HomeMy WebLinkAboutOrdinance - 9201-1988 - Issuance Of $17,000,000 Electric Light And Power System Revenue Bonds - 04/28/1988..
ORDINANCE NO. 9201 _--.;;._ _ __._ __
First Reading
April 28, 1988
Second Reading
Apr i 1 29 , 1988
AN ORDINANCE authorizing the issuance of
$17,000,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1988"; prescribing the forms, terms, and
provisions of said bonds; pledging the net
revenues of the City's Elect ric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting prov1s1ons
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
including the approval and distribution of an
Official Statement pertaining thereto, and
providing an effective date.
WHEREAS, this City Council has heretofore caused
notice of its intention to issue bonds for the purpose of
improving and extending the electric light and power system of
this City to be published once a week for two consecutive
weeks, the date of the first publication being not less than 14
days prior to the date set for the passage of the ordinance
authorizing the issuance of the bonds; and
WHEREAS, such notice was published
Avalanche-Journal on the 27th day of March,
day of April, 1988; and
in the Lubbock
1988 and the 3rd
WHEREAS, no petition, signed by 10% of the qualified
voters of the City, has been presented to the City Secretary or
other officials of the City requesting that an election be held
on the question of whether such bonds should be issued; and,
therefore, this Council is authorized to authorize, issue and
deliver the bonds herein authorized; and
-, WHEREAS, the City Counci 1 has further determined .and
hereby finds that said bonds can and should be issued on a
parity with other outstanding revenue bonds of the City
(hereinafter called and defined as "Previously Issued Bonds")
payable from and . secured by a first lien on and pledge of the
net revenues of the City• s Electric Light and Power System
(hereinafter called the "System") and that the terms and
conditions for the issuance of "additional bonds" on a parity
with the Previously Issued Bonds can be met and satisfied, to
wit: (i) the Mayor and City Treasurer can certify that the
City is not now in default as to any covenant, condition or
obligation prescribed by the ordinances authorizing the
issuance of the outstanding Previously Issued Bonds, including
showings that all interest, sinking, and reserve funds have
been fully maintained in accordance with the provisions of said
ordinances; (ii) applicable laws of the State of Texas now in
force permit and authorize the issuance of the bonds and will
be fully complied with, (iii) the City can secure from an
independent Certified Public Accountant a written report
demonstrating that the net revenues of the System were, during
the last completed fiscal year, equal to at least 1-1/2 times
the average annual principal and interest requirements of all
the bonds which will be secured by a first lien on and pledge.
of the net revenues of the System and which will be outstanding
upon the issuance of the bonds herein authorized; and further
demonstrating that the net revenues of the System during the
last completed fiscal year were equal to at least 1-1/5 times
the maximum annual principal and interest requirements of all
such bonds as wi 11 be outstanding upon the issuance of the
bonds herein authorized, (iv) the bonds herein authorized will
mature on April 15 in each year, and (v) the "Reserve Portion"
of the Bond Fund shall be accumulated and supplemented as
necessary to maintain therein a sum equal to at least the
average annual principal and interest requirements of all bonds
secured by a first lien on and pledge of the net revenues of
the System which wi 11 be outstanding upon the issuance of the
bonds herein authorized; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: Authorization -Designation -Principal
Amount -Purpose. Revenue bonds of the City shall be and are
hereby authorized to be issued in the aggregate principal
amount of $17,000,000, to be designated and bear the title
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1988" (hereinafter referred to as the
"Bonds"), for the purpose of constructing improvements and
extensions to the electric light and power system of the City,
in conformity with the Constitution and laws of the State of
Texas, including Article 1111, et seq. and Article 2368a,
Revised Civil Statutes of Texas, 1925, as amended.
SECTION 2: Fully Registered Obligations
Authorized Denominations Stated Maturities Interest
Rates -Date. The Bonds are issuable in fully registered form
only; shall be dated May 15, 1988 (the "Bond Date") and shall
be in denominations of $5,000 or any integral multiple thereof
(within a Stated Maturity) and the Bonds shall become due and
payable on April 15 in each of the years and in principal
amounts (the "Stated Maturities") and bear interes't at per
annum rates in accordance with the following schedule:
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Year of Principal Interest
Stated Maturity Amount Rate
1989 $ 850,000 It' 10 %
1990 850,000 !0 10 %
1991 850,000 It' 10 %
1992 850,000 ;p 10 %
1993 850,000 /(') 10 %
1994 850,000 10 10 %
1995 850,000 J() 10 %
1996 850,000 //) 10 %
1997 850,000 'J5~ 7.50%
1998 850,000 '7 7 %
1999 850,000 ? 7 %
2000 850,000 1 7 %
2001 850,000 '7 ' %
2002 850,000 '1 7 %
2003 850,000 '7 ' %
2004 850,000 1 7 %
2005 850,000 '1 7 %
2006 850,000 '7 7 0 ...
2007 850,000 7 7 %
2008 850,000 7 7 %
SECTION 3: Payment of Bonds Paying Agent/
Registrar. The principal of, premium, if any, and the interest
on the Bonds shall be payable, without exchange or collection
charges to owner or holder thereof, 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.
The Bonds shall bear interest on the unpaid principal
amounts from the Bond Date at the per annum rates shown above
in Section 2 hereof (computed on the basis of a 360-day year of
twelve 30-day months); such interest to be payable on April 15
and October 15 of each year commencing October 15, 1988.
The selection and appointment of Texas Commerce Bank
National Association, Lubbock, Texas, to serve as Paying
Agent/Registrar for the Bonds is hereby approved and confirmed,
and the City agrees and covenants to cause 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 Bonds (the "Security Register .. ), all as
provided herein, in accordance with the terms and provisions of
a .. Paying Agent/Registrar Agreement" and such reasonable rules
and regulations as the Paying Agent/Registrar and. City may
prescribe. The City covenants to maintain and provide a Paying
Agent/Registrar at all times until the Bonds are paid and
discharged and any successor Paying Agent/Registrar shall be a
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bank, trust company, financial institution or other entity duly
qualified and legally authorized to serve as, and perform the
duties and services of, Paying Agent/Registrar. Upon any
change in the Paying Agent/Registrar for the Bonds, the City
agrees to promptly cause a written notice thereof to be sent to
each registered owner of the Bonds by United States Mail, first
class postage prepaid, which notice shall also give the address
of the new Paying Agent/Registrar.
Both principal of, premium, if any, and interest on
the Bonds, due and payable by reason of maturity, redemption,
or otherwise, shall be payable only to the registered owner or
holder of the Bonds (hereinafter referred to as the
"Bondholder" or "Bondholders") appearing on the Security
Register, and, to the extent permitted by law, neither the City
nor the Paying Agent/Registrar or any agent of either, shall be
affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall
be payable only upon presentation and surrender of the Bonds to
the Paying Agent/Registrar at its principal office. Interest
on the Bonds shall be paid to the Bondholder 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 shall be paid by the
Paying Agent/Registrar (i) 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 (ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by the Bondholder at the
Bondholder • s risk and expense. If the date for the payment of
the principal of or interest on the Bonds shall be a Saturday,
Sunday, a legal holiday, or a day on which 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 on which 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 non-payme.nt 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 b~ 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
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mail, first class postage prepaid, to the address of each
Bondholder appearing on the Security Register at the close of
business on the last business day next preceding the date of
mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption.
The Bonds having Stated Maturities on and after April 15, 1999,
shall be subject to redemption prior to maturity, at the option
of the City, on April 15, 1998 or any date thereafter, in whole
or in part in principal amounts of $5,000 or any integral
multiple thereof (and if within a Stated Maturity by lot by the
Paying Agent/Registrar), 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 date set for the redemption of
Bonds (unless a shorter notification period shall be
satisfactory to the Paying Agent/Registrar), the City
shall notify the Paying Agent/Registrar of its decision to
exercise the right to red,eem Bonds, the principa 1 amount
of each Stated Maturity to be redeemed, and the date set
for the redemption thereof. The decision of the City to
exercise the right to redeem Bonds shall be entered in the
minutes of the governing body of the City.
(c) Selection of Bonds for Redemption. If less than
all Outstanding Bonds of the same Stated Maturity are to
be redeemed on a redemption date, the Paying
Agent/Registrar shall select by lot the Bonds to be
redeemed, provided that if less than the entire principal
amount of a Bond is to be redeemed, the Paying
Agent/Registrar shall treat such Bond then subject to
redemption as representing the number of Bonds Outstanding
which is obtained by dividing the principal amount of such
Bond by $5,000.
(d) Notice of Redemption. Not less than thirty (30)
days prior to a redemption date for the Bonds, 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 Bondholder of a Bond to be
redeemed in whole or in part at the address of the
Bondholder 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 Bondholder.
All notices of redemption shall (i) specify the date
of redemption for the Bonds, (ii) identify the Bonds to be
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redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be
redeemed, (iii) the redemption price, (iv) state that the
Bonds, 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 Bonds, 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 Bondholder. If a Bond is subject by
its terms to prior redemption and has been called for
redemption and notice of redemption thereof has been duly given
or waived as herein provided, such Bond (or the principal
amount thereof to be redeemed) sha 11 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 Bonds {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: Execution -Registration. The Bonds
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 Bonds
may be manual or facsimile. Bonds bearing the manual or
facsimile signatures of individuals who are or were the proper
officers of the City on the Bond Date shall be deemed to be
duly executed on behalf of the City, notwithstanding that such
individuals or either of them shall cease to hold such offices
at the time of delivery of the Bonds to the initial
purchaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in the
Bond Procedures Act of 1981, as amended.
No Bond shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for .any
purpose, unless there appears on such Bond either a certificate
of registration substantially in the form provided in
Section BC, 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 BD, executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and
either such certificate upon any Bond shall be conclusive
evidence, and the only evidence, that such Bond has been duly
certified or registered and delivered.
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SECTION 6: Registration -Transfer -Exchange of
Bonds -Predecessor Bonds. A Security Register relating to the
registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the
principal office of the Paying Agent/Registrar, and the Paying
Agent/Registrar shall obtain, record, and maintain in the
Security Register the name and address of each registered owner
of the Bonds issue·d under and pursuant to the provisions of
this Ordinance. Any Bond may, in accordance with its terms and
the terms hereof, be transferred or exchanged for Bonds of
other authorized denominations upon the Security Register by
the Bondholder, in person or by his duly authorized agent, upon
surrender of such Bond to the Paying Agent/Registrar for
cancellation, accompanied by a written instrument of transfer
or request for exchange duly executed by the Bondholder or by
his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar.
Upon surrender for transfer of any Bond 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 Bonds
executed on behalf of, and furnished by, the City of authorized
denominations and having the same Stated Maturity and of a like
aggregate principal amount as the Bond or Bonds surrendered for
transfer.
At the option of the Bondholder, Bonds may be
exchanged for other Bonds of authorized denominations and
having the same Stated Maturity, bearing the same rate of
interest and of like aggregate principal amount as the Bonds
surrendered for exchange, upon surrender of the Bonds to be
exchanged at the principal office of the Paying Agent/
Registrar. Whenever any Bonds are so surrendered for exchange,
the Paying Agent/Registrar shall register and deliver new Bonds
executed on behalf of, and furnished by, the City to the
Bondholder requesting the exchange.
All Bonds issued upon any transfer or exchange of
Bonds shall be delivered at the principal office of the Paying
Agent/Registrar, or sent by United States mail, first class
postage prepaid, to the Bondholder at his request, risk, and
expense and, upon the delivery thereof, the same shall be valid
obligations of the City, evidencing the same obligation to pay,
and entitled to the same benefits under this Ordinance, as the
Bonds surrendered in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this
Section shall be made without expense or service charge to the
Bondholder, except as otherwise herein provided, and except
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that the Paying Agent/Registrar shall require payment by the
Bondholder requesting such transfer or exchange of any tax or
other governmental charges required to be paid with respect to
such transfer or exchange.
Bonds cancelled by reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Bonds," evidencing all or a portion, as the case
may be, of the same obligation to pay evidenced by the new Bond
or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term "Predecessor Bonds" shall
include any Bond registered and delivered pursuant to
Section 31 hereof in lieu of a mutilated, lost, destroyed, or
stolen Bond which shall be deemed to evidence the same
obligation as the mutilated, lost, destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall
be required to transfer or exchange any Bond called for
redemption, in whole or in part, within 30 days of the date
fixed for redemption of such Bond; provided, however, that such
limitation of transfer shall not be applicable to an exchange
by the Bondholder of an unredeemed balance of a Bond called for
redemption in part.
SECTION 7: Initial Bond(s). The Bonds herein
authorized shall be initially issued as a single fully
registered bond in the total principal amount of this series
with principal installments to become due and payable as
provided in Section 2 hereof and numbered T-1, or (ii) as
twenty (20) fully registered bonds, being one bond for each
year of maturity in the applicable principal amount and
denomination and to be numbered consecutively from T-1 and
upward (hereinafter called the "Initial Bond(s)") and, ~n
either case, the Initial Bond(s) shall be registered in the
name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds submitted to the Office of
the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of
Public Accounts of the State of Texas and delivered to the
initial purchaser(s). Any time after the delivery of the
Initial Bond(s), the Paying Agent/Registrar, pursuant to
written instructions from the purchaser(s), or the designee
thereof, shall cancel the Initial Bond(s) delivered hereunder
and exchange therefor definitive Bonds of authorized
denominations, Stated Maturities, principal amounts, and
bearing applicable interest rates for transfer and delivery to
the Bondholders named at the addresses identified therefor; all
pursuant to and in accordance with such written instruct ions
from the ·initial purchaser(s), or the designee thereof, and
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such other information and documentation as
Agent/Registrar may reasonably require.
the Paying
SECTION 8: Forms. A. Forms Generally. The
Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Certificate of
Registration, and the form of Assignment to be printed on each
of the Bonds, 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 any reproduction
of an opinion of counsel) thereon as may, consistently
herewith, be established by the City or determined by the
officers executing such Bonds as evidenced by their execution
thereof. Any portion of the text of any Bonds may be set forth
on the reverse thereof, with an appropriate reference thereto
on the face of the Bond.
The definitive Bonds shall be printed, lithographed,
or engraved or produced in any other similar manner, all as
determined by the officers executing such Bonds as evidenced by
their execution thereof, but the Initial Bond(s) submitted to
the Attorney General of Texas may be typewritten or photocopied
or otherwise reproduced.
B. Form of Definitive Bond.
REGISTERED
NO.
United States of America
State of Texas
City of Lubbock, Texas
Electric Light and Power System Revenue Bond
Series 1988
Bond Date: Interest Rate: Stated Maturity:
May 15,1988
Registered Owner:
Principal Amount:
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REGISTERED $ ___ _
CUSIP NO.
DOLLARS
The City of Lubbock, Texas, (hereinafter referred to
as the "City"), a body corporate and municipal corporation in
the County of Lubbock, State of Texas, for value received,
hereby promises to pay to order of the Registered Owner named
above, or the registered assigns thereof, solely from the
revenues hereinafter defined, on the Stated Maturity date
specified above, the Principal Amount stated above (or so much
thereof as shall not have been paid upon prior redemption) and
to pay interest on the unpaid Principal Amount hereof from the
Bond Date at the per annum rate of interest specified above
computed on the basis of a 360-day year of twelve 30-day
months; such interest being payable on April 15 and October 15
of each year commencing October 15, 1988. Principal of this
Bond shall be payable 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 shall be payable
to the. registered owner of this Bond (or one or more
Predecessor Bonds, as defined in the Ordinance hereinafter
referenced) whose name appears on the "Security Register"
maintained by the Paying Ag~nt/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. All
payments of principal of, premium, if any, and interest on this
Bond 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 made by the
Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by 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.
THIS BOND is one of the series specified in its title
issued in the aggregate principal amount of $17,000,000 (herein
referred to as the "Bonds") for the purpose of constructing
improvements and extensions to the electric light and power
system of the City, under and in strict conformity with the
Constitution and laws of the State of Texas, including Articles
1111 et seq., and Article 2368a, Revised Civil Statutes of
Texas, 1925, as amended.
THE BONDS maturing on and after April 15, 1999, may
be redeemed prior to their Stated Maturities, at the option of
the City, on April 15, 1998, or any date thereafter, in whole
or in part in principal amounts of $5,000 or any· integral
multiple thereof (and if within a Stated Maturity by lot by the
Paying Agent/Registrar) at the redemption price of par,
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together with accrued interest to the date of redemption, and
upon 30 days prior written notice being given by United States
Mail, first class postage prepaid, to registered owners of the
Bonds to be redeemed, and subject to the terms and provisions
relating thereto contained in the Ordinance. If this Bond (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 Bond (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 Bond, payment of the redemption price of such
principal amount shall be made to the registered owner only
upon presentation and surrender of this Bond to the Paying
Agent/Registrar at its principal office and, there shall be
issued, without chdrge therefor, to the registered owner
hereof, a new Bond or Bonds of like maturity and interest rate
in any authorized denominations provided in the Ordinance for
the then unredeemed balance of the principal sum hereof. If
this Bond is called for redemption, in whole or in part, the
City or the Paying Agent/Registrar shall not be required to
transfer this Bond to an assignee of the Bondholder within 30
days of the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the Bondholder of the unredeemed balance hereof in
the event of its redemption in part.
THE BONDS are special obligations of the City and,
together with the outstanding and unpaid Previously Issued
Bonds (as defined in the Ordinance authorizing the issuance of
the Bonds), are payable solely from and secured by a first lien
on and pledge of the Net Revenues (as defined in the Ordinance)
of the Ci ty• s Electric Light and Power System (the "System").
The Bonds do not constitute a legal or equitable pledge,
charge, lien or encumbrance upon any property of the City or
the System, except with respect to the Net Revenues. The
holder hereof shall never have the right to demand payment of
this obligation out of any funds raised or to be raised by
taxation.
Subject to satisfying the terms and conditions
prescribed therefor, the City has reserved the right' to issue
additional revenue obligations payable from and equally and
ratably secured by a parity lien on and pledge of the Net
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Revenues of the System, in the same manner and to the same
extent as the Bonds.
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 of the provisions of which the
Bondholder by his acceptance hereof hereby assents, for
definitions of terms; the description of and the nature and
extent of the security for the Bonds; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on the Bonds; the
nature and extent and manner of enforcement of the lien and
pledge securing the payment of the Bonds; the terms and
conditions for the issuance of additional revenue obligations;
the terms and conditions relating to the transfer or exchange
of this Bond; the conditions upon which the Ordinance may be
amended or supplemented with or without the consent of the
Bondholders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which the liens 1 pledges I charges and covenants made therein
may be discharged at or prior to the maturity or redemption of
this Bond, and this Bond deemed to be no longer Outstanding
thereunder; and for the other terms and provisions thereof.
Capitalized terms used herein have the same meanings assigned
in the Ordinance.
This Bond, subject to certain 1 imitations 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 new fully registered Bonds of the same
Stated Maturity, of authorized denominations, bearing the same
rate of interest, 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 Bond 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 non-payment of
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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 Bondholder
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 and represented and
covenanted that the City is a duly organized and legally
existing municipal corporation under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the Bonds 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 Bonds 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 Bonds 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 Bonds by a pledge of the Net Revenues of the
System as aforestated. In case any provision in this Bond 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
Bond 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 Bond to be duly executed under the official seal of
the City as of the Bond Date.
CITY OF LUBBOCK, TEXAS
Mayor
COUNTERSIGNED:
City Secretary
{City Seal)
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c. *Form of Registration Certificate of Comptroller
of Public Accounts to Appear on Initial Bond only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
REGISTER NO.
THE STATE OF TEXAS
()
()
()
()
I HEREBY CERTIFY that this Bond 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.
(SEAL)
D.
WITNESS my signature and seal of office this
Comptroller of Public Accounts
of the State of Texas
Form of Certificate of Paying Agent/Registrar to
Appear on Definitive Bonds only.
This Bond has been duly issued and tegistered in the
name of the Registered Owner shown above under the provisions
of the within-mentioned Ordinance; the bond or bonds 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.
Registered this date:
Texas Commerce Bank
National Association
Lubbock, Texas
as Paying Agent/Registrar
By
Authorized Officer
* NOTE TO PRINTER: Do not print on Definitive Bonds. ,
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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 Bond and all rights thereunder,
and hereby irrevocably constitutes-and appoints ...•.•........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED:
Signature guarantee:
NOTICE: The signature on this
assignment must correspond with
the name of the registered owner
as it appears on the face of the
within Bond in every particular.
F. The Initial Bond(s) shall be in the form set forth in
paragraph B of this Section, except that the form of a single
fully registered Initial Bond shall be modified as follows:
(i) immediately under the name of the bond the
headings "Interest Rate " and
"Stated Maturity ~-------------" shall both
be completed "As Shown Below .. ;
(ii) Paragraph one shall read as follows:
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, hereby
promises to pay to the order of the Registered Owner named
above, or the registered assigns thereof, solely from the
revenues hereinafter identified, on the 15th day of April in
each of the years and in principal amounts and bearing interest
at per annum rates in accordance with the following schedule:
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PRINCIPAL
INSTALLMENTS
INTEREST
~·
(Information to be inserted from schedule
in Section 2 hereof).
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(or so much thereof as shall not have been prepaid prior to
maturity) and to pay interest on the unpaid principal amounts
hereof from the Bond Date at the per annum rates of interest
specified above computed on the basis of a 360-day year of
twelve 30-day months; such interest being payable on April 15
and October 15 of each year, commencing October 15, 1988.
Principal of this Bond shall be payable to the registered owner
hereof, upon presentation and surrender, at the principal
office of TEXAS COMMERCE BANK National Association, Lubbock,
Texas (the "Paying Agent/Registrar"). Interest shall be
payable to the registered owner of this Bond 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. All payments of principal of, premium,
if any, and interest on this Bond 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 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.
SECTION 9: Definitions. That for all purposes of
this ordinance and in particular for clarity with respect to
the issuance of the Bonds herein authorized and the pledge and
appropriation of revenues therefor, the following definitions
are provided:
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(a) The term "Additional Bonds'' shall mean the
additional parity obligations the City reserves the right
to issue in accordance with the terms and conditions
prescribed in Section 20 hereof.
(b) The term "Bonds" shall mean the $17,000,000
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1988," dated May 15, 1988,
authorized by this ordinance.
(c) The term "Bonds Similarly Secured" means the
Previously Issued Bonds, the Bonds and Additional Bonds.
(d) The term "Fiscal Year" shall mean
month accounting period used by the City in
with the operations of the System which may be
(12) consecutive month period established by the
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the twelve
connection
any twelve
~ity.
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(e) The term "Net Revenues" shall mean the gross
revenues of the System less expenses of operation and
maintenance. Such expenses of operation and maintenance
shall not include depreciation charges or funds pledged
for the Bonds Similarly Secured, but shall include all
salaries, labor, materials, repairs, and extensions
necessary to render services; provided, however, that in
determining "Net Revenues", only such repairs and
extensions as in the judgment of the City Council,
reasonably and fairly exercised, are necessary to keep the
System in operation and render adequate service to the
City and inhabitants thereof, or such as might be
necessary to meet some physical accident or condition
which otherwise would impair the security of the Bonds
Similarly Secured, shall be deducted.
(f) The term "Previously Issued Bonds'' shall mean
the outstanding and unpaid revenue bonds, designated "CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS" and payable from and secured by a first lien on and
pledge of the Net Revenues of the System, further
identified by issue or series as follows:
(1) Series 1973, dated July 15, 1973, in the
original principal amount of $6,000,000;
(2) Series 1975, dated March 15, 1975, in the
original principal amount of $6,400,000;
(3) Series 1975-A, dated September 15, 1975, in
the original principal amount of $2,000,000;
(4) Series 1976, dated April 15, 1976, 'in the
original principal amount of $4,400,000;
(5) Series 1983, dated May 15, 1983, in the
original principal amount of $10,770,000;
( 6) Series 1984, dated April 15,
original principal amount of
and
1984, in the
$10,000,000;
(7) Series 1987, dated April 15, 1987, in the
original principal amount of $7,000,000.
(g) The term "System" shall mean all properties,
real, personal, mixed or otherwise, now owned or hereafter
acquired by the City of Lubbock through , purchase,
construction or otherwise, and used in connection with the
City• s Electric Light and Power System and in anywise
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pertaining thereto, whether situated within or without the
limits of the City.
SECTION 10: Pledge. That the City hereby
covenants and agrees that all of the Net Revenues derived from
the operation of the System, with the exception of those in
excess of the amounts required to establish and maintain the
special Funds created for the payment and security of the Bonds
Similarly Secured, are hereby irrevocably pledged for the
payment of the Previously Issued Bonds, the Bonds and
Additional Bonds, if issued, and the interest thereon, and it
is hereby ordained that the Previously Issued Bonds, the Bonds
and Additional Bonds, if issued, and the interest thereon,
shall constitute a first lien on the Net Revenues of the System.
SECTION 11: Rates and Charges. That the City
hereby covenants and agrees with the owners of the Bonds that
rates and charges for electric power and energy afforded by the
System will be established and maintained to provide revenues
sufficient at all times to pay:
(a) all necessary and reasonable
operating and maintaining the System as set
in the definition "Net Revenues" and
depreciation;
expenses of
forth herein
to recover
(b) the amounts required to be deposited to the Bond
Fund to pay the principal of and interest on the Bonds
Similarly Secured as the same becomes due and payable and
to accumulate and maintain the reserve amount required to
be deposited therein; and
(c) any other legally incurred . indebtedness payable
from the revenues of the System and/or secured by a lien
on the System or the revenues thereof.
SECTION 12: Segregation of Revenues/Fund
Designations. All receipts, revenues and income derived from
the operation and ownership of the System shall be kept
separate from other funds of the City and deposited within
twenty-four (24) hours after collection in the "Electric Light
and Power System Fund" (created and established in connection
with the issuance of the Previously Issued Bonds), which Fund
(hereinafter referred to as the "System Fund") is hereby
reaffirmed and shall continue to be kept and maintained at an
official depository bank of the City while the Bonds remain
outstanding. Furthermore, the "Special Electric Light and
Power System Revenue Bond Retirement and Reser·ve Fund"
(hereinafter referred to as the "Bond Fund"), created and
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established in connection with the issuance of the Previously
Issued Bonds, is hereby reaffirmed and shall continue to be
maintained by the City while the Bonds remain outstanding. The
Bond Fund is and shall continue to be kept and maintained at
the City's official depository bank., and moneys deposited in
the Bond Fund shall be used for no purpose other than for the
payment, redemption and retirement of Bonds Similarly Secured.
SECTION 13: System Fund. The City hereby
reaffirms its covenant to the holders of the Previously Issued
Bonds and agrees with the owners of the Bonds that the moneys
deposited in the System Fund shall be used first for the
payment of the reasonable and proper expenses of operating and
maintaining the System, as identified in Section 9 (e) hereof.
All moneys deposited in the System Fund in excess of the
amounts required to pay operating and maintenance expenses of
the System, as hereinabove provided, shall be applied and
appropriated, to the extent required and in the order of
priority prescribed, as follows:
(i) To the payment of the amounts required to
be deposited in the Bond Fund for the payment of
principal of and interest on the Bonds Similarly
Secured as the same become due and payable; and
(ii) To the payment of the amounts, if any,
required to be deposited in the Bond Fund to
accumulate and maintain the reserve amount as
security for the payment of the principal of and
interest on the Bonds Similarly Secured.
SECTION 14: Bond Fund. (a) That, in addition to
the required monthly deposits to the Bond Fund for the payment
of principa 1 of and interest on the Previously Issued. Bonds,
the City hereby agrees and covenants to deposit to the Bond
Fund an amount equal to one hundred percentum ( 100%) of the
amount required to fully pay the interest on and principal of
the Bonds falling due on or before each maturity and interest
payment date, such payments to be made in substantially equal
monthly installments on or before the 1st day of each month
beginning on or before the 1st day of the month next following
the month the Bonds are delivered·to the initial purchaser.
The required monthly deposits to the Bond Fund for
the payment of principal of and interest on the Bonds shall
continue to be made as hereinabove provided until such time as
(i) the total amount of deposit in the Bond Fund, including the
"Reserve Portion" deposited therein, is equal to bhe amount
required to fully pay and discharge all outstanding Bonds
Similarly Secured (principal and interest) or (ii) the Bonds
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2 9 4 6 0
are no longer outstanding, i.e.,
as to principal and interest
refunded.
the Bonds have been fully paid
or all the Bonds have been
Accrued interest and premium, if any, received from
the purchasers of the Bonds sha 11 be deposited in the Bond
Fund, and shall be taken into consideration and reduce the
amount of the monthly deposits hereinabove required which would
otherwise be required to be deposited in the Bond Fund from the
Net Revenues of the System.
(b) In addition to the· amounts to be deposited in
the Bond Fund to pay current principa 1 and interest for
the Bonds Similarly Secured, the City reaffirms its
covenant to the holders of the Previously Issued Bonds and
agrees to accumulate and maintain in said Fund a reserve
amount (the "Reserve.Portion") equal to not less than the
average annual principal and interest requirements of all
outstanding Bonds Similarly Secured (calculated and
redetermined at the time of issuance of each series of
Bonds Similarly Secured).
In accordance with the ordinances authorizing the
issuance of the Previously Issued Bonds, there is
currently on deposit to the credit of the Reserve Portion
of the Bond Fund the sum of $ ~" ?r~-;.. :s JH • "'t:'f • An
additional amount shall be deposited to the credit of the
Reserve Portion from unencumbered available funds in order
that the total amount is not less than the average annual
principal and interest requirements of the outstanding
Bonds Similarly Secured after giving effect to the
issuance of the Bonds (the "Required Reserve Fund Amount"}.
The Reserve Portion of the Bond Fund shall be made
available for and reasonably employed in meeting the
requirements of the Bond Fund if need be, and if any
amount thereof is so employed, the Reserve Portion in the
Bond Fund shall be fully restored to the Required Reserve
Fund Amount as rapidly as possible from the first
available Net Revenues of the System in the System Fund
subject only to the priority of payments hereinabove
prescribed in Section 13. Any amounts in excess of the
Required Reserve Fund Amount shall be transferred to the
System Fund.
SECTION 15: Payment of Bonds. While any of the Bonds
are outstanding, the proper officers of the City are hereby
authorized to transfer or cause to be transferred to the Paying
Agents therefor, from funds on deposit in the Bond Fund,
including the Reserve Portion, if necessary, amounts sufficient
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l 9 4 6 D
to fully pay and discharge promptly as .each installment of
interest and principal of the Bonds accrues or matures or comes
due by reason of redemption prior to maturity; such transfer of
funds to be made in such manner as will cause immediately
available funds to be deposited with the Paying Agents for the
Bonds at the close of the business day next preceding the date
of payment for the Bonds.· The Paying Agents shall cancel and
destroy all paid Bonds, and furnish the City with an
appropriate certificate of cancellation or destruction.
SECTION 16: Deficiencies in Funds. That, if in
any month the City shall, for any reason, fail to pay into the
Bond Fund the full amounts above stipulated, amounts equivalent
to such deficiencies shall be set apart and paid into said Fund
from the first available and unallocated Net Revenues of the
System in the following month or months and such payments shall
be in addition to the amounts hereinabove provided to be
otherwise paid into said Fund during such month or months.
SECTION 17: Excess Revenues. Any surplus Net
Revenues of the System remaining after all payments have been
made into the Bond Fund and after all deficiencies in making
deposits to said Fund have been remedied, may be used for any
other City purposes now or hereafter permitted by law,
including the use thereof for the retirement in advance of
maturity of the Bonds Similarly Secured by the purchase of any
of such Bonds Similarly Secured on the open market at not
exceeding the market value thereof. Nothing herein, however,
shall be construed as impairing the right of the City to pay,
in accordance with the prov1s1ons thereof, any junior lien
bonds legally issued and payable out of the Net Revenues of the
System.
SECTION 18: Security of Funds. That moneys on
deposit in the System Fund (except any amounts as may be
properly invested} shall be secured in the manner and to the
fullest extent required by the laws of the State of Texas for
the security of public funds. Moneys on deposit in the Bond
Fund shall be continuously secured by a valid pledge of direct
obligations of, or obligations unconditionally guaranteed by
the United States of America, having a par value, or market
value when less than par, exclusive of accrued interest, at all
times at least equal to the amount of money to be deposited in
said Fund. All sums deposited in said Bond Fund shall be held
as a trust fund for the benefit of the holders of the Bonds
Similarly Secured, the beneficial interest in which shall be
regarded as existing in such holders. To the extent that money
in the Reserve Portion of the Bond Fund is invested ·under the
provisions of Section 19 hereof, such security is not required.
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SECTION 19: Investment of Reserve Port ion of Bond
Fund. The custodian bank shall, when authorized by the City
Council, invest the Reserve Portion of the Bond Fund in direct
obligations of, or obligations guaranteed by the United states
of America, or invested in direct obligations of the Federal
Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Federal Home Loan Banks or Banks for
Cooperatives, and which such investment obligations must mature
or be subject to redemption at the option of the holder, within
not to exceed ten years from the date of making the
investment. Such obligations shall be held by the depository
impressed with the same trust for the benefit of the
bondholders as the Bond Fund itself, and if at any time
uninvested funds shall be insufficient to permit payment of
principal and interest maturities for the Bonds Similarly
Secured, the said custodian bank shall sell on the open market
such amount of the securities as is required to pay said Bonds
Similarly Secured and interest when due and shall give notice
thereof to the City. All moneys resulting from maturity of
principal and interest of the securities shall be reinvested or
accumulated in the Reserve Portion of the Bond Fund and
considered a part thereof and used for and only for the
purposes hereinabove provided with respect to said Reserve
Portion, provided that when the full amount required to be
accumulated in the Reserve Portion of the Bond Fund (being the
amounts required to be accumulated by the ordinances
authorizing the Bonds Similarly Secured) is accumulated, any
interest increment may be used in the Bond Fund to reduce the
payments that would otherwise be required to pay the current
debt service requirements on Bonds Similarly Secured. ·
SECTION 20: Issuance of Additional Parity Bonds.
That, in addition to the right to issue bonds of inferior lien
as authorized by the laws of the State of Texas, the City
hereby reserves the right to issue Additional Bonds which, when
duly authorized and issued in compliance with the terms and
conditions hereinafter appearing, shall be on a parity with the
Previously Issued Bonds and the Bonds herein authorized,
payable from and equally and ratably secured by a first lien on
and pledge of the Net Revenues of the System. The Additional
Bonds may be issued in one or more installments, provided,
however, that none shall be issued unless and until the
following conditions have been met:
(a) That the Mayor and City Treasurer have certified
that the City is not then in default as to any covenant,
condition or obligation prescribed by any ordinance
authorizing the issuance of Bonds Similarly Secured then
outstanding, including showings that all interest, sinking
and reserve funds then provided for have been fully
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maintained in accordance with the provisions of said
ordinances;
(b) That the applicable laws of the State of Texas
in force at the time provide permission and authority for
the issuance of such bonds and have been fully complied
with;
(c) That the City has secured from an independent
Certified Public Accountant his written report
demonstrating that the Net Revenues of the System were,
during the last completed Fiscal Year, or during any
consecutive twelve (12) months period of the last fifteen
(15) consecutive months prior to the month of adoption of
the ordinance authorizing the Additional Bonds, equal to
at least one and one-half (1-1/2) times the average annual
principal and interest requirements of all the bonds which
will be secured by a first lien on and pledge of the Net
Revenues of the System and which will be outstanding upon
the issuance of the Addi tiona 1 Bonds; and further
demonstrating that for the same period as is employed in
arriving at the aforementioned test said Net Revenues were
equal to at least one and one-fifth (1-1/5) times the
maximum annual principal and interest requirements of all
such bonds as will be outstanding upon the issuance of the
Additional Bonds;
(Q) That the Additional Bonds are made to mature on
April 15 or October 15, or both, in each of the years in
which they are provided to mature;
(e) The Reserve Portion of the Bond Fund shall be
accumulated and supplemented as necessary to maintain a
sum which shall be not less than the average annual
principal and interest requirements of all bonds secured
by a first lien on and pledge of the Net Revenues of the
System which will be outstanding upon the issuance of any
series of Addi tiona! Bonds. Accordingly, each ordinance
authorizing the issuance of any series of Additional Bonds
shall provide for any required increase in the Reserve
Portion, and if supplementation is necessary to meet all
conditions of said Reserve Portion, said ordinances shall
make provision that same be supplemented by the required
amounts in equal monthly installments over a period of not
to exceed sixty ( 60) calendar months from the dating of
such Additional Bonds.
When thus issued, such Additional Bonds may be secured by
a pledge of the Net Revenues of the System on a parity in all
things with the pledge securing the issuance of the Bonds and
the Previously Issued Bonds.
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SECTION 21: Maintenance and Operation -Insurance.
That the City hereby covenants and agrees to maintain the
System in good condition and operate the same in an efficient
manner and at reasonable cost. The City further agrees to
maintain insurance for the benefit of the registered owners of
the Bonds of the kinds and in· the amounts which are usually
carried by private companies operating similar properties, and
that during such time all policies of insurance shall be
maintained in force and kept current as to premium payments.
All moneys received from losses under such insurance policies
other than public liability policies are hereby pledged as
security for the Bonds Similarly Secured until and unless the
proceeds thereof are paid out in making good the loss or damage
in respect of which such proceeds are received, either by
replacing the property destroyed or repairing the property
damaged, and adequate provisions are made within ninety (90)
days after the date of the loss for making good such loss or
damage. The premiums for all insurance policies required under
the provisions of this Section shall be considered as
maintenance and operation expenses of the System.
SECTION 22: Records Accounts Accounting
Reports. That the City hereby covenants and agrees so long as
any of the Bonds or any interest thereon remain outstanding and
unpaid, it wi 11 keep and maintain a proper and complete system
of records and accounts pertaining to the operation of the
System separate and apart from all other records and accounts
of the City in accordance with generally accepted accounting
principles prescribed for municipal corporations, and complete
and correct entries shall be made of all transactions relating
to said System, as provided by applicable law. The registered
owner of any Bonds, or any duly authorized agent or agents of
such owner, shall have the right at all reasonable times to
inspect all such records, accounts and data relating thereto
and to inspect the System and all properties comprising same.
The City further agrees that as soon as possible 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. Each such audit, in addition to whatever
other matters may be thought proper by the Accountant, shall
particularly include the following:
l '! 4 {, 0
(a) A detailed statement of the income and
expenditures of the System for such Fiscal Year;
(b) A balance sheet as of the end of such Fiscal
Year;
(c)
in which
The Accountant's comments regarding the manner
the City has compiled with the covenants and
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requirements of this ordinance and his recommendations for
any changes or improvements in the operation, records and
accounts of the System;
(d) A list of the insurance policies in force at the
end of the Fiscal Year on the System properties, setting
out as to each policy the amount thereof; the risk
covered, the name of the insurer, and the policy•s
expiration date;
{e) A list of the securities which have been on
deposit as security for tne money in the Bond Fund
throughout the Fiscal Year and a list of the securities,
if any, in which the Reserve Portion of the Bond Fund has
been invested.
{f) The total · number of metered and unmetered
customers, if any, connected with the System at the end of
the Fiscal Year.
Expenses incurred in making the audits above referred
to are to be regarded as maintenance and operating expenses of
the System and paid. as such. Copies of the aforesaid annual
audit shall be immediately furnished to the Executive Director
of the Municipal Advisory Council of Texas at his office in
Austin, Texas, and, upon written request, to the original
purchasers and any subsequent registered owner of the Bonds.
SECTION 23: Remedies in Event of Default. That,
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
payments to be made to the Bond Fund as required by this
ordinance or {b) defaults in the observance or performance of
any other of the covenants, conditions or obligations set forth
in this ordinance, the registered owner of any of the Bonds
shall be entitled to a writ of mandamus issued by a court of
proper jurisdiction compelling and requiring the City Council
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
acquiescence therein, and every such right or 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
specifications of such remedies shall not be deemed to be
exclusive.
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SECTION 24: Special Covenants. The City hereby
further covenants as follows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of Bonds and has
lawfully exercised said power under the Constitution
and laws of the State of Texas, including Article
1111 et seq., and Article 2368a, Revised Civil
Statutes of Texas, 1925, as amended; that the
Previously Issued Bonds, the Bonds and the Additional
Bonds, when issued, shall be ratably secured under
said pledge of income in such manner that one bond
shall have no preference over any other bond of said
issues.
(b) That, other than for the payment of the
Previously Issued Bonds and the Bonds, the Net
Revenues of the System have not been pledged to the
payment of any debt or obligation of the City or of
the System.
(c) That, so long as any of the Bonds or any
interest thereon remain outstanding, the City will
not sell, leas~ or encumber the System or any
substantial part thereof; provided, however, this
covenant shall not be construed to prohibit the sale
of such machinery, or other properties or equipment
which has become obsolete or otherwise unsuited to
the efficient operation of the System when other
property of equal value has been substituted
therefore, and, also, with the exception of the
Additional Bonds expressly permitted by this
ordinance to be issued, it will not encumber the Net
Revenues of the System unless such encumbrance is
made junior and subordinate to all of the provisions
of this ordinance.
(d) The City will cause to be rendered monthly
to each customer receiving electric services a
statement therefor and wi 11 not accept payment of
less than all of any statement so rendered, using its
power under existing ordinances and under all such
ordinances to become effective in the future to
enforce payment, to withhold service from such
delinquent customers and to enforce and authorize
reconnection charges.
(e) That the City will faithfully and
punctually perform all duties with respect to the
System required by the Constitution and laws of the
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State of Texas, including the making and collecting
of reasonable and sufficient rates for services
supplied by the System, and the segregation and
application of the revenues of the System as required
by the provisions of this ordinance.
{f) No free service sha 11 be provided by the
System and to the extent the City or its departments
or agencies utilize the services provided by the
System, payment shall be made therefor at rates
charged to others for similar service.
SECTION 25: Special Obligations. The Bonds are
special obligations of the City payable from the pledged Net
Revenues of the System and the registered owners thereof shall
never have the right to demand payment thereof out of funds
raised or to be raised by taxation.
SECTION 26: Bonds are Negotiable Instruments.
Each of the Bonds herein authorized shall be deemed and
construed to be a "Security" 1 and as such a negotiable
instrument, within the meaning of Article 8 of the Uniform
Commercial Code.
In addition, the Mayor I ,pi rector of Finance, City
Secretary and other City officials are authorized to execute
such instruments and certifications as may be required to
accomplish the issuance and delivery of the Bonds.
SECTION 27: Ordinance to Constitute Contract. The
provisions of the Ordinance shall constitute a contract between
the City and the registered owner or owners from time to time
of the Bonds and no change, variation or alteration of any kind
of the provisions of the Ordinance may be made, except as
permitted in this Section. The City may, without the consent
of or notice to any registered owner or owners, from time to
time and at any time, amend this Ordinance in any manner not
detrimental to the interests of the registered owner or owners
holding a majority in aggregate principal amount of the Bonds
then Outstanding affected thereby, amend, add to, or rescind
any of the provisions of this Ordinance; provided that, without
the consent of all registered owners of Outstanding Bonds, 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 Bonds, reduce the principal amount thereof,
the redemption price therefor, 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 Bonds, {2)
give any preference to any Bond over any other Bond, or ( 3)
reduce the aggregate principal amount of Bonds required for
consent to any such amendment, addition or rescission.
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The terms "Outstanding" and "outstanding" when used
in this Ordinance with respect to Bonds means, as of the date
of determination, all Bonds theretofore issued and delivered
under this Ordinance, except:
(1) those Bonds theretofore cancelled
Paying Agent/Registrar or delivered to the
Agent/Registrar for cancellation;
by the
Paying
(2) those Bonds for which payment has been duly
provided by the City of the irrevocable deposit with
the Paying Agent/Registrar of money 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 Bonds 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;
(3) those Bonds that have been mutilated,
destroyed, lost or stolen and replacement Bonds have
been registered and delivered in lieu thereof as
provided in Section 31 hereof; and
( 4) those Bonds for which the payment of the
principal of, premium, if any, and interest on which
has been duly provided for by the City in accordance
with law.
SECTION 28: Covenants to Maintain Tax-Exempt
Status. 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 Bond 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 exemption from
federal income tax of the interest on any Bond pursuant to
Section 103 of the Code, the City agrees, covenants and
represents that:
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(a) Definitions. When used in this Section, the
following terms have the following meanings:
"Code" means the Internal Revenue Code
of 1986, as amended by all legislation, if
any, enacted on or before the Issue Date.
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2941'.0
"Gross Proceeds" when used with respect
to the Bonds or any other issue of
obligations of the City, means original
proceeds, amounts received (including
repayments of principal) as a result of
investing the original proceeds of the
issue, transferred proceeds, sinking fund
proceeds, amounts invested in a reasonably
required reserve or replacement fund,
securities or obligations pledged by the
City as security for payment of debt service
on the Bonds or such other issue, and any
other amounts used to pay debt service on
the Bonds or such other issue, together with
earnings from the investment of the
foregoing.
"Investment" means
(1) a share of stock in a
corporation or a right to subscribe for
or to receive such a share,
(2) any obligation, including
United States Treasury bonds, notes,
and bills and bank deposits, whethex:. o.r.
not certified or interest bearrng, but
excluding obligations the interest on
which is, in the opinion of counsel
nationally recognized in the field of
municipal bond law, excludable from the
gross income of any owner thereof and
is not included in computing the
alternative minimum taxable income of
individuals under the Code or the
Internal Revenue Code of 1954, as
amended to the date of issuance of such
obligations,
(3)
other
acquired
City, or
any annuity contract, or any
deferred payment contract
to fund an obligation of the
( 4) any other property held for
investment.
"Issue Date" means the date on which
the Bonds are first authenticated and
delivered to the initial Holders.
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l 'J 4 6 D
"Issue Price" of the Bonds of each
Stated Maturity means the aggregate initial
offering price of all the Bonds of such
Stated Maturity to the public (exclusive of
underwriters, dealers, bondhouses, brokers,
and similar persons or organizations acting
in the capacity of underwriters or
wholesalers) at which a substantial number
of Bonds of such Stated Maturity are sold to
the public, including accrued interest to
the Issue Date, if any.
"Nonpurpose Investment" means any
Investment in which Gross Proceeds of the
Bonds are invested and which is not acquired
to carry out the governmental purpose of the
Bonds. ·
"Purchase Price'' of any Investment means
(l) if a Uhited States Treasury
obligation acquired directly from the
United .States Treasury, the amount paid
therefor,
(2) if a certificate of deposit
issued by a commercial bank, the bona
fide bid price quoted by a dealer who
maintains an active secondary market in
such certificates of deposit, and
(3) otherwise, generally the mean
of the bid price and the offered price
therefor on an established market on
the day on which such Investment is
purchased or contracted for or, if
there are no bid prices and offered
prices on such date, on the first day
preceding such date for which there are
bid prices and offered prices.
"Yield" of
(1) any Investment means the
discount factor which, when used in
computing the present value of all
scheduled payments of principal of and.
interest on such Investment on the date
such Investment is purchased with Gross
Proceeds or otherwise allocated to
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Gross Proceeds, results
equal to the Purchase
(but excluding any
compounding semiannually,
in . an amount
Price thereof
commissions),
and
( 2) the Bonds means the discount
factor which, when used in computing
the present value on the Issue Date of
all scheduled payments of principal of
and interest on the Bonds, results in
an amount equal to aggregate Issue
Prices of the Bonds of each Stated
Maturity, compounding semiannually.
(b) No Private Use or Private Payments. 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 Bonds,
(1) exclusively own, operate, and possess
the System and all properties constituting the
System and its components, and all property the
acquisition, canst ruction, or improvement of
which is to be financed directly or indirectly
with Gross Proceeds of the Bonds and not use or
permit the use of such Gross Proceeds or the
properties constituting the System 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 Bonds 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.
(c) 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 Bonds to make or finance
loans to any person or entity other than a state or
local government. For purposes of the foregoing
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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.
(d) 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 Bonds, directly or indirectly invest Gross
Proceeds of the Bonds in any Investment (or use such
Gross Proceeds to replace money so invested), if as a
result of such investment the Yield from the Issue
Date of all Investments acquired with such Gross
Proceeds (or with money replaced thereby) whether then
held or previously disposed of, exceeds the Yield of
the Bonds.
(e) 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
Bonds to be federally guaranteed within the meaning of
section 149(b) of the Code and the regulations and
rulings thereunder.
(f) 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 Bonds on such form and in such
place as such Secretary may prescribe.
(g) Rebate of Arbitrage Profits. 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 Bonds (including all receipts,
expenditures, and investments thereof) on. its
books of account separately and apart from all
other funds (and receipts, expenditures, and
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investments thereof) and shall retain all records
of such accounting for at least six years after
the day on which the last outstanding Bond is
discharged. The City may, however, to the extent
permitted by law, commingle Gross Proceeds of the
Bonds 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 annually, the
City shall calculate, in accordance with rules
set forth in section 148 (f) of the Code and the
regulations and rulings thereunder, the excess of:
(i) the amount earned on all
Nonpurpose Investments (other than
Investments attributable to any excess
previously calculated pursuant to this
paragraph (2)) acquired with Gross
Proceeds of the Bonds, over
(ii) the amount which would have been
earned if such Nonpurpose Investments
were invested at a rate equal to the
Yield on the Bonds,
plus any income attributable to any excess
previously calculated pursuant to this paragraph
(2). In this connection, the City hereby makes
the election provided for in section
148(f)(4)(A)(ii) of the Code.
(3) As additional consideration for the
purchase of the Bonds by the initial Holders
thereof and the loan of the money represented
thereby, and in order to induce such purchase by
measures designed to insure 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 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 the regulations and
rulings thereunder.
(4) The City shall
diligence to assure that no
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exercise reasonable
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 delinquent amounts owed to
it, interest thereon, and any assessed penalty.
(h) Not to Divert Arbitrage Profits. Except to
the extent permitted by sect ion 148 of the Code and
the regulations and rulings thereunder, the City shall
not, at any time prior to the earlier of the Stated
Maturity or final payment of the Bonds enter into any
transaction that reduces the amount required to be
paid to the United States pursuant to Subsection (g)
of this Section because such transaction results in a
smaller profit or a larger loss than would have
resulted if the transaction had been at arm's length
and had the Yield of the Bonds not been relevant to
either party.
SECTION 29: Final Deposits; Governmental Obliga-
tions. (a) All or any of the Bonds shall be deemed to be paid,
retired and no longer outstanding within the meaning of this
Ordinance when payment of the principal of, and redemption
premium, if any, on such Bonds, plus interest thereon to the
due date thereof (whether such due date be by reason of
maturity, upon redemption, or other otherwise) either (i) shall
have been made or caused to be made in accordance with the
terms thereof (including the giving of any required notice of
redemption), or (ii) shall have been provided by irrevocably
depositing with, or making available to, the Paying Agents
therefor, in trust and irrevocably set aside exclusively for
such payment, (1) money sufficient to make such payment or (2)
Government Obligations, certified by an independent public
accounting firm of national reputation, to mature as to
principal and interest in such amounts and at such times as
will insure the availability, without reinvestment, of
sufficient money to make such payment, and all necessary and
proper fees, compensation and expenses of the Paying Agents
pertaining to the Bonds with respect to which such deposit is
made shall have been paid or the payment thereof provided to
the satisfaction of the Paying Agents. At such time as a Bond
shall be deemed to be paid hereunder, as aforesaid, it shall no
longer be secured by or entitled to the benefit of this
Ordinance or a lien on and pledge of the Net Revenues of the
System, and shall be entitled to payment solely from such money
or Government Obligations.
The term "Government Obligations," as used in this
Section, shall mean direct obligations of the United States of
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l 9 4 r. 0
America, including obligations the principal of and interest on
which are unconditionally guaranteed by the United States of
America, which may be United States Treasury obligations such
as its State and Local Government Series, and which may be in
book-entry form.
(b) That any moneys so deposited with the Paying
Agents may at the direction of the City also be
invested in Government Obligations, maturing in the
amounts and times as hereinbefore set forth, and all
income from all Government Obligations in the hands of
the Paying Agents pursuant: to this Section which is
not required for the payment of the Bonds, the
redemption premium, if any, and interest thereon, with
respect to which such money has been so deposited,
shall be turned over to the City or deposited as
directed by the City.
(c) That the City covenants that no deposit will
be made or accepted under clause (a)(ii) of this
Section and no use ntade of any such deposit which
would cause the Bonds to be treated as arbitrage bonds
within the . meaning of section 148 of the Internal
Revenue Code of 1986, as amended.
(d) That notwithstanding any other prov1s1ons of
this Ordinance, all money or Government Obligations
set aside and held in trust pursuant to the provisions
of this Section for the payment of the Bonds, the
redemption premium, if any, and interest thereon,
shall be applied to and used for the payment thereof,
the redemption premium, if any, and interest thereon
and the income on such money or Government Obligations
shall not be considered to be income or revenues of
the System.
SECTION 30: Notices to Holders-Waiver. Wherever
this Ordinance provides for notice to Bondholders 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 Bondholder as it appears in the Security Register.
In any case where notice to Bondholders is given by
mail, neither the failure to mail such notice to any particular
Bondholders, nor any defect in any notice so mailed, shall
affect the sufficiency of such notice with respect to all other
Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Bondholder entitled
to receive such notice, either before or after the event with
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2 'l 4 6 D
respect to which such notice is given, and such waiver shall be
the equivalent of such notice. Waivers 'of notice by Bond-
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.
SECTION 31: Damaged, Mutilated, Lost, Stolen, or
Destroyed Bonds. (a) Replacement Bonds. In the event any
outstanding Bond is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be
printed, executed and delivered, a new bond of the same
principal amount, Stated Maturity, and interest rate, as the
damaged, mutilated, lost, stolen or destroyed Bond, in
replacement for such Bond in the manner hereinafter provided.
l 'I 4 h 0
(b) Application for Replacement Bonds.
Application for replacement of damaged, mutilated,
lost, stolen or destroyed Bonds shall be made to the
Paying Agent/Registrar. In every case of loss, theft,
or destruction of a Bond, the applicant for a
replacement bond shall furnish to the City and to the
Paying Agent/Registrar such security or indemnity as
may be required by them to save each of them harmless
from any loss or damage with respect thereto. Also,
in every case of loss, theft, or destruction of a
Bond, the a)plicant shall furnish to the City and to
the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of
such Bond, as the case may be. In every cause of
damage or mutilation of a Bond, the applicant shall
surrender to the Paying Agent/Registrar for
cancellation the Bond so damaged or mutilated.
(c) No Default Occurred. Notwithstanding the
foregoing provisions of this Section, in the event any
such Bond shall have matured, and no default has
occurred which is then continuing in the payment of
the principal of or interest on the Bond, the City .may
authorize the payment of the same (without surrender
thereof except in the case of a damaged or mutilated
Bond) instead of issuing replacement bond, provided
security or indemnity is furnished as above provided
in this Section.
(d) Charge for Issuing Replacement Bonds. Prior
to the issuance of any replacement bond, the Paying
Agent/ Registrar shall charge the registered owner of
such Bond with all legal, printing and other expenses
in connect ion therewith. Every replacement bond
issued pursuant to the provisions of this Section by
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virtue of the fact that any Bond is lost I stolen or
destroyed shall constitute a contractual obligation of
the City whether or not the lost, stolen, or destroyed
Bond shall be found at any time, or be enforceable by
anyone, and shall be entitled to all the benefits of
this Ordinance equally and proportionately with any
and all other Bonds duly issued under this Ordinance.
(e) Authority for Issuing Replacement Bonds.
In accordance with Sect ion 6 of Vernon • s Ann. Tex.
Civ. St. Article 717k-6, this Section of the Ordinance
shall constitute authority for the issuance of any
such replacement bond without necessity of further
action by the governing body of the City or any other
body or person, and the duty of the replacement of
such bonds is hereby authorized and imposed upon the
Paying Agent/Registrar, and the Paying Agent/Registrar
shall authenticate and deliver such bonds in the form
and manner and with the ef feet, as provided in the
Ordinance for Bonds issued in conversion and exchange
for other Bonds.
SECTION 32: Cancellation. All Bonds surrendered
for payment, redemption, transfer, exchange, or replacement, 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 Bonds previously
certified or registered and delivered which the City may have
acquired in any manner whatsoever, and all Bonds so delivered
shall be promptly cancelled by the Paying Agent/Registrar. All
cancelled Bonds held by the Paying Agent/Registrar shall be
disposed of as directed by the City.
SECTION 33: Confirmation of Sale. That sale of
the Bonds to Kidder, Peabody & Co.· Inc. . at the price
of par, accrued interest 1 plus a premium of .. q_ is hereby
confirmed. Delivery of the Bonds shall be made to said
purchasers as soon as may be practical after the adoption of
this Ordinance, upon payment therefor in accordance with the
notice of sale.
SECTION 34: Approval and Registration of Bonds. The
Mayor of said City is hereby authorized to have control of the
Bonds, including the Initial Bond(s), and all necessary records
and proceedings pertaining to said Bonds pending their delivery
and their investigation, examination and approval by the
Attorney General of the State of Texas. Upon registration of
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l 9 4 6 D
the Initial Bond(s), said Comptroller of Public Accounts (or a
deputy designated in writing to act for said Comptroller) shall
manually sign the Comptroller•s Registration Certificate
prescribed herein to be printed and endorsed on the Initial
Bond(s), and the seal of said Comptroller shall be impressed,
or printed, or lithographed on said Initial Bond(s).
SECTION 35: Approval of Official Statement. That
the form and substance of the Official Statement dated
March 24, 1988 , and any addenda, supplement or amendment
thereto (the "Official Statement"), is hereby. in all respects
approved and adopted by the City Council and the Mayor and the
City Secretary are hereby authorized and directed to execute
the same and deliver appropriate numbers of executed copies
thereof to the purchasers of the Bonds. Said Official
Statement as thus approved, executed and delivered, with such
appropriate variations as shall be approved by the City Manager
and the purchasers of the Bonds, may be used by said purchasers
in the public offering and sale thereof. The City Secretary is
hereby authorized and directed to include and maintain a copy
of the Official Statement and any addenda, supplement or
amendment thereto thus approved among the permanent records of
this meeting.
SECTION 36: Legal Opinion. That the purchasers'
obligation to accept delivery of the Bonds herein authorized is
subject to their being furnished a final legal opinion of
Messrs. Fulbright & Jaworksi, Attorneys, Dallas, Texas,
approving such Bonds as to their validity, said opinion to be
dated and delivered as of the date of delivery and payment of
such Bonds. Printing of a true and correct copy of said
opinion on the reverse side of each of the Bonds, with an
appropriate certificate pertaining thereto, is hereby approved
and authorized.
SECTION 37: CUSIP Numbers. CUSIP numbers may be
printed on the Bonds. It is expressly provided, however, that
the presence or absence of CUSIP numbers on the Bonds shall be
of no significance or effect as regards the legality thereof
and neither the City nor the attorneys approving said Bonds as
to legality are to be held responsible for CUSIP numbers
incorrectly printed on the Bonds.
SECTION 38: 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, Bond Attorneys for the City and the
Bondholders 1 any right, remedy, or claim, legal or equitable,
under or by reason of this Ordinance or any provision hereof 1
this Ordinance and all its provisions being intended to be and
-38-
2 9 4 6 0
..
being for the sole and exclusive benefit
Paying Agent/Registrar, Bond Attorneys. for
Bondholders.
of the City, the
the City and the
SECTION 39: 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 conf 1 ict
and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.
SECTION 40: 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.
SECTION 41: Severability. If any provision 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 this governing body hereby declares that this
Ordinance would have been enacted without such invalid
provision.
SECTION 42: 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 43: 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 APPROVED ON FIRST READING this the28th day
of Apri 1 1988.
PASSED
this 2.91h. day of
2 'I 4 6 D
AND APPROVED
Aoril 1988.
ON SECOND AND FINAL
CITY OF LUBBOCK, TEXAS
-39-
READING,
THE STATE OF TEXAS R-194
COUNTY OF LUBBOCK
Before me France& Hernandez a Notary P~blic in and for Lubbock County. Texas on this day
personally appeared T.J. Aufi.ll' Account anaE!er . of the ~outhwestern Newspa-
pers Corporation. publishers of the Lubbock Avalanche-Journal -Mormng. Evenmg and Sunday. who
being by me duly sworn did depose and say that said newspaper has been P.Ublished continuously for more
than fifty-two weeks prior to the first insertion of this LeE!a I Notice
· No. 826197 at Lubbock County. Texas and the attached print-
ed copy of the LeE!al Notlce is a true coP.y of the orjginaLand1~a~printed in the Lubbock . · APrll 30• MaY 7, ~Yot5 A valanche-.Jo.,fi~l ~~ ~hdlo~ow.1ra d~es$ 36 .... 2 -. ,....5..,.6_.:_:..:.....:..-=-::.__;;::...:.....:.__:_..:..::..._:..._ ________ _
LUBBOCK AVALANCHE-JOURNAL
Southwestern Newspapers Corporation
Subscribed and sworn to before me this 13tt'fiay of _.!.M:..:a:.:Y:..._ ____ 19~
FORM58-l
IMO ~~-·~~·~!:!:'..' QFA
AND ·D•"""""'l::. LOCATE BI.OCK E-2. LUitU><.><..•._,
TEXAS. AND ICU·
ORDINANCE #t20o
I.ARI.Y DESC IN THE
'.----------IBODYOFTHISORDINANCE;OI· RECTING THE CITY ENGINEER TO MARK THE OFFICIAL MAPS
'AN ORDINANCE AVTHORIZ·
tNG 'THE ISSUANCE OP ''CITY
OF LUBBOCK, TEXAS, COMBI·
NATION TAXANO GOLF
COURSE REVENUE CERTIFI·
CATES OF OBLIGATION, SE· ----------f .. lUES 1988"; LEVYING AN AD
OREM TAX UPON AU. TAX· ABLE· PROPERTY IN THE CITY AND PLEDGING THE NET REV. . ENI.IES DERIVED FROM THE OPERATION AND OWNERSHIP ,•OF TH.E GOLF COURSE FACILI·
TIES FOR THE PAYMENT OF SAID CERTIFICATES; SPECIFY• .lNG THE TERMS AND FEA·
TliRES OF·SUCH CERTIFI•
CATIISANDRESOLVINGOTHER ;#AATT&RS INCIDENT ANDRE·
LATf;O TO THE IS$UANCE, 'SALE, $1!CVRITY, PAYMENT
AND ()ELIVIORY OF SAID CER·
OF THE CITY OF LUBBOCK TO REFLECT SAID ABANDON· MENT AND CLOSING; PROVID-ING A SAVINGS CI.AUSE; AND PROVIDING FOR I>I.IBLICA·
TION.
ORDINANCE #91'1.1 .
AN OROINANC:.E ABANDON•
lNG AND CI.OSING TWO TRANS. Q'R~..ll~.li:.t.l,tlMfiiNTt
':AND ;.··JIICRTIOIIIOF AN UNDER·
GROUND UTILITY EASEMENT·
1 LOCATED IN RU$Hl.AND PARK
· ADDITION TO THE CITY OF
LUBBOCK, LUBBOCK COUNTY,
TEXAS, EACH OF WHICH IS.
MORE PARTieULARLY DE•
SCRIBED HEREINAFTER IN
THIS OROINANC:Et DIRECTING
THE CITY ENGINEER TO MARK
THE OF1'1CIAL MAPS OF THE
CITY OF 1-UfiBOCK TO tiE•
FLECT SAID ABANDONMENT
AND CLOSING; PROVIDING A SAVINGS CLAUSE; ~NO PRO. VIOING FOR PUBLICATION.
. ORDINANCE #9199
AN ORDINANCE AUTHORIZ-ING THE ISSVANCE OF ''CITY OF LUBBOCK •. 'fEXAS. GENER· AL OBLIGATION BONOS, SE•
RIE$ 1988"1 SPECIFYING THE
TERMS AND FEATURES OF ,
SAID ·aONOS; L.EVYING A CON·
·TINUING DIRECT ANNUAL AI)"
VALOREM TAX FOR TKE PAY• MENT OF SAID BONDS; AND RESOLVING OTHER MA'tTERS
INCIDENT AND. RELATE~! TO
Ttllii.I.S SUANCE··· SAl. E. P~· MENT AND DELIVERY OF
BONDS, INCLUDING THE A J!ROVAI. ANO Cti$1'RIIIUTIOM 0P AN OFFICIAL STATEMENT
PMlAINING :rHERETO; AND
PROVIDING AN EFFECTiVE
~~ ·~·
i Tlf'ICATE$, INCLUDING THE APP~OVAL AND DISTRIBUTION
OF. AN OFFICIAL UATEMENT
RELATING THERETO; ANO ~fi.IDING AN EFFECTIVE
ORDINANCE #9201
AN ORDII•iANCE AIJTHORIZ:·
lNG THE ISSUANCE OF
117.000.ll00 "CITY OF 1.UBBOCKi
110XAS, ELECTRIC.I,.IGHT AND
·POWER SYSTEM ~EVENUE
BONDS, SERIES 1t88"; PRE-
SCRIBING THE FORMS, TERMS,
"NO 'PROVISIONS OF SAID
, SON OS; PLEDGING THE NET
R.EVENUES OF THE CITY'S ELECTRIC LIGHT AND POWER SYSTEM TO THE PAYMENT OF' TI;E PRINCIPAL OF AND IN· TEREST ON SAID BONDS; EN· ACTING PROVISIONS INCIDENT AND ·RELATED TO THE IS:SU-ANC:E, PAYMENT, SECURITY, .$ALE AND DELIVERY OF SAID
BONOS, INCLUDING THE AI'-PRQVAL ANQ OISTRI&UTION.
OF AN OFFICIAL STATEMENT
PEitTAlNIItQ. THERETO, AND
. &:f.;: lOIN<; AN EI'FECTIVt!
:fl·lf<l c _________ ,
FRANCES HERNANDEZ
Notart Put;lK State ofT ex as
My Commossion Expires 7·6·9\