HomeMy WebLinkAboutOrdinance - 8861-1985 - Authorizing The Issuance Of "City Of Lubbock, Texas, General Obligation..." - 11/21/1985-
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ORDINANCE NO. 8f!ec/
AN ORDINANCE authorizing the issuance of "City of
Lubbock, Texas, Genera 1 Obligation Refunding
Bonds, Series 1985•; specifying the terms and
features of said bonds; levying a continuing
direct annual ad valorem tax for the payment
of said bonds; and resolving other matters
incident and related to the issuance, sale.
payment and delivery of said Bonds, including
the approval and execution of a Purchase
Contract and a Special Escrow Agreement and
the approval and distribution of an Official
Statement; and providing an effective date.
WHEREAS, the City Council of the City of Lubbock, Texas
(the •city•) has heretofore issued, sold, and delivered, and
there are currently outstanding obligations, payable from ad
valorem taxes, totalling in principal amount $65,610,000 of the
following issues or series (collectively hereinafter called the
"Prior Issues•), to wit:
( 1) •city of Lubbock, Texas, General Obligation
Bonds, Series 1966• dated March 15, 1966,
now outstanding in the principal amount of
$ 150,000
( 2) •city of Lubbock, Texas, General Obligation
Bonds, Series 1967• dated March 15, 1967,
now outstanding in the principal amount of
( 3) •city of Lubbock, Texas, General Obligation
Bonds, Series 1968• dated April 15, 1968,
now outstanding in the principal amount of
250,000
570,000
( 4) "City of Lubbock, Texas, General Obligation
Bonds, Series 1969" dated August 1, 1969, now
outstanding in the principal amount of
.
( 5) •city of Lubbock, Texas, General Obligation
Bonds, Series 1970" dated April 15, 1970,
now outstanding in the principal amount of
( 6) "City of Lubbock, Texas, General Obligation
Bonds, Series 1971• dated March 1, 1971,
now outstanding in the principal amount of
640,000
750,000
2,100,000
.-
,..
( 7) "City of Lubbock, Texas, General Obligation
Bonds, Series 1972• dated March 15, 1972
now outstanding in the principal amount of
4,200,000
( 8) "City of Lubbock, Texas, General Obligation
Bonds, Series 1973" dated August 1, 1973
now outstanding in the principal amount of
2,520,000
( 9) "City of Lubbock, Texas, General Obligation
Bonds, Series 1974" dated March 1, 1974, now
outstanding in the principal amount of
4,500,000
(10) "City of Lubbock, Texas, General Obligation
Bonds, Series 1975" dated March 15, 1975, now
outstanding in the principal amount of
(11) "City of Lubbock,.Texas, General Obligation
Bonds, Series 1976" dated April 15, 1976,
now outstanding in the principal amount of
600,000
880,000
(12) "City of Lubbock, Texas, General Obligation
Bonds, Series 1978" dated September 1, 1978, now
outstanding in the principal amount of
1,580,000
(13) •city of Lubbock, Texas, General Obligation
Bonds, Series 1979• dated August 1, 1979 now
outstanding in the principal amount of
(14) •city of Lubbock, Texas, General Obligation
Bonds, Series 1980• dated July 1, 1980
now outstanding in the principal amoun-t of
(15) •city of Lubbock, Texas, General
Bonds, Series 1a81• dated May 1,
now outstanding in the principal
Obligation
1981
amount of
6,160,000
4,850,000
13,410,000
(16) •city of Lubbock, Texas, General Obligation
Bonds, Series 1982• dated June 1, 1982,
now outstanding in the principal amount of
9,350,000
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(17) •city of Lubbock, Texas, General Obligation
Bonds, Series 1984• dated April 15, 1984,
now outstanding in the principal amount of
13,100,000
which are to be refunded by the issuance of the Bonds
herein authorized;
WHEREAS, pursuant to the provisions of Article 717k,
V.A.T.C.S., as amended, the City Council is authorized to issue
refunding bonds and deposit the proceeds of sale thereof
directly with any place of payment for any of the Prior Issues,
and such deposit, when made in accordance with said statute,
shall constitute the making of firm banking and financial
arrangements for the discharge and final payment of the Prior
Issues;
WHEREAS, a prop.osa 1 has been submitted to the City Counci 1
for refunding the Prior Issues, and the City Council has
accepted such refunding prqposal, and it is hereby found and
determined that such refunding (i) will enable the City to
realize an interest savings of approximately $3,864,702 on such
indebtedness, and (ii) change and consolidate the interest and
principal payment dates for such indebtedness to coincide more
closely with the City•s ad valorem tax collection cycle and
thereby improve cash management of funds collected for the
payment of such indebtedness and thereby reduce fund balances
required to be maintained therefor;
WHEREAS, the City Council hereby finds and determines that
all of the Prior Issues are scheduled to mature, or are subject
to being redeemed, not more than twenty (20) · years from the
date of the refunding bonds herein authorized and refunding
bonds should be issued under and pursuant to the provisions of
Article 717k, V.A.T.C.S, as amended, to refund the Prior
Issues; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS:
SECTION l: Authorization -Series Designation -Prin-
cipal Amount -Purpose ~ Issue Date. General obligation
refunding bonds of the City shall be and are hereby authorized
to be issued in the aggregate principal amount of $60,614,070,
to be designated and bear the title .. CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION REFUNDING' BONOS, SERIES 1985• (hereinafter
referred to as the •Bonds•), for the purpose of providing funds
for the discharge and final payment of certain obligations of
the City (identified in the preamble hereof and referred to as
the •prior Issues•), pursuant to authority conferred by and in
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,...,
conformity with the Constitution and laws of the State of
Texas, including Article 717k, V.A.T.C.S., as amended. The
Bonds shall be dated November 15, 1985 (the •Issue Date•).
SECTION 2: Fully Registered Interest Paying Non-
Interest Paying Obligations -Terms. The Bonds shall be
issued as fully registered obligations, without coupons, and as
•current Interest Paying Bonds• (obligations paying accrued
interest to the holders or owners on and at stated intervals
prior to maturity) and as •capital Appreciation Bonds•
(obligations paying no accrued interest to the holders or
owners prior to maturity).
(a) Current Interest Paying Bonds: The Current Interest
Paying Bonds (other than the· Initial Bonds referenced in
Section 7 hereof) shall be in denominations of $5,000 or any
integral multiple (within a Stated Maturity) thereof, shall be
lettered •R-• and numbered separately from One (1) upward and
shall become due and payable on February 15 in each of the
years and in principal amounts (the •stated Maturities•) and ·
bear interest at the rate(s) per annum in accordance with the
following schedule:
Year of Principal Interest
Stated Maturity Amount Rate~s}
1986 $ 925,000 5.000\
1987 5,920,000 5.500\
1988 5,745,000 6.200\
1989 5,520,000 6.500\
1990 5,350,000 6.750\
1991 5,205,000 7.000\
1992 4,880,000 7.200\
1993 4,295,000 7.375\
1994 3,935,000 7.500\
1995 3,445,000 7.700\
1996 3,450,000 7.900\
1997 3,380,000 8.000\
1998 3,395,000 8.100\
1999 3,290,000 8.200\
The Current Interest Paying Bonds shall bear interest on
the unpaid principal amounts from the Issue Date at the rate(s)
per annum shown in the above schedule (calculated on the basis
of a 360-day year of twelve 30-day months). Interest on the
Current Interest Paying Bonds shall be payable on February 15
and August 15 in each year, commencing February 15, 1986.
(b) Capital Appreciation Bonds. The Capital Appreciation
Bonds shall each be issued in the Maturity Amount (the
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"Accreted Value• [as hereinafter defined] at maturity) of
$5,000, or any integral multiple thereof within a Stated
Maturity, shall be lettered "CAB-• and numbered separately
from One (1) upward, and the Capital Appreciation Bonds shall
be issued in the original principal amounts, which shall accrue
interest compounded semiannually as hereinafter provided at the
compounding rate(s) stated in the table below, and shall become
due and payable on February 15 in each of the years (the
•stated Maturi ties•) in the Maturity Amounts set forth in the
following table:
Year of Original Principal Maturity
Maturity Amount Amount Yield
2000 $836,307.80 $2,755,000 8.600\
2001 604,441.50 2,230,000 8.800\
2002 303,638.80 1,240,000 8.900\
2003 134,681.90 610,000 9.000\
Interest on the Capital Appreciation Bonds shall accrue
from the date of delivery of the Bonds to the initial
purchasers (December 18, 1985), and be compounded semiannually
(based on a 360-day year of twelve 30-day months) on
February 15 and August 15 in each year, commencing
February 15, 1986, until the Stated Maturity therefor. The
accrued interest on Capital Appreciation Bonds shall be payable
at maturity as a portion of the Maturity Amount.
The term "Accreted Value•, as used herein with respect to
Capital Appreciation Bonds, shall mean the original principal
amount of a Capital Appreciation Bond with interest thereon
compounded semiannually to the February 15 or August 15, as the
case may be, next preceding the date of such calculation (or
the date of calculation, if such calculation is made on
February 15 or August 15), at the interest rate stated therefor
to maturity. For any day other than a February 15 or
August 15, the Accreted Value of a Capital AP,preciation Bond
shall be determined by a straight line inte-rpolation between
the values for the applicable semiannual compounding dates
(based on 30-day months). Schedule I, attached to the Official
Statement referred to in Section 14 hereof, sets forth the
Accreted Value of Capital Appreciation Bonds (per $5,000
Accreted Value at maturity) as of each August 15 and
February 15.
SECTION 3: Terms of Payment-Paying Agent/Registrar.
The principal of, premium, if any, and the interest on the
Bonds, due and payable by reason of maturity or otherwise,
shall be payable only to the registered owners or holders of
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the Bonds (hereinafter called the "Holders") appearing on the
registration and transfer books (the "Security Register")
maintained by the Paying Agent/Registrar and the payment
thereof shall be in any coin or currency of the United States
of America, which at the time of payment is legal tender for
the payment of public and private debts, and shall be without
exchange or collection charges to the Holders.
The selection and appointment of Texas Commerce Bank
National Association, Lubbock, Texas, to serve as the initial
Paying Agent/Registrar for the Bonds is hereby approved and
confirmed. 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
bank, trust company, financial institution or other entity
qualified and authorized to serve in such capacity 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 Holder by United States Mail, first class postage prepaid,
which notice shall also give the address of the new Paying
Agent/Registrar.
Principal of and premium, if any, on the Bonds shall be
payable at the Stated Maturities thereof, only upon
presentation and surrender of the Bonds to the Paying
Agent/Registrar at its principal office. Interest accrued on a
Capital Appreciation Bond shall be payable at its Stated
Maturity as a portion of the Accreted Value or Maturity Amount
thereof. Interest on a Current Interest Paying Bond shall be
paid to the Holder whose name appears in the Security Register
at the close of business on the Record Date (the last business
day of the month next preceding each interest payment date) and
shall be paid by the Paying Agent/Registrar ( i) by check sent
United States Mail, first class postage prepaid, to the address
of the Holder recorded in the Security Register or (ii) by such
other method, acceptable to the Paying Agent/Registrar,
requested by, and at the risk and expense of, the Holder. If
the date for the payment of the principal of or interest on the
Bonds shall be a Saturday, sunday, a legal holiday, or a day on
which banking institutions in the City where the Paying
Agent/Registrar is located are authorized by law or executive
order to close, then the date for such payment shall be the
next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day on which banking institutions are authorized to
close; and payment on such date shall have the same force and
effect as if made on the original date payment was due.
In the event of a nonpayment of interest on a scheduled
payment date on the Current Interest Paying Bonds, and for
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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 interest due and payable (which shall be 15 days
after the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States
Mail, first class postage prepaid, to the address of each
Holder of the Current Interest Paying Bonds 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: (a) Bonds
Appreciation Bonds shall become
Maturities without right of
principal, as the case may be.
Non-Redeemable. The Capital
due and payable at their Stated
redemption or prepayment of
(b) Optional Redemption. The Current
Interest Paying Bonds hav~ng Stated Maturities on and after
February 15, 1996, shall be subject to redemption prior to
maturity, at the option of the City on February 15, 1995 or on
any interest payment date thereafter, in whole or in part in
principal amounts of $5,000 or any integra 1 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.
(c) Exercise of Redemption Option. At
least forty-five (45) days prior to a date set for the
redemption of Current Interest Paying 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
Current Interest Paying 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 Current Interest Paying Bonds shall be entered
in the minutes of the governing body of the City.
(d) Selection of Current Interest Paying
Bonds. If less than all Outstanding Current Interest Paying
Bonds of the same Stated Maturity are to be redeemed on a
redemption date, the Paying Agent/Registrar shall select by
lot, the Current Interest Paying 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.
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(e) Notice of Redemption. Not less than
thirty (30) days prior to a redemption date for the Current
Interest Paying 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) state the redemption price, (iv) state that the Bonds, or
the portion of the principal amount thereof to be redeemed,
shall. become due and payable on the redemption date specified,
and. the interest thereon, or on the portion of the principal
amount thereof to be redeemed, shall cease to accrue from and
after the redemption date, and (v) specify that payment of the
redemption price for the Bonds, or the principal amount thereof
to be redeemed, shall be made at the principal corporate office
of the Paying Agent/Registrar only upon presentation and
surrender thereof by the Bondholder. If a Bond is sqbject 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 shall cease to accrue from and after the
redemption date therefor, provide 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: 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, as provided
herein and in accordance· with the provisions of an agreement
with the Paying Agent/Registrar and such rules and regulations
as the Paying Agent/Registrar and the City may prescribe. The
Paying Agent/Registrar shall obtain, record, and maintain in
the Security Register the name and address of each and every
owner of the Bonds issued under and pursuant to the provisions
of this Ordinance, or if appropriate, the nominee thereof. Any
Bond may be transferred or exchanged for Bonds of like kind
(Current Interest Paying Bonds or Capital Appreciation Bonds)
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. ,..
and in authorized denominations by the Holder, 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 Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender of any Bond (other than the Initial Bonds
authorized in Section 7 hereof) for transfer at the principal
office of the Paying Agent/Registrar, the Paying Agent/
Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds 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 Holder, Bonds (other than the Initial
Bonds authorized in Section 7 hereof) 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 (with respect to Current Interest
Paying . Bonds) or Maturity Amount (with respect to Capital
Appreciation Bonds) 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
surrendered for exchange, the Paying Agent/Registrar shall
register and deliver new Bonds to the Holder requesting the
exchange.
All Bonds issued in any transfer or exchange of Bonds
shall be delivered to the Holders at the principal office of
the Paying Agent/Registrar or sent by United States Mail, first
class, postage prepaid to the Holders, and, upon the
registration and delivery thereof, the same shall be the valid
obligations of the City, evidencing the same obligation to pay,
and entitled to the same benefits under this Ordinance, as the
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
Holder, except as otherwise herein provided, and except that
the Paying Agent/Registrar shall require payment by the Holder
requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange •
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
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or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term •predecessor Bonds• shall
include any mutilated, lost, destroyed, or stolen Bond for
which a replacement Bond has been issued, registered and
delivered in lieu thereof pursuant to the provisions of
Section 10 hereof and such new replacement Bond 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 45 days of the date
fixed for redemption of such Bond; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the Bondholder of an unredeemed balance of a Bond
called for redemption in part •
. SECTION 6: 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 Issue 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 80, manually executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and
either such certificate duly signed ·upon any Bond shall be
conclusive evidence, and xhe only evidence, that such Bond has
been duly certified, registered and delivered.
SECTION 7: Initial Bonds. The Bonds herein authorized
shall be initially issued as two (2) fully registered bonds,
being ( i) a single fully registered Current Interest Paying
Bond in the aggregate principal amount of $58,735,000 with
principal installments to become due and payable as provided in
Section 2(a) hereof and numbered TR-1 and (ii) a single fully
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registered Capital Appreciation Bond in the aggregate Maturity
Amount of $6,835,000. with installments of such Maturity Amount
to become due and payable as provided in Section 2(b) hereof
and numbered TCAB-1, (hereinafter called the "Initial Bonds")
and the Initial Bonds shall be registered in the name of the
initial purchaser(s) or the designee thereof. The Initial
Bonds 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
Bonds, the Paying Agent/Registrar, pursuant to written
instructions from the initial purchaser(s), or the designee
thereof, shall cancel the Initial Bonds delivered hereunder and
exchange therefor definitive Bonds of like kind and of
authorized denominations, Stated Maturities, principal amounts
(with respect to Current Interest Payment Bonds) or Maturity
Amounts (with respect to the Capital Appreciation Bonds) and
bearing applicable interest rates for transfer and delivery to
the Holders 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 Registration Certificate of
Paying Agent/Registrar, and the form of Assignment to be
printed on each of the Bonds, shall be substantially in the
forms set forth in this Section with such appropriate
insertions, omissions, substitutions, and other variations as
are permitted or required by this Ordinance and may have such
letters, numbers, or other marks of identification (including
identifying numbers and letters of the Committee on Uniform
Securities Identification Procedures of the American Bankers
Association) and such legends and endorsements (including any
reproduction of an opinion of counsel) thereon as may,
consistently herewith, be established by the City or determined
by the officers executing such Bonds as evidenced by their
execution. 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, but the Initial Bonds submitted to the
Attorney General of Texas may be typewritten or photocopied or
otherwise reproduced.
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B. Form of Definitive Bonds.
[Current Interest Paying Bonds]
REGISTERED
NO.
UNITED STATES OF AMERICA
STATE OF TEXAS
REGISTERED
PRINCIPAL AMOUNT $ ___ _
CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
REFUNDING BOND, SERIES 1985
Issue Date: Interest Rate: Stated Maturity: CUSIP NO:
November 15, 1985
Registered Owner:
Principal Amount: DOLLARS
The City of Lubbock (hereinafter referred to as the
"City•), a body corporate and political subdivision in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the Registered Owner named above, or the
registered assigns thereof, on the Stated Maturity date
specified above, Principal Amount hereinabove stated (or so
much thereof as shall not have been paid upon prior redemption)
and to pay interest on the unpaid principal amount hereof f~om
the Issue Date shown above 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
February 15 and August 15 in each year, commencing February 15,
1986. Principal of this Bond is payable at its Stated Maturity
to the registered owner hereof, upon presentation and
surrender, at the principal office of the Paying
Agent/Registrar executing the registration certificate
appearing hereon, or its.successor. Interest is payable to the
registered owner of this 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 business day of the month next
preceding each interest payment date, and interest shall be
paid by the Paying Agent/Registrar by check sent United States
Mail, first class postage prepaid, to the address of the
registered owner recorded in the Security
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Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the registered owner. All payments of principal of, premium,
if any, and interest on this Bond shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $60,614,070 (herein
referred to as the •Bonds•) for the purpose of providing funds
for the discharge and final payment of certain obligations of
the City, under and in strict conformity with the Constitution
and laws of the State of Texas, including
Article 717k, V.A.T.C.S., as amended, and pursuant to an
Ordinance adopted by the City Council of the City (herein
referred to as the •ordinance•). The Bonds are issued in part
as •current Interest Paying Bonds•, which total in principal
amount $58,735,000 and pay accrued interest at stated intervals
prior to their Stated Maturities and in part as •capital
Appreciation Bonds•, which total in original principal amount
$1,879,070 and pay no accrued interest prior to their Stated
Maturities.
The Current Interest Paying Bonds maturing on and after
February 15, 1996, may be redeemed prior to their Stated
Maturities, a~ the option of the City, on February 15, 1995, or
on any interest payment 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 Bond (or the portion
of the principal sum hereof to be redeemed) shall become due
and payable, and interest thereon shall cease to accrue from
and after the redemption date therefor, provided moneys for the
payment of the redemption price and the interest on the
principal amount to be redeemed to the date of redemption are
held for the purpose of such payment by the Paying
Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Bond, payment of the redemption price of such
principal amount shall be made to the registered owner only
-13-
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 selected for redemption,. in whole or in part, the City and
the Paying Agent/Registrar shall not be required to transfer
this Bond to an assignee of the registered owner within 45 days
of the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the Bondholder of the unredeemed balance hereof in
the event of its redemption in part.
The Bonds are payable from the proceeds of an ad valorem
tax levied, within the limitations prescribed by law, upon all
taxable property in the City. Reference is hereby made to the
Ordinance, a copy of which is on file in the principal office
of the Payinq Agent/Registrar, and to all of the provisions of
which the owner or holder of this Bond by the acceptance hereof
hereby assents, for definitions of terms; the description of
and the nature and extent of the tax levied for the payment of
the Bonds; 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 Holders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which this Bond may be discharged at or prior to its maturity
and deemed to be no longer Outstanding thereunder; and for
other terms and provisions contained therein. Capitalized
terms used herein have the meanings assigned in the Ordinance.
This Bond, subject to cer.tain 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, shall treat the registered owner 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
-14-
principal at the Stated Maturity hereof and (iii) on any other
date as the owner for all other purposes, and neither the City
nor the Paying Agent/Registrar, or any .agent of either, shall
be affected by notice to the contrary. In the event of
nonpayment of interest on a Current Interest Paying Bond on a
scheduled payment date and for thirty (30) days thereafter, a
new record date for such interest payment {a "Special Record
Date•) will be established by the Paying Agent/Registrar, if
and when funds for the ·payment of such interest have been
received from the City. Notice of the Special Record Date and
of the scheduled payment date of the past due interest {which
shall be 15 days after the Special Record Date) shall be sent
at least five (5) business days prior to the Special Record
Date by United States Mail, first class postage prepaid, to the
address of each Holder of a Current Interest Paying Bond
appearing on the Security Register at the close of business on
the last business day next preceding the date of mailing of
such notice.
It is hereby certified, recited, represented and declared
that the City is a body corporate and political subdivision
duly organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the 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 the levy of a tax as aforestated. In
case any provision in this Bond shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby. 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 Issue Date.
CITY OF LUBBOCK, TEXAS
COUNTERSIGNED: Mayor
City Secretary
{SEAL)
-15-
!
REGISTERED
NO. CAB-_
(Capital Appreciation Bonds]
UNITED STATES OF AMERICA
STATE OF TEXAS
REGISTERED
MATURITY AMOUNT $ _____ _
CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
REFUNDING BOND, SERIES 1985
Issue Date: Compounding Rate: Stated Maturity: CUSIP NO:
November 15, 1985
Registered Owner:
Maturity Amount: DOLLARS
The City of Lubbock (hereinafter referred to as the
•ci ty•), a body corporate and political subdivision in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the Registered Owner named above, or the
registered assigns thereof, on the Stated Maturity date
specified above, without right of prior redemption or
prepayment, the Maturity Amount stated above, representing the
original principal amount hereof and accrued and compounded
interest thereon. Interest accrues on the original principal
amount hereof from December 18, 1985 at the compounding rate
specified above, compounded semiannually on February 15 and
August 15 in each year, commencing February 15, 1986. A table
of the "Accreted Values• per $5,000 principal and interest
payable at maturity on the dates shown therein is printed on
the reverse side of this Bond. For any date other than a
February 15 or August 15, the Accreted Value of this Bond shall
be determined by a straight line interpolation between the
values for the applicable semiannual compounding dates (based
on 30-day months).
The Maturity Amount or Accreted Value of this Bond is
payable at its Stated Maturity 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. Payments of principal of,
premium, if any, and accrued and compounded interest on this
-16-
Bond shall be without exchange or collection charges to the
owner hereof and in any coin or currency of the United States
of America which at the time of payment is legal tender for the
payment of public and private debts.
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $60,614,070 (herein
referred to as the •Bonds•) for the purpose of providing funds
for the discharge and final payment of certain obligations of
the City, under and in strict conformity with the Constitution
and laws of the State of Texas, including
Article 717k, V.A.T.c.s., as amended, and pursuant to an
Ordinance adopted by the City Council of the City (herein
referred to as the •ordinance•). The Bonds are issued in part
as •current Interest Paying Bonds•, which total in principal
amount $58,735,000 and pay accrued interest at stated intervals
prior to their Stated Maturities and in part as •capital
Appreciati9n Bonds•, which total in original principal amount
$1,879,070 and pay no accrued interest prior to their Stated
Maturities.
The Bonds are payable from the proceeds of an ad valorem
tax levied, within the limitations prescribed by law, upon all
taxable property in the City. 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 owner or holder of this Bond by the acceptance hereof
hereby assents, for definitions of terms; the description of
and the nature and extent of the tax levied for the payment of
the Bonds; 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 Holders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which this Bond may be discharged at or prior to its maturity
and deemed to be no longer Outstanding thereunder; and for
other terms and provisions contained therein. Capitalized
terms used herein have the 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, accruing interest
at the same rate, and of the same aggregate principal amount
-17-
(with respect to Current Interest Paying Bonds) or Maturity
Amount (with respect to Capital Appreciation Bonds) 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, shall treat the registered owner whose name appears on
the Security Register (i) on the date of surrender of this Bond
as the owner entitled to payment of the Maturity Amount at its
Stated Maturity and (ii) 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.
It is hereby certified, recited, represented and declared
that the City is a body corporate and political subdivision
duly organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the 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 the levy of a tax as aforestated. In
case any provision in this Bond shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby. 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 Issue Date.
CITY OF LUBBOCK, TEXAS
COUNTERSIGNED: Mayor
City Secretary
(SEAL)
NOTE TO PRINTER: Print the "Table of Accreted Values• on reserve
side of Bonds as called for in paragraph one
-18-
C. *Form of Registration Certificate of Comptroller
of Public Accounts to appear on Initial Bonds only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
(
(
(
(
REGISTER NO.
THE STATE OF TEXAS
I HEREBY CERTIFY that this Bond has been examined,
certified as to validity and approved by the Attorney General
of the State of Texas, and duly reqistered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my
this
signature and seal of office
•
Comptroller of Public Accounts
of the State of Texas
(SEAL)
D. Form of Certificate of Paying Agent/Registrar to
appear on Definitive Bonds only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued and registered 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 reqistered by the Comptroller of Public
Accounts, as shown by the records of the Paying Agent/Registrar.
Registration Date:
*NOTE TO PRINTER:
Texas Commerce Bank
National Association
Lubbock, Texas,
as Payinq Agent/Registrar
By ------~~~~~~~--~-------Authorized Signature
Do Not Print on Definitive Bonds
-19-
.E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells,
assigns, and transfers unto (Print or typewrite name,
address, and zip code of transferee:) .••••••••••••••••••.••••• . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Social Security or other identifying number: •.••••••...••••••
• • • • • • • • • • • • • • • • ) the within Bond and all rights thereunder,
and hereby irrevocably constitutes and appoints ••.••••.••.••••• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signature guaranteed:
. . . . . . . . . . . . . . . . . . . . . . . . . .
NOTICE: The signature on this assign-
ment must correspond with the
name of the registered owner as it
appears on the face of the within
Bond in every particular.
-20-
F. The Initial Bonds for the Current Interest Paying
Bonds and the Capital Appreciation Bonds shall be in the
respective forms set forth therefor in paragraph B of this
Section, except as follows:
(l) [Form of Current Interest Payinq Initial Bond]
Headinq and paraqraph one shall be amended to read as follows:
NO. TR-1 $58,735,000
Issue Date:
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
REFUNDING BOND, SERIES 1985
November 15, 1985
Reqistered Owner: RAUSCHER PIERCE REFSNES, INC.
Principal Amount: FIFTY-EIGHT MILLION SEVEN HUNDRED
THIRTY-FIVE THOUSAND DOLLARS
The City of Lubbock (hereinafter referred to as the
"City"), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
. acknowledqes itself indebted to and hereby promises to pay to
the order of the Reqistered Owner named above, or the
registered assigns thereof, the Principal Amount hereinabove
stated on the February 15 in each of the years and in principal
installments in accordance with the following schedule:
YEAR OF
MATURITY
PRINCIPAL
INSTALLMENTS
(Information to be inserted from
schedule in Section 2 hereof).
INTEREST
RATE
(or so much thereof as shall not have been prepaid prior to
maturity) and to pay interest on the unpaid Principal Amount
hereof from the Issue 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
February 15 and August 15 in each year, commencing February 15,
1986. Principal installments of this Bond is payable in the
-21-
year of maturity to the registered owner hereof, upon its
presentation and surrender, at the principal office of Texas
Commerce Bank, National Association, Lubbock, Texas (the
"Paying Agent/Registrar"). Interest is payable to the
registered owner of this Bond whose name appears on the
"Security Register• maintained by the Paying Agent/Registrar at
the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment
date, 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 or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the registered owner. All payments of principal of, premium,
if any, and interest on this Bond shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
(2) [Form of Capital Appreciation Initial Bond]
Heading and first two paragraphs shall be amended to read as
follows:
REGISTERED
NO. TCAB-1
Issue Date:
UNITED STATES OF AMERICA
STATE OF TEXAS
MATURITY AMOUNT
$6,835,000
CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
REFUNDING BOND, SERIES 1985
November 15, 1985
Registered Owner: RAUSCHER PIERCE REFSNES, INC.
Maturity Amount: SIX MILLION EIGHT HUNDRED THIRTY-FIVE
THOUSAND DOLLARS
The City of Lubbock (hereinafter referred to as the
"City"), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
-22-
-
,...
the order of the Registered Owner named above, or the
registered assigns thereof·, the aggregate Maturity Amount
stated above on the February 15 in each of the years and in
installments in accordance with the following schedule:
Year of
Maturity
Original Principal
Amount
Compounding
Rate(s)
(Information to be inserted from
schedule in Section 2 hereof).
Maturity
Amount
(without ri"ght of prepayment prior to maturity), such Maturity
Amounts representing the original principal amounts shown above
and accrued and compounded interest thereon at the respective
interest rate shown therefor. Interest accrues on the original
principal amounts hereof from December 18, 1985 at the
compounding rates specified above, compounded semiannually on
the basis of a 360-day year of twelve 30-day months on
February 15 and August 15 in each year, commencing February 15,
1986. A table of the "Accreted Values• per $5,000 principal
and interest payable at maturity on the dates shown therein is
attached to this Bond. For any date other than a February 15
or August 15, the Accreted Value of this Bond shall be
determined by a straight line interpolation between the values
for the applicable semiannual compounding dates (based on
30-day months}.
The installments of Maturity Amounts or Accreted Value of
this Bond are payable in the year of maturity to the registered
owner hereof, without exchange or collection charges, upon its
presentation and surrender, at the principal office of Texas
Commerce Bank, National Association, Lubbock, Tezas (the
"Paying Agent/Registrar"), and shall be payable 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.
SECTION 9: Levy of Taxes. To provide for the payment
of the •Debt Service Requirements• of the Bonds, being (i) the
interest on the Bonds and (ii) a sinking fund for the payment
of principal thereof at maturity or a sinking fund of 2\
(whichever amount is the greater), there is hereby levied, and
there shall be annually assessed and collected in due time,
form, and manner, a tax on all taxable property in the City,
within the limitations prescribed by law, and such taz hereby
levied on each one hundred dollars• valuation of taxable
property in the City for the Debt Service Requirements of the
Bonds shall be at a rate from year to year as will be ample and
-23-
sufficient to provide funds each year to pay the principal of
and interest on said Bonds while Outstanding; full allowance
being made for delinquencies and costs of collection; separate
books and records relating to the receipt and disbursement of
taxes levied, assessed and collected for and on account of the
Bonds shall be kept and maintained by the City at all times
while the Bonds are Outstanding, and the taxes collected for
the payment of the Debt Service Requirements on the Bonds shall
be deposited to the credit of a "Special 1985 Refunding Bond
Account• (the • Interest and Sinking Fund") maintained on the
records of the City and deposited in a special fund maintained
at an official depository of the Ci ty• s funds; and such tax.
hereby levied, and to be assessed and collected annually, is
hereby pledged to the payment of the Bonds.
Proper officers of the City are hereby authorized and
directed to cause to be transferred to the Paying Agent/
Registrar for the Bonds, from funds on deposit in the Interest
and Sinking Fund, amounts sufficient to fully pay and discharge
promptly each installment of interest and principal of the
Bonds as the same shall become payable or matures; such
transfers of funds to be made in such manner as wi 11 cause
collected funds to be deposited with the Paying Agent/Registrar
on or before each principal and interest payment date for the
Bonds.
SECTION 10: Mutilated-Destroyed-Lost and Stolen Bonds.
In case any Bond shall be mutilated, or destroyed, lost or
stolen, the Paying Agent/Registrar, subject to City approval
and in its discretion, may execute and deliver a replacement
Bond of like form and tenor, and in the same denomination and
bearing a number not contemporaneously outstanding, in exchange
and substitution for such mutilated Bond, or in lieu of and in
substitution for such destroyed, lost or stolen Bond, only upon
(i) the filing by the Holder thereof with the Paying
Agent/Registrar of evidence satisfactory to the Paying
Agent/Registrar of the destruction, loss or theft of such Bond,
and of the authenticity of the ownership thereof and (ii) the
furnishing to the Paying Agent/Registrar of indemnification in
an amount satisfactory to hold the City and the Paying
Agent/Registrar harmless. All expenses and charges associated
with such indemnity and. with the preparation, execution and
delivery of a replacement Bond shall be borne by the Holder of
the Bond mutilated, or destroyed, lost or stolen.
Every replacement Bond issued pursuant to this Section
shall be a valid and binding obligation, and shall be entitled
to all the benefits of this Ordinance equally and ratably with
all other Outstanding Bonds; notwithstanding the enforceability
of payment by anyone of the destroyed, lost, or stolen Bonds.
-24-
The prov1s1ons of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated,
destroyed, lost or stolen Bonds.
SECTION 11: Satisfaction of Obligation of City. If the
City shall pay or cause to be paid, or there shall otherwise be
paid to the Holders, the principal of, premium, if any, and
interest on the Bonds, at the times and in the manner
stipulated in this Ordinance, then the pledge of taxes levied
under this Ordinance and all covenants, agreements, and other
obligations of the City to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
Bonds or any principal amount(s) (with respect to Current
Interest Paying Bonds) and Maturity Amounts (with respect to
Capital Appreciation Bonds) shall be deemed to have been paid
within the meaning and with the effect expressed above in this
Section when (i) money sufficient to pay in full such Bonds at
maturity, together with all interest due thereon, shall have
been irrevocably deposited with and held in trust by the Paying
Agent/Registrar, or an authorized escrow agent, or
(ii) Government Securities shall have been irrevocably
deposited in trust with the Paying Agent/Registrar, or an
authorized escrow agent, which Government Securities have been
certified by an independent accounting firm to mature as to
. principa 1 and interest in such amounts and at such times as
will insure the availability, without reinvestment, of
sufficient money, together with any moneys deposited therewith,
if any, to pay when due the Bonds on and prior to the Stated
Maturities thereof. The City covenants that no deposit of
moneys or Government Securities will be made under this Section
and no use made of any such deposit which would cause the Bonds
to be treated as •arbitrage bonds• within the meaning of
Section 103(c) of the Internal Revenue Code of 1954, as
amended, or regulations adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar,
or an authorized escrow agent, and all income from Government
Securities held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, pursuant to this Section in excess of
the amount required for. the payment of the Bonds shall be
remitted to the City or deposited as directed by the City.
Furthermore, any money held by the Paying Agent/Registrar for
the payment of the Bonds and remaining unclaimed for a period
of four (4) years after the Stated Maturity of the Bonds such
moneys were deposited and are held in trust to pay shall upon
the request of the City be remitted to the City against a
written receipt therefor.
-25-
-
The term "Government Securities", as used herein, means
direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United
States of America, which are non-callable prior to the
respective Stated Maturities of the Bonds and may be United
States Treasury Obligations such as the State and Local
Government Series and may be in book-entry form.
SECTION 12: Ordinance a Contract -Amendments
Outstanding Bonds. This Ordinance shall constitute a contract
with the Holders from time to time, be binding on the City, and
shall not be amended or repealed by the City so long as any
Bond remains Outstanding except as permitted in this Section.
The City may, without the consent of or notice to any Holders,
from time to time and at any time, amend this Ordinance in any
manner not detrimental to the interests of the Holders,
including the curing of any ambiguity, inconsistency, or formal
defect or omission herein. In addition, the City may, with the
consent of Holders holding a majority in aggregate principal
amount (with respect to Current Interest Paying Bonds) and
Maturity Amount (with respect to Capital Appreciation Bonds) 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 Holders 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 or
Maturity Amount, as the case may be, thereof, or the rate of
interest thereon, or in any other way modify the terms of
payment of the principal of, premium, if any, or interest on
the Bonds, ( 2) give any preference to any Bond over any other
Bond, or (3) reduce the aggregate principal amount or Maturity
Amount, as the case may be, of Bonds required to be held by
Holders for consent to any such amendment, addition, or
rescission.
The term-"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 cancelled by the
Agent/Registrar or delivered to the
Agent/Registrar for cancellation;
Paying
Paying
( 2) those Bonds deemed to be duly paid by
the City in accordance with the provisions of
Section 11 hereof by the irrevocable deposit with
the Paying Agent/Registrar, or an authorized
escrow agent, of money or Government Securities,
-26-
-
or both, in the amount necessary to fully pay the
principal of, premium, if any, and interest
thereon to maturity; and
(3) those mutilated, destroyed, lost, or
stolen Bonds which have been replaced with Bonds
registered and delivered in lieu thereof as
provided in Section 10 hereof.
SECTION 13: No-Arbitrage Certification. The City
certifies that based on facts, estimates, and circumstances
expected to exist on the date of the issue of the Bonds it is
not reasonable to anticipate that the proceeds thereof will be
used in a manner which would cause them to be •arbitrage bonds"
within the meaning of Section 103(c) of the Internal Revenue
Code of 1954, as amended, or regulations thereunder applicable
thereto, and the City covenants not to make any use of the
proceeds of the Bonds or investment income therefrom which
would cause the Bonds to become "arbitrage bonds" within the
meaning of Section 103 (c) .of such Code. The covenants herein
made and the certifications herein authorized are for the
benefit of the holders from time to time of said Bonds and may
be relied upon by said holders and bond counsel for the City.
SECTION 14: Sale of Bonds -Official Statement
Approval. The Bonds authorized by this Ordinance are hereby
sold by the City to Raushcer Pierce Refsnes, Paine Webber
Incorporated and Underwood, Neuhaus & Co., Incorporated (herein
referred to collectively as the "Purchasers") in accordance
with the Purchase Contract, dated November 21, 1985, attached
hereto as Exhibit A and incorporated herein by reference as a
part of this Ordinance for all purposes. The City Manager is
hereby authorized and directed to execute said Purchase
Contract for and on behalf of the City and as the act and deed
of this Council, and in regard to the approval and execution of
the Purchase Contract, the Council hereby finds, determines and
declares that the representations, warranties and agreements of
the City (contained in paragraph 6 thereof) are true and
correct in all material respects and shall be honored and
performed by the City.
Furthermore, the -use of the Preliminary Official
Statement, dated November 8, 1985, by the Purchasers in
connection with the public offering and sale of the Bonds is
hereby ratified, confirmed and approved in all respects. The
final Official Statement, being a modification and amendment of
the Preliminary Official Statement to reflect the terms of
sale, attached as Exhibit A to the Purchase Contract (together
with such changes approved by the Mayor, City Manager, City
Attorney or Assistant City Manager for Financial Services, any
one or more of said officials), shall be and is hereby in all
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respects approved and the Purchasers are hereby authorized to
use and distribute said final Official Statement in the
reoffering, sale and delivery of the Bonds to the public. The
Mayor and City Secretary are further authorized and directed to
manually execute and deliver for and on behalf of the City
copies of said Preliminary Official Statement and Official
Statement in final form as may be required by the Purchasers,
and such final Official Statement in the form and content
manually executed by said officials shall be deemed to be
approved by the City Council and constitute the Official
Statement authorized for distribution and use by the Purchasers.
SECTION 15: Special Escrow Agreement Approval and
Execution. The •special Escrow Agreement• (the "Agreement•) by
and between the City and Texas Commerce Bank National
Association, Lubbock, Texas, (the •Escrow Agent"), attached
hereto as Exhibit B and incorporated herein by reference as a
part of this Ordinance for all purposes, is hereby approved as
to form and substance, and such agreement in substantially the
form and substance as said exhibit, together with such changes
or revisions as may be necessary to accomplish the refunding
for the benefit of the City, is hereby authorized to be
executed by the Mayor and City Secretary for and on behalf of
the City and as the act and deed of this City Council; and such
agreement, as executed by said officials shall be deemed
approved by the City Council and constitute the Agreement
herein approved.
Furthermore, the City Manager and Assistant City Manager
for Financial Services, either or both of said officials, in
cooperation with the Escrow Agent are hereby authorized and
directed to make the necessary arrangements for the purchase of
the Federal Securities referenced in the Agreement and the
delivery thereof to the Escrow Agent on the day of delivery of
the Bonds to the Purchasers for deposit to the credit of the
•sPECIAL CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION REFUNDING
BOND ESCROW FUND• (the •Escrow Fund"), including the execution
of the subscription forms for the purchase and issue of the
•united States Treasury Securities -State and Local Government
Series• and the purchase of the •open Market Securities• (at an
aggregate purchase price not to exceed $6,561,819.61) for
deposit to the Escrow Fund; all as contemplated and provided in
Article 717k, V.A.T.C.S., as amended, this Ordinance and the
Agreement.
SECTION 16: Control and Custody of Bonds. The Mayor of
the City shall be and is hereby authorized to take and have
charge of all necessary orders and records, including the
definitive Bonds and the Initial Bonds, pending the
investigation and approval of the Initial Bonds by the Attorney
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General of the State of Texas, and the registration of the
Initial Bonds by the Comptroller of Public Accounts and the
delivery thereof to the Purchasers.
Furthermore, the Mayor and City Secretary of the City and
the City Manager and Assistant City Manager for Financial
Services, any one or more of said officials, are hereby
authorized and directed to furnish and execute such documents
relating to the City and its financial affairs as may be
necessary for the issuance of the Bonds, the approval of the
Attorney General and the registration by the Comptroller of
Public Accounts and, together with the City•s financial
advisor, bond counsel and the Paying Agent/Registrar, make the
necessary arrangements for the delivery of the Initial Bonds to
the Purchasers and the initial exchange thereof for definitive
Bonds.
SECTION 17: Proceeds of Sale. Immediately following
the delivery of the Bonds, the proceeds of sale thereof (less
certain costs of issuance, and accrued interest received from
the Purchasers of the Bonds) shall be deposited with the Escrow
Agent for application and disbursement in accordance with the
provisions of the Agreement. The proceeds of sale of the Bonds
not so deposited with the Escrow Agent for the refunding of the
Prior Issues shall be disbursed for payment of costs of
issuance and deposited in the Interest and Sinking Fund for the
Bonds, all in accordance with written instructions from the
Assistant City Manager for Financial Services.
Additionally, on the date of delivery of the Bonds to the
Purchasers, the City's Assistant City Manager for Financial
Services shall cause to be transferred in immediately available
funds to the Escrow Agent an amount not to exceed the sum shown
· in Section 15 hereof for the purchase of the •open Market
Securities• and representing the maximum amount of available
funds to be contributed by the City to accomplish the refunding.
SECTION 18: Notices to Holders-Waiver. Wherever this
Ordinance provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States
Mail, first class postage prepaid, to the address of each
Holder appearing in the Security Register at ·the close of
business on the business day next preceding the mailing of such
notice.
In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holders, nor any defect in any notice so mailed, shall affect
the sufficiency of such notice with respect to all other
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Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Holder entitled
to receive such notice, either before or after the event with
respect to which such notice is given, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Paying Agent/Registrar, but such filing
shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
SECTION 19: Cancellation. All Bonds surrendered for
payment, transfer, exchange, or replacement, if surrendered to
the Paying Agent/Registrar, shall be promptly cancelled by it
and, if surrendered to the City, shall be delivered to the
Paying Agent/Registrar and, if not already cancelled, shall be
promptly cancelled by the Paying Agent/Registrar. The City may
at any time deliver to the Paying Agent/Registrar for
cancellation any Bonds previously certified or registered and
delivered which the City may have acquired in any manner
whatsoever, and all Bonds so delivered shall be promptly
cancelled by the Paying Agent/Registrar. All cancelled Bonds
held by the Paying Agent/Registrar shall be returned to the
City.
SECTION 20: Printed Opinion. The Purchasers•
obligation to accept delivery of the Bonds is subject to being
furnished a final opinion of Dumas, Huguenin, Boothman &
Morrow, Attorneys, Dallas, Texas, approving the Bonds as to
thei"r validity, said opinion to be dated and delivered as of
the date of delivery and payment for the Bonds. Printing of a
true and correct reproduction of said opinion on the reverse
side of each of the definitive Bonds is hereby approved and
authorized.
SECTION 21: CUSIP Numbers. CUSIP numbers may be
printed or typed on the definitive Bonds. It is expressly
provided, however, that the presence or absence of CUSIP
numbers on the definitive Bonds shall be of no significance or
effect as regards the legality thereof and neither the City nor
attorneys approving the Bonds as to legality are to be held
responsible for CUSIP numbers incorrectly printed or typed on
the definitive Bonds. .
SECTION 22: Benefits of Ordinance. Nothing in this
Ordinance. expressed or implied, is intended or shall be
construed to confer upon any person other than the City, the
Paying Agent/Registrar and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance
or any provision hereof, this Ordinance and all its provisions
being intended to be and being for the sole and exclusive
benefit of the City, the Paying Agent/Registrar and the Holders.
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,....
SECTION 23: Inconsistent Provisions. All ordinances,
orders or resolutions, or parts thereof, which are in conflict
or inconsistent with any provis.ion 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 24: 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 25: Effect of Headings. The Section headings
herein are for convenience only and shall not affect the
construction hereof.
SECTION 26: Construction of Terms. If appropriate in
the context of this Ordinance, words of the singular number
shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words
of the masculine, feminine or neuter gender shall be considered
to include the other genders.
SECTION 27: Severability. If any prov1s1on of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless
be valid, and the City Council hereby declares that . this
Ordinance would have been enacted without such invalid
provision.
SECTION 28: Execution of Paying Agent/ReQistrar
Agreement. The initial contract for services as Paying
Agent/Registrar, attached hereto as Exhibit C is hereby
approved and the Mayor and City Secretary are authorized to
execute the same for and on behalf of the City and as the act
and deed of this City Council.
SECTION 29: Certain Findings. The recitals contained
in the preamble hereof are hereby adopted as findings of fact
by this City Council. It is further found and determined that
the City is receiving full value and consideration in the
refunding of such outstanping bonds.
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SECTION 30: Public Meeting. It is officially found,
determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice
of the time, place, and subject matter of the public business
to be considered at such meeting, including this Ordinance, was
given, all as required by Article 6252-17, Vernon's Texas Civil
Statutes, as amended.
SECTION 31: Effective Date. This Ordinance shall be in
full force and effect from and after its passage on the date
shown below, and it is so ordained.
PASSED AND ADOPTED, on first reading this 21st day of
November, 1985 ·
PASSED AND ADOPTED, on second and final reading this 22nd
day of November, 1985.
CITY OF LUBBOCK, TEXAS
ATTEST:
(City Seal)
0 6 t 0 D
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