HomeMy WebLinkAboutO-1950-400
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REVENUE BOND ORDIHM-TCE
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NO. 400
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THE STATE OF TEXflS l
ootmTY 'OF HA..l:JRIS 1
1'h0 City COIlIl':l.it;:sion of the City of to. Porto, Texa.s, met in
rogulur
:session at the City F'c.ll l"!ithin said City on the 20th da.y of Jul,y, 1950, with
o:;he follovJing m.embCl'S presont, to...vdt:
H. J. Pfeiffer
Jc.mes S .Crete, Jr.
J. E. IJ1uldoon
Mayor
Commisoioncr
City Clerk
~'n:em th0 following tudnoss 17a.S trnnsa.oted:
The lliyor intre,duced an. ordinanoe v.rhioh vms rec..d in full. Comm5oGsioner Jus.
e 8. Crute, Jr., llUlde n. motion that the ordinanoe be a.dopted us read. ~(lhe motion
t'rn.s seoonded by ]~cr H. J. Pfeiffer !.:.Ild ourried by the following vote: AYES:
lio.yor Pfeiffer, COIllIll,issioner crate. NOES: None. '!'he ordinance thun n.cJ.opbod foll...
Clvm:
Al.! ORDIN~L.JCE AUTHORIZING THE ISSUANCE OF A ~~lOO,OOO Df-
STALUJEIJT OF A f;Soo,oOO ISSUE OF Vl.\TER'.'IORKS AND SE\'\IER
SYSTEll R?7EJlmE BONDS; MAKING ?ROVISION FOR THE P,AY1m\1T
OF ffin:!C I:?JU, AliID INTEREST TEEREON.
';JHERE.t.s, c.t an nlection held in the City of La Porto, Texas, on the 21st
do;y of Fobr~, 194.8, more thOll Q. mu.jority of tho duly qunlified roe1der.t eleotors
tiho o\".rn taxuble propurty within sa.id Oity and V!!lO hod duly rendered tl'le E:~e for
tr"xc.tion voting a.t s(,id eleotion voted in fa.vor of the proposition of isnuiDg
e fl:~oo,oOO ,m.terworks cystem revenue bonds and tt300,000 sewer system rC.I1\:Jn~e bonds;
roro
'~'JHEn.s.as, the ref: olution l'.nd order oalling sa.id elootion provided if both pro-
pl)sitions for the iSf:uonoe of sa.id bonds 1"rere o.dopt;ed, sa.id City Commission should
hl:'..ve the right to is~ue oombined wa.ter\,,:orks and sewer system revonue bono.s k the
~lXimum. c.mount of ~:500,OOO.. and to pledge the ne't revenueEl of the \Omtvrwo!'kB end
SOl'Jer systom to the plyment of the prino.ipal of t"lld interest onsaid bondt::; ond
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WHEREAS, the City Commission of the City of La Porte, Texas,
by ordinance adopted on the 16th day of March, 1948, did combine
said bonds into one issue and at that time authorized the issuance
of $250,000 waterworks and sewer system revenue bonds approved at
said election, numbered from 1 to 250, both inclusive, and provided
that the remaining $250,000 of said bonds may be issued and sold by
the City ana such bonds, when issued and sold, shall be on a parity
with any bonds of said issue previously,authorized, provided, how-
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ever, the C~ty shall not issue and sell any of' such remaining bonds
authorized at said election held on February 21, 1948, until such
time as the annual revenues of the system, after deducting the
reasonable cost of operating and maintaining the system, as shown
by three years historical net earnings of the system, will equal
at least one and one-half times the maximum annual requirements of
principal and interest on the outstanding bonds of the series here-
in previously authorized, and such additional bonds authorized at
such election to be issued and sold; and
WHEREAS, the City Commission by ordinance adopted on the 28th
day of June, 1949, authorized the issuance of a $100,000 second in-
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stallment of said bonds and same have heretofore been sold and de-
livered and the authority to issue and sell the remaining $150,000
bonds on the terms and conditions stated in the next preceding para
graph was expressly retained in said ordinance; and
WHEREAS, the City CommissioQ~tlf.Pf the opinion that at the pre -
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ent time the City is in need of additional funds for the purpose of
constructing extensions and improvements to the City's existing
waterworks system and sewer system; is of the further opinion that
it is now necessary and proper that the City Commission proceed wit
the issuance of revenue bonds in the amount of $100,000 out of re-
maining $150,000 authorized but unissued bonds; Therefore
BE-IT ORDAINED by 'the City Commission of the City of La Porte,
Texas:
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30nds Nos. 37 to 100, both inclusive, shall contain the follow
ing provision: The City of La Porte reserves the right to redeem
inverse numerical order, all or any part of said bonds then out-
standing on March 15, 1963, or on any interest payment date there-
after by paying to the owners or holders of said bonds the princi-
pal thereof plus accrued interest to the date fixed for redemption.
If the City elects to redeem all or any part of said bonds, notice
thereof in ~riting shall be mailed, properly stamped and addressed,
to the First National Bank, La Porte, Texas, and shall be published
at least one time in a financial journal published in New York,
New York, and of general circulation in the United States of Americ
and said notice shall be mailed and published at least thirty (30)
days before the date fixed for redemption. When said bonds, or
any part t~ereof, have been called for redemption and notice there-
of given a~ herein specified and due provision has been made to re-
deem the same, the right of the owners or holders t. collect inter-
est which would otherwise accrue, shall terminate as of the date
fixed for redemption.
Each cuccessive holder of this bond and each successive holder
of the coupons hereto attached is conclusively presumed to forego
and renounce his equities in favor of subsequent holders for value
without notice, and to agree that this bond and each of the coupons
hereto attached may be negotiated by delivery by any person having
possession thereof, howsoever such possession may have been acquir-
ed, and that any holder who shall have taken this bond or any of th
coupons from any person, for value and without notice, thereby has
acquired a~)solute title thereto, free from any defenses enforceable
against any prior holder and free from all equities and claims of
ownership of any such prior holder. The City of La Porte and its
officers and fiscal agent shall not be affected by any notice to th
contrary.
This bond shall not be deemed to constitute a debt of the City
of' La Porte or a pledge of its faith and credit, but shall be pay-
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able as to principal and interest solely from the net revenues de-
rived from the operation of the City's waterworks and sewer system,
including all additions, extensions and improvements thereto which
may hereaftzr be made, after deduction of the reasonable expenses
of maintenance and operation of said system.
The holder hereof
shall never have the right to demand payment of this obligation out
of any funds raised or to be raised by taxation.
It is hereby certified, recited and represented that the issu-
ance of this bond and the series of which it is a part is duly au-
thorized by law; that all acts, conditions and things required to
exist and to be done precedent to and in the issuance of this serie
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of bonds to render the same lawful and valid, have been properly
done and performed and have happened in regular and due time, form
and manner, as required by law; that due provision has been made fo
the payment of the principal and interest of this bone and the ser-
ies of which it is a part by irrevocably pledging the net revenues
of the waterworks and sewer system; that the issuance of this series
of bonds does not exceed any constitutional or statutory limitation.
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IN TE~TIMONY WHEREOF, the City Commission of the City of La
Porte, Texas, has caused the corporate seal of said City to be af-
fixed hereto and this bond to be signed by the Mayor of said City,
I countersigned by the 6ity Clerk, and has caused the annexed coupons
I to be signed by the facsimile signatures of said Mayor and City
Clerk, all as of the 15th day of March, 1950.
Countersigned:
City Clerk, City of La Porte,
Texas
Mayor, City of La Porte, Texas
*(Bonds Nos. 1 to 40, both inclusive, oear interest at
the rate of 2-1/2% per annum;
Bo~ds Nos. 41 to 100, both inclusive, bear interest
at the rate of 2-3/4% per annum).
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Section 1:
That the bonds of the City of La Porte, Texas, be is-
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sued in the principal sum of $100,000, to be known and designated
as "CITY OF LA PORTE \'-IATERIrJORKS AND SEWER SYSTEM REVENUE BONDS, SER
lES 195011, for the purpose of constructing extensions ~nd improve-
ments to the waterworks system and the sewer system of said City,
under and in strict conformity with the Constitution and laws of th
State of Texas, particularly Articles 1111 to 1118, both inclusive,
of the Revised Civil Statutes of Texas, 1925, as amended, and as au
thorized at a bond election held within said City on the 21st day
of Februar;)', 1948.
Section 2:
Said bonds shall be dated March 15, 19jO, shall be num
bered from 1 to 100, both inclusive, shall be in the denomination
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of $1,000 each, aggregating $100,000.
These bonds are a third in-
stallment of an issue of $500,000, and an initial installment of
$250,000 and a second installment of $100,000 have previously been
sold and delivered by said City.
This third installment in the
principal amount of $100,000 shall become due and payable on the
15th day o:~ March in each of the years and in the respective amount
shown in the following schedule, to-wit:
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Bond Nos. Maturity Amount
1 - 2 March 15, 1951 $ 2,000.00
3 - 5 " II 1952 3,000.00
6 - 7 " " 1953 2,000.00
8 - 10 " II 1954 3,000.00
11 - 13 " II 1955 3,000.00
14 - 16 " II 1956 3,000.00
17 - 19 It " 1957 3,000.00
20 - 22 " 11 1958 3,000.00
23 - 25 " " 1959 3,000.00
26 - 28 II II 1960 3,000.00
29 - 30 II " 1961 2,000.00
31 - 33 II II 1962 3,000.00
34 36 IJ " 1963 3,000.00
37 - 40 It " 1964 4,000.00
41 - 43 II " 1966 3,000.00
44 - 47 " II 1966 4,000.00
48 - 52 /I II 1967 5,000.00
53 - :.56 II II 1968 4,000.00
57 - 61 II II 1969 5,000.00
62 64 1/ II 1970 3,000.00
65 68 " " 1971 4,000.00
69 - 72 " " 1972 4,000.00
73 - 76 " II 1973 4,000.00
77 - 81 II II 1974 5,000.00
82 - 86 II It 1975 5,000.00
87 - 91 II " 1976 5,000.00
92 - 96 II II 1977 5,000.00
97 - 100 " 11 1978 4,000.00
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The City of La Porte reserves the right to redeem in inverse
numerical order, all or any part of said bonds then outstanding on
March 15, 1963, or on any interest payment date thereafter by pay-
ing to the owners and holders of said bonds the principal thereof
plus accrued interest to the date fixed for redemption.
If the
eity elects to redeem all or any part of said bonds, notice thereo
in writing shall be mailed, properly stamped and addressed, to the
First National Bank, La Porte, Texas, and shall be published at
least one time in a financial journal published in New York, New
York, and of general circulation in the United States of America
and said notice shall be mailed and published at least thirty (30)
days before the date fixed for redemption.
l'Jhen said bonds, or
any part thereof, have been called for redemption and notice there-
of given as herein specified and due provision has been made to re-
deem the sa~e, the right of the owners and holders to collect in-
terest which would otherwise accrue, shall terminate as of the date
fixed for redemption.
Section 3:
Said bonds shall bear interest from March 15, 1950
a t the follol.'ling rates: Bonds Nos. 1 to 40, both inclusive, at the
rate of 2-1/'2% per annum; and Bonds Nos. 41 to 100, both inclusive,
at the rate of 2-3/4% per annum, interest payable September 1),
1950 and semi-annually thereafter on March 15th and September 15th
in each year until the principal sum is paid.
Both principal and
interest shall be payable in lawful money of the United States of
America at the First National Bank, La Porte, Texas, upon presenta-
tion and surrender of the bonds as they severally become due or, as
to interest f~lling due on and prior to maturity, upon presentation
and surrender of the interest coupons attached t9 said bonds as the
severally become due.
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I Section 4:
That each of said bonds shall be signed by the Mayor,
countersigned by the City Clerk, and the corporate seal of the City
shall be impressed upon each of said bonds.
The facsimile signa-
tures of the Mayor and City Clerk may be lithographed, en~raved
or printed t~pon the coupons attached to said bonds and shall have
the same effect as if they had been signed by said officers.
Section 5:
The form of said bonds shall be substantially as fol-
lows:
No.
$1,000.00
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UNITED STATES OF AI~RICA
STATE OF TEXAS
COU~~Y OF HARRIS
CITY OF LA PORTE WATERWORKS AND SE\AJ'ER SYSTEM HEVBNUE BOND,
SERIES
1950
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for value received, hereby acknowledges itself indebted to and
promises to pay to the bearer on the 15th day of March, 19___, the
sum of
ONE THOUSAND DOLLARS
($1,000.00), in lawful money of the United States of America with
interest thereon from the date hereof at the rate of (*%) per an-
num, payable 3eptember 15, 1950 and semi-annually thereafter on
March 15th and September 15th in each year until the principal sum j
shall be paid. Interest falling due on and prior to maturity is
payable only upon presentation and surrender of the interest coupon
attached hereto as they severally become due and all interest shall
be payable onJ.y from the special fund hereafter specified, both
pr:1,ncipal and interest being payable at the First National Bank,
La Porte, Texas.
The date of this bond, in conformity with the ordinance herein
after mentioned, is March 15, 1950.
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Section 6:
The form of coupon to be attached to saie bonds shall
be substantially as follows:
No.
$
On the 15th day of
, 19___, * the City of La Porte,
in the County of Harris, state of Texas, promises to pay to bearer
at the First National Bank, La Porte, Texas, the sum of
$
in lawful money of the United States of
America, solely from the special fund specified in the bond to
which this coupon is attached, said sum being the interest due that
day on the City of La Porte Waterworks and Sewer System Revenue
Bond, Series 1950, dated March 15, 1950.
The holder hereof shall
never have the riF,ht to demand payment of this obligation out of
any funds raised or to be raised by taxation.
Bond No.
Mayor
Ci tJi' Clerk
*(Bonds Nos. 37 to 100, both inclusive, shall contain the fol-
lowing additional clause:
unless said bonds shall have been called for previous redemp-
, tion as herei~ provided and due provision has been made for the re-
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III demption thereof,).
Section 7: ~hat substantially the following certificate shll be
printed on the back of each of said bonds:
OFFICE OF THE COMPTROLLER
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i THE STATE OF 'rEXAS
REGISTER NO.
I hereby certify that there is on file and of record in my of-
I fice a certificate of the Attorney General of the State of Texas
I to the effect that this bond has been examined by him as required
! by law, and that he finds that it has been issued in conformity with
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the Constitution and laws of the State of Texas, and that it is a
valid and binding special obligation of said City of La Porte,
Texas, payable from the revenues pledged to its payment by and in
the ordinance authorizing same, and said bond has this day oeen
registered by me.
WITNESS my hand and seal of office at Austin, Texas, this
da~/ of
, 1950.
Comptroller of Public Accounts
of the State of Texas
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Section B:
That said bonds shall be issued upon the terms and
conditions contained in Sections VIII, IX, X, XI, XlI and XIII, in-
It
elusive, of the bond ordinance enacted by the City Commission of
the City of La Porte, Texas, on the 16th day of March, 1948, being
captioned as follows: "AN ORDINANCE BY THE CITY COlVli.vIISSION OF T1lli
CITY Oi,' LA PORTE, TEXAS, AUTHORIZING THE ISSUANCE OF THE CITY Oli'
LA POR'i.'E WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SEHIES 1948, IN
THE AMOUNT OF ~2:,O,OOO, FOR THE PURPOSE OF CONSTRUCTING EXTENSIONS
AND IMPROVEMENTS TO THE WATERWORKS SYSTEM AND TO THE SE.\'1ER SYST~Ivl
OF SAID CITYj PRESCRIBING THE FORM OF BOND AND INTErlEST COUPON;
PLLDGING THE REVENUES OF THE ltlATERWORKS SYSTEM AND Tllli SElfBrl SYST~M
OF SAID CITY TO PAY THE PRINCIPAL OF AND INTER~ST ON SAID BO~mS
AFTER PROVIDING FOR THE EXPENSES OF OPERATING SAID SYSTEMS j MAKING
pERTAIN COVENANTS OF SAID CITY WITH REFERENCE TO THE BOND FUND li'rlOlVl
-VfrlICH SAID PRINCIPAL AND INTEREST ARE TO BE PAIDj PROVIDING THAT T
HOLDER O~ HOLDERS OF SAID BONDS SHALL NEVEH HAVZ TH:ci: RIGHT TO DE-
MAND PAYMENT OF SAID O:i:3LIGATIONS OUT OF ANY }t'UNDS RAISiID OR '1'0 .BE
RAISED BY TAXATIONj IvUUCING CERTAIN PROVISIONS WITH REFERENCE TO THE
ISSUANCE OF THE REMAINING BONDS AUTHORIZED AT THE EJECTION HELD ON
FEBRUARY 21, 1948, AND DECLARING AN EMERGENCY", except where the de i-
gnated provisions of said bond ordinance of the 16th day of I~rch,
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1948~ are inconsistent and in conflict with the term~ of this ordi-
nance, in wh~ch event the provisi?ns of this .ordinance shall govern.
Section 9:
When said bonds have been approved by the Attorney
General of Texas and registered by the Comptroller of Public Ac-
counts of Texas, they shall be delivered to the purchaser upon re-
ceipt of the purchase price.
The Mayor~ City Clerk and City
Treasurer are autherized and directed to do any and all things
necessary and/or convenient to carry out the provisions of this
ordinance.
PASSED and APPROVED this J,-01l/ day of July, 19?O.
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ATTEST:
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