HomeMy WebLinkAboutOrdinance No. 733 ORDINANCE
$480,000
CITY OF THE COLONY, TEXAS
PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATIONS
SERIES 1992
Adopted: January 20, 1992
TABLE OF CONTENTS
Page
Recitals 1
ARTICLE I
Definitions and Other Preliminary Matters
Section 1.01. Definitions 1
Section 1.02. Findings 3
Section 1.03. Table of Contents, Titles and Headings 3
Section 1.04. Interpretation 3
ARTICLE II
Security for the Contractual Obligations; Debt Service Fund
Section 2.01. Payment of the Contractual Obligations 4
Section 2.02. Debt Service Fund 4
ARTICLE III
Authorization; General Terms and Provisions
Regarding the Contractual Obligations
Section 3.01. Authorization 5
Section 3.02. Date, Denomination, Maturities
and Interest 5
Section 3.03. Medium, Method and Place of Payment 6
Section 3.04. Control, Execution and Initial
Registration 7
Section 3.05. Ownership 8
Section 3.06. Registration, Transfer and Exchange 9
Section 3.07. Cancellation 10
Section 3.08. Temporary Contractual Obligations 10
Section 3.09. Replacement Contractual Obligations 11
Section 3.10. Contractual Obligations Equally and
Ratably Secured 12
ARTICLE IV
Redemption of Contractual Obligations Before Maturity
Section 4.01. No Redemption 12
ARTICLE V
Paying Agent/Registrar
Section 5.01. Appointment of Initial Paying
Agent/Registrar 12
Section 5.02. Qualifications 12
Section 5.03. Maintaining Paying Agent/Registrar 13
Section 5.04. Termination 13
Section 5.05. Notice of Change to Owners 13
(±)
Section 5.06. Agreement to Perform Duties and Functions 13
Section 5.07. Delivery of Records to Successor 13
ARTICLE VI
Form of the Contractual Obligations
Section 6.01. Form Generally 14
Section 6.02. Form of the Contractual Obligations 14
Section 6.03. CUSIP Registration 19
Section 6.04. Legal Opinion 20
Section 6.05. Statement of Insurance 20
ARTICLE VII
Sale and Delivery of Contractual Obligations;
Deposit of Proceeds
Section 7.01. Sale of Contractual Obligations; Limited
Offering Memorandum 20
Section 7.02. Control and Delivery of Contractual
Obligations 21
Section 7.03. Deposit of Proceeds 21
ARTICLE VIII
Investments
Section 8.01. Investments 22
Section 8.02. Investment Income 22
ARTICLE IX
Particular Representations and Covenants
Section 9.01. Payment of the Contractual Obligations 22
Section 9.02. Other Representations and Covenants 22
ARTICLE X
Default and Remedies
Section 10.01. Events of Default 24
Section 10.02. Remedies for Default 25
Section 10.03. Remedies Not Exclusive 25
ARTICLE XI
Discharge
Section 11.01. Discharge by Payment 25
Section 11.02. Discharge by Deposit 26
ARTICLE XII
Emergency and Effectiveness
Section 12.01. Emergency and Effectiveness 27
EXECUTION 28
SCHEDULE I Description of Property
(ii)
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND
SALE OF CITY OF THE COLONY, TEXAS, PUBLIC
PROPERTY FINANCE CONTRACTUAL OBLIGATIONS,
SERIES 1992, IN THE AGGREGATE PRINCIPAL
AMOUNT OF $480,000; LEVYING A TAX IN PAYMENT
THEREOF; ENACTING OTHER PROVISIONS RELATING
THERETO; AND DECLARING AN EMERGENCY
WHEREAS, the Public Property Finance Act, V.T.C.A., Local
Government Code, Sections 271.001 through 271.009, inclusive,
(the "Act") authorizes, among others, cities to execute,
perform, and make payments under contracts with any person for
the use, acquisition or purchase of personal property as
described in the Act;
WHEREAS, the Act permits the governing body of a city to
execute contracts in any form deemed appropriate by said
governing body in connection with the use, acquisition or
purchase of personal property;
WHEREAS, the City Council of the City of The Colony,
Texas (the "City") has found and deems it necessary, useful and
appropriate for its public purposes to acquire or purchase the
personal property described in Schedule I to this Ordinance;
WHEREAS, the City Council of the City deems it
appropriate to adopt this Ordinance and issue the "Contractual
Obligations" herein authorized as permitted by the Act; and
WHEREAS, the meeting at which this Ordinance is
considered is open to the public as required by law, and public
notice of the time, place and purpose of said meeting was given
as required by Article 6252-17, TEX. REV. CIV. STAT. ANN., as
amended; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS:
ARTICLE I
DEFINITIONS AND OTHER PRELIMINARY MATTERS
Section 1.01. Definitions.
Unless otherwise expressly provided or unless the context
clearly requires otherwise in this Ordinance, the following
terms shall have the meanings specified below:
"City" means the City of The Colony, Texas.
"Closing Date" means the date of the initial delivery of
and payment for the Contractual Obligations.
"Code" means the Internal Revenue Code of 1986, as
amended, including applicable regulations, published rulings
and court decisions thereunder.
"Contractual Obligation" means any of the Contractual
Obligations.
"Contractual Obligation Date" means the date designated
as the date of the Contractual Obligations by Section 3.02(a)
of this Ordinance.
"Contractual Obligations" means the contractual
obligations authorized to be issued by Section 3.01 of this
Ordinance and designated as "City of The Colony, Texas, Public
Property Finance Contractual Obligations, Series 1992," in the
aggregate principal amount of $480,000.
"Debt Service Fund" means the debt service fund
established by Section 2.02 of this Ordinance.
"Event of Default" means any event of default as defined
in Section 10.01 of this Ordinance.
"Fiscal Year" means such fiscal year as shall from time
to time be set by the City Council.
"Initial Contractual Obligation" means the initial
contractual obligation authorized by Section 3.04(d) of this
Ordinance.
"Interest Payment Date" means the date or dates upon
which interest on the Contractual Obligations is scheduled to
be paid until their respective dates of maturity or prior
redemption, such dates being February 15 and August 15 of each
year, commencing August 15, 1992.
"Owner" means the person who is the registered owner of a
Contractual Obligation or Contractual Obligations, as shown in
the Register.
"Paying Agent/Registrar- means initially Ameritrust Texas
National Association, Dallas, Texas, or any successor thereto
as provided in this Ordinance.
"Property" means the personal property listed in Schedule
I to this Ordinance and such substitutions therefor made
pursuant to Section 9.02(g) of this Ordinance.
"Record Date" means the last day of the month next
preceding an Interest Payment Date.
"Register" means the Register specified in Section
3.06(a) of this Ordinance.
"Special Record Date" means the Special Record Date as
prescribed in Section 3.03(b) of this Ordinance.
"State" means the State of Texas.
"Unclaimed Payments" means money deposited with the
Paying Agent/Registrar for the payment of principal of or
interest on the Contractual Obligations as the same come due
and payable and remaining unclaimed by the Owners of such
Contractual Obligations for 90 days after the applicable
payment or redemption date.
Section 1.02. Findings.
The declarations, determinations and findings declared,
made and found in the preamble to this Ordinance are hereby
adopted, restated and made a part of the operative provisions
hereof.
Section 1.03. Table of Contents, Titles and Headinqs.
The table of contents, titles and headings of the
Articles and Sections of this Ordinance have been inserted for
convenience of reference only and are not to be considered a
part hereof and shall not in any way modify or restrict any of
the terms or provisions hereof and shall never be considered or
given any effect in construing this Ordinance or any provision
hereof or in ascertaining intent, if any question of intent
should arise.
Section 1.04. Int__~retation.
(a) Unless the context requires otherwise, words of
the masculine gender shall be construed to include correlative
words of the feminine and neuter genders and vice versa, and
words of the singular number shall be construed to include
correlative words of the plural number and vice versa.
(b) This Ordinance and all the terms and provisions
hereof shall be liberally construed to effectuate the purposes
set forth herein.
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ARTICLE II
SECURITY FOR THE CONTRACTUAL OBLIGATIONS; DEBT SERVICE FUND
Section 2.01. Payment of the Contractual Obligations.
(a) Pursuant to the authority granted by the
Constitution and laws of the State, there shall be levied and
there is hereby levied for the current year and each succeeding
year thereafter while any of the Contractual Obligations or any
interest thereon is outstanding and unpaid, an ad valorem tax
on each one hundred dollars' valuation of taxable property
within the City, at a rate sufficient, within the limit
prescribed by law, to pay the debt service requirements on the
Contractual Obligations, being (i) the interest on the
Contractual Obligations and (ii) a sinking fund for their
payment at maturity or a sinking fund of two percent per annum
(whichever amount is the greater), when due and payable, full
allowance being made for delinquencies and costs of collection.
(b) The ad valorem tax thus levied shall be assessed
and collected each year against all property appearing on the
tax rolls of the City most recently approved in accordance with
law and the money thus collected shall be deposited as
collected to the Debt Service Fund.
(c) Said ad valorem tax, the collections therefrom,
and all amounts on deposit in or required hereby to be
deposited to the Debt Service Fund are hereby pledged and
committed irrevocably to the payment of the principal of and
interest on the Contractual Obligations when and as due and
payable in accordance with their terms and this Ordinance.
(d) If the liens and provisions of this Ordinance
shall be released in a manner permitted by Article XI hereof,
then the collection of such ad valorem tax may be suspended or
appropriately reduced, as the facts may permit, and further
deposits to the Debt Service Fund may be suspended or
appropriately reduced, as the facts may permit. In determining
the aggregate principal amount of outstanding Contractual
Obligations, there shall be subtracted the amount of any
Contractual Obligations that have been duly called for
redemption and for which money has been deposited with the
Paying Agent/Registrar for such redemption.
Section 2.02. Debt Service Fund.
(a) The City hereby establishes a special fund or
account to be designated the "City of The Colony, Texas, Public
Property Finance Contractual Obligations, Series 1992, Debt
Service Fund," said fund to be maintained at an official
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depository bank of the City separate and apart from all other
funds and accounts of the City.
(b) Money on deposit in or required by this Ordinance
to be deposited to the Debt Service Fund shall be used solely
for the purpose of paying the interest on and principal of the
Contractual Obligations when and as due and payable in
accordance with their terms and this Ordinance.
ARTICLE III
AUTHORIZATION; GENERAL TERMS AND PROVISIONS
REGARDING THE CONTRACTUAL OBLIGATIONS
Section 3.01. Authorization.
The City's contractual obligations to be designated "City
of The Colony, Texas, Public Property Finance Contractual
Obligations, Series 1992" (the "Contractual Obligations"), are
hereby authorized to be issued and delivered in accordance with
the Constitution and laws of the State, specifically the Public
Property Finance Act, V.T.C.A., Local Government Code, Sections
271.001 through 271.009, inclusive, and the City's Home-Rule
Charter. The Contractual Obligations shall be issued in the
aggregate principal amount of $480,000 for the purpose of
paying all or a portion of the City's contractual obligations
to be incurred in connection with the acquisition or purchase
of personal property for the City as described in Schedule I
attached hereto, and for paying certain costs related to the
issuance of the Contractual Obligations.
Section 3.02. Date, Denomination, Maturities and
Interest.
(a) The Contractual Obligations shall be dated
February 15, 1992. The Contractual Obligations shall be issued
in fully registered form, without coupons, in the denomination
of $5,000 or any integral multiple thereof and shall be
numbered separately from R-1 and upward, except the Initial
Contractual Obligation described in Section 3.04 ( d), which
shall be numbered T-1.
(b) The Contractual Obligations shall mature on
February 15 in the years and in the principal amounts set forth
in the following schedule:
Year Principal Amount Interest Rate
1993 $120,000 8.15%
1994 130,000 4.25%
1995 135,000 4.50%
1996 45,000 4.70%
1997 50,000 4.90%
(c) Interest shall accrue and be paid on each
Contractual Obligation respectively until its maturity or prior
redemption, from the later of the Contractual Obligation Date
or the most recent Interest Payment Date to which interest has
been paid or provided for, at the rates per annum for each
respective maturity specified in the schedule contained in
subsection (b) above. Such interest shall be payable
semiannually on February 15 and August 15 of each year,
commencing on August 15, 1992, computed on the basis of a
360-day year of twelve 30-day months.
Section 3.03. Medium, Method and Place of Payment.
(a) The principal of, redemption premium, if any, and
interest on the Contractual Obligations shall be paid in lawful
money of the United States of America.
(b) Interest on the Contractual Obligations shall be
payable to the Owners as shown in the Register at the close of
business on the Record Date.
(c) Interest shall be paid by check, dated as of the
Interest Payment Date, and sent, first class United States
mail, postage prepaid, by the Paying Agent/Registrar to each
Owner at the address of each as such appears in the Register or
by such other customary banking arrangement acceptable to the
Paying Agent/Registrar and the Owner; provided, however, the
Owner shall bear all risk and expense of such alternate banking
arrangement.
(d) The principal of each Contractual Obligation shall
be paid to the Owner thereof on the due date, whether at the
maturity date or the date of prior redemption thereof, upon
presentation and surrender of such Contractual Obligation at
the principal corporate office of the Paying Agent/Registrar.
(e) If the date for the payment of the principal of or
interest on the Contractual Obligations shall be a Saturday,
Sunday, legal holiday, or day on which banking institutions in
the city where the Paying Agent/Registrar is located are
required or authorized by law or executive order to close, then
the date for such payment shall be the next succeeding day
which is not a Saturday, Sunday, a legal holiday, or day on
which banking institutions are required or authorized to close,
and payment on such date shall for all purposes be deemed to
have been made on the due date thereof as specified in Section
3.02 of this Ordinance.
(f) Unclaimed Payments shall be segregated in a
special account and held in trust, uninvested by the Paying
Agent/Registrar, for the account of the Owner of the
Contractual Obligations to which the Unclaimed Payments
pertain. Subject to any escheat, abandoned property or similar
law, Unclaimed Payments remaining unclaimed by the Owners
entitled thereto for two years after the applicable payment or
redemption date shall be applied to the next payment or
payments on the Contractual Obligations thereafter coming due
and, to the extent any such money remains after the retirement
of all outstanding Contractual Obligations, shall be paid to
the City to be used for any lawful purpose. Thereafter,
neither the City, the Paying Agent/Registrar nor any other
person shall be liable or responsible to any holders of such
Contractual Obligations for any further payment of such
unclaimed moneys or on account of any such Contractual
Obligations, subject to any applicable escheat law or similar
law.
Section 3.04. Control, Execution and Initial Reqistration.
(a) The Contractual Obligations shall be executed on
behalf of the City by the Mayor and the City Secretary, by
their manual or facsimile signatures, and the official seal of
the City shall be impressed or placed in facsimile thereon.
Such facsimile signatures on the Contractual Obligations shall
have the same effect as if each of the Contractual Obligations
had been signed manually and in person by each of said
officers, and such facsimile seal on the Contractual
Obligations shall have the same effect as if the official seal
of the City had been manually impressed upon each of the
Contractual Obligations.
(b) In the event that any officer of the City whose
manual or facsimile signature appears on the Contractual
Obligations ceases to be such officer before the authentication
of such Contractual Obligations or before the delivery thereof,
such manual or facsimile signature nevertheless shall be valid
and sufficient for all purposes as if such officer had remained
in such office.
(c) Except as provided below, no Contractual
Obligation shall be valid or obligatory for any purpose or be
entitled to any security or benefit of this Ordinance unless
and until there appears thereon the Certificate of Paying
Agent/Registrar substantially in the form provided herein, duly
authenticated by manual execution by an officer or duly
authorized signatory of the Paying Agent/Registrar. It shall
not be required that the same officer or authorized signatory
of the Paying Agent/Registrar sign the Certificate of Paying
Agent/Registrar on all of the Contractual Obligations. In lieu
of the executed Certificate of Paying Agent/Registrar described
above, the Initial Contractual Obligation referred to below and
delivered on the Closing Date shall have attached thereto the
Comptroller's Registration Certificate substantially in the
form provided herein, manually executed by the Comptroller of
Public Accounts of the State, or by his duly authorized agent,
which Certificate shall be evidence that the Contractual
Obligation has been duly approved by the Attorney General of
the State, is a valid and binding obligation of the City, and
has been registered by the Comptroller of Public Accounts of
the State.
(d) On the Closing Date, one initial Contractual
Obligation (the "Initial Contractual Obligation") representing
the entire principal amount of all Contractual Obligations,
payable in stated installments to the initial purchaser, or its
designee, executed with the manual or facsimile signatures of
the Mayor and City Secretary of the City, approved by the
Attorney General of the State, and registered and manually
signed by the Comptroller of Public Accounts of the State, will
be delivered to the initial purchaser or its designee. Upon
payment for the Initial Contractual Obligation, the Paying
Agent/Registrar shall cancel the Initial Contractual Obligation
and deliver registered definitive Contractual Obligations, each
definitive Contractual Obligation having a single, specified
maturity and interest rate, in integral multiples of $5,000, in
accordance with instructions received from the initial
purchaser or its designee. It shall be the duty of the initial
purchaser or its designee to furnish to the Paying
Agent/Registrar, at least five (5) business days prior to the
Closing Date, written instructions on forms which the purchaser
or its designee must request and obtain from, and which shall
be provided by, the Paying Agent/Registrar designating the
names in which such definitive Contractual Obligations are to
be registered, the addresses of the Owners, the respective
maturities, interest rates and denominations. If such written
instructions are not received within the specified time period,
the cancellation of the Initial Contractual Obligation and
delivery of definitive Contractual Obligations in exchange
therefor may be delayed until such instructions are received.
Section 3.05. Ownership.
(a) The City, the Paying Agent/Registrar and any other
person may treat the person in whose name any Contractual
Obligation is registered as the absolute owner of such
Contractual Obligation for the purpose of making and receiving
payment of the principal thereof and redemption premium, if
any, thereon, for the further purpose of making and receiving
payment of the interest thereon (subject to the provisions
herein that interest is to be paid to the person in whose name
the Contractual Obligation is registered on the Record Date),
and for all other purposes, whether or not such Contractual
Obligation is overdue, and neither the City nor the Paying
Agent/Registrar shall be bound by any notice or knowledge to
the contrary.
(b) Ail payments made to the Owner of a Contractual
Obligation shall be valid and effectual and shall discharge the
liability of the City and the Paying Agent/Registrar upon such
Contractual Obligation to the extent of the sums paid.
Section 3.06. Reqistration, Transfer and Exchanq~.
(a) So long as any Contractual Obligations remain
outstanding, the City shall cause the Paying Agent/Registrar to
keep at its principal corporate office a register in which,
subject to such reasonable regulations as it may prescribe, the
Paying Agent/Registrar shall provide for the registration and
transfer of Contractual Obligations in accordance with this
Ordinance.
(b) The ownership of a Contractual Obligation may be
transferred only upon the presentation and surrender of the
Contractual Obligation at the principal corporate office of the
Paying Agent/Registrar with such endorsement or other evidence
of transfer as is acceptable to the Paying Agent/Registrar. No
transfer of any Contractual Obligation shall be effective until
entered in the Register.
(c) The Contractual Obligations shall be exchangeable
upon the presentation and surrender thereof at the principal
corporate office of the Paying Agent/Registrar for a
Contractual Obligation or Contractual Obligations of the same
maturity and interest rate and in a denomination or
denominations of any integral multiple of $5,000, and in an
aggregate principal amount equal to the unpaid principal amount
of the Contractual Obligations presented for exchange. The
Paying Agent/Registrar is hereby authorized to authenticate and
deliver Contractual Obligations exchanged for other Contractual
Obligations in accordance with this Section.
(d) Each exchange Contractual Obligation delivered by
the Paying Agent/Registrar in accordance with this Section
shall constitute an original contractual obligation of the City
and shall be entitled to the benefits and security of this
Ordinance to the same extent as the Contractual Obligation or
Contractual Obligations in lieu of which such exchange
Contractual Obligation is delivered.
(e) No service charge shall be made to the Owner for
the initial registration, subsequent transfer, or exchange for
a different denomination of any of the Contractual Obligations.
The Paying Agent/Registrar, however, may require the Owner to
pay a sum sufficient to cover any tax or other governmental
charge that is authorized to be imposed in connection with the
registration, transfer or exchange of a Contractual Obligation.
Section 3.07. Cancellation.
All Contractual Obligations paid or redeemed before
scheduled maturity in accordance with this Ordinance, and all
Contractual Obligations in lieu of which exchange Contractual
Obligations or replacement Contractual Obligations are
authenticated and delivered in accordance with this Ordinance,
shall be cancelled and proper records made regarding such
payment, redemption, exchange or replacement. The Paying
Agent/Registrar shall then return such cancelled Contractual
Obligations to the City or may in accordance with law destroy
such cancelled Contractual Obligations and periodically furnish
the City with certificates of destruction of such Contractual
Obligations.
Section 3.08. Temporary Contractual Obligations.
(a) Following the delivery and registration of the
Initial Contractual Obligation and pending the preparation of
definitive Contractual Obligations, the City may execute and,
upon the City's request, the Paying Agent/Registrar shall
authenticate and deliver, one or more temporary Contractual
Obligations that are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any denomination,
substantially of the tenor of the definitive Contractual
Obligations in lieu of which they are delivered, without
coupons, and with such appropriate insertions, omissions,
substitutions and other variations as the officers of the City
executing such temporary Contractual Obligations may determine,
as evidenced by their signing of such temporary Contractual
Obligations.
(b) Until exchanged for Contractual Obligations in
definitive form, such Contractual Obligations in temporary form
shall be entitled to the benefit and security of this Ordinance.
(c) The City, without unreasonable delay, shall
prepare, execute and deliver to the Paying Agent/Registrar, and
thereupon, upon the presentation and surrender of the
Contractual Obligation or Contractual Obligations in temporary
form to the Paying Agent/Registrar, the Paying Agent/Registrar
shall authenticate and deliver in exchange therefor a
Contractual Obligation or Contractual Obligations of the same
maturity and series, in definitive form, in the authorized
denomination, and in the same aggregate principal amount, as
the Contractual Obligation or Contractual Obligations in
temporary form surrendered. Such exchange shall be made
without the making of any charge therefor to any Owner.
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Section 3.09. Replacement Contractual Obliqations.
(a) Upon the presentation and surrender to the Paying
Agent/Registrar of a mutilated Contractual Obligation, the
Paying Agent/Registrar shall authenticate and deliver in
exchange therefor a replacement Contractual Obligation of like
tenor and principal amount, bearing a number not
contemporaneously outstanding. The City or the Paying Agent/
Registrar may require the Owner of such Contractual Obligation
to pay a sum sufficient to cover any tax or other governmental
charge that is authorized to be imposed in connection therewith
and any other expenses connected therewith.
(b) In the event that any Contractual Obligation is
lost, apparently destroyed or wrongfully taken, the Paying
Agent/Registrar, pursuant to the applicable laws of the State
and in the absence of notice or knowledge that such Contractual
Obligation has been acquired by a bona fide purchaser, shall
authenticate and deliver a replacement Contractual Obligation
of like tenor and principal amount, bearing a number not
contemporaneously outstanding, provided that the Owner first
complies with the following requirements:
(i) furnishes to the Paying Agent/Registrar
satisfactory evidence of his or her ownership of and the
circumstances of the loss, destruction or theft of such
Contractual Obligation;
(ii) furnishes such security or indemnity as may
be required by the Paying Agent/Registrar to save the
Paying Agent/Registrar and the City harmless;
(iii) pays all expenses and charges in connection
therewith, including, but not limited to, printing costs,
legal fees, fees of the Paying Agent/Registrar and any
tax or other governmental charge that is authorized to be
imposed; and
(iv) satisfies any other reasonable requirements
imposed by the City and the Paying Agent/Registrar.
(c) After the delivery of such replacement Contractual
Obligation, if a bona fide purchaser of the original
Contractual Obligation in lieu of which such replacement
Contractual Obligation was issued presents for payment such
original Contractual Obligation, the City and the Paying Agent/
Registrar shall be entitled to recover such replacement
Contractual Obligation from the person to whom it was delivered
or any person taking therefrom, except a bona fide purchaser,
and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or
expense incurred by the City or the Paying Agent/Registrar in
connection therewith.
(d) In the event that any such mutilated, lost,
apparently destroyed or wrongfully taken Contractual Obligation
has become or is about to become due and payable, the Paying
Agent/Registrar, in its discretion, instead of issuing a
replacement Contractual Obligation, may pay such Contractual
Obligation.
(e) Each replacement Contractual Obligation delivered
in accordance with this Section shall constitute an original
additional contractual obligation of the City and shall be
entitled to the benefits and security of this Ordinance to the
same extent as the Contractual Obligation or Contractual
Obligations in lieu of which such replacement Contractual
Obligation is delivered.
Section 3.10. Contractual Obliqations Equally and
Rata_~blSecure__~d.
All Contractual Obligations from time to time
authenticated and delivered shall be equally and ratably
secured by and under this Ordinance and any additional security
as to the payment of any Contractual Obligations.
ARTICLE IV
REDEMPTION OF CONTRACTUAL OBLIGATIONS BEFORE MATURITY
Section 4.01. No Redemption.
The Contractual Obligations shall not be subject to
redemption before their scheduled maturity.
ARTICLE V
PAYING AGENT/REGISTRAR
Section 5.01. Appointment of Initial Payinq Agent/
Reqistrar.
Ameritrust Texas National Association, Dallas, Texas, is
hereby appointed as the initial Paying Agent/Registrar for the
Contractual Obligations.
Section 5.02. Qualifications_.
Each Paying Agent/Registrar shall be a commercial bank,
trust company organized under the laws of the State or other
entity duly qualified and legally authorized to serve as and
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1396B
perform the duties and services of paying agent and registrar
for the Contractual Obligations.
Section 5.03. Maintaining Payin~ A~ent/Reaistrar.
(a) At all times while any Contractual Obligations are
outstanding, the City will maintain a Paying Agent/Registrar
that is qualified under Section 5.02 of this Ordinance. The
Mayor is hereby authorized and directed to execute an agreement
with the Paying Agent/Registrar specifying the duties and
responsibilities of the City and the Paying Agent/Registrar.
The signature of the Mayor shall be attested by the City
Secretary.
(b) If the Paying Agent/Registrar resigns or otherwise
ceases to serve as such, the City will promptly appoint a
replacement.
Section 5.04. Termination.
The City, upon not less than 60 days notice, reserves the
right to terminate the appointment of any Paying Agent/
Registrar by delivering to the entity whose appointment is to
be terminated written notice of such termination.
Section 5.05. Notice of Change to Owners.
Promptly upon each change in the entity serving as Paying
Agent/Registrar, the City will cause notice of the change to be
sent to each Owner by first class United States mail, postage
prepaid, at the address in the Register, stating the effective
date of the change and the name and mailing address of the
replacement Paying Agent/Registrar.
Section 5.06. Agreement to Perform Duties and Functions.
By accepting the appointment as Paying Agent/Registrar,
the Paying Agent/Registrar is deemed to have agreed to the
provisions of this Ordinance and that it will perform the
duties and functions of Paying Agent/Registrar prescribed
thereby.
Section 5.07. Delivery of Records to Successor.
If a Paying Agent/Registrar is replaced, such Paying
Agent, promptly upon the appointment of a successor, will
deliver the Register (or a copy thereof) and all other
pertinent books and records relating to the Contractual
Obligations to the successor Paying Agent/Registrar.
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1396B
ARTICLE VI
FORM OF THE CONTRACTUAL OBLIGATIONS
Section 6.01. Form Generall .
(a) The Contractual Obligations, including the
Registration Certificate of the Comptroller of Public Accounts
of the State, the Certificate of the Paying Agent/Registrar,
and the Assignment form to appear on each of the Contractual
Obligations, (i) shall be substantially in the form set forth
in this Article, with such appropriate insertions, omissions,
substitutions, and other variations as are permitted or
required by this Ordinance, and (ii) 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, consistently
herewith, may be determined by the City or by the officers
executing such Contractual Obligations, as evidenced by their
execution thereof.
(b) Any portion of the text of any Contractual
Obligations may be set forth on the reverse side thereof, with
an appropriate reference thereto on the face of the Contractual
Obligations.
(c) The definitive Contractual Obligations, if any,
shall be printed, lithographed, or engraved, and may be
produced by any combination of these methods or produced in any
other similar manner, all as determined by the officers
executing such Contractual Obligations, as evidenced by their
execution thereof.
(d) The Initial Contractual Obligation submitted to
the Attorney General of the State may be typewritten and
photocopied or otherwise reproduced.
Section 6.02. Form of the Contractual Obliqations.
The form of the Contractual Obligations, including the
form of the Registration Certificate of the Comptroller of
Public Accounts of the State, the form of Certificate of the
Paying Agent/Registrar and the form of Assignment appearing on
the Contractual Obligations, shall be substantially as follows:
-14-
(a) Form of Contractual Obliaation.
REGISTERED REGISTERED
No. $
United States of America
State of Texas
COUNTY OF DENTON
CITY OF THE COLONY, TEXAS
PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATION
SERIES 1992
INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP NUMBER:
% February 15, 1992
The City of The Colony (the "City"), in the County of
Denton, State of Texas, for value received, hereby promises to
pay to
or registered assigns, on the Maturity Date specified above,
the sum of
DOLLARS
without the right of prior redemption, and to pay interest on
such principal amount from the later of the Dated Date
specified above or the most recent interest payment date to
which interest has been paid or provided for until payment of
such principal amount has been paid or provided for, 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 to be
paid semiannually on February 15 and August 15 of each year,
commencing August 15, 1992.
The principal of this Contractual Obligation shall be
payable without exchange or collection charges in lawful money
of the United States of America upon presentation and surrender
of this Contractual Obligation at the principal corporate
office of the Paying Agent/Registrar executing the registration
certificate appearing hereon. Interest on this Contractual
Obligation is payable by check dated as of the interest payment
date, and will be mailed by the Paying Agent/Registrar to the
registered owner at the address shown on the registration books
kept by the Paying Agent/Registrar or by such other customary
banking arrangement acceptable to the Paying Agent/Registrar
and the registered owner; provided, however, such registered
owner shall bear all risk and expense of such alternate banking
arrangement. For the purpose of the payment of interest on
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this Contractual Obligation, the registered owner shall be the
person in whose name this Contractual Obligation is registered
at the close of business on the "Record Date," which shall be
the last day of the month next preceding such interest payment
date.
If the date for the payment of the principal of or
interest on this Contractual Obligation shall be a Saturday,
Sunday, legal holiday, or day on which banking institutions in
the city where the Paying Agent/Registrar is located are
required or authorized by law or executive order to close, the
date for such payment shall be the next succeeding day which is
not a Saturday, Sunday, legal holiday, or day on which banking
institutions are required or authorized to close, and payment
on such date shall for all purposes be deemed to have been made
on the original date payment was due.
This Contractual Obligation is one of a series of fully
registered contractual obligations specified in the title
hereof issued in the aggregate principal amount of $480,000
(herein referred to as the "Contractual Obligations"), issued
pursuant to a certain ordinance of the City (the "Ordinance")
for the purpose of paying all or a portion of the City's
contractual obligations to be incurred in connection with the
acquisition or purchase of personal property for the City and
to pay the costs incurred in connection with the issuance of
the Contractual Obligations.
This Contractual Obligation is not subject to redemption
prior to maturity.
As provided in the Ordinance, and subject to certain
limitations therein set forth, this Contractual Obligation is
transferable upon surrender of this Contractual Obligation for
transfer at the principal corporate office of the Paying Agent/
Registrar with such endorsement or other evidence of transfer
as is acceptable to the Paying Agent/Registrar; thereupon, one
or more new fully registered Contractual Obligations of the
same stated maturity, of authorized denominations, bearing the
same rate of interest, and for the same aggregate principal
amount will be issued to the designated transferee or
transferees.
The City, the Paying Agent/Registrar, and any other
person may treat the person in whose name this Contractual
Obligation is registered as the owner hereof for the purpose of
receiving payment as herein provided (except interest shall be
paid to the person in whose name {his Contractual Obligation is
registered on the Record Date), and for all other purposes,
whether or not this Contractual Obligation be overdue, and
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neither the City nor the Paying Agent/Registrar shall be
affected by notice to the contrary.
IT IS HEREBY CERTIFIED AND RECITED that the issuance of
this Contractual Obligation and the series of which it is
part is duly authorized by law; that all acts, conditions, and
things to be done precedent to and in the issuance of this
Contractual Obligation and the series of which it is a part,
have been properly done, have happened, and have been performed
in regular and due time, form, and manner as required by law;
that proper provisions have been made for the levy and
collection annually of taxes upon all taxable property in said
City sufficient within the limits prescribed by law to pay the
interest on this Contractual Obligation and the series of which
it is a part as due and to provide for the payment of the
principal as the same matures; that when so collected, such
taxes shall be appropriated to such purpose; and that the total
indebtedness of the City, including the Contractual
Obligations, does not exceed any constitutional or statutory
limitation.
IN WITNESS WHEREOF, the City has caused this Contractual
Obligation to be executed by the manual or facsimile signature
of the Mayor of the City and countersigned by the manual or
facsimile signature of the City Secretary, and the official
seal of the City has been duly impressed or placed in facsimile
on this Contractual Obligation.
City Secretary Mayor,
City of The Colony, Texas City of The Colony, Texas
[SEAL]
(b) Form of Comptroller's Reqistration Certificate.
The following Comptroller's Registration Certificate may
be deleted from the definitive Contractual Obligations if such
certificate on the Initial Contractual Obligation is fully
executed.
OFFICE OF THE COMPTROLLER ~
OF PUBLIC ACCOUNTS ~ REGISTER NO.
OF THE STATE OF TEXAS ~
I hereby certify that there is on file and of record in
my office a certificate of the Attorney General of the State of
Texas to the effect that this Contractual Obligation has been
examined by him as required by law, that he finds that it has
been issued in conformity with the Constitution and laws of the
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13968
State of Texas, and that it is a valid and binding obligation
of the City of The Colony, Texas; and that this Contractual
Obligation has this day been registered by me.
Witness my hand and seal of office at Austin, Texas,
Comptroller of Public Accounts
of the State of Texas
[SEAL]
(c) Form of Certificate of Pa¥in~ A~ent/Reqistrar.
The following Certificate of Paying Agent/Registrar may
be deleted from the Initial Contractual Obligation if the
Comptroller's Registration Certificate appears thereon.
CERTIFICATE OF PAYING AGENT/REGISTRAR
The records of the Paying Agent/Registrar show that the
Initial Contractual Obligation of this series of contractual
obligations was approved by the Attorney General of the State
of Texas and registered by the Comptroller of Public Accounts
of the State of Texas, and that this is one of the Contractual
Obligations referred to in the within-mentioned Ordinance.
Ameritrust Texas National
Association, Dallas, Texas,
as Paying Agent/Registrar
Dated: By:
Authorized Signatory
(d) Form of Assiqnment.
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 Contractual Obligation and all rights hereunder and
hereby irrevocably constitutes and appoints
attorney to transfer the within
Contractual Obligation on the books kept for registration
hereof, with full power of substitution in the premises.
Dated:
NOTICE: The signature on this
Assignment must correspond with
Signature Guaranteed By: the name of the registered
owner as it appears on the face.
of the within Contractual
Obligation in every particular
and must be guaranteed by an
officer of a federal or state
bank or a member of the
Authorized Signatory National Association of
Securities Dealers.
(e) The Initial Contractual Obligation shall be
substantially in the form set forth in subsections (a) through
(d) of this Section, except for the following alterations:
(i) immediately under the name of the
Contractual Obligation, the headings "INTEREST RATE" and
"MATURITY DATE" shall be completed with the words "As
shown below";
(ii) in the first paragraph of the Contractual
Obligation, the words "on the Maturity Date specified
above," shall be deleted and the following will be
inserted: "on February 15 in the years, in the principal
installments and bearing interest at the per annum rates
set forth in the following schedule:
Principal
Years Installment~ Interest Rates"
(Information to be inserted from
schedule in Section 3.02(b) of this Ordinance)
(iii) in the second paragraph, the words
"executing the registration certificate appearing hereon"
shall be deleted and an additional sentence shall be
added to the paragraph as follows: "The initial Paying
Agent/Registrar is Ameritrust Texas National Association,
Dallas, Texas."; and
(iv) the Initial Contractual Obligation shall be
numbered T-1.
Section 6.03. CUSIP Reqistration.
The City may secure identification numbers through the
CUSIP Service Bureau Division of Standard & Poor's Corporation,
New York, New York, and may authorize the printing of such
numbers on the face of the Contractual Obligations. It is
expressly provided, however, that the presence or absence of
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13968
CUSIP numbers on the Contractual Obligations shall be of no
significance or effect as regards the legality thereof and
neither the City nor the attorneys approving said Contractual
Obligations as to legality are to be held responsible for CUSIP
numbers incorrectly printed on the Contractual Obligations.
Section 6.04. Lea__~_~inion.
The approving legal opinion of Hutchison Boyle Brooks &
Fisher, A Professional Corporation, Dallas, Texas, Bond
Counsel, may be printed on the reverse side of or attached to
each Contractual Obligation over the certification of the City
Secretary of the City, which may be executed in facsimile.
Section 6.05. Statement of Insurance.
A statement relating to a municipal bond insurance
policy, if any, to be issued for the Contractual Obligations
may be printed on or attached to each Contractual Obligation.
ARTICLE VII
SALE AND DELIVERY OF CONTRACTUAL OBLIGATIONS;
DEPOSIT OF PROCEEDS
Section 7.01. Sale of Contractual Obliqations; 0fficia]
Statement.
(a) The Contractual Obligations are hereby sold and
shall be delivered to Prudential Securities Incorporated (the
"Purchaser"), for a price of par plus accrued interest to the
Closing Date, being the best bid submitted at said public sale.
(b) The Official Notice of Sale and the Official Bid
Form prepared and distributed in connection with the sale of
the Contractual Obligations are hereby approved, confirmed and
adopted as official documents of the City. The form and
substance of the Official Statement, and any addenda,
supplement or amendment thereto (the "Official Statement),
prepared and distributed in connection with the offering and
sale of the Contractual Obligations, is hereby approved,
confirmed, and adopted and is hereby deemed final as of its
date (except for the omission of pricing and related
information) within the meaning and for purposes of paragraph
(b)(1) of Rule 15c2-12 under the Securities Exchange Age of
1934, as amended.
(c) The use of the Official Statement in the offering
and sale of the Contractual Obligations, is hereby approved,
authorized, and ratified.
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1396B
(d) The signing of the Official Statement by the Mayor
and the City Secretary is hereby approved, authorized, and
ratified.
(e) All officers of the City are hereby authorized to.
execute such documents, certificates, and receipts, and to make
suchy elections with respect to the tax-exempt status thereof,
as they may deem appropriate in order to consummate the
delivery of the Contractual Obligations in accordance with the
terms of sale therefor.
(f) The obligation of the purchaser identified in
subsection (a) of this Section to accept delivery of the
Contractual Obligations is subject to such purchaser being
furnished with the final, approving opinion of Hutchison Boyle
Brooks & Fisher, A Professional Corporation, Dallas, Texas,
Bond Counsel for the City, which opinion shall be dated and
delivered the Closing Date.
Section 7.02. Control and Delivery of Contractual
Obliqations.
(a) The Mayor of the City is hereby authorized to have
control of the Initial Contractual Obligation and all necessary
records and proceedings pertaining thereto pending
investigation, examination and approval of the Attorney General
of the State, registration by the Comptroller of Public
Accounts of the State, and registration with, and initial
exchange or transfer by, the Paying Agent/Registrar.
(b) After registration by the Comptroller of Public
Accounts of the State, delivery of the Contractual Obligations
shall be made to the initial purchaser thereof under and
subject to the general supervision and direction of the Mayor,
against receipt by the City of all amounts due to the City
under the terms of sale.
Section 7.03. DeDosit of Proceeds.
The proceeds of the sale of the Contractual Obligations
shall be deposited to a special acquisition fund, such moneys
to be dedicated and used solely for the purposes of paying the
costs of acquiring or purchasing the Property and the costs of
issuance with respect to the Contractual Obligations. Until
disbursed for the acquisition of property, the Contractual
Obligations are secured and payable from amounts held in such
special acquisition fund. Moneys remaining in such special
acquisition fund following the completion of the acquisition of
the Property shall be deposited to the Debt Service Fund.
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ARTICLE VIII
INVESTMENTS
Section 8.01. Investments.
(a) Money in the Debt Service Fund, created by this
Ordinance, at the option of the City, may be invested in such
securities or obligations as are permitted under applicable law.
(b) Any securities or obligations in which money is so
invested in the Debt Service Fund shall be kept and held in
trust for the benefit of the Owners and shall be sold and the
proceeds of sale shall be timely applied to the making of all
payments required to be made from the fund from which the
investment was made.
Section 8.02. ~nvestment Income.
Interest and income derived from investment of the Debt
Service Fund shall be credited to such Fund.
ARTICLE IX
PARTICULAR REPRESENTATIONS AND COVENANTS
Section 9.01. Payment of the Contractual Obliqations.
On or before each Interest Payment Date of the
Contractual Obligations and while any of the Contractual
Obligations are outstanding and unpaid, there shall be made
available to the Paying Agent/Registrar, out of the Debt
Service Fund, money sufficient to pay such interest on and
principal of the Contractual Obligations as will accrue or
mature on the applicable Interest Payment Date or date of prior
redemption.
Section 9.02. Other Representations and Covenants.
(a) The City will faithfully perform, at all times,
any and all covenants, undertakings, stipulations, and
provisions contained in this Ordinance and in each Contractual
Obligation; the City will promptly pay or cause to be paid the
principal of and interest on each Contractual Obligation on the
dates and at the places and manner prescribed in such
Contractual Obligation; and the City will, at the times and in
the manner prescribed by this Ordinance, deposit or cause to be
deposited the amounts of money specified by this Ordinance.
(b) The City is duly authorized under the laws of the
State to issue the Contractual Obligations; all action on its
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part for the creation and issuance of the Contractual
Obligations has been duly and effectively taken; and the
Contractual Obligations in the hands of the Owners thereof are
and will be valid and enforceable obligations of the City in
accordance with their terms.
(c) The City hereby represents that the proceeds of
the Contractual Obligations are needed at this time to provide
funds for the City's purchase of the property for which the
Contractual Obligations were issued, as specified in this
Ordinance; that based on current facts, estimates, and
circumstances, it is reasonably expected that final
disbursement of the proceeds of the Contractual Obligations
will occur within three years after the Closing Date, that
substantial binding obligations to purchase such property will
be incurred within six months after such date, and that the
acquisition of the property will proceed with due diligence to
completion; that it is not reasonably expected that the
proceeds of the Contractual Obligations or money deposited in
the Debt Service Fund will be used or invested in a manner that
would cause the Contractual Obligations to be or become
"arbitrage bonds," within the meaning of Section 148 of the
Code; and that, except for the Debt Service Fund, no other
funds or accounts have been established or pledged to the
payment of the Contractual Obligations.
(d) The City will not take any action or fail to take
any action with respect to the investment of the proceeds of
the Contractual Obligations or any other funds of the City,
including amounts received from the investment of any of the
foregoing, that, based upon the facts, estimates, and
circumstances known on the Closing Date, would result in
constituting the Contractual Obligations "arbitrage bonds,"
within the meaning of such Section 148(f) of the Code, and the
City will not take any deliberate action motivated by arbitrage
that would have such result.
(e) Proper officers of the City charged with the
responsibility of issuing the Contractual Obligations are
hereby directed to make, execute, and deliver certifications as
to facts, estimates, and circumstances in existence as of the
Closing Date and stating whether there are any facts,
estimates, or circumstances that would materially change the
City's current expectations.
(f) The City will comply with the provisions of
Section 148(f) of the Code, and the regulations promulgated
thereunder, relating to paying certain excess earnings of
investments of proceeds of the Contractual Obligations to the
United States of America.
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(g) The City may make any changes in the description
of the Property listed on Schedule I to this Ordinance or of
any component thereof whenever the City deems such changes to
be necessary and appropriate and provided that the nature of
the Property after such changes will constitute qualified~
property eligible for financing under the Act and such changes
shall not adversely affect the tax-exempt status of the
Contractual Obligations.
(h) The Certificates are hereby designated "qualified
tax exempt obligatons" for purposes of Section 265 of the
Code. The Certificates are not "private activity bonds" as
defined in the Code and neither the City nor any of its
subordinate entities, if any, reasonably expect to issue in
excess of $10,000,000 aggregate amount of qualified tax exempt
obligations during the calendar year in which the Certificates
are issued. The City hereby covenants not to designate more
than $10,000,000 aggregate amount of qualified tax exempt
obligations during the calendar year in which the Certificates
are issued.
(i) The covenants and representations made or required
by this Section are for the benefit of the Owners and may be
relied upon by the Owners and Bond Counsel for the City.
ARTICLE X
DEFAULT AND REMEDIES
Section 10.01. Events of Default.
Each of the following occurrences or events for the
purpose of this Ordinance is hereby declared to be an Event of
Default:
(i) the failure to make payment of the
principal of, redemption premium, if any, or interest on
any of the Contractual Obligations when the same becomes
due and payable; or
(ii) default in the performance or observance of
any other covenant, agreement, or obligation of the City,
which default materially, adversely affects the rights of
the Owners, including but not limited to, their prospect
or ability to be repaid in accordance with this
Ordinance, and the continuation thereof for a period of
60 days after notice of such default is given by any
Owner to the City.
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1396B
Section 10.02. Remedies for Default.
(a) Upon the happening of any Event of Default, then
and in every case any Owner or an authorized representative
thereof, including but not limited to, a trustee therefor, may.
proceed against the City for the purpose of protecting and
enforcing the rights of the Owners under this Ordinance, by
mandamus or other suit, action or special proceeding in equity
or at law, in any court of competent Jurisdiction, for any
relief permitted by law, including the specific performance of
any covenant or agreement contained herein, or thereby to
enjoin any act or thing that may be unlawful or in violation of
any right of the Owners hereunder or any combination of such
remedies.
(b) It is provided that all such proceedings shall be
instituted and maintained for the equal benefit of all Owners
of Contractual Obligations then outstanding.
Section 10.03. Remedies Not Exclusive.
(a) No remedy herein conferred or reserved is intended
to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or under the
Contractual Obligations or now or hereafter existing at law or
in equity; provided, however, that notwithstanding any other
provision of this Ordinance, the right to accelerate the debt
evidenced by the Contractual Obligations shall not be available
as a remedy under this Ordinance.
(b) The exercise of any remedy herein conferred or
reserved shall not be deemed a waiver of any other available
remedy.
ARTICLE XI
DISCHARGE
Section 11.01. Discharge by Payment.
When all or any portion of the Contractual Obligations
have been paid in full as to principal and as to interest and
redemption premium, if any, or when all or any portion of the
Contractual Obligations have become due and payable, whether at
maturity or by prior redemption or otherwise, and the City
shall have provided for the payment of the whole amount due or
to become due on such Contractual Obligations then outstanding,
including such interest that has accrued thereon or that may
accrue to the date of maturity or prior redemption, and any
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13968
premium due or that may become due at maturity or prior
redemption, by depositing with the Paying Agent/Registrar, for
payment of the principal of such outstanding Contractual
Obligations and the interest accrued thereon and any redemption
premium due thereon, the entire amount due or to become due
thereon, and the City shall also have paid or caused to be paid
all sums, other than debt service, due and payable under this
Ordinance by the City, including the compensation due or to
become due the Paying Agent/Registrar, then the Paying
Agent/Registrar, upon receipt of a letter of instructions from
the City requesting the same, shall discharge and release the
lien of this Ordinance as it relates to such Contractual
Obligations and execute and deliver to the City such releases
or other instruments as shall be requisite to release the lien
hereof.
Section 11.02. Discharqe by Deposit.
(a) The City may discharge its obligation to pay the
principal of, redemption premium, if any, and interest on all
or any portion of the Contractual Obligations and its
obligation to pay other sums payable or to become payable under
this Ordinance by the City, including the compensation due or
to become due the Paying Agent/Registrar, in accordance with
the following provisions:
(i) depositing or causing to be deposited with
the Paying Agent/Registrar an amount of money that,
together with the interest earned on or capital gains or
profits to be realized from the investment of such money,
will be sufficient to pay the principal of, redemption
premium, if any, and accrued interest on such Contractual
Obligations to maturity or to the date fixed for prior
redemption of such Contractual Obligations, and to pay
such other amounts as may be reasonably estimated by the
Paying Agent/Registrar to become payable under this
Ordinance with respect to the Contractual Obligations
being provided for, including the compensation due or to
become due the Paying Agent/Registrar; and
(ii) providing the Paying Agent/Registrar with
an opinion of nationally recognized bond counsel
acceptable to the Paying Agent/Registrar to the effect
that the deposit specified in subdivision (i) of this
subsection (a) will not cause the interest on any of the
Contractual Obligations to become subject to federal
income taxation.
(b) Subject to subsection (c) of this Section, upon
compliance with subsection (a) of this Section, the Contractual
Obligations for the payment of which provision is thus made
shall no longer be regarded as outstanding and unpaid, and the
Paying Agent/Registrar, upon receipt of a letter of
instructions from the City requesting the same, shall discharge
-26-
and release the lien of this Ordinance as to such Contractual
Obligations and shall execute and deliver to the City such
releases or other instruments as shall be requisite to release
the lien hereof.
(c) Before the discharge and release of any portion of
the lien of this Ordinance pursuant to this Section, the City
shall make the following provisions with the Paying Agent/
Registrar:
(i) the establishment of a separate escrow
account fund with the Paying Agent/Registrar for the
deposit pursuant to subsection (a)(i) of this Section;
(ii) the payment to the Owners at the date of
maturity or at the date fixed for prior redemption, as
applicable, of the full amount to which the Owners of the
appropriate Contractual Obligations would be entitled by
way of principal, redemption premium, if any, and
interest to the date of such maturity or prior redemption;
(iii) the investment of such moneys by the Paying
Agent/Registrar in direct obligations of the United
States of America, including obligations the principal of
and interest on which are unconditionally guaranteed by
the United States of America, and which may be in book
entry form, maturing and/or bearing interest payable at
such times and in such amounts as will be sufficient to
provide for the scheduled payments and/or redemption of
such Contractual Obligations;
(iv) the sending of written notice by registered
or certified United States mail to the Owner of each
appropriate Contractual Obligation then outstanding
within 30 days following the date of such deposit that
such moneys are so available for such payment; and
(v) the payment to the City, periodically or
following final payment of the principal of, redemption
premium, if any, and interest on the appropriate
Contractual Obligations, of any moneys, interest
earnings, profits or capital gains over and above the
amounts necessary for such purposes.
ARTICLE XII
EMERGENCY AND EFFECTIVENESS
Section 12.01. The public importance of this measure and
the fact that it is in the best interest of the City to provide
funds for the purchase of the property listed on Schedule I
hereto creates an emergency which requires that this Ordinance
shall take effect and be in force from and after its passage
and approval.
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1396B
//F~NALLY PASSED, APPROVED AND EFFECTIVE this c~
TMday
°f~'1992.
Mayor, j~
City of The Colony, T~
ATTEST:
City Secretary,
City of The Colony, Texas
[SEAL]
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1396B
Schedule I
Initial Description of Personal Prooertv to be Purchase, t
General Fund
General Administration Cost
Check Imprinter $ 1,S00
Computer System 30,000
Records Management Software Package 680
Telephone
Calculator 400
80
Parks & Recreation
Aluminum Player Benches 1,100
1S Foot Equipment Trailer 1 950
Front Deck Mower '
Weed-Eater 9,000
4O0
Folding Chairs 250
Hand Mower 300
Commercial ~eed-Eater 400
12' x 18' Storage Building 1,600
Picnic Tables 500
Rolling Equipment Baskets 300
Dri-Deck Surface Covering 900
1/2 Ton Pick-up Truck 14,850
Top Mount Box for Animal Control Vehicle 3,500
S-10 Lock Boxes 300
Typewriter 480
Heart Monitor/Defibrillators 19,460
Outdoor Early Warning Siren 7,000
Chris Clean CPR Manikins 1,690
14' x 18' Salvage Covers 1,540
SCBA Facepieces 2,160
IBM Wheelwriter Typewriter ~ 630
SCBA Bottles 3,150
Complete "MSA" SCBA 3,200
New Air Compressor System 14,000
Police DePartment
Police Vehicles $ 37,000
Set of Anatomical Dolls 230
File Cabinet 250
3/8" Reversible Drill 250
I Ton Chain Hoist 150
Pistol Locker 250
Set of Evidence Lockers 130
35mm Cameras 400
Radar Units 3,400
Acoustical Panels 2,200
Audio Visual Carts 260
TV/VCR Combination 500
File Server/Novell 6,000
Opaque Projector 1,000
Public Works
Base & Remote Radio Hook-up 1,840
Front End Loader 26,000
Arrow Sticks 940
Hydrostatic 72" Front Mount Riding Mower 8,400
3/4 Ton Pick-up Truck 15,000
Tailgate Sand Spreader 2,300
65HP Concrete Saw 7.000
General Fund Total $235,120
Utility Fund
ate a tment
Desk Chair $ 180
i 1/2" Drive Variable Speed Drill 200
20" Push Type Mowers 210
Gasoline Powered Weed-Eater 480
Set of 3/4" Sockets 600
Small Tractor with 4' Mower 11,000
Wastewater
Field Probe 220
Cycle-tired Mower 1,000
Repetitive Dispensers 300
Stirring Plate 180
1992 Chevrolet S-10 Pick-up Truck 11,000
2800 Watt Portable Engine Generator 700
Automatic Sampler 3,000
Balance: Top Loading 350
Utility Administration
Calculator 110
Uninterruptible Power System for NCR Tower Computer System 800
Telephone Headsets 180
Fleet MainteDance
Freon Recycling Machine $ 2,250
Calculator 110
1/2" H.D. Electric Drill Motor 230
Four Wheeled Drum Truck 220
Total Utility Fund $ 33,320
TOTAL CAPITAL OUTLAY $268,440
RADIO SYSTEM 200,000
COST OF ISSUANCE 11,000
MISCEL~NEOUS 560
TOTAL ~MOUNT TO BE IBBUED $480~000