders") appearing on the registration and
transfer books (the •security Register") maintained by the
Paying Agent/Registrar and the payment thereof shall be in any
coin or currency of the United States of America, which at the
time of payment is legal tender for the payment of public and
private debts, and shall be without exchange or collection
charges to the Holders.
Interest on each Certificate issued and delivered to a
Holder shall accrue from the latest interest payment date that
interest on such Certificate (or its Predecessor Certificate)
has been paid that precedes the registration date appearing on
such Certificate in the "Registration Certificate of Paying
Agent/Registrar• (Section BD hereof), unless the registration
date appearing thereon is an interest payment date for which
interest is being paid, in which case interest on such
Certificate shall accrue from the registration date appearing
thereon and provided further that with respect to the initial
payment of interest on a Certificate, such interest shall
accrue from the date of delivery of the Certificates (or its
Predecessor Certificate) to the initial purchasers thereof.
The selection and appointment of Ameritrust Texas National
Association, Austin, Texas to serve as Paying Agent/Registrar
for the Certificates is hereby approved and confirmed and the
City agrees and covenants to be kept and maintained at the
principal office of the Paying Agent/Registrar books and
records for the registration, payment and transfer of the
Certificates (the •security Register"), all as provided herein,
in accordance with the terms and provisions of a "Paying
Agent/Registrar Agreement• substantially in the form attached
hereto as Exhibit A and such reasonable rules and regulations
as the Paying Agent/Registrar and City may prescribe; and the
Mayor and City Secretary are authorized to execute and deliver
such Agreement in connection with the delivery of the
Certificates. The City covenants to maintain and provide a
Paying Agent/Registrar at all times until the Certificates are
paid and discharged, and any successor Paying Agent/Registrar
shall be a bank, trust company, financial institution or other
entity qualified and authorized to serve in such capacity and
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perform the duties and services of Paying Agent/Registrar.
Upon any change in the Paying Agent/Registrar for the
Certificates, the City agrees to promptly cause a written
notice thereof to be sent to each Holder by United States Mail,
first class postage prepaid, which notice shall also give the
address of the new Paying Agent/Registrar.
Principal of and premium, if · any, on the Certificates
shall be payable at the Stated Maturities or the redemption
thereof only upon presentation and surrender of the
Certificates to the Paying Agent/Registrar at its principal
office. Interest on the Certificates shall be paid by the
Paying Agent/Registrar to the Holders whose name appears in the
Security Register at the close of business on the Record Date
(the last business day of the month next preceding each
interest payment date) and payment of such interest shall be
(i) by check sent United States Mail, first class postage
prepaid, to the address of the Holder recorded in the Security
Register or (ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the Holder. If the date for the payment of the principal of or
interest on the Certificates shall be a Saturday, Sunday, a
legal holiday, or a day when banking institutions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day when banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
In the event of a nonpayment of interest on a scheduled
payment date, and for thirty (30) days thereafter, a new record
date for such interest payment (a "Special Record Date•) will
be established by the Paying Agent/ Registrar, if and when
funds for the payment of such interest have been received from
the City. Notice of the Special Record Date and of the
scheduled payment date of the past due interest (which shall be
15 days after the Special Record Date) shall be sent at least
five (5) business days prior to the Special Record Date by
United States Mail, first class postage prepaid, to the address
of each Holder appearing on the Security Register at the close
of business on the last business next preceding the date of
mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption. The
Certificates having Stated Maturities on and after February 15,
2003, shall be subject to redemption prior to maturity, at the
option of the City, in whole or in part, and, if in part, in
inverse annual maturity, in principal amounts of $5,000 or any
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integral multiple thereof (and. if within a Stated. Maturity by
lot by the Paying Agent/Registrar), on February 15, 2002 or on
any date thereafter at the redemption price of par plus accrued.
interest to the date of redemption.
(b) Exercise of Redemption Option. At least forty-five
(45) days prior to a redemption date for the Certificates
(unless a shorter notification period shall be satisfactory to
the Paying Agent/Registrar), the City shall notify the Paying
Agent/Registrar of the decision to redeem Certificates, the
principal amount of each Stated Maturity to be redeemed, and.
the date of redemption therefor. The decision of the City to
exercise the right to redeem Certificates shall be entered. in
the minutes of the governing body of the City.
(c) Selection of Certificates for Redemption. If less
than all Outstanding Certificates of the same Stated. Maturity
are to be redeemed. on a redemption date, the Paying
Agent/Registrar shall treat such Certificates as representing
the number of Certificates Outstanding which is obtained. by
dividing the principal amount of such Certificates by $5,000
and shall select the Certificates, or principal amount thereof,
to be redeemed. within such Stated Maturity by lot.
(d.) Notice of Redemption. Not less than thirty (30) days
prior to a redemption date for the Certificates, a notice of
redemption shall be sent by United. States Mail, first class
postage prepaid, in the name of the City and at the City•s
expense, to each Holder of a Certificate to be redeemed in
whole or in part at the address of the Holder appearing on the
Security Register at the close of business on the business day
next preceding the date of mailing such notice, and. any notice
of redemption so mailed. shall be conclusively presumed. to have
been duly given irrespective of whether received. by the Holder.
All notices of redemption shall (i) specify the date of
redemption for the Certificates, (ii) identify the Certificates
to be redeemed. and., in the case of a portion of the principal
amount to be redeemed, the principal amount thereof to be
redeemed., (iii) state the redemption price, (iv) state that the
Certificates, or the portion of the principal amount thereof to
be redeemed., shall become d.ue and payable on the redemption
date specified., and. the interest thereon, or on the portion of
the principal amount thereof to be redeemed., shall cease to
accrue from and. after the redemption date, and. (v) specify that
payment of the redemption price for the Certificates, or the
principal amount thereof to be redeemed., shall be made at the
principal office of the Paying Agent/Registrar only upon
presentation and surrender thereof by the Holder. If a
Certificate is subject by its terms to prior redemption and. has
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been called for redemption and notice of redemption thereof has
been duly given as hereinabove provided, such Certificate (or
the principal amount thereof to be redeemed) shall become due
and payable and interest thereon shall cease to accrue from and
after the redemption date therefor; provided moneys sufficient
for the payment of such Certificate (or of the principal amount
thereof to be redeemed) at the then applicable redemption price
are held for the purpose of such payment by the Paying
Agent/Registrar.
SECTION 5: Registration Transfer -Exchange of
Certificates-Predecessor Certificates. A Security Register
relating to the registration, payment, and transfer or exchange
of the Certificates shall at all times be kept and maintained
by the City at the principal office of the Paying
Agent/Registrar, as provided herein and in accordance with the
provisions of an agreement with the Paying Agent/Registrar and
such rules and regulations as the Paying Agent/Registrar and
the City may prescribe. The Paying Agent/Registrar shall
obtain, record, and maintain in the Security Register the name
and address of each and every owner of the Certificates issued
under and pursuant to the provisions of this Ordinance, or if
appropriate, the nominee thereof. Any Certificate may be
transferred or exchanged for Certificates of other authorized
denominations by the Holder, in person or by his duly
authorized agent, upon surrender of such Certificate to the
Paying Agent/Registrar for cancellation, accompanied by a
written instrument of transfer or request for exchange duly
executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender of any Certificate for transfer at the
principal office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new
Certificates of authorized denominations and having the same
Stated Maturity and of a like aggregate principal amount as the
Certificate or Certificates surrendered for transfer.
At the option of the Holder, Certificates may be exchanged
for other Certificates of authorized denominations and having
the same Stated Maturity, bearing the same rate of interest and
of like aggregate principal amount as the Certificates
surrendered for exchange, upon surrender of the Certificates to
be exchanged at the principal office of the Paying Agent/
Registrar. Whenever any Certificates are surrendered for
exchange, the Paying Agent/Registrar shall register and deliver
new Certificates to the Holder requesting the exchange.
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All Certificates issued in any transfer or exchange of
Certificates shall be delivered to the Holders at the principal
office of the Paying Agent/Registrar or sent by United States
Mail, first class, postage prepaid to the Holders, and, upon
the registration and delivery thereof, the same shall be the
valid obligations of the City, evidencing the same obligation
to pay, and entitled to the same benefits under this Ordinance,
as the Certificates surrendered in such transfer or exchange.
All transfers or exchanges of Certificates pursuant to
this Section shall be made without expense or service charge to
the Holder, except as otherwise herein provided, and except
that the Paying Agent/Registrar shall require payment by the
Holder requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
Certificates cancelled by reason of an exchange or
transfer pursuant to the provisions hereof are hereby defined
to be "Predecessor Certificates,• evidencing all or a portion,
as the case may be, of the same obligation to pay evidenced by
the new Certificate or Certificates registered and delivered in
the exchange or transfer therefor. Additionally, the term
"Predecessor Certificates• shall include any mutilated, lost,
destroyed, or stolen Certificate for which a replacement
Certificate has been issued, registered and delivered in lieu
thereof pursuant to the provisions of Section 28 hereof and
such new replacement Certificate shall be deemed to evidence
the same obligation as the mutilated, lost, destroyed, or
stolen Certificate.
Neither the City nor the Paying Agent/Registrar shall be
required to issue or transfer to an assignee of a Holder any
Certificate called for redemption, in whole or in part, within
45 days of the date fixed for the redemption of such
Certificate; provided, however, such limitation on
transferability shall not be applicable to an exchange by the
Holder of the unredeemed balance of a Certificate called for
redemption in part.
SECTION 6: Execution -Registration. The Certificates
shall be executed on behalf of the City by the Mayor under its
seal reproduced or impressed thereon and countersigned by the
City Secretary. The signature of said officers on the
Certificates may be manual or facsimile. Certificates bearing
the manual or facsimile signatures of individuals who are or
were the proper officers of the City on the Certificate Date
shall be deemed to be duly executed on behalf of the City,
notwithstanding that one or more of the individuals executing
the same shall cease to be such officer at the time of delivery
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of the Certificates to the initial purchaser(s) and with
respect to Certificates delivered in subsequent exchanges and
transfers, all as authorized and provided in the Bond
Procedures Act of 1981, as amended.
No Certificate shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any
purpose, unless there appears on such Certificate either a
certificate of registration substantially in the form provided
in Section 8C, manually executed by the Comptroller of Public
Accounts of the State of Texas, or his duly authorized agent,
or a certificate of registration substantially in the form
provided in Section 80, manually executed by an authorized
officer, employee or representative of the Paying
Agent/Registrar, and either such certificate duly signed upon
any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly certified,
registered and delivered.
SECTION 7: Initial Certificates. For purposes of
approval of the Certificates by the Attorney General and their
registration by the Comptroller of Public Accounts of the State
of Texas and in recognition of the sources of funding for the
loan from the Texas Water Development Board noted in Section 29
hereof, two (2) fully registered Initial Certificates numbered
T-A and T-B in the aggregate principa 1 amounts of $280,000
(Lot A) and $1,375,000 (Lot B) with the stated maturities
appearing in Exhibit B attached hereto and registered in the
name of the Texas Water·oevelopment Board (the •Board•) shall
be prepared in typewritten form and escrowed with the Paying
Agent/Registrar following approval by the Attorney General and
registration by the Comptroller of Public Accounts and pending
delivery of the Certificates to the Board. In recognition of
the requirement of the Board that funds be first advanced from
Lot A and then Lot B in ascending order of maturity when and as
costs and expenses are incurred by the City for the project and
in incremental amounts calculated to the nearest $5,000, the
aggregate principal amount of the Initial Certificate number
T-A shall first be delivered before any funds are advanced from
Initial Certificate number T-B. With each advancement of
funds, the appropriate Initial Certificate shall be modified by
the Paying Agent/Registrar noting on the •oelivery Ledger•
attached thereto (1) the date of the advance of funds, (2) the
amount of the funds advanced and (3) the principal amount
remaining to be advanced following such advancement of funds
then being made and delivering to the Board one or more
definitive Certificates equivalent to the aggregate amount of
funds advanced by the Board, such definitive Certificates to be
in the denomination of $5,000 or any integral multiple thereof
within a maturity and in order of the Stated Maturities for
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Lot A and then Lot B in accordance with Exhibit B attached
hereto, and completing the •Registration Certificate of Paying
Agent/Registrar• appearing on such definitive Certificates
delivered to the Board. Following the final advancement of
funds by the Board involving Initial Certificate T-A and T-B,
the appropriate Initial Certificate shall be cancelled by the
Paying Agent/Registrar and •retained in the records of the
Paying Agent/Registrar.
SECTION 8: Forms. A. Forms Generally. The
Certificates, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Registration
Certificate of Paying Agent/Registrar, and the form of
Assignment to be printed on each of the Certificates, shall be
substantially in the forms set forth in this Section with such
appropriate insertions, omissions, substitutions, and other
variations as are permitted or required by this Ordinance and
may have such letters, numbers, or other marks of
identification (including identifying numbers and letters of
the Committee on Uniform Securities Identification Procedures
of the American Bankers Association) and such legends and
endorsements (including insurance legends in the event the
Certificates, or any maturities thereof, are purchased with
insurance and any reproduction of an opinion of counsel)
thereon as may, consistently herewith, be established by the
City or determined by the officers executing such Certificates
as evidenced by their execution. Any portion of the text of
any Certificates may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Certificate.
The definitive Certificates shall be printed,
lithographed, or engraved or produced in any other similar
manner, all as determined by the officers executing such
Certificates as evidenced by their execution, but the Initial
Certificate(s) submitted to the Attorney General of Texas may
be typewritten or photocopied or otherwise reproduced.
B. Form of Certificates.
REGISTERED
NO.
Certificate
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS,
COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE
CERTIFICATE OF OBLIGATION
SERIES 1991
Date: Interest Rate: Stated Maturity:
November 15, 1991 \
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REGISTERED $ ___ _
CUSIP NO:
Registered Owner:
Principal Amount: DOLLARS
The City of Lubbock (hereinafter referred to as the
"City"), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the Registered Owner named above, or the registered assigns
thereof, the Principal Amount stated above, on the Stated
Maturity date specified above (or so much thereof as shall not
have been paid upon prior redemption) and to pay interest on
the unpaid Principal Amount hereof (computed on the basis of a
360-day year of twelve 30-day months) from the interest payment
date next preceding the "Registration Date• of this Certificate
appearing below (unless this Certificate bears a "Registration
Date• as of an interest payment date, in which case interest
shall accrue from such date, or unless the Registration Date of
this Certificate is the delivery date of this Certificate (or
its Predecessor Certificate) to the initial purchasers, in
which case interest shall accrue from such date of delivery to
the initial purchasers at the per annum rate of interest
specified above; such interest being payable on February 15 and
August 15 of each year, commencing August 15, 1992. Principal
of this Certificate is payable at its Stated Maturity or
redemption to the registered owner hereof, upon presentation
and surrender, at the principal office of the Paying
Agent/Registrar executing the registration certificate
appearing hereon, or its successor. Interest is payable to the
registered owner of this Certificate (or one or more
Predecessor Certificates, as defined in the Ordinance
hereinafter referenced) whose name appears on the •securi ty
Register• maintained by the Paying Agent/Registrar at the close
of business on the "Record Date•, which is the last business
day of the month next preceding each interest payment date and
interest shall be paid by the Paying Agent/Registrar by check
sent United States Mail, first class postage prepaid, to the
address of the registered . owner recorded in the Security
Register on the Record Date or by such other method, acceptable
to the Paying Agent/Registrar, requested by, and at the risk
and expense of, the registered owner. If the date for the
payment of the principal of or interest on the Certificates
shall be a Saturday, Sunday, a legal holiday, or a day when
banking institutions in the City where the Paying
Agent/Registrar is located are authorized by law or executive
order to close, then the date for such payment shall be the
next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when banking institutions are authorized to
close; and payment on such date shall have the same force and
effect as if made on the original date payment was due. All
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payments of principal of, premium, if any, and interest on this
Certificate shall be without exchange or collection charges to
the owner hereof and in any coin or currency of the United
States of America which at the time of payment is legal tender
for the payment of public and private debts.
This Certificate is one of the series specified in its
title issued in the aggregate principal amount of $1,655,000
(herein referred to as the •certificates•) for the purpose of
paying contractual obligations to be incurred for (i)
constructing improvements and extensions to the City's
Wastewater Treatment System, to wit: replacement of an existing
effluent pipeline and (ii) professional services rendered in
connection therewith, under and in strict conformity with the
Constitution and laws of the State of Texas, particularly
V.T.C.A., Local Government Code, Subchapter c of Chapter 271,
and pursuant to an Ordinance adopted by the governing body of
the City (herein referred to as the •ordinance•).
The Certificates maturing on and after February 15, 2003,
may be redeemed prior to their Stated Maturities, at the option
of the City, in whole or in part, and, if in part, in inverse
annual maturity, in principal amounts of $5,000 or any integral
multiple thereof (and if within a Stated Maturity by lot by the
Paying Agent/Registrar), on February 15, 2002, or on any date
thereafter, at the redemption price of par, together with
accrued interest to the date of redemption and upon 30 days
prior written notice being sent by United States Mail, first
class postage prepaid, to the registered owners of the
Certificates to be redeemed, and subject to the terms and
prov1s1ons relating thereto contained in the Ordinance. If
this Certificate (or any portion of the principal sum hereof)
shall have been duly called for redemption and notice of such
redemption duly given, then upon such redemption date this
Certificate (or the portion of the principal sum hereof to be
redeemed) shall become due and payable, and interest thereon
shall cease to accrue from and after the redemption date
therefor, provided moneys for the payment of the redemption
price and the interest on the principal amount to be redeemed
to the date of redemption are held for the purpose of such
payment by the Paying Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Certificate, payment of the redemption price of
such principal amount shall be made to the registered owner
only upon presentation and surrender of this Certificate to the
Paying Agent/Registrar at its principal office and there shall
be issued, without charge therefor to the registered owner
hereof, a new Certificate or Certificates of like maturity and
interest rate in any authorized denominations provided by the
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Ordinance for the then unredeemed balance of the principal sum
hereof. If this Certificate is selected for redemption, in
whole or in part, the City and the Paying Agent/Registrar shall
not be required to transfer this Certificate to an assignee of
the registered owner within 45 days of the redemption date
therefor; provided, however, such limitation on transferability
shall not be applicable to an exchange by the registered owner
of the unredeemed balance hereof in the event of its redemption
in part.
The Certificates are payable from the proceeds of an ad
valorem tax levied, within the limitations prescribed by law,
upon all taxable property in the City and, together with the
Previously Issued Obligations (as defined in the Ordinance),
are additionally payable from and secured by a lien on and
pledge of the Net Revenues (as defined in the Ordinance) of the
City•s Sewer System (the "System"), such lien and pledge,
however, being junior and subordinate to the lien on and pledge
of the Net Revenues of the System securing the payment of
"Prior Lien Obligations• (as defined in the Ordinance)
hereafter issued by the City. In the Ordinance, the City
reserves and retains the right to issue Prior Lien Obligations
while the Certificates are outstanding without limitation as to
principal amount but subject to any terms, conditions or
restrictions as may be applicable thereto under law or
otherwise, as well as the right to issue Additional Obligations
(as defined in the Ordinance).
Reference is hereby made to the Ordinance, a copy of which
is on file in the principal office of the Paying
Agent/Registrar, and to all the provisions of which the Holder
hereof by the acceptance hereof hereby assents, for definitions
of terms; the description of and the nature and extent of the
tax levied for the payment of the Certificates; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on the Certificates;
the nature and extent and manner of enforcement of the pledge;
the terms and conditions relating to the transfer of this
Certificate; the conditions upon which the Ordinance may be
amended or supplemented with or without the consent of the
Holders of the Certificates; the rights, duties, and
obligations of the City and the Paying Agent/Registrar; the
terms and provisions upon which the tax levy and the liens,
pledges, charges and covenants made therein may be discharged
at or prior to the maturity of this Certificate, and this
Certificate deemed to be no longer Outstanding thereunder; and
for the other terms and provisions contained therein.
Capitalized terms used herein have the meanings assigned in the
Ordinance.
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This Certificate, subject to certain limitations contained
in the Ordinance, may be transferred on the Security Register
only upon its presentation and surrender at the principal
office of the Paying Agent/Registrar, with the Assignment
hereon duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Paying Agent/Registrar
duly executed by, the registered owner hereof, or his duly
authorized agent. When a transfer on the Security Register
occurs, one or more fully registered Certificates of authorized
denominations and of the same aggregate principal amount will
be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of
either, may treat the registered owner hereof whose name
appears on the Security Register (i) on the Record Date as the
owner entitled to payment of interest hereon, (ii) on the date
of surrender of this Certificate as the owner entitled to
payment of principal hereof at its Stated Maturity or its
redemption, in whole or in part, and (iii) on any other date as
the owner for all other purposes, and neither the City nor the
Paying Agent/Registrar, or any agent of either, shall be
affected by notice to the contrary. In the event of
nonpayment of interest on a scheduled payment date and for
thirty (30) days thereafter, a new record date for such
interest payment (a •special Record Date•) will be established
by the Paying Agent/Registrar, if and when funds for the
payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment
date of the past due interest (which shall be 15 days after the
Special Record Date) shall be sent at least five (S) business
days prior to the Special Record Date by United States Mail,
first class postage prepaid, to the address of each Holder
appearing on the Security Register at the close of business on
the last business day next preceding the date of mailing of
such notice.
It is hereby certified, recited, represented and
covenanted that the City is a body corporate and political
subdivision duly organized and legally existing under and by
virtue of the Constitution and laws of the State of Texas; that
the issuance of the Certificates is duly authorized by law;
that all acts, conditions and things required to exist and be
done precedent to and in the issuance of the Certificates to
render the same lawful and valid obligations of the City have
been properly done, have happened and have been performed in
regular and due time, form and manner as required by the
Constitution and laws of the State of Texas, and the Ordinance;
that the Certificates do not exceed any constitutional or
statutory limitation; and that due provision has been made for
the payment of the principal of and interest on the
Certificates by the levy of a tax and a pledge of the Net
Revenues of the System as aforestated. In case any provision
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1179£
in this Certificate or any application thereof shall be
invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions and applications
shall not in any way be affected or impaired thereby. The
terms and provisions of this Certificate and the Ordinance
shall be construed in accordance with and shall be governed by
the laws of the State of Texas.
IN WITNESS WHEREOF, the City Counci 1 of the City has
caused this Certificate to be duly executed under the official
seal of the City as of the Certificate Date.
CITY OF LUBBOCK, TEXAS
COUNTERSIGNED: Mayor
City Secretary
(SEAL)
c. * Form of Registration Certificate of Comptroller of
Public Accounts to Appear on Initial Certificate(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
s s s s REGISTER NO.
I HEREBY CERTIFY that this Certificate has been examined,
certified as to validity and approved by the Attorney General
of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this
Comptroller of Public Accounts
(SEAL) of the State of Texas
*NOTE TO PRINTER: Do not print on definitive Certificates
-14-6679E
D. Form of Certificate of Paying Agent/Registrar to
Appear on definitive Certificates.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate has been duly issued and registered under
the provisions of the within-mentioned Ordinance; the
certificate or certificates of the above entitled and
designated series originally delivered having been approved by
the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of
the Paying Agent/Registrar.
AMERITRUST TEXAS NATIONAL
ASSOCIATION
Austin, Texas
as Paying Agent/Registrar
Registration Date:
By ~~--~~------------------Authorized Signature
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns,
and transfers unto (Print or typewrite name, address, and zip
code of transferee:) ......................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• . • • • • • • • . . . (Social Security or other identifying number:
••••••••••....••..••••••••••• ) the within Certificate and all
rights thereunder, and hereby irrevocably constitutes and
appoints ..................................................... .
attorney to transfer the within Certificate on the books kept
for registration thereof, with full power of substitution in
the premises.
DATED: . . . . . . . . . . . . . . . . . .
Signature guaranteed:
. . . . . . . . . . . . . . . . . . . . . . . .
167,£
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NOTICE: The signature on this
assignment must correspond with the
name of the registered owner as it
appears on the face of the within
Certificate in every particular.
-15-
F. The Initial Certificates shall be in the form set
forth in paragraph B of this Section, except that the
form of the fully registered Initial Certificates shall
be modified as follows:
(i) immediately under the name of the certificate the
headings "Interest Rate • and •stated
Maturity • shall both be omitted;
(ii) paragraph one shall read as follows:
Registered OWner:
Principal Amount: Dollars
The City of Lubbock (hereinafter referred to as the
"City•), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the Registered Owner named above, or the registered assigns
thereof, the Principal Amount hereinabove stated, on
February 15 in each of the years and in principal installments
in accordance with the following schedule:
PRINCIPAL
INSTALLMENTS
(Information to be inserted from
schedule in Exhibit B hereof).
INTEREST
RATE
(or so much principal thereof as shall not have been prepaid
prior to maturity) and to pay interest on the unpaid Principal
Amount hereof computed on the basis of a 360-day year of twelve
30-day months at the per annum rates of interest specified
above; such interest to accrue on such principal installment
amounts when and as such amounts 1 or portions thereof, are
advanced to the City by the initial purchasers and to be
payable on February 15 and August 15 of each year 1 commencing
August 15, 1992. Principal installments of this Certificate
are payable in the year of maturity or on a prepayment date to
the registered owner hereof, upon its presentation and
surrender at the principal office of Ameritrust Texas National
Association, Austin, Texas (the "Paying Agent/Registrar•).
Interest is payable to the registered owner-of this Certificate
whose name appears on the •security Register• maintained by the
Paying Agent/Registrar at the close of business on the "Record
Date•, which is the last business day of the month next
preceding each interest payment date hereof and interest shall
be paid by the Paying Agent/Registrar by check sent United
-16-
6' 7.£
States Mail, first class postage prepaid, to the address of the
registered owner recorded in the Security Register or by such
other method, acceptable to the Paying Agent/ Registrar,
requested by, and at the risk and expense of, the registered
owner. If the date for the payment of the principal of or
interest on the Certificates shall be a Saturday, Sunday, a
legal holiday, or a day when banking institutions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day when banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due. All payments of principal of, premium, if any, and
interest on this Certificate shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
G. Form of Delivery Ledger to aEEear on Initial Certificates
only.
DELIVERY LEDGER
Principal
Amount
Date of Amount of Remaining
Advancement Funds to be Signature of
of Funds Advanced Advanced Bank Officer
SECTION 9: Definitions. That for purposes of this
Ordinance and for clarity with respect to the issuance of the
Certificates, and the levy of taxes and appropriation of Net
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6179E
Revenues therefor, the following words or terms, whenever the
same appear herein without qualifying language, are defined to
mean as follows:
6679£
(a) The term "Additional Certificates" shall
mean combination tax and revenue certificates of
obligation hereafter issued under and pursuant to the
provisions of V. T .C.A., Local Government Code,
Subchapter C of Chapter 271, or similar law hereafter
enacted and payable from ad valorem taxes and
additionally payable from and secured by a lien on
and pledge of the Net Revenues of the System on a
parity with and of equal rank and dignity with the
lien and pledge securing the payment of the
Certificates.
(b) The term "Certificates" shall mean
$1,655,000 "CITY OF LUBBOCK, TEXAS, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1991" authorized
by this Ordinance.
(c) The term "Certificate Fund" shall mean the
special Fund created and established under the
provisions of Section 10 of this Ordinance.
(d) The term "Collection Date" shall mean, when
reference is being made to the levy and collection of
annual ad valorem taxes, the date annual ad valorem
taxes levied each year by the City become delinquent.
(e) The term "Fiscal Year" shall mean the annual
financial accounting period used with respect to the
operations of the System now ending on September 30th
of each year; provided, however, the City Council may
change, by ordinance duly passed, such annual
financial accounting period to end on another date if
such change is found and determined to be necessary
for budgetary or other fiscal purposes.
(f) The term "Government Obligations" shall mean
direct obligations of the United States of America,
including obligations the principal of and interest
on which are unconditionally guaranteed by the United
States of America, and the United States Treasury
obligations such as its State and Local Government
Series in book-entry form.
(g) The term •Gross Revenues• shall mean, with
respect to any period, all income, revenues and
receipts received from the operation and ownership of
the System.
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6679£
(h) The term "Net Revenues• shall mean the Gross
Revenues of the System, with respect to any period,
after deducting the System•s Operating and
Maintenance Expenses during such period.
( i) The term "Operating and Maintenance
Expenses• shall mean all reasonable and necessary
expenses directly related and attributable to the
operation and maintenance of the System, including,
but not limited to, the cost of insurance, the
purchase and carrying of stores, materials, and
supplies, the payment of salaries and labor, and
other expenses reasonably and properly charged, under
generally accepted accounting principles, to the
operation and maintenance of the System.
Depreciation charges on equipment, machinery, plants
and other facilities comprising the System and
expenditures classed under generally accepted
accounting principles as capital expenditures shall
not be considered as "Operating and Maintenance
Expenses• for purposes of determining "Net Revenues•.
(j) The term "Outstanding" when used in this
Ordinance with respect to Certificates means, as of
the date of determination, all Certificates
theretofore issued and delivered under this
Ordinance, except:
(1) those Certificates cancelled by
the Paying Agent/Registrar or delivered to
the Paying Agent/Registrar for cancellation;
(2) those Certificates deemed to be
duly paid by the City in accordance with the
provisions of Section 23 hereof by the
irrevocable deposit with the Paying
Agent/Registrar, or an authorized escrow
agent, of money or Government Securities, or
both, in the amount necessary to fully pay
the principal of, premium, if any, and
interest thereon to maturity or redemption,
as the case may be, provided that, if such
Certificates are to be redeemed, notice of
redemption thereof shall have been duly
given pursuant to this Ordinance or
irrevocably provided to be given to the
satisfaction of the Paying Agent/Registrar
or waived; and
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(3) those Certificates that have been
mutilated, destroyed, lost, or stolen and
replacement Certificates have been
registered and delivered in lieu thereof as
provided in Section 27 hereof.
(k) The term •previously Issued Obligations•
shall mean (i) the outstanding •city of Lubbock,
Texas, Combination Tax and Sewer System Subordinate
Lien Revenue Refunding Bonds, Series 1988,• and (ii)
the outstanding •city of Lubbock, Texas, Combination
Tax and Sewer System Subordinate Lien Revenue
Certificates of Obligation, Series 1988.•
(1) The term •prior Lien Obligations• shall mean
all bonds or other similar obligations hereafter
issued that are payable in whole or in part from and
secured by a lien on and pledge of the Net Revenues
of the System and such lien and pledge securing the
payment thereof is prior and superior in claim, rank
and dignity to the lien and pledge of the Net
Revenues securing the payment of the Certificates.
(m) The term •similarly Secured Obligations•
shall mean collectively the Certificates, the
Previously Issued Obligations, and any Additional
Certificates.
(n) The term •system• shall mean the City's
sanitary sewer system, being all sanitary sewage
collection system, ground storage facilities,
effluent disposal and treatment facilities and/or
other works and equipment.
SECTION 10: Certificate Fund. That, for the purpose of
paying the interest on and to provide a sinking fund for the
payment and retirement of the Certificates, there shall be and
is hereby created a special Fund to be designated •sPECIAL 1991
CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION FUND•, which
Fund shall be kept and maintained at the City's depository
bank, and moneys deposited in said Fund shall be used for no
other purpose. Proper officers of the City are hereby
authorized and directed to cause to be transferred to the
Paying Agent for the Certificates, from funds on deposit in the
Certificate Fund, amounts sufficient to fully pay and discharge
promptly each installment of interest and principal of the
Certificates as the same accrues or matures or comes due by
reason of redemption prior to maturity; such transfers of funds
to be made in such manner as will cause immediately available
-20-
i i 19 E
funds to be deposited with the Paying Agent for the
Certificates at the close of business on the last business day
next preceding each interest and/or principal payment date for
the Certificates.
Pending the transfer of funds to the Paying
Agent/Registrar 1 money in the Certificate Fund may 1 at the
option of the City, be invested in obligations identified in,
and in accordance with the provisions of the •Public Funds
Investment Act of 1987• relating to the investment of •bond
proceeds•; provided that all such investments shall be made in
such a manner that the money required to be expended from said
Fund will be available at the proper time or times. All
interest and income derived from deposits and investments in
said Certificate Fund shall be credited to, and any losses
debited to, the said Certificate Fund. All such investments
shall be sold promptly when necessary to prevent any default in
connection with the Certificates.
SECTION 11: Tax Levy. That to provide for the payment
of the •Debt Service Requirements• on the Certificates being
(i) the interest on said Certificates and (ii) a sinking fund
for their redemption at maturity or a sinking fund of 2\
(whichever amount shall be the greater), there shall be and
there is hereby levied for the current year and each succeeding
year thereafter while said Certificates or any interest thereon
shall remain Outstanding, a sufficient tax on each one hundred
dollars • valuation of taxable property in said City, adequate
to pay such Debt Service Requir.ements, full allowance being
made for delinquencies and costs of collection; said tax shall
be assessed and collected each year and applied to the payment
of the Debt Service Requirements, and the same shall not be
diverted to any other purpose. The taxes so levied and
collected shall be deposited into the Certificate Fund. This
governing body hereby declares its purpose and intent to
provide and levy a tax legally and fully sufficient to pay the
said Debt Service Requirements, it having been determined that
the existing and available taxing authority of the City for
such purpose is adequate to permit a legally sufficient tax in
consideration of all other outstanding indebtedness.
The amount of taxes to be provided annually for the
payment of the principal of and interest on the Certificates
herein authorized to be issued shall be determined and
accomplished in the following manner:
(a) Prior to the date the City Council establishes the
annual tax rate and passes an ordinance levying ad valorem
taxes each year, the City Council shall determine:
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(1) The amount on deposit in the Certificate
Fund after (a) deducting therefrom the total amount
of Debt Service Requirements to become due on
Certificates prior to the Collection Date for the
ad valorem taxes to be levied and (b) adding thereto
the amount of Net Revenues of the System appropriated
and allocated to pay such Debt Service Requirements
prior to the Collection Date for the ad valorem taxes
to be levied.
(2) The amount of Net Revenues if any,
appropriated and to be set aside for the payment of
the Debt Service Requirements on the Certificates
between the Collection Date for the taxes then to be
levied and the Collection Date for the taxes to be
levied during the next succeeding calendar year.
(3) The amount of Debt Service Requirements to
become due and payable on the Certificates between
the Collection Date for the taxes then to be levied
and the Collection Date for the taxes to be levied
during the next succeeding calendar year.
(b) The amount of taxes to be levied annually each year to
pay the Debt Service Requirements on the Certificates shall be
the amount established in paragraph (3) above less the sum
total of the amounts established in paragraphs (1)and (2),
after taking into consideration delinquencies and costs of
collecting such annual taxes.
SECTION 12: Pledge of Revenues. The City hereby
covenants and agrees that, subject only to a prior lien on and
pledge of the Net Revenues of the System for the payment and
security of Prior Lien Obligations, the Net Revenues of the
System, with the exception of those in excess of the amounts
required to be deposited to the Certificate Fund as hereafter
provided, are hereby irrevocably pledged, equally and ratably,
to the payment of the principal of and interest on the
Similarly Secured Obligations as herein provided, and the
pledge of the Net Revenues of the System herein made for the
payment of the Certificates shall constitute a lien on the Net
Revenues of the System in accordance with the terms and
provisions hereof and be valid and binding without further
action by the City and without any filing or recording except
for the filing of this Ordinance in the records of the City.
SECTION 13: System Fund. The City hereby reaffirms its
covenant and agreement made in connection with the issuance of
the Previously Issued Obligations that all Gross Revenues
(excluding earnings from the investment of money held in any
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''79E
special funds or accounts created for the payment and security
of Prior Lien Obligations) shall be deposited from day to day
as collected into a "City of Lubbock, Texas, Sewer System
Operating Fund" (hereinafter called "System Fund") which Fund
shall be kept and maintained at an official depository bank of
the City. All moneys deposited in the System Fund shall be
pledged and appropriated to the extent required for the
following purposes and in the order of priority shown, to wit:
First: To the payment of all necessary and
reasonable Operating and Maintenance Expenses of the
System as defined herein or required by statute to be
a first charge on and claim against the Gross
Revenues.
Second: To the payment of the amounts required
to be deposited in the special Funds created and
established for the payment, security and benefit of
Prior Lien Obligations in accordance with the terms
and provisions of the ordinances authorizing the
issuance of Prior Lien Obligations; and
Third: Equally and ratably to the payment of
the amounts required to be deposited in the special
funds and accounts created and established for the
payment of the Similarly Secured Obligations.
Any Net Revenues rema1n1ng in the System Fund after
satisfying the foregoing payments, or making adequate and
sufficient provision for the payment thereof, may be
appropriated and used for any other City purpose now or
hereafter permitted by law.
SECTION 14: Deposits to Certificate Fund. The City
hereby covenants and agrees to cause to be deposited in the
Certificate Fund prior to each interest and principal payment
date from the Net Revenues of the System, after deduction of
all payments required to be made to special Funds or accounts
created for the payment and security of the Prior Lien
Obligations, an amount equal to one hundred per centum (100\)
of the amount required to fully pay the accrued interest and
principal of the Certificates then due and payable by reason of
maturity or redemption prior to maturity, such deposits to pay
accrued interest and principal on the Certificates to be made
in substantially equal monthly installments on or before the
last business day of each month beginning the month the
Certificates are delivered to the initial purchaser.
The monthly deposits to the Certificate Fund, as
hereinabove provided, shall be made until such time as such
Fund contains an amount equal to pay the principal of and
interest on the Certificates to maturity. Ad valorem taxes
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6679£
levied, collected and deposited in the Certificate Fund for and
on behalf of the Certificates may be taken into consideration
and reduce the amount of the monthly deposits otherwise
required to be deposited in the Certificate Fund from the Net
Revenues of the System. In addition, any proceeds of sale of
the Certificates in excess of the amount required to pay the
contractual obligations to be incurred (including change orders
to a construction contract) shall be deposited in the
Certificate Fund, which amount shall reduce the sums otherwise
required to be deposited in said Fund from ad valorem taxes and
the Net Revenues of the System.
SECTION 15: Security of Funds. All moneys on deposit in
the Funds for which this Ordinance makes provision (except any
portion thereof as may be at any time properly invested) shall
be secured in the manner and to the fullest extent required by
the laws of Texas for the security of public funds, and moneys
on deposit in such Funds shall be used only for the purposes
permitted by this Ordinance.
SECTION 16: Maintenance of System Insurance. While
the Certificates remain Outstanding, the City covenants and
agrees to maintain and operate the System with all possible
efficiency and to maintain casualty and other insurance on the
properties of the System and its operations of a kind and in
such amounts customarily carried by municipal corporations in
the State of Texas engaged in a similar type business; and that
it will faithfully and punctually perform all duties with
reference to the System required by the Constitution and laws
of the State of Texas.
SECTION 17: Rates and Charges. The City hereby
covenants and agrees that rates and charges for services
provided by the System will be established and maintained, on
the basis of all available information and experience and with
due allowance for contingencies, that are reasonably expected
to provide Gross Revenues to pay:
6679£
(a) Operating and Maintenance Expenses of the
System;
(b) the interest on and principal of Prior Lien
Obligations and the amounts required to be deposited
into any special Funds created and established for
the payment and security of the Prior Lien
Obligations;
(c) the amounts required to be deposited in the
special Funds or Accounts created for the payment of
the Similarly Secured Obligations;
-24-
(d)
payable
secured
thereof.
any
from
by a
other
the
lien
legally incurred indebtedness
revenues of the System and/or
on the System or the revenues
SECTION 18: Records and Accounts -Annual Audit. The
City further covenants and agrees that while any Certificates
remain Outstanding, it will keep and maintain accurate and
complete records and accounts pertaining to the ownership,
operation and maintenance of the System. The Holders of the
Certificates or any duly authorized agent or agents of such
Holders shall have the right to inspect the System and all
properties comprising the same. The City further agrees that
following the close of each Fiscal Year, it will cause an audit
of such books and accounts to be made by an independent firm of
Certified Public Accountants. Copies of each annual audit
shall be furnished to the Executive Director of the Municipal
Advisory Council of Texas at his office in Austin, Texas and to
the initial purchaser of the Certificates and any subsequent
Holder of 10\ or more in principal amount of the Certificates
Outstanding.
SECTION 19: Remedies in Event of Default. In addition
to all the rights and remedies provided by the laws of the
State of Texas, the City covenants and agrees particularly that
in the event the City (a) defaults in the payments to be made
to the Certificate Fund, or (b) defaults in the observance or
performance of any other of the covenants, conditions or
obligations set forth in this Ordinance, the owner or owners of
any of the Certificates shall be entitled to a writ of mandamus
issued by a court of proper jurisdiction compelling and
requiring the governing body of the City and other officers of
the City to observe and perform any covenant, condition or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or power,
or shall be construed to be a waiver of any such default or
acquiescense therein, and every such right and power may be
exercised from time to time and as often as may be deemed
expedient. The specific remedies herein provided shall be
cumulative of all other existing remedies and the specification
of such remedies shall not be deemed to be exclusive.
SECTION 20: Special Covenants. The City hereby further
covenants as follows:
6679E
(a) It has the lawful power to pledge the Net
Revenues of the System supporting this issue of
Certificates and has lawfully exercised said powers
-25-
under the Constitution and laws of the State of
Texas, including said power existing under v. T .C.A.,
Local Governmental Code, Subchapter C of Chapter 271.
(b) Other than for the payment
Certificates, the Net Revenues of the System
in any manner been pledged to the payment of
or obligation of the City or of the System.
of the
have not
any debt
SECTION 21: Issuance of Prior Lien Obligations and
Additional Certificates. The City hereby expressly reserves
the right to hereafter issue Prior Lien Obligations, without
limitation as to principal amount or any other limitation or
restriction.
In addition, the City reserves the right to issue
Additional Certificates, without limitation or any restriction
or condition being applicable to their issuance under the terms
of this Ordinance, payable from and secured by a lien on and
pledge of the Net Revenues of the System of equal rank and
dignity, and on a parity in all respects, with the lien thereon
and pledge thereof securing the payment of the Certificates.
SECTION 22: Subordinate to Prior Lien Obligations
Covenants and Agreements. It is the intention of this
governing body and accordingly hereby recognized and stipulated
that the provisions, agreements and covenants contained herein
bearing upon the management and operations of the System and
the administering and application of revenues derived from the
operation thereof, shall to the extent possible be harmonized
with like provisions, agreements and covenants contained in
ordinances authorizing the issuance of Prior Lien Obligations,
and to the extent of any irreconciable conflict between the
provisions contained herein and in ordinances authorizing the
issuance of Prior Lien Obligations, the provisions, agreements
and covenants contained therein shall prevail to the extent of
such conflict and be applicable to this Ordinance but in all
respects subject to the priority of rights and benefits, if
any, conferred thereby to the holders or owners of the Prior
Lien Obligations. Notwithstanding the above, any change or
modification affecting the application of revenues derived from
the operation of the System shall not impair the obligation of
contract with respect to the pledge of revenues herein made for
the payment and security of the Certificates.
SECTION 23: Satisfaction of Obligations of City. If the
City shall pay or cause to be paid, or there shall otherwise be
paid to the Holders, the principal of, premium, if any, and
interest on the Certificates, at the times and in the manner
stipulated in this Ordinance, then the pledge of taxes levied
-26-''79E
and the lien on and pledge of the Net Revenues of the System
under this Ordinance and all covenants, agreements, and other
obligations of the City to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
Certificates shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section
when (i) money sufficient to pay in full such Certificates or
the principal amount(s) thereof at maturity or (if notice of
redemption has been duly given or waived or if irrevocable
arrangements therefor acceptable to the Paying Agent/Registrar
have been made) the redemption date thereof, together with all
interest due thereon, shall have been irrevocably deposited
with and held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, or (ii) Government Securities shall
have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which
Government Securities have been certified by an independent
accounting firm to mature as to principal and interest in such
amounts and at such times as will insure the availability,
without reinvestment, of sufficient money, together with any
moneys deposited therewith, if any, to pay when due the
principal of and interest on such Certificates, or the
principal amount(s) thereof, on and prior to the Stated
Maturity thereof or (if notice of redemption has been duly
given or waived or if irrevocable arrangements therefor
acceptable to the Paying Agent/Registrar have been made) the
redemption date thereof. The City covenants that no deposit of
moneys or Government Securities will be made under this Section
and no use made of any such deposit which would cause the
Certificates to be treated as •arbitrage bonds• within the
meaning of Section 148 of the Internal Revenue Code of 1986, as
amended, or regulations adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar
and all income from Government Securities held in trust by the
Paying Agent/Registrar, or an authorized escrow agent, pursuant
to this Section which is not required for the payment of the
Certificates, or any principal amount(s) thereof, or interest
thereon with respect to which such moneys have been so
deposited shall be remitted to the City or deposited as
directed by the City. Furthermore, any money held by the
Paying Agent/Registrar for the payment of the principal of and
interest on the Certificates and remaining unclaimed for a
period of four (4) years after the maturity, or applicable
redemption date, of the Certificates such moneys were deposited
and are held in trust to pay shall upon the request of the City
be remitted to the City against a written receipt therefor.
Notwithstanding the above and foregoing, any remittance of
funds from the Paying Agent/Registrar to the City shall be
subject to any applicable unclaimed property laws of the State
of Texas.
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SECTION 24: Ordinance a Contract Amendments. This
Ordinance shall constitute a contract with the Holders from
time to time, be binding on the City, and shall not be amended
or repealed by the City so long as any Certificate remains
Outstanding except as permitted in this Section. The City,
may, without the consent of or notice to any Holders of the
Certificates, from time to time and at any time, amend this
Ordinance in any manner not detrimental to the interests of the
Holders of the Certificates, including the curing of any
ambiguity, inconsistency, or formal defect or omission herein.
In addition, the City may, with the written consent of Holders
of the Certificates holding a majority in aggregate principal
amount of the Certificat-es then Outstanding affected thereby,
amend, add to, or rescind any of the provisions of this
Ordinance; provided that, without the consent of all Holders of
Outstanding Certificates, no such amendment, addition, or
rescission shall (1) extend the time or times of payment of the
principal of, premium, if any, and interest on the
Certificates, reduce the principal amount thereof, the
redemption price, or the rate of interest thereon, or in any
other way modify the terms of payment of the principal of,
premium, if any, or interest on the Certificates, (2) give any
preference to any Certificate over any other Certificate, or
(3) reduce the aggregate principal amount of Certificates
required to be held by Holders for consent to any such
amendment, addition, or rescission.
SECTION 25: Notices to Holders -Waivers. Wherever this
Ordinance provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States
Mail, first class postage prepaid, to the address of each
Holder appearing in the Security Register at the close of
business on the business day next preceding the mailing of such
notice.
In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holders, nor any defect in any notice so mailed, shall affect
the sufficiency of such notice with respect to all other
Certificates. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder
entitled to receive such notice, either before or after the
event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Paying
Agent/Registrar, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon
such waiver.
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\
SECTION 26: Cancellation. Certificates surrendered for
payment, redemption, transfer, or exchange, if surrendered to
the Paying Agent/Registrar, shall be promptly cancelled by it
and, if surrendered to the City, shall be delivered to the
Paying Agent/Registrar and, if not already cancelled, shall be
promptly cancelled by the Paying Agent/Registrar. The City may
at any time deliver to the Paying Agent/Registrar for
cancellation any Certificates previously certified or
registered and delivered which the City may have acquired in
any manner whatsoever, and all Certificates so delivered shall
be promptly cancelled by the Paying Agent/Registrar. All
cancelled Certificates held by the Paying Agent/Registrar shall
be returned to the City.
SECTION 27: Mutilated, Destroyed, Lost and Stolen Certi-
ficates. In case any Certificate shall be mutilated, or
destroyed, lost or stolen, the Paying Agent/Registrar may
execute and deliver a replacement Certificate of like form and
tenor, and in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for
such mutilated Certificate, or in lieu of and in substitution
for such destroyed, lost or stolen Certificate, only upon the
approval of the City and after (i) the filing by the Holder
thereof with the Paying Agent/Registrar of evidence
satisfactory to the Paying Agent/Registrar of the destruction,
loss or theft of such Certificate, and of the authenticity of
the ownership thereof and (ii) the furnishing to the Paying
Agent/Registrar of indemnification in an amount satisfactory to
hold the City and the Paying Agent/Registrar harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution and delivery of a replacement
Certificate shall be borne by the Holder of the Certificate
mutilated, or destroyed, lost or stolen.
Every replacement Certificate issued pursuant to this
Section shall be a valid and binding obligation, and shall be
entitled to all the benefits of this Ordinance equally and
ratably with all other Outstanding Certificates;
notwithstanding the enforceability of payment by anyone of the
destroyed, lost or stolen Certificates.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated,
destroyed, lost, or stolen Certificates.
SECTION 28: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section 28, the
following terms have the following meanings:
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"Code" means the Internal Revenue Code of 1986,
as amended by all legislation, if any, enacted on or
before the date of delivery of the Certificates to
the initial purchaser(s) thereof.
"Computation Date" has the meaning stated in
Treas. Reg. § 1.148-8T(b)(l).
"Gross Proceeds" has the meaning stated in
Treas. Reg. § 1.148-8T(d).
"Investment" has the meaning stated in Treas.
Reg. § 1.148-8T(e).
"Net Proceeds" of the Certificates means the
proceeds of the Certificates.
"Nonpurpose Investment • means any Investment in
which Gross Proceeds of the Certificates are invested
and which is not acquired to carry out the
governmental purpose of the Certificates.
"Reba table Arbitrage" has the meaning stated in
Treas. Reg. § 1.148-2T.
"Yield of•
(1) any Investment shall be computed
in accordance with Treas. Reg. §1.148-2T,
and
· (2) the Certificates has the meaning
stated in Treas. Reg. § 1.148-3T.
(b) Not to Cause Interest to Become Taxable. The City
shall not use, permit the use of, or omit to use Gross Proceeds
or any other amounts (or any property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with Gross Proceeds) in a manner which,
if made or omitted, respectively, would cause the interest on
any Certificate to become includable in the gross income, as
defined in section 61 of the Code, of the owner thereof for
federal income tax purposes. Without limiting the generality
of the foregoing, unless and until the City shall have received
a written opinion of counsel nationally recognized in the field
of municipal bond law to the effect that failure to comply with
such covenant will not adversely affect the exclusion of
interest on any Certificate from gross income for federal
income tax purposes pursuant to Section 103 of the Code, the
City shall comply with each of the specific covenants in this
Section.
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(c) No Private Use or Private Payments. Proceeds of the
Certificates and the facilities financed with the proceeds of
the Certificates will not be used in a manner that would cause
the Certificates to be "private activity bonds, • as that term
is defined in section 141 of the Code. Except as permitted by
section 141 of the Code and the regulations and rulings
thereunder, the City shall, at all times prior to the last
Stated Maturity of Certificates,
(1) exclusively own, operate, and possess all
property the acquisition, construction, or improvement of
which is to be financed directly or indirectly with Gross
Proceeds of the Certificates and not use or permit the use
of such Gross Proceeds or any property acquired,
constructed, or improved with such Gross Proceeds in any
activity carried on by any person or entity other than a
state or local government, unless such use is solely as a
member of the general public, or
(2) not directly or indirectly impose or accept any
charge or other payment for use of Gross Proceeds of the
Certificates or any property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with such Gross Proceeds, other
than taxes of general application within the City or
interest earned on investments acquired with such Gross
Proceeds pending application for their intended purposes.
(d) No Private Loan. Except to the extent permitted by
section 141 of the Code and the regulations and rulings
thereunder, the City shall not use Gross Proceeds of the
Certificates to make or finance loans to any person or entity
other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be
"loaned" to a person or entity if (1) property acquired,
constructed, or improved with such Gross Proceeds is sold or
leased to such person or entity in a transaction which creates
a debt for federal income tax purposes, (2) capacity in or
service from such property is committed to such person or
entity under a take-or-pay, output, or similar contract or
arrangement, or (3) indirect benefits, or burdens and benefits
of ownership, of such Gross Proceeds or any property acquired,
constructed, or improved with such Gross Proceeds are otherwise
transferred in a transaction which is the economic equivalent
of a loan.
(e) Not to Invest at Higher Yield. Except to the extent
permitted by section 148 of the Code and the regulations and
rulings thereunder, the City shall not, at any time prior to
the final Stated Maturity of the Certificates, directly or
-31-I i 7 t E
indirectly invest Gross Proceeds of the Certificates in any
Investment (or use such Gross Proceeds to replace money so
invested), if as a result of such investment the Yield of all
Investments allocated to such Gross Proceeds whether then held
or previously disposed of, exceeds the Yield of the
Certificates.
(f) Not Federally Guaranteed. Except to the extent
permitted by section 149(b) of the Code and the regulations and
rulings thereunder, the City shall not take or omit to take any
action which would cause the Certificates to be federally
guaranteed within the meaning of Section 149(b) of the Code and
the regulations and rulings thereunder.
(g) Information Report. The City shall timely file with
the Secretary of the Treasury the information required by
section 149(e) of the Code with respect to the Certificates on
such form and in such place as such Secretary may prescribe.
(h) Payment of Rebatable Arbitrage. Except to the extent
otherwise provided in section 148(f) of the Code and the
regulations and rulings thereunder,
(1) The City shall account for all Gross Proceeds of
the Certificates (including all receipts, expenditures,
and investments thereof) on its books of account
separately and apart from all other funds (and receipts,
expenditures, and investments thereof) and shall maintain
all records of such accounting with the official
transcript of the proceedings relating to the issuance of
the Certificates until six years after the final
Computation Date. The City may, however, to the extent
permitted by law, commingle Gross Proceeds of the
Certificates with other money of the City, provided that
the City separately accounts for each receipt and
expenditure of such Gross Proceeds and the obligations
acquired therewith.
(2) Not less frequently than each Computation Date,
the City shall either (i) cause to be calculated by a
nationally recognized accounting or financial advisory
firm or (ii) calculate and cause its calculations to be
verified by a nationally recognized accounting or
financial advisory firm, in either case in accordance with
rules set forth in section 148(f) of the Code and
Treas. Reg. § 1.148-2T and rulings thereunder, the
Rebatable Arbitrage with respect to the Certificates.. The
City shall maintain such calculations with the official
transcript of the proceedings relating to the issuance of
the Certificates until six years after the final
Computation Date.
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(3) As additional consideration for the purchase of
the Certificates by the initial purchasers thereof and the
loan of the money represented thereby, and in order to
induce such purchase by measures designed to result in the
excludability of the interest thereon from the gross
income of the owners thereof for federal income tax
purposes, the City shall pay to the United States the
amount described in paragraph (2) above and the amount
described in paragraph (4) below, at the times, in the
installments, to the place, in the manner, and accompanied
by such forms or other information as is or may be
required by section 148(f) of the Code and
Treas. Reg. §§ 1.148-lT through 1.148-9T and rulings
thereunder.
(4) The City shall exercise reasonable diligence to
assure that no errors are made in the calculations
required by paragraph (2) and, if such error is made, to
discover and promptly to correct such error within a
reasonable amount of time thereafter, including payment to
the United States of any Correction Amount as described in
Treas. Reg. § 1.148-1T(c)(2) and any penalty under Treas.
Reg. § 1.148-1T(c)(3)(ii)(B).
SECTION 29: Sale of the Certificates. The sale of the
Certificates to the Texas Water Development Board (herein
referred to as the "Purchasers" or the "Board") at the price of
par is hereby approved and confirmed. Delivery of the
Certificates to the Purchasers shall occur as soon as possible
upon payment being made therefor in accordance with the terms
of sale.
The Certificates wi 11 be delivered to the Purchasers in
two lots according to the sources of funding for the loan as
set forth in Exhibit B attached hereto. Certificates in Lot A
will first be delivered to the Board, in ascending order of the
Stated Maturities, until the total principal amount of $280,000
in Certificates of Lot A has been delivered. When all
Certificates of Lot A have been delivered, installment
deliveries for Lot B will begin, in ascending order of the
Stated Maturities, until the total principal amount of
$1,375,000 in Certificates of Lot B has been delivered.
SECTION 30: Proceeds of Sale; Construction Fund. The
City hereby creates a construction fund,account in the City's
depository bank, which is known as the "Construction Fund",
into which shall be deposited all proceeds derived from the
sale of the Certificates, all in accordance with Section 32 of
this Ordinance and this Section. To the extent of conflict
between this Section and Section 32, Section 32 controls.
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Moneys on deposit in the Construction Fund shall be
disbursed only for payment of the costs of the project
financed. All expenditures for construction, labor and
materials shall be disbursed only upon receipt of a certificate
of Black & Veatch Engineers, the engineer named in the City's
Application to the Board, or of a substitute engineer
acceptable to the Board, based upon estimates of work and
material furnished as approved by them and submitted to the
City and the Ci ty• s engineer for approval prior to payment.
The City shall keep records of the nature and amount of all
Construction Fund expenditures and make the same available to
the engineers at all reasonable times. Should there be any
balance in the Construction Fund after all such costs of the
Project have been paid, such balance shall be placed in the
Certificate Fund.
Subject to the limitations of the Public Funds Investment
Act of 1987, moneys in the Construction Fund may be invested in
one or more of the following (a) Government Obligations,
(b) certificates of deposit of any bank or trust company which
are fully secured by a pledge of direct obligations of, or
obligations of which the principal and interest are guaranteed
by, the United States of America to the extent such
certificates are not insured, which obligations shall mature on
dates which coincide as closely as practicable to the dates
when money will be needed to pay construction costs as such
dates are estimated in schedules prepared by the engineer and
furnished the City. All earnings realized from these
investments shall be transferred to the Certificate Fund.
SECTION 31: Control and Custody of Certificates. The
Mayor of the City shall be and is hereby authorized to take and
have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas,
including the printing of the Certificates, and shall take and
have charge and control of the Certificates pending the
approval thereof by the Attorney General, the registration
thereof by the Comptroller of Public Accounts and the delivery
thereof to the Purchasers. ·
Furthermore, the Mayor, City Secretary, City Manager, and
Assistant City Manager for Financial Services, any one or more
of said officials, are hereby authorized and directed to
furnish and execute such documents and certifications relating
to the City and the issuance of the Certificates, including a
certification as to facts, estimates, circumstances and
reasonable expectations pertaining to the use and expenditure
and investment of the proceeds of the Certificates as may be
necessary for the approval of the Attorney General,
registration by the Comptroller of Public Accounts and delivery
of the Certificates to the purchasers thereof and, together
with the City's financial advisor, bond counsel and the Paying
Agent/ Registrar, make the necessary arrangements for the
delivery of the Initial Certificate to the purchasers.
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SECTION 32: Compliance with State Revolving Loan Fund
Rules. In compliance with the State Revolving Loan Fund
Permanent Rules of the Board, the City agrees and covenants:
(1) to keep and maintain full and complete records and
accounts pertaining to the construction of the project financed
with the proceeds of sale of the Certificates, including the
construction fund account created below, in accordance with the
standards set forth by the Government Accounting Standard Board;
(2) a •special City of Lubbock SRF Loan Construction
Fund" has been created and established by Section 30 of this
Ordinance at an official depository of the City (the
•construct ion Fund•) for the receipt and disbursement of a 11
proceeds from the sale of the Certificates and all other funds
acquired by the City in connection with the planning and
construction of the projects financed, in whole or in part, by
the Board pursuant to a loan evidenced by the Certificates and
all funds deposited to the credit of the Construction Fund
shall be disbursed only for the payment of costs and expenses
incurred in connection with the planning and building of such
projects as approved by the Board and as otherwise allowed by
the rules;
(3) upon completion of the construction of the projects
financed, in whole or in part, by the loan evidenced by the
Certificates, to provide a final accounting to the Board of the
total costs of the projects. If the projects as finally
completed were built at a total cost less than the amount of
available funds for building the projects, or if the Executive
Administrator of the Board disapproves construction of any
portion of such projects as not being in accordance with the
plans and specifications, the City agrees to immediately, with
filing of the final accounting, return to the Board the amount
of any such excess and/or the cost determined by the Executive
Administrator of the Board relating to the parts of such
projects not built in accordance with the plans and
specifications, to the nearest multiple of the authorized
denominations for the Certificates, upon the surrender and
cancellation of a like amount of such Certificates held by the
Board in inverse order of their Stated Maturities. In
determining the amount of available funds· for building the
project, the City agrees to account for all amounts deposited
to the credit of the Construction Fund, including all loan
funds extended by the Board, all other funds available from the
projects as described in the project engineer's or fiscal
representative • s sufficiency of funds statement and all
interest earned by the City on money in the Construction Fund;
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6679£
(4) notwithstanding the prov1s1ons of Section 16 hereof,
to maintain adequate insurance coverage on the projects
financed with the proceeds of the Certificates in amounts
adequate to protect the Board's interest;
(5) to implement any water conservation program required
by the Board until all financial obligations to the State have
been discharged;
(6) to comply with any special conditions specified by
the Board•s environmental determination until all financial
obligations to the state have been discharged; and
(7) to abide by the Board's rules and relevant state
statutes.
SECTION 33: Legal Opinion. The Purchaser's obligation
to accept delivery of the Certificates is subject to being
furnished a final opinion of Fulbright & Jaworski, Attorneys,
approving such Certificates as to their validity, said opinion
to be dated and delivered as of the date of final delivery and
payment for the Certificates.
SECTION 34: CUSIP Numbers. That CUSIP numbers may be
printed or typed on the definitive Certificates. It is
expressly provided, however, that the presence or absence of
CUSIP numbers on the definitive Certificates shall be of no
significance or effect as regards the legality thereof and
neither the City nor attorneys approving said Certificates as
to legality are to be held responsible for CUSIP numbers
incorrectly printed or typed on the definitive Certificates.
SECTION 35: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be
construed to confer upon any person other than the City, the
Paying Agent/Registrar and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance
or any provision hereof, this Ordinance and all its provisions
being intended to be and being for the sole and exclusive
benefit of the City, the Paying Agent/Registrar and the Holders.
SECTION 36: Inconsistent Provisions. All ordinances,
orders or resolutions, or parts thereof, which are in conflict
or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict and the provisions of
this Ordinance shall be and remain controlling as to the
matters contained herein.
SECTION 37: Governing Law. This Ordinance shall be
construed and enforced in accordance with the laws of the State
of Texas and the United States of America.
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667'JE
....
SECTION 38: Severability. If any prov1s1on of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless
be valid, and the City Council hereby declares that this
Ordinance would have been enacted without such invalid
provision.
SECT I ON 3 9 : :E.::.f.::.f.::.e.::.c;:.t____:o=-:f=--~H=-=e::...:a;:..:d::.:i:..:.n::..og~.:::.s •
herein are for convenience only and
construction hereof.
The Section headings
shall not affect the
SECTION 40: Construction of Terms. If appropriate in the
context of this Ordinance, words of the singular number shall
be considered to include the plural, words of the plural number
shall be considered to include the singular, and words of the
masculine, feminine or neuter gender shall be considered to
include the other genders.
SECTION 41: Public Meeting. It is officially found,
determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice
of the time, place, and subject matter of the public business
to be considered at such meeting, including this Ordinance, was
given, all as required by Article 6252-17, Vernon's Texas Civil
Statutes, as amended.
SECTION 42: Effective Date. This Ordinance shall take
effect and be in force immediately _from and after its passage
on second and final reading, and IT IS SO ORDAINED.
PASSED AND ADOPTED ON FIRST READING, this 14th day of
November, _1991.
PASSED AND ADOPTED ON SECOND AND FINAL READING, this 21st
day of November, 1991.
CITY OF LUBBOCK, TEXAS
ATTEST:
(City Seal)
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6679E
EXHIBIT~ A
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of November 21, 1991 (this
"Agreement"), by and between the City of Lubbock, Texas (the
"Issuer"), and Ameritrust Texas National Association, Austin,
Texas, a banking association duly organized and existing under
the laws of the United States of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for
the issuance of its "City of Lubbock, Texas, Combination Tax
and Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991" (the "Securities") in the aggregate
principal amount of $1,655,000, such Securities to be issued in
fully registered form only as to the payment of principal
thereof and interest thereon; and
WHEREAS, the Securities are to be delivered to the
initial purchasers thereof in installments as provided in the
Bond Resolution; and
WHEREAS, the Issuer has selected the Bank to serve as
Paying Agent/Registrar in connection with the payment of the
principal of, premium, if any, and interest on said Securities
and with respect to the registration, transfer, and exchange
thereof by the registered owners thereof; and
WHEREAS, the Bank has agreed to serve in such capacities
for and on behalf of the Issuer and has full power and
authority to perform and serve as Paying Agent/Registrar for
the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying
Agent with respect to the Securities, and, as such Paying
Agent, the Bank shall be responsible for paying on behalf of
the Issuer the principal of, premium (if any), and interest on
the Securities as the same become due and payable to the
registered owners thereof; all in accordance with this
Agreement and the "Bond Resolution" (hereinafter defined). The
Issuer hereby appoints the Bank as Registrar with respect to
the Securities and, as Registrar for the Securities, the Bank
shall keep and maintain for and on behalf of the Issuer books
and records as to the ownership of said Securities and with
respect to the transfer and exchange thereof as provided herein
and in the •sond Resolution•.
The Bank hereby accepts its appointment I and agrees to
serve as the Paying Agent and Registrar for the Securities and
to hold the Initial Certificates in escrow and make delivery of
the Securities as provided in the Bond Resolution.
Section 1.02. Compensation.
As compensation for the Bank's services as Paying Agent/
Registrar, the Issuer hereby agrees to pay the Bank the fees
and amounts set forth in Annex A attached hereto for the first
year of this Agreement and thereafter the fees and amounts set
forth in the Bank • s current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which
shall be supplied to the Issuer on or before 90 days prior to
the close of the Fiscal Year of the Issuer 1 and shall be
effective upon the first day of the following Fiscal Year.
In addition, the Issuer agrees to reimburse the Bank upon
its request for all reasonable expenses, disbursements, and
advances incurred or made by the Bank in accordance with any of
the provisions hereof (including the reasonable compensation
and the expenses and disbursements of its agents and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.01. Definitions.
For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
,,.,£
•Acceleration Date• on any Security means the date
on and after which the principal or any or all
installments of interest, or both, are due and payable on
any Security which has become accelerated pursuant to the
terms of the Security. ·
•sank Office• means the principal corporate trust
office of the Bank as indicated on page 12 hereof. The
Bank will notify the Issuer in writing of any change in
location of the Bank Office.
•sond Resolution• means the resolution, order, or
ordinance of the governing body of the Issuer pursuant to
which the Securities are issued, certified by the
Secretary or any other officer of the Issuer and
delivered to the Bank.
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6686E
"Fiscal Year• means the fiscal year of the Issuer,
ending September 30.
"Holder• and "Security Holder• each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request• and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday" means a day on which the Bank is
required or authorized to be closed.
"Person" means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or
government, or any agency or political subdivision of a
government.
"Predecessor Securities" of any particular Security
means every previous Security evidencing all or a portion
of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Security for which a replacement Security has been
registered and delivered in lieu thereof pursuant to
Section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for such redemption
pursuant to the terms of the Bond Resolution.
"Responsible Officer• when used with respect to the
Bank means the Chairman or Vice-Chairman of the Board of
Directors, the Chairman or Vice-Chairman of the Executive
Committee of the Board of Directors, the President, any
Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, any Trust Officer or Assistant Trust
Officer, or any other officer of the Bank customarily
performing functions similar to those performed by any of
the above designated officers and also means, with
respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
"Security Register• means a register maintained by
the Bank on behalf of the Issuer providing for the
registration and transfer of Securities.
-3-
•stated Maturity• means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms "Bank, • • Issuer, • and •securities (Security) •
have the meanings assigned to them in the recital paragraphs of
this Agreement.
The term •paying Agent/Registrar• refers to the Bank in
the performance of the duties and functions of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of the Paying Agent.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption
Date, or Acceleration Date, to the Holder upon surrender of the
Security to the Bank at the Bank Office.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Security when due, by computing the amount of
interest to be paid each Holder and making payment thereof to
the Holders of the Securities (or their Predecessor Securities)
on the Record Date. All payments of principal and/or interest
on the Securities to the registered owners shall be
accomplished (1) by the issuance of checks, payable to the
registered owners, drawn on the fidicuary account provided in.
Section 5.05 hereof, sent by United States mail, first class,
postage prepaid, to the address appearing on the Security
Register or (2) by such other method, acceptable to the Bank,
requested in writing by the Holder at the Holder•s risk and
expense.
Section 3.02. Payment Dates.
The Issuer hereby instructs the Bank to pay the principal
of and interest on the Securities at the dates specified in the
Bond Resolution.
-4-6616E
ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the •security Register•) for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may
prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, such written instrument to
be in a form satisfactory to the Bank and duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
To the extent possible and under reasonable
circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the
Holders thereof will be completed and new Securities delivered
to the Holder or the assignee of the Holder in not more than
three (3) business days after the receipt of the Securities to
be cancelled in an exchange or transfer and the written
instrument of transfer or request for exchange duly executed by
the Holder, or his duly authorized agent, in form and manner
satisfactory to the Paying Agent/Registrar.
Section 4.02. Securities.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers or exchanges thereof. The
Bank covenants that the inventory of printed Securities will be
kept in safekeeping pending their use and reasonable care will
be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained
by the Bank for debt securities of other governments or
corporations for which it serves as registrar, or that is
maintained for its own securities.
-5-,,.,£
Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer I upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of 1 an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu of
which or in exchange for which other Securities have been
issued, or which have been paid.
Section 4.06. Mutilated, Destroyed, Lost, or Stolen
Securities.
The Issuer hereby instructs the Bank, subject to the
provisions of Section 27 of the Bond Resolution, to deliver and
issue Securities in exchange for or in lieu of mutilated,
destroyed, lost, or stolen Securities as long as the same does
not result in an overissuance.
-6-
In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth
herein and in the Bond Resolution (relating to the Initial
Certificates) and agrees to use reasonable care in the
performance thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
-7-
6686£
(c) No provisions of this Agreement shall require the
Bank to expend or risk its own funds or otherwise incur any
financial liability for performance of any of its duties
hereunder, or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to
it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting
or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, note, security, or other paper
or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. Without
limiting the generality of the foregoing statement, the Bank
need not examine the ownership of any Securities, but is
protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder or an
agent of the Holder. The Bank shall not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or
other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written
advice of such counsel or any opinion of counsel shall be full
and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good
faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder
and perform any duties hereunder either directly or by or
through agents or attorneys of the Bank.
Section 5.03. Recitals of the Issuer.
The recitals contained herein with respect to the Issuer
and in the Securities shall be taken as the statements of the
Issuer, and the Bank assumes no responsiblity for their
correctness.
The Bank shall in no event be liable to the Issuer, any
Holder or Holders of any Security, or any other Person for any
amount due on any Security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise
deal with the Issuer with the same rights it would have if it
were not the Paying Agent/Registrar, or any other agent.
-8-6616[
Section 5 • 0 5 • ::.::M;,;;o..:;:n:.;:e.,y-=s;.......:.H::..:e::..:l;.;:d:......:b::..oy'----t:.:h:.;;.e::::._B=a=n.:.::k ____ -=s:;.;:e:::.~P;;.;:a::.::r:..:a::...;t==e
Account/Collateralization.
A separate · account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
Securities shall be continuously collaterialized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
accounts of the Issuer to the extent such money is not insured
by the Federal Deposit Insurance Corporation. Payments made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable will be
paid by the Bank to the Issuer, and the Holder of such
Security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a Federal or
State District Court located in the state and county where
·either the Bank Office or the administrative office of the
Issuer is located, and agree that service of process by
certified or registered mail, return receipt requested, to the
-9-66&6£
.. .
address referred to in Section 6. 03 of this Agreement shall
constitute adequate service. The Issuer and the Bank further
agree that the Bank has the right to file a Bill of
Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. DT Services.
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
•Depository Trust Company• services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the •operational Arrangements•, effective August 1, 1987,
which establishes requirements for securities to be eligible
for such type depository trust services, including, but not
limited to, requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or not.
-10--.,616E
Section 6.06. Severability.
In case any provision herein shall be invalid, illegal,
or unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby.
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any
Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy,
or claim hereunder. ,
Section 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty (60) days written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and the Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
-11-II liE
The provisions of Section 1. 02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL]
Attest:
City Secretary
(SEAL)
ATI'EST:
Title:
6686£
CITY OF LUBBOCK, TEXAS
BY ~----------------------------Mayor
Address:
P. 0. Box 2000
Lubbock, Texas 79457
AMERITRUST TEXAS
NATIONAL ASSOCIATION
Austin, Texas
BY ------------------------------
Mailing Address:
P. 0. Box 149036
Austin, Texas 78714-9036
Delivery Address:
1000 San Jacinto Center
98 San Jacinto Blvd.
Austin, Texas 78701
-12-
......
LOT A
Stated
Maturity
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
6691E
EXHIBIT B
$1,655,000
CITY OF LUBBOCK, TEXAS
COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1991
Principal Stated
Amount Maturity
$10,000 1993
10,000 1994
10,000 1995
10,000 1996
10,000 1997
10,000 1998
10,000 1999
10,000 2000
10,000 2001
15,000 2002
15,000 2003
15,000 2004
15,000 2005
15,000 2006
15,000 2007
20,000 2008
20,000 2009
20,000 2010
20,000 2011
20,000 2012
LOT B
Principal
Amount
$70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
70,000
65,000
65,000
65,000
65,000
65,000
RECORD OF PROCEEDINGS
RELATING TO
$1,655,000
CITY OF LUBBOCK, TEXAS
COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE CERTIFICATES OF OBLIGATION
OOOlE-73
SERIES 1991
DATED NOVEMBER 15, 1991
FULBRIGHT & JAWORSKI
ATTORNEYS AT LAW
2200 ROSS AVENUE, SUITE 2800
DALLAS, TEXAS 75201
TELEPHONE:214/6SS·6000
FACSIMILE: 214/SSS-6200
WRITERS DIRECT OIA~ NUMBER:
FULBRIGHT & JAWORSKI
2200 Ross AvENUE
SUITE 2600
DALLAS, TEXAS 7S201
JAN 1 It 1992
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
WE HAVE EXAMINED into the legality and validity of the
issuance of the "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991" (the "Certificates") 1 dated
November 151 1991 (the "Certificate Date") 1 in the principal
amount of $1,655,000, of which $790,000 is covered by this
op1n1on, by the City of Lubbock, Texas (the "City"), which
Certificates are issuable in fully registered form only, in
denominations of $5,000 or any integral multiple thereof
(within a maturity), have stated maturities of February 15,
1993 through February 15, 2012, unless redeemed prior to
maturity, in accordance with the terms stated on the face of
the Certificates, and bear interest on the unpaid principal
amount from the date of delivery to the initial purchasers
thereof at the per annum rates stated in the ordinance
authorizing the issuance of the Certificates (the "Ordinance"),
such interest being payable on February 15 and August 15 in
each year, commencing August 15, 1992, to the registered owners
shown on the registration books of the Paying Agent/Registrar
on the Record Date (stated on the face of the Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to
pass upon the legality and validity of the issuance of the
Certificates under the Constitution and laws of the State of
Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes
and none other. We have not been requested to investigate or
verify, and have not independently investigated or verified,
any records, data or other material relating to the financial
condition or capabilities of the City. Our examinations into
the legality and validity of the Certificates included a review
of the applicable and pertinent provisions of the Constitution
and laws of the State of Texas, a transcript of certified
proceedings of the City relating to the authorization and
issuance of the Certificates, including the Ordinance,
customary certifications and opinions of officials of the City
and other pertinent showings, and an examination of the
Certificate executed and delivered initially by the City, which
we found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Certificates have been duly authorized by the City in
compliance with the Constitution and laws of the State of Texas
now in force, and the Certificates issued in compliance with
the provisions of the Ordinance are valid, legally binding and
enforceable obligations of the City payable from the sources
Page 2
RE:
of Legal Opinion of Fulbright & Jaworski
$1,655,000 "City of LubbocJt, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991", dated November 15, 1991
and secured in the manner provided in the Ordinance, except to
the extent that the enforceability thereof may be affected by
bankruptcy, insolvency, reorganization, moratorium, or other
similar laws affecting creditors • rights or the exercise of
judicial discretion in accordance with the general principles
of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing
compliance after the date hereof by the City with the
prov1s1ons of the Ordinance and in reliance upon
representations and certifications of the City made in a
certificate of even date herewith pertaining to the use,
expenditure, and investment of the proceeds of the
Certificates, (A) interest on the Certificates for federal
income tax purposes (1) will be excludable from gross income,
as defined in section 61 of the Internal Revenue Code of 1986,
as amended to the date hereof (the "Code"), of the owners
thereof pursuant to section 103 of the Code, existing
regulations, published rulings, and court decisions thereunder,
and (2) will not be included in computing the alternative
minimum taxable income of individuals or, except as hereinafter
qescribed, corporations and (B) the Certificates are not
"private activity bonds" as that term is defined in section 141
of the Code. Interest on all tax-exempt obligations, such as
the Certificates, owned by a corporation will be included in
such corporation • s adjusted net book income, for the tax year
1989, or adjusted current earnings, for tax years beginning
after 1989, for purposes of calculating the alternative minimum
taxable income of such corporations, other than an S
corporation, a qualified mutual fund, a real estate mortgage
investment conduit (REMIC), or a real estate investment trust
(REIT). A corporation's alternative minimum taxable income is
the basis on which the alternative minimum tax and the
environmental tax imposed by Sections 55 and 59A of the Code,
respectively, will be computed for tax years beginning after
December 31, 1986.
WE EXPRESS NO OPINION with respect to any other federal,
state, or local tax consequences under present law or any
proposed legislation resulting from the receipt or accrual of
interest on, or the acquisition or disposition of, the
Certificates. Ownership of tax-exempt obligations such as the
Certificates may result in collateral federal tax consequences
to, among others, financial institutions, life insurance
companies, property and casualty insurance companies, certain
foreign corporations doing business in the United States, S
corporations with subchapter C earnings and profits, individual
recipients of Social Security or Railroad Retirement Benefits,
and taxpayers who may be deemed to have incurred or continued
indebtedness to purchase or carry, or who have paid or incurred
certain expenses allocable to, tax-exempt obligations.
6688£
TELEPH0NE:214/eSS-eOOO
FACSIMILE: 214/SS5-S200
WRITERS OIRECT OIAL NUMBER:
FULBRIGHT & .JAWORSKI
2200 Ross AVENUE
SUITE 2800
DALLAS, TEXAS 75201
HOUSTON
WASHINGTON, 0-C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONOON
ZURICH
HONG KONG
WE HAVE EXAMINED into the legality and validity of the
issuance of the "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991" (the "Certificates"), dated
November 15, 1991 (the "Certificate Date"), in the principal
amount of $1,655,000, of which $95,000 is covered by this
op1n1on, by the City of Lubbock, Texas (the "Ci tyM), which
Certificates are issuable in fully registered form only, in
denominations of $5,000 or any integral multiple thereof
(within a maturity), have stated maturities of February 15,
1993 through February 15, 2012, unless redeemed prior to
maturity, in accordance with the terms stated on the face of
the Certificates, and bear interest on the unpaid principal
amount from the date of delivery to the initial purchasers
thereof at the per annum rates stated in the ordinance
authorizing the issuance of the Certificates (th~ "Ordinance"),
such interest being payable on February 15 and August 15 in
each year, commencing August 15, 1992, to the registered owners
shown on the registration books of the Paying Agent/Registrar
on the Record Date (stated on the face of the Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to
pass upon the legality and validity of· the issuance of the
Certificates under the Constitution and laws of the State of
Texas, and with respect to the exclusion of the interest on the
Certificates from gross. income for federal income tax purposes
and none other. We have not been requested to investigate or
verify, and have not independently investigated or verified,
any records, data or other material relating to the financial
condition or capabilities of the City. Our examinations into
the legality and validity of the Certificates included a review
of the applicable and pertinent provisions of the Constitution
and laws of the State of Texas, a transcript of certified
proceedings of the City relating to the authorization and
issuance of the Certificates, including the Ordinance,
customary certifications and opinions of officials of the City
and other pertinent showings, and an examination of the
Certificate executed and delivered initially by the City, which
we found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Certificates have been duly authorized by the City in
compliance with the Constitution and laws of the State of Texas
now in force, and the Certificates issued in compliance with
the provisions of the Ordinance are valid, legally binding and
enforceable obligations of the City payable from the sources
,.... ..
Page 2 of Legal Opinion of Fulbright & Jaworski
RE: $1,655,000 "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991", dated November 15, 1991
and secured in the manner provided in the Ordinance, except to
the extent that the enforceability thereof may be affected by
bankruptcy, insolvency, reorganization, moratorium, or other
similar laws affecting creditors • rights or the exercise of
judicial discretion in accordance with the general principles ·
of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing
compliance after the date hereof by the City with the
prov1s1ons of the Ordinance and in reliance upon
representations and certifications of the City made in a
certificate of even date herewith pertaining to the use,
expenditure, and investment of the proceeds of the
Certificates, (A) interest on the Certificates for federal
income tax purposes (1) will be excludable from gross income,
as defined in section 61 of the Internal Revenue Code of 1986,
as amended to the ·date hereof (the "Code"), of the owners
thereof pursuant to section 103 of the Code, existing
regulations, published rulings, and court decisions thereunder,
and (2) will not be included in computing the alternative
minimum taxable income of individuals or, except as hereinafter
described, corporations and (B) the Certificates are not
"private activity bonds" as that term is defined in section 141
of the Code. Interest on all tax-exempt obligations, such as
the Certificates, owned by a corporation will be included in
such corporation's adjusted net book income, for the tax year
1989, or adjusted current earnings, for tax years beginning
after 1989, for purposes of calculating the alternative minimum
taxable income of such corporations, other than an S
corporation, a qualified mutual fund, a real estate mortgage
investment conduit (REMIC), or a real estate investment trust
(REIT). A corporation's alternative minimum taxable income is
the basis on which the alternative minimum tax and the
environmental tax imposed by Sections 55 and 59A of the Code,
respectively, will be computed for tax years beginning after
December 31, 1986.
WE EXPRESS NO OPINION with respect to any other federal,
state, or local tax consequences under present law or any
proposed legislation resulting from the receipt or accrual of
interest on, or the acquisition or disposition of, the
Certificates. Ownership of tax-exempt obligations such as the
Certificates may result in collateral federal tax consequences
to, among others, financial institutions, life insurance
companies, property and casualty insurance companies, certain
foreign corporations doing business in the United States, S
corporations with subchapter C earnings and profits, individual
recipients of Social Security or Railroad Retirement Benefits,
and taxpayers who may be deemed to have incurred or continued
indebtedness to purchase or carry, or who have paid or incurred
certain expenses allocable to, tax-exempt obligations.
6934£
~y~·
TELEPHON£:214/655-6000
FACSIMILE: 214/855·6200
WRITERS DIFIEC::T DIAL HUHBEFI:
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2SOO
DALLAS, TEXAS 75201
APR 0 3 i992
HOUSTON
WASHINGTON, C. C.
AUSTIN
SAN ANTONIO
CALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
WE HAVE EXAMINED into the legality and validity of the
issuance of the "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991" (the "Certificates"), dated
November 15, 1991 (the ''Certificate Date .. ), in the principal
amount of $1,655,000, of which $200,000 is covered by this
opl.nJ.on, by the City of Lubbock, Texas (the "City"), which
Certificates are issuable in fully registered form only, in
denominations of $5,000 or any integral multiple thereof
(within a maturity), have stated maturities of February 15,
1993 through February 15, 2012, unless redeemed prior to
maturity, in accordance with the terms .stated on the face of
the Certificates, and bear interest on the unpaid principal
amount from the date of delivery to the initial purchasers
thereof at the per annum rates stated in the ordinance
authorizing the issuance of the Certificates (the "Ordinance•),
such interest being payable on February 15 and August 15 in
each year, commencing August 15, 1992, to the registered owners
shown on the registration books of the Paying Agent/Registrar
on the Record Date (stated on the face of the Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to
pass upon the legality and validity of the issuance of the
Certificates under the Constitution and laws of the State of
Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes
and none other. We have not been requested to investigate or
verify, and have not independently investigated or verified,
any records, data or other material relating to the financial
condition or capabilities of the City. Our examinations into
the legality and validity of the Certificates included a review
of the applicable and pertinent provisions of the Constitution
and laws of the State of Texas, a transcript of certified
proceedings of the City relating to the authorization and
issuance of the Certificates, including the Ordinance,
customary certifications and opinions of officials of the City
and other pertinent showings, and an examination of the
Certificate executed and delivered initially by the City, which
we found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Certificates have been duly authorized by the City in
compliance with the Constitution and laws of the State of Texas
now in force, and the Certificates issued in compliance with
the provisions of the Ordinance are valid, legally binding and
enforceable obligations of the City payable from the sources
..
Page 2 of Legal Opinion of Fulbright & Jaworski
RE: $1,655,000 "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991", dated November 15, 1991
and secured in the manner provided in the Ordinance, except to
the extent that the enforceability thereof may be affected by
bankruptcy, insolvency, reorganization, moratorium, or other
similar laws affecting creditors • rights or the exercise of
judicial discretion in accordance with the general principles
of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing
compliance after the date hereof by the City with the
prov1s1ons of the Ordinance and in reliance upon
representations and certifications of the City made in a
certificate of even date herewith pertaining to the use,
expenditure, and investment of the proceeds of the
Certificates, (A) interest on the Certificates for federal
income tax purposes (1) will be excludable from gross income,
as defined in section 61 of the Internal Revenue Code of 1986,
as amended to the date hereof (the "Code"), of the owners
thereof pursuant to section 103 of the Code, existing
regulations, published rulings, and court decisions thereunder,
and (2) will not be included in computing the alternative
minimum taxable income of individuals or, except as hereinafter
described, corporations and (B) the Certificates are not
"pri~ate ~ctivity bonds" as that term is defined in section 141
of the Code. Interest on all tax-exempt obligations, such as
the Certificates, owned by a corporation will be included in
such corporation • s adjusted net book income, for the tax year
1989, or adjusted current earnings, for tax years beginning
after 1989, for purposes of calculating the alternative minimum
taxable income of such corporations, other than an S
corporation, a qualified mutual fund, a real estate mortgage
investment conduit (REMIC), or a real estate investment trust
(REIT). A corporation's alternative minimum taxable income is
the basis on which the alternative minimum tax and the
environmental tax imposed by Sections 55 and 59A of the Code,
respectively, will be computed for tax years beginning after
December 31, 1986.
WE EXPRESS NO OPINION with respect to any other federal,
state, or local tax consequences under present law or any
proposed legislation resulting from the receipt or accrual of
interest on, or the acquisition or disposition of, the
Certificates. Ownership of tax-exempt obligations such as the
Certificates may result in collateral federal tax consequences
to, among others, financial institutions, life insurance
companies, property and casualty insurance companies, certain
foreign corporations doing business in the United States, S
corporations with subchapter C earnings and profits, individual
recipients of Social Security or Railroad Retirement Benefits,
and taxpayers who may be deemed to have incurred or continued
indebtedness to purchase or carry, or who have paid or incurred
certain expenses allocable to, tax-exe~ ~~~;~~~
112 2 E ~ v -,--· II'.,--
I ,...
TELEPHONE: 214/855·8000
I'"ACSIMILE:: 214/855•$200
FULBRIGHT & JAWORSKI
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 7S201
APR 2 8 1992
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
WE HAVE EXAMINED into the legality and validity of the issuance
of the "City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1991" (the "Certificates"), dated November 15,
1991 (the "Certificate Date"), in the principal amount of $1,655,000, of which $415,000
is covered by this opinion, by the City of Lubbock, Texas (the "City''), which Certificates
are issuable in fully registered form only, in denominations of $5,000 or any integral
multiple thereof (within a maturity), have stated maturities of February 15, 1993
through February 15, 2012, unless redeemed prior to maturity, in accordance with the
terms stated on the face of the Certificates, and bear interest on the unpaid principal
amount from the date of delivery to the initial purchasers thereof at the per annum
rates stated in the ordinance authorizing the issuance of the Certificates (the
"Ordinance"), such interest being payable on February 15 and August 15 in each year,
commencing August 15, 1992, to the registered owners shown on the registration books
of the Paying Agent/Registrar on the Record Date (stated on the face of the
Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon
the legality and validity of the issuance of the Certificates under the Constitution and
laws of the State of Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes and none other. We
have not been requested to investigate or verify, and have not independently
investigated or verified, any records, data or other material relating to the financial
condition or capabilities of the City. Our examinations into the legality and validity of
the Certificates included a review of the applicable and pertinent provisions of the
Constitution and laws of the State of Texas, a transcript of certified proceedings of the
City relating to the authorization and issuance of the Certificates, including the
Ordinance, customary certifications and opinions of officials of the City and other
pertinent showings, and an examination of the Certificate executed and delivered
initially by the City, which we found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Certificates have been duly authorized by the City in compliance with the Constitution
and laws of the State of Texas now in force, and the Certificates issued in compliance
with the provisions of the Ordinance are valid, legally binding and enforceable
obligations of the City payable from the sources and secured in the manner provided
in the Ordinance, except to the extent that the enforceability thereof may be affected
by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting
10068
Page 2 of Legal Opinion of Fulbright & Jaworski
RE: $1,655,000 "City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation, Series 1991", dated
November 15, 1991
creditors' rights or the exercise of judicial discretion in accordance with the general
principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance
after the date hereof by the City with the provisions of the Ordinance and in reliance
upon representations and certifications of the City made in a certificate of even date
herewith pertaining to the use, expenditure, and investment of the proceeds of the
Certificates, (A) interest on the Certificates for federal income tax purposes (1) will be
excludable from gross income, as defined in section 61 of the Internal Revenue Code of
1986, as amended to the date hereof (the "Code"), of the owners thereof pursuant to
section 103 of the Code, existing regulations, published rulings, and court decisions
thereunder, and (2) will not be included in computing the alternative minimum taxable
income of individuals or, except as hereinafter described, corporations and (B) the
Certificates are not "private activity bonds" as that term is defined in section 141 of the
Code. Interest on all tax-exempt obligations, such as the Certificates, owned by a
corporation will be included in such corporation's adjusted net book income, for the tax
year 1989, or adjusted current earnings, for tax years beginning after 1989, for purposes
of calculating the alternative minimum taxable income of such corporations, other than
an S corporation, a qualified mutual fund, a real estate mortgage investment conduit
(REMIC), or a real estate investment trust (REIT). A corporation's alternative
minimum taxable income is the basis on which the alternative minimum tax and the
environmental tax imposed by Sections 55 and 59A of the Code, respectively, will be
computed for tax years beginning after December 31, 1986.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Certificates.
Ownership of tax-exempt obligations such as the Certificates may result in collateral
federal tax consequences to, among others, fmancial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations
doing business in the United States, S corporations with subchapter C earnings and
profits, individual recipients of Social Security or Railroad Retirement Benefits, and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase
or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations.
10668
TELEPHONE:: 21-4/855•8000
,.ACSIM ILE:: 214/855·8200
FULBRIGHT & ~AWORSKI
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 75201
AUG 1 8 1992
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
WE HAVE EXAMINED into the legality and validity of the issuance of the "City
of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien Revenue
Certificates of Obligation, Series 1991" (the "Certificates"), dated November 15, 1991
(the "Certificate Date"), in the principal amount of $1,655,000, of which $100,000 is
covered by this opinion, by the City of Lubbock, Texas (the "City"), which Certificates
are issuable in fully registered form only, in denominations of $5,000 or any integral
multiple thereof (within a maturity), have stated maturities of February 15, 1993
through February 15, 2012, unless redeemed prior to maturity, in accordance with the
terms stated on the face of the Certificates, and bear interest on the unpaid principal
amount from the date of delivery to the initial purchasers thereof at the per annum
rates stated in the ordinance authorizing the issuance of the Certificates (the
"Ordinance"), such interest being payable on February 15 and August 15 in each year,
commencing August 15, 1992, to the registered owners shown on the registration books
of the Paying Agent/Registrar on the Record Date (stated on the face of the
Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Certificates under the Constitution and laws
of the State of Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes and none other. We
have not been requested to investigate or verify, and have not independently
investigated or verified, any records, data or other material relating to the financial
condition or capabilities of the City. Our examinations into the legality and validity of
the Certificates included a review of the applicable and pertinent provisions of the
Constitution and laws of the State of Texas, a transcript of certified proceedings of the
City relating to the authorization and issuance of the Certificates, including the
Ordinance, customary certifications and opinions of officials of the City and other
pertinent showings, and an examination of the Certificate executed and delivered
initially by the City, which we found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Certificates
have been duly authorized by the City in compliance with the Constitution and laws of
the State of Texas now in force, and the Certificates issued in compliance with the
provisions of the Ordinance are valid, legally binding and enforceable obligations of the
City payable from the sources and secured in the manner provided in the Ordinance,
except to the extent that the enforceability thereof may be affected by bankruptcy,
..
Page 2 of Legal Opinion of Fulbright & Jaworski
RE: $1,655,000 "City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation, Series 1991", dated
November 15, 1991
insolvency, reorganization, moratorium, or other similar laws affecting creditors' rights
or the exercise of judicial discretion in accordance with the general principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a certificate of even date herewith
pertaining to the use, expenditure, and investment of the proceeds of the Certificates,
(A) interest on the Certificates for federal income tax purposes (1) will be excludable
from gross income, as defined in section 61 of the Internal Revenue Code of 1986, as
amended to the date hereof(the "Code"), of the owners thereof pursuant to section 103
of the Code, existing regulations, published rulings, and court decisions thereunder, and
(2) will not be included in computing the alternative minimum taxable income of
individuals or, except as hereinafter described, corporations and (B) the Certificates are
not "private activity bonds" as that term is defined in section 141 of the Code. Interest
on all tax-exempt obligations, such as the Certificates, owned by a corporation will be
included in such corporation's adjusted net book income, for the tax year 1989, or
adjusted current earnings, for tax years beginning after 1989, for purposes of
calculating the alternative minimum taxable income of such corporations, other than
an S corporation, a qualified mutual fund, a real estate mortgage investment conduit
(REMIC), or a real estate investment trust (REIT). A corporation's alternative
minimum taxable income is the basis on which the alternative minimum tax and the
environmental tax imposed by Sections 55 and 59A of the Code, respectively, will be
computed for tax years beginning after December 31, 1986.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Certificates.
Ownership of tax-exempt obligations such as the Certificates may result in collateral
federal tax consequences to, among others, financial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations
doing business in the United States, S corporations with subchapter C earnings and
profits, individual recipients of Social Security or Railroad Retirement Benefits, and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase
or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations.
TELEPHONE: 214/855-8000
F'ACSIMILE: 214/855-8200
FULBRIGHT & JAWORSKI
L. L. P.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 7S201
JUN 1 0 1993
HOUSTON
WASHINGTON. D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
WE HAVE EXAMINED into the legality and validity of the issuance of the
"City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1991" (the "Certificates"), dated
November 15, 1991 (the "Certificate Date"), in the principal amount of $1,655,000, of
which $55,000 is covered by this opinion, by the City of Lubbock, Texas (the "City''),
which Certificates are issuable in fully registered form only, in denominations of
$5,000 or any integral multiple thereof (within a maturity), have stated maturities of
February 15, 1993 through February 15, 2012, unless redeemed prior to maturity, in
accordance with the terms stated on the face of the Certificates, and bear interest on
the unpaid principal amount from the date of delivery to the initial purchasers thereof
at the per annum rates stated in the ordinance authorizing the issuance of the
Certificates (the "Ordinance"), such interest being payable on February 15 and August
15 i_n each year, commencing August 15, 1992, to the registered owners shown on the
registration books of the Paying Agent/Registrar on the Record Date (stated on the
face of the Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Certificates under the Constitution and
laws of the State of Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes and none other. We
have not been requested to investigate or verify, and have not independently
investigated or verified, any records, data or other material relating to the financial
condition or capabilities of the City. Our examinations into the legality and validity
of the Certificates included a review of the applicable and pertinent provisions of the
Constitution and laws of the State of Texas, a transcript of certified proceedings of
the City relating to the authorization and issuance of the Certificates, including the
Ordinance, customary certifications and opinions of officials of the City and other
pertinent showings, and an examination of the Certificate executed and delivered
initially by the City, which we found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Certificates
have been duly authorized by the City in compliance with the Constitution and laws
of the State of Texas now in force, and the Certificates issued in compliance with the
provisions of the Ordinance are valid, legally binding and enforceable obligations of
the City payable from the sources and secured in the manner provided in the
Ordinance, except to the extent that the enforceability thereof may be affected by
bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting
creditors' rights or the exercise of judicial discretion in accordance with the general
principles of equity.
Page 2 of Legal Opinion of Fulbright & Jaworski L.L.P.
RE: $1,655,000 "City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation, Series 1991", dated
November 15, 1991
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a certificate of even date
herewith pertaining to the use, expenditure, and investment of the proceeds of the
Certificates, (A) interest on the Certificates for federal income tax purposes (1) will
be excludable from gross income, as defined in section 61 of the Internal Revenue
Code of 1986, as amended to the date hereof (the "Code"), of the owners thereof
pursuant to section 103 of the Code, existing regulations, published rulings, and court
decisions thereunder, and (2) will not be included in computing the alternative
minimum taxable income of individuals or, except as hereinafter described,
corporations and (B) the Certificates are not "private activity bonds" as that term is
defmed in section 141 of the Code. Interest on all tax-exempt obligations, such as the
Certificates, owned by a corporation will be included in such corporation's adjusted
net book income, for the tax year 1989, or adjusted current earnings, for tax years
beginning after 1989, for purposes of calculating the alternative minimum taxable
income of such corporations, other than an S corporation, a qualified mutual fund, a
real estate mortgage investment conduit (REMIC), or a real estate investment trust
(REIT). A corporation's alternative minimum taxable income is the basis on which
the alternative minimum tax and the environmental tax imposed by Sections 55 and
59A of the Code, respectively, will be computed for tax years beginning after
December 31, 1986.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Certificates.
Ownership of tax-exempt obligations such as the Certificates may result in collateral
federal tax consequences to, among others, fmancial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations
doing business in the United States, S corporations with subchapter C earnings and
profits, individual recipients of Social Security or Railroad Retirement Benefits, and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase
or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations.
Resolution No. 3701
August 22, 1991
Item 1128
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 22nd day of August, 1991, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: Mayor B. C. McMinn & Coucilman M. J. Aderton • Among other
business considered at said meeting, the attached resolution
entitled:
A RESOLUTION relating to the reimbursement of City
funds expended for costs of engineering
services in connection with replacement of
an effluent pipeline to connect the City• s
Southeast Water Reclamation Plant to the
City's land application site east of the
treatment plant and construction of a major
wastewater treatment and disposal
improvement and expansion project from the
proceeds of sale of tax exempt obligations;
and resolving other matters incident and
related thereto.
was introduced and submitted to the Counci 1 for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion made by Joan Baker and
seconded by Bill Maloy the resolution was duly passed
and adopted by the Council by the following vote:
5 voted "For• 0 voted "Against• 0 abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled resolution, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 22nd day
of August, 1991.
~~
City of Lubbock, Texas
(City Seal)
-2-6S27E
•
Resolution No. 3701
August 22, 1991
Item #28
A RESOLUTION relating to the reimbursement of City
funds expended for costs of engineering
services in connection with replacement of
an effluent pipeline to connect the City • s
Southeast Water Reclamation Plant to the
City's land application site east of the
treatment plant and construction of a major
wastewater treatment and disposal
improvement and expansion project from the
proceeds of sale of tax exempt obligations;
and resolving other matters incident and
related thereto.
WHEREAS, the City of Lubbock, Texas (the "City") intends
to replace its existing 30 inch effluent pipeline with a 36
inch effluent pipeline to connect the City• s Southeast Water
Reclamation Plant to the City• s land application site east of
the treatment plant and construct a major wastewater treatment
and disposal improvement and expansion project, and proposes to
issue tax-exempt debt to finance the cost of such replacement
effluent pipeline and construction of the wastewater project;
and
WHEREAS, prior to issuing its debt obligations, the City
has incurred and will incur certain costs in connection with
the replacement of the effluent pipeline and construction of
the wastewater project; and
WHEREAS, the City plans to reimburse itself for
expenditures made in connection with the replacement of the
effluent pipeline and construction of the wastewater project
prior to the issuance of its tax-exempt obligations; and
WHEREAS, proposed regulations issued under the Internal
Revenue Code of 1986 (the "Code") imposed certain requirements
in order that such reimbursement is treated as an expenditure
of bond proceeds for federal tax law purposes, including the
taking of official action by the adoption of a resolution
evidencing the City's intention to reimburse city funds
expended for a project or purpose to be financed with the
proceeds of sale of tax exempt obligations; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1:
plan is approved:
That the following proposed reimbursement
1. The City intends to reimburse itself for
expenditures to be made for engineering services in connection
with replacement of an effluent pipeline to connect the City's
Southeast Water Reclamation Plant to the City• s land
application site east of the treatment plant and construction
..
of a major wastewater treatment and disposal improvement and
expansion project, by incurring debt the interest on which is
excludable from gross income under section 103 of the Internal
Revenue Code of 1986.
2. The expenditures for the engineering services are
anticipated to be approximately $874,000. The engineering
services, and the approximate costs of each are: planning phase
($700,000); construction phase, basic ($32,000); design phase
($82,000); construction phase, inspection ($40,000); user
charge ($20,000). The engineering costs incurred for the
planning phase include costs related to the replacement of the
effluent pipeline as well as costs related to construction of a
new administration and maintenance building for the wastewater
treatment facilities, new activated sludge plant, headworks
facilities, solids handling facilities, anaerobic digester
rehabilitation, effluent discharge pipeline with associated
dechlorination/reaeration facility and renovation and upgrading
of two existing treatment plants and conversion of the existing
administration building to a laboratory. The wastewater
treatment plant to be constructed, the replacement pipeline,
and the discharge pipeline will be located in the City.
3. The City expects to use proceeds from certificates
of obligation to be issued by the City as the source of funds
to pay the reimbursement expenditures. The City expects to pay
debt service on the certificates of obligation from the general
tax revenues and revenues derived from the City's wastewater
treatment facilities.
SECTION 2: This Resolution will be available for
inspection by the general public at the main administrative
offices of the City during normal business hours on each
business day through and including the date of issue of the
certificates of obligation.
PASSED AND ADOPTED, this August 22, 1991.
AT1'EST;.
·ccity seal)
6 5 1 6£ -2-
CITY OF LUBBOCK, TEXAS
T. J. Patterson, Mayor Pro-Tem
for B. C. McMinn, Mayor
,...
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the lOth day of October, 1991, the City
Counci 1 of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. MCMINN
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
all of said persons were present at
following: Bill Maloy
MAYOR
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
said meeting, except the
business considered at said meeting, the
entitled:
. Among other
attached resolution
"A RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing
publication of notice of intention to issue
certificates of obligation."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion made by Councilmember
Joan Baker and seconded by Councilmember Maggie Trejo
the resolution was finally passed and adopted by the Council by
the following vote:
6 voted "For• o voted "Against• o abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
-
,.,.
'
2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, each member of the Council was given actual notice of
time, place and purpose of the meeting and had actual notice
that the matter would be considered; and that said meeting, and
deliberation of the aforesaid public business, was open to the
public and written notice of said meeting, including the
subject of the entitled resolution, was posted and given in
advance thereof in compliance with the provisions of Article
6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the lOth day
of October, 1991.
~:~
City of Lubbock, Texas
' . (City Se~l)-
/' ' .
-2-6669£
'" -,; .
" ' ~ A
Resolution No. 3728
October 10. 1991
Item #24
RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing
publication of notice of intention to issue
certificates of obligation.
WHEREAS, the City Council of the City of Lubbock,
Texas, has determined that certificates of obligation should be
issued in accordance with the provisions of V.T.C.A., Local
Government Code, Subchapter C of Chapter 271, for the purpose
of paying contractual obligations to be incurred for (i)
constructing improvements and extensions to the City's
Wastewater Treatment System, to wit: replacement of an existing
effluent pipeline and ( i i) professiona 1 services rendered in
connection therewith; and
WHEREAS, prior to the issuance of said certificates of
obligation, this Council is required to give notice of its
intention to issue the same in the manner and time provided by
law; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS:
Section 1: That the City Secretary is hereby
authorized and directed to cause notice to be published of this
Council's intention to issue certificates of obligation in the
principal amount not to exceed $1,655,000 for the purpose of
paying contractual obligations to be incurred for (i)
constructing improvements and extensions to the City's
Wastewater Treatment System, to wit: replacement of an existing
effluent pipeline and ( ii) professional services rendered in
connection therewith, such certificates to be payable from ad
valorem taxes and a lien on and a pledge of the net revenues of
the City's Sewer System. The notice hereby approved and
authorized to be given shall read substantially in the form and
content of Exhibit A hereto attached and incorporated herein.by
reference as a part of this resolution for all purposes.
Section 2: That such notice shall be publish~_d once a
week for two consecutive weeks in a newspaper having general
circulation in the City of Lubbock, Texas, the date of the
first publication of such notice to be at least fifteen ( 15)
days prior to the date stated therein for the passage of the
ordinance authorizing the issuance of the certificates of
obligation.
PASSED AND APPROVED, this the lOth day of October,
1991.
Texas
(SEAL)
6670£
• •
. •
NOTICE OF INTENTION TO ISSUE
CITY OF LUBBOCK, TEXAS, CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the
City of Lubbock, Texas, will convene at its regular meeting
place in the City Hall of Lubbock, Texas at 9:00 o'clock A.M.
on the 14th day of November, 1991, and, during such meeting,
the City Council will consider the passage of an ordinance
authorizing the issuance of certificates of obligation in an
amount not to exceed ONE MILLION SIX HUNDRED FIFTY-FIVE
THOUSAND DOLLARS ($1,655,000) for the purpose of paying
contractual obligations to be incurred for (i) the construction
of improvements and extensions to the City's Wastewater
Treatment System, to wit: replacement of an existing effluent
pipeline, and (ii) professional services rendered in connection
therewith, such certificates to be payable from ad valorem
taxes and a lien on and pledge of the net revenues derived from
the operation of the City's Sewer System. The Certificates are
to be issued and this notice is given, under and pursuant to
the provisions of V.T.C.A., Local Government Code, Subchapter c
of Chapter 271.
~~ Lubbock, Texas
6 6 11 E
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
AFFIDAVIT OF PUBLICATION
§
§
s
BEFORE ME, the undersigned authority, on this day
personally appeared T. J. AUF! LL , who; after being
by me duly sworn, deposes and says that (s)he is the
A ceo unt Manaee r of the Lubbock Avalanche-Journal, which is a
newspaper published and having general circulation in the City
of Lubbock, Texas, and that a true and correct copy of the
"NOTICE OF INTENTION TO ISSUE CITY OF LUBBOCK, TEXAS,
CERTIFICATES OF OBLIGATION" hereto attached, was published in
said paper on the following dates:
October 13, 1991; and
October 20, 1991
the date of the first publication of said notice being at least
fifteen ( 15) days prior to the date stated therein for the
passage of the ordinance authorizing the issuance of the
certificates of obligation.
SWORN TO AND SUBSCRIBED BEFORE ME, this the 22od day
of October , 1991.
6672£
Seal)
TONYA HENRY
Notaty Public
STATE OF TEXAS
My Comr.~ f~p Nov 19 199~
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 14th day of November, 1991, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
' COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
a 11 of said persons were present at said meeting, except the
following: ___ ~N~o_ne __ ~~----~~--~~----~--
business considered
Among other
at said meeting, the attached ordinance
entitled:
ORDINANCE NO. 9491 --------
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991•; levying an ad valorem
tax upon all taxable property in the City and
pledging the Net Revenues of the City's Sewer
System for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters incident
and related to the issuance, sale, security,
payment and delivery of said Certificates,
including the approval and distribution of an
Official Statement pertaining thereto; and
providing an effective date.
..
was introduced and submitted to the Counci 1 for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by Mayor ProTem Patterso'Qlnd
seconded by Councilman Maloy the ordinance was duly passed and
adopted by the Council on first reading by the following vote:
7 voted "For• ---___ o ___ voted "Against" 0 abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in· the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 14th day
of November, 1991.
(City Seal)
-2-~liiO£
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 21st day of November, 1991, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. MCMINN
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: ___ N_o~n~e~~--~--~~----~------~· Among other
business considered at said meeting, the attached ordinance
entitled:
ORDINANCE NO. ~9~4~9~~-----------
AN ORDINANCE authorizing the issuance of •ciTY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991•; levying an ad valorem
tax upon all taxable property in the City and
pledging the Net Revenues of the City• s Sewer
System for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters incident
and related to the issuance, sale, security,
payment and delivery of said Certificates,
including the approval and distribution of an
Official Statement pertaining thereto; and
providing an effective date.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by Councilman Phillips and
seconded byMayor ProTem Patterson the ordinance was duly passed and
adopted by the Council on second and final reading by the
following vote:
z voted "For" --~a __ voted "Against" 0 abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 21st day
of November, 1991.
~~~
City of Lubbock, Texas
(City Seal)
-2-
6 6 8 I£
ORDINANCE NO. ~9~4~9~1 ____ __
First Reading
November 14, 1991
Item #27
Second Reading
November 21, 1991
Item #6
AN ORDINANCE authorizing the issuance of •ciTY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991•; levying an ad valorem
tax upon a 11 taxable property in the City and
pledging the Net Revenues of the City• s Sewer
System for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters incident
and related to the issuance, sale, security,
payment and delivery of said Certificates,
including the approval and distribution of an
Official Statement pertaining thereto; and
providing an effective date.
WHEREAS, notice of the City Council's intention to issue
certificates of obligation in the maximum principal amount of
$1,655,000 for the purpose of paying contractual obligations to
be incurred for (i) constructing improvements and extensions to
the City's Wastewater Treatment System, to wit: replacement of
an existing effluent pipeline and (ii) professional services
rendered in connection therewith, has been duly published in
the Lubbock Avalanche-Journa 1, a newspaper hereby found and
determined to be of general circulation in the City of Lubbock,
Texas, on October 13, 1991 and October 20, 1991, the date of
the first publication of such notice being not less than
fifteen (15) days prior to the tentative date "stated therein~-"
for the passage of the ordinance authorizing the issuance of
such certificates; and
WHEREAS, no petition, protesting the issuance of such
certificates and bearing valid petition signatures of at least
5\ of the qualified voters of the City, has been filed with the
City Secretary, any member of the Council or any other official
of the City on or prior to the date of the passage of this
ordinance; and
WHEREAS, the Council hereby finds and determines that all
of the certificates of obligation described in such notice
should be issued and sold at this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: Authorization-Designation-Principal Amount-
Purpose. Certificates of obligation of the City shall be and
are hereby authorized to be issued in the aggregate principal
amount of $1,655,000 to be designated and bear the title •ciTY
OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE
,..
LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991" (the
•certificates•), for the purpose of paying contractual
obligations to be incurred for (i) constructinq improvements
and extensions to the Ci ty• s Wastewater Treatment System, to
wit: replacement of an existing effluent pipeline and (ii)
professional services rendered in connection therewith,
pursuant to authority conferred by and in conformity with the
Constitution and laws of the State of Texas, including
V.T.C.A., Local Government Code, Subchapter C of Chapter 271.
SECTION 2: Fully Registered Obligations -Authorized
Denominations-Stated Maturities-Date. The Certificates are
issuable in fully registered form only; shall be dated
November 15, 1991 (the "Certificate Date") and shall be in
denominations of $5,000 or any integral multiple thereof and
the Certificates shall become due and payable on February 15 in
each of the years and in principal amounts (the "Stated
Maturi ties•) and bear interest at the per annum rate(s) in
accordance with the following schedule:
Year of Principal Interest
Stated Maturity Amount Rate
1993 80,000 5.50\
1994 80,000 5.50\
1995 80,000 5.50\
1996 80,000 5.50\
1997 80,000 5.50\
1998 80,000 5.50\
1999 80,000 5.50\
2000 80,000 5.50\
2001 80,000 5.50\
2002 85,000 5.50\
2003 85,000 5.50\
2004 85,000 5.50\
2005 85,000 5.50\
2006 85,000 5.50\
2007 85,000 5.50\
2008 85,000 5.50\
2009 85,000 5.50\
2010 85,000 5.50\
2011 85,000 5.50\
2012 85,000 5.50\
The Certificates shall bear interest on the unpaid
principal amount thereof from the date of delivery to the
initial purchasers thereof (which date shall be the
registration date noted on the Initial Certificates in the
"Registration Certificate of Paying Aqent/Registrar• to appear
thereon) at the per annum rate(s) shown above in this Section,
-2-
,...
and such interest shall be calculated on the basis of a 360-day
year of twelve 30-day months. Interest on the Certificates
shall be payable on February 15 and August 15 in each year,
commencing August 15, 1992.
SECTION 3: Terms of Payment-Paying Agent/Registrar.
The principa 1 of, premium, if any, and the interest on the
certificates, due and payable by reason of maturity or
redemption or otherwise, shall be payable only to the
registered owners or holders of the Certificates (hereinafter
called the •Holders") appearing on the registration and
transfer books (the •security Register•) maintained by the
Paying Agent/Registrar and the payment thereof shall be in any
coin or currency of the United States of America, which at the
time of payment is legal tender for the payment of public and
private debts, and shall be without exchange or collection
charges to the Holders.
Interest on each Certificate issued and delivered to a
Holder shall accrue from the latest interest payment date that
interest on such Certificate (or its Predecessor Certificate)
has been paid that precedes the registration date appearing on
such Certificate in the •Registration Certificate of Paying
Agent/Registrar• (Section 80 hereof), unless the registration
date appearing thereon is an interest payment date for which
interest is being paid, in which case interest on such
certificate shall accrue from the registration date appearing
thereon and provided further that with respect to the initial
payment of interest on a Certificate, such interest shall
accrue from the date of delivery of the Certificates (or its
Predecessor Certificate) to the initial purchasers thereof.
The selection and appointment of Ameritrust Texas National
Association, Austin, Texas to serve as Paying Agent/Registrar
for the Certificates is hereby approved and confirmed and the
City agrees and covenants to be kept and maintained at the
principal office of the Paying Agent/Registrar books and
records for the registration, payment and transfer of the
Certificates (the •security Register•), all as provided herein,
in accordance with the terms and provisions of a •Paying
Agent/Registrar Agreement• substantially in the form attached
hereto as Exhibit A and such reasonable rules and regulations
as the Paying Agent/Registrar and City may prescribe; and the
Mayor and City Secretary are autho~ized to execute and deliver
such Agreement in connection with the delivery of the
Certificates. The City covenants to maintain and provide a
Paying Agent/Registrar at all times until the Certificates are
paid and discharged, and any successor Paying Agent/Registrar
shall be a bank, trust company, financial institution or other
entity qualified and authorized to serve in such capacity and
-3-
perform the duties and services of Paying Agent/Registrar.
Upon any change in the Paying Agent/Registrar for the
Certificates, the City agrees to promptly cause a written
notice thereof to be sent to each Holder by United States Mail,
first class postage prepaid, which notice shall also give the
address of the new Paying Agent/Registrar.
Principal of and premium, if any, on the Certificates
shall be payable at the Stated Maturities or the redemption
thereof only upon presentation and surrender of the
Certificates to the Paying Agent/Registrar at its principal
office. Interest on the Certificates shall be paid by the
Paying Agent/Registrar to the Holders whose name appears in the
Security Register at the close of business on the Record Date
(the last business day of the month next preceding each
interest payment date) and payment of such interest shall be
(i) by check sent United States Mail, first class postage
prepaid, to the address of the Holder recorded in the Security
Register or (ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the Holder. If the date for the payment of the principal of or
interest on the Certificates shall be a Saturday, Sunday, a
legal holiday, or a day when banking institutions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day when banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
In the event of a nonpayment of interest on a scheduled
payment date, and for thirty (30) days thereafter, a new record
date for such interest payment (a "Special Record Date•) will
be established by the Paying Agent/ Registrar, if and when
funds for the payment of such interest have been received from
the City. Notice of the Special Record Date and of the
scheduled payment date of the past due interest (which shall be
15 days after the Special Record Date) shall be sent at least
five (5) business days prior to the Special Record Date by
United States Mail, first class postage prepaid, to the address
of each Holder appearing on the Security Register at the close
of business on the last business next preceding the date of
mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption. The
Certificates having Stated Maturities on and after February 15,
2003, shall be subject to redemption prior to maturity, at the
option of the City, in whole or in part, and, if in part, in
inverse annual maturity, in principal amounts of $5,000 or any
-4-
6679£
integral multiple thereof (and if within a Stated Maturity by
lot by the Paying Agent/Registrar), on February 15, 2002 or on
any date thereafter at the redemption price of par plus accrued
interest to the date of redemption.
(b) Exercise of Redemption Option. At least forty-five
(45) days prior to a redemption date for the Certificates
(unless a shorter notification period shall be satisfactory to
the Paying Agent/Registrar), the City shall notify the Paying
Agent/Registrar of the decision to redeem Certificates, the
principal amount of each Stated Maturity to be redeemed, and
the date of redemption therefor. The decision of the City to
exercise the right to redeem Certificates shall be entered in
the minutes of the governing body of the City.
(c) Selection of Certificates for Redemption. If less
than all Outstanding Certificates of the same Stated Maturity
are to be redeemed on a redemption date, the Paying
Agent/Registrar shall treat such Certificates as representing
the number of Certificates Outstanding which is obtained by
dividing the principal amount of such Certificates by $5,000
and shall select the Certificates, or principal amount thereof,
to be redeemed within such Stated Maturity by lot.
(d) Notice of Redemption. Not less than thirty (30) days
prior to a redemption date for the Certificates, a notice of
redemption shall be sent by United States Mail, first class
postage prepaid, in the name of the City and at the City's
expense, to each Holder of a Certificate to be redeemed in
whole or in part at the address of the Holder appearing on the
Security Register at the close of business on the business day
next preceding the date of mailing such notice, and any notice
of redemption so mailed shall be conclusively presumed to have
been duly given irrespective of whether received by the Holder.
All notices of redemption shall. (i) specify the date of
redemption for the Certificates, (ii) identify the Certificates
to be redeemed and, in the case of a portion of the principal
amount to be redeemed, the principal amount thereof to be
redeemed, (iii) state the redemption price, (iv) state that the
Certificates, or the portion of the principal amount thereof to
be redeemed, shall become due and payable on the redemption
date specified, and the interest thereon, or on the portion of
the principal amount thereof to be redeemed, shall cease to
accrue from and after the redemption date, and (v) specify that
payment of the redemption price for the Certificates, or the
principal amount thereof . to be redeemed, shall be made at the
principal office of the Paying Agent/Registrar only upon
presentation and surrender thereof by the Holder. If a
Certificate is subject by its terms to prior redemption and has
-5-667tE
,...
been called for redemption and notice of redemption thereof has
been duly given as hereinabove provided, such Certificate (or
the principal amount thereof to be redeemed) shall become due
and payable and interest thereon shall cease to accrue from and
after the redemption date therefor; provided moneys sufficient
for the payment of such Certificate (or of the principal amount
thereof to be redeemed) at the then applicable redemption price
are held for the purpose of such payment by the Paying
Agent/Registrar.
SECTION 5: Registration Transfer -Exchange of
Certificates-Predecessor Certificates. A Security Register
relating to the registration, payment, and transfer or exchange
of the Certificates shall at all times be kept and maintained
by the City at the principal office of the Paying
Agent/Registrar, as provided herein and in accordance with the
provisions of an agreement with the Paying Agent/Registrar and
such rules and regulations as the Paying Agent/Registrar and
the City may prescribe. The Paying Agent/Registrar shall
obtain, record, and maintain in the Security Register the name
and address of each and every owner of the Certificates issued
under and pursuant to the provisions of this Ordinance, or if
appropriate, the nominee thereof. Any Certificate may be
transferred or exchanged for Certificates of other authorized
denominations by the Holde~, in person or by his duly
authorized agent, upon surrender of such Certificate to the
Paying Agent/Registrar for cancellation, accompanied by a
written instrument of transfer or request for exchange duly
executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender of any Certificate for transfer at the
principal office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new
Certificates of authorized denominations and having the same
Stated Maturity and of a like aggregate principal amount as the
Certificate or Certificates surrendered for transfer.
At the option of the Holder, Certificates may be exchanged
for other Certificates of authorized denominations and having
the same Stated Maturity, bearing the same rate of interest and
of like aggregate principal amount as the Certificates
surrendered for exchange, upon surrender of the Certificates to
be exchanged at the principal office of the Paying Agent/
Registrar. Whenever any Certificates are surrendered for
exchange, the Paying Agent/Registrar shall register and deliver
new Certificates to the Holder requesting the exchange.
-6-
All Certificates issued in any transfer or exchange of
Certificates shall be delivered to the Holders at the principal
office of the Paying Agent/Registrar or sent by United States
Mail, first class, postage prepaid to the Holders, and, upon
the registration and delivery thereof, the same shall be the
valid obligations of the City, evidencing the same obligation
to pay, and entitled to the same benefits under this Ordinance,
as the Certificates surrendered in such transfer or exchange.
All transfers or exchanges of Certificates pursuant to
this Section shall be made without expense or service charge to
the Holder, except as otherwise herein provided, and except
that the Paying Agent/Registrar shall require payment by the
Holder requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
Certificates cancelled by reason of an exchange or
transfer pursuant to the provisions hereof are hereby defined
to be •predecessor Certificates,• evidencing all or a portion,
as the case may be, of the same obligation to pay evidenced by
the new Certificate or Certificates registered and delivered in
the exchange or transfer therefor. Additionally, the term
•predecessor Certificates• shall include any mutilated, lost,
destroyed, or stolen Certificate for which a replacement
Certificate has been issued, registered and delivered in lieu
thereof pursuant to the provisions of Section 28 hereof and
such new replacement Certificate shall be deemed to evidence
the same obligation as the mutilated, lost, destroyed, or
stolen Certificate.
Neither the City nor the Paying Agent/Registrar shall be
required to issue or transfer to an assignee of a Holder any
Certificate called for redemption, in whole or in part, within
45 days of the date fixed for the redemption of such
Certificate; provided, however, such limitation on
transferability shall not be applicable to an exchange by the
Holder of the unredeemed balance of a Certificate called for
redemption in part.
SECTION 6: Execution -Registration. The Certificates
shall be executed on behalf of the City by the Mayor under its
seal reproduced or impressed thereon and countersigned by the
City Secretary. The signature of said officers on the
Certificates may be manual or facsimile. Certificates bearing
the manual or facsimile signatures of individuals who are or
were the proper officers of the City on the Certificate Date
shall be deemed to be duly executed on behalf of the City,
notwithstanding that one or more of the individuals executing
the same shall cease to be such officer at the time of delivery
-7-
6 6 7tE
,...
of the Certificates to the initial purchaser(s) and with
respect to Certificates delivered in subsequent exchanges and
transfers, all as authorized and provided in the Bond
Procedures Act of 1981, as amended.
No Certificate shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any
purpose, unless there appears on such Certificate either a
certificate of registration substantially in the form provided
in Section ec, manually executed by the Comptroller of Public
Accounts of the State of Texas, or his duly authorized agent,
or a certificate of registration substantially in the form
provided in Section eo, manually executed by an authorized
officer, employee or representative of the Paying
Agent/Registrar, and either such certificate duly signed upon
any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly certified,
registered and delivered.
SECTION 7: Initial Certificates. For purposes of
approval of the Certificates by the Attorney General and their
registration by the Comptroller of Public Accounts of the State
of Texas and in recognition of the sources of funding for the
loan from the Texas Water Development Board noted in Section 29
hereof, two (2) fully registered Initial Certificates numbered
T-A and T-B in the aggregate principal amounts of $280,000
(Lot A) and $1,375,000 (Lot B) with the stated maturities
appearing in Exhibit B attached hereto and registered in the
name of the Texas Water Development Board (the •Board•) shall
be prepared in typewritten form and escrowed with the Paying
Agent/Registrar following approval by the Attorney General and
registration by the Comptroller of Public Accounts and pending
delivery of the Certificates to the Board. In recognition of
the requirement of the Board that funds be first advanced from
Lot A and then Lot B in ascending order of maturity when and as
costs and expenses are incurred by the City for the project and
in incremental amounts calculated to the nearest $5,000, the
aggregate principal amount of the Initial Certificate number
T-A shall first be delivered before any funds are advanced from
Initial Certificate number T-B. With each advancement of
funds, the appropriate Initial Certificate shall be modified by
the Paying Agent/Registrar noting on the •Delivery Ledger•
attached thereto (1) the date of the advance of funds, (2) the
amount of the funds advanced and (3) the principal amount
remaining to be advanced following such advancement of funds
then being made and delivering to the Board one or more
definitive Certificates equivalent to the aggregate amount of
funds advanced by the Board, such definitive Certificates to be
in the denomination of $5,000 or any integral multiple thereof
within a maturity and in order of the Stated Maturities for
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Lot A and then Lot B in accordance with Exhibit B attached
hereto, and completing the "Registration Certificate of Paying
Agent/Registrar• appearing on such definitive Certificates
delivered to the Board. Following the final advancement of
funds by the Board involving Initial Certificate T-A and T-B,
the appropriate Initial Certificate shall be cancelled by the
Paying Agent/Registrar and retained in the records of the
Paying Agent/Registrar.
SECTION 8: Forms. A. Forms Generally. The
Certificates, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Registration
Certificate of Paying Agent/Registrar, and the form of
Assignment to be printed on each of the Certificates, shall be
substantially in the forms set forth in this Section with such
appropriate insertions, omissions, substitutions, and other
variations as are permitted or required by this Ordinance and
may have such letters, numbers, or other marks of
identification (including identifying numbers and letters of
the Committee on Uniform Securities Identification Procedures
of the American Bankers Association) and such legends and
endorsements (including insurance legends in the event the
Certificates, or any maturities thereof, are purchased with
insurance and any reproduction of an opinion of counsel)
thereon as may, consistently herewith, be established by the
City or determined by the officers executing such Certificates
as evidenced by their execution. Any portion of the text of
any Certificates may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Certificate.
The definitive Certificates shall be printed,
lithographed, or engraved or produced in any other similar
manner, all as determined by the officers executing such
Certificates as evidenced by their execution, but the Initial
Certificate(s) submitted to the Attorney General of Texas may
be typewritten or photocopied or otherwise reproduced.
B. Form of Certificates.
REGISTERED
NO.
Certificate
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS,
COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE
CERTIFICATE OF OBLIGATION
SERIES 1991
Date: Interest Rate: Stated Maturity:
November 15, 1991 \
-9-6619£
REGISTERED $ ___ _
CUSIP NO:
,...
Registered Owner:
Principal Amount: DOLLARS
The City of Lubbock (hereinafter referred to as the
•city•), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the Registered Owner named above, or the registered assigns
thereof, the Principal Amount stated above, on the Stated
Maturity date specified above (or so much thereof as shall not
have been paid upon prior redemption) and to pay interest on
the unpaid Principal Amount hereof (computed on the basis of a
360-day year of twelve 30-day months) from the interest payment
date next preceding the •Registration Date• of this Certificate
appearing below (unless this Certificate bears a •Registration
Date• as of an interest payment date, in which case interest
shall accrue from such date, or unless the Registration Date of
this Certificate is the delivery date of this Certificate (or
its Predecessor Certificate) to the initial purchasers, in
which case interest shall accrue from such date of delivery to
the initial purchasers at the per annum rate of interest
specified above; such interest being payable on February 15 and
August 15 of each year, commencing August 15, 1992. Principal
of this Certificate is payable at its Stated Maturity or
redemption to the registered owner hereof, upon presentation
and surrender, at the principal office of the Paying
Agent/Registrar executing the registration certificate
appearing hereon, or its successor. Interest is payable to the
registered owner of this Certificate (or one or more
Predecessor Certificates, as defined in the Ordinance
hereinafter referenced) whose name appears on the •security
Register• maintained by the Paying Agent/Registrar at the close
of business on the •Record Date•, which is the last business
day of the month next preceding each interest payment date and
interest shall be paid by the Paying Agent/Registrar by check
sent United States Mai 1, first class postage prepaid, to the
address of the registered owner recorded in the Security
Register on the Record Date or by such other method, acceptable
to the Paying Agent/Registrar, requested by, and at the risk
and expense of, the registered owner. If the date for the
payment of the principal of or interest on the Certificates
shall be a Saturday, Sunday, a legal holiday, or a day when
banking institutions in the City where the Paying
Agent/Registrar is located are authorized by law or executive
order to close, then the date for such payment shall be the
next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when banking institutions are authorized to
close; and payment on such date shall have the same force and
effect as if made on the original date payment was due. All
-10-1179£
payments of principal of, premium, if any, and interest on this
Certificate shall be without exchange or collection charges to
the owner hereof and in any coin or currency of the United
States of America which at the time of payment is legal tender
for the payment of public and private debts.
This Certificate is one of the series specified in its
title issued in the aggregate principal amount of $1,655,000
(herein referred to as the •certificates•) for the purpose of
paying contractu a 1 obligations to be incurred for ( i)
constructing improvements and extensions to the City's
Wastewater Treatment System, to wit: replacement of an existing
effluent pipeline and (ii) professional services rendered in
connection therewith, under and in strict conformity with the
Constitution and laws of the State of Texas, particularly
V.T.C.A., Local Government Code, Subchapter c of Chapter 271,
and pursuant to an Ordinance adopted by the governing body of
the City (herein referred to as the •ordinance•).
The Certificates maturing on and after February 15, 2003,
may be redeemed prior to their Stated Maturities, at the option
of the City, in whole or in part, and, if in part, in inverse
annual maturity, in principal amounts of $5,000 or any integral
multiple thereof (and if within a Stated Maturity by lot by the
Paying Agent/Registrar), on February 15, 2002, or on any date
thereafter, at the redemption price of par, together with
accrued interest to the date of redemption and upon 30 days
prior written notice being sent by United States Mail, first
class postage prepaid, to the registered owners of the
Certificates to be redeemed, and subject to the terms and
provisions relating thereto contained in the Ordinance. If
this Certificate (or any portion of the principal sum hereof)
shall have been duly called for redemption and notice of such
redemption duly given, then upon such redemption date this
Certificate (or the portion of the principal sum hereof to be
redeemed) shall become due and payable, and interest thereon
shall cease to accrue from and after the redemption date
therefor, provided moneys for the payment of the redemption
price and the interest on the principal amount to be redeemed
to the date of redemption are held for the purpose of such
payment by the Paying Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Certificate, payment of the redemption price of
such principal amount shall be made to the registered owner
only upon presentation and surrender of this Certificate to the
Paying Agent/Registrar at its principal office and there shall
be issued, without charge therefor to the registered owner
hereof, a new Certificate or Certificates of like maturity and
interest rate in any authorized denominations provided by the
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Ordinance for the then unredeemed balance of the principal sum
hereof. If this Certificate is selected for redemption, in
whole or in part, the City and the Paying Agent/Registrar shall
not be required to transfer this Certificate to an assignee of
the registered owner within 45 days of the redemption date
therefor; provided, however, such limitation on transferability
shall not be applicable to an exchange by the registered owner
of the unredeemed balance hereof in the event of its redemption
in part.
The Certificates are payable from the proceeds of an ad
valorem tax levied, within the limitations prescribed by law,
upon all taxable property in the City and, together with the
Previously Issued Obligations (as defined in the Ordinance),
are additionally payable from and secured by a lien on and
pledge of the Net Revenues (as defined in the Ordinance) of the
City•s Sewer System (the •system•), such lien and pledge,
however, being junior and subordinate to the lien on and pledge
of the Net Revenues of the System securing the payment of
"Prior Lien Obligations• (as defined in the Ordinance)
hereafter issued by the City. In the Ordinance, the City
reserves and retains the right to issue Prior Lien Obligations
while the Certificates are outstanding without limitation as to
principal amount but subject to any terms, conditions or
restrictions as may be applicable thereto under law or
otherwise, as well as the right to issue Additional Obligations
(as defined in the Ordinance).
Reference is hereby made to the Ordinance, a copy of which
is on file in the principal office of the Paying
Agent/Registrar, and to all the provisions of which the Holder
hereof by the acceptance hereof hereby assents, for definitions
of terms; the description of and the nature and extent of the
tax levied for the payment of the Certificates; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on the Certificates;
the nature and extent and manner of enforcement of the pledge;
the terms and conditions relating to the transfer of this
Certificate; the conditions upon which the Ordinance may be
amended or supplemented with or without the consent of the
Holders of the Certificates; the rights, duties, and
obligations of the City and the Paying Agent/Registrar; the
terms and provisions upon which the tax levy and the liens,
pledges, charges and covenants made therein may be discharged
at or prior to the maturity of this Certificate, and this
Certificate deemed to be no longer Outstanding thereunder; and
for the other terms and provisions contained therein.
Capitalized terms used herein have the meanings assigned in the
Ordinance.
-12-667tE
This Certificate, subject to certain limitations contained
in the Ordinance, may be transferred on the Security Register
only upon its presentation and surrender at the principal
office of the Paying Agent/Registrar, with the Assignment
hereon duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Paying Agent/Registrar
duly executed by, the registered owner hereof, or his duly
authorized agent. When a transfer on the Security Register
occurs, one or more fully registered Certificates of authorized
denominations and of the same aggregate principal amount will
be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of
either, may treat the registered owner hereof whose name
appears on the Security Register (i) on the Record Date as the
owner entitled to payment of interest hereon, (ii) on the date
of surrender of this Certificate as the owner entitled to
payment of principal hereof at its Stated Maturity or its
redemption, in whole or in part, and (iii) on any other date as
the owner for all other purposes, and neither the City nor the
Paying Agent/Registrar, or any agent of either, shall be
affected by notice to the contrary. In the event of
nonpayment of interest on a scheduled payment date and for
thirty (30) days thereafter, a new record date for such
interest payment (a •special Record Date•) will be established
by the Paying Agent/Registrar, if and when funds for the
payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment
date of the past due interest (which shall be 15 days after the
Special Record Date) shall be sent at least five (5) business
days prior to the Special Record Date by United States Mail,
first class postage prepaid, to the address of each Holder
appearing on the Security Register at the close of business on
the last business day next preceding the date of mailing of
such notice.
It is hereby certified, recited, represented and
covenanted that the City is a body corporate and political
subdivision duly organized and legally existing under and by
virtue of the Constitution and laws of the State of Texas; that
the issuance of the Certificates is duly authorized by law;
that all acts, conditions and things required to exist and be
done precedent to and in the issuance of the Certificates to
render the same lawful and valid obligations of the City have
been properly done, have happened and have been performed in
regular and due time, form and manner as required by the
Constitution and laws of the State of Texas, and the Ordinance;
that the Certificates do not exceed any constitutional or
statutory limitation; and that due provision has been made for
the payment of the principal of and interest on the
Certificates by the levy of a tax and a pledge of the Net
Revenues of the System as aforestated. In case any provision
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,...
,..
'
in this Certificate or any application thereof shall be
invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions and applications
shall not in any way be affected or impaired thereby. The
terms and provisions of this Certificate and the Ordinance
shall be construed in accordance with and shall be governed by
the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has
caused this Certificate to be duly executed under the official
seal of the City as of the Certificate Date.
CITY OF LUBBOCK, TEXAS
COUNTERSIGNED: Mayor
City Secretary
(SEAL)
c. * Form of Registration Certificate of Comptroller of
Public Accounts to Appear on Initial Certificate(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE-COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
§
§
§
§
REGISTER NO.
I HEREBY CERTIFY that this Certificate has been examined,
certified as to validity and approved by the Attorney General
of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this
---------------------------·
Comptroller of Public Accounts
(SEAL) of the State of Texas
*NOTE TO PRINTER: Do not print on definitive Certificates
-14-I I 7t E
D. Form of Certificate of Paying Agent/Registrar to
Appear on definitive Certificates.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate has been duly issued and registered under
the provisions of the within-mentioned Ordinance; the
certificate or certificates of the above entitled and
designated series originally delivered having been approved by
the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of
the Paying Agent/Registrar.
AMERITRUST TEXAS NATIONAL
ASSOCIATION
Austin, Texas
as Paying Agent/Registrar
Registration Date:
By ~~--~~~~--------------Authorized Signature
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns,
and transfers unto (Print or typewrite name, address, and zip
code of transferee:) ......................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• • . . • • • • • . • . (Socia 1 Security or other identifying number:
••••.••••.••..••..•........•• )the within Certificate and all
rights thereunder, and hereby irrevocably constitutes and
appoints ..................................................... .
attorney to transfer the within Certificate on the books kept
for registration thereof, with full power of substitution in
the premises.
DATED: . . . . . . . . . . . . . . . . . .
Signature guaranteed:
. . . . . . . . . . . . . . . . . . . . . . . .
I I 7 t E
. . . . . . . . . . . ~ . . . . . . . . . . . . . . . . . . . . . . .
NOTICE: The signature on this
assignment must correspond with the
name of the registered owner as it
appears on the face of the within
Certificate in every particular.
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F. The Initial Certificates shall be in the form set
forth in paragraph B of this Section, except that the
form of the fully registered Initial Certificates shall
be modified as follows:
(i) immediately under the name of the certificate the
headings •tnterest Rate • and •stated
Maturity • shall both be omitted;
(ii) paragraph one shall read as follows:
Registered owner:
Principal Amount: Dollars
The City of Lubbock (hereinafter referred to as the
•city•), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the Registered owner named above, or the registered assigns
thereof, the Principal Amount hereinabove stated, on
February 15 in each of the years and in principal installments
in accordance with the following schedule:
PRINCIPAL
INSTALLMENTS
(Information to be inserted from
schedule in Exhibit B hereof).
INTEREST
RATE
{or so much principal thereof as shall not have been prepaid
prior to maturity) and to pay interest on the unpaid Principal
Amount hereof computed on the basis of a 360-day year of twelve
30-day months at the per annum rates of interest specified
above; such interest to accrue on such principal installment
amounts when and as such amounts, or portions thereof, are
advanced to the City by the initial purchasers and to be
payable on February 15 and August 15 of each year, commencing
August 15, 1992. Principal installments of this Certificate
are payable in the year of maturity or on a prepayment date to
the registered owner hereof, upon its presentation and
surrender at the principal office of Ameritrust Texas National
Association, Austin, Texas (the •paying Agent/Registrar•).
Interest is payable to the registered owner of this Certificate
whose name appears on the •security Register• maintained by the
Paying Agent/Registrar at the close of business on the •Record
Date•, which is the last business day of the month next
preceding each interest payment date hereof and interest shall
be paid by the Paying Agent/Registrar by check sent United
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States Mail, first class postage prepaid, to the address of the
registered owner recorded in the Security Register or by such
other method, acceptable to the Paying Agent/ Registrar,
requested by, and at the risk and expense of, the registered
owner. If the date for the payment of the principal of or
interest on the Certificates shall be a Saturday, Sunday, a
legal holiday, or a day when banking institutions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day when banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due. All payments of principal of, premium, if any, and
interest on this Certificate shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
G. Form of Deliver~ Ledger to a212ear on Initial Certificates
only.
DELIVERY LEDGER
Principal
Amount
Date of Amount of Remaining
Advancement Funds to be Signature of
of Funds Advanced Advanced Bank Officer
SECTION 9: Definitions. That for purposes of this
Ordinance and for clarity with respect to the issuance of the
Certificates, and the levy of taxes and appropriation of Net
-17-,,,.£
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Revenues therefor, the following words or terms, whenever the
same appear herein without qualifying language, are defined to
mean as follows:
S67tE
(a) The term •Additional Certificates• shall
mean combination tax and revenue certificates of
obligation hereafter issued under and pursuant to the
provisions of V.T.C.A., Local Government Code,
Subchapter C of Chapter 271, or similar law hereafter
enacted and payable from ad valorem taxes and
additionally payable from and secured by a lien on
and pledge of the Net Revenues of the System on a
parity with and of equal rank and dignity with the
lien and pledge securing the payment of the
Certificates.
(b) The term •certificates• shall mean
$1,655,000 "CITY OF LUBBOCK, TEXAS, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1991" authorized
by this Ordinance.
(c) The term •certificate Fund" shall mean the
special Fund created and established under the
provisions of Section 10 of this Ordinance.
(d) The term •collection Date• shall mean, when
reference is being made to the levy and collection of
annual ad valorem taxes, the date annual ad valorem
taxes levied each year by the City become delinquent.
(e) The term "Fiscal Year• shall mean the annual
financial accounting period used with respect to the
operations of the System now ending on September 30th
of each year; provided, however, the City Council may
change, by ordinance duly passed, such annual
financial accounting period to end on another date if
such change is found and determined to be necessary
for budgetary or other fiscal purposes.
(f) The term •Government Obligations• shall mean
direct obligations of the United States of America,
including obligations the principal of and interest
on which are unconditionally guaranteed by the United
States of America, and the United States Treasury
obligations such as its State and Local Government
Series in book-entry form.
(g) The term "Gross Revenues• shall mean, with
respect to any period, all income, revenues and
receipts received from the operation and ownership of
the System.
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(h) The term "Net Revenues" shall mean the Gross
Revenues of the System, with respect to any period,
after deducting the System • s Operating and
Maintenance Expenses during such period.
( i) The term "Operating and Maintenance
Expenses• shall mean all reasonable and necessary
expenses directly related and attributable to the
operation and maintenance of the System, including,
but not limited to, the cost of insurance, the
purchase and carrying of stores, materials, and
supplies, the payment of salaries and labor, and
other expenses reasonably and properly charged, under
generally accepted accounting principles, to the
operation and maintenance of the System.
Depreciation charges on equipment, machinery, plants
and other facilities comprising the System and
expenditures classed under generally accepted
accounting principles as capital expenditures shall
not be considered as "Operating and Maintenance
Expenses" for purposes of determining "Net Revenues•.
(j) The term "Outstanding• when used in this
Ordinance with respect to Certificates means, as of
the date of determination, all Certificates
theretofore issued and delivered under this
Ordinance, except:
(1) those Certificates cancelled by
the Paying Agent/Registrar or delivered to
the Paying Agent/Registrar for cancellation;
(2) those Certificates deemed to be
duly paid by the City in accordance with the
provisions of Section 23 hereof by the
irrevocable deposit with the Paying
Agent/Registrar, or an authorized escrow
agent, of money or Government Securities, or
both, in the amount necessary to fully pay
the principal of, premium, if any, and
interest thereon to maturity or redemption,
as the case may be, provided that, if such
Certificates are to be redeemed, notice of
redemption thereof shall have been duly
given pursuant to this Ordinance or
irrevocably provided to be given to the
satisfaction of the Paying Agent/Registrar
or waived; and
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(3) those Certificates that have been
mutilated, destroyed, lost, or stolen and
replacement Certificates have been
registered and delivered in lieu thereof as
provided in Section 27 hereof.
(k) The term •previously Issued Obligations"
shall mean (i) the outstanding "City of Lubbock,
Texas, Combination Tax and Sewer System Subordinate
Lien Revenue Refunding Bonds, Series 1988," and (ii)
the outstanding "City of Lubbock, Texas, Combination
Tax and Sewer System Subordinate Lien Revenue
Certificates of Obligation, Series 1988."
(1) The term "Prior Lien Obligations• shall mean
all bonds or other similar obligations hereafter
issued that are payable in whole or in part from and
secured by a lien on and pledge of the Net Revenues
of the System and such lien and pledge securing the
payment thereof is prior and superior in claim, rank
and dignity to the lien and pledge of the Net
Revenues securing the payment of the Certificates.
(m) The term "Similarly Secured Obligations•
shall mean collectively the Certificates, the
Previously Issued Obligations, and any Additional
Certificates.
(n) The term •system• shall mean the City•s
sanitary sewer system, being all sanitary sewage
collection system, ground storage facilities,
effluent disposal and treatment facilities and/or
other works and equipment.
SECTION 10: Certificate Fund. That, for the purpose of
paying the interest on and to provide a sinking fund for the
payment and retirement of the Certificates, there shall be and
is hereby created a special Fund to be designated •sPECIAL 1991
CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION FUND", which
Fund shall be kept and maintained at the City's depository
bank, and moneys deposited in said Fund shall be used for no
other purpose. Proper officers of the City are hereby
authorized and .directed to cause to be transferred to the
Paying Agent for the Certificates, from funds on deposit in the
Certificate Fund, amounts sufficient to fully pay and discharge
promptly each installment of interest and principal of the
Certificates as the same accrues or matures or comes due by
reason of redemption prior to maturity; such transfers of funds
to be made in such manner as will cause immediately available
-20-661tlt
funds to be deposited with the Paying Agent for the
Certificates at the close of business on the last business day
next preceding each interest and/or principal payment date for
the Certificates.
Pending the transfer of funds to the Paying
Agent/Registrar, money in the Certificate Fund may, at the
option of the City, be invested in obligations identified in,
and in accordance with the provisions of the •Public Funds
Investment Act of 1987• relating to the investment of •bond
proceeds•; provided that all such investments shall be made in
such a manner that the money required to be expended from said
Fund will be available at the proper time or times. All
interest and income derived from deposits and investments in
said Certificate Fund shall be credited to, and any losses
debited to, the said Certificate Fund. All such investments
shall be sold promptly when necessary to prevent any default in
connection with the Certificates.
SECTION 11: Tax Levy. That to provide for the payment
of the •Debt Service Requirements• on the Certificates being
(i) the interest on said Certificates and (ii) a sinking fund
for their redemption at maturity or a sinking fund of 2\
(whichever amount shall be the greater), there shall be and
there is hereby levied for the current year and each succeeding
year thereafter while said Certificates or any interest thereon
shall remain Outstanding, a sufficient tax on each one hundred
dollars • valuation of taxable property in said City, adequate
to pay such Debt Service Requir.ements, full allowance being
made for delinquencies and costs of collection; said tax shall
be assessed and collected each year and applied to the payment
of the Debt Service Requirements, and the same shall not be
diverted to any other purpose. The taxes so levied and
collected shall be deposited into the Certificate Fund. This
governing body hereby declares its purpose and intent to
provide and levy a tax legally and fully sufficient to pay the
said Debt Service Requirements, it having been determined that
the existing and available taxing authority of the City for
such purpose is adequate to permit a legally sufficient tax in
consideration of all other outstanding indebtedness.
The amount of taxes to be provided annually for the
payment of the principal of and interest on the Certificates
herein authorized to be issued shall be determined and
accomplished in the following manner:
(a) Prior to the date the City Council establishes the
annual tax rate and passes an ordinance levying ad valorem
taxes each year, the City Council shall determine:
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(1) The amount on deposit in the Certificate
Fund after (a) deducting therefrom the total amount
of Debt Service Requirements to become due on
Certificates prior to the Collection Date for the
ad valorem taxes to be levied and (b) adding thereto
the amount of Net Revenues of the System appropriated
and allocated to pay such Debt Service Requirements
prior to the Collection Date for the ad valorem taxes
to be levied.
(2) The amount of Net Revenues if any,
appropriated and to be set aside for the payment of
the Debt Service Requirements on .. the Certificates
between the Collection Date for the taxes then to be
levied and the Collection Date for the taxes to be
levied during the next succeeding calendar year.
(3) The amount of Debt Service Requirements to
become due and payable on the Certificates between
the Collection Date for the taxes then to be levied
and the Collection Date for the taxes to be levied
during the next succeeding calendar year.
(b) The amount of taxes to be levied annually each year to
pay the Debt Service Requirements on the Certificates shall be
the amount established in paragraph (3) above less the sum
total of the amounts established in paragraphs (l)and (2),
after taking into consideration delinquencies and costs of
collecting such annual taxes.
SECTION 12: Pledge of Revenues. The City hereby
covenants and agrees that, subject only to a prior lien on and
pledge of the Net Revenues of the System for the payment and
security of Prior Lien Obligations, the Net Revenues of the
System, with the exception of those in excess of the amounts
required to be deposited to the Certificate Fund as hereafter
provided, are hereby irrevocably pledged, equally and ratably,
to the payment of the principal of and interest on the
Similarly Secured Obligations as herein provided, and the
pledge of the Net Revenues of the System herein made for the
payment of the Certificates shall constitute a lien on the Net
Revenues of the System in accordance with the terms and
provisions hereof and be valid and binding without further
action by the City and without any filing or recording except
for the filing of this Ordinance in the records of the City.
SECTION 13: System Fund. The City hereby reaffirms its
covenant and agreement made in connection with the issuance of
the Previously Issued Obligations that all Gross Revenues
(excluding earnings from the investment of money held in any
-22-667t£
special funds or accounts created for the payment and security
of Prior Lien Obligations) shall be deposited from day to day
as collected into a •city of Lubbock, Texas, Sewer System
Operating Fund• (hereinafter called •system Fund•) which Fund
shall be kept and maintained at an official depository bank of
the City. All moneys deposited in the System Fund shall be
pledged and appropriated to the extent required for the
following purposes and in the order of priority shown, to wit:
First: To the payment of all necessary and
reasonable Operating and Maintenance Expenses of the
System as defined herein or required by statute to be
a first charge on and claim against the Gross
Revenues.
Second: To the payment of the amounts required
to be deposited in the special Funds created and
established for the payment, security and benefit of
Prior Lien Obligations in accordance with the terms
and provisions of the ordinances authorizing the
issuance of Prior Lien Obligations; and
Third: Equally and ratably to the payment of
the amounts required to be deposited in the special
funds and accounts created and established for the
payment of the Similarly Secured Obligations.
Any Net Revenues remaining in the System Fund after
satisfying the foregoing payments, or making adequate and
sufficient provision for the payment thereof, may be
appropriated and used for any other City purpose now or
hereafter permitted by law.
SECTION 14: Deposits to Certificate Fund. The City
hereby covenants and agrees to cause to be deposited in the
Certificate Fund prior to each interest and principal payment
date from the Net Revenues of the System, after deduction of
all payments required to be made to special Funds or accounts
created for the payment and security of the Prior Lien
Obligations, an amount equal to one hundred per centum (100\)
of the amount required to fully pay the accrued interest and
principal of the Certificates then due and payable by reason of
maturity or redemption prior to maturity, such deposits to pay
accrued interest and principal on the Certificates to be made
in substantially equal monthly installments on or before the
last business day of each month beginning the month the
Certificates are delivered to the initial purchaser.
The monthly deposits to the Certificate Fund, as
hereinabove provided, shall be made until such time as such
Fund contains an amount equal to pay the principal of and
interest on the Certificates to maturity. Ad valorem taxes
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'6 7 t E
levied, collected and deposited in the Certificate Fund for and
on behalf of the Certificates may be taken into consideration
and reduce the amount of the monthly deposits otherwise
required to be deposited in the Certificate Fund from the Net
Revenues of the System. In addition, any proceeds of sale of
the Certificates in excess of the amount required to pay the
contractual obligations to be incurred (including change orders
to a construction contract) shall be deposited in the
Certificate Fund, which amount shall reduce the sums otherwise
required to be deposited in said Fund from ad valorem taxes and
the Net Revenues of the System.
SECTION 15: Security of Funds. All moneys on deposit in
the Funds for which this Ordinance makes provision (except any
portion thereof as may be at any time properly invested) shall
be secured in the manner and to the fullest extent required by
the laws of Texas for the security of public funds, and moneys
on deposit in such Funds shall be used only for the purposes
permitted by this Ordinance.
SECTION 16: Maintenance of System -Insurance. While
the Certificates remain Outstanding, the City covenants and
agrees to maintain and operate the System with all possible
efficiency and to maintain casualty and other insurance on the
properties of the System and its operations of a kind and in
such amounts customarily carried by municipal corporations in
the State of Texas engaged in a similar type business; and that
it will faithfully and punctually perform all duties with
reference to the System required by the Constitution and laws
of the State of Texas.
SECTION 17: Rates and Charges. The City hereby
covenants and agrees that rates and charges for services
provided by the System will be established and maintained, on
the basis of all available information and experience and with
due allowance for contingencies. that are reasonably expected
to provide Gross Revenues to pay:
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(a) Operating and Maintenance Expenses of the
System;
(b) the interest on and principal of Prior Lien
Obligations and the amounts required to be deposited
into any special Funds created and established for
the payment and security of the Prior Lien
Obligations;
(c) the amounts required to be deposited in the
special Funds or Accounts created for the payment of
the Similarly Secured Obligations;
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(d)
payable
secured
thereof.
any
from
by a
other
the
lien
legally
revenues
on the
incurred indebtedness
of the System and/or
System or the revenues
SECTION 18: Records and Accounts -Annual Audit. The
City further covenants and agrees that while any Certificates
remain Outstanding, it will keep and maintain accurate and
complete records and accounts pertaining to the ownership,
operation and maintenance of the System. The Holders of the
Certificates or any duly authorized agent or agents of such
Holders shall have the right to inspect the System and all
properties comprising the same. The City further agrees that
following the close of each Fiscal Year, it will cause an audit
of such books and accounts to be made by an independent firm of
Certified Public Accountants. Copies of each annual audit
shall be furnished to the Executive Director of the Municipal
Advisory Council of Texas at his office in Austin, Texas and to
the initial purchaser of the Certificates and any subsequent
Holder of 10\ or more in principal amount of the Certificates
Outstanding.
SECTION 19: Remedies in Event of Default. In addition
to all the rights and remedies provided by the laws of the
State of Texas, the City covenants and agrees particularly that
in the event the City (a) defaults in the payments to be made
to the Certificate Fund, or (b) defaults in the observance or
performance of any other of the covenants, conditions or
obligations set forth in this Ordinance, the owner or owners of
any of the Certificates shall be entitled to a writ of mandamus
issued by a court of proper jurisdiction compelling and
requiring the governing body of the City and other officers of
the City to observe and perform any covenant, condition or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or power,
or shall be construed to be a waiver of any such default or
acquiescense therein, and every such right and power may be
exercised from time to time and as often as may be deemed
expedient. The specific remedies herein provided shall be
cumulative of all other existing remedies and the specification
of such remedies shall not be deemed to be exclusive.
SECTION 20: Special Covenants. The City hereby further
covenants as follows:
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(a) It has the lawful power to pledge the Net
Revenues of the System supporting this issue of
Certificates and has lawfully exercised said powers
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under the Constitution and laws of the State of
Texas, including said power existing under V.T.C.A.,
Local Governmental Code, Subchapter C of Chapter 271.
(b) Other than for the payment of the
Certificates and the Previously Issued Obligations,
the Net Revenues of the System have not in any manner
been pledged to the payment of any debt or obligation
of the City or of the System.
SECTION 21: Issuance of Prior Lien Obligations and
Additional Certificates. The City hereby expressly reserves
the right to hereafter issue Prior Lien Obligations, without
limitation as to principal amount or any other limitation or
restriction.
In addition, the City reserves the right to issue
Additional Certificates, without limitation or any restriction
or condition being applicable to their issuance under the terms
of this Ordinance, payable from and secured by a lien on and
pledge of the Net Revenues of the System of equal rank and
dignity, and on a parity in all respects, with the lien thereon
and pledge thereof securing the payment of the Certificates.
SECTION 22: Subordinate to Prior Lie~/ Obligations
Covenants and Agreements. It is the intention of this
governing body and accordingly hereby recognized and stipulated
that the provisions, agreements and covenants contained herein
bearing upon the management and operations of the System and
the administering and application of revenues derived from the
operation thereof, shall to the extent possible be harmonized
with like provisions, agreements and covenants contained in
or4inances authorizing the issuance of Prior Lien Obligations,
and to the extent of any irreconciable. conflict between the
provisions contained herein and in ordinances authorizing the
issuance of Prior Lien Obligations, the provisions, agreements
and covenants contained therein shall prevail to•the extent of
such conflict and be applicable to this Ordinance but in all
respects subject to the priority of rights and benefits, if
any, conferred thereby to the holders or owners of the Prior
Lien Obligations. Notwithstanding the above, any change or
modification affecting the application of revenues derived from
the operation of the System shall not impair the obligation of
contract with respect to the pledge of revenues herein made for
the payment and security of the Certificates.
SECTION 23: Satisfaction of Obligations of City. If the
City shall pay or cause to be paid, or there shall otherwise be
paid to the Holders, the principal of, premium, if any, and
interest on the Certificates, at the times and in the manner
stipulated in this Ordinance, then the pledge of taxes levied
-26-,,7,£
and the lien on and pledge of the Net Revenues of the System
under this Ordinance and all covenants, agreements, and other
obligations of the City to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
certificates shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section
when (i) money sufficient to pay in full such Certificates or
the principal amount(s) thereof at maturity or (if notice of
redemption has been duly given or waived or if irrevocable
arrangements therefor acceptable to the Paying Agent/Registrar
have been made) the redemption date thereof, together with all
interest due thereon, shall have been irrevocably deposited
with and held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, or (ii) Government Securities shall
have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which
Government Securities have been certified by an independent
accounting firm to mature as to principal and interest in such
amounts and at such times as will insure the availability,
without reinvestment, of sufficient money, together with any
moneys deposited therewith, if any, to pay when due the
principal of and interest on such Certificates, or the
principal amount(s) thereof, on and prior to the Stated
Maturity thereof or (if notice of redemption has been duly
given or waived or if irrevocable arrangements therefor
acceptable to the Paying Agent/Registrar have been made) the
redemption date thereof. The City covenants that no deposit of
moneys or Government Securities will be made under this Section
and no use made of any such deposit which would cause the
Certificates to be treated as •arbitrage bonds• within the
meaning of Section 148 of the Internal Revenue Code of 1986, as
amended, or regulations adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar
and all income from Government Securities held in trust by the
Paying Agent/Registrar, or an authorized escrow agent, pursuant
to this Section which is not required for the payment of the
Certificates, or any principal amount(s) thereof, or interest
thereon with respect to which such moneys have been so
deposited shall be remitted to the City or deposited as
directed by the City. Furthermore, any money held by the
Paying Agent/Registrar for the payment of the principal of and
interest on the Certificates and remaining unclaimed for a
period of four (4) years after the maturity, or applicable
redemption date, of the Certificates such moneys were deposited
and are held in trust to pay shall upon the request of the City
be. remitted to the City against a written receipt therefor.
Notwithstanding the above and foregoing, any remittance of
funds from the Paying Agent/Registrar to the City shall be
subject to any applicable unclaimed property laws of the State
of Texas.
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-
SECTION 24: Ordinance a Contract Amendments. This
Ordinance shall constitute a contract with the Holders from
time to time, be binding on the City, and shall not be amended
or repealed by the City so long as any Certificate remains
Outstanding except as permitted in this Section. The City,
may, without the consent of or notice to any Holders of the
Certificates, from time to time and at any time, amend this
Ordinance in any manner not detrimental to the interests of the
Holders of the Certificates, including the curing of any
ambiguity, inconsistency, or formal defect or omission herein.
In addition, the City may, with the written consent of Holders
of the Certificates holding a majority in aggregate principal
amount of the Certificates then Outstanding affected thereby,
amend, add to, or rescind any of the provisions of this
Ordinance; provided that, without the consent of all Holders of
Outstanding Certificates, no such amendment, addition, or
rescission shall (l) extend the time or times of payment of the
principal of, premium, if any, and interest on the
Certificates, reduce the principal amount thereof, the
redemption price, or the rate of interest thereon, or in any
other way modify the terms of payment of the principal of,
premium, if any, or interest on the Certificates, (2) give any
preference to any Certificate over any other Certificate, or
(3) reduce the aggregate principal amount of Certificates
required to be held by Holders for consent to any such
amendment, addition, or rescission.
SECTION 25: Notices to Holders -Waivers. Wherever this
Ordinance provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States
Mail, first class postage prepaid, to the address of each
Holder appearing in the Security Register at the close of
business on the business day next preceding the mailing of such
notice.
In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holders, nor any defect in any notice so mailed, shall affect
the sufficiency of such notice with respect to all other
Certificates. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder
entitled to receive such notice, either before or after the
event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Paying
Agent/Registrar, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon
such waiver.
-28-
SECTION 26: Cancellation. Certificates surrendered for
payment, redemption, transfer, or exchange, if surrendered to
the Paying Agent/Registrar, shall be promptly cancelled by it
and, if surrendered to the City, shall be delivered to the
Paying Agent/Registrar and, if not already cancelled, shall be
promptly cancelled by the Paying Agent/Registrar. The City may
at any time deliver to the Paying Agent/Registrar for
cancellation any Certificates previously certified or
registered and delivered which the City may have acquired in
any manner whatsoever, and all Certificates so delivered shall
be promptly cancelled by the Paying Agent/Registrar. All
cancelled Certificates held by the Paying Agent/Registrar shall
be returned to the City.
SECTION 27: Mutilated, Destroyed, Lost and Stolen Certi-
ficates. In case any Certificate shall be mutilated, or
destroyed, lost or stolen, the Paying Agent/Registrar may
execute and deliver a replacement Certificate of like form and
tenor, and in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for
such mutilated Certificate, or in lieu of and in substitution
for such destroyed, lost or stolen Certificate, only upon the
approval of the City and after (i) the filing by the Holder
thereof with the Paying Agent/Registrar of evidence
satisfactory to the Paying Agent/Registrar of the destruction,
loss or theft of such Certificate, and of the authenticity of
the ownership thereof and (ii) the furnishing to the Paying
Agent/Registrar of indemnification in an amount satisfactory to
bold the City and the Paying Agent/Registrar harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution and delivery of a replacement
Certificate shall be borne by the Holder of the Certificate
mutilated, or destroyed, lost or stolen.
Every replacement Certificate issued pursuant to this
Section shall be a valid and binding obligation, and shall be
entitled to all the benefits of this Ordinance equally and
ratably with all other Outstanding Certificates;
notwithstanding the enforceability of payment by anyone of the
destroyed, lost or stolen Certificates.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated,
destroyed, lost, or stolen Certificates.
SECTION 28: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section 28, the
following terms have the following meanings:
-29-6679£
•code" means the Internal Revenue Code of 1986,
as amended by all legislation, if any, enacted on or
before the date of delivery of the Certificates to
the initial purchaser(s) thereof.
•computation Date• has the meaning stated in
Treas. Reg. § 1.148-8T(b)(l).
"Gross Proceeds" has the meaning stated in
Treas. Reg. § 1.148-8T(d).
• Investment• has the meaning stated in Treas.
Reg. § 1.148-8T(e).
"Net Proceeds" of the Certificates means the
proceeds of the Certificates.
"Nonpurpose Investment• means any Investment in
which Gross Proceeds of the Certificates are invested
and which is not acquired to carry out the
governmental purpose of the Certificates.
"Reba table Arbi trage• has the meaning stated in
Treas. Reg. S 1.148-2T.
(1) any Investment shall be computed
in accordance with Treas. Reg. §1.148-2T,
and
(2) the Certificates has the meaning
stated in Treas. Reg. § 1.148-3T.
(b) Not to Cause Interest to Become Taxable. The City
shall not use, permit the use of, or omit to use Gross Proceeds
or any other amounts (or any property the acquisition,
construction, or improvement of which 1s to be financed
directly or indirectly with Gross Proceeds) in a manner which,
if made or omitted, respectively, would cause the interest on
any Certificate to become includable in the gross income, as
defined in section 61 of the Code, of the owner thereof for
federal income tax purposes. Without limiting the generality
of the foregoing, unless and until the City shall have received
a written opinion of counsel nationally recognized in the field
of municipal bond law to the effect that failure to comply with
such covenant will not adversely affect the exclusion of
interest on any Certificate from gross income for federal
income tax purposes pursuant to Section 103 of the Code, the
City shall comply with each of the specific covenants in this
Section.
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(c) No Private Use or Private Payments. Proceeds of the
Certificates and the facilities financed with the proceeds of
the Certificates will not be used in a manner that would cause
the Certificates to be "private activity bonds, • as that term
is defined in section 141 of the Code. Except as permitted by
section 141 of the Code and the regulations and rulings
thereunder, the City shall, at all times prior to the last
Stated Maturity of Certificates,
(1) exclusively own, operate, and possess all
property the acquisition, construction, or improvement of
which is to be financed directly or indirectly with Gross
Proceeds of the Certificates and not use or permit the use
of such Gross Proceeds or any property acquired,
constructed, or improved with such Gross Proceeds in any
activity carried on by any person or entity other than a
state or local government, unless such use is solely as a
member of the general public, or
(2) not directly or indirectly impose or accept any
charge or other payment for use of Gross Proceeds of the
Certificates or any property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with such Gross Proceeds, other
than taxes of general application within the City or
interest earned on investments acquired with such Gross
Proceeds pending application for their intended purposes.
(d) No Private Loan. Except to the extent permitted by
section 141 of the Code and the regulations and rulings
thereunder, the City shall not use Gross Proceeds of the
Certificates to make or finance loans to any person or entity
other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be
"loaned" to a person or entity if (1) property acquired,
constructed, or improved with such Gross Proceeds is sold or
leased to such person or entity in a transaction which creates
a debt for federal income tax purposes, (2) capacity in or
service from such property is committed to such person or
entity under a take-or-pay, output, or similar contract or
arrangement, or (3) indirect benefits, or burdens and benefits
of ownership, of such Gross Proceeds or any property acquired,
constructed, or improved with such Gross Proceeds are otherwise
transferred in a transaction which is the economic equivalent
of a loan.
(e) Not to Invest at Higher Yield. Except to the extent
permitted by section 148 of the Code and the regulations and
rulings thereunder, the City shall not, at any time prior to
the final Stated Maturity of the certificates, directly or
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'' 79£
indirectly invest Gross Proceeds of the Certificates in any
Investment (or use such Gross Proceeds to replace money so
invested), if as a result of such investment the Yield of all
Investments allocated to such Gross Proceeds whether then held
or previously disposed of, exceeds the Yield of the
Certificates.
(f) Not Federally Guaranteed. Except to the extent
permitted by section 149(b) of the Code and the regulations and
rulings thereunder, the City shall not take or omit to take any
action which would cause the Certificates to be federally
guaranteed within the meaning of Section 149(b) of the Code and
the regulations and rulings thereunder.
(g) Information Report. The City shall timely file with
the secretary of the Treasury the information required by
section 149(e) of the Code with respect to the Certificates on
such form and in such place as such Secretary may prescribe.
(h) Payment of Rebatable Arbitrage. Except to the extent
otherwise provided in section 148(f) of the Code and the
regulations and rulings thereunder,
(1) The City shall account for all Gross Proceeds of
the Certificates (including all receipts, expenditures,
and investments thereof) on its books of account
separately and apart from all other funds (and receipts,
expenditures, and investments thereof) and shall maintain
all records of such accounting with the official
transcript of the proceedings relating to the issuance of
the Certificates until six years after the final
Computation Date. The City may, however, to the extent
permitted by law, commingle Gross Proceeds of the
Certificates with other money of the City, provided that
the City separately accounts for each receipt and
expenditure of such Gross Proceeds and the obligations
acquired therewith.
4i 4i 7 t E
(2) Not less frequently than each Computation Date,
the City shall either (i) cause to be calculated by a
nationally recognized accounting or financial advisory
firm or (ii) calculate and cause its calculations to be
verified by a nationally recognized accounting or
financial advisory firm, in either case in accordance with
rules set forth in section 148(f) of the Code and
Treas. Reg. § 1.148-2T and rulings thereunder, the
Rebatable Arbitrage with respect to the Certificates. The
City shall maintain such calculations with the official
transcript of the proceedings relating to the issuance of
the Certificates until six years after the final
Computation Date.
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(3) As additional consideration for the purchase of
the Certificates by the initial purchasers thereof and the
loan of the money represented thereby, and in order to
induce such purchase by measures designed to result in the
excludability of the interest thereon from the gross
income of the owners thereof for federal income tax
purposes, the City shall pay to the United States the
amount described in paragraph (2) above and the amount
described in paragraph (4) below, at the times, in the
installments, to the place, in the manner, and accompanied
by such forms or other information as is or may be
required by section 148(f) of the Code and
Treas. Reg. §§ 1.148-lT through 1.148-9T and rulings
thereunder.
(4) The City shall exercise reasonable diligence to
assure that no errors are made in the calculations
required by paragraph (2) and, if such error is made, to
discover and promptly to correct such error within a
reasonable amount of time thereafter, including payment to
the United States of any Correction Amount as described in
Treas. Reg. § 1.148-1T(c)(2) and any penalty under Treas.
Reg. § 1.148-1T(c)(3)(ii)(B).
SECTION 29: Sale of the Certificates. The sale of the
Certificates to the Texas Water Development Board (herein
referred to as the "Purchasers• or the •Board•) at the price of
par is hereby approved and confirmed. Delivery of the
Certificates to the Purchasers shall occur as soon as possible
upon payment being made therefor in accordance with the terms
of sale.
The Certificates will be delivered to the Purchasers in
two lots according to the sources of funding for the loan as
set forth in Exhibit B attached hereto. Certificates in Lot A
will first be delivered to the Board, in ascending order of the
Stated Maturities, until the total principal amount of $280,000
in Certificates of Lot A has been delivered. When all
Certificates of Lot A have been delivered, installment
deliveries for Lot B will begin, in ascending order of the
Stated Maturities, until the total principal amount of
$1,375,000 in Certificates of Lot B has been delivered.
SECTION 30: Proceeds of Sale; Construction Fund. The
City hereby creates a construction fund account in the City's
depository bank, which is known as the •construction Fund•,
into which shall be deposited all proceeds derived from the
sale of the Certificates, all in accordance with Section 32 of
this Ordinance and this Section. To the extent of conflict
between this Section and Section 32, Section 32 controls.
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Moneys on deposit in the Construction Fund shall be
disbursed only for payment of the costs of the project
financed. All expenditures for construction, labor and
materials shall be disbursed only upon receipt of a certificate
of Black & Veatch Engineers, the engineer named in the City's
Application to the Board, or of a substitute engineer
acceptable to the Board, based upon estimates of work and
material furnished as approved by them and submitted to the
City and the City's engineer for approval prior to payment.
The City shall keep records of the nature and amount of all
Construction Fund expenditures and make the same available to
the engineers at all reasonable times. Should there be any
balance in the Construction Fund after all such costs of the
Project have been paid, such balance shall be placed in the
Certificate Fund.
Subject to the limitations of the Public Funds Investment
Act of 1987, moneys in the Construction Fund may be invested in
one or more of the following (a) Government Obligations,
(b) certificates of deposit of any bank or trust company which
are fully secured by a pledge of direct obligations of, or
obligations of which the principal and interest are guaranteed
by, the United States of America to the extent such
certificates are not insured, which obligations shall mature on
dates which coincide as closely as practicable to the dates
when money will be needed to pay construction costs as such
dates are estimated in schedules prepared by the engineer and
furnished the City. All earnings realized from these
investments shall be transferred to the Certificate Fund.
SECTION 31: Control and Custody of Certificates. The
Mayor of the City shall be and is hereby authorized to take and
have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas,
including the printing of the Certificates, and shall take and
have charge and control of the Certificates pending the
approval thereof by the Attorney General, the registration
thereof by the Comptroller of Public Accounts and the delivery
thereof to the Purchasers.
Furthermore, the Mayor, City Secretary, City Manager, and
Assistant City Manager for Financial Services, any one or more
of said officials, are hereby authorized and directed to
furnish and execute such documents and certifications relating
to the City and the issuance of the Certificates, ·including a
certification as to facts, estimates. circumstances and
reasonable expectations pertaining to the use and expenditure
and investment of the proceeds of the Certificates as may be
necessary for the approval of the Attorney General,
registration by the Comptroller of Public Accounts and delivery
of the Certificates to the purchasers thereof and, together
with the City's financial advisor, bond counsel and the Paying
Agent/ Registrar, make the necessary arrangements for the
delivery of the Initial Certificate to the purchasers.
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SECTION 32: Compliance with State Revolving Loan Fund
Rules. In compliance with the State Revolving Loan Fund
Permanent Rules of the Board, the City agrees and covenants:
( 1) to keep and maintain full and complete records and
accounts pertaining to the construction of the project financed
with the proceeds of sale of the Certificates, including the
construction fund account created below, in accordance with the
standards set forth by the Government Accounting Standard Board;
(2) a "Special City of Lubbock SRF Loan Construction
Fund• has been created and established by Section 30 of this
Ordinance at an official depository of the City (the
•construction Fund") for the receipt and disbursement of all
proceeds from the sale of the Certificates and all other funds
acquired by the City in connection with the planning and
construction of the projects financed, in whole or in part, by
the Board pursuant to a loan evidenced by the Certificates and
all funds deposited to the credit of the Construction Fund
shall be disbursed only for the payment of costs and expenses
incurred in connection with the planning and building of such
projects as approved by the Board and as otherwise allowed by
the rules;
(3) upon completion of the construction of the projects
financed, in whole or in part, by the loan evidenced by the
Certificates, to provide a final accounting to the Board of the
total costs of the projects. If the projects as finally
completed were built at a total cost less than the amount of
available funds for building the projects, or if the Executive
Administrator of the Board disapproves construction of any
portion of such projects as not being in accordance with the
plans and specifications, the City agrees to immediately, with
filing of the final accounting, return to the Board the amount
of any such excess and/or the cost determined by the Executive
Administrator of the Board relating to the parts of such
projects not built in accordance with the plans and
specifications, to the nearest multiple of the authorized
denominations for the Certificates, upon the surrender and
cancellation of a like amount of such Certificates held by the
Board in inverse order of their Stated Maturities. In
determining the amount of available funds for building the
project, the City agrees to account for all amounts deposited
to the credit of the Construction Fund, including all loan
funds extended by the Board, all other funds available from the
projects as described in the project engineer's or fiscal
representative • s sufficiency of funds statement and all
interest earned by the City on money in the Construction Fund;
-35-667tE
,...
( 4) notwithstanding the provisions of Section 16 hereof,
to maintain adequate insurance coverage on the projects
financed with the proceeds of the Certificates in amounts
adequate to protect the Board's interest;
(5) to implement any water conservation program required
by the Board until all financial obligations to the State have
been discharged;
(6) to comply with any special conditions specified by
the Board's environmental determination until all financial
obligations to the State have been discharged; and
(7) to abide by the Board's rules and relevant state
statutes.
SECTION 33: Leg a 1 Opinion. The Purchaser's obligation
to accept delivery of the Certificates is subject to being
furnished a final opinion of Fulbright & Jaworski, Attorneys,
approving such Certificates as to their validity, said opinion
to be dated and delivered as of the date of final delivery and
payment for the Certificates.
SECTION 34: CUSIP Numbers. That CUSIP numbers may be
printed or typed on the definitive Certificates. It is
expressly provided, however, that the presence or absence of
CUSIP numbers on the definitive Certificates shall be of no
significance or effect as regards the legality thereof and
neither the City nor attorneys approving said Certificates as
to legality are to be held responsible for CUSIP numbers
incorrectly printed or typed on the definitive Certificates.
SECTION 35: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be
construed to confer upon any person other than the City, the
Paying Agent/Registrar and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance
or any provision hereof, this Ordinance and all its provisions
being intended to be and being for the sole and exclusive
benefit of the City, the Paying Agent/Registrar and the Holders.
SECTION 36: Inconsistent Provisions. All ordinances,
orders or resolutions, or parts thereof, which are in conflict
or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict and the provisions of
this Ordinance shall be and remain controlling as to the
matters contained herein.
SECTION 37: Governing Law. This Ordinance shall be
construed and enforced in accordance with the laws of the State
of Texas and the United States of America.
-36-
667tE
SECTION 38: Severabilitl. If any prov1s1on of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless
be valid, and the City Council hereby declares that this
Ordinance would have been enacted without such invalid
provision.
SECTION 39: Effect of Headings. The Section headings
herein are for convenience only and shall not affect the
construction hereof.
SECTION 40: Construction of Terms. If appropriate in the
context of this Ordinance, words of the singular number shall
be considered to include the plural, words of the plural number
shall be considered to include the singular, and words of the
masculine, feminine or neuter gender shall be considered to
include the other genders.
SECTION 41: Public Meeting. It is officially found,
determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice
of the time, place, and subject matter of the public business
to be considered at such meeting, including this Ordinance, was
given, all as required by Article 6252-17, Vernon's Texas Civil
Statutes, as amended.
SECTION 42: Effective Date. This Ordinance shall take
effect and be in force immediately from and after its passage
on second and final reading, and IT IS SO ORDAINED.
PASSED AND ADOPTED ON FIRST READING, this 14th day of
November, 1991.
PASSED AND ADOPTED ON SECOND AND FINAL READING, this 21st
day of November, 1991.
CITY OF LUBBOCK, TEXAS
ATTEST:
~~
(City Seal)
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'6 79 E
EXHIBIT A I
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of November 21, 1991 (this
•Agreement"), by and between the City of Lubbock, Texas (the
•Issuer•), and Ameritrust Texas National Association, Austin,
Texas, a banking association duly organized and existing under
the laws of the United States of America (the •sank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for
the issuance of its •city of Lubbock, Texas, Combination Tax
and Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991" (the •securities•) in the aggregate
principal amount of $1,655,000, such Securities to be issued in
fully registered form only as to the payment of principal
thereof and interest thereon; and
WHEREAS, the Securities are to be delivered to the
initial purchasers thereof in installments as provided in the
Bond Resolution; and
WHEREAS, the Issuer has selected the Bank to serve as
Paying Agent/Registrar in connection with the payment of the
principal of, premium, if any, and interest on said Securities
and with respect to the registration, transfer, and exchange
thereof by the registered owners thereof; and
WHEREAS, the Bank has agreed to serve in such capacities
for and on behalf of the Issuer and has full power and
authority to perform and serve as Paying Agent/Registrar for
the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
,... APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying
Agent with respect to the Securities, and, as such Paying
Agent, the Bank shall be responsible for paying on behalf of
the Issuer the principal of, premium (if any), and interest on
the Securities as the same become due and payable to the
registered owners thereof; all in accordance with this
Agreement and the "Bond Resolution• (hereinafter defined). The
Issuer hereby appoints the Bank as Registrar with respect to
the Securities and, as Registrar for the Securities, the Bank
shall keep and maintain for and on behalf of the Issuer books
and records as to the ownership of said Securities and with
respect to the transfer and exchange thereof as provided herein
and in the •aond Resolution•.
The Bank hereby accepts its appointment, and agrees to
serve as the Paying Agent and Registrar for the Securities and
to hold the Initial Certificates in escrow and make delivery of
the Securities as provided in the Bond Resolution.
Section 1.02. Compensation.
As compensation for the Bank • s services as Paying Agent/
Registrar, the Issuer hereby agrees to pay the Bank the fees
and amounts set forth in Annex A attached hereto for the first
year of this Agreement and thereafter the fees and amounts set
forth in the Bank • s current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which
shall be supplied to the Issuer on or before 90 days prior to
the close of the Fiscal Year of the Issuer, and shall be
effective upon the first day of the following Fiscal Year.
In addition, the Issuer agrees to reimburse the Bank upon
its request for all reasonable expenses, disbursements, and
advances incurred or made by the Bank in accordance with any of
the provisions hereof (including the reasonable compensation
and the expenses and disbursements of its agents and counsel).
ARTICLE 1WO
DEFINITIONS
Section 2.01. Definitions.
For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
'616E
•Acceleration Date• on any Security means the date
on and after which the principal or any or all
installments of interest, or both, are due and payable on
any Security which has become accelerated pursuant to the
terms of the Security.
•sank Office• means the principal corporate trust
office of the Bank as indicated on page 12 hereof. The
Bank will notify the Issuer in writing of any change in
location of the Bank Office.
•sond Resolution• means the resolution, order, or ·
ordinance of the governing body of the Issuer pursuant to
which the Securities are issued, certified by the
Secretary or any other officer of the Issuer and
delivered to the Bank.
-2-
"Fiscal Year• means the fiscal year of the Issuer,
ending September 30.
"Holder• and •security Holder• each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request• and •Issuer Order• means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday• means a day on which the Bank is
required or authorized to be closed.
"Person• means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or
government, or any agency or political subdivision of a
government.
"Predecessor Securities• of any particular Security
means every previous Security evidencing all or a portion
of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Security for which a replacement Security has been
registered and delivered in lieu thereof pursuant to
Section 4.06 hereof and the Resolution).
•Redemption Date• when used with respect to any Bond
to be redeemed means the date fixed for such redemption
pursuant to the terms of the Bond Resolution.
"Responsible Officer• when used with respect to the
Bank means the Chairman or Vice-Chairman of the Board of
Directors, the Chairman or Vice-Chairman of the Executive
Committee of the Board of Directors, the President, any
Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, any Trust Officer or Assistant Trust
Officer, or any other officer of the Bank customarily
performing functions similar to those performed by any of
the above designated officers and also means, with
respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
•security Register• means a register maintained by
the Bank on behalf of the Issuer providing for the
registration and transfer of Securities.
-3-
•stated Maturity• means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms •sank,• •Issuer,• and •securities (Security)•
have the meanings assigned to them in the recital paragraphs of
this Agreement.
The term •paying Agent/Registrar• refers to the Bank in
the performance of the duties and functions of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of the Paying Agent.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption
Date, or Acceleration Date, to the Holder upon surrender of the
Security to the Bank at the Bank Office.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Security when due, by computing the amount of
interest to be paid each Holder and making payment thereof to
the Holders of the Securities (or their Predecessor Securities)
on the Record Date. All payments of principal and/or interest
on the Securities to the registered owners shall be
accomplished (1) by the issuance of checks, payable to the
registered owners, drawn on the fidicuary account provided in
Section 5.05 hereof, sent by United States mail, first class,
postage prepaid, to the address appearing on the Security
Register or (2) by such other method, acceptable to the Bank,
requested in writing by the Holder at the Holder • s risk and
expense.
Section 3.02. Payment Dates.
The Issuer hereby instructs the Bank to pay the principal
of and interest on the Securities at the dates specified in the
Bond Resolution.
-4-
ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the •security Register•) for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may
prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, such written instrument to
be in a form satisfactory to the Bank and duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
To the extent possible and under reasonable
circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the
Holders thereof will be completed and new Securities delivered
to the Holder or the assignee of the Holder in not more than
three (3) business days after the receipt of the Securities to
be cancelled in an exchange or transfer and the written
instrument of transfer or request for exchange duly executed by
the Holder, or his duly authorized agent, in form and manner
satisfactory to the Paying Agent/Registrar.
Section 4.02. Securities.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers or exchanges thereof. The
Bank covenants that the inventory of printed Securities will be
kept in safekeeping pending their use and reasonable care will
be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained
by the Bank for debt securities of other governments or
corporations for which it serves as registrar, or that is
maintained for its own securities.
-s-
Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu of
which or in exchange for which other Securities have been
issued, or which have been paid.
Section 4.06. Mutilated, Destroyed, Lost, or Stolen
Securities.
The Issuer hereby instructs the Bank, subject to the
provisions of Section 27 of the Bond Resolution, to deliver and
issue Securities in exchange for or in lieu of mutilated,
destroyed, lost, or stolen Securities as long as the same does
not result in an overissuance.
-6-
In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destrQyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3. 01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth
herein and in the Bond Resolution (relating to the Initial
Certificates) and agrees to use reasonable care in the
performance thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
-1-6616E
,...
(c) No provisions of this Agreement shall require the
Bank to expend or risk its own funds or otherwise incur any
financial liability for performance of any of its duties
hereunder, or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to
it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting
or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request,
di.rection, consent, order, bond, note, security, or other paper
or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. Without
limiting the generality of the foregoing statement, the Bank
need not examine the ownership of any Securities, but is
protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder or an
agent of the Holder. The Bank sha 11 not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or
other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written
advice of such counsel or any opinion of counsel shall be full
and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good
faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder
and perform any duties hereunder either directly or by or
through agents or attorneys of the Bank.
Section 5.03. Recitals of the Issuer.
The recitals contained herein with respect to the Issuer
and in the Securities shall be taken as the statements of the
Issuer, and the Bank assumes no responsiblity for their
correctness.
The Bank shall in no event be liable to the Issuer, any
Holder or Holders of any Security, or any other Person for any
amount due on any Security from its own funds.
Section 5.04. Mar Hold Securities.
The Bank, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise
deal with the Issuer with the same rights it would have if it
were not the Paying Agent/Registrar, or any other agent.
-8-,,.,£
Section 5.05. ~M~o~n~er~s~H~e~l~d~b~r~--~t~h~e~B~a~n~k~------~S~e~p~a~r~a~t~e
Account/Collateralization.
A separate account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
securities shall be continuously collaterialized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
accounts of the Issuer to the extent such money is not insured
by the Federal Oeposi t Insurance Corporation. Payments made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable will be
paid by the Bank to the Issuer, and the Holder of such
security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease. ·
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank. may seek.
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a Federal or
State District Court located in the state and county where
·either the Bank. Office or the administrative office of the
Issuer is located, and agree that service of process by
certified or registered mail, return receipt requested, to the
-9-
. .
address referred to in Section 6.03 of this Agreement shall
constitute adequate service. The Issuer and the Bank further
agree that the Bank has the right to file a Bill of
Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. DT Services.
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
"Depository Trust Company• services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the •operational Arrangements•, effective August 1, 1987,
which establishes requirements for securities to be eligible
for such type depository trust services, including, but not
limited to, requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or not.
-10-
1111£
Section 6.06. Severabilitt.
In case any provision herein shall be invalid, illegal,
or unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby.
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any
Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy,
or claim hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty (60) days written notice; provided, however,
an early termination of this A9reement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and the Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
-11-
"' .. ..
,...
The provisions of Section 1.02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL]
Attest:
City Secretary
(SEAL)
ATTEST:
Title:
CITY OF LUBBOCK, TEXAS
BY ~----------------------------Mayor
Address:
P. 0. Box 2000
Lubbock, Texas 79457
AMERITRUST TEXAS
NATIONAL ASSOCIATION
Austin, Texas
BY -----------------------------
Mai1ing Address:
P. o. Box 149036
Austin, Texas 78714-9036
Delivery Address:
1000 San Jacinto Center
98 San Jacinto Blvd.
Austin, Texas 78701
-12-
,... r • • r
EXHIBIT B
$1,655,000
CITY OF LUBBOCK, TEXAS
COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1991
(""
LOT A LOT B
Stated Principal Stated Principal
Maturity Amount Maturity Amount
1993 $10,000 1993 $70,000
1994 10,000 1994 70,000
1995 10,000 1995 70,000
1996 10,000 1996 70,000
1997 10,000 1997 70,000
1998 10,000 1998 70,000
1999 10,000 1999 70,000
2000 10,000 2000 70,000
2001 10,000 2001 70,000
2002 15,000 2002 70,000
2003 15,000 2003 70,000
2004 15,000 2004 70,000
2005 15,000 2005 70,000
2006 15,000 2006 70,000
2007 15,000 2007 70,000
2008 20,000 2008 65,000
2009 20,000 2009 65,000
2010 20,000 2010 65,000
2011 20,000 2011 65,000
2012 20,000 2012 65,000
,,,.£
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of November 21, 1991 (this
"Agreement•), by and between the City of Lubbock, Texas (the
"Issuer"), and Ameritrust Texas National Association, Austin,
Texas, a banking association duly organized and existing under
the laws of the United States of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for
the issuance of its "City of Lubbock, Texas, Combination Tax
and Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991" (the "Securities") in the aggregate
principal amount of $1,655,000, such Securities to be issued in
fully registered form only as to the payment of principal
thereof and interest thereon; and
WHEREAS, the Securities are to be delivered to the
initial purchasers thereof in installments as provided in the
Bond Resolution; and
WHEREAS, the Issuer has selected the Bank to serve as
Paying Agent/Registrar in connection with the payment of the
principal of, premium, if any, and interest on said Securities
and with respect to the registration, transfer, and exchange
thereof by the registered owners thereof; and
WHEREAS, the Bank has agreed to serve in such capacities
for and on behalf of the Issuer and has full power and
authority to perform and serve as Paying Agent/Registrar for
the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying
Agent with respect to the Securities, and, as such Paying
Agent, the Bank shall be responsible for paying on behalf of
the Issuer the principal of, premium (if any), and interest on
the Securities as the same become due and payable to the
registered owners thereof; all in accordance with this
Agreement and the "Bond Resolution• (hereinafter defined). The
Issuer hereby appoints the Bank as Registrar with respect to
the Securities and, as Registrar for the Securities, the Bank
f". . '•
shall keep and maintain for and on behalf of the Issuer books
and records as to the ownership of said Securities and with
respect to the transfer and exchange thereof as provided herein
and in the "Bond Resolution•.
The Bank hereby accepts its appointment, and agrees to
serve as the Paying Agent and Registrar for the Securities and
to hold the Initial Certificates in escrow and make delivery of
the Securities as provided in the Bond Resolution.
Section 1.02. Compensation.
As compensation for the Bank's services as Paying Agent/
Registrar, the Issuer hereby agrees to pay the Bank the fees
and amounts set forth in Annex A attached hereto for the first
year of this Agreement and thereafter the fees and amounts set
forth in the Bank • s current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which
shall be supplied to the Issuer on or before 90 days prior to
the close of the Fiscal Year of the Issuer, and shall be
effective upon the first day of the following Fiscal Year.
In addition, the Issuer agrees to reimburse the Bank upon
its request for all reasonable expenses, disbursements, and
advances incurred or made by the Bank in accordance with any of
the provisions hereof (including the reasonable compensation
and the expenses and disbursements of its agents and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.01. Definitions.
For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
6616£
"Acceleration Date• on any Security means the date
on and after which the principal or any or all
installments of interest, or both, are due and payable on
any Security which has become accelerated pursuant to the
terms of the Security.
"Bank Office" means the principal corporate trust
office of the Bank as indicated on page 12 hereof. The
Bank will notify the Issuer in writing of any change in
location of the Bank Office.
"Bond Resolution• means the resolution, order, or
ordinance of the governing body of the Issuer pursuant to
which the Securities are issued, certified by the
Secretary or any other officer of the Issuer and
delivered to the Bank.
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6686E
"Fiscal Year• means the fiscal year of the Issuer,
ending September 30.
"Holder• and "Security Holder• each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request• and "Issuer Order• means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday• means a day on which the Bank is
required or authorized to be closed.
"Person" means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or
government, or any agency or political subdivision of a
government.
"Predecessor Securities• of any particular Security
means every previous Security evidencing all or a portion
of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Security for which a replacement Security has been
registered and delivered in lieu thereof pursuant to
Section 4.06 hereof and the Resolution).
"Redemption Date• when used with respect to any Bond
to be redeemed means the date fixed for such redemption
pursuant to the terms of the Bond Resolution.
"Responsible Officer• when used with respect to the
Bank means the Chairman or Vice-Chairman of the Board of
Directors, the Chairman or Vice-Chairman of the Executive
Committee of the Board of Directors, the President, any
Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, any Trust Officer or Assistant Trust
Officer, or any other officer of the Bank customarily
performing functions similar to those performed by any of
the above designated officers and also means, with
respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
•security Register• means a register maintained by
the Bank on behalf of the Issuer providing for the
registration and transfer of Securities.
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, ....
"Stated Maturity" means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms "Bank, • • Issuer, • and •securi ties (Security) •
have the meanings assigned to them in the recital paragraphs of
this Agreement.
The term "Paying Agent/Registrar• refers to the Bank in
the performance of the duties and functions of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of the Paying Agent.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption
Date, or Acceleration Date, to the Holder upon surrender of the
Security to the Bank at the Bank Office.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Security when due, by computing the amount of
interest to be paid each Holder and making payment thereof to
the Holders of the Securities (or their Predecessor Securities)
on the Record Date. All payments of principal and/or interest
on the Securities to the registered owners shall be
accomplished (1) by the issuance of checks, payable to the
registered owners, drawn on the fidicuary account provided in
Section S. OS hereof, sent by United States mai 1, first class,
postage prepaid, to the address appearing on the Security
Register or (2) by such other method, acceptable to the Bank,
requested in writing by the Holder at the Holder • s risk and
expense.
Section 3.02. Payment Dates.
The Issuer hereby instructs the Bank to pay the principal
of and interest on the Securities at the dates specified in the
Bond Resolution.
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6616£.
,....
ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may
prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, such written instrument to
be in a form satisfactory to the Bank and duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
To the extent possible and under reasonable
circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the
Holders thereof will be completed and new Securities delivered
to the Holder or the assignee of the Holder in not more than
three (3) business days after the receipt of the Securities to
be cancelled in an exchange or transfer and the written
instrument of transfer or request for exchange duly executed by
the Holder, or his duly authorized agent, in form and manner
satisfactory to the Paying Agent/Registrar.
Section 4.02. Securities.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers or exchanges thereof. The
Bank covenants that the inventory of printed Securities will be
kept in safekeeping pending their use and reasonable care will
be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained
by the Bank for debt securities of other governments or
corporations for which it serves as registrar, or that is
maintained for its own securities.
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Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank•s
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu of
which or in exchange for which other Securities have been
issued, or which have been paid.
Section 4.06. Mutilated, Destroyed, Lost, or Stolen
Securities.
The Issuer hereby instructs the Bank, subject to the
provisions of Section 27 of the Bond Resolution, to deliver and
issue Securities in exchange for or in lieu of mutilated,
destroyed, lost, or stolen Securities as long as the same does
not result in an overissuance.
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In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth
herein and in the Bond Resolution (relating to the Initial
Certificates) and agrees to use reasonable care in the
performance thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
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(c) No provisions of this Agreement shall require the
Bank to expend or risk its own funds or otherwise incur any
financial liability for performance of any of its duties
hereunder, or in the exercise of any .of its rights or powers,
if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to
it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting
or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, note, security, or other paper
or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. Without
limiting the generality of the foregoing statement, the Bank
need not examine the ownership of any Securities, but is
protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder or an
agent of the Holder. The Bank shall not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, . note, security, or
other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written
advice of such counsel or any opinion of counsel shall be full
and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good
faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder
and perform any duties hereunder either directly or by or
through agents or attorneys of the Bank.
Section 5.03. Recitals of the Issuer.
The recitals contained herein with respect to the Issuer
and in the Securities shall be taken as the statements of the
Issuer, and the Bank assumes no responsiblity for their
correctness.
The Bank shall in no event be liable to the Issuer, any
Holder or Holders of any Security, or any other Person for any
amount due on any Security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise
deal with the Issuer with the same rights it would have if it
were not the Paying Agent/Registrar, or any other agent.
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,...
Section 5.05. Moneys Held by the Bank Separate Account/Collateraliza~t~i~o~n·.~~~~~----~=-~~~------~~~~==
A separate account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
Securities shall be continuously collaterialized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
accounts of the Issuer to the extent such money is not insured
by the Federal Deposit Insurance Corporation. Payments made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable wi 11 be
paid by the Bank to the Issuer, and the Holder of such
Security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a Federal or
State District Court located in the state and county where
·either the Bank Office or the administrative office of the
Issuer is located, and agree that service of process by
certified or registered mail, return receipt requested, to the
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.. .
address referred to in Section 6.03 of this Agreement shall
constitute adequate service. The Issuer and the Bank further
agree that the Bank has the right to file a Bill of
Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. DT Services.
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
•oepository Trust Company• services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the •operational Arrangements•, effective August 1, 1987,
which establishes requirements for securities to be eligible
for such type depository trust services, including, but not
limited to, requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or not.
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... .,...
Section 6.06. Severability.
In case any provision herein shall be invalid, illegal,
or unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby.
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any
Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy,
or claim hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty (60) days written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and the Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
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The provisions of Section 1.02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS .WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL]
:(SEAL)
···ATTEST:
6186E
CITY OF LUBBOCK, TEXAS
~ -e~C$~ ayor
Address:
P. 0. Box 2000
Lubbock, Texas 79457
AMERITRUST TEXAS
NATIONAL ASSOCIATION
Austin, Te as
Mailing Address:
P. 0. Box 149036
Austin, Texas 78714-9036
Delivery Address:
1000 San Jacinto Center
98 San Jacinto Blvd.
Austin, Texas 78701
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' ' ' "
Acceptance Fee
Annual Administration Fee
Installment Fee
ANNEX "A"
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$200.00
$100.00 per delivery
·'
GENERAL CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
WE, the undersigned, Mayor and City Secretary,
respectively, of the City of Lubbock, Texas, DO HEREBY CERTIFY
as follows:
1. Relative to Tax-Supported Indebtedness.
That the total principal amount of indebtedness of the
City, including the proposed $1,655,000 •city of Lubbock,
Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1991, • dated
November 15, 1991, payable from ad valorem taxes levied and
collected by the City is as follows:
OUTSTANDING INDEBTEDNESS ---------$95,783,752
SERIES 1991 CERTIFICATES ---------1,655,000
TOTAL INDEBTEDNESS ----------$97,438,752
2. Relative to Debt Service Requirements.
That a debt service requirement schedule for the
City's above-described outstanding indebtedness as well as the
proposed $1,655,000 •city of Lubbock, Texas, Combination Tax
and Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991,• dated November 15, 1991, is attached
hereto as Exhibit A and made a part of this certificate for all
purposes.
3. Relative to City Officials.
That certain duly qualified and acting officers of
said City are as follows:
B.C. McMINN
RANETTE BOYD
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
MAYOR
CITY SECRETARY
CITY MANAGER
ASSISTANT CITY MANAGER
FOR FINANCIAL SERVICES -
CITY TREASURER
~I
4. Relative to Incorporation.
That said City is incorporated under the General Laws
of the State of Texas, and is operating under the Home Rule
Amendment to the Texas Constitution, Section 5, Article XI, as
amended in 1912; the City Charter was originally adopted at an
election held on December 27, 1917, and said Charter has not
been amended or revised in any respect since May 7, 1988, the
date of the last Charter Amendment Election.
5. Relative to Taxable Values.
That the assessed value of all taxable property (net
of exemptions) in the City, as shown by the tax rolls for the
year 1991, and which have been duly approved and are the latest
official assessment of taxable property in the City is as
follows:
TOTAL ASSESSED TAXABLE VALUES OF
REAL AND PERSONAL PROPERTY -----------$4,741,607,780
6. Relative to Nonencumbrance.
Save and except for the pledge of the income and
revenues of the City's Sewer System to the payment of principal
and interest to become due with respect to the proposed "City
of Lubbock, Texas, Combination Tax and Sewer System Subordinate
Lien Revenue Certificates of Obligation, Series 1991, • dated
November 15, 1991, and the "City of Lubbock, Texas, Combination
Tax and Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1988," and the "City of Lubbock, Texas,
Combination Tax and Sewer System Subordinate Lien Revenue
Refunding Bonds, Series 1988," said income and revenues of said
System have not been pledged or hypothecated in any other
manner or for any other purpose; and the above obligations
evidence the only liens, encumbrances or indebtedness of said
System or against the income and revenues of such System.
7. Relative to Income and Revenues.
The following is a schedule of the gross receipts,
operating expenses and net revenues of the City's Sewer System
for the years stated:
Fiscal Year
Ending 9-30
1986
1987
1988
1989
1990
1991 (forecast)
6612£
Gross
Receipts
$ 4,194,086
5,001,994
6,370,167
9,097,080
10,334,826
9,417,207
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Operating
Expenses
$ 2,085,015
3,248,237
4,201,440
4,124,560
4,054,261
4,402,344
Net
Revenues
$ 2,109,071
1,753,757
2,169,327
4,972,520
6,280,565
5,014,863
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,..
8. Relative to Utility Properties.
The sewer utility properties owned, operated and
maintained by the City currently provides sewer services to
approximately ,JB4,121 inhabitants of the City.
As of the date hereof, no question is pending and no
proceedings of any nature have been instituted in any manner
questioning the City's right and title to its utility
properties or its authority to operate the same.
9. Relative to Rates and Charges.
The current monthly rates and charges for services
provided by the City's Sewer System are as follows:
SEWER RATES
Residential
First 3,000 gallons (minimum)
Next 7,000 gallons
Over 10,000 gallons
MaximumMonthly Charge
Commercial/Industrial (1)
First 3,000 gallons (minimum)
Over 3,000 gallons
(1) Industrial Waste Surcharges:
Biochemical Oxygen Demand
Total Suspended Solids
Present Rate
(effective 10/1/91)
$ 6.10
$ .75/M gallons
No additional charge
$11.35
$6.10(2)
$ .75/M gallons
$0.0457/lb.
$0.0272/lb.
(2) Base4 on 5/8 inch or 3/4/inch meter; higher m1n1mums
for l~rger meters up to a maximum charge for a 10 inch
meter of $835.32.
10. Relative to No Petition.
That · no petition of any kind or character has been
filed with the Mayor, City Secretary or any other official of
the City protesting the issuance of the proposed "City of
Lubbock, Texas Combination Tax and Sewer System Subordinate
Lien Revenue Certificates of Obligation, Series 1991".
11. Relative to Interest Earnings.
· That interest earnings on proceeds from the sale of
$1, 655; 000 "City of Lubbock, Texas, Combination Tax and Sewer
System Subordinate Lien Revenue Certificates of Obligation,
Series 1991" will be deposited to the Certificate Fund
established by the ordinance authorizing the issuance of the
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obligations, save and except during the time of construction of
improvements and extensions being financed by such obligations,
such interest earnings, upon approval of the governing body of
the City, will be used for the construction of improvements and
extensions for which such obligations are being issued.
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF LUBBOCK,
TEXAS, this the 21st day of November, 1991.
~l, -~
'Mayor, C~ of Lubbock, Texas
~ Lubbock, Texas
(City Seal)
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) ) ) ) ' ) E>11BIT A )
em OF LV1300CK, TWS
GDERAL OBLIGA!IOI DEB'l' SERVICE REQUDEJIElfTS
$1,655,000 (X)J[BIJmOlf !AI ARD S!WEI SYSTEII
SUOORDID.TE LIEIIEVEIIU! cnmiCU'P'.S OF OBLIGA!IOII,
SDIES 1991 DATED 11·15-1991: Pm'CIPAL OOE
FISCAL 2·15-1993/2012: II1'EIES'l OOE 8·15-1992 AID EAal
WI 2-15 ' 8-15 ~
EIDIJG. OO'l'SrAIDIIG DEBT IITEREST OOJIBIIED DQUIREIIEMTS
9-30 PmCIP!L IR'l'EIESt ro'l'!L PmCIP!L lATE IRTDIST ro'l'AL PmfCIPAL DITER!S1' ro'l'AL
1992 $8,675,000 $7,134,459 $15,809,459 $ $6&,269 * $68,269 $8,675,000 $7,202,728 $15,877,728
1993 8,185,000 6,030,654 14,215,654 80,000 5.50l 45,518 125,518 8,265,000 6,076,172 14,341,172
1994 7,920,000 . 5,399,803 13,319,803 80,000 5.50l 43,318 123,318 8,000,000 5,443,121 13,443,121
1995 7,455,000 4,792,766 12,247,766 80,000 5.501 41,118 121,118 7,535,000 4,833,884 12,368,884
1996 7,555,000 4,196,083 11,751,083 80,000 5.50\ 38,918 118,918 7,635,000 4,235,001 11,870,001
1997 7,364,434 3,757,496 11,121,930 80,000 5.50l 36,n8 116,718 7,444,434 3,794,214 11,238,648
1998 7,365,076 3,192,419 10,557,495 80,000 5.50\ 34,518 114,518 7,445,076 3,226,937 10,672,013
1999 7,251,493 2,625,465 9,876,958 80,000 5.501 32,318 112,318 7,331,493 2,657,783 9,989,276
2000 4,789,986 4,124,389 8,914,375 80,000 5.50l 30,118 110,118 4,869,986 4,154,507 9,024,493
2001 4,414,442 3,365,480 7,779,922 80,000 5.501 27,918 107,918 4,494,442 3,393,398 7,887,840
2002 4,008,639 2,417,784 6,426,423 85,000 5.501 25,718 uo,n8 4,093,639 2,443,502 6,537,141
2003 3,844,682 1,701,309 5,545,991 85,000 5.501 23,380 108,380 3,929,6&2 1,724,689 5,654,3n
2004 2,705,000 1,004,726 3,709,726 85,000 5.501 21,042 106,042 2,790,000 1,025,768 3,815,768
2005 2,705,000 820,488 3,525,488 85,000 5.50l 18,704 103,704 2,790,000 839,192 3,629,192
2006 2,710,000 639,400 3,349,400 85,000 5.50l 16,366 101,366 2,795,000 655,766 3,450,766
2007 2,710,000 459,328 3,169,328 85,000 5.50l 14,028 99,028 2,795,000 473,356 3,268,356
2008 2,065,000 304,578 2,369,578 85,000 5.50l 11,690 96,690 2,150,000. 316,268 2,466,26&
2009 1,730,000 188,638 1,918,638 85,000 5.50t 9,352 94,352 1,815,000 197,990 2,012,990
2010 1,165,000 103,012 1,268,012 85,000 5.50l 7,014 92,014 1,250,000 110,026 1,360,026
2011 1,165,000 34,338 1,199,338 85,000 5.50t 4,676 89,676 1,250,000 39,014 1,289,014
2012 85 000 5.sot 2,338 87,338 85,000 2,338 87,338
$95,783,752 $52,292,615 $148,076,367 $1,655,000 $553,039 $2,208,039 $97,438,752 $52,845,654 $150,284,406
*IrlERES'l' c.w:uL.mD FIOil DArE OF m C!RmiCA!ES (11-15-1991):
II PRActiCE m CDTifiCATFS WILL BE DELlVD!D II DISTAWIEI'l'S
1fiTB Irl'EIEST OJ EACB IISTALL11Eft (X)JIJIFJfCIJG C8 DELIVDY.
FISCAL
YEll
DDIBG
9-30
1992
1993
1994
1995
1996
1997
f"': 1998
1999
2000
2001
2002
2003 ,.., 2004
2005
2006
2007
2008
2009
2010
2011
2012
CITY OF LUBOOCK, HXAS
DIVISIOI OF GEHElAL OBLIG!'flotf DEBT SERVICE IEQOIRE!EITS
(IICWDIIG $1,655,000 CXIIIBII!'IIOB !AI liD SEm SYSTEJI
SOBOJDII!H LID lEVEIIUE CERTiriCA!ES OF OBLIG!TIOH,
smr.s 1991
LESS: LESS: LESS: LESS:
W!T!Rl«>IKS SMi OOLF CXlURSE SOLID WAS'fE
SYST£1 SYSTEJI SYSTE! DISPOSAL SISTEK
CXIIIBIIED GEIWL GEm!L GE!IWL GBlfERAL
DEBT SflVICE OBLIG!TIOI OBLIG!fiOB OBLIG!!IOH OBLIG!TIOI
IEQOilEKEHTS IEQOIRE!EITS IEQOilEJIEHTS IEQUilEJIEHTS IEQUIIEIIEJiTS
$15,&77,728 $6,235,314 $2,196,626 $84,018 $204,928
14,341,172 5,471,509 2,147,915 85,642 177,075
13,443,121 5,092,255 2,100,504 82,043 168,105
12,368,884 4,673,211 1,958,607 83,218 160,285
11,&70,001 4,449,522 1,955,182 84,224 153,558
11,238,648 4,199,102 1,878,546 85,302 146,715
10,672,013 3,980,574 1,804,528 81,425 139,758
9,989,276 3,716,002 1,712,926 82,400 132,656
9,024,493 3,342,359 1,580,084 83,025 125,469
7,887,840 3,037,573 1,130,310 83,300 113,438
6,537,141 2,562,599 957,124 83,225
5,654,371 2,224,496 830,691 82,800
3,815,768 1,639,570 730,972
3,629,192 1,561,747 692,952
3,450,766 1,486,568 654,808
3,268,356 1,412,395 616,489
2,466,268 1,118,638 234,846
2,012,990 1,029,524 206,310
1,360,026 879,863 92,014
1,289,014 833,288 89,676
87 338 87 338
$150,284,406 $58,946,109 $23,658,448 $1,000,622 $1,521,987
2
GEmAL
PURPOSE
GEm!L
OBLIGA!IOI
IEQOIIEKEB'l'S
$7,156,842
6,459,031
6,000,214
5,493,563
5,227,515
4,928,983
4,665,728
4,345,292
3,893,556
3,523,219
2,934,193
2,.516,384
1,445,226
1,374,493
1,309,390
1,239,472
1,112,784
777,156
388,149
366,050
$65,157,240
NO DEFAULT CERTI~JCATE
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
We, the undersigned, Mayor and City Secretary, respectively, of the
City of Lubbock, Texas, DO· HEREBY CERTIFY as follows:
1. No Default.
The City of Lubbock, Texas, is not in default as to any covenant,
condition or obligation contained in the ordinances authorizing the
issuance of "City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation, Series 1988," and the
"City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Refunding Bonds, Series 1988," and that there is on hand in the
Certificate Fund created for the payment and security of the aforesaid
obligations the amounts required to be on deposit.
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF LUBBOCK, TEXAS, this
the 18th day of December, 1991.
(C_i ty Sea 1)
6856E
CERTIFICATE AS TO TAX EXEMPTION
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY.OF LUBBOCK
§
§
§
§
§
I, the undersigned, Assistant City Manager for Financial
Services of the City of Lubbock, Texas, (the "Issuer"), who
with other officers are charged with the responsibility of
issuing and delivering the •ciTY OF LUBBOCK, TEXAS, COMBINATION
TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991", dated November 15, 1991, in the
principal amount of $1,655,000 (the "Certificates"), DO HEREBY
CERTIFY that, to the best of my knowledge and belief, the
following facts and estimates are reasonable expectations
relating to the issuance and sale of the Certificates and the
use and expenditures of proceeds thereof. Unless otherwise
noted, capitalized terms herein shall have the same meanings
ascribed thereto in the ordinance authorizing the issuance of
the Certificates.
1. Purpose of the Certificates.
The Certificates are being issued to finance the costs
of constructing improvements to the City• s Wastewater Treatment
System (the "Project"), and to pay contracts for professional
services.
2. Source and Di~bursement of Funds.
2.1 The Certificates were issued and delivered to the
purchasers thereof in installments, the first installment being
delivered on January 14·, 1992 and being in the amount of
$790,000. The agreed purchase price of the Certificates is
$1,655,000.
2.2 Costs
are estimated to be
the Certificates.
$1,638,000.
of issuance relating to the Certificates
$17,000 and will be paid out of proceeds of
Costs of the Project are estimated to be
The Issuer acknowledges and understands that based on
the ·certifications and representations appearing in paragraph
(3) below, the amounts received from the purchaser of the
Certificates, pending the· expenditure thereof for authorized
projects and purposes, may be invested without restriction as
to Yield for a temporary period not to exceed three (3) years
from the date of this Certificate, and in the event any of such
proceeds of the Certificates shall remain unexpended on the
third anniversary date of this Certificate, any investment of
such proceeds after such anniversary date shall be restricted
to obligations or accounts that have a Yield not in excess of
the Yield of the Certificates.
3. Temporary Period.
3.1 Within six (6) months from the date of this
Certificate, the Issuer will have incurred substantial binding
obligations or commitments in the amount of at least $100,000
for the Project to be financed by the Certificates by entering
into contracts for either construction, architectural services,
engineering services, land acquisitions, site development,
construction materials, or the purchase of equipment.
3. 2 After entering into said contracts, work on the
Projects will proceed with due diligence to completion, which
is expected to occur on or about July, 1992
3.3 All of the spendable proceeds of the Certificates
will be expended for Project costs by the end of the three-year
period from the date hereof.
4. Certificate Fund and the System Fund.
4.1 The Certificates are payable from an ad valorem
tax levied upon all taxable property in the Issuer, and are
additionally payable from a pledge of the Net Revenues of the
City•s Sewer System, and all taxes levied and collected for and
on account of the Certificates, together with Net Revenues
pledged and appropriated to pay the Certificates, are to be to
deposited into a special Fund or Account (the •certificate
Fund•) created and established for the payment of the
Certificates, as provided in Section 10 of the Ordinance
authorizing the issuance of the Certificates. The Certificate
Fund was created primarily to acheive a proper matching of
revenues and debt service for the Certificates within each bond
year and moneys deposited therein will be used solely to pay
""the principal of and interest on the Certificates as the same
becomes due and payable and the Issuer reasonably expects that
there will be no other funds that will be so used or pledged or
otherwise restricted so as to be available with reasonable
certainty, to be used.
4.2 To the extent taxes collected for the payment of
the Certificates equals the annual debt service paid, amounts
deposited in the Certificate Fund will be spent within a
thirteen month period beginning on the date of the deposit.
-2-661CE
,...
Any amounts deposited in such Certificate Fund in excess of the
annual debt service to be paid on the Certificates plus an
amount not to exceed the greater of (i) one year's earnings on
the Certificate Fund or (ii) one-twelfth (1/12) of the annual
debt service on the Certificates will, to the extent such money
are invested, be restricted to investments which have a Yield
not in excess of the Yield of the Certificates. Any amount
received from the investment of money held in the Certificate
Fund will be spent within a one-year period beginning on the
date of receipt.
4.3
pledged in
Ordinance.
Any amounts deposited to the System Fund shall be
the priority set forth in Section 13 of the
5. Miscellaneous.
5.1 The Issuer has not been notified of any listing
or proposed listing of the Issuer by the Internal Revenue
Service as an issuer that may not certify its Certificates.
5. 2 Any amount of income derived from the investment
of money received upon the sale of the Certificates or from the
investment of such investment income will either (i) be
expended on the Project, or (ii) if and when found not to be
required for such expenditure, will be deposited in the
Certificate Fund and expended to pay principal and interest on
the Certificates, within three (3) years from the date hereof
or within one (1) year of receipt, whichever is sooner.
5.3 The Issuer has, in addition to the moneys
received from the sale of the Certificates, moneys that are
invested in various funds which are pledged for various
purposes. These other funds are not available to accomplish
the purposes described in 1 above, except as described in
Section 4 hereof.
5.4 The principal amount of the Certificates,
together with the investment income to be realized from the
investment thereof based on current market rates (estimated to
be $ -0-) , is not expected to be in excess of the most
recent estimates of the amounts necessary to acquire, construct
or equip, as the case may be, the Projects and paying costs of
issuance of the Certificates.
5.5 No person or group of persons will have access to
or use of or derive any special benefit (other than as members
of the general public) from the facilities and improvements to
be constructed with the proceeds of the Certificates, pursuant
to any lease, management or payment contract or any other
arrangement.
-3-
6614E
5. 6 No other obligations of the Issuer payable from
the same source of funds as the Certificates and with a common
plan of financing have been or will be issued within 31 days of
the date hereof.
5. 7 The yield on the Certificates, calculated on the
basis that the present worth of all payments of principal and
interest to be paid on the Certificates produces an amount
equal to the "Issue Price• (as represented by the initial
purchasers) of the Certificates, is 5.50 \.
5. 8 In accordance with Section 28 of the Ordinance,
unless the Certificates meet an exception described in section
148(f) of the Code, the City will pay Rebatable Arbitrage to
the United States at the times and in the amounts as provided
in section 148 of the Code. It is anticipated that the
Certificates may meet the exception contained in section
148(f) (4) (C) of the Code, relating to obligations the proceeds
of which are used for construction expenditures and are spent
within a twenty-four (24) month period.
CITY OF LUBBOCK, TEXAS
(City Seal)
DATED: ___ ...HJAI"HN-f-"'t-lt ...... 19 ..... 92 __ -__ _
-4-6684E
SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
WE, the undersigned, officials of the City of Lubbock,
Texas (the •Issuer•), do hereby certify as follows:
(1) That this Certificate is executed and delivered
with reference to the following described certificates of
obligation: •ciTY OF LUBBOCK, TEXAS COMBINATION TAX AND SEWER
SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION,
SERIES 1991,• dated November 15, 1991 (the •certificate Date•),
in the aggregate principal amount of $1,655,000 (the
•certificates•).
(2) The Certificates have been duly and officially
executed by the undersigned with their manual or facsimile
signatures in the same manner appearing thereon, and the
undersigned hereby adopt and ratify their respective signatures
in the manner appearing on each of the Certificates whether in
manual or facsimile form, as the case may be, as their true,
genuine, and official signatures.
(3) That on the Certificate Date and on the date
hereof, we were and are the duly qualified and acting officers
indicated therein and authorized to execute the same.
(4) The legally adopted proper and official corporate
seal of the Issuer is impressed, imprinted, or lithographed on
all of the Certificates and impressed on this certificate.
(5) No litigation of any nature is now pending before
any federal or state court, or administrative body, or to our
knowledge threatened, seeking to restrain or enjoin the
issuance or delivery of the Certificates or questioning the
issuance or sale of the Certificates, the authority or action
of the governing body of the Issuer relating to the issuance or
sale of the Certificates, the levy of the tax or the assessment
and collection thereof to pay the principal of and interest on
the Certificates, the collection of the revenues of the City's
Sewer System (the •system•) or the imposition of rates and
charges with respect to the System, pledged to pay the
principal of and interest on the Certificates, or that would
otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on
the Certificates; and that neither the corporate existence or
boundaries of the Issuer nor the right to hold office of any
member of the governing body of the Issuer or any other elected
~· or appointed official of the Issuer is being contested or
otherwise questioned.
"
(6) That no petition or other request has been filed
with or presented to any official of the Issuer requesting any
proceeding authorizing the issuance of the Certificates adopted
by the governing body of the Issuer be submitted to a
referendum or other election; no authority or proceeding for
the issuance, sale, or delivery of the Certificates, passed and
adopted by the governing body of the Issuer, has been amended,
repealed, revoked, rescinded, or otherwise modified since the
date of passage thereof, and all such proceedings and authority
relating to the issuance and sale of the Certificates remain in
full force and effect as of the date of this certificate.
EXECUTED AND DELIVERED this
(Issuer's Seal)
SIGNATURE
JAN 1 4 1992
OFFICIAL TITLE
Mayor, City of
Lubbock, Texas
City Secretary, City of
Lubbock, Texas
The signatures of the persons subscribed above are
hereby certified to be true and genuine.
AMERICAN STATE BANK
Lubbock, Texas
By: ZZ:::~e~
· :(Bank Seal)
/
-2-6613£
SIGNATURE AND NQ-LITIGATION CERTIFICATE
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
WE, the undersigned, officials of the City of Lubbock, Texas
(the "Issuer"), do hereby certify as follows:
(1) That this Certificate is executed and delivered with
reference to the following described certificates of obligation:
''CITY OF LUBBOCK, TEXAS COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991,"
dated November 15, 1991 (the "Certificate Date"), in the aggregate
principal amount of $1,655,000 (the 11 Certificates11 ).
(2) The Certificates have been duly and officially executed
by the undersigned with their manual or facsimile signatures in the
same manner appearing thereon, and the undersigned hereby adopt and
ratify their respective signatures in the manner appearing on each
of the Certificates whether in manual or facsimile form, as the
case may be, as their true, genuine, and official signatures.
(3) That on the Certificate Date and on the date hereof, we
were and are the duly qualified and acting officers indicated
therein and authorized to execute the same.
( 4) The legally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithographed on all of the
Certificates and impressed on this certificate.
(5) No litigation of any nature is now pending before any
federal or state court, or administrative body, or to our knowledge
threatened, seeking to restrain or enjoin the issuance or delivery
of the Certificates or questioning the issuance or sale of the
Certificates, the authority or action of the governing body of the
Issuer relating to the issuance or sale of the Certificates, the
levy of the tax or the assessment and collection thereof to pay the
principal of and interest on the Certificates, the collection of
the revenues of the City's sewer System (the 11 System") or the
imposition of rates and charges with respect to the system, pledged
to pay the principal of and interest on the Certificates, or that
would otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on the
Certificates; and that neither the corporate existence or
boundaries of the Issuer nor the right to hold office of any member
35533
. . ...
of the governing body of the Issuer or any other elected or
'appointed official of the Issuer is being contested or otherwise
questioned.
(6) That no petition or other request has been filed with or
presented to any official of the Issuer requesting any proceeding
authorizing the issuance of the Certificates adopted by the
governing body of the Issuer be submitted to a referendum or other
election; no authority or proceeding for the issuance, sale, or
delivery of the Certificates, passed and adopted by the governing
body of the Issuer, has been amended, repealed, revoked, rescinded,
or otherwise modified since the date of passage thereof, and all
such proceedings and authority relating to the issuance and sale of
the Certificates remain in full force and effect as of the date of
this certificate.
EXECUTED AND DELIVERED this JAN 2 8 1992
(Issuer's Seal)
SIGNATURE OFFICIAL TITLE
B. C. McMinn
Mayor, City of Lubbock, Texas
Ranette Boyd
City Secretary, City of
Lubbock, Texas
The signatures of the persons subscribed above are hereby
certified to be true and genuine.
(Bank Seal)
. 35533
AMERICAN STATE BANK
Lubbock, Texas
By:
-2-
,...
6IGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS § s
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
WE, the undersigned, officials of the City of Lubbock, Texas
(the "Issuer"), do hereby certify as follows:
(1) That this Certificate is executed and delivered with
reference to the following described certificates of obligation:
"CITY OF LUBBOCK, TEXAS COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991,"
dated November 15, 1991 (the "Certificate Date"), in the aggregate
principal amount of $1,655,000 (the "Certificates").
(2) The Certificates have been duly and officially executed
by the undersigned with their manual or facsimile signatures in the
same manner appearing thereon, and the undersigned hereby adopt and
ratify their respective signatures in the manner appearing on each
of the Certificates whether in manual or facsimile form, as the
case may be, as their true, genuine, and official signatures.
(3) That on the Certificate Date and on the date hereof, we
were and are the duly qualified and acting officers indicated
therein and authorized to execute the same.
( 4) The legally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithoqraphed on all of the
Certificates and impressed on this certificate.
(5) No litigation of any nature is now pending before any
federal or state court, or administrative body, or to our knowledge
threatened, seeking to restrain or enjoin the issuance or delivery
of the Certif !cates or questioning the issuance or sale of the
Certificates, the authority or action of the governing body of the
Issuer relating to the issuance or sale of the certificates, the
levy of the tax or the assessment and collection thereof to pay the
principal of and interest on the Certificates, the collection of
the revenues of the City's Sewer System (the "System") or the
imposition of rates and charges with respect to the System, pledged
to pay the principal of and interest on the Certificates, or that
would otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on the
Certificates; and that neither the corporate existence or
boundaries of the Issuer nor the right to hold office of any member
,35533
-
of the governing body of the Issuer or any other elected or
appointed official of the Issuer is being contested or otherwise
questioned. ·
(6) That no petition or other request has been filed with or
presented to any official of the Issuer requesting any proceeding
authorizing the issuance of the Certificates adopted by the
governing body of the Issuer be submitted to a referendum or other
election; no authority or proceeding for the issuance, sale, or
delivery of the Certificates, passed and adopted by the governing
body of the Issuer, has been amended, repealed, revoked, rescinded,
or otherwise modified since the date of passage thereof, and all
such proceedings and authority relating to the issuance and sale of
the Certificates remain in full force and effect as of the date of
this certificate.
EXECUTED AND DELIVERED this APR 0 3 1992
(Issuer's Seal)
SIGNATURE
..
. -yf c:~::c~
C:/rit .t~ ~ viZ..
OFFICIAL TITLE
B. C. McMinn
Mayor, City of Lubbock, Texas
~~t§~8tary, City of
Lubbock, Texas
The signatures of the persons subscribed above are hereby
certified to be true and genuine.
(Bank Seal)
35533
AMERICAN STATE BANK
Lubbock, Texas
By:
-2-
..
SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
WE, the undersigned, officials of the City of Lubbock,
Texas (the "Issuer"), do hereby certify as follows:
(1) That this Certificate is executed and delivered
with reference to the following described certificates of
obligation: "CITY OF LUBBOCK, TEXAS COMBINATION TAX AND SEWER
SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION,
SERIES 1991," dated November 15, 1991 (the "Certificate Date"),
in the aggregate principal amount of $1,655,000 (the
"Certificates").
(2) The Certificates have been duly and officially
executed by the undersigned with their manual or facsimile
signatures in the same manner appearing thereon, and the
undersigned hereby adopt and ratify their respective signatures
in the manner appearing on each of the Certificates whether in
manual or facsimile form, as the case may be, as their true,
genuine, and official signatures.
(3) That on-the Certificate Date and on the date
hereof, we were and are the duly qualified and acting officers
indicated therein and authorized to execute the same.
(4) The legally adopted proper and official corporate
seal of the Issuer is impressed, imprinted, or lithographed on
all of the Certificates and impressed on this certificate.
(5) No litigation of any nature is now pending before
any federal or state court, or administrative body, or to our
knowledge threatened, , seeking to restrain or enjoin the
issuance or delivery of the Certificates or questioning the
issuance or sale of the Certificates, the authority or action
of the governing body of the Issuer relating to the issuance or
sale of the Certificates, the levy of the tax or the assessment
and collection thereof to pay the principal of and interest on
the Certificates, the collection of the revenues of the City's
Sewer System (the "System") or the imposition of rates and
charges with respect to the System, pledged to pay the
principal of and interest on the Certificates, or that would
otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on
the Certificates; and that neither the corporate existence or
boundaries of the Issuer nor the right to hold office of any
member of the governing body of the Issuer or any other elected
or appointed official of the Issuer is being contested or
otherwise questioned.
(6) That no petition or other request has been filed
with or presented to any official of the Issuer requesting any
proceeding authorizing the issuance of the Certificates adopted
by the governing body of the Issuer be submitted to a
referendum or other election; no authority or proceeding for
the issuance, sale, or delivery of the Certificates, passed and
" adopted by the governing body of the Issuer, has been amended,
repealed, revoked, rescinded, or otherwise modified since the
date of passage thereof, and all such proceedings and authority
relating to the issuance and sale of the Certificates remain in
full force and effect as of the date of this certificate.
EXECUTED AND DELIVERED this ,_ APR 2 8 1992
(Issuer's Seal)
SIGNATURE OFFICIAL TITLE
Mayor, City of
Lubbock, Texas
City Secretary, City of
Lubbock, Texas
The signatures of the persons subscribed above are
hereby certified to be true and genuine.
-·
..... _: ::
... (Bank Seal)
6613£ -2-
AMERICAN STATE BANK
Lubbock, Texas
By: zt:&~nr::~
..
,..
SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
WE, the undersiqned, officials of the city of Lubbock, Texas
(the 11 Issuer11 ), do hereby certify as follows:
(1) That this Certificate is executed and delivered with
reference to the followinq described certificates of obliqation:
"CITY OF LUBBOCK, TEXAS COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991,11
dated November 15, 1991 (the "Certificate Date"), in the aqqreqate
principal amount of $1,655,000 (the 11Certificates").
(2) The Certificates have been duly and officially executed
by the undersiqned with their manual or facsimile siqnatures in the
same manner appearinq thereon, and the undersiqned hereby adopt and
ratify their respective siqnatures in the manner appearinq on each
of the Certificates whether in manual or facsimile form, as the
case may be, as their true, qenuine, and official siqnatures.
(3) That on the Certificate Date and on the date hereof, we
were and are the duly qualified and actinq officers indicated
therein and authorized to execute the same.
(4) The leqally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithoqraphed on all of the
Certificates and impressed on this certificate.
(5) No litiqation of any nature is now pendinq before any
federal or state court, or administrative body, or to our knowledqe
threatened, seekinq to restrain or enjoin the issuance or delivery
of the Certificates or questioninq the issuance or sale of the
certificates, the authority or action of the qoverninq body of the
Issuer relatinq to the issuance or sale of the Certificates, the
levy of the tax or the assessment and collection thereof to pay the
principal of and interest on the Certificates, the collection of
the revenues of the City's Sewer system (the "System") or the
imposition of rates and charqes with respect to the System, pledqed
to pay the principal of and interest on the Certificates, or that
would otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on the
Certificates; and that neither the corporate existence or
boundaries of the Issuer nor the riqht to hold office of any member
35533
of the governing body of the Issuer or any other elected or
appointed official of the Issuer is being contested or otherwise
questioned.
(6) That no petition or other request has been filed with or
presented to any official of the Issuer requesting any proceeding
authorizing the issuance of the Certificates adopted by the
governing body of the Issuer be submitted to a referendum or other
election; no authority or proceeding for the issuance, sale, or
delivery of the Certificates, passed and adopted by the governing
body of the Issuer, has been amended, repealed, revoked, rescinded,
or otherwise modified since the date of passage thereof, and all
such proceedings and authority relating to the issuance and sale of
the Certificates remain in full force and effect as of the date of
this certificate.
EXECUTED AND DELIVERED this AUG 1 8 1992
(Issuer's Seal)
SIGNATURE OFFICIAL TITLE
B. C. McMinn
Mayor, City of Lubbock, Texas
Ranette Boyd City Secretary, City of
Lubbock, Texas
The signatures of the persons subscribed above are hereby
certified to be true and genuine.
(Bank Seal)
35533
AMERICAN STATE BANK
Lubbock, Texas
By:
-2-
SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS § s COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
WE, the undersigned, officials of the City of Lubbock, Texas
(the "Issuer"), do hereby certify as follows:
(1) That this Certificate is executed and delivered with
reference to the following described certificates of obligation:
"CITY OF LUBBOCK, TEXAS COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991,"
dated November 15, 1991 (the "Certificate Date"), in the aggregate
principal amount of $1,655,000 (the "Certificates").
(2) The Certificates have been duly and officially executed
by the undersigned with their manual or facsimile siqnatures in the
same manner appearing thereon, and the undersigned hereby adopt and
ratify their respective signatures in the manner appearing on each
of the Certificates whether in manual or facsimile form, as the
case may be, as their true, genuine, and official signatures.
(3) That on the Certificate Date and on the date hereof, we
were and are the duly qualified and acting officers indicated
therein and authorized to execute the same.
(4) The legally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithographed on all of the
Certificates and impressed on this certificate.
(5) No litigation of any nature is now pending before any
federal or state court, or administrative body, or to our knowledge
threatened, seeking to restrain or enjoin the issuance or delivery
of the Certificates or questioning the issuance or sale of the
Certificates, the authority or action of the governing body of the
Issuer relating to the issuance or sale of the Certificates, the
levy of the tax or the assessment and collection thereof to pay the
principal of and interest on the Certificates, the collection of
the revenues of the City's Sewer System (the "System") or the
imposition of rates and charges with respect to the System, pledged
to pay the principal of and interest on the Certificates, or that
would otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on the
certificates; and that neither the corporate existence or
boundaries of the Issuer nor the right to hold office of any member
35533
of the governing body of the Issuer or any other elected or
appointed official of the Issuer is being contested or otherwise
questioned.
(6) That no petition or other request has been filed with or
presented to any official of the Issuer requesting any proceeding
authorizing the issuance of the Certificates adopted by the
governing body of the Issuer be submitted to a referendum or other
election; no authority or proceeding for the issuance, sale, or
delivery of the Certificates, passed and adopted by the governing
body of the Issuer, has been amended, repealed, revoked, rescinded,
or otherwise modified since the date of passage thereof, and all
such proceedings and authority relating to the issuance and sale of
the Certificates remain in full force and effect as of the date of
this certificate.
JUtl1 0 19~3 EXECUTED AND DELIVERED this -------------------
(Issuer's Seal)
SIGNATURE
-' ·ft c:.-~f~
OFFICIAL TITLE
B. C. McMinn
Mayor, City of Lubbock, Texas
~~tsJ8ritary, City of
Lubbock, Texas
The signatures of the persons subscribed above are hereby
certified to be true and genuine.
(Bank Seal)
' 35533
AMERICAN STATE BANK
Lubbock, Texas
By:
-2-
®ffice of tbe .§ttornep ~eneral
~tate of Ql::exas 1_-t
DAN MORALES December 19, 1991
ATTORNEY GENERAL
THIS IS TO CERTIFY that the City of Lubbock, Texas
(the "Issuer") has submitted to me City of Lubbock.
Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1991 (the
"Certificates") in the aggregate principal amount of
$1,655,000 for approval. The Certificates are dated
November 15, 1991, numbered T-A and T-B, in the
denomination of $280,000 and $1,375,000, respectively,
and were authorized by Ordinance No. 9491 of the Issuer
passed on November 21, 1991 (the 110rdinance11 ).
I have examined the law and such certified proceedings and
other papers as I deem necessary to render this opinion.
As to questions of fact material to my opinion, I have relied
upon representations of the Issuer contained in the certified
proceedings and other certifications of public officials furnished
to me without undertaking to verify the same by independent
investigation.
I express no opinion relating to any Official Statement or
other offering material relating to the Certificates.
Based on my examination, I am of the opinion, as of the date
hereof and under existing law, as follows (capitalized terms,
except as herein defined, have the meaning given to them in the
Ordinance):
1. The Certificates have been issued in accordance with law
and are valid and binding obligations of the Issuer.
2. The Certificates are payable from the proceeds of an ad
valorem tax levied, within the limits prescribed by law,
upon all taxable property within the Issuer and, together
with the Previously Issued Obligations, are additionally
payable from and secured by a lien on and pledge of the
Net Revenues of the Issuer's Sewer System, such lien and
pledge being junior and subordinate to the lien on and
pledge of the Net Revenues of the System securing the
payment of Prior Lien Obligations hereafter issued by the
Issuer.
512/463~2100 P.O. BOX 12548 AUSTIN, TEXAS 78711~2548
AN EQUAl. EMPLOYMENT OPPORTliNITY EMPLOYER
City of Lubbock, Texas, Combination Tax and Sewer system
Subordinate Lien Revenue Certificates of Obligation,
Series 1991 -$1,655,000 Page -2-
Therefore, the Certificates are approved.
~-~ --"'"'} ~· . .:._-./~
No. 25477
Book No. 9!f
Jh /
l@\ ":::' 13-Hll
~ '::' (Rw. Hl115)
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I
I
I, John Sharp, Comptroller of Pubfic Accounts of the State of Texas, do hereby certify that
f""': the attachment is a true and correct copy of the opinion of the Attorney General approving the
City of lubbock, Texas Combination Tax and Sewer System Subordinate lien
Revenue Certificates of Obligation, Series 1991
T-A and T-8 numbered ____________________ of the denomination of
$ various November 15 91
dated ---------• 19 ---• as authorized by
5. so ~;.. .
issuer, interest -----percent, under and by authority of which said bonds were registered
20 December 91 in this office, on the -------day of , 19 , as the same
appears of record on page 522 93 ____ Bond Register of the Comptroller's Office, Vol. __ _
Register Number 53642
Given under my hand and seal of office, at Austin, Texas, the ____ 2_0 ____ _
day of December , 19 ~.
JOHN SHARP
Comptroller of Public Accounts
State of Texas
RECEIPT OF FUNDS AND CERTIFICATE OF DELIVERY
THE STATE OF TEXAS
COUNTY OF TRAVIS
§
§
§
Ameritrust Texas National Association, Austin, Texas has
received this date for the account of the City of Lubbock,
Texas (the "City") the amount of $790,000 from the Texas Water
Development Board (the "Board") in payment for the first
installment delivery of the "CITY OF LUBBOCK, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION SERIES 1991", dated November 15, 1991 (the
•certificates"), and such amount has been transmitted to the
City's depository bank for credit to the City's account in
accordance with the instructions received.
Following the receipt of such funds, the following
described Certificates in the aggregate principal amount of
$790,000 were delivered to the Board in evidence of the partial
funding of that certain loan to the City from the Board in the
total amount of $1,655,000, to wit:
Certificates
Numbered
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
* delivered from Lot A
**delivered from Lot B
Stated
Maturity
February 15, 1993
February 15, 1994
February 15, 1995
February 15, 1996
February 15, 1997
February 15, 1998
February 15, 1999
February 15, 2000
February 15, 2001
February 15, 2002
February 15, 2003
February 15, 2004
February 15, 2005
February 15, 2006
February 15, 2007
February 15, 2008
February 15, 2009
February 15, 2010
February 15, 2011
February 15, 2012
February 15, 1993
February 15, 1994
February 15, 1995
February 15, 1996
February 15, 1997
February 15, 1998
February 15, 1999
February 15, 2000
Principal
Amount
$10,000*
10,000*
10,000*
10,000*
10,000*
10,000*
10,000*
10,000*
10,000*
15,000*
15,000*
15,000*
15,000*
15,000*
15,000*
20,000*
20,000*
20,000*
20,000*
20,000*
70,000**
70,000**
70,000**
70,000**
70,000**
70,000**
70,000**
20,000**
Furthermore, the undersigned has on the date of this
receipt (i) noted on the "Delivery Ledger" attached to the
Initial Certificates T-A and T-B the date of the advance of
funds, the above amount advanced and the principal amount
remaining to be advanced following the delivery of the above
described Certificates and (ii) executed and dated the
"Registration Certificate of Paying Agent/Registrar" appearing
on each of the Certificates identified above.
DELIVERED, this January 14, 1992.
_ .. '-';f
,~
.,-...., '--u ~·'" '-~-:•
6171£
AMERITRUST TEXAS NATIONAL
ASSOCIATION, Austin, Texas
-2-
RECEIPT OF FUNDS AND CERTIFICATE OF DELIVERY
THE STATE OF TEXAS
COUNTY OF TRAVIS
§
§
§
Ameritrust Texas National Association, Austin, Texas has
received this date for the account of the City of Lubbock,
Texas (the "City") the amount of $95,000 from the Texas Water
Development Board (the "Board") in payment for the second
installment delivery of the "CITY OF LUBBOCK, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION SERIES 1991", dated November 15, 1991 (the
"Certificates"), and such amount has been transmitted to the
City's depository bank for credit to the City's account in
accordance with the instructions received.
Following the receipt of such funds, the following
· described Certificates in the aggregate principal amount of
$95,000 were delivered to the Board in evidence of the partial
funding of that certain loan to the City from the Board in the
total amount of $1,655,000, to wit:
Certificates
Numbered
29
30
* delivered from Lot B
Stated
Maturity
February 15, 2000
February 15, 2001
Principal
Amount
$50,000*
45,000*
Furthermore, the undersigned has on the date of this
receipt (i) noted on the "Delivery Ledger" attached to the
Initial Certificate T-B the date of the advance of funds, the
above amount advanced and the principal amount remaining to be
advanced following the delivery of the above described
Certificates and (ii) executed and dated the ••Registration
Certificate of Paying Agent/Registrar" appearing on each of the
Certificates identified above.
DELIVERED, this January 28, 1992.
(Bank Seal)
6933[
AMERITRUST TEXAS NATIONAL
ASSOCIATION, Austin, Texas
,..
RECEIPT OF FUNDS AND CERTIFICATE OF DELIVERY
THE STATE OF TEXAS
COUNTY OF TRAVIS
§
§
§
Ameritrust Texas National Association, Austin, Texas has
received this d'ate for the account of the City of Lubbock,
Texas (the "City") the amount of $200,000 from the Texas Water
Development Board (the "Board") in payment for the third
installment delivery of the "CITY OF LUBBOCK, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION SERIES 1991", dated November 15, 1991 (the
•certificates"), and such amount has been transmitted to the
City's depository bank for credit to the City's account in
accordance with the instructions received.
Following the receipt of such funds, the following
described Certificates in the aggregate principal amount of
$200,000 were delivered to the Board in evidence of the partial
funding of that certain loan to the City from the Board in the
total amount of $1,655,000, to wit:
Certificates Stated Principal
Numbered Maturitx: Amount
31 February 15, 2001 $25,000*
32 February 15, 2002 70,000*
33 February 15, 2003 70,000*
34 February 15, 2004 35,000*
* delivered from Lot B
Furthermore, the undersigned has on the date of this
receipt (i) noted on the "Delivery Ledger• attached to the
Initial Certificate T-B the date of the advance of funds, the
above amount advanced and the principal amount remaining to be
advanced following the delivery of the above described
Certificates and (ii) executed and dated the "Registration
Certificate of Paying Agent/Registrar• appearing on each of the
Certificates identified above.
DELIVERED, this April 3, 1992.
(Bank Seal)
7 l 2 l E
AMERITRUST TEXAS NATIONAL
ASSOCIATION, Austin, Texas
RECEIPT OF FUNDS AND CERTIFICATE OF DELIVERY
THE STATE OF TEXAS
COUNTY OF TRAVIS
§
§
§
Ameritrust Texas National Association, Austin, Texas has received this date
for the account of the City of Lubbock., Texas (the "City") the amount of$415,000 from
the Texas Water Development Board (the "Board") in payment for the fourth
installment delivery of the "CITY OF LUBBOCK, COMBINATION TAX AND SEWER
SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION
SERIES 1991", dated November 15, 1991 (the "Certificates''), and such amount has
been transmitted to the City's depository bank for credit to the City's account in
accordance with the instructions received.
Following the receipt of such funds, the following described Certificates in
the aggregate principal amount of $415,000 were delivered to the Board in evidence
of the partial funding of that certain loan to the City from the Board in the total
~"' amount of $1,655,000, to wit:
Certificates
Numbered
35
36
37
38
39
40
41
* delivered from Lot B
Stated
Maturity
February 15, 2004
February 15, 2005
February 15, 2006
February 15, 2007
February 15, 2008
February 15, 2009
February 15, 2010
Principal
Amount
$35,000*
70,000*
70,000*
70,000*
65,000*
65,000*
40,000*
Furthermore, the undersigned has on the date of this receipt (i) noted on the
"Delivery Ledger" attached to the Initial Certificate T-B the date of the advance of
funds, the above amount advanced and the principal amount remaining to be advanced
following the delivery of the above described Certificates and (ii) executed and dated
the "Registration Certificate of Paying Agent/Registrar" appearing on each of the
Certificates identified above.
DELIVERED, this April 28, 1992.
(Bank Seal)
10666
AMERITRUST TEXAS NATIONAL
ASSOCIATION, Austin, Texas
By:~~ Title: ASSiSTANT VICE PRESWEN'.f
-
RECEIPT OF FUNDS AND CERTIFICATE OF DELIVERY
THE STATE OF TEXAS §
§
COUNTY OF TRAVIS §
Ameritrust Texas National Association, Austin, Texas has
received this date for the account of the City of Lubbock, Texas
(the "City") the amount of $100,000 from the Texas water
Development Board (the ''Board") in payment for the fifth
installment delivery of the "CITY OF LUBBOCK, COMBINATION TAX AND
SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION
SERIES 199111 , dated November 15, 1991 (the "Certificates"), and
such amount has been transmitted to the City's depository bank for
credit to the City's account in accordance with the instructions
received.
Following the receipt of such funds, the following described
Certificates in the aggregate principal amount of $100,000 were
delivered to the Board in evidence of the partial funding of that
certain loan to the City from the Board in the total amount of
$1,655,000, to wit:
Certificates
Numbered
42
43
44
* delivered from Lot B
stated
Maturity
February 15, 2010
February 15, 2011
February 15, 2012
Principal
Amount
$25,000*
65,000*
10,000*
Furthermore, the undersigned has on the date of this receipt
(i) noted on the "Delivery Ledger" attached to the Initial
Certificate T-B the date of the advance of funds, the above amount
advanced and the principal amount remaining to be advanced
following the delivery of the above described Certificates and
(ii) executed and dated the "Registration Certificate of Paying
Agent/Registrar" appearing on each of the Certificates identified
above.
DELIVERED, this August 18, 1992.
(Bank Seal:)
35426
AMERITRUST TEXAS NATIONAL
ASSOCIATION, Austin, Texas
By:~~ Ti tle~ISTANT VICE PRESIDENT
,..
,....
RECEIPT OF fUNDS AND CERTIFICATE OF DELIVERY
THE STATE OF TEXAS §
§
COUNTY OF TRAVIS §
Ameritrust Texas National Association, Austin, Texas has
received this date for the account of the city of Lubbock, Texas
(the "City") the amount of $55,000 from the Texas Water Development
Board (the "Board") in payment for the final installment delivery
of the "CITY OF LUBBOCK, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION SERIES 199111 ,
dated November 15, 1991 (the "Certificates"), and such amount has
been transmitted to the City's depository bank for credit to the
City's account in accordance with the instructions received.
Following the receipt of such funds, the following described
Certificates in the aggregate principal amount of $55,000 were
delivered to the Board in evidence of the partial funding of that
certain loan to the City from the Board in the total amount of
$1,655,000, to wit:
Certificate
Numbered
45
* delivered from Lot B
Stated
Maturity
February 15, 2012
Principal
Amount
55,000*
Furthermore, the undersigned has on the date of this receipt
(i) noted on the "Delivery Ledger" attached to the Initial
Certificate T-B the date of the advance of funds, the above amount
advanced and the principal amount remaining to be advanced
following the delivery of the above described Certificates and
(ii) executed and dated the "Registration Certificate of Paying
Agent/Registrar" appearing on each of the Certificates identified
above.
DELIVERED, this June 10, 1993.
(Bank Seal") By:
Title
35426
STATE OF TEXAS
<!Iity nf illuhhnckf IDtxan
<!Inmbinatinn max anb &twtr &ynttm
~uhnrbinatt 11litn iRtutnut <!Itrtificatt nf ®hltgatinn
SERIES 1991
Otnljlmu: Dot~:
November 15, 1991
Registered Owner:
Principal Amount:
Tho City of Lubbock (hereinafter referred to .. the "City"), a budy corporate and municlpal corporation in the Coumy of Lubbock.
Swe of Teus, for Yallle ~. ocknowledges Itself Indebted to and hereby promises to pay to the Regi!tltred O..n<r namtd above.
or the "'8istrrtd ... i&ns thm:of, the Principal Amount 1tated abov<o, 011 the Sw.d Maturity date specified abov<o (or "' much then:of as shall ""' ha.., ....., paid UJ1011 prior rtdemptiml) and to pay interest on the oopaid Principal Amount hereof (computed on tho bosis of • J60.<Iay >""" of...,...., 30-day lt>JIIIhs) from the i11lcn:sl paymem dale next i""<'<'fing the "lloaistnstion Date" of this Cenif....., appearing
holow (unless this Certificate bean 1 "Regilualiot> Dale" H of In mtereSI paymttu dale, m which case mteresl sboll """""' from soeh date, or omlesl the Rqisuolillll Date of this CertifiCate is the deli..,ry date of this Certificate lor ils Predeeessot Certificate) to the Initial
pun:hasers. ill wllich case uumt shall ocerue from -dale of deli"'~)' to the initial pun;hasers It the per annum .... or lnte .... specified
above; aoehllllemtbeingpayablem""""""" UandAu~ ISofeaehyear,COI'tlmOIICingAui'JSI IS, 1992. PrincipalofthisCerlif....., is payable 11 its Slated Maturity '"' rtdempcion to the regi!tltrtd .,.. .. , ~. upon l"'*"'ltion and surrender. ot the principal offiCe of the Poyin& Agent!Roai-r eJ.eCtlting the re&l&lration cortlfao<: appearing hereon. or ito $UC<HSOI'. Interest is payable to the registered
""""" of this Ceniflale (or one'"'-Prodecessor Cenitlcates, as defined In the Ordinance hereinafter referenced) whose name appears
Slat~ Maturity: CUSIPNO:
DOLLARS
on the "S<curity Register" 1111intainod by the Paying Agem/Re&i<trar at the dose of busi""'' on the "Record Dote". which is the last
business day of the month neJtt preceding each intereSI payment dale and inl<rost sboll he paid by the Paying Agent/Registrar by chock
sent United Slates Maa, first claSs postage p"'J''id, to the add,_ of the regiotered owner ...corded in the Security Rqisltr oo the Record
Date or by such O<hor met bud, arn:ptable to the Plying Ageni/Regi<trar, rtqu<Sted by, and 11 the risk and expense of, the registered owner.
If the dale for the payment of the pri11<ipal of <K interest on the Cenifi<all:s shall he a Saturday, Sunday, 1 lepl holiday, or 1 doy when lloulking instl1utiotlo ia the Cily whore egi""'r is IO<:Ited a... Wlhoriml by law or executive order to close, then the dale for sud! paymttu shall he the next h ;. not such a Sllurday, Somlay. legol holiday. or day when bonking institutions
are aothorited to close; and payment on e the same fora; and effect as if !lllde .., the original dlle pay.-was due.
All payments of principal of, prm~ium, if any, and int...., on this Cerliflcalt sboll be -exchange or collection charges to the owner
hereof and in any coin or curreno;y of the United Stat<s of America which It the lime ofpayrnent is leplt<nder for the payment of public and private debts.
CONTINUED ON BACK •
IN WITNESS WHEREOF, lhe City Coo neil of the City hats caused litis Certiftcate to be duly executed under lhe olftcial seal of lhe City u of the Certiftcate Dale.
CITY OF LUBBOCK, TEXAS
••••. (t(' ~~ .. : -~ ! ;: :t./:1' .. t-·/If.
Cl'# .... ,:y--: .~ . " .. . ... (,"" .~ . ,. .""
... .. :. P(.&yiY
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This c~nijicau lu1J IN!m duly issu~ and ngist~ud wukr th~ pro>isiom of tht withilf·mtrrtion•d
OrdiiiiJIIu; tA~ unljlt:tll~ or Cf'TIIjlcar~s of tlv' abol'f! mtitl~ and df'sigMt~ urits origilltJ/1,· dt:lh·trrd
having IN!~n appi'OWid by lltt Allorney General of the Stat~ of Texas ami ngisrered b}· tht Comptroller
of l'llb/ic Ac<OIIIIIs, as shown by till' records of til~ Paying Agem/R~gi•trar .
IIMERI11WST TEXAS NA110NAL ASSOCIA110N
AllStill, To:as
as Paying Agmt/R~gistrar
/Ugistration Dat~:
CONnNUEO FROM FRONT • This CenifiCIIO il ..,. of the scrl<s """'iflcd in its title iuued ia the oqrqate principal
IIMWI!ofSI,6!15,Wl(bereinre~IOuthe''Omificoi<S")I'orthepurpmoofpoyinJ-tra<:Ulll
obliptions 10 be incumd ror (l) "'"''""'"inl impraveme!UJ 11111.-111 h Cl!)l's w..-1rer T.....,.nr Sy&lem, 10 wit: repl""""""t of llllRistin& ellluont pipeline and (lil profeuioflol~eMo:os
tndered in oon.necrion therewith. under tnd. in strict conformity lftilh the Consdwtion and laws
of the State of Te .... ponicuiMiy V. T.C.A., Loc:al Oo"""'me"' Code, Subcbaplcr C of Chapter
271, and pu.., .... , 10 111 Ordinance lllopled by lbc ,,,. ...... body of the Ci!)' (berein refemd
to u me *'Ordinance .. ).
Tbc CC11i(ICIIA mwrinJ on and after Februaty !S, 2003, moy be --prior to lbcir Stoled Maturities, lit lbc oplionoflbc Cil)l, in wllale a< iaport, Ind. ifiopart, ia inverse-1181 maturil)l, in priftCipallft1ClWits of Sj,W) or any inrevaJ multiple tberoof (and if within a Staled
loolaturil)l by lot by lbc PayiOJ ApatllltgisU11r). on Febr118ry 15, :100'.1, or on lftY dltelbcreafter,
lit lbc n:demp(ion price of por, togelbcr with oa:rved interat 10 lbc date of redemp<ion and upon
JO da)'1 prior written oorioe bein& aent by United SW.. Mail, first clau posr.oge prepaid. 10 the
!OJisrered """""'oflbc Cert.ifiCIIOs to be redeemod, onc1 IUbje<:t to lbc...,.. onc1 PfO'II&ions rolatins
!bema comaiaed ia lbc Onlin~~~ce. lflhb Cer1ificate (or any porlionoflbcprincipal....., beronf)
shall haYO been duly called fbr redemption and noti<e of SUCh rodemp<ion duly Biven, !ben upon
suc:h redemption date this CC11ificate (or lbc portion of die priaeipal111m hereof to be redeemed)
shall become due and payable. and into-lbcroon shall cease to oecrue from and after lbc
rodemp<ion date tberofor, provided moneys fbr lbc poyment of lbc redemp<ion price ond the inlen:sl
"" the principal amount to be redeemed 11> lbc date of redemjxiOfl 110 held fQc the purpose of ""'b
paymem by the Poyms A&entllltgiotm.
In the event of a ponial redemption of lbc principal amwnt or this Certificate, payment
of the redemption pri"' of such priftCipalllltiOIInt shall be made to the rqiSlCred owner only upon
.,.....llllltion ond Slltrender of this Certifi-to the Payins Aaentllltgistrarllt its principal offiCe
and 1bcro llllall be iSSiled, withoutchafse the~<ror 11> the reailtered -bcreof, 1 new Certificate
or Certificates of like maturity ond interest rate in any aulhoriud denominotions prvvlded by the
Ordinance for lbc then ul!Ridmned bolance of the principal Mlm hereof. If this Cettilicate is ""'I:IC'II!d ror redemp<ion. in whole or in part, the Cil)l 11111 the Paying A&entilltlisU11r shall ..,. be requiml
10 U11nsfer lhi• Certibte to 111 ustanee of the "'gistered owner within 45 days of lbc redemption
dote !bel< for; provided, .......,..,r. such limiltlliOfl on lriNferabilil)l shall not be applicable to m
e~c:han&e by lbc "'gimred owner of the unred........t hala!¥:e hereof ill the event of liS redemption
in part.
Tbc Cer~lriCllleS ""' paylblc from the pn>«ed.t of an ad valorom r.ox levied. within lbc
limilalions prescribed by IP. 11pon all tiJalble P"'>Cffll in the C'uy Ind. 10gether with the Pn>v¥lusly
mued Oblipti0115 (u defined in the Ordinance), .... lddi!ionally payable fi'Ofl1 ond secured by
1 lien ""and pled&e of the Net Revenues (as defined in lbc Onlinltllce) of the C'uy's Sewer System
(lbc "Symm''), such lien and pledge, howeY«, being junior and subonlirulte 11> the lien on ond
pledge of the Netllt..,nuea of the System securioa lbc paymenr of"Prior Lien Obllptlons'' (u
defined in lbc Onlinanc:e) bereafter issued by the City. In lbc Ordinance. lbc Cil)l ..,......, and
l'elllins lbc right to issue Prior Lien Obliptions while the Cenificai<S ore outslllnding widoout limitation as 10 principal amount but subject 10 any temu. conditions or mtrictiorls u may be appli<lblc thereto under law or otherwise, aa well 11 the riJI>Ito issue Additional Obliptions (as
defined ift the Ordinance). lltference is bore by made 10 the Ordinance. 1 copy of which ia on file in tho priftCipal office of the Paying Ageoi/RegisU11r, ond to all die pto'li&ions of which the Holder hereof by the-bereof ber<by assents, for definitions of terms; the description of ond the nature ond ex<en! of
the ... le>'ied ror the payment or ""' CertifiCI!es; the properlies ......U.ting ""' Sy ...... ; the ""'
Re•enues pled&ed to lbc paymem or the principal of and inte-on the Certilical<s; the oatur<
and utent and manner of enfQccement oflbc pledge; lbc tmns ond ~-relating 10 the U11Mfer of tiWl Cer~ir ... te: lbc c:onditi0115 upon which lbc Ordinance may be omended or suppl-
with or without the coniiCftt of lbc Holden of the CertifiCllleS: lbc riJ!>u. duties, and obllgat!Ofts
of the Cl!)l and the Payina Aaent!Registhr, lbc fOrms and provisions upon whicb the 1U levy
and lbc liens, pledge.o. charlO' and covenants made therein moy he diach•fled at or prior to the
Nturil)l of this CertifiCAte, and this CertiriCite ....,.d to be no lonJer O..Utonding lhereuoder;
and for lbc otbet termt and provisiont oonrained therein. Capir.olized ...,_used herein ha"" lbc meaninas us.iancd m the Onlinuce. ' ' r.. ,, • ~
This Cerli(ote, oubjcct to eertlin limillltions corll&lned iU the t!:!Cinor.a, moy he lnUISfemd
on the S..:Vril)l Register only upon ill ~ ond surrend"! •t•llle pri11<~,.-l al'.'lee of the
Poyins ~rar. with the Assir;nmeM hereon duly rodonod "''· oriiOCOm/'OIIi<J by.• wrin.n wtrumcnt or '"'""fer in rorm sarisfactory to the Payinll·A;;eno'ftegistnr duly·""""!.oi by, the
rqisten:d owner hereof, or his duly autberizccl aaenr: 1\l,llcD ft transfer on ~ri'Y~gister
occun, one or more new Mly registered ccrur.,..,.,.t.rtutr...-denominaticnturi or !be wnc
llf!greglte priftCipal """""' .. ul be issuod by the Poyq 1&<;~~ ~~~~ ~ rn.nsfmoo
or tnnsferees. • • • •
The Ci!)' and lbc Payins A&ent!Reai•U11r, tnd any ABCnt or cilhoJ:.-y~Yii""red
oWner bereof wbcse name appean on the SecutiiY•I!t'lioler (i) oo. ~ lecord te\s -etltidedtopaymentofinten:othereon,(li)onthe<III!OofSilrrenderotlllio,j;eni u -
etltitled to pll)'ll\l:fll of principal bereof at its sa...l l>lllturity oroilo -pti"'la II '1<\o!• or in
part, ond (iii) on ony otbet dote u the owner M.olf «IF purposes, and)>ei-lbc C~ nor lbc
Payina Agentllltgislru, or ony •&ent of eilbcr,l¥Jin affected Ill' Mli<e 10 -onmry.ltt lbc
event or nonpaymenr or imcrm on a scbcduled P!!'J"l''l' date ...rrot~ (3Q) li"J•.Ii>tlreafter, a..,.. rec:onl date for 5liCh into-paymem (.-':s'pefiallltcord Dlte''l wiiJ"(,; emMsbed by
lbc PayingApntlltegisrrar, if and when lluldJ ""'"" poymenr of ~h.ioterest 1&\l: --cived
from lbc City. Notice of lbc Speciallltconl ~Oft!! "'the Kh<'lliil-,c!,"Paymenfdoual'the palil due interesl (Wbi<b shall be IS days after the s...,MRccord Date) si.I!Pbe aelf/ fi.Jqst,fiYO (5)
business days prior to the Speeial lltcord Dale by 'ti!Jitod ~IAI4di!o !Ita class posi.IBC pn:pak!.
to the lddreu of each Holder appearins 011 the Wi~ ~giste"''l &e,eloso et'Wiolell on the
last busi..., day next prec:ediOJ the dote of maUinl Of""'~ notic:e. • • :
It is bcreby certirJed, recited, represented ond .....,a.11't<l.<luu the Cil)l i/o body corpon1c
and political subdivision duly otglt1iud and iegllly existiOJ'Iu*• and by virtue II'WO.'!IIillllion
and laws of the Smte of TOJ<as; <luu the issuance of the ~'lrtiftcates is duly autlb:iz$<1 by law:
dill all -· conditions ond things required to .. 111 and be dOIIc pf!Jodant to qd.jllotJF.........,
of 1bc Certi(~Cates to n:ndcr the same lawfid and valid obllptiona <If lbc'C~ have been prnperly
dono, ha\'0 happened and hove been performod in reaular ond <~ueti!N,.Corpf w ........ as required
by lbc COIIStitulion ond laws of lbc Stste of Teus, and the o.v;....,.. IIIJI(the CC11iftcates do AOC e:a.cecd any CONtitutionaJ or at.atutory limitation; and that due pmvtliOn has beco made for
the payment of the principal or and inurest on the Certificates by ""' levy or a ""' 11111 • pledge ot the Nee Revenue! of lhe System 11 af'orestaled. In t:asc any provision in this Certificate or aey
application tbcreofsball be invalid. illegal, orllllCIIforceable,lbc..tidity,'leplity, andenfon:eahillty
or lbc remoininJ pto'lisions and applications lhall nor in any way be affected or impatred thereby.
Tbc terms ond provisions of tllis Certifi..., ltlld the Ordioance shall be ronstrved in oa:ordance
with and shall be sovemed by lbc laws or the Stale of Tc ....
ASSIGNMENT
DAnD:-----------------------------
NOTICE: n.~ sign.atun on lllis assipmml MfUt CtJn"Uporwi witlt tit~ ltti1M ofrll~ n,utertd OWif~F
o.t II apfHON <111 IM /4« of 1M ..Uhi• Curiflcat~ in ,....,. ponict~lar.
City of Lubbock
P.O. sox 2000
Lubbock, Texas 79457
806-767-2026
FAX: sos-762-S62S
Mark S. Westergard
Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
November 22~ 1991
Office of
City Secretary
Re: $1,655,000 11City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation, Series 1991 11
Dear Mark:
As instructed in your letter of November 4, 1991, I am enclosing the
following documents:
-1 copy of Ordinance authorizing issuance of the certificates
-4 copies of Certificate of City Secretary relating to passage of the
Ordinance on November 14~ 1991
-4 copies of Certificate of City Secretary relating to passage of the
Ordinance on November 21, 1991
-4 copies of General Certificate: Section 8 completed, Exhibit A
attached .
-20 copies of Signature and No-Litigation Certificates (undated)
executed by the Mayor and me, with signature verification by W.R.
Collier, President of American State Bank
-3 copies of Paying Agent/Registrar Agreement relating to the
Certificates
-1 copy of letter to Attorney General of Texas.
-1 copy of letter to Ms. Arlene Chisholm
-1 copy of letter to Ameritrust Texas National Association
-2 Initial Certificates.
Mark S. Westergard
November 22, 1991
Page 2
All documents prepared for signature by Robert Massengale will be Federal
Expressed to you Monday, November 25, as Mr. Massengale is away from the
office until then.
If you have questions or if I need to do anything further on this, please
advise.
rb
enclosures
xc: Joe W. Smith, First Southwest Company
Rane te Boyd, CMC/AAE
City Secretary
J. Robert Massengale, Assistant City Manager for Financial Services
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 21st day of November, 1991, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: None ----~~~~~----~~--~~----~--business considered
Among other
at said meeting, the attached ordinance
entitled:
ORDINANCE NO. 9491 ----------------
AN ORDINANCE authorizing the issuance of •ciTY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991•; levying an ad valorem
tax upon all taxable property in the City and
pledging the Net Revenues of the City's Sewer
System for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters incident
and related to the issuance, sale, security,
payment and delivery of said Certificates,
including the approval and distribution of an
Official Statement pertaining thereto; and
providing an effective date.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by Councilman PhilHps and seconded by M31yor PrpTem Patterson the ordinance was duly passed and
adopted by the Council on second and final reading by the
following vote:
7 voted "For" --~o ___ voted "Against" o abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 21st day
of November, 1991.
~~~ ~secretarY v
City of Lubbock, Texas
(City Seal)
-2-
6 6 I IE
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§ s §
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 14th day of November, 1991, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Counci 1 being as
follows:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
were present at said meeting, except the all of said persons
following:~~~--~--~--~~----~----~~ Among other
business considered at said meeting, the attached ordinance
entitled:
ORDINANCE NO. _9~4~9~1 ________ __
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991"; levying an ad valorem
tax upon all taxable property in the City and
pledging the Net Revenues of the City • s Sewer
System for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters incident
and related to the issuance, sale, security,
payment and delivery of said Certificates,
including the approval and distribution of an
Official Statement pertaining thereto; and
providing an effective date.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made byMayor ProTem Pattersotand
seconded by Councilman Maloy the ordinance was duly passed and
adopted by the Council on first reading by the following vote:
7 voted •For• ___ o ___ voted •Against• O abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 14th day
of November, 1991.
(City Seal)
6610E
~ ~~ /~ --~
CiSecretary
City of Lubbock, Texas
-2-
.· •
GENERAL CERTIFICATE
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
WE, the undersigned, Mayor and City Secretary,
respectively, of the City of Lubbock, Texas, DO HEREBY CERTIFY
as follows:
1. Relative to Tax-Supported Indebtedness.
That the total principal amount of indebtedness of the
City, including the proposed $1,655,000 •city of Lubbock,
Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1991, • dated
November 15, 1991, payable from ad valorem taxes levied and
collected by the City is as follows:
OUTSTANDING INDEBTEDNESS ---------$95,783,752
SERIES 1991 CERTIFICATES ---------1,655,000
TOTAL INDEBTEDNESS ----------$97,438,752
2. Relative to Debt Service Requirements.
That a debt service requirement schedule for the
City's above-described outstanding indebtedness as well as the
proposed $1,655,000 "City of Lubbock, Texas, Combination Tax
and Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991,• dated November 15, 1991, is attached
hereto as Exhibit A and made a part of this certificate for all
purposes.
3. Relative to City Officials.
That certain duly qualified and acting officers of
said City are as follows:
B.C. McMINN
RANETTE BOYD
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
MAYOR
CITY SECRETARY
CITY MANAGER
ASSISTANT CITY MANAGER
FOR FINANCIAL SERVICES -
CITY TREASURER
4. Relative to Incorporation.
That said City is incorporated under the General Laws
of the State of Texas, and is operating under the Home Rule
Amendment to the Texas Constitution, Section 5, Article XI, as
amended in 1912; the City Charter was originally adopted at an
election held on December 27, 1917, and said Charter has not
been amended or revised in any respect since May 7, 1988, the
date of the last Charter Amendment Election.
5. Relative to Taxable Values.
That the assessed value of all taxable property (net
of exemptions) in the City, as shown by the tax rolls for the
year 1991, and which have been duly approved and are the latest
official assessment of taxable property in the City is as
follows:
TOTAL ASSESSED TAXABLE VALUES OF
REAL AND PERSONAL PROPERTY -----------$4,741,607,780
6. Relative to Nonencumbrance.
Save and except for the pledge of the income and
revenues of the City's Sewer System to the payment of principal
and interest to become due with respect to the proposed •city
of Lubbock, Texas, Combination Tax and Sewer System Subordinate
Lien Revenue Certificates of Obligation, Series 1991, • dated
November 15, 1991, and the •city of Lubbock, Texas, Combination
Tax and Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1988,• and the •city of Lubbock, Texas,
Combination Tax and Sewer System Subordinate Lien Revenue
Refunding Bonds, Series 1988,• said income and revenues of said
System have not been pledged or hypothecated in any other
manner or for any other purpose; and the above obligations
evidence the only liens, encumbrances or indebtedness of said
System or against the income and revenues of such System.
7. Relative to Income and Revenues.
The following is a schedule of the gross receipts,
operating expenses and net revenues of the City's Sewer System
for the years stated:
Fiscal Year
Ending 9-30
1986
1987
1988
1989
1990
1991 (forecast)
6682£
Gross
Receipts
$ 4,194,086
5,001,994
6,370,167
9,097,080
10,334,826
9,417,207
-2-
Operating
Expenses
$ 2,085,015
3,248,237
4,201,440
4,124,560
4,054,261
4,402,344
Net
Revenues
$ 2,109,071
1,753,757
2,169,327
4,972,520
6,280,565
5,014,863
8. Relative to Utility Properties.
The sewer utility properties owned, operated and
maintained by the City currently provides sewer services to
approximately 184.121 inhabitants of the City.
As of the date hereof, no question is pending and no
proceedings of any nature have been instituted in any manner
questioning the City•s right and title to its utility
properties or its authority to operate the same.
9. Relative to Rates and Charges.
The current monthly rates and charges for services
provided by the City's Sewer System are as follows:
SEWER RATES
Residential
First 31000 gallons (minimum)
Next 7,000 gallons
Over l01000 gallons
Maximum Monthly Charge
Commercial/Industrial (1)
First 3,000 gallons (minimum)
Over 3,000 gallons
(1) Industrial Waste Surcharges:
Biochemical Oxygen Demand
Total Suspended Solids
Present Rate
(effective 10/1/91)
$ 6.10
$ .75/M gallons
No additional charge
$11.35
$6.10(2)
$ .75/M gallons
$0.0457/lb.
$0.0272/lb.
(2) Based on 5/8 inch or 3/4/inch meter; higher m1n1mums
for larger meters up to a maximum charge for a 10 inch
meter of $835.32.
10. Relative to No Petition.
That no petition of any kind or character has been
filed with the Mayor, City Secretary or any other official of
the City protesting the issuance of the proposed "City of
Lubbock, Texas Combination Tax and Sewer System Subordinate
Lien Revenue Certificates of Obligation, Series 1991".
11. Relative to Interest Earnings.
That interest earnings on proceeds from the sale of
$1,6551000 "City of Lubbock, Texas 1 Combination Tax and Sewer
System Subordinate Lien Revenue Certificates of Obligation,
Series 1991" will be deposited to the Certificate Fund
established by the ordinance authorizing the issuance of the
-3-
obligations, save and except during the time of construction of
improvements and extensions being financed by such obligations,
such interest earnings, upon approval of the governing body of
the City, will be used for the construction of improvements and
extensions for which such obligations are being issued.
~~ itSecretary~iy of
Lub:Oock, Texas
(City Seal)
-4-
6682E
EXHIBIT A
ctn or tumlOCK, mAS
GEIIERAL OBLIGM'IOI DEBT SERVICE UQUIJEIEH'1'S
$1,655,000 <X>!BimiOI !AX AID SEWD StSTEK
SOOOJDimE LIEiltEVEllt1E cnmiCATES or OBLIGATIOJI,
SERIES 1991 DATED 11·15-1991: PmfCIPAL DOE
FISCAL 2·15-1993/2012: ImR!S'l 001 8•15-1992 AID EACII
n:.u 2·15 ' 8•15 ~
EIDIE OO'l'STAIDIIC DEB'J.' ImRES'1' CO!BIIED I!QUWXER'rS
9-30 Pm'CIPAL mEREST rotAL PlllfCIPAL mE Il'lEmT rorAL PmiCIPAL mEREST TO!AL
1992 $8,615,000 $7,134,459 $15,809,459 $ $68,269 * $68,269 $8,675,000 $7,202,728 $15,877,728
1993 8,185,000 6,030,654 14,215,654 80,000 5.50\ 45,518 125,518 8,265,000 6,076,172 14,341,172
1994 7,920,000 5,399,803 13,319,803 80,000 5.50, 43,318 123,318 8,000,000 5,443,121 13,443,121
1995 7,455,000 4,792,766 12,247,766 80,000 5.50\ 41,118 121,118 7,535,000 4,833,884 12,368,884
1996 7,555,000 4,196,083 11,751,083 80,000 5.50\ 38,918 118,918 7,635,000 4,235,001 11,870,001
1997 7,364,434 3,757,496 11,121,930 80,000 5.50, 36,718 116,718 7,444,434 3,794,214 11,238,648
1998 7,365,076 3,192,419 10,557,495 80,000 5.50\ 34,518 114,518 7,445,076 3,226,937 10,672,013
1999 7,251,493 2,625,465 9,876,958 80,000 5.50, 32,318 112,318 7,331,493 2,657,783 9,9&9,276
2000 4,789,986 4,124,389 8,914,375 80,000 5.50, 30,118 110,118 4,869,986 4,154,507 9,024,493
2001 4,414,442 3,365,480 7,779,922 80,000 5.50\ 27,918 107,918 4,494,442 3,393,398 7,887,840
2002 4,008,639 2,417,784 6,426,423 85,000 5.50, 25,718 110,718 4,093,639 2,443,502 6,537,141
2003 3,844,682 1,701,309 5,545,991 85,000 5.50, 23,380 108,380 3,929,682 1,724,689 5,654,m
2004 2,705,000 1,004,726 3,709,726 85,000 5.50, 21,042 106,042 2,790,000 1,025,768 3,815,768
2005 2,705,000 820,488 3,525,488 85,000 5.50\ 18,704 103,704 2,790,000 839,192 3,629,192
2006 2,710,000 639,400 3,349,400 85,000 5.50, 16,366 101,366 2,795,000 655,766 3,450,766
2007 2,710,000 459,328 3,169,328 85,000 5.50\ 14,028 99,028 2,795,000 473,356 3,268,356
2008 2,065,000 304,578 2,369,578 85,000 5.50, 11,690 96,690 2,150,000 316,268 2,466,268
2009 1,730,000 188,638 1,918,638 85,000 5.50\ 9,352 94,352 1,815,000 197,990 2,012,990
2010 1,165,000 103,012 1,268,012 85,000 5.50, 7,014 92,014 1,250,000 110,026 1,360,026
2011 1,165,000 34,338 1,199,338 85,000 5.50, 4,676 89,676 1,250,000 39,014 1,289,014
2012 . 85 000 5.50, 2,338 87,338 85,000 2,338 87,338
$95,783,752 $52,292,615 $148,076,367 $1,655,000 $553,039 $2,208,039 $97,438,752 $52,845,654 $150,284,406
*IB'l'EIES! CAI.CULmD FiOJI DUE OF m·CERTIFICA'IFS (11•15-1991);
II PI!CriCI m CERrinCAm WILL BE DELIVmD II IIS!AU.IEI'!'S
• mB Il'lEmT OJ EACII IISTALL11E1'1 COJIIIEICIIG 01 DELIV!R! •
FISCAL
YEA! OOKBIIED
EHDIIiG DEBT SERVICE
9·30 i!QOIIEKEftS
1992 $15,877,728
1993 14,341,172
1994 13,443,121
1995 12,368,884
1996 11,870,001
1997 11,238,648
1998 10,672,013
1999 9,989,276
2000 9,024,493
2001 7,817,840
2002 6,537,141
2003 5,654,371
2004 3,815,768
2005 3,629,192
2006 3,450,766
2007 3,268,356
2008 2,466,268
2009 2,012,990
2010 1,360,026
2011 1,289,014
2012 87 338
$150,284,406
CITY OF LUBBOCK, BIAS
DIVISIOI OF GENERAL OBLIGATIOB DEBT SERVICE ~S
(IICLODIIG $1,655,000 OOJmii!!IOI !AI .liD SEWER S!st'EII
SOOORDIIATE LIEH IEVEHtJE CEH'IfiCATES OF OBLIGATIOB,
SERIES 1991
LESS: LESS: LESS: LESS:
W!fEi'I«)IJCS SEWER OOLF am.sE SOLID W!S'rE
SYSTD SIS!D SISfD DISPOSAL SYSTEM
GERERlL GEKEIAL GDmL GEmAL
OBLIGATIOB OBLIGA!IOB OBLIGATIOJf OBLIGAfiOH
IEQOIIEHEIITS REQOIIEKEHTS REQOIIEKEIITS REQOIIEIIEHTS
$6,235,314 $2,196,626 $84,018 $204,928
5,471,509 2,147,915 15,642 177,075
5,092,255 2,100,504 82,043 168,105
4,673,211 1,958,607 83,218 160,285
4,449,522 1,955,182 84,224 153,558
4,199,102 1,878,546 85,302 146,715
3,980,574 1,804,528 81,425 139,758
3,716,002 1,712,926 82,400 132,656
3,342,359 1,580,084 83,025 125,469
3,037,573 1,130,310 83,300 113,438
2,562,599 957,124 83,225
2,224,496 830,691 82,800
1,639,570 730,972
1,561,747 692,952
1,486,568 654,808
1,412,395 616,489
1,118,638 234,846
1,029,524 206,310
879,863 92,014
833,288 89,676
87,338
$58,946,109 $23,658,448 $1,000,622 $1,521,987
2
GEHERlL
PURPOSE
GEHER!L
OSLIGATIOI
REQOWIIEHTS
$7,156,142
6,459,031
6,000,214
5,493,563
5,227,515
4,928,983
4,665,728
4,345,292
3,893,556
3,523,219
2,934,193
2,516,384
1,445,226
1,374,493
1,309,390
1,239,472
1,112,784
771,156
388,149
366,050
$65,157,240
November 21, 1991
Ameritrust Texas National Association
1000 San Jacinto Center
98 San Jacinto Blvd.
Austin, Texas 78701
Attention:
RE: $1,655,000 "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue ·certificates of
Obligation, Series 1991", dated November 15, 1991
Dear . -----·
In reference to the above described series of
obligations, the delivery of the same to the initial purchasers
is to occur at your Bank with two (2) fully registered
obligations in the total ·principal amount of said series (the
"Initial Obligations"). When the Initial Obligations have been
approved by the Attorney General and registered by the
Comptroller of Public Accounts, it will be sent by the
Comptroller to the City's Bond Counsel, Fulbright & Jaworski,
Attorneys at Law, 2200 Ross Avenue, Suite 2800, Dallas, Texas
for their examination. After the examination of the Initial
Obligations by said Firm, the same will be sent to you and
thereupon you are authorized to deliver the same to the initial
purchasers thereof, to wit: Texas Water Development Board, or
their order, upon payment being made therefor in immediately
available funds in accordance with the terms of the Certificate
and Receipt for Payment enclosed herewith.
When payment for the
transmit the proceeds thereof
immediately available funds
American State Bank, Lubbock,
obligations has occurred, please
by the fastest means available in
to the City's depository bank,
Texas, Attention: Selma Sedgwick.
Enclosed herewith you will find four copies of the
Signature and No-Litigation Certificate and three copies of the
Certificate and Receipt for Payment executed and compl~ted
except as to date. When payment for the obligations is made,
please date and release one copy of the Signature and
No-Litigation Certificate to the purchasers and forward the
remaining copies of said Certificate and all executed and dated
copies of the Certificate and Receipt for Payment to Bond
Counsel at the address shown above.
6685£-4
Page 2
November 21, 1991
Should any litigation having any effect upon the subject
obligations develop prior to the time you have received payment
for same, the undersigned or other official of the City will
notify you at once by telephone and by telegraph. You may thus
be assured that there is no such litigation at the time the
obligations are delivered to you unless you have been advised
otherwise in the manner aforementioned.
Texas
6685E-5
November 21, 1991
Ms. Arlene Chisholm
Economic Analysis Center
Comptroller of Public Accounts
P.O. Box 13528, Capitol Station
Austin, Texas 78711
RE: $1,655,000 •city of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991•, dated November 15, 1991
Dear Ms. Chisholm:
When the Initial Certificates of the series described
above have been received from the Attorney General, please
register the same on behalf of the City, and when so
registered, forward them by overnight delivery to the firm of
Fulbright & Jaworski, 2200 Ross Avenue, Suite 2800, Dallas,
Texas 75201, Attention: Mark S. Westergard for further
handling under our instructions to them.
It is further requested that three copies of the
approving op1n1on of the Attorney General and Comptroller's
Registration Certificate be enclosed with the Initial
Certificates when they are sent to said firm.
Very truly yours,
Texas
661!15£-2
November 21, 1991
Attorney General of Texas
411 West 13th Street -8th Floor
Austin, Texas 78701
Attention: Public Finance Division
RE: $1,655,000 "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991•, dated November 15, 1991
Ladies and Gentlemen:
Enclosed herewith are the Initial Certificates of the
above series and a Signature and No-Litigation Certificate
relating thereto, executed and completed except as to date.
When the record of proceedings relating to the issuance
of the above referenced series and the Initial Certificates
have been approved by your office, this will be your authority
to insert that date in the Signature and No-Litigation
Certificate and deliver such Initial Certificates to the
Comptroller of Public Accounts for registration.
Should any litigation in any way affecting the issuance
of the certificates or the security for the payment thereof
develop prior to that date, the undersigned or other official
of the City, wi 11 notify you at once by telephone and by
telegraph. You may thus be assured that there is no such
litigation at the time the certificates are finally approved
unless notice to the contrary has been given in the manner
aforementioned.
Very truly yours,
6685£-1
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
TELEPHON£•214/855•8000
F'ACS I MILE: 214/865·8200
WRITERS DIRECT DIAL NUioiBER:
Ms. Ranette Boyd
City Secretary
P. 0. Box 2000
Lubbock, Texas 79457
SUITE 2600
DALLAS, TEXAS 715201
November 4, 1991
HOUSTON
WASHINGTON, D. C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
RE: $1,655, 000 "City of Lubbock, Texas, Combination Tax
and Sewer System Subordinate Lien Revenue Certificates
of Obligation, Series 1991"
Dear Ranette:
Enclosed herewith are the proceedings relating to the
issuance of the above described certificates. The enclosures
are as follows:
1. Two copies of the Ordinance authorizing the
issuance of the certificates. When executed, one copy is for
the City's records and one copy is to be returned to us.
2. Five copies of the Certificate of City Secretary
relating to passage of the ordinance on first reading. When
completed and executed, one copy is for the City's records and
four copies are to be returned to us.
3. Five copies of the Certificate of City Secretary
relating to the passage of the ordinance on second reading.
When completed and executed, one copy is for the City's files
and four copies are to be returned to us.
4. Five copies of the General Certificate to be
completed (Section 8), dated, and executed. Retain one copy
for your files and return four copies to us. The debt service
requirement schedule attached as Exhibit A will be furnished by
First Southwest Company.
5. Twenty copies of Signature and No-Litigation
Certificate to be executed by the Mayor and City Secretary and
their signatures verified by the City's depository bank. The
Ms. Ranette Boyd
November 4, 1991
Page 2
seal of the City and the seal of the bank are to be impressed
on each Certificate. DO NOT DATE these Certificates as they
will be dated at the time of delivery. Return all copies to us.
The signatures of the City officials must conform to
the signatures of those officials signing the Initial
Certificates.
6. Three copies of the Paying Agent/Registrar
Agreement relating to the Certificates. After execution, all
copies should be returned to us. We will forward them on to
Ameritrust Texas National Association.
7. Five copies of Certificate as to Tax Exemption to
be signed and left undated. Return all signed copies to us.
8. Two copies each of four letters of instruction to
be signed by the appropriate City officials. Retain one copy
of each letter for your files and return one copy to us.
9. The Initial Certificates designated T-A and T-B
to be signed, sealed and returned to us.
10. Three copies of Form 8038-G to be signed and
returned to us. We will complete the form and file with
Internal Revenue Service after delivery of the certificates.
Please call if you have any questions.
MSW/lc
Enclosures
cc: Joe w. Smith (w/encls.)
6678E
Very truly yours,
-rJ1~v
Mark s. Westergard
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
TELEPHONE:lZ14/6SS·6000
f'ACSIMILE: ZI4/S55•6200
WRITERS OIRECT OIAL NUMBER:
VIA FEDERAL EXPRESS
Ms. Ranette Boyd
City Secretary
1625 13th Street
Lubbock, Texas 79401
SUITE 2500
DALLAS, TEXAS 75201
November 7, 1991
HOUSTON
WASHINGTON, D. C.
AUSTIN
SAN ANTONIO
DALLAS
NEW 'I'ORK
LOS ANGELES
LONPON
ZURICH
HONG KONG
RE: City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation,
Series 1991
Dear Ranette:
Enclosed please find five copies of the revised General
Certificate with respect to the captioned financing.
Please call if you have any questions.
Sincerely, ~~R-~
Vickie L. Hall
VLH: lc
Enclosures
cc: Mr. Robert Massengale (w/encl.)
Mr. Joe Smith (w/encl.)
00018-SO
FIRST 8oaUuv-e4f; COMPANY
JOSEPH W. SMITH
SENIOR VICE PRESIDENT
Mrs. Ranette Boyd
City Secretary
City of lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Dear Ranette:
INVESTMENT BANKERS
P.O. BOX 2754•79604
402 CYPRESS, SUITE 10:J
ABILENE, TEXAS 79601
November 6, 1991
Re: $1,655,000 City of Lubbock, Texas
Combination Tax and Sewer System
Subordinate Lien Revenue Certificates
of Obligation, Series 1991
(915) 672-8432
Enclosd are five (5) copies of Exhibit A to be attached to the General
Certificates in connection with the above.
Please let me know if I can be of any assistance.
JWS:gc
Enclosures
cc: Mr. J. Robert Massengale
•
******************************************************* * * * DELIVER TO: RANETTE BOYD * • * * *
* ORIGINAL • * SENT: 11/07/91 TIME: 11:10 *
* FROM: BEATRICE CERVANTEZ * * SUBJECT: INFO YOU REQUESTED * * PRINT DATE: 11/07/91 TIME: 13:46 *
* * *******************************************************
WASTEWATER SERVICE POPULATION CURRENTLY SERVED WITH WASTEWATER
SERVICE IS 184,121.
SRF DOCUMENTS EXHIBIT 13 "EPA FORM 04700-4 PRE AWARD COMPLIANCE
REVIEW REPORT•.
November 21, 1991
Messrs. Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
RE: $1,655,000 •city of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1991•, dated November 15, 1991
Gentlemen:
Enclosed you will find five Certificates as to Tax
Exemption executed but undated.
At such time as the above described certificates are
delivered to the purchaser, you are authorized to complete and
date each of these certificates.
661SE-3
Very truly yours,
A~istant City Mang~ for
Financial Services
City of Lubbock, Texas
.. Jll 12-89
3497
Form 8Q38•G Information Return for Tax-Exempt Governmental Obligations
(Rev. October 1989) · • Under Section 149(1)
• See separatelnstruetlons
OMB No. 1545.0720
[apires S-31·92
(Use Form 8038-GC ifthe issue price is under$100,000)
Check box if obligations are tax or other revenue anticipation bonds.,..
Check box if obligations are in the form of a lease or installment sale .,.. 0
0 Education • • • • • • • • . • • • • • • • • •
0 Health and hospital • •
0 Transportation • •
14 0 Public safety • • • • • • • •
15 00 Environment (including sewage bonds)
16 0 Housing • • • • • • • • •
17 0 Utilities • • • • • • • • •
18 0 Other. Describe (see Instructions).,..--------------------
Issue price of entire issue (enter line 20e) • • • • • • • • • • •
Proceeds used for bond issuance costs (including underwriters' discount). •
Proceeds used for credit enhancement • • • • • • • • • • •
Proceeds allocated to reasonably required reserve or replacement fund
Proceeds used to refund prior issues • . • • • • • • • •
Total (add lines 23. 24, 25, and 26) • • •
Enter the remaining weighted average maturity of the bonds to be refunded
Enter the last date on which the refunded bonds will be called • • • •
Enter the dat s the refunded bonds were issued .,..
....
" .... N/A years
N/A
32 Enter the amount of the state volume cap allocated to the issue • • • • • • • • • • • • • .,.. __ ....;;-.()-Jo.t:;=------
33 Enter the amount of the bonds designated by the issuer under section 265(bX3XBXiXIII) (small
issuer exception) • • • • • • • • • • • • • • • • • • • • • • • • • • • • .,.. __ ...;::Q...;;;w:;;;;_ ___ _
34 Pooled financings:
a Enter the amount of the proceeds of this issue that are to be used to make loans to other eovemmental units .,.. __ ...:=0-=-c=-----
b Check box if this issue is a loan made from the proceeds of another tax·exempt issue .,.. 0 and enter the name of the
issuer .,.. and the date of the issue .,..
Please
Sign
Here
Unclet penalties of ~urr. I declare that I !~.ave eum•ned thiS ret11rn and accompanrmc Kheel11les and statements. anc1 to the best of my knowlel:lp ano bel.ef,
they 111 true. correct. and c:ompk!te.
Date
J. Robert Massen:Jale
Asst. City Manager for
"" Finaricial Services
, TrPe 1M' Pf•nt name and btle ·
For Paperwork Reduction Ad Notlu. see pa&e 1 of the Instructions. Form 8038·G (Rev. 1().19)
(The next pap Ia 3497·11
'·' .... ·~.
CERTIFICATE AS TO TAX EXEMPTION
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
I, the undersigned, Assistant City Mariager for Financial
Services of the City of Lubbock, Texas, (the "Issuer"), ·who
with other officers are charged with the responsibility of
issuing and delivering the "CITY OF LUBBOCK, TEXAS, COMBINATION
TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1991", dated November 15, 1991, in the
principal amount of $1,655,000 (the ·"Certificates"), DO HEREBY
CERTIFY that, to the best of my knowledge and belief, the
following facts and estimates are reasonable expectations
relating to the issuance and sale of the Certificates and the
use and expenditures of proceeds thereof. Unless otherwise
noted, capitalized terms herein shall have the same meanings
ascribed thereto in the ordinance .authorizing the issuance of
the Certificates.
1. Purpose of the Certificates.
The Certificates are being issued to finance the costs
of constructing improvements to the City•s Wastewater Treatment
System (the "Project"), and to pay contracts for professional
services.
2. Source and Disbursement of Funds.
2.1 The Certificates were issued and delivered to the
purchasers thereof in installments, the first installment being
delivered on , 1991 and being in the amount of
$ The agreed purchase price of the Certificates
is $1,655,000.
2. 2 Costs of issuance relating to the Certificates
are estimated to be $ 17,000 and wi 11 be paid out of proceeds
of the Certificates. Costs of the Project are estimated to be
$ 1,638,000
The Issuer acknowledges and understands that based on
the certifications and representations appearing in paragraph
(3) below, the amounts received from the purchaser of the
Certificates, pending the expenditure thereof for authorized
projects and purposes, may be invested without restriction as
to Yield for a temporary period not to exceed three (3) years
from the date of this Certificate, and in the event any of such
proceeds of the Certificates shall remain unexpended on the
third· anniversary date of this Certificate, any investment of
such proceeds after such anniversary date shall be restricted
to obligations or accounts that have a Yield not in excess of
the Yield of the Certificates ..
3. Temporary Period.
3.1 Within six (6) months from the date of this
Certificate, the Issuer will have incurred substantial binding
obligations or commitments in the amount of at least $100,000
for the Project to be financed by the Certificates by entering
into contracts for either construction, architectural services,
engineering services, land acquisitions, site development,
construction materials, or the purchase of equipment ..
3. 2 After entering into said contracts, work on the
Projects will proceed with due diligence to completion, which
is expected to occur on or about July, 1992
3.3 All of the spendable proceeds of the Certificates
will be expended for Project costs by the end of the three-year
period from the date hereof.
4. Certificate Fund and the System Fund.
4.1 The Certificates are payable from an ad valorem
tax levied upon all taxable property in the Issuer, and are
additionally payable from a .pledge of the Net Revenues of the
City's Sewer System, and all taxes levied and collected for and
on account of the Certificates, together with Net Revenues
pledged and appropriated to pay the Certificates, are to be to
deposited into a special Fund or Account . (the "Certificate·
Fund") created and established for the payment of the
Certificates, as provided in Section 10 of the Ordinance
authorizing the issuance of the Certificates. The Certificate
Fund was created primarily to acheive a proper matching of
revenues and debt service for the Certificates within each bond
year and moneys deposited therein will be used solely to pay
the principal of and interest on the Certificates as the same
becomes due and payable and the Issuer reasonably expects that
there will be no other funds that will be so used or pledged or
otherwise restricted so as to be available with reasonable
certainty, to be used.
4.2 To the extent taxes collected for the payment of
the Certificates equals the annual debt service paid, amounts
deposited in the Certificate Fund will be spent within a
thirteen month period beginning on the date of the deposit.
-2-
.. ~ ,.
Any amounts deposited in such Certificate Fund in excess of the
annual debt service to be paid on the Certificates plus an
amount not to exceed the greater of (i) one year's earnings on
the Certificate Fund or ( ii) one-twelfth ( 1/12) of the annual
debt service on the Certificates will, to the extent such money
are invested, be restricted to investments which have a Yield
not in excess of the Yield of the Certificates. Any amount
received from the investment of money held in the Certificate
Fund will be spent within a one-year period' beginning on the
date of receipt.
4.3
pledged in
Ordinance.
Any amounts deposited to the System Fund shall be
the priority set forth in Section 13 of the
5. Miscellaneous.
5.1 The Issuer has not been notified of any listing.
or proposed listing of ·the Issuer by the Internal Revenue
Service as an issuer that may not certify its Certificates.
5.2 Any amount of income derived from the investment
of money received upon the sale of the Certificates or from the
investment of such investment income will either (i) be
expended on the Project, or (ii) if and when found not to be
required for such expenditure, will be deposited in the
Certificate Fund and expended to pay principal and interest on
the Certificates, within three (3) years from the date hereof
or within one (1) year of receipt, whichever is sooner.
5. 3 The Issuer has, in addition to the moneys
received from the sale of the Certificates, moneys that are
invested in various funds which ·are pledged for various
purposes. These other funds are not available to accomplish
the purposes described in 1 above, except as described in
Section 4 hereof.
5.4 The principal amount of the Certificates,
together with the investment income to be realized from the
investment thereof based on current market rates (estimated to
be $ -0-) , is not expected to be in excess of the most
recent estimates of the amounts necessary to acquire, construct
or equip, as the case may be, the Projects and paying costs of
issuance of the Certificates.
5.5 No person or group of persons will have access to
or use of or derive any special benefit (other than as members
of the general public) from the facilities and improvements to
be constructed with the proceeds of the Certificates, pursuant
to any lease, management or payment contract or any other
arrangement.
-3-6614E
5. 6 No other obligations of the Issuer payable from
the same source of funds as the Certificates and with a common
plan of financing have been or will be issued within 31 days of
the date hereof.
5. 7 The yield on the Certificates, calculated on the
basis that the present worth of all payments of principal and
interest to be paid on the Certificates produces an amount
equal to the "Issue Price• (as represented by the initial
purchasers) of the Certificates, is \.
5. 8 In accordance with Section 28 of the Ordinance,
unless the Certificates meet an exception described in section
148(f) of the Code, the City will pay Rebatable Arbitrage to
the United States at the times and in the amounts as provided
in section 148 of the Code. It is anticipated that the
Certificates may meet the exception contained in· section
148(f) (4) (C) of the Code, relating to obligations the proceeds
of which are used for construction expenditures and are spent
within a twenty-four (24) month period.
CITY OF LUBBOCK, TEXAS
DATED:
-4-6614£
CITY OF LUBBOCK
Box 2000 I Lubbock, Texas 79457 /806-762-6411
Fax Transmittal Sheet
Date: N'6uet«\\:,e..L c ~6 ) Jqq\
No. of pages (including this page): llll._....c.'Z _________ _
From: CITY OF LUBBOCK
Name/Dept: ~oe~~---;E'P~j'l, ~ ~<X~
Fax number. m-3623
PLEASE DELIVER IMMEDIATELY
Comments/Instructions: -----------------
...
.. ,
IN WITNESS WHEREOF, the City Counci 1 of the City has
caused this Contract to be duly executed under the official
seal of the City as of the Contract Date.
CITY OF LUBBOCK, TEXAS
~ ' . ··~~.;~~~
Mayor
46908
::
,;'! FULBRIGHT & JAWORSKI
2200 Ross AVENUE
TELEPHO .. E:21<4/8SS·8000
FACSIMILE! 214/855-8200
WRITIERS DIRECT DIAL NUMBER:
VIA FEDERAL EXPRESS
Ms. Ranette Boyd
City Secretary
1625 13th Street
Lubbock, Texas 79457
SUITE 2600
DALLAS, TEXAS 7S201
December 17, 1991
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
. ZURICH
HONG KONG
RE: City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation,
Series 1991
Dear Ranette:
Enclosed please find five copies of a No Default
Certificate to be executed in connection with the above
captioned financing. After the copies have been executed and
dated, please send one copy directly to the Attorney General,
along with the enclosed transmittal letter and return the
remaining four copies to us. Federal express envelopes have
been provided for your convenience.
Thank you for your assistance. Please call if you have
any questions.
Sincerely, / t)~RJf~
Vickie L. Hall
VLH: lc
Enclosures
OOOlB-89
TELEPHONE:214/855·8000
P"ACSIMIL£: 214/855·8200
WfUTEiS DIRECT DIA~ NUMBER;
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2600
DALLAS, TEXAS 75201
December 18, 1991
VIA FEDERAL EXPRESS
Ms. Lynn Stuck
Office of the Attorney General
of Texas
411 w. 13th Street, 8th Floor
Austin, Texas 78701
HOUSTOIII
WASHINGTON, C. C.
AUSTIN
SAN ANTONIO
CALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
RE: City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation,
Series 1991
Dear Lynn:
Pursuant to our telephone conversation of December 17,
1991, enclosed please find a No Default Certificate with
respect to the above captioned financing.
Please call if you have any questions.
Sincerely,
lL:L 'rl.Jf~
Vickie L. Hall
VLH: lc
Enclosur~
OOOtB-90
.. .
NO·DEFAULT CERTIFICATE
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
We, the undersigned, Mayor and City Secretary, respectively, of the
City of lubbock, Texas, DO HEREBY CERTIFY as follows:
1. No Default.
The City of lubbock, Texas, 1s not in default as to any covenant,
condition or obligation contained in the ordinances authorizing the
issuance of "City of lubbock, Texas, Combination Tax and Sewer System
Subordinate lien Revenue Certificates of Obligation, Series 1988," and the
"City of lubbock, Texas, Combination Tax and Sewer System Subordinate lien
Revenue Refunding Bonds, Series 1988," and that there is on hand in the
Certificate Fund created for the payment and security of the aforesaid
obligations the amounts required to be on deposit.
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF LUBBOCK,.TEXAS, this
the 18th day of December, 1991.
6856E
TELEPHONE: 214/855·8000
f"ACSIMILE: 214/855·8200
WRITER'S DIRECT DIAL NUMBER:
214/855-8002
Ms. Ranette Boyd
City of Lubbock, Texas
1625 13th Street
Lubbock,Texas 79401
FULBRIGHT & .JAWORSKI
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 75201
August 14, 1992
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
RE: City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1991
Dear Ranette:
Enclosed please find twenty (20) copies of the Signature and No-Litigation
Certificate relating o the captioned certificates of obligation. The certificates of
obligation are d · ered in installments, therefore, we have used all the Certificates
previously ex ted. I would appreciate it if you could sign and seal each copy of the
Certificat nd have Mr. McMinn execute each copy of the Certificate as well. While
we ac owledge that Mr. McMinn is no longer the Mayor of the City, his verified
si ture must appear on the Certificates. If you have difficulty in obtaining Mr.
McMinn's signature, please let me know. Once the Certificates have been executed and
the Bank has signed and sealed the Certificates, please return all copies to us.
Please call if you have any questions.
Very truly yours,
-1'Yfo.J/
MarkS. Westergard
MSW:lc
Enclosures
9697/114
--
SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS § s
COUNTY OF LUBBOCK § s
CITY OF LUBBOCK §
WE, the undersigned, officials of the City of Lubbock, Texas
(the "Issuer"), do hereby certify as follows:
(1) That this certificate is executed and delivered with
reference to the following described certificates of obligation:
11CITY OF LUBBOCK, TEXAS COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991,"
dated November 15, 1991 (the "Certificate Date"), in the aggregate
principal amount of $1,655,000 (the "Certificates").
(2) The certificates have been duly and officially executed
by the undersigned with their manual or facsimile signatures in the
same manner appearing thereon, and the undersigned hereby adopt and
ratify their respective signatures in the manner appearing on each
of the Certificates whether in manual or facsimile form, as the
case may be, as their true, genuine, and official signatures.
(3) That on the certificate Date and on the date hereof, we
were and are the duly qualified and acting officers indicated
therein and authorized to execute the same.
(4) The legally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithographed on all of the
certificates and impressed on this certificate.
(5) No litigation of any nature is now pending before any
federal or state court, or administrative body, or to our knowledge
threatened, seeking to restrain or enjoin the issuance or delivery
of the certificates or questioning the issuance. or sale of the
Certificates, the authority or action of the governing body of the
Issuer relating to the issuance or sale of the Certificates, the
levy of the tax or the assessment and collection thereof to pay the
principal of and interest on the Certificates, the collection of
the revenues of the city's Sewer system (the "system") or the
imposition of rates and charges with respect to the System, pledged
to pay the principal of and interest on the Certificates, or that
would otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on the
Certificates; and that neither the corporate existence or
boundaries of the Issuer nor the right to hold office of any member
35533
of the qoverninq body of the Issuer or any other elected or
appointed official of the Issuer is beinq contested or otherwise
questioned.
(6) That no petition or other request has been filed with or
presented to any official of the Issuer requestinq any proceedinq
authorizinq the issuance of the Certificates adopted by the
qoverninq body of the Issuer be submitted to a referendum or other
election; no authority or proceedinq for the issuance, sale, or
delivery of the Certificates, passed and adopted by the qoverninq
body of the Issuer, has been amended, repealed, revoked, rescinded,
or otherwise modified since the date of passaqe thereof, and all
such proceedinqs and authority relatinq to the issuance and sale of
the Certificates remain in full force and effect as of the date of
this certificate.
EXECUTED AND DELIVERED this ---------------------·
(Issuer's Seal)
' I ~ '
35533
OFFICIAL TITLE
B. C. McMinn
Mayor, City of Lubbock, Texas
Ranette Boyd
City Secretary, City of
Lubbock, Texas
subscribed above are hereby
AMERICAN STATE BANK
Lubbock, Texas
By:
-2-
...
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
AFFIDAVIT OF PUBLICATION
§
§
§
BEFORE ME, the undersigned authority, on this day
personally appeared t . .J. Auft 11 , who, after being
by me duly sworn, deposes and says that (s)he is the
Accoount Man§!!E>t' the Lubbock Avalanche-Journal, which is a
newspaper published and having general circulation in the City
of Lubbock, Texas, and that a true and correct copy of the
"NOTICE OF INTENTION TO ISSUE CITY OF LUBBOCK, TEXAS,
CERTIFICATES OF OBLIGATION" hereto attached, was published in
said paper on the following dates:
October 13, 1991; and
October 20, 1991
the date of the first publication of said notice being
fifteen (15) days prior to the date stated therein
passage of the ordinance authorizing the issuance
certificates of obligation.
= SWORN TO AND SUBSCRIBED BEFORE ME, this the
of October , 1991.
(Notary Seal)
6 6 7 Z E
at least
for the
of the
22nd day