HomeMy WebLinkAboutOrdinance No. 903 Ordinance No. 903
ORDINANCE
AUTHORIZING THE ISSUANCE OF
$10,655,000
CITY OF THE COLONY, TEXAS
COMBINATION TAX AND REVENUE REFUNDING BONDS
TAXABLE SERIES 1995
Adopted September 18, 1995
Recitals ......................................................................... 1
ARTICLE I
DEFINITIONS AND OTHER PRELIMINARY MATTERS
Section 1.01. Definitions ............................................................. 3
Section 1.02. Other Definitions ........................................................ 5
Section 1.03. Findings ............................................................... 5
Section 1.04. Table of Contents, Titles and Headings ....................................... 5
Section 1.05. Interpretation ............................................................ 5
ARTICLE II
SECURITY FOR THE BONDS
Section 2.01. Tax Levy for Payment of the Bonds .......................................... 5
Section 2.02. Revenue Pledge .......................................................... 6
Section 2.03. Rates and Charges ........................................................ 6
Section 2.04. Additional Revenue Obligations ............................................. 7
ARTICLE III
AUTHORIZATION; GENERAL TERMS AND PROVISIONS
REGARDING THE BONDS
Section 3.01. Authorization ........................................................... 7
Section 3.02. Date, Denomination, Maturities, Numbers and Interest ........................... 7
Section 3.03. Medium, Method and Place of Payment ....................................... 8
Section 3.04. Execution and Initial Registration ........................................... 9
Section 3.05. Ownership .............................................................. 9
Section 3.06. Registration, Transfer and Exchange ........................................ 10
Section 3.07. Cancellation and Authentication ............................................ 11
Section 3.08. Temporary Bonds ....................................................... 11
Section 3.09. Replacement Bonds ..................................................... 12
Section 3.10. Book-Entry Only System ................................................. 13
Section 3.11. Successor Securities Depository; Transfer Outside Book-Entry Only System ........ 13
Section 3.12. Payments to Cede & Co ................................................... 14
ARTICLE IV
REDEMPTION OF BONDS BEFORE MATURITY
Section 4.01. Limitation on Redemption ................................................ 14
ARTICLE V
PAYING AGENT/REGISTRAR
Section 5.01. Appointment of Initial Paying Agent/Registrar ................................ 14
Section 5.02. Qualifications .......................................................... 15
Section 5.03. Maintaining Paying Agent/Registrar ........................................ 15
Section 5.04. Termination ............................................................ 15
Section 5.05. Notice of Change to Owners ............................................... 15
Section 5.06. Agreement to Perform Duties and Functions .................................. 16
Section 5.07. Delivery of Records to Successor ........................................... 16
ARTICLE VI
FORM OF THE BONDS
Section 6.01. Form Generally ......................................................... 16
Section 6.02. Form of Bonds ......................................................... 16
Section 6.03. CUSIP Registration ...................................................... 21
Section 6.04. Legal Opinion .......................................................... 22
Section 6.05. Municipal Bond Insurance ................................................ 22
ARTICLE VII
SALE OF THE BONDS;
CONTROL AND DELIVERY OF THE BONDS
Section 7.01. Sale of Bonds; Official Statement .......................................... 22
Section 7.02. Control and Delivery of Bonds ............................................. 22
Section 7.03. Deposit of Proceeds ..................................................... 23
ARTICLE VIII
CREATION OF FUNDS AND ACCOUNTS;
DEPOSIT OF PROCEEDS; INVESTMENTS
Section 8.01. Creation of Funds ....................................................... 23
Section 8.02. Interest and Sinking Fund ................................................. 23
Section 8.03. SecurityofFunds ....................................................... 23
Section 8.04. Investments ............................................................ 24
Section 8.05. Investment Income ...................................................... 24
Section 8.06. Escrow Fund .......................................................... 24
ARTICLE IX
PARTICULAR REPRESENTATIONS AND COVENANTS
Section 9.01. Payment of the Bonds .................................................... 24
Section 9.02. Other Representations and Covenants ....................................... 24
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 ................................................... 25
ARTICLE XII
SUBSCRIPTION FOR SECURITIES; APPROVAL OF ESCROW AGREEMENT
Section 12.0l. Subscription for Securities ............................................... 26
Section 12.02. Approval of Escrow Agreement ........................................... 26
ARTICLE XIII
REFUNDED BONDS
Section 13.01. Source of Funds for Refunding ............................................ 27
Section 13.02. Redemption of Refunded Bonds ........................................... 27
Section 13.03. Payment of Paying Agency Fees .......................................... 27
ARTICLE XIV
CONTINUING DISCLOSURE UNDERTAKING
Section 14.01. Definitions of Continuing Disclosure Terms ................................. 27
Section 14.02. Annual Reports ........................................................ 27
Section 14.03. Material Event Notices .................................................. 28
Section 14.04. Limitations, Disclaimers and Amendments .................................. 29
ARTICLE XV
MUNICIPAL BOND INSURANCE
Section 15.01. Application ........................................................... 30
Section 15.02. Consent of AMBAC Indemnity ........................................... 30
Section 15.03. Consent of AMBAC Indemnity in Addition to Bondholder Consent .............. 30
Section 15.04. Consent of AMBAC Indemnity Upon Default ................................ 30
Section 15.05. Bonds to Remain Outstanding ............................................ 30
EXECUTION ...................................................................... 30
Ordinance No. 903
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS,
AUTHORiZING THE ISSUANCE AND SALE OF CITY OF ~ COLONY, TEXAS,
COMBINATION TAX AND REVENUE REFUNDING BONDS, TAXABLE SERIES
1995, IN THE AGGREGATE PRINCIPAL AMOUNT OF $10,655,000; AWARDING THE
SALE THEREOF; APPROVING THE OFFICIAL STATEMENT; PROVIDING FOR THE
SECURITY FOR AND PAYMENT OF SAID BONDS; AND ENACTING OTI-~R
PROVISIONS RELATING TO THE SUBJECT
WHEREAS, there are presently outstanding bonds assumed by the City payable from ad valorem
taxes levied and to be levied, assessed and collected within the City, and from revenues of the City's
waterworks and sewer system;
WHEREAS, a portion of such previously issued and outstanding bonds are intended to be and shall
be refunded pursuant to this Ordinance, the bonds to be refunded being described on Schedule I attached
hereto (the "Refunded Bonds").
WHEREAS, the City Council has found and determined that it is necessary and in the best interest
of the City and its citizens that it refund the Refunded Bonds resulting in a gross debt service savings of
approximately $457,110 and a present value debt service savings of approximately $543,380 to the City;
WI-~REAS, the City Council has found and determined that the Refunded Bonds should be refunded
by the issuance of refunding bonds pursuant to this Ordinance and in accordance with the general laws of
the State of Texas, particularly Article 717k, V.A.T.C.S., as amended; and
WHEREAS, it is officially found, determined, and declared that the meeting at which this Ordinance
has been adopted was open to the public and public notice of the time, place and subject matter of the public
business to be considered and acted upon at said meeting, including this Ordinance, was given, all as required
by the applicable provisions of Chapter 551, TEX. GOV'T CODE ANN., as amended; Now Therefor,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY:
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:
"AMBAC Indemnity" means AMBAC Indemnity Corporation, a Wisconsin domiciled stock
insurance company.
"Bond" means any of the Bonds.
"Bonds" means the City's bonds entitled "City of The Colony, Texas, Combination Tax and Revenue
Refunding Bonds, Taxable Series 1995" authorized to be issued by Section 3.01.
"Closing Date" means the date of the initial delivery of and payment for the Bonds.
"Designated Payment/Transfer Office" means (i) with respect to the initial Paying Agent/Registrar
named herein, its off~ce in Dallas, Texas, or at such other location designated by the Paying Agent/Registrar
and (ii) with respect to any successor Paying Agent/Registrar, the office of such successor designated and
located as may be agreed upon by the City and such successor.
"DTC' shall mean The Depository Trust Company of New York, New York, or any successor
securities depository.
"DTC Participant" shall mean brokem and dealers, banks, trust companies, clearing corporations and
certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance
and settlement of securities transactions among DTC Participants.
"Escrow Agent" means Texas Commerce Bank National Association, Dallas, Texas.
"Escrow Agreement" means the escrow agreement, dated as of September 18, 1995, by and between
the City and the Escrow Agent.
"Escrow Fund" means the fund established by the Escrow Agreement to hold cash and securities for
the payment of principal of and interest on the Refunded Bonds.
"Event of Default" means any Event of Default as defined in Section 10.01.
"Initial Bond" means the Bond described in Section 3.04(d) and 6.02(d).
"Interest and Sinking Fund" means the interest and sinking fund established by Section 8.01.
"Interest Payment Date" means the date or dates upon which interest on the Bonds is scheduled to
be paid until the maturity of the Bonds, such dates being February 1 and August I of each year commencing
February 1, 1996.
"Municipal Bond Guaranty Insurance Policy" means the municipal bond insurance policy issued by
AMBAC Indemnity insuring the payment when due of the principal of and interest on the Bonds as provided
therein.
"Net Revenues" shall mean the gross revenues of the City's waterworks and sewer system after
deducting the system's maintenance and operating expenses.
"Ordinance" means this Ordinance.
"Original Issue Date" means the initial date from which interest on the Bonds accrues and which is
designated in Section 3.02(a).
"Owner" means the person who is the registered owner of a Bond or Bonds, as shown in the
Register.
"Paying Agent/Registrar" means initially Texas Commerce Bank National Association, or any
successor thereto as provided in this Ordinance.
"Paying Agent/Registrar Agreement" means the Paying Agent/Registrar Agreement between the City
and the Paying Agent/Registrar relating to the Bonds.
"Pledged Revenues" shall mean, subject to the provisions of Section 2.04 authorizing the issuance
of obligations with a superior, parity or subordinate lien on the Net Revenues, the Net Revenues remaining
after payment of the requirements on the City's Waterworks and Sewer System Revenue Bonds, Series 1991
and Waterworks and Sewer System Revenue Bonds, Series 1995, and any obligations issued on a parity with
such bonds.
"Pumhaser" means the person, finn or entity initially pumhasing the Bonds from the City and which
is designated in Section 7.01.
"Record Date" means the fifteenth day of the month next preceding an Interest Payment Date.
"Register" means the Register specified in Section 3.06(a).
"Representation Letter" means the Letter of Representations between the City and DTC.
"Special Payment Date" means the Special Payment Date prescribed by Section 3.03(b).
"Special Record Date" means the Special Record Date prescribed by Section 3.03(b).
"Unclaimed Payments" means money deposited with the Paying Agent/Registrar for the payment
of the principal, redemption premium, if any, or interest on Bonds as the same become due and payable or
money set aside for the payment of Bonds duly called for redemption prior to maturity and remaining
unclaimed by the Owners of such Bonds for 90 days after the applicable payment or redemption date.
Section 1.02. ~. The terms "City Council" and "City" shall have the meaning
assigned in the preamble to this Ordinance.
Section 1.03..F. Ja.0~g~. 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 1.04. Table of Contents. Titles and Headil~gs. 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 1.05. Interpretation. (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) Article and section references shall mean references to articles and sections of this Ordinance
unless designated otherwise.
(c) This Ordinance and all the terms and provisions hereof shall be liberally construed to
effectuate the purposes set forth herein to sustain the validity of this Ordinance.
ARTICLE H
SECURITY FOR THE BONDS
Section 2.01. Tax Levy_ for Pa_vment of the BQlaql$. (a) The City Council hereby declares and
covenants that it will provide and levy a tax legally and fully sufficient for payment of the Bonds, it having
been determined that the existing and available taxing authority of the City for such purpose is adequate to
permit a legally sufficient tax in consideration of all other outstanding obligations of the City.
(b) In order to provide for the payment of the debt service requirements on the Bonds, being (i)
the interest on the Bonds, and (ii) a sinking fund for their payment at maturity or a sinking fund of two
percent per annum (whichever amount is the greater), there is hereby levied for the current year and each
succeeding year thereafter, while the Bonds or interest thereon remain 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 such debt service requirements, full allowance being made for delinquencies
and costs of collection.
(c) The tax levied by this Section shall be assessed and collected each year and deposited into
the Interest and Sinking Fund for the payment of the debt service requirements on the Bonds, and the tax
shall not be diverted to any other purpose.
(d) Said ad valorem tax, the collections therefrom, and all amounts on deposit in or required
hereby to be deposited to the Interest and Sinking Fund are hereby pledged and committed irrevocably to
the payment of the principal of and interest on the Bonds when and as due and payable in accordance with
their terms and this Ordinance.
(e) If the liens and provisions of this Ordinance shall be discharged in a manner permitted by
Article XI, then the collection of such ad valorem tax may be suspended or appropriately reduced, as the
facts may permit, and further deposits to the Interest and Sinking Fund may be suspended or appropriately
reduced, as the facts may permit.
(f) To the extent Pledged Revenues are not adequate in any year to make all deposits to all funds
required hereby and to make all payments due on or with respect to the Bonds that year, sufficient payments
into the Interest and Sinking Fund shall be made from funds derived from taxation, as hereinabove levied
and required. The amount of taxes to be provided annually for the payment of principal of and interest on
the Bonds shall be determined and accomplished as follows: the City's annual budget shall reflect (a) the
amount of the debt service requirements to become due on the Bonds in the next succeeding fiscal year of
the City, (b) the amount on deposit in the Interest and Sinking Fund available for such debt service payments
on the Bonds, as of the date such budget is prepared (after giving effect to any payments required to be made
during the remainder of the then current fiscal year), and (c) the amount of Pledged Revenues estimated and
budgeted to be available for the payment of such debt service requirements on the Bonds during the next
succeeding fiscal year of the City (based upon the amount of Pledged Revenues available from the preceding
fiscal year, or, if the rates and charges for services of the System have been changed since the beginning of
such preceding fiscal year, the amount of Pledged Revenues that would have been available if such rates and
charges had been in effect for all of such year). Following final approval of the City's annual budget, the
City Council shall assess and collect the ad valorem tax levied above at a rate sufficient, together with the
Pledged Revenues and the amounts on deposit in the Interest and Sinking Fund, to provide for the timely
payment of the principal and interest on the Bonds in the next succeeding fiscal year of the City and the City
agrees and covenants to assess and collect such tax in the amount necessary to provide for the payment of
the Bonds.
Section 2.02. ~. In combination with the ad valorem taxes herein levied and ordered
to be levied, the Bonds and the interest thereon are and shall be payable from and secured by an irrevocable
lien on and pledge of the Pledged Revenues.
Section 2.03. ]~5_0_rl.qt_Gharg~. The City covenants and agrees with the holders of the Bonds that
it will at all times collect rates and charges in connection with its ownership and operation of the City's
waterworks and sewer system as will be at least sufficient to provide Pledged Revenues which will be,
together with the funds to be derived from taxation as hereinabove provided, adequate to pay promptly all
of the principal of and interest on the Bonds, and to make all deposits now or hereafter required by this
Ordinance to be made into the funds created and established by this Ordinance.
Section 2.04. Additional Revenue Obligations. To the extent permitted by law, the City reserves
the right and power at any time and from time to time, and in one or more series or issues, to authorize, issue
and deliver obligations, in any amounts, for any lawful purpose, secured by a lien on and pledge of the Net
Revenues superior to, on a parity with or inferior to the lien on and pledge of such revenues prescribed in
this Ordinance for the payment of the Bonds.
ARTICLE III
AUTHORIZATION; GENERAL TERMS AND PROVISIONS
REGARDING THE BONDS
Section 3.01. ~. The City's bonds to be designated "City of The Colony, Texas,
Combination Tax and Revenue Refunding Bonds, Taxable Series 1995," are hereby authorized to be issued
and delivered in accordance with the Constitution and laws of the State of Texas, particularly Article 717k,
V.A.T.C.S., as amended, in the aggregate principal amount of $10,655,000 for the public purpose of
providing funds to refund the Refunded Bonds and to pay all or a portion of the costs of issuance of the
Bonds.
Section 3.02. Date. Denomination. Maturities. Numbers and Interest. (a) The Bonds shall be dated
September I, 1995, shall be in fully registered form, without coupons, in the denomination of $5,000 or any
integral multiple thereof, and shall be numbered separately from one upward or such other designation
acceptable to the City and the Paying Agent/Registrar.
(b) The Bonds shall mature on August 1 in the years and in the principal amounts set forth in
the following schedule:
Principal Interest
Year Amount Rate
1996 $ 320,000 5.75%
1997 1,830,000 5.95%
1998 1,940,000 6.15%
1999 2,060,000 6.20%
2000 2,185,000 6.30%
2001 2,320,000 6.375%
(c) Interest shall accrue and be paid on each Bond, respectively, until the payment of the
principal amount thereof shall have been paid or provided for, from the later of the Original Issue 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 commencing on February 1, 1996 and on each February 1 and August 1 thereafter
until maturity or prior redemption. Interest on the Bonds shall be calculated on the basis of a 360-day year
composed of twelve 30-day months.
Section 3.03. Medium. Method and Place of Payment. (a) The principal of, premium, if any, and
interest on the Bonds shall be paid in lawful money of the United States of America as provided in this
Section.
(b) Interest on the Bonds shall be payable to the Owners whose names appear in the Register
at the close of business on the Record Date; provided, however, that in the event of nonpayment of interest
on a scheduled Interest Payment Date, and for 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 (the "Special Payment Date", which shall be at least 15 days
after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by
United States mail, first class postage prepaid, to the address of each Owner of a Bond appearing on the
books of the Paying Agent/Registrar at the close of business on the last business day next preceding the date
of mailing of such notice.
(c) Interest on the Bonds shall be paid by check (dated as of the Interest Payment Date) and sent
by the Paying Agent/Registrar to the person entitled to such payment, United States mail, first class postage
prepaid, to the address of such person as it appears in the Register or by such other customary banking
arrangements acceptable to the Paying Agent/Registrar and the person to whom interest is to be paid;
provided, however, that such person shall bear all risk and expenses of such other customary banking
arrangements.
(d) The principal of each Bond shall be paid to the person in whose name such Bond is
registered on the due date thereof (whether at the maturity date or the date of prior redemption thereof) upon
presentation and surrender of such Bond at the Designated Payment/Transfer Office.
(e) If a date for the payment of the principal of or interest on the Bonds is a Saturday, Sunday,
legal holiday, or a day on which banking institutions in the city in which the Designated Payment/Transfer
Office 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 a Saturday, Sunday, legal holiday, or day on which such 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.
(f) Subject to any applicable escheat, unclaimed property or similar law, including Title 6 of
the Texas Property Code, Unclaimed Payments remaining unclaimed by the Owners entitled thereto for three
years after the applicable payment or redemption date shall be paid to the City and thereafter neither the City,
the Paying Agent/Registrar, nor any other person shall be liable or responsible to any Owners of such Bonds
for any further payment of such unclaimed moneys or on account of any such Bonds.
Section 3.04. Execution and Initial Reeistration. (a) The Bonds shall be executed on behalf of the
City by the Mayor and City Secretary of the City, 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 Bonds
shall have the same effect as if each of the Bonds had been signed manually and in person by each of said
officers, and such facsimile seal on the Bonds shall have the same effect as if the official seal of the City had
been manually impressed upon each of the Bonds.
(b) In the event that any officer of the City whose manual or facsimile signature appears on the
Bonds ceases to be such officer before the authentication of such Bonds 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 Bond 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 Bond of Paying
Agent/Registrar substantially in the form provided in this Ordinance, duly authenticated by manual execution
of the Paying Agent/Registrar. It shall not be required that the same authorized representative of the Paying
Agent/Registrar sign the Bond of Paying Agent/Registrar on all of the Bonds. In lieu of the executed Bond
of Paying Agent/Registrar described above, the Initial Bond delivered on the Closing Date shall have
attached thereto the Comptroller's Registration Certificate substantially in the form provided in this
Ordinance, manually executed by the Comptroller of Public Accounts of the State of Texas or by his duly
authorized agent, which certificate shall be evidence that the Initial Bond has been duly approved by the
Attorney General of the State of Texas and that it is a valid and binding obligation of the City, and has been
registered by the Comptroller.
(d) On the Closing Date, one Initial Bond representing the entire principal amount of the Bonds,
payable in stated installments to the Purchaser or its designee, executed by manual or facsimile signature of
the Mayor and City Secretary of the City, approved by the Attorney General of Texas, and registered and
manually signed by the Comptroller of Public Accounts of the State of Texas, will be delivered to the
Purchaser or its designee. Upon payment for the Initial Bond, the Paying Agent/Registrar shall cancel the
Initial Bond and deliver to DTC on behalf of the Purchaser registered definitive Bonds as described in
Section 3.10(a). To the extent the Paying Agent/Registrar is eligible to participate in DTC's FAST System,
as evidenced by agreement between the Paying Agent/Registrar and DTC, the Paying Agent/Registrar shall
hold the definitive Bonds in safekeeping for DTC.
Section 3.05. Ownership. (a) The City, the Paying Agent/Registrar and any other person may treat
the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of
making and receiving payment of the principal thereof and 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 Bond is registered on the Record Date), and for all other purposes,
whether or not such Bond is overdue, and neither the City nor the Paying Agent/Registrar shall be bound by
any notice or knowledge to the contrary.
(b) All payments made to the person deemed to be the Owner of any Bond in accordance with
this Section shall be valid and effectual and shall discharge the liability of the City and the Paying
Agent/Registrar upon such Bond to the extent of the sums paid.
Section 3.06. Registration. Transfer and Exchange. (a) So long as any Bonds remain outstanding,
the City shall cause the Paying Agent/Registrar to keep at the Designated Payment/Transfer Office a register
(the "Register") in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent/RegisUar shall provide for the registration and transfer of Bonds in accordance with this Ordinance.
(b) Registration of any Bond may be transferred in the Register only upon the presentation and
surrender thereof at the Designated Payment/Transfer Office for transfer of registration and cancellation,
together with proper written instruments of assignment, in form and with guarantee of signatures satisfactory
to the Paying Agent/Registrar, evidencing assignment of the Bonds, or any portion thereof in any integral
multiple of $5,000, to the assignee or assignees thereof, and the right of such assignee or assignees thereof
to have the Bond or any portion thereof registered in the name of such assignee or assignees. No transfer
of any Bond shall be effective until entered in the Register. Upon assignment and transfer of any Bond or
portion thereof, a new Bond or Bonds will be issued by the Paying Agent/Registrar in conversion and
exchange for such transferred and assigned Bond. To the extent possible the Paying Agent/Registrar will
issue such new Bond or Bonds in not more than three business days after receipt of the Bond to be
transferred in proper form and with proper instructions directing such transfer.
(c) Any Bond may be converted and exchanged only upon the presentation and surrender thereof
at the Designated Payment/Transfer Office, together with a written request therefor duly executed by the
registered owner or assignee or assignees thereof, or its or their duly authorized attorneys or representatives,
with guarantees of signatures satisfactory to the Paying Agent/Registrar, for a Bond or Bonds of the same
maturity and interest rate and in any authorized denomination and in an aggregate principal amount equal
to the unpaid principal amount of the Bond presented for exchange. Ifa portion of any Bond is redeemed
prior to its scheduled maturity as provided herein, a substitute Bond or Bonds having the same maturity date,
bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000
at the request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion
thereof, will be issued to the registered owner upon surrender thereof for cancellation. To the extent
possible, a new Bond or Bonds shall be delivered by the Paying Agent/Registrar to the registered owner of
the Bond or Bonds in not more than three business days after receipt of the Bond to be exchanged in proper
form and with proper instructions directing such exchange.
(d) Each Bond issued in exchange for any Bond or portion thereof assigned, transferred or
converted shall have the same principal maturity date and bear interest at the same rate as the Bond for which
it is being exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each
other Bond. The Paying Agent/Registrar shall convert and exchange the Bonds as provided herein, and each
substitute Bond delivered 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 Bond
or Bonds in lieu of which such substitute Bond is delivered.
(e) The City will pay the Paying Agent/Registrar's reasonable and customary charge for the
initial registration or any subsequent transfer, exchange or conversion of Bonds, but the Paying
Agent/Registrar will require the Owner to pay a sum sufficient to cover any mx or other governmental charge
that is authorized to be imposed in connection with the registration, transfer, exchange or conversion of a
Bond. In addition, the City hereby covenants with the Owners of the Bonds that it will (i) pay the reasonable
and standard or customary fees and charges of the Paying Agent/Registrar for its services with respect to the
payment of the principal of and interest on the Bonds, when due, and (ii) pay the fees and charges of the
Paying Agent/Registrar for services with respect to the transfer, registration, conversion and exchange of
Bonds as provided herein.
Section 3.07. Cancellation and AuthenticaIigll. (a) All Bonds paid or redeemed before scheduled
maturity in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement
Bonds are authenticated and delivered in accordance with this Ordinance, shall be cancelled and destroyed
upon the making of proper records regarding such payment, redemption, exchange or replacement. The
Paying Agent/Registrar shall periodically furnish the City with certificates of destruction of such Bonds.
(b) Each substitute Bond issued pursuant to the provisions of Sections 3.06 and 3.09 of this
Ordinance, in conversion of and exchange for or replacement of any Bond or Bonds issued under this
Ordinance, shall have printed thereon a Paying Agent/Registrar's Authentication Certificate, in the form
hereinafter set forth. An authorized representative of the Paying Agent/Registrar shall, before the delivery
of any such Bond, manually sign and date such Certificate, and no such Bond shall be deemed to be issued
or outstanding unless such Certificate is so executed. No additional ordinances, orders, or resolutions need
be passed or adopted by the City Council or any other body or person so as to accomplish the foregoing
conversion and exchange or replacement of any Bond or portion thereof, and the Paying Agent/Registrar
shall provide for the execution and delivery of the substitute Bonds in the manner prescribed herein.
Pursuant to Article 717k-6, Tex. Rev. Civ. Stat. Ann., as amended, and particularly Section 6 thereof, the duty
of conversion and exchange or replacement of Bonds as aforesaid is hereby imposed upon the Paying
Agent/Registrar, and, upon the execution of the above Paying AgentfRegistrar's Authentication Bond, the
converted and exchanged or replaced Bonds shall be valid, incontestable, and enforceable in the same
manner and with the same effect as the Initial Bond which was originally delivered pursuant to this
Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts.
(c) Bonds issued in conversion and exchange or replacement of any other Bond or portion
thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest
on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their
scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and exchanged for other
Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest
on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the Form of Bonds
set forth in this Ordinance.
Section 3.08. Temporary BonOs. (a) Following the delivery and registration of the Initial Bond and
pending the preparation of definitive Bonds, the proper officers of the City may execute and, upon the City's
request, the Paying Agent/Registrar shall authenticate and deliver, one or more temporary Bonds that are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any denomination, substantially
of the tenor of the definitive Bonds 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 Bonds may determine, as evidenced by their signing of such temporary Bonds.
(b) Until exchanged for Bonds in definitive fox'm, such Bonds 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 the Bonds in definitive form; thereupon, upon the presentation and surrender of the Bond
or Bonds in temporary form to the Paying Agent/Registrar, the Paying Agent/Registrar shall cancel the
Bonds in temporary form and authenticate and deliver in exchange therefor a Bond or Bonds of the same
maturity and series, in defmitive form, in the authorized denomination, and in the same aggregate principal
amount, as the Bond or Bonds in temporary form surrendered. Such exchange shall be made without the
making of any charge therefor to any Owner.
Section 3.09. Replacement Bolgl~. (a) Upon the presentation and surrender to the Paying
Agent/Registrar, at the Designated Payment/Transfer Office, of a mutilated Bond, the Paying
Agent/Registrar shall authenticate and deliver in exchange therefor a replacement Bond 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 Bond 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 herewith.
(b) In the event that any Bond is lost, apparently destroyed or wrongfully taken, the Paying
Agent/Registrar, pursuant to the applicable laws of the State of Texas and in the absence of notice or
knowledge that such Bond has been acquired by a bona fide purchaser, shall authenticate and deliver a
replacement Bond of like tenor and principal amount, bearing a number not contemporaneously outstanding,
provided that the Owner first:
(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 Bond;
(ii) furnishes such security or indemnity as may be required by the Paying
Agent/Registrar and the City to save them 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) If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond
in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and
the Paying Agent/Registrar shall be entitled to recover such replacement Bond 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 Bond
has become or is about to become due and payable, the Paying Agent/Registrar, in its discretion, instead of
issuing a replacement Bond, may pay such Bond.
(e) Each replacement Bond delivered 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 Bond or Bonds in lieu of which such replacement Bond is delivered.
Section 3.10. Book-Entry Only System.
(a) The definitive Bonds shall be initially issued in the form of a separate single fully registered
Bond for each of the maturities thereof. Upon initial issuance, the ownership of each such Bond shall be
registered in the name of Cede & Co., as nominee of DTC, and except as provided in Section 3.11 hereof,
all of the outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC.
(b) With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City
and the Paying Agent/Registrar shall have no responsibility or obligation to any DTC Participant or to any
person on behalf of whom such a DTC Participant holds an interest in the Bonds, except as provided in this
Ordinance. Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar
shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co.
or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC
Participant or any other person, other than an Owner, as shown on the Register, of any notice with respect
to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other
person, other than an Owner, as shown in the Register of any amount with respect to principal of, premium,
if any, or interest on the Bonds. Notwithstanding any other provision of this Ordinance to the contrary, the
City and the Paying Agent/Registrar shall be entitled to treat and consider the person in whose name each
Bond is registered in the Register as the absolute Owner of such Bond for the purpose of payment of
principal of, premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and
other matters with respect to such Bond, for the purpose of registering transfer with respect to such Bond,
and for all other purposes whatsoever. The Paying Agent/Registrar shall pay all principal of, premium, if
any, and interest on the Bonds only to or upon the order of the respective Owners, as shown in the Register
as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments
shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of,
premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than
an Owner, as shown in the register, shall receive a certificate evidencing the obligation of the City to make
payments of amounts due pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar
of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co.,
and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the
registered Owner at the close of business on the Record Date, the word "Cede & Co." in this Ordinance shall
refer to such new nominee of DTC.
(c) The execution and delivery of the Representation Letter is hereby approved with such
changes as may be approved by the Mayor, and the Mayor is hereby authorized to execute such
Representation Letter.
Section 3.11. Successor Securities Depository: Transfer Outside Book-Ent _ry Only SYstem
In the event that the City or the Paying Agent/Registrar determines that DTC is incapable of
discharging its responsibilities described herein and in the Representation Letter, and that it is in the best
interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, or in the event
DTC discontinues the services described herein, the City or the Paying Agent/Registrar shall (i) appoint a
successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange
Act of 1934, as amended, notify DTC and DTC Participants, as identified by DTC, of the appointment of
such successor securities depository and transfer one or more separate Bonds to such successor securities
depository or (ii) notify DTC and DTC Participants, as identified by DTC, of the availability through DTC
of Bonds and transfer one or mom separate Bonds to DTC Participants having Bonds credited to their DTC
accounts, as identified by DTC. In such event, the Bonds shall no longer be restricted to being registered
in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the
successor securities depository, or its nominee, or in whatever name or names Owners transferring or
exchanging Bonds shall designate, in accordance with the provisions of this Ordinance.
Section 3.12. Payments to Cede & Co.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bonds are
registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of,
premium, if any, and interest on such Bonds, and all notices with respect to such Bonds, shall be made and
given, respectively, in the manner provided in the Representation Letter.
ARTICLE IV
REDEMPTION OF BONDS BEFORE MATURITY
Section 4.01. Limitation on Redemption.
The Bonds are not subject to redemption at the option of the City prior to their stated maturities.
ARTICLE V
PAYING AGENT/REGISTRAR
Section 5.01. Appointment of Initial Paying Agent/Registrar. (a) The City hereby appoints Texas
Commerce Bank National Association, as its registrar and transfer agent to keep such books or records and
make such transfers and registrations under such reasonable regulations as the City and the Paying
Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such transfer and registrations
as herein provided. It shall be the duty of the Paying AgenffRegistrar to obtain from the Owners and record
in the Register the address of such Owner of each Bond to which payments with respect to the Bonds shall
be mailed, as provided herein. The City or its designee shall have the right to inspect the Register during
regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep
the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection
by any other entity.
(b) The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for
paying the principal of and interest on the Bonds. The Paying Agent~Registrar shall keep proper records of
all payments made by the City and the Paying Agent/Registrar with respect to the Bonds, and of all
conversions, exchanges and replacements of such Bonds, as provided in the Ordinance.
(c) The execution and delivery of the Paying Agent/Registrar Agreement, substantially in the
form presented at this meeting, specifying the duties and responsibilities of the City and the Paying
Agent/Registrar, is hereby approved with such changes as may be approved by the Mayor of the City, and
the Mayor and City Secretary of the City are hereby authorized to execute such agreement.
Section 5.02. Oualifications. Each Paying Agent/Registrar shall be (i) a commercial bank, trust
company, or other entity duly qualified and legally authorized under applicable law, (ii) authorized under
such laws to exercise trust powers, (iii) subject to supervision or examination by a federal or state
governmental authority, and (iv) a single entity.
Section 5.03. Maintaining Paying Agent/Registrar. (a) At all times while any Bonds are
outstanding, the City will maintain a Paying Agent/Registrar that is qualified under Section 5.02 of this
Ordinance.
(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 reserves the right to terminate the appointment of any Paying
Agent/Registrar by delivering to the entity whose appointment is to be terminated a certified copy of a
resolution of the City (i) giving notice of the termination of the appointment and of the Paying
Agent/Registrar Agreement, stating the effective date of such termination, and (ii) appointing a successor
Paying Agent/Registrar; provided, that, no such termination shall be effective until a successor Paying
Agent/Registrar has accepted the duties of Paying Agent/Registrar for the Bonds.
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 United States
mail, first class postage prepaid, at the address in the Register, stating the effective date of the change and
the name of the replacement Paying Agent/Registrar and the mailing address of its Designated
Payment/Transfer Office.
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 AgenffRegistrar prescribed hereby.
Section 5.07. Delivery_ of Records to Successor. If a Paying Agent/Registrar is replaced, such
Paying Agent/Registrar, promptly upon the appointment of the successor, will deliver the Register (or a copy
thereof) and all other pertinent books and records relating to the Bonds to the successor Paying
Agent/Registrar.
ARTICLE VI
FORM OF THE BONDS
Section 6.01. Form Generally. (a) The Bonds, including the Registration Certificate of the
Comptroller of Public Accounts of the State of Texas, the Certificate of the Paying Agent/Registrar, and the
Assignment form to appear on each of the Bonds, (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 indorsements (including any reproduction of
an opinion of counsel) thereon as, consistently herewith, may be determined by the City or by the officers
executing such Bonds, as evidenced by their execution thereof.
(b) Any portion of the text of any Bonds may be set forth on the reverse side thereof, with an
appropriate reference thereto on the face of the Bonds.
(c) The Bonds, including the Initial Bond submitted to the Attorney General of Texas and any
temporary Bonds, shall be typed, printed, lithographed, photocopied 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 Bonds, as evidenced by their execution thereof.
Section 6.02. ~. The form of Bonds, including the form of the Registration Certificate
of the Comptroller of Public Accounts of the State of Texas, the form of Bond of the Paying Agent/Registrar
and the form of Assignment appearing on the Bonds, shall be substantially as follows:
(a) [Form of Bond]
REGISTERED REGISTERED
No. $
United States of America
State of Texas
CITY OF ~ COLONY, TEXAS
COMBINATION TAX AND REVENUE REFUNDING BOND
TAXABLE SERIES 1995
INTEREST RATE: MATURITY DATE: ORIGINAL ISSUE DATE: CUSIP NUMBER:
September 1, 1995
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
unless this Bond shall have been sooner called for redemption and the payment of the principal hereof shall
have been paid or provision for such payment shall have been made, and to pay interest on the unpaid
principal amount hereof from the later of the Original Issue Date specified above or the most recent interest
payment date to which interest has been paid or provided for until such principal amount shall have 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 Februa~ 1 and August 1 of each year,
commencing February l, 1996.
The principal of this Bond shall be payable without exchange or collection charges in lawful money
of the United States of America upon presentation and surrender of this Bond at the corporate trust office
in Dallas, Texas (the "Designated Payment/Transfer Office"), of the Paying Agent/Registrar executing the
registration certificate appearing hereon or, with respect to a successor Paying Agent/Registrar, at the
Designated Payment/Transfer Office of such successor. Interest on this Bond is payable by check dated as
of the interest payment date, 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
arrangements acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the
person to whom interest is to be paid. For the purpose of the payment of interest on this Bond, the registered
owner shall be the person in whose name this Bond is registered at the close of business on the "Record
Date," which shall be the fifteenth day of the month next preceding such interest payment date; provided,
however, that in the event of nonpayment of interest on a scheduled interest payment date, and for 30 days
thereat~er, 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 (the "Special
Payment Date", which shall be 15 days at, er the Special Record Date) shall be sent at least five business days
prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each
Owner ora Bond appearing on the books of the Paying Agent/Registrar at the close of business on the last
business day preceding the date of mailing such notice.
Reference is hereby made to the further provisions of this Bond set forth on the reverse side hereof,
and such further provisions shall for all purposes have the same effect as if set forth on the face hereof.
* If a date for the payment of the principal of or interest on the Bonds is a Saturday, Sunday, legal
holiday, or a day on which banking institutions in the city in which the Designated Payment/Transfer Office
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 a Saturday, Sunday, legal holiday, or day on which such 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.
* This Bond is one of a series of fully registered bonds specified in the title hereof issued in the
aggregate principal amount of $10,655,000 (herein referred to as the "Bonds") pursuant to a certain
ordinance of the City Council of the City (the "Ordinance") for the public purpose of refunding certain
outstanding obligations of the City and to pay the costs of issuance related to the Bonds.
* The Bonds and the interest thereon are payable from the levy of a direct and continuing ad valorem
tax, within the limit prescribed by law, against all taxable property in the City and are further secured by and
payable from a pledge of and lien on certain of the net revenues of the City's waterworks and sewer system
subordinate to certain outstanding bonds of, or bonds to be issued by, the City as described and provided in
the Ordinance.
* The Bonds are not subject to redemption at the option of the City prior to their stated maturation.
* As provided in the Ordinance, and subject to certain limitations therein set forth, this Bond is
transferable upon surrender of this Bond for transfer at the Designated Payment/Transfer Office, with such
indorsement or other evidence of transfer as is acceptable to the Paying Agent/Registrar, and, thereupon, one
or more new fully registered Bonds 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
Bond 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 this Bond is registered on the Record Date or Special
Record Date, as applicable) and for all other purposes, whether or not this Bond be overdue, and 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 Bond and the series of which
it is a part is duly authorized by law; that all acts, conditions and things required to be done precedent to and
in the issuance of the Bonds have been properly done and performed and have happened in regular and due
time, form and manner, as required by law; and that the total indebtedness of the City, including the Bonds,
does not exceed any constitutional or statutory limitation.
IN WITNESS WItEREOF, this Bond has been duly executed on behalf of the City, under its
official seal, in accordance with law.
City Secretary, City of The Colony, Texas Mayor, City of The Colony, Texas
[SEAL]
(b) [Form of Certificate of Paying AgentJRegistrar]
CERTIFICATE OF PAYING AGENT/REGISTRAR
This is one of the Bonds referred to in the within mentioned Ordinance. The series of Bonds of
which this Bond is a part was originally issued as one Initial Bond which was approved by the Attorney
General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, as Paying Agent/Registrar
Dated: By:.
Authorized Signatory
(c) [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 hereunder and hereby irrevocably constitutes and appoints attorney to transfer the
within Bond on the books kept for registration hereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed By:
Authorized Signatory
NOTICE: The signature on this Assignment must
correspond with the name of the registered owner
as it appears on the face of the within Bond in
every particular and must be guaranteed by an
officer of a federal or state bank or a member of
the National Association of Securities Dealers.
* Note to printer: Paragraphs preceded by an asterisk (*) are to be printed on the reverse side of the
bonds.
(d) -- ' .
(i) The Initial Bond shall be in the form set forth in paragraph (a) of this Section,
except that:
A. immediately under the name of the Bond, the headings "INTEREST
RATE" and "MATURITY DATE" shall both be completed with the words "As
Shown Below" and "CUSIP NO. "deleted;
B. in the first paragraph:
the words "on the Maturity Date specified above" shall be deleted and the
following will be inserted: "on August 1 in the years, in the principal installments
and bearing interest at the per annum rates set forth in the following schedule:
Principal Interest
Years Installments Rates
(Information to be inserted from Section 3.02(b) hereof);
C. in the second paragraph of the Current Interest Bond, the word "initial"
shall be inserted before "Paying Agent/Registrar" in the first sentence, 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 Texas Commerce Bank National Association.";
D. the Initial Bond shall be numbered T-l; and
E. The third paragraph of the Bond form shall be deleted from the Initial
Bond.
(ii) The following Registration Certificate of Comptroller of Public Accounts shall
appear on the Initial Bond:
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER §
OF PUBLIC ACCOUNTS § REGISTER NO. __
THE STATE OF TEXAS §
I HEREBY CERTIFY THAT there is on file and of record in my office a certificate to the effect that
the Attorney General of the State of Texas has approved this Bond, and that this Bond has been registered
this day by me.
WITNESS MY SIGNATURE AND SEAL OF OFFICE this
Comptroller of Public Accounts
of the State of Texas
[SEnL]
Section 6.03. ~. 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 Bonds. It is expressly provided, however, that the presence or
absence of CUSIP numbers on the Bonds shall be of no significance or effect as regards the legality thereof
and neither the City nor the attorneys approving said Bonds as to legality are to be held responsible for
CUSIP numbers incorrectly printed on the Bonds.
Section 6.04. L_e. gaJ_O-giIli~. The approving legal opinion of Vinson & Elkins L.L.P., Bond
Counsel, may be printed on the back of each Bond over the certification of the City Secretary of the City,
which may be executed in facsimile.
Section 6.05. Municipal Bond Insurance. If municipal bond guaranty insurance is obtained with
respect to the Bonds, the Bonds, including the Initial Bond, may bear an appropriate legend, as provided by
the insurer.
ARTICLE VII
SALE OF THE BONDS;
CONTROL AND DELIVERY OF TIIE BONDS
Section 7.01. Sale of Bonds: Official Statement. (a) The Bonds are hereby officially sold and
awarded to Masterson Moreland Sauer Whisman, Inc., and Principal Financial Securities, Inc. (collectively,
the "Purchaser"), in accordance with the terms and provisions of that certain Purchase Contract relating to
the Bonds between the City and the Purchaser and dated the date of the passage of this Ordinance. The form
and content of such Purchase Contract are hereby approved, and the Mayor is hereby authorized and directed
to execute and deliver, and the City Secretary is hereby authorized and directed to attest, such Purchase
Contract. It is hereby officially found, determined and declared that the terms of this sale are the most
advantageous reasonably obtainable. The Bonds shall initially be registered in the name of the Purchaser,
or its designee.
(b) The form and substance of the Preliminary Official Statement for the Bonds and any
addenda, supplement or amendment thereto (the "Official Statement") presented to and considered at this
meeting, is hereby in all respects approved and adopted, and the Official Statement is hereby deemed final
as of its date within the meaning and for the purposes of paragraph (b)(1) of Rule 15c2-12 under the
Securities Exchange Act of 1934, as amended. The City agrees to deliver appropriate numbers of executed
copies thereof to the Purchaser. The Official Statement as thus approved, executed and delivered, with such
appropriate variations as shall be approved by the Mayor and the Purchaser, may be used by the Purchaser
in the public offering and sale thereof. The City Secretary is hereby authorized and directed to include and
maintain a copy of the Official Statement and any addenda, supplement or amendment thereto thus approved
among the permanent records of this meeting. The use and distribution of the Preliminary Official Statement
for the Bonds and the preliminary public offering of the Bonds by the PurchaSers is hereby ratified, approved
and confirmed.
(c) All officers of the City axe authorized to take such actions and to execute such documents,
certificates and receipts, aS they may deem necessary and appropriate in order to consummate the delivery
of the Bonds.
(d) The obligation of the Purchaser to accept delivery of the Bonds is subject to the Purchaser
being furnished with the final, approving opinion of Vinson & Elkins L.L.P., Bond Counsel for the City,
which opinion shall be dated as of and delivered on the Closing Date.
Section 7.02. (2ontrol and Delive _ry of Bonds. (a) The Mayor is hereby authorized to have control
of the Initial Bond and all necessary records and proceedings pertaining thereto pending investigation,
examination and approval of the Attorney General of the State of Texas, registration by the Comptroller of
Public Accounts of the State of TexaS, and registration with, and initial exchange or transfer by, the Paying
Agent/Registrar.
(b) After registration by the Comptroller of Public Accounts, delivery of the Bonds shall be
made to the Purchaser 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. Deposit of Proceeds. (a) All amounts received on the Closing Date as accrued interest
on the Bonds from the Bond Date to the Closing Date shall be deposited to the Interest and Sinking Fund.
(b) $10,432,780.03 of Bond proceeds shall be deposited to the Escrow Fund, which sum shall
be applied as provided in the Escrow Agreement.
(c) $147,716.76 of Bond proceeds shall be deposited as directed by the Mayor and used to pay
the costs and expenses pertaining to the issuance of the Bonds. To the extent any of such amount is not used
for such purposes, such excess shall be deposited to the Interest and Sinking Fund.
(d) Any remaining Bond proceeds shall be deposited into the Interest and Sinking Fund.
(e) To the extent necessary to accomplish fully the purposes of this Ordinance, the Mayor is
authorized to reallocate the funds (other than accrued interest on the Bonds) directed to be used for the
purposes specified above.
ARTICLE ¥111
CREATION OF FUNDS AND ACCOUNTS;
DEPOSIT OF PROCEEDS; INVESTMENTS
Section 8.01. Creation of Funds. The City hereby establishes the City of The Colony, Texas,
Combination Tax and Revenue Refunding Bonds, Taxable Series 1995, Interest and Sinking Fund. Said fund
or account shall be maintained at an official depository of the City.
Section 8.02. Interest and Sinking Fund. (a) The taxes levied under Section 2.01 and the Pledged
Revenues shall be deposited to the credit of the Interest and Sinking Fund at such times and in such amounts
as necessary for the timely payment of the principal of and interest on the Bonds.
(b) If the amount of money in the Interest and Sinking Fund is at least equal to the aggregate
principal amount of the outstanding Bonds plus the aggregate amount of interest due and that will become
due and payable on such Bonds, no further deposits to that fund need be made.
(c) Money on deposit in the Interest and Sinking Fund shall be used to pay the principal of and
interest on the Bonds as such become due and payable.
Section 8.03. Security of Funds. All moneys on deposit in the Interest and Sinking Fund shall be
secured in the manner and to the fullest extent required by the laws &the State of Texas for the security of
public funds, and moneys on deposit in such fund shall be used only for the purposes permitted by this
Ordinance.
Section 8.04. Investments. (a) Money in the Interest and Sinking Fund, at the option of the City,
may be invested in such securities or obligations as permitted under applicable law.
(b) Any securities or obligations in which money is so invested shall be kept and held in trust
for the benefit &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 8.05. Investment Income. Interest and income derived from investment of any fund created
by this Ordinance shall be credited to such fund.
Section 8.06. Escrow Fund. The establishment of the Escrow Fund, and the investment and
application of money in the Escrow Fund, shall be in accordance with the provisions of the Escrow
Agreement.
ARTICLE IX
PARTICULAR REPRESENTATIONS AND COVENANTS
Section 9.01. Pa_ment of the Bon~l$. While any of the Bonds are outstanding and unpaid, there shall
be made available to the Paying AgenffRegistrar, out of the Interest and Sinking Fund, money sufficient to
pay the interest on and the principal of the Bonds, as applicable, as will accrue or mature on each applicable
Interest Payment Date.
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
Bond; the City will promptly pa3/or cause to be paid the pr/ncipal of, interest on, and premium, if any, with
respect to, each Bond on the dates and at the places and manner prescribed in such Bond; 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 of Texas to issue the Bonds; all action
on its part for the creation and issuance &the Bonds has been duly and effectively taken; and the Bonds in
the hands of the Ownem thereof are and will be valid and enforceable obligations of the City in accordance
with their terms.
ARTICLE X
DEFAULT AND REMEDIES
Section 10.01. ~. Each of the following occurrences or events for the purpose of
this Ordinance is hereby declared to be an "Event of Default," tu-wit:
(i) the failure to make payment of the principal of or interest on any of the Bonds when
the same becomes due and payable; or
(ii) default in the perforraancc or observance of any other covenant, agreement or
obligation of the City, the failure to perform which materially, adversely affects the rights of thc
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.
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 or
trustees therefor, may proceed against thc 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 bc instituted and maintained for the equal
benefit of all Owners of Bonds 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 bc in addition to every other remedy given hereunder or under the Bonds 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 Bonds shall not be available as a remedy under
this Ordinance.
(b) The exercise of any remedy herein conferred or reserved shall not bc deemed a waiver of
any other available remedy.
ARTICLE XI
DISCHARGE
Section 11.01. ]~0r~c~n~1. When all or any portion of thc Bonds have been paid in full
as to principal and as to interest and premium, if any, or when all or any portion &the Bonds have become
due and payable, whether at maturity or otherwise, and the City shall have provided for the payment of the
whole amount due orto become duc on such Bonds then outstanding, including all interest that has accrued
thereon or that may accrue to the date of maturity, and any premium due or that may become due at maturity,
by depositing with the Paying Agent/Registrar, for payment of the principal of such outstanding Bonds and
the interest accrued thereon and any 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 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 Bonds and execute and deliver to the City such
releases or other instruments as shall be requisite to release the lien hereof.
Section 11.02. ~. (a) The City may discharge its obligation to pay the principal
of, premium, if any, and interest on all or any portion of the Bonds, and its obligation to pay other sums
payable or to become payable under this Ordinance by the City, by complying with the following provisions:
(i) the City shall deposit or cause 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, premium, if any, and
accrued interest on such Bonds to maturity or to the date fixed for prior redemption of such Bonds,
and to pay such other amounts as may be reasonably estimated by the Paying Agent/Registrar to
become payable under this Ordinance, including the compensation due or to become due the Paying
Agent/Registrar;
(ii) the City shall establish or cause to be established a separate escrow account fund
with the Paying Agent/Registrar for the deposit pursuant to subdivision (i) of this subsection (a);
(iii) the City shall make provision for 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,
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 of such Bonds;
(iv) the City shall make provision for the payment to the Owners at the date of maturity,
oft he full amount to which the Owners would be entitled by way of principal, premium, if any, and
interest to the date of such maturity or prior redemption; and
(v) the City shall make provision for the sending of written notice by first-class postage
prepaid United States mail to the Owner of each Bond then outstanding within 30 days following
the date of such deposit that such moneys are so available for such payment.
(b) Upon compliance with subsection (a) of this Section, the Bonds for which provision is so
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 and release the lien of this
Ordinance with respect to such Bonds and execute and deliver to the City such releases or other instruments
as shall be requisite to release the lien hereof.
(c) Following the final payment of the principal of, premium, if any, and interest on the Bonds,
any moneys, interest earnings, profits or capital gains over and above the amounts necessa~ for such
purposes shall be paid to the City.
ARTICLE XII
SUBSCRIPTION FOR SECURITIES; APPROVAL OF ESCROW AGREEMENT
Section 12.01. Subscription fur Securities. The City Manager and Director &Finance, either or
both of such officials, are authorized to make necessary arrangements for the purchase of the Federal
Securities referenced in the Escrow Agreement, as may be necessary for the Escrow Fund and the application
for the acquisition &the Federal Securities is hereby approved and ratified.
Section 12.02. Approval of Escrow A~eement. The Escrow Agreement, in substantially the form
presented at this meeting, and its execution and delivery by the Mayor are hereby authorized and approved.
The signature of the Mayor shall be attested by the City Secretary.
ARTICLE 3:rn
REFUNDED BONDS
Section t3.0l. Source of Funds for R&undin~,. (a) The City Council hereby authorizes and directs
the transfer of $-0- from the interest and sinking fund for the Refunded Bonds to the Escrow Fund.
(b) The source of funds for payment of the principal of and interest on the Refunded Bonds shall
be from the funds placed in escrow with the Escrow Agent pursuant to the Escrow Agreement.
Section 13.02. Redemption of Refunded Bonds. The Refunded Bonds are hereby called for
redemption prior to their stated maturities, on February 1, 1996, at a price equal to the principal amount
thereof plus accrued interest to the redemption date. Notice of such redemption is hereby authorized and
directed to be given in accordance with the provisions of the Refunded Bonds.
Section 13.03. Payment of Paving Agency Fees. Prior to the Closing, the City shall ascertain from
the paying agent for the Refunded Bonds the amount of all future fees and expenses for its paying agency
services with respect to the Refunded Bonds. Concurrently with the sale and delivery of the Bonds, the City
shall cause an amount sufficient to pay such future fees and expenses to be paid to such paying agent.
ARTICLE XIV
CONTINUING DISCLOSURE UNDERTAKING
Section 14.01. Definitions of Continuing Disclosure Terms.
As used in this Article, the following terms have the meanings assigned to such terms below:
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR' means each person whom the SEC or its staff has determined to be a nationally
recognized municipal securities information repository within the meaning of the Rule from time to time.
"Rule" means SEC Rule 15c2-12, as amended from time to time.
"SEC" means the United States Securities and Exchange Commission.
"SID" means any person designated by the State of Texas or an authorized department, officer, or
agency thereof as, and determined by the SEC or its staff to be, a state information depository within the
meaning of the Rule from time to time.
Section 14.02. Annual Reports. (a) The City shall provide annually to each NRMSIR and to any
SID, within six (6) months at~er the end of each fiscal year ending in or after 1996, fmancial information and
operating data with respect to the City of the general type included in the final Official Statement, being the
information described in Exhibit A hereto. Any financial statements so to be provided shall be (i) prepared
in accordance with the accounting principles described in Exhibit A hereto, and (ii) audited, if the City
commissions an audit of such statements and the audit is completed within the period during which they must
be provided. If the audit of such fmancial statements is not complete within such period, then the City shall
provide notice that audited financial statements are not available and shall provide unaudited financial
statements for the applicable fiscal year to each NRMSIR and any SID. Thereafter, when and if audited
financial statements become available, the City shall provide such audited financial statements as required
to each NRMSIR and to any SID.
(b) If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change
(and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be
required to provide financial information and operating data pursuant to this Section.
(c) The financial information and operating data to be provided pursuant to this Section may
be set forth in full in one or more documents or may be included by specific reference to any document
(including an official statement or other offering document, if it is available from the MSRB) that theretofore
has been provided to each NRMSIR and any SID or filed with the SEC.
Section 14.03. ' v ' . (a) The City shall notify any SID and either each NRMSIR
or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is
material within the meaning of the federal securities laws:
(i) principal and interest payment delinquencies
(ii) nonpayment related defaults;
(iii) unscheduled draws on debt service reserves reflecting financial difficulties;
(iv) unscheduled draws on credit enhancements reflecting financial difficulties;
(v) substitution of credit or liquidity providers, or their failure to perform;
(vi) adverse tax opinions or events affecting the tax exempt status of the Bonds;
(vii) modifications to rights of Owners;
(viii) bond calls;
(ix) defeasance;
(x) release, substitution, or sale of propeay securing repayment of the Bonds; and
(xi) rating changes.
(b) The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner,
of any failure by the City to provide fmancial information or operating data in accordance with Section 14.02
of this Ordinance by the time required by such Section.
Section 14.04. Limitations. Disclaimers and Amendments. (a) The City shall be obligated to
observe and perform the covenants specified in this Article for so long as, but only for so long as, the City
remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City
in any event will give notice of any deposit made in accordance with Article XI that causes Bonds no longer
to be Outstanding.
(b) The provisions of this Article are for the sole benefit of the Owners and beneficial owners
of the Bonds, and nothing in this Article, express or implied, shall give any benefit or any legal or equitable
right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial
information, operating data, financial statements, and notices which it has expressly agreed to provide
pursuant to this Article and does not hereby undertake to provide any other information that may be relevant
or material to a complete presentation of the City's financial results, condition, or prospects or hereby
undertake to update any information provided in accordance with this Article or otherwise, except as
expressly provided herein. The City does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR
BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR
DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER
NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS
ARTICLE, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT,
FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
(c) No default by the City in observing or performing its obligations under this Article shall
comprise a breach of or default under the Ordinance for purposes of any other provisions of this Ordinance.
(d) Nothing in this Article is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
(e) The provisions of this Article may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or a change in the
identity, nature, status, or type of operations of the City, but only if(l) the provisions of this Article, as so
amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the
Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to
the date of such amendment, as well as such changed circumstances, and (2) either (a) the Owners of a
majority in aggregate principal amount (or any greater amount required by any other provisions of this
Ordinance that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b)
a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such
amendment will not materially impair the interests of the Owners and beneficial owners of the Bonds. If the
City so amends the provisions of this Article, it shall include with any amended financial information or
operating data next provided in accordance with Section 14.02 an explanation, in narrative form, of the
reasons for the amendment and of the impact of any change in the type of financial information or operating
data so provided.
(f) Any obligation to the City to expend funds pursuant to the provisions of this Article shall
be subject to the appropriation of said funds by the City Council from sources of funds legally available for
such purpose.
ARTICLE XV
MUNICIPAL BOND INSURANCE
Section 15.01. Anplication. Notwithstanding any other provision of this Ordinance, the provisions
of this A~icle shall apply so long as the Municipal Bond Guaranty Insurance Policy is in effect and AMBAC
Indemnity is not in default thereunder.
Section 15.02. Consent of AMBAC Indemnity. Any provision of this Ordinance expressly
recognizing or granting rights in or to AMBAC Indemnity may not be amended in any manner which affects
the rights of AMBAC Indemnity hereunder without the prior written consent of AMBAC Indemnity.
Section 15.03. Consent of AMBAC Indemni_ty in Addition to Bondholder Consent Unless
otherwise provided in this Section, AMBAC Indemnity's consent shall be required in addition to Owner
consent, when required, for the following purposes: (i) execution and delivery of any supplemental
Ordinance or any amendment, supplement, or change to or modification of this Ordinance; (ii) removal of
the Paying Agent/Registrar and selection and appointment of any successor paying agent/registrar; and (iii)
initiation or approval of any action not described in (i) or (ii) above which requires Owner consent; provided,
that this section shall not limit the rights of an Owner or beneficial owner under Article XIV of this
Ordinance.
Section 15.04. Consent of AMBAC Indemnity_ Upon Default. Anything in this Ordinance to the
contrary notwithstanding, upon the occurrence and continuance of an event of default as defined herein,
AMBAC Indemnity shall be entitled to control and direct the enforcement of all rights and remedies granted
to the Owners for the benefit of the Bondholders under this Ordinance; provided, that this section shall not
limit the rights of an Owner or beneficial owner under Article XIV of this Ordinance.
Section 15.05. Bonds to Remain Outstanding. Notwithstanding anything herein to the contrary, in
the event that the principal and/or interest due on the Bonds shall be paid by AMBAC Indemnity pursuant
to the Municipal Bond Insurance Policy, the Bonds shall remain outstanding for all purposes, not be defeased
or otherwise satisfied and not be considered paid by the City, and the levy of ad valorem taxes and the lien
on and pledge of the Pledged Revenues for the payment of the Bonds and all covenants, agreements and
other obligations of the City to the Owners shall continue to exist and shall run to the benefit of AMBAC
Indemnity, and AMBAC Indemnity shall be subrogated to the rights of such Owners.
Mayor, City of The Colony, Texas
A'i'fEST:
City Secretary, City of The Colony, Texas
APPROVED AS TO FORM:
City Attorney, City of The Colony, Texas
EXHIBIT A
DESCRIPTION OF ANNUAL DISCLOSURE OF FINANCIAL INFORMATION
The following information is referred to in Article XIV of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided annually in
accordance with such Article are as specified (and included in the Appendix or other headings of the Official
Statement referred to) below:
1. The portions of the fmaneial statements of the City appended to the Official Statement as
Appendix B, but for the most recently concluded fiscal year.
2. Statistical and financial data set forth in Tables 1-2 l, inclusive.
Accounting Principles
The accounting principles referred to in such Article are the accounting principles described in the
notes to the financial statements referred to in Paragraph 1 above.
SCHEDULE I
CITY OF THE COLONY, TEXAS
COMBINATION TAX AND REVENUE REFUNDING BONDS, TAXABLE SERIES 1995
Schedule of Bonds to be Refunded
Bonds to be Principal Amount Maturities to Redemption
Refunded to be Refunded be Refunded Date
The Colony Municipal $10,150,000 1997-2001 2-1-1996*
Utility District No. I
Waterworks and Sewer
System Combination Tax
and Revenue Refunding
Bonds, Series 1985
*Redemption price of par plus accrued interest to the redemption date.