HomeMy WebLinkAboutOrdinance - 9068-1987 - Isuance Of $7,000,000 Electric Light And Power System Revenue Bonds - 04/23/1987:. I
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ORDINANCE NO.
AN ORDINANCE·authorizing the issuance of $7,000,000
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1987";
prescribing the forms, terms, and prov is ions
of said bonds; pledging the net revenues of
the City's Electric Light and Power System to
the payment of the principal of and interest
on said bonds; enacting provisions 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 in the Lubbock
Avalanche-Journal on the 22nd and 29th days of March, 1987; and
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
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been fully maintained in accordance with the prov1s1ons 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 wi 11
mature on April 15 in each year, and (v) the "Reserve Portion"
of the Bond Fund has been 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 will be outstanding upon the issuance of the
bonds herein authorized and no additional amount is required to
establish the Required Reserve Fund Amount; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION l: 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 $7,000,000, to be designated and bear the title "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1987" (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 April 15, 1987 (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 interest at per
annum rates in accordance with the following schedule:
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Year of Principal Interest
Stated Maturity Amount Rate
1988 $ 350,000 10.00\
1989 350,000 10.00%
1990 350,000 10.00%
1991 350,000 10.00%
1992 350,000 10.00%
1993 350,000 10.00%
1994 350,000 10.00%
1995 350,000 7.10\
1996 350,000 7.20%
1997 350,000 7.35%
1998 350,000 7.45%
1999 350,000 7.55%
2000 350,000 7.60%
2001 350,000 7.70%
2002 350,000 7.75%
2003 350,000 7.80\
2004 350,000 7.90\
2005 350,000 8.00%
·2006 350,000 7.00%
2007 350,000 7.00%
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, 1987.
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 off ice. 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 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.
In the event of a non-payment of interest on a
scheduled payment date, and for thirty (30) days thereafter, a
new record date for such interest payment ( a "Special Record
Date") will be established by the Paying Agent/Registrar, if
and when funds for the. payment of such interest have· been
received from the City. Notice of the Special Record Date and
of the scheduled payment date of the past due interest which
shall be 15 days after the Special Record Date shall be sent at
least five (5) business days prior to the Special Record Date
by United States mail, first class postage prepaid, to the
address of each 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, 1998,
shall be subject to redemption prior to maturity, at the option
of the City, on April 15, 1997 or any date thereafter, in whole
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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 redeem
Bonds, the principal 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
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 principa 1 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
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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) shall become due and payable,
and interest thereon shal 1 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 sha 11 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 ac, 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 8D, 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.
SECTION 6: Registration -Transfer -Exchange of
Bonds -Predecessor Bonds. A Security Register relating to the
registration, payment, and transfer or excha·nge 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 issued 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
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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 t ransf ere es, one or more new Bonds
executed on behalf of, and furnished by, the City of authorized
denominations and having the same Stat_ed 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
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
pursuaht 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
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therefor. Additionally, the term "Predecessor Bonds" shall
include any Bond registered and delivered pursuant to
Section 32 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
piovided 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, in
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 instructions
from the initial purchaser(s), or the designee thereof, and
such other information and documentation as the Paying
Agent/Registrar may reasonably require.
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,
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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 1987
Bond Date: Interest Rate: Stated Maturity:
April 15,1987
Registered Owner:
Principal Amount:
REGISTERED $ ____ _
CUSIP NO.
DOLLARS
The City of Lubbock, Texas, (hereinafter referred to
as the "City"), a body corporate and municipal corporation in
the County 0£ 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
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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, 1987. 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 Agent/Registrar at the close of
business on the "Record Date," which is the last 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 $7,000,000 (herein
referred to as the "Bonds") the purpose of 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, 1998, may
be redeemed prior to their Stated Maturities, at the option of
the City, on Apri 1 15, 1997, 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,
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
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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 charge 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 City'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 1 ien on and pledge of the Net
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
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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 1 iens, pledges, 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 limitations contained
in the Ordinance, may be transferred on the Security Register
only upon its presentation and surrender at the principal
office of the Paying Agent/Registrar, with the Assignment
hereon duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Paying Agent/Registrar
duly executed by, the registered owner hereof, or his duly
authorized agent. When a transfer on the Security Register
occurs, one or more 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
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
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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.
COUNTERSIGNED:
City Secretary
(City Seal)
I 7 8 ID
CITY OF LUBBOCK, TEXAS
Mayor
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Y:·. I
' '.
c. *Form of Registration Certificate of Comptroller
of Public Accounts to Appear on Initial Bond only.
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
()
()
()
()
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
REGISTER NO.
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.
* NOTE TO PRINTER: Do not print on Definitive Bonds.
this
{SEAL)
D.
WITNESS my signature and seal of office
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 registered 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:
t 7 8 I 0
Texas Commerce Bank,
National As~ociation
Lubbock, Texas
as Paying Agent/Registrar
By
Authorized Officer
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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
registration thereof,
premises.
the within Bond on the books kept for
with full power of substitution in the
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:
l 7 8 l D
PRINCIPAL
INSTALLMENTS
INTEREST
RATE
(Information to be inserted from schedule
in Section 2 hereof).
-15-
•
(or so much thereof as shal 1 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, 1987.
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 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:
1 1 8 l 0
(a)
additional
to issue
prescribed
The term "Additional Bonds" shall mean the
parity obligations the City reserves the right
in accordance with the terms and conditions
in Section 20 hereof.
(b) The term "Bonds" shall mean the $7,000,000 "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1987," dated Apri 1 15, 1987, 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 the twelve
month accounting period used by the City in connection
with the operations of the System which may be any twelve
(12) consecutive month period established by the City.
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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 1964, dated March 15, 1964, in the
original principal amount of $4,500,000;
(2) Series 1965, dated March 15, 1965, in the
original principal amount of $3,000,000;
(3) Series 1973, dated July 15, 1973, in the
original principal amount of $6,000,000;
( 4) Series 1975, dated March 15, 1975, in the
original principal amount of $6,400,000;
(5) Series 1975-A, dated September 15, 1975, in
the original principal amount of $2,000,000;
(6) Series 1976, dated April 15, 1976, in the
original principal amount of $4,400,000;
(7) Series 1983, dated May 15, 1983, in the
original principal amount of $10,770,000;
and
(8) Series 1984, dated April 15, 1984, in the
original principal amount of $10,000,000.
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(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
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 lssued, 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 expenses of
operating and maintaining the System as set forth
herein in the definition "Net Revenues" and to
recover depreciation;
(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)
payable
secured
thereof.
any
from
by a
other legally
the revenues
lien on the
incurred indebtedness
of the System and/or
System or the revenues
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
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l 7 I 1 D
;•
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 Reserve Fund"
(hereinafter referred to as the "Bond Fund"), created and
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 principal 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.
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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 the amount
required to fully pay and discharge all outstanding Bonds
Similarly Secured (principal and interest) or (ii) the Bonds
are no longer outstanding, i.e., the Bonds have been fully paid
as to principal and interest or. all the Bonds have been
refunded.
Accrued interest and premium, if any, received from
the purchasers of the Bonds shall 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 principal 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 $2,705,965.91, which 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.
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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
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 wi 11 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 provisions 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
-21-I 1 8 I D
II' I
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.
SECTION 19: Investment of Reserve Portion of Bond
Fund. The custodian bank shall, when authorized by the City
Counci 1, 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 Horne 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:
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(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 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 wi 11 be
outstanding upon the issuance of the Additional 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;
(d) 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 wi 11 be
outstanding upon the issuance of any series of Additional
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.
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ll I
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.
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 unti 1 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:
(a) A detailed statement of the income and
expenditures of the System for such Fiscal Year;
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(b) A balance sheet as of the end of such Fiscal
Year;
(c) The Accountant's comments regarding the manner
in which the City has compiled with the covenants and
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 the 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 pa id as 'such. Copies of the aforesaid annua 1
audit shall be immediately furnished to the Executive Director
of the Municipal Advisory Counci 1 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
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,
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.
SECTION 24: Special Covenants. The City hereby
further covenants as follows:
I 7 8 I D
(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, lease 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.
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(e) That the City will faithfully and
punctually perform all duties with respect to the
System required by the Cons ti tut ion and laws of the
State of Texas, including the making and collecting
Qf 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 shall 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 other 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", and as such a negotiable
instrument, within the meaning of Article 8 of the Uniform
Commercial Code.
In addition, the Mayor, Director 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
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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.
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 30 hereof; and
(4)
principal
has been
with law.
those Bonds for which the payment of the
of, premium, if any, and interest on which
duly provided for by the City in accordance
SECTION 28: Covenants Regarding Tax Exemption of
Interest on the Bonds. Unless and until the City shall have
received a written opinion of counsel of nationally recognized
in the field of municipal bond law to the effect that failure
to comply with one or more of the following covenants will not
adversely affect any exemption from federal income tax of
interest on any Bond, the City agrees to comply with each of
the specific covenants in this Section.
(a) With respect to the Bonds and the facilities
financed or refinanced with such obligations, the City shall
not permit either the "Trade or Business Test" or the "Security
Interest Test", or both such tests, to be met.
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( 1) Trade or Business Test. The Trade or
Business Test is met if more than 10 percent of
the proceeds of the Bonds are to be used
(directly or indirectly) for any "private
business use" by any person other than a
governmental unit.
( 2) Security Interest Test. The Security
Interest Test is met if the payment of the
principal of, or the interest on, more than 10
percent of the proceeds of the Bonds is (under
the terms of the Bonds or any underlying
arrangement) directly or indirectly-
(A) secured by any interest in -
( i) property used or to be used
for a private business use, or
(ii) payments in respect of such
property, or
(B) to be derived from payments
(whether or not to the City) in respect of
property, or borrowed money, used or to be
used for a private business use.
The term "private business use" means use (directly or
indirectly) in a trade or business carried on by a person other
than a governmental unit. For purposes of the preceding
sentence, use as a member of the general public shall not be
taken into account and any activity carried on by a natural
person shall not be taken into account. All activities of
section 50l{c){3 organizations, the Federal Government
{including its agencies and instrumentalities), and other
nongovernmental persons who are not natural persons are treated
as trade or business activities.
(b) For purposes of the Trade or Business Test, a
person may be a user of bond proceeds and bond-financed
property as a result of (1) ownership or (2) actual or
beneficial use of property pursuant to a lease, a management or
incentive payment contract, or (3) any other arrangement such
as a take-or-pay or other output-type contract. Use on the
same basis as the general public (including use as an
industrial customer) is not taken into account. However, trade
or business use by all persons on a basis different from the
general public is aggregated in determining if the 10 percent
limit is met.
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(c) For purposes of the Trade or Business Test, use
pursuant to management contracts not exceeding five years
(including renewal options) is not treated as private business
use if -
(1) at least 50 percent of the compensation
to any manager-other than a governmental unit is
on a periodic, fixed-fee basis;
(2) no amount of compensation is based on a
share of net profits; and
(3) the governmental unit owning the
facility may terminate the contract (without
penalty) at the end of any three year period.
(d) For purposes of the Trade or Business Test,
"private business use" includes sales or exchanges of power
from the Electric Light and Power System to private persons or
entities, excluding (i) exchanges in which such person or
entity is acting solely as a conduit for the exchange of power
with an electric utility which is owned and operated by a state
or local government, (ii) exchanges in which the amount of such
power provided and received is substantially equal over periods
of one year or less, the exchange arrangement does not involve
a take-or-pay, output, or similar arrangement, and the purpose
of the exchange is to enable the City and such person or entity
to satisfy differing peak load demands or to accommodate
temporary outages, and (iii) spot-sales, pursuant to a single
agreement of not more than 30 days duration, of excess power
capacity, except pursuant to a take-or-pay, output, or similar
arrangement.
(e) For purposes of the Security Interest Test, both
direct and indirect payments made by any person (other than a
governmental unit) who is treated as using the proceeds of the
Bonds are counted. Such payments are counted whether or not
they are formally pledged as security or are directly used to
pay debt service on the Bonds. Similarly, payments to persons
other than the City may be considered. Revenues from generally
applicable taxes are not treated as payments for purposes of
the security interest test; however, special charges imposed on
persons satisfying the use test ( but not on members of the
public generally) are so treated if the charges are in
substance fees paid for the use of bond proceeds.
( f) No more than 5 percent of the proceeds of the Bonds
will be used for any private business use test that is not
related to any governmental use of such proceeds. For this
purpose, the term "related" means a use for a facility that is
located within or adjacent to any governmental facility to
which it is related.
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(g) No more than 5 percent of the proceeds of the Bonds
will be used for any private business use that is
disproportionate to the amount of such proceeds used for a
related governmental use. The determination of whether a
private use which is related to a government use also being
financed with the bond proceeds is disproportionate to the
government use to which such private use related is determined
by comparing the amount of bond proceeds used for the related
private and government uses. The related private use is
disproportionate to the related government use to the extent it
exceeds such use in amount. Multiple, related private use
facilities for any government use are treated as one facility
for purposes of this rule. •
(h) The Trade or Business Test and Security Interest Test
are deemed to be met where 5 percent or more of the proceeds of
the Bonds are used with respect to any output facility (other
than a facility for the furnishing of water) and the amount of
proceeds so used exceeds the excess of -
(1) $15 million, over
(2) the aggregate amount of proceeds with
respect to all prior tax-exempt issues 5 percent
or more of the proceeds of which are or will be
used with respect to such output facility (or any
other facility which is part of the same project).
There shall not be taken into account under subparagraph (2)
above any bond which is not outstanding at the time of the
later issue or which is to be redeemed (other than in an
advance refunding) from the net proceeds of the later issue.
(i) The amount of proceeds of the Bonds which are to
be used directly or indirectly) to make or finance loans to
persons other than governmental units will not exceed the
lesser of (a) 5 percent of such proceeds or (b) $5 million.
( j) The City wi 11 not take any act ion which would
adversely affect the exemption from federal income taxation of
the interest paid on the Bonds, including without limitation
any action that would permit any of the Bonds to be treated as
"private activity bonds" within the meaning of section 141 of
the Code, or as "federally guaranteed" within the meaning of
section 149(b) of the Code, and will take, or require to be
taken, such acts as may be reasonably within its ability and as
may from time to time be required under applicable law or
regulation to continue to exempt from federal income taxation
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the interest on the Bonds, including the preparation and filing
of any statements or information reports required to be filed
by the City in order to maintain the tax-exempt status of the
interest on the Bonds.
(k) The City has not taken, has no present intention
of taking any action and knows of no action taken or intended
which would cause interest on the Bonds to be includable in the
gross income of any bondholders for federal income tax purposes.
SECTION 29: Covenants Regarding Arbitrage. Unless
and until the City shall have received a written opinion of
counsel of nationally recognized in the field of municipal bond
law to the effect that failure to comply with one or more of
the following covenants will not adversely affect any exemption
from federal income tax of interest on any Bond, the City
agrees to comply with each of the specific covenants in this
Section.
(a) A Rebate Fund is hereby established by the City.
Such Fund shall be for the sole benefit of the United States of
America and shall not be subject to the claim of any other
person, including without limitation the bondholders. The
Rebate Fund is established for the purpose of compliance with
section 148 of the Internal Revenue Code of 1986 (the "Code").
(b) At the close of each "Bond Year," the City shall
compute the amount of "Excess Earnings," if any, for the period
beginning on the date of delivery of the Bonds and ending at
the close of such "Bond Year" and transfer an amount equal to
the difference, if any, between the amount then in the Rebate
Fund and the Excess Earnings so computed. The term "Bond Year"
means with respect to the Bonds each one-year period ending on
the anniversary of the date of delivery of the Bonds. If, at
the close of any Bond Year, the amount in the Rebate Fund
exceeds the amount that would be required to be paid to the
United States of America under paragraph (d) below if the Bonds
had been paid in full, such excess may be transferred from the
Rebate Fund and paid to the City.
(c) In general, "Excess Earnings" for any period of
time means the sum of
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(i) the excess of --
(A) the aggregate amount earned during
such period of time on all "Nonpurpose
Investments" (including gains on the
disposition of such Investments) in which
"Gross Proceeds" of the issue are invested
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(other than amounts attributable to an
excess described in this subparagraph
(c)(i)) over
(B) the amount that would have been
earned during such period of time if the
"Yield" on such Nonpurpose Investments
(other than amounts attributable to an
excess described in ths subparagraph (c)(i))
had been equal to the Yield on the issue,
plus
(ii) any income during such period of time
attributable to the excess described in
subparagraph (c)(i) above.
"Excess Earnings" will not include amounts, if any, which need
not be taken into account under the special rules of section
148(f) (4) (A) and (B) of the Code relating to bona . fide debt>
service funds and the six-month temporary investment period.
The terms "Nonpurpose Obligations," "Gross Proceeds" and
"Yield" shall have the meanings prescribed by section 148 of
the Code and shall be applied in the manner prescribed in such
section.
(d) The City shall pay to the United States of
America at least once every five-years an amount that ensures
that at least 90 percent of the Excess Earnings from the date
of delivery of the Bonds to the close of the period for which
the payment is being made will have been paid. The City shall
pay to the United States of America not later than 60 days
after the Bonds have been paid in ful 1 100 percent of the
amount then required to be paid under section 148(f) of the
Code as a result of Excess Earnings.
(e) The City shall keep such records as will enable
the City to fulfill its responsibilities under this section and
section 148(f) of the Code and shall retain such records for at
least six years following the final payment of principal and
interest on the Bonds.
(f) The City will not use any portion of the proceeds
of the Bonds directly or indirectly to acquire "higher yielding
investments," or to replace funds which were used directly or
indirectly to acquire "higher yielding investments." The term
higher yielding investments means any investment property (as
defined in section 148(b)(2) of the Code) which produces a
yield over the term of the issue which is materially higher
than the yield on the Bonds (as defined above). The foregoing
limitation on higher yielding investments shall not apply to --
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(1) proceeds of the Bonds invested for a
reasonable temporary period of 3 years or less
until such proceeds are needed for the purpose
for which the bonds are issued,
(2) amounts invested
bona fide debt service
earnings on such fund are
any bond year, and
in the Bond Fund ( a
fund) if the gross
less than $100,000 in
(3) amounts deposited in the Reserve Fund
allocated to the Bonds not in excess of 10
percent of the proceeds of the Bonds.
{g) The City covenants to restrict the use of the
proceeds of the Bonds in such manner and to such extent, as may
be necessary, so that the Bonds will not constitute arbitrage
bonds under section 148 of the Code and, to the extent
applicable, section 149 (d) of the Code ( relating to advance
refundings). Any authorized representative of the City having
respoqsibility with respect to the issuance of the Bonds is
authorized and directed, alone or in conjunction with any other
official, employee or consultant of the City to give an
appropriate certificate on behalf of the City, for inclusion in
the transcript of proceedings for the Bonds, setting forth the
facts, estimates and circumstances and reasonable expectations
pertaining to section 148 of the Code and, to the extent
applicable, section 149(d) of the Code.
(h) The requirements of this Section are subject to,
and shall be interpreted in accordance with section 148 of the
Code and any regulations which may be issued thereunder.
( i) The City shall not, at any time prior to the
final Stated Maturity of the Bonds, enter into any transaction
that reduces the amount required to be paid to the United
States pursuant to 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.
{j) The. City's payment of rebate to the United
States is additional consideration for the purchase of the
Bonds by the initial purchasers thereof and the loan of money
represented thereby, and is for the purpose of preserving the
exemption from federal income taxation of interest on the Bonds.
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/ SECTION 30: 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
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 made of any such deposit which would cause the Bonds to be
treated as arbitrage bonds within the meaning of section 103(c)
of the Internal Revenue Code of 1986.
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(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 31: 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
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 32: 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.
(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 applicant shall furnish to
the City and to the Paying Agent/Registrar evidence to their
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satisfaction of
as the case may
a Bond, the
Agent/Registrar
mutilated.
the loss, theft, or destruction of such Bond,
be. In every cause of damage or mutilation of
applicant shall surrender to the Paying
for cancellation the Bond so damaged or
(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 connection
therewith. Every replacement bond issued pursuant to the
provisions of this Section by virtue of the fact that any Bond
is lost, 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 Section 6 of Vernon's Ann. Tex. Civ. St.
Article 7 l 7k-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 effect, as provided in the Ordinance for Bonds issued
in conversion and exchange for other Bonds.
SECTION 33: 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
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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 34: Confirmation of Sale. That sale of
the Bonds to Prudential-Bache Securities Inc. and Associates at
the price of par, accrued interest, plus a premium of -o-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 35: 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
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 shal 1 be impressed,
or printed, or lithographed on said Initial Bond(s).
SECTION 36: Approval of Official Statement. That
the form and substance of the Official Statement dated
March 26, 1987, 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 37: 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
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opinion on the reverse side of each of the Bonds, with an
appropriate certificate pertaining thereto, is hereby approved
and authorized.
SECTION 38: 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 39: 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, any right, remedy, or claim, legal or equi tao le,
under or by. reason of this Ordinance or any provision hereof,
this Ordinance and all its provisions being intended to be and
being for the sole and exclusive benefit of the City, the
Paying Agent/Registrar, Bond Attorneys for the City and the
Bondholders.
SECTION 40: Inconsistent Provisions. All
ordinances, orders or resolutions, or parts thereof, which are
in conflict or inconsistent with any provision of this
Ordinance are hereby repealed to the extent of such conflict
and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.
SECTION 41: 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 42: 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 43: 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.
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SECTION 44: 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 the 23rd day
of April, 1987.
PASSED AND APPROVED ON SECOND AND FINAL READING, this
24th day of April, 1987.
CITY OF LUBBOCK, TEXAS
ayor
ATTEST:
(City Seal)
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THE STATE OF TEXAS
COUNTY OF LUBBOCK
Before me Jane Ro ark a Notary Public in and for Lubbock County. Texas on this day
personally appeared Twi f I Auf 111 , .a.,co unt Manu!e r: of the Southwestern Newspa-
pers Corporation. publishers of the Lubbock Avalanche-Journal -Morning. Evening and Sunday. who
being by me duly sworn did depose and say that said newsp~e~ h1s ?fie~ p~blished continuously for more
than fifty-two weeks prior to the first insertion of this __ e_a ___ o ___ e __________ _
· No. 757541 at Lubbock County. Texas and the attached print-
ed copy of the I u!a I Not:t ce is a true copy of the original and was printed in the Lubbock
Avalanche-Journal on the following dates: AP r1 I 25; MaY 2, 1967
' 157 words~ S2t -$128.14
Account t1aneu!e r LUBBOCK AVALANCHE-JOURNAL
SouthwestefffNe~·spapers Corporation
' ~ubscri_bed and sworn to before me this ...Aih.. day of _.._M...,a...,Y,.._ ___ , 19___§_1
FOR!\t 58-10
FULS RIGHT & JAWORSKI
2001 Bryan Towvr, Suite 1400 Houston
Dallas, Texn 16201 Washington, D.C.
Austin
Telephone: 214196S-0022 Sen Antonio
Dallas
London
Zurich
July 1, 1987
Ms. Ranette Boyd
City Secretary
P.O. Box 2000
Lubbock, Texas 79457
Re: $7,000,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1987"
Dear Ranette:
Our services relating to the above described bonds having
been completed, enclosed herewith is transcript of proceedings
for the records of the City.
We appreciate the opportunity of working with the City in
this matter.
EMM/rne
Enclosure
cc: Joe w. Smith
OS7ZL-47
Very truly yours,
Elbert M. Morrow
RECORD OF PROCEEDINGS
RELATING TO
$7,000,000
ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS
SERIES 1987
DATED APRIL 15, 1987
Issued By
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
Fulbright & Jaworski
2001 Bryan Tower, Suite 1400
Dallas, Texas 75201
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FULBRIGHT & JAWORSKI
MAY 2 8 1981
2001 Bryan Tower, Suite 1400 Houston
Dallas, Texas 15201 Washington, D.C.
Austin Te/Bphone: 214Jll69-a022 San Antonio
Dallas
London
Zurich
IN REGARD to the authorization and issuance of the
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1987" (the "Bonds"), dated April 15,
1987, (the ''Bond Date"), in the principal amount of $7,000,000,
we have examined into the legality and validity of the issuance
thereof by the City of Lubbock, Texas (the "City"), which Bonds
are issuable in fully registered form only, in denominations of
$5,000 or any integral multiple thereof (within a maturity),
have stated maturities of April 15, 1988 through April 15,
2007, unless redeemed prior to maturity in accordance with the
terms stated on the face of the Bonds, and bear interest on the
unpaid principal amount from the Bond Date at the following
rates per annum:
Bonds maturing in the years 1988 through 1994 at 10.00%;
Bonds maturing in the year 1995 at 7.10\;
Bonds maturing in the year 1996 at 7.20\;
Bonds maturing in the year 1997 at 7.35\;
Bonds maturing in the year 1998 at 7.45\;
Bonds maturing in the year 1999 at 7.55\;
Bonds maturing in the year 2000 at 7.60\;
Bonds maturing in the year 2001 at 7.70\;
Bonds maturing in the year 2002 at 7.75%;
Bonds maturing in the year 2003 at 7.80%;
Bonds maturing in the year 2004 at 7.90%;
Bonds maturing in the year 2005 at 8.00%;
Bonds maturing in the year 2006 at 7.00%; and
Bonds maturing in the year 2007 at 7.00%;
such interest being payable on October 15 and April 15 of each
year, commencing on October 15, 1987, to the registered owners
thereof shown on the registration books of the Paying
Agent/Registrar on the Record Date (stated on the face of the
Bonds).
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Continuation of Legal Opinion of Messrs. Fulbright & Jaworski
RE: City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1987 dated April 15, 1987 in the
principal amount of $7,000,000
WE HAVE SERVED AS BOND COUNSEL for the City solely to
pass upon the legality and validity of the issuance of the
Bonds under the Constitution and laws of the State of Texas,
and with respect to the exemption of the interest on the Bonds
from federal income taxes and none other. We have not been
requested to investigate or verify, and have not independently
investigated or verified, any records, data or other material
relating to the financial condition or capabilities of the
City. Our examinations into the legality and validity of the
Bonds included a review of the applicable and pertinent
provisions of the Constitution and laws of the State of Texas,
a transcript of certified proceedings of the City relating to
the authorization and issuance of the Bonds, including the
Ordinance authorizing their issuance (the "Ordinance"),
customary certifications and opinions of officials of the City
and other pertinent showings, and an examination of the Bond
executed and delivered initially by the City, which we found to
be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Bonds have been duly authorized by the City in compliance with
the Constitution and laws of the State of Texas now in force,
and the Bonds issued in compliance with the provisions of the
Ordinance are valid and legally binding special obligations of
the City, in accordance with the terms thereof, and, together
with the outstanding and unpaid "Previously Issued Bonds"
(identified and defined in the Ordinance), are payable solely
from and equally and ratably secured by a first lien on and
pledge of the Net Revenues (as defined in the Ordinance) of the
City's Electric Light and Power System. The Ordinance provides
certain conditions under which the City may issue additional
obligations payable from the same source and secured in the
same manner as the Bonds.
IT IS FURTHER OUR OPINION THAT, assuming continuing
compliance after the date hereof by the City with the
provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a
certificate of even date herewith pertaining to the use,
expenditure, and investment of the proceeds of the Bonds, ( 1)
interest on the Bonds will be excludable from the gross income,
as defined, in section 61 of the Internal Revenue Code of 1986,
as amended to the date hereof, of the owners thereof for
Federal income tax purposes, pursuant to section 103 of such
Code, existing regulations, published rulings, and court
decisions thereunder, and (2) interest on the Bonds will not be
included in computing the alternative minimum taxable income of
individuals or, except as hereinafter described, corporations.
19980
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Continuation of Legal Opinion
RE: City of Lubbock, Texas,
Revenue Bonds, Series 1987
principal amount of $7,000,000
of Messrs. Fulbright & Jaworski
Electric Light and Power System
dated April 15, 1987 in the
Interest on all tax-exempt obligations, such as the Bonds,
owned by a corporation will be included in such corporation• s
adjusted net book income, for tax years beginning in 1987,
1988, and 1989, or adjusted current earnings, for tax years
beginning after 1989, for purposes of calculating the
alternative minimum taxable income of such corporation, other
than an s corporation, a mutual fund, a real estate mortgage
investment conduit (REMIC), or a real estate investment trust
(REIT). A corporation's alternative minimum taxable income is
the basis on which the alternative minimum tax imposed by· the
Tax Reform Act of 1986 and the environmental tax imposed by the
Superfund Revenue Act of 1986 will be computed for tax years
beginning after December 31, 1986.
WE EXPRESS NO OPINION with respect to any other
federal, state, or local tax consequences under present law or
any proposed legislation resulting from the receipt or accrual
of interest on, or the acquisition or disposition of, the
Bonds. Ownership of tax-exempt obligations such as the Bonds
may result in collateral Federal tax consequences to, among
others, financial institutions, property and casualty insurance
companies, certain foreign corporations doing business in the
United States, individual recipients of Social Security or
Railroad Retirement benefits, and taxpayers who may be deemed
to have incurred or continued indebtedness to purchase or carry
tax-exempt obligations.
EMM/tss
1998D
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RESOLUTION #2540
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 12th day of March, 1987, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in •the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. McMINN § MAYOR
T. J. PATTERSON §
MAGGIE TREJO §
GARY D. PHILLIPS § MEMBERS OF COUNCIL
JOAN BAKER §
GEORGE W. CARPENTER §
ROBERT A. NASH
and all of said persons were present at said meeting, except
the following:
Among other business considered at said meeting, the attached
resolution entitled:
"A RESOLUTION by the Cit·y Council of the City of
Lubbock, Texas, approving and authorizing
the giving of notice of intention to issue
revenue bonds; and declaring an emergency.•
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a .motion being made by T, J. Patterson
and seconded by Robert A.-Nash the resolution was
· finally passed and adopted as an emergency measure to become
effective immediately by the Council by the following vote:
7 voted •For• voted "Against• ---abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
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2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Counci 1 of said City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, each member of the Council was given actual notice of
time, place and purpose of the meeting and had actual notice
that the matter would be considered; and that said meeting, and
deliberation of the aforesaid public business, was open to the
public and written notice of said meeting, including the
subject of the entitled resolution, was posted and given in
advance thereof in compliance with the provisions of Article
6262-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 12th day
of March, 1987.
(City Seal)
1 7 7 3 D
~ .. ~~ ~ar;:=c~or-
. Lubbock, Texas · Ranette Boyd
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Resolution #2540
March 12, 1987
Agenda Item #27
A RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing
the giving of notice of intention to issue
revenue bonds; and declaring an emergency.
WHEREAS, the City Council of the City of Lubbock,
Texas, has determined that revenue bonds in the principal sum
of $7,000,000 should be issued in accordance with the
provisions of Articles 1111 et seq. and 2368a, V.A.T.C.S., to
finance the cost of improving and extending the electric light
and power system of the City; and
WHEREAS, prior to the issuance of said revenue bonds,
this Council is required to give notice of its intention to
issue the same in the manner and time provided by law; and
WHEREAS, it is hereby determined that the necessity
. for the immediate preservation of the public peace, property,
health or saftey of the citizens of the City of Lubbock and to
serve the best interest of the City of Lubbock by providing the
improvements and extensions to the electric light and power
system at the earliest possible date constitutes and creates an
emergency and an urgent public necessity requ1r1ng the
suspension of any rules providing for ordinances or resolutions
to be read more that one time or at more than one meeting of
the City Council and that this Resolution be declared an
emergency measure to become effective immediately from and
after its passage; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS:
Section 1: That the City Secretary is hereby
authorized and directed to cause notice to be published of this
Council's intention to meet on the 23rd day of April, 1987, to
pass an ordinance and take such action as will be necessary to
authorize the issuance of revenue bonds in the total principal
amount of $7,000,000 for the purpose of improving and extending
the electric light and power system of the City. The notice
hereby approved and authorized to be given shall read
substantially in the form and content of Exhibit A hereto
attached and incorporated herein by reference as a part of this
resolution for all purposes.
Section 2: That such notice shall be published once a
week for two consecutive weeks in a newspaper having general
circulation in the City of Lubbock, Texas, and the date of the
first publication of such notice to be at least fourteen ( 14)
days prior to the date stated therein for the passage of the
ordinance authorizing the issuance of the revenue bonds.
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Section 3: That the fact that it is necessary for the
immediate preservation of the public peace, property, hea 1th or
saftey of the citizens of the City of Lubbock and in the best
interests of the City of Lubbock to provide funds for the
improvements and extensions to the electric light and power
system at the earliest possible date constitutes and creates an
emergency and an urgent public necessity requiring the
suspension of any rules providing for ordinances and
resolutions to be read more than one time or at more than one
meeting of the City Council, and such rules and provisions are
accordingly suspended, and this Resolution is declared to be an
emergency measure, and shall take effect and be in full force
immediately from and after its passage on the date shown below.
PASSED AND APPROVED, this the 12th day of March, 1987.
ATTEST:
~c~C~j/ ~ary v-V
Ranette Boyd
(SEAL)
1774D
'ayor,ity of Lubbock, Texas
B. C. McMinn
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NOTICE OF INTENTION TO ISSUE
CITY OF LUBBOCK, TEXAS, REVENUE BONDS
NOTICE IS HEREBY GIVEN that the City Counci 1 of the
City of Lubbock, Texas, will convene at its reg.ular meeting
place in the City Hall of Lubbock, Texas at 9:00 o'clock
..A_.M. on the 23rd day of April, 1987, to pass an ordinance and
take such action as may be deemed necessary to authorize the
issuance of revenue bonds in the aggregate principal amount of
$7,000,000 for the purpose of improving and extending the
electric light and power system of the City. Such bonds shall
mature not later than December 31, 2024, shall bear interest at
such rate or rates (not to exceed 15\ per annum) as determined
by the City Council and said bonds, together with certain
outstanding and unpaid revenue bonds of the City, shall be
payable solely from and equally secured by a first lien on and
pledge of the net revenues of the City• s electric light and
power system.
The holder of such bonds shall never have the right to
demand payment out of any funds raised or to be raised by
taxation.
This Notice is issued pursuant to authority and
direction of the City Council of the City of Lubbock, Texas,
and in accordance with the provisions of Article 2368a,
V.A.T.C.S.
I 7 7 SD
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AFFIDAVIT OF PUBLICATION
l HOTIC& CJF IWTPlflOR · .. wmue·
' CITYOl"L.fl80CIIC, fllCQ
I . ' ' aevl!HUII IION'DS . THE STATE OF TEXAS § ·NoT1c1 t$.HtHn oive• . § . that the CIIY council ol the CIIY ol. LUbboCk. nus, will tonveM at ltt.
reQUlar meeting place "' Ille CIIY COUNTY OF LUBBOCK § Hall of LllbboCk, Tues •1 t:OO o'clock A.M. on. the .23rd. Cla'I. of § · AP,ll, 1ta1; .-to l>llU ·•n ordinance •1111 take such aetlon as· mav be
CITY OF LUBBOCK § =-~=1::=
illlllfHIIM. prlncii,al •mount of S7 GOO.GOO tor Iha 1111n>oSe of Im-. . : prOIIIIIIJ end exlefldlllll tt,e ,tle<;frlc
llllhl and pewer ,vstem of 1M CIIY,
BEFORE ME, the undersigned authority, ::,,,:111~J'L8.:r,::~
Personally appeared Twila Aufil I who a 1111-uuuc:htateorrateslftOt to e,cceed 15'l!o per ilftllllffl) IS de-
me duly sworn, deposes and says that (s)he is the :;.i;::!i:V::~~~ ·\
ManaE!er of the Lubbock Avalanche Journal, autt.t•ndl119and unpaldr-ue IOndS of me CIIY. shall be pay newspaper published and having general circulation .::~'ri:'o!"::~~,!Z~U::.: ·
of Lubbock, Texas, and that a true and correct frevenuesofltlltClf'l'Ulec:trlcllUhl
To 1 end pOWer svstem, ch t,oftds shall "NOTICE OF INTENTION ISSUE CITY OF LUBBOCK, TE~ Thehlllh derlheot1Urlllhttodemancl· • , .I never ave funds lied or BONDS", hereto attached was published 1n said p,,r:'11em;'!\~12~,~~~,1on .. ,e •
f O 11 ow i ng d a t es : r Thi• Notice ll luued pUl'$Uanl to
: authorllY and cllteel!C!'I ot 1he City \ , council of the c;1ty ot LubboCk. ,. texm. and 1n accardanee with 1h11 March 2 2 , 19 8 7; and . prov111011• ot Article 23618• v.A.T.c.s. ·
/Sf Renetta 9oYd i Cit'/ ~arv, ' March 29, 1987; fe1wotLvl)bOC:k,T-.a,10,, ~-~-~----
the date of the first publication of said notice being at least
fourteen ( 14) days prior to the date stated therein for the
passage of the ordinance authorizing the issuance of the
revenue bonds.
Twila A~Account Mana~er
SWORN TO AND
March
SUBSCRIBED BEFORE
, 1987.
ME,
day of -------------
My Commission Expires:
(Notary Seal)
1 7 7 7 D
this the30th ---------
Jane Roark
and for
Texas
10124/90
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 12th day of March, 1987, the City
Council of the City of Lubbock, Texas, convened in regular
session at the City Hall, Lubbock, Texas; the duly constituted
members of the Council being as follows:
B. C. McMINN
T. J PATTERSON
GEORGE CARPENTER
GARY D. PHILLIPS
ROBERT A. NASH
JOAN BAKER
MAGGIE TREJO
)
)
)
)
)
MAYOR
MEMBERS OF COUNCIL
and all of said persons were present at said meetings, except
the following: ----,--------· Among other business considered at said meeting, the attached resolution entitled:
"A RESOLUTION by the City Council of the City of
Lubbock, Texas, relating to the issuance and
sale of $5,960,000 'CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1987,' and
$7,000,000 'CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1987'; authorizing the publication of the Notices
of Sale pertaining to each issue of the bonds;
and declaring an emergency.•
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion being made by Councilmember
George Carpenter and seconded by Councilmember T.J. Patterson ,
the resolution was finally passed and adopted as an emergency
to become effective immediately by the Council by the following
vote:
7 voted "For• voted "Against• abstained
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all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, advance notice of the time, place, and purpose of the
meeting was given to each member of the Council; and that said
meeting, and the deliberation •Of the aforesaid public business,
was open to the public and written notice of said meeting,
including the subject of the entitled resolution, was posted
and given in advance thereof in compliance with the provisions
of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I hereunto signed my name
officially and affixed the seal of said City, this the 12th day
of March, 1987.
(City Seal)
I 1 1 6 D
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Resolution #2541
March 12, 1987
Agenda Item #28
A RESOLUTION by the City Council_of the City of
Lubbock, Texas, relating to the the issuance and
sale of $5,960,000 "CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1987," and
$7,000,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1987" authorizing the publication of the Notices
of Sa le pertaining to each issue of the bonds;
and declaring an emerge?cy.
WHEREAS, Notices of Sale have been prepared by First
Southwest Company, the City•s financial advisor, in connection
with the issuance and sale of $5,960,000 "City of Lubbock,
Texas, General Obligation Bonds, Series 1987" and $7,000,000
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1987" and submitted to the Council and
staff of the City for review and comments; and
WHEREAS, the Council finds and determines that the
aforesaid documents pertaining to the sale of each issue of
bonds should be approved and authorization should be given to
the City Secretary to proceed with the publication of an
advertisement for the sale of the bonds in accordance with
Article VIII, Section 5 of the City Charter of the City; and
WHEREAS, it is hereby determined that the necessity
for the immediate preservation of the public peace, property,
healthy or saftey of the citizens of the City of Lubbock and to
serve the best interest of the City of Lubbock by providing the
improvements to be financed by the sale of bonds at the
earliest possible date constitutes and creates an emergency and
an urgent public necessity requiring the suspension of any
rules providing for ordinances or resolutions to be read more
than one time or at more than one meeting of the City Council
and that this Resolution be declared an emergency measure to
become effective immediately from and after its passage; now,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION l: That the Notice of Sale prepared in
connection with the issuance and sale of $5,960,000 "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1987" is
hereby approved, such document being attached hereto as Exhibit
A and incorporated herein by reference and made a part of this
resolution for all purposes.
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SECTION 2: That the Notice of Sale prepared in
connect ion with the issuance and sale of $7,000,000 .. CITY OF
LUBBOCK, TEXAS, ELECRTIC LIGHT AND POWER SYSTEM REVENUE BONDS,
SERIES 1987" is hereby approved, such document being attached
hereto as Exhibit B and incorporated herein by reference and
made a part of this resolution for all purposes.
SECTION 3: First Southwest Company is further
authorized and directed to prepare for each issue of bonds an
"Official Statement" and an additional "Notice of Sale," both
of which are for distribution to prospective bidders with
respect to said Bonds, and the same shall be reviewed by this
Council at the meeting to be held on March 26, 1987.
SECTION 4: That the fact that it is necessary for the
immediate preservation of the public peace, property, heal th,
or safety of the citizens of the City of Lubbock. and in the
best interests of the City of Lubbock to provide for
improvements to be made with the proceeds from the sale of the
bonds herein described at the earliest possible date
constitutes and creates an emergency and an urgent public
necessity requiring the suspension of any rules providing for
ordinances and resolutions to be read more than one time or at
more than one meeting of the City Council, and such rules and
provisions are accordingly suspended, and this Resolution is
declared to be an emergency measure, and shall take effect and
be in full force immediately from and after its passage on the
date shown below.
PASSED AND APPROVED, this the 12th day of March, 1987.
ATTEST:
-~ ~--···~ J?
Citycretary,
City of Lubbock, Texas Ranette Boyd
(City Seal)
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ayor, City of Lubbock, Texas B. c. McMinn
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NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
EXHIBIT A
The City Council of the City of Lubbock, Texas, will receive
sealed bids at the City Council Chambers, Municipal Complex, 1625
13th Street, Lubbock, Texas, until 11:00 A.M., Central Daylight Time,
Thursday, April 23, 1987, for the fol lowing described Bonds:
$5.960,000 City of Lubbock, Texas, General Obligation
Bonds, Serles 1987
Dated Apri I 15, 1987; principal due February 15
of each year as follows: $260,000 in 1988; $300,000
each year 1989 through 2007; interest payable February
15, 1988, and each August 15 and February 15
thereafter. The City reserves the right, at its
option, to redeem Bonds maturing on and after February
15, 1998, on February 15, 1997, or any interest
payment date thereafter, at the par value thereof
plus accrued interest to the date fixed for payment.
Further information may be obtained from the Division of
Finance, City of Lubbock, P. 0. Box 2000, Lubbock, Texas 79457; or from
First Southwest Company, 800 Da I I as Bui Id i ng, 1807 Commerce St., Da I I as,
Texas 75201, Financial Consultants to the City.
<City Seal)
Ranette Boyd
City Secretary
City of Lubbock
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NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
EXHIBIT B
The City Council of the City of Lubbock, Texas, will receive
sealed bids at the City Counci I Chambers, Municipal Complex, 1625
13th Street, Lubbock, Texas, until 11:00 A.M., Central Daylight Time,
Thursday, Apri I 23, 1987, for the following described Bonds:
$7 1000,000 City of Lubbock, Texas, Electric Light
and Power System Revenue Bonds, Series 1987
Dated Apr i I 15, 1987; pr inc i pa I due Apr I I 15 of
each year as fol lows: $350,000 each year 1988 through
2007; interest payable October 15, 1987, and each
Apri I 15 and October 15 thereafter. The City reserves
the right, at its option, to redeem Bonds maturing
on and after Apri I ·15, 1998, on Apri I 15, 1997,
or any interest payment date thereafter, at the .
par va I ue thereof p I us accrued interest to the date
fixed for payment.
Further information may be obtained from the Division of
Finance, City of Lubbock, P.O. Box 2000, Lubbock, Texas 79457; or from
First Southwest Company, 800 Dal las Bui I ding, 1807 Commerce St., Dal las,
Texas 75201, Financial Consultants to the City.
(City Seal)
Ranette Boyd
City Secretary
City of Lubbock
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THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
AFFIDAVIT OF PUBLICATION
§
§
§
§
§
BEFORE ME, th~ I undar.signed authority,
11 d Tw1aAUflll h f persona y appea re ---,----------' w o, a
me duly sworn, deposes and says that (s)he is theA
the Lubbock Avalanche Journal, and that a·tiue and
Of the "NOTICE OF SALE," hereto attached, was publ
paper on the following dates:
March 22, 1987;
March 29, 1987;
April 5, 1987;
April 12, 1987; and
Apr i 1 19 , 19 8 7;
# -; •
NOTH:EOI' S4LE ·~
C:tTV OF LUIIBO(.K, TEW' j TJIO' City Cll-u ., 1111 ~ l
L.-,Otel, T1110, !lf+ft rent.,,
, SU1-d blea fl the C(IY Cflllllpl
; Cll<1mbera_~M1tttiel1J•I Cllf!lPII_ .., 1625 l31h Street, Lllbbock, leus, ·
until 11 :00 A,M., Centr•I Oovlivht
TIITI!!, Thurldav, ilPrll U. 19117, tor
th~ followln11 clescrlbed Bonds:
· · '1 ,tt6,tOO City If LUl,tct, · THH, Electric 1.19111 .... , Powtr Sy11e111 RevHve · ·. Oellcls, Wie$ lft1
Oatlld APt'll 15, 1987; prlncli>al
. clue A!>rll 15. Of Heh YHr es lollowa: 1350,000 Heh Year naa throuth 2001; lnt,resl
llaYfble Otfober 1$, 1987, '"" flCII-Artrll lJ ll'lcl Ottl!lil!f 15 lflereefter. The CIII' re~
the r!Ght, et tt, OPlfon, to ,..
cleeffl 8onds maturing on and . •lier Al>ril 1$, 1911, on Al>rll 1$.
· 1997, or •nv lnlere,t HVft16nt . date thereafter. el Ille par v•I• ue thereof. plus accrued Inter•
"' to II-. clille fiMd for NY. me~I. ' ·· .
· Further lnforll'llltloci mav ._ ob-
tillned frol'n tile 01111,1cm of Fl• n•-•<lh< Of I..Clbbock,'P, 0. Boa 2000. LUllboct., Tens 19457 1 or
from First Southv,est Com1tenv, -
800 Dallas Bullclin9, l,01 Com• metee JI .. ~!las, .Texas 75201, Fi,. · llent:1,11 Coftsultan1$ to the City. tlanette eov~ , City St<:retarv CllyllfLubl>:l(;k
!Cit~ Se.ttl R-103
the date of the first of such publications being at least
thirty (30) days prior to the date of the public sale for the
bonds referred to therein.
SWORN TO AND SUBSCRIBED BEFORE ME, this the 20th day
of APri I , 1987.
, /
(Notary Seal)
17840
N ary Public, State of Texas
M Commissi.on Expires: 10/24/90
Jane Roark
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 23rd day of April, 1987, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. McMINN )
)
)
)
)
)
)
MAYOR
T~ J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
MEMBERS OF COUNCIL
GEORGE W. CARPENTER
ROBERT A. NASH
all of said persons were present at said meeting, except the
following: Among other ------------------business considered at said meeting, the attached ordinance
entitled:
AN ORDINANCE authorizing the issuance of $7,000,000
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1987";
prescribing the forms, terms, and provisions
of said bonds; pledging the net revenues of
the City's Electric Light and Power System
to the payment of the principal of and
· interest on said bonds; enacting provisions
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.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by a,.,..,u••''"'""" IYAIIW and
seconded by C41.;'.,.,,c.;,n,;-J"' t!MHNrFA., the ordinance was duly passed and
adopted on first reading by the Council by the following vote:
2 voted "For" (2 voted "Against" (2 abstained
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all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those perons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 23rd day
of April, 1987.
~&a-~~ Cit Secretary
City of Lubbock, Texas
(City Seal)
-2-20240
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 24th day of April, 1987, the City
Council of the City of Lubbock, Texas, convened in special
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. McMINN
T.· J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
GEORGE W. CARPENTER
ROBERT A. NASH
)
)
)
)
)
)
)
MAYOR
MEMBERS OF COUNCIL
all of said persons were present at said meeting, except the following: _________________ _ Among other
business considered at said meeting, the attached ordinance
entitled:
AN ORDINANCE authorizing the issuance of $7,000,000
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1987";
prescribing the forms, terms, and provisions
of said bonds; pledging the net revenues of
the City• s Electric Light and Power System
to the payment of the principal of and
interest on said bonds; enacting provisions
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.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon . a motion made by C114",,.cl'""11#n' h"',q and
seconded by t!@111eu.m«tV Yrn:u.s,,v, the ordinance was duly passed and
adopted on second and final reading by the Council to be
effective immediately by the following vote:
7 voted "For" ---__ cJ ___ voted "Against" (2 abstained
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all as shown in the official Minutes of the Counci 1 for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those perons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 24th day
of April, 1987.
o~~ City Secretary
City of Lubbock, Texas
(City Seal)
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ORDINANCE NO.
AN ORDINANCE authorizing the issuance of $7,000,000
.. CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1987";
prescribing the forms, terms, and provisions
of said bonds; pledging the net revenues of
the City's Electric Light and Power System to
the payment of the principal of and interest
on said bonds; enacting provisions 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 in the Lubbock
Avalanche-Journal on the 22nd and 29th days of March, 1987; and
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 Council 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 cal led 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
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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 wi 11
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 will 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 has been 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 will be outstanding upon the issuance of the
bonds herein authorized and no additional amount is required to
establish the Required Reserve Fund Amount; 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 $7,000,000, to be designated an~ bear the title "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1987" (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 April 15, 1987 (the "Bond Date") and shall
be in denominations of $5,000 or any integral multiple thereof
(within a Stated Maturity) and the Bonds sha 11 become due and
payable on April 15 in each of the years and in principal
amounts (the "Stated Maturities•) and bear interest at per
annum rates in accordance with the following schedule:
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Year of Principal Interest
Stated Maturity Amount Rate
1988 $ 350,000 10.00\
1989 350,000 10.00\
1990 350,000 10.00\
1991 350,000 10.00\
1992 350,000 10.00\
1993 350,000 10.00\
1994 350,000 10.00\
1995 350,000 7.10\
1996 350,000 7.20\
1997 350,000 7.35\
1998 350,000 7.45\
1999 350,000 7.55\
2000 350,000 7.60\
2001 350,000 7.70\
2002 350,000 7.75\
2003 350,000 7.80\
2004 350,000 7.90\
2005 350,000 8.00\
2006 350,000 7.00\
2007 350,000 7.00\
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 is
and October 15 of each year commencing October 15, 1987.
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 Payi~g
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 Payin19
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 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.
In the event of a non-payment of interest on a
scheduled payment date, and for thirty (30) days thereafter, a
new record date for such interest payment (a "Special Recor.a
Date") will be established by the Paying Agent/Registrar, if
and when funds for the payment of such interest have been
received from the City. Notice of the Special Record Date and
of the scheduled payment date of the past due interest which
shall be 15 days after the Special Record Date shall be sent at
least five (S) business days prior to the Special Record Date
by United States mail, first class postage prepaid, to the
address of each 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, 1998,
shall be subject to redemption prior to maturity, at the option
of the City, on April 15, 1997 or any date thereafter, in whole
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or in part in principal amounts of $5,000 or
multiple thereof (and if within a Stated Maturity
Paying Agent/Registrar), at the redemption price
accrued interest to the date of redemption.
any integral
by lot by the
of par plus
(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 redeem
Bonds, the principal 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
shal 1 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
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 port ion of the principa 1 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
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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 f rorn 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
off ice rs 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 SC, 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 8D, 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.
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 issued 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
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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 denomi~ations 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.
Al 1 Bonds issued upon any trans fer 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
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
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therefor. Additionally, the term "Predecessor Bonds" shall
include any Bond registered and delivered pursuant to
Section 32 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, in
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 instructions
from the initial purchaser(s), or the designee thereof, and
such other information and documentation as the Paying
Agent/Registrar may reasonably require.
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,
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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 1987
Bond Date: Interest Rate: Stated Maturity:
April 15,1987
Registered Owner:
Principal Amount:
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
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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 Apri 1 15 and October 15
of each year commencing October 15, 1987. 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 shal 1 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 Agent/Registrar at the close of
business on the "Record Date," which is the last day of the
month next preceding each interest payment qate. 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 Mai 1, first class
postage prepaid, to the address of the registered owner
recorded in the Security Register on the Record Date or by such
other method, acceptable to the Paying Agent/ Registrar,
requested by, and at the risk and expense of, the registered
owner.
THIS BOND is one of the series specified in its title
issued in the aggregate principal amount of $7,000,000 (herein
referred to as the "Bonds") the purpose of 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 Apri 1 15, 1998, may
be redeemed prior to their Stated Maturities, at the option of
the City, on April 15, 1997, 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,
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
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principa 1 sum hereof 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 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 sha 11 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 charge 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 City'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
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
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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 upqn
which the liens, pledges, 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 limitations contained
in the Ordinance, may be transferred on the Security Register
only upon its presentation and surrender at the principal
office of the Paying Agent/Registrar, with the Assignment
hereon duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Paying Agent/Registrar
duly executed by, the registered owner hereof, or his duly
authorized agent. When a transfer on the Security Register
occurs, one or more new fully registered Bonds of the · same
Stated Maturity, of authorized denominations, bearing the same
rate of interest, and of the same aggregate principa 1 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 a 11 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
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
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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 mai 1 ing 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 t.he 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 sha 11 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.
COUNTERSIGNED:
City Secretary
(City Seal)
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CITY OF LUBBOCK, TEXAS
Mayor
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c. *Form of Registration Certificate of Comptroller
of Public Accounts to Appear on Initial Bond only.
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
(}
()
(}
()
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
REGISTER NO.
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.
* NOTE TO PRINTER: Do not print on Definitive Bonds.
this
(SEAL)
D.
WITNESS my signature and seal of office
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 registered 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:
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Texas Commerce Bank,
National Association
Lubbock, Texas
as Paying Agent/Registrar
By
Authorized Officer
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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
registration thereof,
premises.
the within Bond on the books kept for
with ful 1 power of substitution in the
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.
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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
headings "Interest
the name of the bond the Rate ______ " and "Stated
Maturity
"As Shown Below";
" shall both be completed --,,.------
(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:
YEAR
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PRINCIPAL
INSTALLMENTS
INTEREST
RATE
(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 Apri 1 15
and October 15 of each year, commencing October 15, 1987.
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 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)
additional
to issue
prescribed
The term "Additional Bonds" shall mean the
parity obligations the City reserves the right
in accordance with the terms and conditions
in Section 20 hereof.
(b) The term "Bonds" shall mean the $7,000,000 "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1987," dated April 15, 1987, 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 the twelve
month accounting period used by the City in connection
with the operations of the System which may be any twelve
(12) consecutive month period established by the City.
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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 1964, dated March 15, 1964, in the
original principal amount of $4,500,000;
(2) Series 1965, dated March 15, 1965, in the
original principal amount of $3,000,000;
(3) Series 1973, dated July 15, 1973, in the
original principal amount of $6,000,000;
(4) Series 1975, dated March 15, 1975, in the
original principal amount of $6,400,000;
(5) Series 1975-A, dated September 15, 1975, in
the original principal amount of $2,000,000;
(6) Series 1976, dated April 15, 1976, in the
original principal amount of $4,400,000;
(7) Series 1983, dated May 15,
original principal amount of
and
1983, in the
$10,770,000;
(8) Series 1984, dated April 15, 1984, in the
original principal amount of $10,000,000.
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(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
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 expenses of
operating and maintaining the System as set forth
herein in the definition "Net Revenues" and to
recover depreciation;
(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)
payable
secured
thereof.
any
from
by a
other
the
lien
legally incurred indebtedness
revenues of the System and/or
on the System or the revenues
SECTION 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
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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 Reserve Fund"
(hereinafter referred to as the "Bond Fund"), created and
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 sha 11 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, r,equi red
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 principal 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 principa 1 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.
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,..
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 the amount
required to fully pay and discharge all outstanding Bonds
Similarly Secured (principal and interest) or (ii) the Bonds
are no longer outstanding, i.e., the Bonds have been fully paid
as to principal and interest or all the Bonds have been
refunded.
Accrued interest and premium, if any, received f ram
the purchasers of the Bonds shall 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 principal 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 $2,705,965.91, which 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.
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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
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 al 1 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 irtto 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 provisions 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
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!',,, ...
Similarly Secured, the beneficial interest in which sha 11 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.
SECTION 19: Investment of Reserve Portion 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 :1otice
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:
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(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 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 Additional 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;
(d) 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 wi 11 be
outstanding upon the issuance of any series of Additional
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 shal 1 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.
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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.
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 will 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 a 11 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, sha 11
particularly include the following:
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(a) A detailed statement of the income and
expenditures of the System for such Fiscal Year;
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(b) A balance sheet as of the end of such Fiscal
Year;
(c) The Accountant• s comments regas;ding the manner
in which the City has compiled with the covenants and
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 the 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 annua 1
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
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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.
SECTION 24: Special Covenants. The City hereby
further covenants as follows:
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(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, shal 1 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, lease 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 will 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.
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(e) That the City will faithfully and
punctually perform all duties with respect to the
System required by the Constitution and laws of the
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 shall 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 other 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
Each of the Bonds herein authorized shall be
construed to be a "Security", and as such a
instrument, within the meaning of Article 8 of
Commercial Code.
Instruments.
deemed and
negotiable
the Uniform
In addition, the Mayor, Director 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
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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.
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 ~uch 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
destroyed, lost or stolen and replacement
been registered and delivered in lieu
provided in Section 30 hereof; and
mutilated,
Bonds have
thereof as
( 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 Regarding Tax Exemption of
Interest on the Bonds. Unless and until the City shall have
received a written opinion of counsel of nationally recognized
in the field of municipal bond law to the effect that failure
to comply with one or more of the following covenants will not
adversely affect any exemption from federal income tax of
interest on any Bond, the City agrees to comply with each of
the specific covenants in this Section.
(a) With respect to the Bonds and the facilities
financed or refinanced with such obligations, the City shall
not permit either the "Trade or Business Test" or the "Security
Interest Test", or both such tests, to be met.
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(1) Trade or Business Test.
Business Test is met if more than
The Trade or
10 percent of
to be used the proceeds of the Bonds are
(directly or indirectly) for any
business use" by any person other
governmental unit.
"private
than a
(2) Security Interest Test. The Security
Interest Test is met if the payment of the
principal of, or the interest on, more than 10
percent of the proceeds of the Bonds is (under
the terms of the Bonds or any under lying
arrangement) directly or indirectly-
(A) secured by any interest in -
( i) property used or to be used
for a private business use, or
(ii) payments in respect of such
property, or
(B) to be derived from payments
(whether or not to the City) in respect of
property, or borrowed money, used or to be
used for a private business use.
The term "private business use" means use (directly or
indirectly) in a trade or business carried on by a person other
than a governmental unit. For purposes of the preceding
sentence, use as a member of the general public shall not be
taken into account and any activity carried on by a natural
person shall not be taken into account. All activities of
section 50l(c)(3 organizations, the Federal Government
(including its agencies and instrumentalities), and other
nongovernmental persons who are not natural persons are treated
as trade or business activities.
(b) For purposes of the Trade or Business Test, a
person may be a user of bond proceeds and bond-financed
property as a result of (1) ownership or (2) actual or
beneficial use of property pursuant to a lease, a management or
incentive payment contract, or (3) any other arrangement such
as a take-or-pay or other output-type contract. Use on the
same basis as the general public (including use as an
industrial customer) is not taken into account. However, trade
or business use by all persons on a basis different from the
general public is aggregated in determining if the 10 percent
limit is met.
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(c) For purposes of the Trade or Business Test, use
pursuant to management contracts not exceeding five years
( including renewal options) is not treated as private business
use if -
(1) at least 50 percent of the compensation
to any manager other than a governmental unit is
on a periodic, fixed-fee basis;
(2) no amount of compensation is based on a
share of net profits; and
(3) the governmental unit owning the
facility may terminate the contract (without
penalty) at the end of any three ye~r period.
(d) For purposes of the Trade or Business Test,
"private business use" includes sales or exchanges of power
from th• Electric Light and Power System to private persons or
entities, excluding (i) exchanges in which such person or
entity is acting solely as a conduit for the exchange of power
with an electric utility which is owned and operated by a state
or local government, (ii) exchanges in which the amount of such
power provided and received is substantially equal over periods
of one year or less, the exchange arrangement does not involve
a take-or-pay, output, or similar arrangement, and the purpose
of the exchange is to enable the City and such person or entity
to satisfy differing peak load demands or to accommodate
temporary outages, and (iii) spot-sales, pursuant to a single
agreement of not more than 30 days duration, of excess power
capacity, except pursuant to a take-or-pay, output, or similar
arrangement.
(e) For purposes of the Security Interest Test, both
direct and indirect payments made by any person (other than a
governmental unit) who is treated as using the proceeds of the
Bonds are counted. Such payments are counted whether or not
they are formally pledged as security or are directly used to
pay debt service on the Bonds. Similarly, payments to persons
other than the City may be considered. Revenues from generally
applicable taxes are not treated as payments for purposes of
the security interest test; however, special charges imposed on
persons satisfying the use test (but not on members of the
public generally) are so treated if the charges are in
substance fees paid for the use of bond proceeds.
( f) No more than 5 percent of the proceeds of the Bonds
will be used for any private business use test that is not
related to any governmental use of such proceeds. For this
purpose, the term "related" means a use for a facility that is
located within or adjacent to any governmental facility to
which it is related.
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(g) No more than 5 percent of the proceeds of the Bonds
will be used for any private business use that is
disproportionate to the amount of such proceeds used for a
related governmental use. The determination of whether a
private use which is related to a government use also being
financed with the bond proceeds is disproportionate to the
government use to which such private use related is determined
by comparing the amount of bond proceeds used for the related
private and government uses. The related private use is
disproportionate to the related government use to the extent it
exceeds such use in amount. Multiple, related private use
facilities for any government use are treated as one facility
for purposes of this rule. ..
(h) The Trade or Business Test and Security Interest Test
are deemed to be met where 5 percent or more of the proceeds of
the Bonds are used with respect to any output facility (other
than a facility for the furnishing of water) and the amount of
proceeds so used exceeds the excess of -
(1) $15 million, over
(2) the aggregate amount of proceeds with
respect to all prior tax-exempt issues 5 percent
or more of the proceeds of which are or will be
used with respect to such output facility (or any
other facility which is part of the same project).
There shall not be taken into account under subparagraph (2)
above any bond which is not outstanding at the time of the
later issue or which is to be redeemed (other than in an
advance refunding) from the net proceeds of the later issue.
(i) The amount of proceeds of the Bonds which are to
be used directly or indirectly) to make or finance loans to
persons other than governmental units will not exceed the
lesser of (a) 5 percent of such proceeds or (b) $5 million.
(j) The City will not take any action which would
adversely affect the exemption from federal income taxation of
the interest paid on the Bonds, including without limitation
any action that would permit any of the Bonds to be treated as
"private activity bonds" within the meaning of sect ion 141 of
the Code, or as "federally guaranteed" within the meaning of
section 149(b) of the Code, and will take, or require to be
taken, such acts as may be reasonably within its ability and as
may from time to time be required under applicable law or
regulation to continue to exempt from federal income taxation
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the interest on the Bonds, including the preparation and filing
of any statements or information reports required to be filed
by the City in order to maintain the tax-exempt status of the
interest on the Bonds.
(k) The City has not taken, has no present intention
of taking any action and knows of no action taken or intended
which would cause interest on the Bonds to be includable in the
gross income of any bondholders for federal income tax purposes.
SECTION 29: Covenants Regarding Arbitrage. Unless
and until the City shall have received a written opinion of
counsel of nationally recognized in the field of municipal bond
law to the effect that failure to comply with one or more of
the following covenants will not adversely affect any exemption
from federal income tax of interest on any Bond, the City
agrees to comply with each of the specific covenants in this
Section .
. (a) A Rebate Fund is hereby established by the City.
Such Fund shall be for the sole benefit of the United States of
America and shall not be subject to the claim of any other
person, including without limitation the bondholders. The
Rebate Fund is established for the purpose of compliance with
section 148 of the Internal Revenue Code of 1986 (the "Code").
(b) At the close of each "Bond Year," the City shall
compute the amount of "Excess Earnings," if any, for the period
beginning on the date of delivery of the Bonds and ending at
the close of such "Bond Year" and transfer an amount equal to
the difference, if any, between the amount then in the Rebate
Fund and the Excess Earnings so computed. The term "Bond Year"
means with respect to the Bonds each one-year period ending on
the anniversary of the date of delivery of the Bonds. If, at
the close of any Bond Year, the amount in the Rebate Fund
exceeds the amount that would be required to be paid to the
United States of America under paragraph (d) below if the Bonds
had been paid in full, such excess may be transferred from the
Rebate Fund and paid to the City.
(c) In general, "Excess Earnings" for any period of
time means the sum of
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(i) the excess of --
(A) the aggregate amount earned during
such period of time on all "Nonpurpose
Investments" (including gains on the
disposition of such Investments) in which
"Gross Proceeds" of the issue are invested
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(other than amounts attributable to an
excess described in this subparagraph
(c) ( i)) over
(B) the amount that would have been
earned during such period of time if the
"Yield" on such Nonpurpose Investments
(other than amounts attributable to an
excess described in ths subparagraph (c)(i))
had been equal to the Yield on the issue,
plus
(ii) any income during such period of time
attributable to the excess described in
subparagraph (c)(i) above.
"Excess Earnings" will not include amounts, if any, which need
not be taken into account under the special rules of sect ion
148 ( f) ( 4) (A) and ( B) of the Code relating to bona fide debt
service funds and the six-month temporary investment period.
The terms "Nonpurpose Obligations,•• "Gross Proceeds" and
"Yield" shall have the meanings prescribed by section 148 of
the Code and shall be applied in the manner prescribed in such
section.
(d) The City shall pay to the United States of
America at least once every five-years an amount that ensures
that at least 90 percent of the Excess Earnings from the date
of delivery of the Bonds to the close of the period for which
the payment is being made will have been paid. The City shall
pay to the United States of America not later than 60 days
after the Bonds have been paid in full 100 percent of the
amount then required to be paid under section 148(f) of the
Code as a result of Excess Earnings.
(e) The City shall keep such records as will enable
the City to fulfill its responsibilities under this section and
section 148(f) of the Code and shall retain such records for at
least six years following the final payment of principal and
interest on the Bonds.
(f) The City will not use any portion of the proceeds
of the Bonds directly or indirectly to acquire "higher yielding
investments," or to replace funds which were used directly or
indirectly to acquire "higher yielding investments." The term
higher yielding investments means any investment property { as
defined in section 148(b)(2) of the Code) which produces a
yield over the term of the issue which is materially higher
than the yield on the Bonds (as defined above). The foregoing
limitation on higher yielding investments shall not apply to --
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(1) proceeds of the Bonds invested for a
reasonable temporary period of 3 years or less
until such proceeds are needed for the purpose
for which the bonds are issued,
(2) amounts invested
bona fide debt service
earnings on such fund are
any bond year, and
in the Bond Fund (a
fund) if the gross
less than $100,000 in
( 3) amounts deposited in the Reserve Fund
allocated to the Bonds not in excess of 10
percent of the proceeds of the Bonds.
( g) The City covenants to restrict the use of the
proceeds of the Bonds in such manner and to such extent, as may
be necessary, so that the Bonds will not constitute arbitrage
bonds under section 148 'Of the Code and, to the extent
applicable, section 149(d) of the Code (relating to advance
refundings). Any authorized representative of the City having
responsibility with respect to the issuance of the Bonds is
authorized and directed, alone or in conjunction with any other
official, employee or consultant of the City to give an
appropriate certificate on behalf of the City, for inclusion in
the transcript of proceedings for the Bonds, setting forth the
facts, estimates and circumstances and reasonable expectations
pertaining to section 148 of the Code and, to the extent
applicable, section 149(d) of the Code.
(h) The requirements of this Section are subject to,
and shall be interpreted in accordance with section 148 of the
Code and any regulations which may be issued thereunder.
(i) The City shall not, at any time prior to the
final Stated Maturity of the Bonds, enter into any transaction
that reduces the amount required to be paid to the United
States pursuant to 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.
(j) The City's payment of rebate to the United
States is additional consideration for the purchase of the
Bonds by the initial purchasers thereof and the loan of money
represented thereby, and is for the purpose of preserving the
exemption from federal income taxation of interest on the Bonds.
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SECTION 30: 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
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 made of any such deposit which would cause the Bonds to be
treated as arbitrage bonds within the meaning of section 103(c)
of the Internal Revenue Code of 1986.
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(d) That notwithstanding any other provisions 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 31: 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
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 32: 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.
(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 applicant shall furnish to
the City and to the Paying Agent/Registrar evidence to their
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satisfaction of
as the case may
a Bond, the
Agent/Registrar
mutilated. ·
the loss, theft, or destruction of such Bond,
be. In every cause of damage or mutilation of
applicant shall surrender to the Paying
for cancellation the Bond so damaged or
(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 connection
therewith. Every replacement bond issued pursuant to the
provisions of this Section by virtue of the fact that any Bond
is lost, 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 Section 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 effect, as provided in the Ordinance for Bonds issued
in conversion and exchange for other Bonds.
SECTION 33: 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
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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 34: Confirmation of Sale. That sale of
the Bonds to Prudential-Bache Securities Inc. and Associates at
the price of par, accrued interest, plus a premium of -o-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 35: 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
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 36: Approval of Official Statement. That
the form and substance of the Official Statement dated
March 26, 1987, 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 37: 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
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opinion on the reverse side of each of the Bonds, with an
appropriate certificate pertaining thereto, is hereby approved
and authorized.
SECTION 38: 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 39: 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, any right, remedy, or claim, legal or equitable,
under or by reason of this Ordinance or any provision hereof,
this Ordinance and all its provisions being intended to be and
being for the sole and exciusive benefit of the City, the
Paying Agent/Registrar; Bond Attorneys for the City and the
Bondholders.
SECTION 40: Inconsistent Provisions. All
ordinances, orders or resolutions, or parts thereof, which are
in conflict or inconsistent with any provision of this
Ordinance are hereby repealed to the extent of such conflict
and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.
SECTION 41: 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 42: Severability. If any prov1s1on of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless
be valid, and this governing body hereby declares that this
Ordinance would have been enacted without such invalid
provision.
SECTION 43: 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.
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SECTION 44: 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 the 23rd day
of April, 1987.
PASSED AND APPROVED ON SECOND AND FINAL READING, this
24th day of April, 1987.
CITY OF LUBBOCK, TEXAS
Mayor
ATTEST:
~ ~ Cityretary
(City Seal)
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I 7 8 l D
,1 . '·
,,... THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
GENERAL CERTIFICATE
§
§
§
§
§
We, the undersigned, Mayor, City Secretary, and
Assistant City Manager for Financial Services, respectively, of
the City of Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. Relative to No-Default.
That the City of Lubbock, Texas, is not in default as to
any covenant, condition or obligation contained in the
ordinances authorizing the issuance of City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1965,
dated March 15, 1965; Series 1973, dated July 15, 1973; Series
1975, dated March 15, 1975; Series 1975-A, dated September 15,
1975; Series 1976, dated April 15, 1976; City of Lubbock,
Texas, Electric Light and Power System Refunding Revenue Bonds,
Series 1983, dated May 15, 1983; and City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1984,
dated April 15, 1984, and that there is on hand in the Special
Electric Light and Power System Revenue Bond Retirement and
Reserve Fund 0ertaining to the aforesaid obligations_the sum of
$ ,2.. l1 ?(;. ,p, (t)(,,.t< 7 f h • h t th f $ .:L-70.:!:,,,,, ..;;._,s-' q I ~11 7,s/peu:;.,&? , o w 1c amoun e sumo tiG..,tt~94 4q1
represents the reserve portion thereof.
2. Relative to Nonencumbrance.
Save and except for the pledge of the income and
revenues of the City• s Electric Light and Power System to the
payment of principal and interest to become due with respect to
the outstanding •city of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1965, dated March 15, 1965;
Series 1973, dated July 15, 1973; Series 1975, dated March 15,
1975; Series 1975-A, dated September 15, 1975; Series 1976,
dated Apri 1 15, 1976; City of Lubbock, Texas, Electric Light
and Power System Refunding Revenue Bonds, Series 1983, dated
May 15, 1983; and City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1984, dated April 15, 1984,
and the proposed •city of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1987• dated April 15, 1987,
said income and revenues of said System have not been pledged
or hypothecated in any other manner or for any other purpose;
and the above obligations evidence the only liens, encumbrances
or indebtedness of said System or against the income and
revenues of such System.
• ., '
3. Relative to Income and Revenues.
The following is a schedule of the gross
operating expenses and net revenues of the City's
Light and Power System for the years stated:
Fiscal Year
Ending 9-30
1982
1983
1984
1985
Gross
Receipts
Operating
Expenses
receipts,
Electric
Net
Revenues
8,356,911
9,246,931
8,834,003
9,787,683
1986
41,689,735
46,415,596
45,651,224
46,070,569
45,862,720
33,332,824
37,168,665
36,817,221
36,282,886
33,391,266 12,471,454
4. Relative to Utility Properties.
The electric light and power utility properties owned,
operated and maintained by the City currently . provides
electricity to approximately 41,759 customers. ·
As of the date hereof, no question is pending and no
proceedings of any nature have been instituted in any manner
questioning the City"s right and title to its utility
properties or its authority to operate the same.
5. Relative to Rates and Charges.
The current monthly rates and charges for services
provided by the City's Electric Light and Power System are as
shown in Exhibit A attached hereto and incorporated herein by
reference and made a part of this certificate for all purposes.
6. Relative to City Officials.
Certain duly qualified and acting officials of the City
are as follows:
B.C. McMINN
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
RANETTE BOYD
MAYOR
CITY MANAGER
ASSISTANT CITY MANAGER FOR
FINANCIAL SERVICES -CITY
TREASURER
CITY SECRETARY
7. Relative to Incorporation.
That the City of Lubbock, Texas, is incorporated under
the general laws of the State of Texas and is operating under
the Home Rule Amendment to the Texas Constitution, Sect ion s,
Article XI, as amended in 1912; that the City Charter was
-2-ZOZ60
adopted at an election held for that purpose on the
December, 1917, and said Charter has not been
revised in any respect since January 24, 1967, the
last Charter Amendment election.
27th day of
amended or
date of the
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF LUBBOCK,
TEXAS, this the 23rd day of April, 1987.
(City Seal)
2026D
Mayor, 'cityof
Lubbock, Texas
~it~~~yof
Lubbock, Texas
ii-~~~~, Assistant City Managr
-3-
for Financial Services
City of Lubbock, Texas
., •'
EXHIBIT A
ELECTRIC RA TES
Electric rates in the City are set by City Council Ordinance and are the same for Lubbock Power and
Light and Southwestern Public Service except for church, school and municipal rates, and minor variations
in billing policies, and South Plains Electric Cooperative customers. The present rates went into effect on
February 15, 1986, and are set forth below; the territory for all rates is Lubbock, Texas.
Rates for Service Furnished in City ••• Rates to be charged for electric service furnished within the City
shall be in accordance with orders or resolutions of the City Council establishing such rates for all persons
engaged in furnishing such electric power service to the public including electric power furnished by the
City's electric power company. Said orders and resolutions establishing rates shall be kept available for
public inspection.
Fuel Cost Recovery
. The charge per kilowatt hour shall be increased by a fuel factor per kilowatt hour as provided in current
Southwestern Public Service Tariff 7100 (Public Utility Commission of Texas sheet IV-69). The fuel
factor will remain constant for approximately one year. At this time the fuel factor is $0.025710/kWh.
All rates shown below are subject to fuel cost recovery.
Tax Adjustment
Billings under these schedules may be increased by an amount equal to the sum of the taxes payable under
federal, state and local sales tax acts, and of all additional taxes, fees, or charges (exclusive of ad
valorem, state and federal income taxes), payable by the utility and levied or assessed by any
governmental authority on the public utility services rendered, or on the right or privilege of rendering
the service, or on any object or event incidental to the rendition of service, as the result of any new or
amended laws after June 30, 1985. AU rates shown below are subject to tax adjustment where applicable.
Residential Service
Applicable; To residential customers for electric service used for domestic purposes in private residences
and separately metered individual apartments. Single phase motors not to exceed IO horsepower,
individual capacity, may be served under this rate,
Terms of Payment: 2% discount deducted from all residential bills if paid within 1.5 days after mailing
date. 5% added to bill after 30 days.
Rate: Service Availability Charge: $.5.00 per month; all kWh used per month at 4.28¢ per kWh.
Electric Living Service
Water Heating: When customer has in regular use a permanently installed 240 volt, 30 gallon or greater,
storage type water heater of not greater than 5.5 kilowatts, individual rated capacity, the first .500 kWh
will be billed at the regular rate, the next .500 kWh at 1.72¢ per kWh, and all additional kWh at the regular
rate.
All-Electric Space Heating: When customer has in regular use permanently installed space heating
equipment of an aggregate rated capacity of 3 kilowatts or more, excluding bathroom heaters, billing
during the winter months will be the first 500 kWh at the regular rate, and all additional kWh at .91¢ per
kWh. When customer has water heating in combination with all-electric space heating, the first 500 kWh
will be billed at the regular rate, the next .500 kWh at 1.72¢ per kWh and all additional kWh at .91¢ per
kWh.
Add-On Heat Pump: When customer has in regular use a permanently installed heat pump used as the
primary heat source for the entire residence in conjunction with a gas or oil fired furnace for extreme
cold weather back-up, billing during the winter months will be the first 600 kWh at the regular rate and
all additional kWh at .91¢ per kWh. When customer has water heating in combination with the add on heat
pump, the first 500 kWh will be billed at the regular rate, the next .500 kWh at 1.72¢ per kWh and all
additional kWh at .91¢ per kWh.
For heat pump installation, the rated capacity shall be determined by adding the rated capacity of the
heat pump (l ton per kilowatt) and 1/2 of the rated capacity of any auxiliary heating elements used in
conjunction with the heat pump.
The rated capacity of space heating equipment may be measured by Lubbock Power and Light.
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Winter Months: The billing months of November through April.
Averaged Billing Plan: Upon request, any customer whose average monthly bill is $2.5.00 or more, may be
billed monthly, based upon his average bill (estimated if applicable), plus a portion of any unbilled balance.
All-electric home customers will be billed hereunder, unless regular billing is requested. Customers
having delinquent or disputed bills are not eligible for billing under this plan.
Character of Service: A-C; 60 hertz; single phase 120/240 volts; where available on secondary, three
phase 240 volts.
General Service
Applicable; To all commercial and industrial electric service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served. Water heating and space heating service will
be furnished in conjunction with the standard Heating Rider.
Not applicable to temporary, breakdown, standby, supplementary, or to service for which a specific rate
schedule is provided.
Rate:
Service availability charge
First 1,000 kWh per month
Next 6,000 kWh per month
Next 6,000 kWh per month
All additional kWh per month
$14.00 per month
@ 5.65¢ per kWh*
@ 2,.51¢ per kWh
@ l.25¢ per kWh
@ • .5.5¢ per kWh
* Add to the .5.6.5¢ block 200 kWh for every kW of demand in excess of l O kW.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Demand: The company will furnish at its expense the necessary metering equipment to measure the
customer's kW demand for the 30-minute period of greatest use during the month.
Character of Service: A-C; 60 hertz; single or three phase.
Minimum Charge: $14.00 per month for demands of 10 kW or less, plus $3 • .50 per kW for next 1.5 kW above
1 O kW, plus $2.30 per kW for all additional kW. No demand shall be taken as less than .50% of highest
demand established in 12 months ending with current month.
Heating Rider
Applicable: To customers taking service under the Company's General Service, Public and Parochial
School Service or Municipal Lighting and Power Service rates.
Water Heating Service: When customer has in regular use one or more permanently installed 30 gallons or
greater storage type water heaters of not greater than 5 • .5 kilowatts, individual rated capacity, the first
200 kWh per water heater will be billed at the regular rate, the next 300 kWh per water heater will be
billed at 1.72¢ per kWh, and all additional kWh at the regular rate.
When customer has in regular use one or more approved, permanently installed storage type water heaters
of greater than .5 • .5 kilowatts, individual rated capacity, the first 200 kWh for each .5 kilowatts of rated
capacity will be billed at the regular rate, the next 300 kWh for each 5 kilowatts of rated capacity will be
billed at 1.72¢ per kWh, and all additional kWh at the regular rate.
The demand for billing purposes wiU be the measured kW demand less 7.596 of the rated capacity of the
first water heater and .5096 of the rated capacity of all additional water heaters, but not less than 7 596 of
the measured kW demand.
Flow-through water heaters and other high wattage water heating devices wiJl be billed at the regular
rate.
All-Electric Space Heating Service: When customer has in regular use permanently installed space
heating equipment, including hot water systems, of an aggregate rated capacity of .5 kilowatts or more,
billing during the winter months under the regular rate will not exceed the average kW demand and kWh
consumption established during the first preceding billing months of May and October. Additional demand
will not be biHed. Additional kWh used per month will be billed at .91¢ per kWh.
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Add-On Heat Pump Service: When customer has in regular use a permanently installed heat pump used as
the primary heat source for the entire building in conjunction with a gas or oil fired furnace for extreme
cold weather back-up, billing during the winter months under the regular rate will not exceed the average
kW billing demand and kWh consumption established during the first preceding billing months of May and
October. Additional demand will not be billed. Additional kWh used per month will be billed at .91¢ per
kWh.
Winter Months: The billing months of November through April.
Terms of Payments: Same as applicable rate schedule.
Character of Service: A-C; 60 hertz; at one available standard voltage of 240 volts or greater.
Municipal Lighting and Power Service
Applicable: To municipal general lighting and power service except for street lighting service.
Rate: All kWh used per month at 3.2460¢ per kWh.
Irrigation Power Service
Applicable: Under contract, to irrigation power customers when the connected motor load is not less than
.5 h.p.
Rate: All kWh used per month at .5.19¢ per kWh.
Terms of Payment: Net in 30 days after mailing date; .5% added to bill after 30 days.
Character of Service: A-C; 60 hertz; three phase; at one available standard voltage.
Term of Contract: One year or longer.
Minimum Charge: $24.00 per connected h.p. per season (name-plate rating), excluding fuel cost recovery
revenue.
Public and Parochial School Service
Applicable: To public and separately metered parochial schools for lighting and power service. All
metering locations for each customer shall be combined for billing purposes.
Rate:
First 10,000 kWh used per month
Next 20,000 kWh used per month
Next 30,000 kWh used per month
Additional kWh used per month
@ 4,7969¢ per kWh
@ 4.3469¢ per kWh
@ 4.0469¢ per kWh
@ 3.6269¢ per kWh
Large General Service
Applicable: To all commercial and industrial electric service supplied where facilities of adequate
capacity and suitable voltage are adjacent to the premises to be served. Not applicable to temporary,
breakdown, standby, or supplementary service.
Territory: Lubbock, Texas.
Rate:
Demand Charge:
Energy Charge:
$2,089.00 for the first 200 kW, or less of demand per month
$ 10.17 per kW for all additional kW of demand per month
,.5.5¢ per kWh for the first 230 kWh used per month per kW of demand, or the first
120,000 kWh used per month, whichever is greater
.41¢ per kWh for the next 230 kWh used per month per kW of demand
,33¢ per kWh for all additional kWh used per month
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Terms of Payment: Net in JO days after mailing date; 5% added to bill after 30 days._
Determination of Demand: The kW determined from Lubbock Power and Light's demand meter for the 30-
minute period of customer's greatest kW use during the month, but not less than 6096 of the highest
demand established in the preceding eleven months.
Power Factor Adjustment: Bills computed under the above rate will be increased $0.2.5 for each kvar by
which the reactive demand exceeds, numerically, 0 • .53 times the measured kW demand, and will be
reduced $0.2.5 for each kvar by which the reactive demand is less than, numerically, 0.40 times the
measured kW demand.
Primary Service Discount: A discount of 3% of the demand charges, energy charges (excluding all fuel
cost recovery amounts), and power factor adjustment charges will be allowed w'1en service is supplied at a
line voltage of 12 kV, or greater, and no transformation is made by Lubbock Power and Light at the
customer's location.
Character of Service: A-C; 60 hertz.
Contract Period: A period of not less than one year.
Minimum Charge: The Demand Charge.
Electric Heating Service
Applicable: To residential and commercial customers for water heating and/or space heating service,
including resistance heating, radiant heating and heat pumps, when all heating service is supplied through
one kilowatt hour meter, which must be separate from the meter which measures the energy.
Water Heating Rate (Tariff No. 1.4): AH kWh used per month at 1.72¢ per kWh.
Tariff Number: 1 • .5.
Space Heating Rate (Tariff No. 1,.5): Winter months: all kWh used per month at .91¢ per kWh, except that
the first .500 kWh used per month through the heating meter will be billed at 1. 72¢ per kWh when customer
has an electric water heater installed and in use.
Summer months: all usage each month shall be combined and billed under the applicable residential or
commercial rate.
Winter Months: The billing months of November through April.
Summer Months: The billing months of May through October.
Terms of Payments: Residential -2% discount will be deducted from bills if paid within 1.5 days of
mailing date; a .5% penalty will be added to bills after JO days. Commercial -net in 30 days after mailing
date; a .5% penalty will be added after JO days.
Conditions and Regulations: Water heating equipment served on this rate shall be of insiJlated storage
type bearing the approval of the Underwriter's Laboratories, Inc., and shall have a demand of not greater
than .5 • .5 kilowatts, individual capacity. Space heating equipment and the installation of the equipment
shall be subject to the approval of the supplying utility. To be eligible for the ,91¢ space heating rate, a
customer must have permanently installed and in regular use space heating equipment having a total
connected load of not less than .5 kilowatts.
Character of Service: The voltage and characteristics of equipment applied shall meet requirements of
the supplying utility.
Street Lighting Service
Applicable: To municipal street lighting service.
~: All kWh used per month at J,2269¢ per kWh.
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Oil Well Pumping Service
Applicable: Under contract, to power customers for oil well pumping, including incidental lighting and
small power loads required by customer in lease operation.
All locations in one field are to be combined and billed together.
Rate: Service Availability Charge: $11.43 per meter per month; 2.71¢ per kV.'h for all kWh used per
month.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 d~ys.
Character of Service: A-C; 60 hertz; three phase; at Lubbock Power and Light's available primary
voltage.
Power Factor: The customer agrees to maintain an average power factor of at least 80%.
Terms of Contract: One year, or longer.
Minimum Charge:
$20 per month on each meter for secondary voltage metering.
$50 per month on each meter for primary voltage metering.
Industrial Feed Mill and Elevator Service
Applicable: Under contract, to all electric energy used for the operation of industrial feed mills and grain
elevators. AU industrial feed mill and elevator customers are to be served under this rate schedule,
except that customers having a measured demand of 200 kW, or greater, may be served under the large
general service rate.
Not applicable to temporary, breakdown, standby, or supplementary service.
Rate: Service Availability Charge -$16.00 per month.
First 1,000 kWh used per month
Next 6,000 kWh used per month
Next 11,000 kWh used per month
All additional kWh used per month
@ 6.26¢ per kWh*
@ 3.91¢ per kWh
@ 2.79¢ per kWh
@ 1.68¢ per kWh
* Add to the 6.26¢ block, 145 kWh for each kW of demand in excess of 10 kW.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Demand: The kW demand from the Company's demand meter for the 30-minute period of customer's
greatest use during the month.
Character of Service: A-C; 60 hertz; single or three phase.
Minimum Charge: $17.91 for the first 10 kW, or less, plus $3.50 per kW for next 15 kW, above 10 kW, plus
$2.30 per kW for all additional kW of highest demand established in twelve months ending with current
month.
Term of Contract: A period of not less than one year.
Cotton mn Service
Applicable: Under contract, to all electric energy used for the operation of cotton gins and de-linters,
whether partially or completely electrified. Cotton gins are not to be served under any rate schedule not
specifically designated for such service.
Not applicable to temporary, breakdown, standby, or supplementary service.
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Rate: Service Availability Charge -$21.60 per month,
First 1,000 kWh used per month
All additional kWh used per month
@ 8.06¢ per kWh*
@ 3.68¢ per kWh
* Add to the 8.06¢ block, 120 kWh for each kW of demand in excess of 10 kW.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Demand: The kW demand for Lubbock Power and Light's demand meter for the 30 minute period of
customers greatest use during the month.
Character of Service: A-C; 60 hertz; single or three phase.
Term of Contract: A period of not less than one year.
Minimum Charge: $25 • .50 per year per kW of demand established during the contract year, but not less
than $307.00,
Guard Light Service
Applicable: Under contract to all night outdoor lighting service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served.
Rate: Each 1.51000 lumen high pressure sodium, wood pole, overhead bracket type light for $9.32 per month.
Each 9,.500 lumen high pressure sodium, wood pole, overhead bracket type light for $7 .62 per month.
Each 7,000 lumen mercury vapor, wood pole, overhead bracket type light for $7.62 per month.
One span of secondary line not exceeding 150 feet in length may be furnished under the above rate.
Service requiring more than one span of secondary line per light will be furnished by the Company,
provided the customer pays a rental charge of $2.00 per month for each additional span not exceeding 150
feet in length.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Conditions of Service: Lubbock Power and Light will construct, own, operate, and maintain on the
customer's premises, the required number of overhead lights, mounted on Lubbock Power and Light's
service pole, a separate 30 foot pole, or installed on any suitable mounting device belonging to the
customer and having a secondary line span not exceeding 150 feet in length. Lights will not be installed
on any mounting device which, in the opinion of Lubbock Power and Light, is unsafe or not suitable for
this purpose.
Character of Service: A-C; 60 hertz; single phase; 120 volts.
Billings
Customers of Lubbock's Electric Department and Water Department are billed simultaneously on one
statement. Garbage and sewer charges are also included, A 2% discount is given to residential electric
customers who pay their bill within 15 days of the date it is mailed to them. All water and electric
customers who do not pay their water and electricity bill within 30 days of the date it is mailed to them
are charged a 596 late payment penalty. If the bill has not been paid on the next billing date, a statement
is mailed showing the past due bill together with the current bill. If the bill remains delinquent 1.5 days
after the date of the second statement, a cut-off notice is mailed. The cut-off notice specifies that
service will be discontinued in 5 days if payment in full is not made. At the end of the 5-day period, a
collector calls on the customer and if he is unable to collect payment, water and electric service is cut
off. The reconnection charge is $15.00 before 5:00 p.m. and $25.00 after 5:00 p.m. and during weekends
and holidays.
-17 -
REPORT OF CERTIFIED PUBLIC ACCOUNTANT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
I, the undersigned, of the firm of Mason, Warner &
Company, Certified· Public Accountants, Lubbock, Texas, DO
HEREBY MAKE the following report:
1. That the total gross revenues, operation and
maintenance expenses, and net revenues from the operation of
the Electric Light and Power System of the City of Lubbock,
Texas (the "City•), for the fiscal year ending September 30,
1986, as shown by the City's financial records, are as follows:
Gross
Revenues
$45,862,720
Maintenance and
Operation Expenses
$33,391,266
Net
Revenues
$12,471,454
2. That, based on the audit of the financial records
of the City• s Electric Light and Power System for the fiscal
year ending September 30, 1986, the net revenues of said Power
System are equal to at least one and one-half (1-1/2) times the
average annual principal and interest requirements of all bonds
which will be secured by a first lien on and pledge of the net
revenues of the System which will be outstanding after the
issuance of the proposed "CITY OF LUBBOCK, TEXAS I ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1987" dated
April 15, 1987, and, further that said net revenues are 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 aforesaid Series 1987
Bonds.
MASON, WARNER & COMPANY
Certified Public Accountants
I 9 7 8 D
CERTIFICATE
THE STATE OF TEXAS
COUNTY OF·.LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
We, the undersigned, Mayor, Deputy City Secretary and
Assistant City Manager for Financial Services, respectively, of
the City of Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. Nonencumbrance:
Save and except for the pledge of the income and
revenues of the City• s Electric Light and Power System to the
payment of principal and interest to become due with respect to
the outstanding and unpaid "City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds, Series 1973 • dated July
15, 1973, currently outstanding in the principal amount of
$1,800,000; "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1975" dated March 15, 1975,
currently outstanding in the principal amount of $2,560,000;
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1975-A" dated September 15, 1975,
currently outstanding in the principal amount of $900,000;
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 197611 dated April 15, 1976, currently
outstanding in the principal amount of $2,200,000; "City of
Lubbock, Texas, Electric Light and Power System Refunding
Revenue Bonds, Series 1983" dated May 15, 1983, currently
outstanding in the principal amount of $7,930,000; "City of
Lubbock, Texas, Electric Light and Power System Revenue Bonds,
Series 1984" dated April 15, 1984, currently outstanding in the
principal amount of $8,500,000; and the proposed "City of
Lubbock, Texas, Electric Light and Power System Revenue Bonds,
Series 198711 dated April 15, 1987, in the principal amount of
$7,000,000, said income and revenues of said System have not
been pledged or hypothecated in any other manner or for any
other purpose; and the above obligations evidence the only
liens, encumbrances or indebtedness of said System or against
the income and revenues of such System.
2. No Petition:
No petition, signed by 10\ of the qualified
voters of the City, has been presented to the office of the
City Secretary or other officials of the City protesting the
issuance of the proposed "City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds, Series 198711 dated April
15, 1987.
,..
,.. '
3. Fund Maintenance:
All interest, sinking and revenue funds of the
City have been fully maintained in accordance with the
provisions of the ordinances authorizing the issuance of the
"City of Lubbock, Texas, Electric Light and Power Revenue
Bonds, Series 1973" dated July 15, 1973; Series 1975 dated
March 15, 1975; Series 1975-A dated September 15, 1975; Series
1976 dated April 15, 1976; Series 1984 dated ·Apri 1 15, 1984;
and "City of Lubbock, Texas, Electric Light and Power System
Refunding Revenue Bonds, Series 1983" dated May 15, 1983; and
there is on hand in the special funds created ~or the payment
and security of the aforesaid obligations the amounts now
required to be on deposit therein.
WITNESS OUR HANDS AND SEAL OF THE CITY OF LUBBOCK,
TEXAS, this the 18th day of May, 1987.
(SEAL)
2 I 4 7 D
Deputy City Secretary, City of
Lubbock, Texas
Q~~<UL t)(ssistant City Managerf r
Financial Services
City of Lubbock, Texas
-2-
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CERTIFICATE AS TO TAX EXEMPTION
The undersigned, being the duly chosen and qualified
Assistant City Manager and Secretary of the City of Lubbock,
Texas (the "Issuer"), hereby certify with respect to CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS,
SERIES 1987, in the principal amount of $7,000,000.00 (the
"Bonds"), as follows:
A. General.
1. We, along with the other officers of the Issuer,
are charged with the responsibility for issuing the Bonds.
2. This certificate is made pursuant to Sections 103
and 141 through 150 of the Internal Revenue Code of 1986, as
amended to the date hereof (the "Code"), and Treasury
Regulations Sections 1.103-13, 1.103-14, and 1.103-15 (the
"Regulations").
3. This certificate is based on the facts and
estimates described herein in existence on this date, which is
the date of delivery of the Bonds to and payment for the Bonds
by the initial purchasers thereof, and, on the basis of such
facts and estimates, the Issuer expects that the future events
described herein will occur.
4. The Issuer has never been disqualified by the
Commissioner of Internal Revenue from certifying an issue of
its obligations pursuant to Section l.103-13(a) (2) (iv) of the
Regulations, has never been listed in a notice of
disqualification in the Internal Revenue Bulletin, and has
never been advised that such a disqualification is contemplated.
B. Purpose and Size.
1. The Bonds are being issued pursuant ·to Ordinance
No. <;'<248' of the Issuer, adopted by the City Council of the
Issuer on April 24, 1987, (hereinafter referred to as the
"Ordinance") to finance the Issuer"s estimated acquisition and
construction costs of various capital improvements and
extensions to the Issuer• s existing Electric Light and Power
System (the "System") as more fully described in Exhibit A
attached hereto (the "Projects"). Terms used and not defined
herein have the same meaning given to them in the Ordinance.
·•
L_
2. The Issuer's System is owned, operated, and
maintained by the Issuer, and the Issuer has not contracted in
any manner with any company, firm or other person or entity to
operate and/or maintain the System or part of any of it, for
and on behalf of . the Issuer. The Issuer does not expect to
enter into any contract for the operation, maintenance or
management of the System or part of any of it.
3. There is not, and as of the date hereof the
Issuer does not anticipate entering into, any lease, contract
or other understanding or arrangement, such as a take-or-pay
contract or output contract, with any person other than a state
or local governmental unit pursuant to which the Issuer expects
that proceeds of the Bonds, or the facilities financed
therewith, will be used in the trade or business of such person
(including all activities of such persons who are not
individuals).
4. The Issuer has not entered into, and as of the
date hereof the Issuer does not anticipate entering into, any
contract for the sale of electric light and power.
5. The Bonds are not "private activity bonds" as
that term is defined in section 14l(a) of the Code.
6. The amounts received from the sale of the Bonds,
when added to the amounts expected to be received from the
investment thereof, do not exceed the amounts required to pay
the costs of the Projects and of issuing the Bonds.
7. No proceeds received from the sale of the Bonds
or amounts received from the investment thereof will be used to
pay the principal of or interest on· any presently outstanding
issue of Bonds or other similar obligations of the Issuer other
than the Bonds.
C. Source and,Disbursement of Funds.
1. The Bonds are being issued and delivered to the
purchaser thereof (the "Initial Purchaser") on the date hereof
upon payment of the agreed purchase price of $7,000,000.00,
plus original issue premium of$ -o-, plus accrued
interest thereon.
2. The amounts received from the purchaser of the
Bonds representing accrued interest and premium are being
deposited on the date hereof in the Special Electric Light and
Power System Revenue Bond Retirement and Reserve Fund (the
-2-0 6 9 l L
"Bond Fund") for the Bonds to be used to pay t,he first payment
of interest to become due on the Bonds on October 15, 1987.
3. Approximately $6,950,000 of the proceeds from the
sale of the Bonds is to be deposited in separate accounts of
the Issuer (the "Construction Funds") and will be used to pay
costs of the Projects. Costs of issuance relating to the
Bonds, which are expected to be approximately $50,000, will be
paid by the Issuer out of bond proceeds. The Issuer estimates
that $ 77~'2<2<2-~in income and profit wi 11 be received from the
investment of the amounts deposited to the Construction Funds
pending the disbursement of such amounts for the governmental
purposes for which the Bonds are being used. Except to the
extent required to be paid over to the United States pursuant
to Section 29 of the Ordinance, all of such income and profit
will be used to pay any cost overruns on the Projects or if
there are none, deposited to the Bond Fund and used to pay
principal of and interest on the Bonds within one year of
receipt.
D. Temporary Periods and Time for Expenditures.
1. Within six months from the date hereof, the
Issuer will have incurred binding obligations or commitments in
the amount of the lesser of $100,000.00 or 2-1/2\ of the
proceeds attributable to each of the Projects to be financed by
the Bonds by entering into contracts for construction,
architectural services, engineering services, land acquisition,
site development, construction materials, or the purchase of
equipment.
2. After entering into said contracts, work on the
construction or acquisition of each of the Projects will
proceed with due diligence to completion.
3. The Issuer expects
proceeds of the Bonds, together
investment thereof, except for
Reserve Fund, will be _spent by not
E. Reserve Fund.
that all of the original
with any earnings from the
amounts on deposit in the
later than Bes.11-199'2 >
1. The Issuer is required by the Ordinance to
maintain the Reserve Portion of the Bond Fund during the term
of the Bonds for the purpose of accumulating and maintaining
funds as a reserve for the payment of the Previously Issued
Bonds in an amount (the "Required Reserve") equal to an amount
not less than the average annual requirement (calculated on a
Fiscal Year basis) for the payment of principal of and interest
(or other similar payments) on all outstanding Bonds Similarly
Secured after giving effect to the issuance of the
-3-0 6 9 l L
,...
Bonds, which amount is equal to $ ..2..,S-'~S3b .oo . This amount
will be funded from the current balance on deposit in the
Reserve Portion of the Bond Fund for all the Previously Issued
Bonds of $.:Z..., ?tt>.s,,9&:,S.91 , composed of cash and securities
valued at market on April, 23, 1987. The Issuer has been
advised by First Southwest Company, financial advisor to the
Issuer, that a reserve fund balance of that amount (the
"Required Reserve") was required in order to market the Bonds
at the interest rates set forth in the Ordinance authorizing
the Bonds, and for the purchase price set forth on the Initial
Purchaser's Certificate attached as Exhibit B, and that funding
a reserve fund for a lesser amount would have resulted in a
less favorable rating with respect to the Bonds and sale of the
Bonds at materially higher interest rates or for a materially
lower purchase price to the Issuer. Upon delivery of the Bonds
the Issuer will transfer to the System Fund all amounts which
are in excess of the Required Reserve.
2. Of the aggregate amounts on deposit in the
Reserve Portion of the Bond Fund, 14. 9733\, or $.38tJ1.2.Sl,l-'5 , is
allocated to the Bonds on the basis of the original principal
amount of the Bonds and the Previously Issued Bonds. The
amount on deposit in the Reserve Portion of the Bond Fund and
allocated to the Bonds at all times will be an amount not in
excess of the least of (i) the maximum annual debt service
requirement on the Bonds, (ii) 125\ of the average annual debt
service requirements on the Bonds, or (iii) 10\ of the original
proceeds of the Bonds.
3. The Ordinance provides that any amounts held for
the credit of the Reserve Portion of the Bond Fund in excess of
the Required Reserve may be withdrawn and transferred by the
Issuer to the System Fund. The Issuer expects that.all amounts
received from investment of the Reserve Portion of the Bond
Fund will, within one year of receipt, either be expended to
pay principal of or interest on the Bonds or be commingled with
other substantial revenues of the Issuer for the governmental
purposes of the Issuer.
F. Bond Fund and System Funds.
1. The Bonds are payable solely from amounts held
for the credit of the Bond Fund and are secured solely by a
pledge of the Net Revenues of the System.
2. The Ordinance requires that all Gross Revenues
received by the Issuer by reason of its ownership and operation
of the System shall be deposited as received in the respective
System Fund, to be disbursed in the following order of priority:
-4-0 6 9 l L
, .
a. for payment of all necessary and reasonable
Maintenance and Operating Expenses of the System;
b. for payment into the Bond Fund; and
c. for any other legally incurred indebtedness
payable from the revenues of the System, and/or
secured by a lien on the System.
3. The Bond Fund, created and established in
connection with the issuance of the Previously Issued Bonds, is
reaffirmed by the Issuer in the Ordinance. The Bond Fund is
divided into the portion for the payment of principal and
interest on the Bonds and the Previously Issued Bonds and the
Reserve Portion which maintains an amount equal to not less
than the average annual principal and interest requirements of
all outstanding Bonds similarly secured. The Issuer may credit
against its required deposits to the Bond Fund and the Reserve
Portion of the Bond Fund all amounts received from the
investment of funds held therein.
4. The Bond Fund (other than the Reserve Portion)
will be maintained by the Issuer primarily to achieve a proper
matching of revenues and debt service within each bond year.
The Issuer expects that the following will occur with respect
to the money in the portion of the Bond Fund (other than
(i) the Reserve Portion, and (ii) that portion of the Bond
Fund, if any, consisting of deposits made to def ease in whole
or in part the obligations of the Issuer to make deposits
thereto) and System Fund allocable to paying debt service on
the Bonds:
a. Such portions will be depleted at least
once a year except possibly for a carry-over amount
not greater than the larger of one year's income from
the investment of such portion or one-twelfth of
annual debt service requirements on the Bonds;
b. All amounts deposited to such portions to
pay debt service on the Bonds will be spent within 13
months of deposit; and
c. All amounts received from the investment of
such portions will be deposited therein and will be
expended within twelve months of receipt.
5. Except as described above, no funds of the Issuer
have been or will be pledged to payment of the principal of or
interest on the Bonds or otherwise restricted so as to give
reasonable assurance of the availability of such funds for such
purpose.
-5-0 I 9 l L
G. Yield and Nonpurpose Investments.
1. The " discount factor required to reduce the
principal and interest to be paid on the Bonds to a present
value on the date hereof, compounding semiannually, equal to
the initial offering prices at which a substantial amount of
each maturity of the Bonds was sold to the public, is 1,(o 1 \.
In determining the initial offering price at which a
substantial amount of each maturity of the Bonds was sold to
the public, the Issuer has relied on the certificate from the
Initial Purchaser of the Bonds attached hereto as Exhibit B.
2. No other obligations of the Issuer payable from
the same source of funds have been or will be issued within 31
days of the date hereof.
3. In accordance with Section 29 of the Ordinance,
the Issuer will compute annually the aggregate amount earned
during such period of time on all Nonpurpose Investments in
which Gross Proceeds of the issue are invested, over the amount
that would have been earned during such period if the "Yield"
on such Nonpurpose Investments had been equa 1 to the yield on
the issue, plus any income during such period of time
attributable to such excess (the "Excess Earnings"), will make
annual deposits of Excess Earnings to the Rebate Fund, will pay
over timely to the United States such Excess Earnings plus any
income from the investment thereof as may be due and owing, and
will make such reports as will be required to insure that all
earnings from Nonpurpose Investments with a Yield in excess of
the Yield on the Bonds are "rebated" to the United States as
required by Section 148 of the Code.
EXECUTED AND DELIVERED MAY 2 8 1987 • -------------
; / CITY OF LUBBOCK, TEXAS
By:~ obertMassengale
Assistant City Manager
~sWa';;:-4
Secretary '
-6-0 6 9 l L
The undersigned has read the foregoing Certificate,
has made the representations to the Issuer attributed to it
therein, believes such representations to be true, correct, and
complete as of the date hereof, and is not aware of any facts
or circumstances that would make such representations untrue,
inaccurate, or incomplete.
-7-
O 6 9 1 L
-
... •
EXHIBIT A
Proceeds: Proceeds of the $7,000,000 Bonds will be used as
follows:
Transmission System
( 1) Add a 15/20/25 MVa-69/12. 5 kV transformer along
with required breakers, relays, steel and miscellaneous items
to the existing Slaton Substation. This addition is required
to meet expected load growth in the Slaton Substation area.
( 2) Reconductor approximately nine miles of the
existing thirty miles of 69 kV transmission line. This is
presently 4/0 ASCR. These lines will be reconductored to 477
MCM ACSR.
Estimated Cost, Transmission System Improvements $1,760,000
Distribution System
( 1) Add capactiors and capacitor switches to improve
system power factor.
(2) Retire two of the eight existing 12,470/4160 volt
substations and upgrade their present 4160 volt service to
12,470 volt service.
(3) Extensions of and improvements to the existing
distribution system including addition distribution circuits
for substations, extensions from existing line terminals to new
areas of service, transformers, meter pedestals, poles and
crossarms, regulators, meters, service lines and other
appurtenances.
Estimated Cost, Distribution System Improvement $5,240,000
-8-
0 6 9 1 I.
' {XH'·~ 1 f 8
CERTIFICATE OF UNDERWRITER
REGARDING OFFERING PRICE OF BONDS
The undersigned hereby certifies with respect to the
sale of the City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1987 (the •Bonds•), issued in the
aggregate principal amount of $7,000,000, as follows:
(1) The undersigned is the senior manager of the
group (the •syndicate•) that purchased the Bonds from the City
of Lubbock, Texas (the "Issuer) pursuant to a public sale.
(2) The Syndicate in accordance with the provisions
of the bid submitted at such public sale has made a bona fide
offering of the Bonds of each maturity to the public (other
than bond houses, brokers, dealers and similar persons ·or
organizations acting in the capacity of underwriters or
wholesalers) at the initial offering prices/yields hereinafter
identified.
(3) Based on the following sources of information,
including:
(i) records of Prudential-Bache Securities,
Inc.;
(ii) verbal information from other dealers
and brokers which constitute the members of the
Syndicate and pursuant to an agreement among
underwriters, which information, by virtue of
such contractual obligation, we have no reason to
believe is not correct; and
(iii) verbal information from other dealers
which are not members of the Syndicate and as
such are not bound by the terms of the agreement
among underwriters and for whom we make no
representation as to the accuracy of such
information;
the following amounts of Bonds were sold to the public
(excluding bond houses, brokers, dealers and similar persons or
organizations acting in the capacity of underwriters or
wholesalers) at prices not greater than the initial offering
prices/yields as shown below:
• •
Amount Sold to Public Initial Offering
{Princieal Amount} Price/Yield Year of Maturit~
$ ~! :Ld-:> April 15, 1988
*
April 15, 1989
April 15, 1990
.? ~ ff, 0 {2_,0 April 15, 1991
3,c;-'2, /2.1!:. 0 7:t{ April 15, 1992
~50.()f) <> April 15, 1993
3.s""o, rtH> 7./0 April 15, 1994
*"'bt>,o 7-ln April 15, 1995
..-, ~l.l'>O ?, d:;C April 15, 1996
3.S'il><'b "·.~ April 15, 1997
3~~5~ iu April 15, 1998
if&:~~ April 15, 1999
April 15, 2000 j~~= April 15, 2001
J;l!o April 15, 2002
..1h°~Aro April 15, 2003
3 b"i-, (}_ '82. ii April 15, 2004 ¥a,"~ April 15, 2005 h-J:, April 15, 2006
April 15, 2007
Total:$1; t?2'e /TD
Very truly yours,
PRUDENTIAL-BACHE SECURITIES, INC.
B~ T't~
-
-2-Z l O Z D
f
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SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
§
WE, the undersigned, officials of the City of Lubbock,
Texas (the "Issuer"), do hereby certify as follows:
(1) This Certificate is executed and delivered with
reference to the following described obligations: "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS,
SERIES 1987", dated April 15, 1987 (the "Bond Date"), in the
aggregate principal amount of $7,000,000 (the "Bonds").
(2) The Bonds have been duly and officially executed
by the undersigned with their manual or facsimile signature in
the same manner appearing hereon, and the undersigned hereby
adopt and ratify their respective signatures in the manner
appearing on each of the Bonds whether in manual or facsimile
form, as the case may be, as their true, genuine and official
signatures.
(3) On the Bond Date and on the date hereof, we were
and are the duly qualified and acting officials of the Issuer
indicated below.
(4) The legally adopted proper and official corporate
seal of the Issuer is impressed, imprinted or lithographed on
all of the Bonds and impressed on this Certificate.
(5) No litigation of any nature is now pending before
any federal or state court, or administrative body, or to our
knowledge threatened, seeking to restrain or enjoin the
issuance or delivery of the Bonds or questioning the issuance
or sale of the Bonds, the authority or action of the governing
body of the Issuer relating to the issuance or sale of the
Bonds, the collection of the revenues of the City•s Electric
Light and Power System (the "System"), or the imposition of
rates and charges with respect to the System, pledged to pay
the principal of and interest on the Bonds or that otherwise
would have a material adverse effect on the financial affairs
of the Issuer or the System to pay the Bonds; and that neither
the corporate existence or boundaries of the Issuer nor the
right to hold office of any member of the governing body of the
Issuer or any other elected or appointed official of the Issuer
is being contested or otherwise questioned.
i
.\ , ..
(6) No petition or other request has been filed with
or presented to any official of the Issuer requesting that any
proceedings authorizing the issuance of the Bonds adopted by
the governing body of the· Issuer be submitted to a ref er end um
or other election; no authority or proceeding for the issuance,
sale or delivery of the Bonds, passed and adopted by the
governing body of the Issuer, has been amended, repealed,
revoked, rescinded or otherwise modified since the date of
passage thereof, and all such proceedings and authority
relating to the issuance and sale of the Bonds remain in full
force and effect as of the date of this Certificate.
EXECUTED AND DELIVERED this May 28, 1987
(Issuer's Seal)
SIGNATURE
---------------
OFFICIAL TITLE
Mayor, City of Lubbock, Texas
City Secretary, City of
Lubbock, Texas
The signatures of. the persons subscribed above are
hereby certified to be true and genuine.
(Bank Seal)
-2-
20270
Texas Connnerce Bank NA, Lubbock
(Bank)
By~~
TITLE: Trust Operations Officer
.t .
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,,... -
THE ATTORNEY GENERAL
OF TEXAS
JIM &ox
ATTORNEY GENERAL
May 19, 1987
THIS IS TO CERTIFY that the City of Lubbock, Texas (the
Issuer), has submitted to me City of Lubbock, Texas, Elec-
tric Light and Power System Revenue Bonds, Series 1987 (the
Bond), in the aggregate principal amount of $7,000,000 for
approval. The Bond is dated April 15, 1987, numbered T-1,
and was authorized by Ordinance No. 9068 of the Issuer
passed on April 23, 1987 and on April 24, 1987 ( the Ordi-
nance).
I have .examined the law and such certified proceedings and
other papers as I deem necessary to render this opinion.
As to questions of fact material to my opinion, I have relied
upon representations of the Issuer contained in the certified proceed-
ings and other certifications of public officials furnished to me
without undertaking to verify the same by independent investigation.
I express no opinion relating to any Official Statement or
other offering material relating to the Bond.
Based on my examination, I am of the opinion, as of the date
hereof and under existing law, as follows:
( 1) The . Bond has been issued in accordance with law and is a
valid and binding special obligation of the Issuer.
(2) The Bond together with the outstanding and unpaid Previously
Issued Bonds, is payable solely from and secured by a first lien on
and pledge of the Net Revenues of the Issuer's Electric Light and
Power System (the System). The Bond does not constitute a legal or eq-
uitable pledge, charge, lien or encumbrance upon any property of the
Issuer or the System, except with respect to the Net Revenues (all as
defined in the Ordinance).
(3) The holder hereof shall never have the right to demand pay-
ment of this obligation out of any funds raised or to be raised by
taxation.
THEREFORE, the Bond is approved. ~ ' ,,.,. .J • ✓
No.· 21755
Book No:.. -aJ·~ -
nlb~ -~ :: '::.
1n2/483•1noo SUPREME COURT BUILDING AUSTIN,. TEXAS 78711•2548
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby
certify that the attachment is a true and correct copy of the opinion of the Attorney
City of Lubbock, Texas., El'ectri c Light and Power System General approving the-------------------------
Revenue Bond, Series 1987
T-1 numbered ---------------------of the denomination of
7,000,000 $ _________ dated April 15 87
-------, 19-, as authorized by issuer,
Various interest ______ percent, under and by authority of which said bonds were registered
20th May 87 in this office, on the ____ day of ------19 _ , as the same appears of
415 88 record on page ____ Bond Register of the Comptroller's Office, Vol. _____ _
Register Number 50035
Given under my t,and and seal of office, at Austin, Texas, the 20th
day of May , 19 _!!.,
B08 BULLOCK
Comptroller of Public Accounts
State of Texas
-
CERTIFICATE AND RECEIPT FOR PAYMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
§
That, with respect to the following described obli-
gations: "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, SERIES 1987", dated April 15, 1987, in
the aggregate principal amount of $7,000,000 (the "Bonds"), the
undersigned officer of the City of Lubbock, Texas (the
"Issuer"), DOES HEREBY CERTIFY that on the date hereof, the
Bonds were delivered to the purchasers, namely:
against payment of the agreed purchase price being made
therefor, as follows:
PRINCIPAL AMOUNT--------------$ 7,000,000.00
ACCRUED INTEREST --------------69,982.50
PREMIUM (DISCOUNT)-------------------
TOTAL AGREED PURCHASE PRICE----$ 7,069,982.50
The undersigned further acknowledges that the Issuer
this day has received the agreed purchase price for the Bonds
and the Bonds were· duly authorized by the Issuer to be
delivered to the purchasers thereof.
EXECUTED AND DELIVERED, this May 28, 1987
iri-kSl...::L {ff),,,..,.,.-;&..{!,__, ty Treasurer
City of Lubbock, Texas
The foregoing signature of the foregoing designated
official of the issuer is hereby certified as genuine.
Texas
(Bank SeaO
20300
,._.
CERTIFICATE AS TO OFFICIAL STATEMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
RE: $7,000,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1987", dated
April 15, 1987
WE, THE UNDERSIGNED, officials of the City of Lubbock,
Texas, acting in our official capacities, DO HEREBY CERTIFY
that to the best of our knowledge and belief:
(a) The descriptions and statements of
or pertaining to the City contained in its
Official Statement, and any addenda,
supplement or amendment with respect to such
descriptions or statements thereto, prepared
in connection with the issuance and sale of
the above referenced Bonds, on the date of
such Official Statement, on the date of sale
of said Bonds and the acceptance of the best
bid therefor, and on the date of the delivery,
were and are true and correct in all material
respects;
(b) Insofar as the City and its
affairs, including its financial affairs, are
concerned, such Official Statement did not and
does not contain an untrue statement of a
material fact or omit to state a material fact
required to be stated therein or necessary to
make the statements therein, in the light of
the circumstances under which they were made,
not misleading;
(c) Insofar as the descriptions and
statements, including financial data, of or
pertaining to entities, other than the City,
and their activities contained in such
Official Statement are concerned, such
statements and data have been obtained from
sources which the City believes to be reliable
and that the City has no reason to believe
that they are untrue in any materia 1 respect;
and
,..
..
(d) There has been no material adverse
change in the financial condition of the City
since the date of the last audited financial
statements of the City.
TO CERTIFY WHICH, witness our hands and the seal of the
City, this May 28, 1987
CITY OF LUBBOCK, TEXAS
J;:C.ll/~ ayor ~..c-~* &recretary
(City Seal)
-2-202,0
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-
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-
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Resolution #2553
March 26, 1987
Item # 21-A
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
CITY OF LUBBOCK
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 26th day of March, 1987, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of · the Counci 1 being as
follows:
B. C. McMINN
T. J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
GEORGE W. CARPENTER
ROBERT A. NASH
)
)
)
)
)
)
)
MAYOR
MEMBERS OF COUNCIL
all of said persons were present at said meeting, except the following: __________________ • Among other
business considered at said meeting, the attached resolution
entitled:
A RESOLUTION approving and authorizing the execu-
tion of a "Paying Agent/Registrar Agreement"
in relation to the "City of Lubbock, Texas,
Electric Light and Power System Revenue
Bonds, Series 1987" and resolving other
matters incident and related thereto; and
declaring an emergency.
was. introduced and submitted to the· Council for passage and
-the
and
passed
to be
. adoption. After presentation and due consideration of
resolution, and upon a motion made by ,Joao Baker
seconded by Maggie Trejo the resolution was duly
and adopted as an emergency measure by the Council
effective immediately by the following vote:
7 voted '"For'" voted •Against" ---abstained ---
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
,.
,...
/
2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those . perons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled resolution, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 26th day
of March, 1987.
(City Seal)
-2-1908D
,,,,...j··. ....
•
-Resolution #2553
March 26, 1987
Item #21-A
A RESOLUTION approving and authorizing the execu-
tion of a "Paying Agent/Registrar Agreement"
in relation to the "City of Lubbock, Texas,
Electric Light and Power System Revenue
Bonds, Series 1987" and resolving other
matters incident and related thereto.
WHEREAS, on this date the City Council of the City of
Lubbock, Texas, authorized the issuance of "City of Lubbock,
Texas, Electric Light and Power System Revenue Bonds, Series
1987•, in the principal amount of $7,000,000 (the
"Securities•); such securities to be issued in fully registered
form only; and
WHEREAS, in relation to payment, registration,
transfer and exchange of said Securities, the Paying
Agent/Registrar selected therefor is Texas Commerce Bank,
National·Association, Lubbock, Texas; and
WHEREAS, a "Paying Agent/Registrar Agreement" by and
between the City and said Bank has been prepared and submitted
to the City Council for approval and execution, such Agreement,
setting forth the duties and res pons ibi 1 it ies of the Paying
Agent/Registrar for such Securities, being attached hereto as
Exhibit A and incorporated herein by reference as a part of
this Resolution for all purposes; and
WHEREAS, it is hereby determined that the necessity
for the immediate preservation of the public peace, property,
health or safety of the citizens of the City of Lubbock and to
serve the best interest of the City of Lubbock by providing the
improvements and extensions to the electric light and power
system at the earliest possible date constitutes and creates an
emergency and an urgent public necessity requiring the
suspension of any rules providing for ordinances or resolutions
to be read more than one time or at more than one meeting of
the City Council and that this Resolution be declared an
emergency measure to become effective immediately from and
after its passage; and
WHEREAS, the City Council hereby finds and determines
that such "Paying Agent/Registrar Agreement• should be approved
and execution of the same for and on behalf of the City
authorized; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: that the "Paying
Agreement" by and between the City and Texas
National Association, Lubbock, Texas relating
Agent/Registrar
Commerce Bank,
to the above
. ".i . •
described Securities, attached hereto as Exhibit A, is hereby
approved as to form and content, and the Mayor and City
Secretary of the City are hereby authorized and directed to
execute such Agreement in substantially the same form and
content herein approved for and on behalf of the City and as
the act and deed of this City Council.
SECTION 2: That the fact that it is necessary for
the immediate preservation of the public peace, property,
health or safety of the citizens of the City of Lubbock and in
the best interests of the City of Lubbock to provide funds for
the improvements and extensions to the electric light and power
system at the earliest possible date constitutes and creates an
emergency and an urgent public necessity requiring the suspen-
sion of any rules providing for ordinances and resolutions to
be read more than one time or at more than one meeting of the
City Council, and such rules and provisions are accordingly
suspended, and this Resolution is declared to be an emergency
measure, and shall take effect and be in full force immediately
from and after its passage on the date shown below.
PASSED AND APPROVED, this March 26, 1987.
CITY OF LUBBOCK, TEXAS
ATTEST Mayor •
(_ ~~~ ~/
cityS;fary
(CITY SEAL)
.,
..
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of March 26, 1987 (the
"Agreement"), by and between the CITY OF LUBBOCK, TEXAS (the
"Issuer"), and Texas Commerce Bank, National Association,
Lubbock, Texas, a banking association duly organized and
existing under the laws of the United States of America, ( the
"Bank•).
RECITALS
WHEREAS, the Issuer has duly authorized and provided for
the issuance of its "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1987" (the "Securities") in
the aggregate principal amount of $7,000,000, such Securities
to be issued in fully registered form only as to the payment of
principal and interest thereon; and
WHEREAS, the Securities are scheduled to be delivered to
the initial purchasers thereof on or about _______ ; and
WHEREAS, the Issuer has selected the Bank to serve as
Paying Agent/Registrar in connection with the payment of the
principal of, premium, if any, and interest on said Securities
and with respect to the registration, transfer, and exchange
thereof by the registered owners thereof; and
WHEREAS,· the Bank has agreed to serve in such capacities
for and on behalf of the Issuer and has full power and
authority to perform and serve as Paying Agent/Registrar for
the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT ANO REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying
Agent with respect to the Securities, and, as such Paying Agent
for the Securities, the Bank shall be responsible for paying on
behalf of the Issuer the principal, premium (if any), and
interest on the Securities as the same become due and payable
to the registered owners thereof; all in accordance with this
Agreement and the "Resolution" (hereinafter defined).
-
The Issuer hereby appoints the Bank as Registrar with
respect to the Securities and, as such Registrar for the
Securities, the Bank shall keep and maintain for and on behalf
of the Issuer books and records as to the ownership of said
securities and with respect to the transfer and exchange
thereof as provided herein and in the "Resolution."
The Bank hereby accepts its appointment and agrees to
serve as the Paying Agent and Registrar for the Securities.
Section 1.02. Compensation.
As compensation for the Bank• s services as Paying
Agent/Registrar, the Issuer hereby agrees to pay the Bank the
fees and amounts set forth in Annex A attached hereto for the
first year of this Agreement and thereafter the fees and
amounts set forth in the Bank• s current fee schedule then in
effect for services as Paying Agent/Registrar for
municipalities, . which shall be supplied to the Issuer on or
before ninety ( 90 >" days prior to the close of the Fisca 1 Year
of the Issuer, and which shall be effective upon the first day
of the following Fiscal Year.
In addition, the Issuer agrees to reimburse the Bank upon
its request for all reasonable expenses, disbursements, and
advances incurred or made by the Bank in accordance with any of
the prov1s1ons hereof (including the reasonable compensation
and the expenses and disbursements of its agents and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.01. Definitions.
For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
I 9 0 J 0
"Acceleration Date" on any Security means the
date on and after which the principal or any or all
installments of interest, or both, are due and payable on
any Security which has become accelerated pursuant to the
terms of the Security.
"Bank Office" means the principal
trust off ice of the Bank as indicated on page
The Bank will notify the Issuer in writing of
in the location of the Bank Office.
corporate
12 hereof.
any change
"Resolution" means the resolution, order, or
ordinance of the governing body of the Issuer pursuant to
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which the Securities are issued, certified by the City
secretary or any other officer of the Issuer and delivered
to the Bank.
"Fiscal Year" means the fiscal year of the
Issuer, ending September 30.
"Holder" and
Person in whose name
Security Register.
"Security Holder" each means
a Security is registered in
the
the
"Issuer Request" and "Issuer Order" means a
written request or order signed in the name of the Issuer
by the Mayor, the City Secretary, the City Manager, or the
financial officer, any one or more of said officials, and
delivered to the Bank.
"Legal Holiday" means a day on which the Bank is
required or authorized to be closed.
"Person" means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or government
or any agency or political subdivision of a government.
"Predecessor Securities" of any particular
Security means every previous Security evidencing all or a
portion of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any Security registered and delivered under
Section 4.06 hereof in lieu of a mutilated, lost,
destroyed, or stolen Security shall be deemed to evidence
the same obligation as the mutilated, lost, destroyed, or
stolen Security).
"Redemption Date" when used with respect to any
Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Resolution.
"Responsible Officer" when used with respect to
the Bank means the Chairman or Vice-Chairman of the Board
of Directors, the Chairman or Vice-Chairman of the
Executive Committee of the Board of Directors, the
President, any Vice President, the Secretary, any
Assistant Secretary, the Treasurer, any Assistant
Treasurer, the Cashier, any Assistant Cashier, any Trust
Officer or Assistant Trust Officer, or any other officer
of the Bank customarily performing functions similar to
those performed by any of the above designated ·off ice rs
and also means, with respect to a particular corporate
-3-
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trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and
familiarity with the particular subject.
"Security Register" means a register maintained
by the Bank on behalf of the Issuer providing for the
registration and transfers of Securities.
"Stated Maturity" means the date specified in
the Resolution the principal of a Security is scheduled to
be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," "Issuer," and "Securities (Security)"
have the meanings assigned to them in the recital paragraphs of
this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in
the performance of the duties and functions of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of Paying Agent.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption
Date, or Acceleration Date, to the Holder upon surrender of the
Security to the Bank at the Bank Office.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Security when due, by computing the amount of
interest to be paid each Holder and preparing and sending
checks or drafts by United States Mai 1, first class postage
prepaid, on each payment date, to the Holders of the Securities
(or their Predecessor Securities) on the Record Date, to the
address appearing on the Security Register, or by such other
method, acceptable to the Bank, requested in writing by the
Holder at the Holder•s risk and expense.
Section 3.02. Payment Dates.
The Issuer hereby instructs the Bank to pay the principal
of and interest on the Securities at the dates specified in the
Resolution.
-4-1 'I O l D
ARTICLE FOUR
,-. REGISTRAR
-
Section 4.01. Security Register -Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and Bank may prescribe.
All transfers, exchanges, and replacement of Securities shall
be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, in form satisfactory to the
Bank, duly executed by the Holder thereof or his or her agent
duly authorized in writing.
The Bank may request any supporting documentation it feels
necessary to effect a re-registration, transfer, or exchange of
the Securities.
To the extent possible and under reasonable circumstances,
the Bank agrees that, in relation to an exchange or transfer of
Securities, the exchange or transfer by the Holders thereof
will be completed and new Securities delivered to the Holder or
the assignee of the Holder in not more than three (3) business
days after the receipt of the Securities to be cancelled in an
exchange or transfer and the written instrument of transfer or
request for exchange duly executed by the Holder, or his duly
authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers, replacements, and exchanges
thereof. The Bank covenants that the inventory of printed
Securities will be kept in safekeeping pending their use and
reasonable care wi 11 be exercised by the Bank in maintaining
such Securities in safekeeping, which shall be not less than
the care maintained by the Bank for debt securities of other
-5-I 9 0 l D
governments or corporations for which it serves as registrar,
or that is maintained for its own securities.
section 4.03. Form of Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form or
in any other form capable of being converted into written form
within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a subpoena or court order. Upon
receipt of a subpoena or court order the Bank wi 11 notify the
Issuer so that the Issuer may contest the subpoena or court
order.
Section 4.05. Return of Cancelled Certificates.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer Securities in lieu of which
or in exchange for which other Securities have been issued, or
which have been paid.
Section 4.06. Mutilated, Destroyed, Lost, or Stolen Securities. --------'-........ ,._ ______________ ....._"""""""..__,;;;;;...;;..;;;;....;;'-'--~'----";;.=.;aa.=..=
The Issuer hereby instructs the Bank, subject to the
prov1s1ons of Section 32 of the Resolution, to deliver and
issue Securities in exchange for or in lieu of mutilated,
destroyed, lost, or stolen Securities as long as the same does
not result in an overissuance.
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The Bank will issue and deliver a new Security in exchange
for a mutilated Security surrendered to it. The Bank will
issue a new Security in lieu of a Security for which it has
received written representation from the Holder that the
Security is destroyed, lost, or stolen, without the surrender
or production of the original Security. The Bank will pay on
behalf of the Issuer the principal and premium, if any, of a
Security for which it receives written representation such
Security is destroyed, lost, or stolen following the Stated
Maturity or Redemption of the Security, without the surrender
or production of the Security.
The Bank will not issue a replacement Security or pay such
replacement Security unless there is delivered to the Bank such
security or indemnity as it may require {wpich may be by the
Bank• s blanket bond) to save both the Bank and the Issuer
harmless.
On satisfaction of the Bank and the Issuer, the
certificate number on the Security Register wi 11 be cancel led
with a notation that it has been mutilated, destroyed, lost, or
stolen and a new Security will be issued of the same series and
of like tenor and principal amount bearing a number {according
to the Security Register) not contemporaneously outstanding.
The Bank may charge the Holder the Bank's fees and
expenses in connection with issuing a new Security in lieu of
or exchange for a mutilated, destroyed, lost, or stolen
Security.
The Issuer hereby accepts the Bank's current blanket bond
for lost, stolen, or destroyed Securities and any future
substitute blanket bond for lost, stolen, or destroyed
Securities that the Bank may arrange, and agrees that the
coverage under any such blanket bond is acceptable to it and
meets the Issuer• s requirements as to security or indemnity.
The Bank need not notify the Issuer of any changes in the
security or the company giving such bond or the terms of any
such bond. The blanket bond then utilized for the purpose of
lost, stolen, or destroyed Securities by the Bank is available
for inspection by the Issuer on request.
Section 4.07. Transaction Information to Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
-7-
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:r-
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of Bank.
The Bank undertakes to perform the duties set forth herein
and agrees to use reasonable ~are in the performance thereof.
Section 5.02. Reliance on Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
(c) No provisions of this Agreement shall require the
Bank to expend or risk its own funds or otherwise incur any
financial liability for performance of any of its duties
hereunder, or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to
it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or
ref raining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, note, security, or other paper
or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. Without
limiting the generality of the foregoing statement, the Bank
need not examine the ownership of any Securities, but is
protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder · or an
agent of the Holder. The Bank shall not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or
other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the· written
advice of such counsel or any opinion of counsel shall be full
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and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good
faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and
perform any duties hereunder either directly or by or through
agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer.
The recitals contained herein with respect to the Issuer
and in the Securities shall be taken as the statements of the
Issuer, and the Bank assumes no responsiblity for their
correctness.
The Bank shall in no event be liable to the Issuer, any
Holder or Holders of any Security, or any other Person for any
amount due on any Security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its indi vidua 1 or any other capacity, may
become the owner or pledgee of Securities and may otherwise
deal with the Issuer with the same rights it would have if it
were not the Paying Agent/Registrar, or any other agent.
Section 5.05. Moneys Held by Bank.
Money held by the Bank hereunder need not be segregated
from any other funds provided appropriate trust accounts are
maintained in the name and for the benefit of the Issuer.
The Bank sha 11 be under no 1 iabi 1 i ty for interest on any
money received by it hereunder.
Any money deposited with the Bank for the payment of the
principal, premium (if any), or interest on any Security and
remaining unclaimed for four years after final maturity of the
Security has become due and payable will be paid by the Bank to
the Issuer, and the Holder of such Security sha 11 thereafter
look only to the Issuer for payment thereof, and all liability
of the Bank with respect to such moneys shall thereupon cease.
Section 5.06. Indemnification.
The Issuer agrees to indemnify the Bank for, and hold it
harmless against, any loss, liability, or expense incurred
without negligence or bad faith on its part, arising out of or
in connection with its acceptance or administration of its
duties hereunder, including the cost and expense against any
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claim or liability in connection with the exercise or
performance of any of its powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a federal or
State District Court located in the state and county where
either the Bank Office is or the administrative offices of the
Issuer are located, and agree that service of process by
certified or registered mai 1, return receipt requested, to the
address referred to in Section 6. 03 of this Agreement shal 1
constitute adequate service. The Issuer and the Bank further
agree that the Bank has the right to . file a Bill of
Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party without
the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on pages 12 and 13 hereof.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or not.
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Section 6.06. Severability.
In case any provision herein shall
unenforceable, the validity, legality,
the remaining provisions sha 11 not in
impaired thereby.
be invalid, illegal, or
and enforceabi 1 i ty of
any way be affected or
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any
Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy,
or claim hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Resolution constitute the entire
agreement between the parties hereto relative to the Bank
acting as Paying Agent/Registrar and if any conflict exists
between this Agreement and the Resolution, the Resolution shall
govern.
Section 6.09. Counterparts.
Th.is Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty (60) days' written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
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The prov1s1ons of Section 1.02 and of Article Five hereof
shall survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
(CITY SEAL)
Attest:
City Secretary
[SEAL]
Attest:
Title:
I 'IO l D
CITY OF LUBBOCK, TEXAS
BY
Mayor
Address: P.O. Box 2000
Lubbock, Texas 79457
TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION, LUBBOCK, TEXAS
_BY
Title:
Address: P.O. Box 841
Lubbock, Texas 79408
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BOND INVESTORS GUARANTY INSURANCE COMPANY
70 Pine Street
New York, New York 10270
MUNICIPAL BONO INSURANCE POLICY
Issuer: City of Lubbock, Texas
(Lubbock County)
Policy Number: C-2006
Obligations: $7,000,000 Electric Light and Power System Revenue Bonds, Series 1987
due April 15, 1988-2007
Premium: $77,ooo.oo
Bond Investors Guaranty Insurance Companr ("Bond Investors Guaranty"), a stock insurance company, in considerat on of the payment of the premium and subject to the terms of this policy, hereby unconditionally
and irrevocably guarantees to any OWner or Holder, as hereinafter
defined, of the Obligations, the full and complete payment required to
be made by or on behalf of the issuer to TEXAS COMMERCE BANK, N.A., · • Lubbock, Texas, or its successor (the "Paying Agent") of an amount
equal to (i) the principal of (either at the stated maturity or by any
advancement of maturity ~ursuant to a mandatory sinking fund payment) and interest on, the Obligations as such payments shall become due but ,.._ shall not be so paid (exce~t that in the event cf any acceleration of
the due date of such principal by reason of mandatory or optional
redemption or acceleration resulting from default or otherwise, other
than any advancement of maturity pursuant to a mandatory sinking fund
payment, the ~ayments guaranteed hereby shall be made in such amounts
and at such times as such payments of principal would have been due had there not been any such acceleration); and (ii) the reimbursement of any such payment which is subsequently recovered from any Owner or
Holder pursuant to a final judgment by a court of competent
jurisdiction that such pavment constitutes an avoidable preference to
such Owner or Holder within the meaning of any applicable bankruptcr
law. The amounts referred to in clauses (i) and (ii) of the preceding
sentence shall be referred to herein collectively as the "Insured
Amounts11 •
Upon receipt of telephonic or telegraphic notice, such notice
subsequently confirmed in writing by registered or certified mail, or
upon receipt of written notice by registered or certified mail, by Bond Investors Guaranty or its designee from the Paying Agent or any owner or Holder of an Obligation or coupon thereof the payment of an Insured
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Amount for which is then due, that such required payment has not been made, Bond Investors Guaranty on the due date of such payment or within
one business day after receipt of notice of such nonpayment, whichever is later, will make a deposit of funds, in an account with Bankers Trust company in New York, New York or its successor, sufficient for
the payment of any such Insured Amounts which are then due. Upon
presentment and surrender of such Obligations or coupons or presentment of such other proof of ownership of the Obligations, together with any appropriate instruments of assignment to evidence the assignment of the Insured Amounts due on the Obligations as are paid by Bond Investors
Guaranty, and appropriate instruments to effect the appointment of Bond Investors Guaranty as agent for such Owners or Holders of the
Obligations or coupons in any legal proceeding related to payment of
Insured Amounts on the Obligations or coupons, such instruments being
in.a form satisfactory to Bankers Trust Company, Bankers Trust Company
shall disburse to such owners, Holders or the Paying Agent payment of the Insured Amounts due on such Obligations and coupons, less any
amount held by the Paying Agent for the payment of such Insured Amounts and legally available therefor. Upon such disbursement, Bond Investors
Guaranty shall become the owner of the Obligations or coupons, shall be fully subrogated to any and all of the rights of the Owner or Holder under such Obligations or coupons and shall be vested with all of the
Owner's or Holder's options, votes, rights and powers pursuant to the
instruments that governed the issuance of the Obligations and
appurtenant cou~ons. This policy does not insure against loss of any pre~ayment premium which may at any time be payable with respect to any
Obligation or coupon.
As used herein, the.term "Owner" shall mean the registered owner of any
Obligation as indicated in the books maintained by the Paying Agent, the Issuer or any designee of the Issuer for such purpose and the term "Holder" shall mean the bearer of any Obligation not registered as to
princi~al or as to principal and interest for such purpose and, when
used with reference to a coupon, shall mean the bearer of the coupon.
The terms owner or Holder shall not include the Issuer or any party
whose a9reement with the Issuer constitutes the underlying security for
the Obligations.
Any service of process on Bond Investors Guaranty may be made at its
offices located at 70 Pine Street, New York, New York 10270, and such service of process shall be valid and binding as to Bond Investors
Guaranty.
This policy is non-cancellable for any reason. The premium on this
polic¥ is not refundable for any reason including the payment prior to maturity of the Obligations. ~
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· In Witness Whereof, Bond Investors Guaranty has caused this policy to be affixed with its corporate seal and to be signed by its duly authorized officers in facsimile to become effective and binding upon
Bond Investors Guarantf by virtue of the countersignature of its duly authorized representative 28th day of May, 1987
~ BOND
Pre&~ Secretary
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Authorized Representative
Bankers Trust Companr acknowledges that it has agreed to perform
its duties as set forth in this policy.
< ,., .
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Aua#rzed ofcer
Form No. Big 31 (Texas) (06/86)
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BOND INVESTORS GUAR.:...NTY INSUR.'\NCE COMPA'\;Y
70 PINE STREET
NEW YORK, NEW YORK 10:!70 212-m.7200
BOND INVESTORS GU/\RJ\\NTY
May 28, 1987
City of Lubbock 1625 13th Street
Lubbock, Texas 79401
Prudential-Bache securities
717 North Harwood
Dallas, Texas 75201
Dear Sirs:
Re: $7,000,000
City of Lubbock, Texas (Lubbock county) Electric Light and Power System
Revenue Bonds, Series 1987
Due April 15, 1988-2007
I am General counsel of Bond Investors Guaranty Insurance
Company ("BIG"), an Illinois stock insurance company, and, as
such, I am fully familiar with the corporate affairs of BIG.
In connection with the issuance by BIG of a certain
municipal bond insurance policy !the "Policy") insuring the payment of the principal of and nterest on the above-captioned
Bonds (the "Bonds") on the date hereof, I have examined such
documents and reviewed such questions of law and procedures as I
deemed necessary or appropriate for the purpose of this opinion,
and, on the basis of such knowledge, examination and review, you
are advised that in my opinion:
(1)
(2)
BIG bas been duly incorporated and is validly
existing and in ~ood standing under the laws of
the State of Illinois.
The Policy was issued in the ordinary course of
business and constitutes the legal, valid and
binding obli~ations of BIG enforceable in
accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization, rehabilitation, and other similar
laws of general applicability relating to or
affecting creditors• and/or claimants• rights
against insurance companies and to general equity
principles.·
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~BOND INVESTORS GUAR/\\NTY
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City of Lubbock
1625 13th Street Lubbock, Texas 79401
Prudential-Bache securities
717 North Harwood Dallas, Texas 75201
RECEIPT
May 28, 1987
We have issued Municipal Bond Insurance Policy No.
C-2006, in reference to $7,000,000 City of Lubbock, Texas Electric Light and Power system Revenue Bonds, Series 1987 due
April 15, 1988-2007, and said Policy is on file and available
for inspection at the principal office of Bankers Trust Company
("Insurance Trustee") in New York, New York. The undersi9ned Insurance Trustee hereby acknowledges receipt of said Policy and a copy thereof may be secured from said Insurance Trustee or
Bond Investors Guaranty Insurance Company.
~lease acknowledge receipt of
the above mentioned Policy by signing below.
. . I . • . (I l'' '· ..... •, L By : .. I (d r<'Lt'A; . ;, -.... Bankers Trust company
Bond Investors Guaranty
Ins~rance company
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Standard & Poor's Corporation
Debt Rating Services
25 Broadway
New York, New York 10004
Telephone 212/2()8.1515
2 'd
Roy N. Taub, CFA
Managing Director Insurance and Transportation Rating Department
Mr. Bernard L. Smith, Jr.
Senior Vice President
Bond Investors Guaranty
70 Pine Street• 47th Floer
New York, New York 10270
ot:st S9/Sl/SO WOcl.:1
May 19, 1987
Re: f7,ooo,ooo Lubbock, (Lubbock countyi, Texas, Electric Li~ht and
Power System Revenue Bonds, Series 1987, dateda Apr£1 l , 1987,
due: April 15, 1988•2007, Polley #C-2006 .
Dear Mr. Smithz
This is to advise you that we have changed. the ratinq to "AAA.,
from·"A+" on the subject bonds.
~he rating change reflects our assessment of the like:ihood. of
repayment of principal and interest based on the bond insurance
policy your company is providinq.
Rating adjustments may result from changes in the financial
position of your company or by alterations in documents governing the issue. With respect to the latter, please notify us of any
changes or amendments over the term of the issue.
When using this Standard & P00r 1 s rating, include S&P's definition
of the rating toqether with a statement that this may be changed.,
suspended or withdrawn as a result of changes in, or unavailability
of, information. This rating is not a "market rating", because it
is not a recommendation to buy, hold or sell the obliqations.
Please send us supporting documents as soon as they become available.
If you have any questions, please contact us.
/jrl ·
Very truly yours,
Debi Rall~ SeMCes GIOUl,'J
lndualrial & Utitily Ratings
M\11\leipal Rating&
1n1e1n1ticnal Ratingll
Financial 1ns11tuli0n Ratings
Structured Filw'lce Aalinga
Moftgage ,i11ara Rating&
ll'l&ulld Plating,
CredllWeek
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Moodys Investors Service
Bond Investors Guaranty
70 Pine Street
New York, New York 10270
Gentlemen:
99 Church Street, New York, NY 10007
May 19, 1987
Moody's Investqrs Service has assigned the rating of Aaa
(BIG Insured) to the $7,000,000 City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series
1987 due April 15, 1988-2007, which sold April 23, 1987.
Very truly yours,
,·
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Freda Stern Ackerman
Executive Vice President