HomeMy WebLinkAboutO-1989-1652
..
.
.ERTIFICATE FOR ORDINANCE. '
We, the undersigned being the duly acting Mayor and City
Secretary of the City of La Porte, Texas (the "city"), hereby certify
as follows:
,
.'
1. The City Council of the City (the "Council") convened in
regular session, open to the public, on July 5, 1989, at the meeting
place designated in the notice (the "Meeting"), and the roll was
called of the members, to wit: Norman Malone, Mayor, and the following
City Councilmembers: Deotis Gay, B. Don Skelton, Ed Matuszak, Betty
Waters, Michael Shipp, Edward G. Clarke, Michael Cooper, and Bob
MCLaUghlin.vO~All ~embers of the Council were present, except
b? ~~~L"'j ,
thus constitu ng a quorum. Whereupon among other business, the
fallowing was transacted at the Meeting a written ordinance, entitled:
ORDINANCE AUTHORIZING THE ISSUANCE OF $4,550,000 CITY OF LA PORTE,
TEXAS, GENERAL OBLIGATION BONDS, SERIES 1989; EXECUTION OF A PAYING
AGENT/REGISTRAR AGREEMENT; AND ALL OTHER MATTERS RELATED THERETO,
INCLUDING IMMEDIATE EFFECTIVENESS (the "Ordinance") was duly
introduced for the consideration of the Counc~~and read in full. It
was then duly ~pve~ by Councilmember ~ and seconded by
Councilmember ~ that the Ordinance be finally passed
and adopted and become immediately effective; and, after due discus-
sion, such motion, carrying with it the adoption of the Ordinance
prevailed and carried by the following vote:
YES:
i
NOES:
o
ABSTENTIONS: 0
2. A true, full, and correct copy of the Ordinance adopted at
the Meeting is attached to and follows this Certificate; the Ordinance
has been duly recorded in the Council's minutes of the Meeting; the
above and foregoing 'paragraph is a true, full, and correct excerpt
from the Council's minutes of the Meeting pertaining to the adoption
of the Ordinance; the persons named in the above and foregoing
paragraph are duly chosen, qualified, and acting officers and members
of the Council as indicated therein; each of the officers and members
of the Council was duly and sufficiently notified officially and
personally, in advance, of the time, place, and purpose of the
Meeting, and that the Ordinance would be introduced and considered for
adoption at the Meeting and each of such officers and members
consented, in advance, to the holding of the Meeting for such purpose;
and the Meeting was open to the public, and public notice of the time,
place, purpose of the Meeting was given, all as required by Article
6252-17, Vernon's Texas civil Statutes, as amended.
3. Cherie Black is the duly appointed and acting City Secretary
of the city.
,c;L
City of La Porte
i HI /fJt
(.:f1.-<~ ~
M~(; i ~ f a orte, Texas
SIGNED AND SEALED THIS .a ~
(CITY SEAL)
., '
.}
.
.
,
LAPORTE2 DRAFT 6/29/89
ORDINANCE NO. /,~~
ORDINANCE AUTHORIZING THE ISSUANCE OF $4,550,000 CITY OF
LA PORTE, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1989; EXECUTION
OF A PAYING AGENT/REGISTRAR AGREEMENT; AND ALL OTHER MATTERS
RELATED THERETO, INCLUDING IMMEDIATE EFFECTIVENESS
WHEREAS, at an election duly called and held in the City of
La Porte, Texas (the "City") on June 15, 1985 (the "Election"),
more than a majority of the duly qualified resident electors of
the City who participated in the election voted in favor of,
among other things, the issuance of tax supported bonds for
various purposes, including those described below; and
WHEREAS, the City has heretofore issued "City of La Porte,
Texas General Obligation Bonds, Series 1985" in the original
aggregate principal amount of $5,000,000 as the first installment
of bonds authorized at the Election for various purposes;
including those described below; and
WHEREAS, the City Council of the City deems it necessary and
desirable to proceed with the issuance of another installment of
bonds authorized at the Election in the aggregate principal
amount of $4,550,000, leaving certain of said bonds to be issued
in one or more installments at a later date or dates all as
described in the following table:
Purpose
Authorized Previously
Amount Issued
This Remaining
Issue Authorization
Constructing improve- $2,500,000 $1,000,000 $1,000,000 $500,000
ments to the streets
in the City, including
necessary drainage in
connection therewith
Acquiring and improv-
ing a sanitary land-
fill, including the
purchase of necessary
sites therefor
$4,000,000
-0-
$2,500,000 $1,500,000
Constructing or pur- $1,500,000 $450,000 $1,050,000 -0-
chasing a public build-
ing, namely a fire
department training
facility and related
improvements, includ-
ing the purchase of a
site therefor
, .
,
.
.
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, TEXAS, THAT;
section 1. BONDS AUTHORIZED. The preamble to this
Ordinance is hereby made a part hereof and pursuant to Article
701 et. seq., Vernon's Texas civil Statutes, as amended, and
other applicable law, the City's bonds to be designated as the
"City of La Porte, Texas, General Obligation Bonds, Series 1989"
for the following purposes: $1,000,000 for constructing
improvements to the streets in the ci ty , including necessary
drainage in connection therewith; $2,500,000 for improving
sanitary landfill, including the purchase of the necessary sites
therefor; and $1,050,000 for constructing or purchasing a public
building, namely a fire department training facility and related
improvements, including the purchase of a site therefor.
section 2. DATES AND MATURITIES. The Bonds shall be dated
July 15, 1989, shall be in the denomination of $5,000 or any
integral multiple thereof, shall be numbered consecutively from
R-1 upward, and shall mature on the maturity date, in each of the
years, and in the amounts , respectively, as set forth in the
following schedule:
MATURITY DATE: FEBRUARY 15
YEAR AMOUNTS YEAR AMOUNTS
1991 $225,000 2001 $225,000
1992 225,000 2002 225,000
1993 225,000 2003 225,000
1994 225,000 2004 225,000
1995 225,000 2005 225,000
1996 225,000 2006 225,000
1997 2;:5,000 2007 225,000
1998 225,000 2008 225,000
1999 225,000 2009 250,000
2000 225,000 2010 250,000
section 3. RIGHT OF PRIOR REDEMPTION. The City reserves the
right to redeem the Bonds maturing on or after February 15, 2001,
in whole or in part in principal amounts of $5,000 or any
integral multiple thereof, on February 15, 2000, or any date
thereafter, at the par value thereof plus accrued interest to the
date fixed for redemption. If less than all of the Bonds are to
be redeemed by the City, the City shall determine the maturity or
maturities and the amounts thereof to be redeemed and shall
direct the Paying Agent/Registrar to call Bonds, or portions
thereof, within such maturity or maturities and in such principal
amounts, for redemption.
At least 30 days prior to the date any such Bonds are to be
redeemed, (i) a written notice of redemption shall be given to
the registered owner of each Bond or a portion thereof being
2
~ ..
.
e
called for redemption by depositing such notice in the united
states mail, postage prepaid, addressed to each such registered
owner at his address shown on the registration books of the
Paying Agent/Registrar (hereinafter defined) and (ii) a notice of
such redemption shall be published one time in a financial'
journal or publication of general circulation in the united
states of America carrying as a regular feature notices of
municipal bonds called for redemption: provided, however, that
the failure to send, mail, or receive such notice described in
(i) above, or any defect therein or in the sending or mailing
thereof, shall not affect the validity or effectiveness of the
proceedings for the redemption of any Bond, and the publication
of notice as described in (ii) above shall be the only notice
actually required in connection with or as a prerequisite to the
redemption of any Bonds. By the date fixed for any such re-
demption due provision shall be made by the City with the Paying
Agent/Registrar for the payment of the required redemption price
for the Bonds or the portions thereof which are to be so
redeemed, plus accrued interest thereon to the date fixed for
redemption. If such notice of redemption is given, and if due
provision for such payment is made, all as provided above, the
Bonds, or the portions thereof which are to be so redeemed,
thereby automatically shall be redeemed prior to their scheduled
maturities, and shall not bear interest after the date fixed for
their redemption, and shall not be regarded as being outstanding
except for the right of the registered owner to receive the
redemption price plus accrued interest to the date fixed for
redemption from the Paying Agent/Registrar out of the funds
provided for such payment. The Paying Agent/Registrar shall
record in the Registration Books all such redemptions of
principal of the Bonds or any portion thereof. If a portion of
any Bond shall be redeemed a substitute Bond or Bonds having the
same maturity date, bearing interest at the same rate, in any
denomination or denominations in any integral multiple of $5,000,
at the written request of the registered owner, and in an
aggregate principal amount equal to the unreserved portion
thereof, will be issued to the registered owner upon the
surrender thereof for cancellation, at the expense of the City
all as provided in this Ordinance.
section 4. INTEREST. The Bonds scheduled to mature during
the years, respectively, set forth below shall bear interest at
the following rates per annum:
3
.
e
maturities 1991, % maturities 2001, %
maturities 1992, % maturities 2002, %
maturities 1993, % maturities 2003, %
maturities 1994, % maturities 2004, %
maturities 1995, % maturities 2005, %
maturities 1996, % maturities 2006, %
maturities 1997, % maturities 2007, %
maturities 1998, % maturities 2008, %
maturities 1999, % maturities 2009, %
maturities 2000, % maturities 2010, %
payable February 15, 1990, and semiannually thereafter on August
15 and February 15. Said interest shall be payable to the
registered owner of any such Bond in the manner provided in the
FORM OF BONDS set forth in this Ordinance.
section 5. PAYING AGENT/REGISTRAR. (a) The city shall keep
or cause to be kept at the principal corporate trust office of
the Paying Agent/Registrar herein named, or such other bank,
trust company, financial institution, or other entity duly
qualified and legally authorized to serve and perform duties of
and services of Paying Agent/Registrar, named in accordance with
the provisions of (g) of this Section hereof (the "Paying Agent/-
Registrar"), books or records of the registration and transfer of
the Bonds (the "Registration Books"), and the City hereby
appoints the Paying Agent/Registrar 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
Paying Agent/Registrar may prescribe; and the Paying
Agent/Registrar shall make such transfers and registrations as
herein provided. It shall be the duty of the Paying
Agent/Registrar to obtain from the registered owner and record in
the Registration Books the address of such registered owner of
each Bond to which payments with respect to the Bonds shall be
mailed, as herein provided. The City or its designee shall have
the right to inspect the Registration Books 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. Registration of
each Bond may be transferred in the Registration Books only upon
presentation and surrender of such bond to the paying
Agent/Registrar 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 the assignment of the bond, 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 to have the bond or any such portion thereof registered
in the name of such assignee or assignees. Upon the assignment
and transfer of any Bond or any portion thereof, a new substitute
bond or bonds shall be issued in exchange therefor in the manner
herein provided.
4
e
e
(b) The entity in whose name any Bond shall be registered
in the Registration Books at any time shall be treated as the
absolute owner thereof for all purposes of this Ordinance,
whether or not such bond shall be overdue, and the city and the
Paying Agent/Registrar shall not be affected by any notice to the
contrary unless otherwise required by law; and payment of, or on
account of, the principal of, premium, if any, and interest on
any such bond shall be made only to such registered owner. All
such payments shall be valid and effectual to satisfy and
discharge the liability upon such bond to the extent of the sum
or sums so paid.
(c) 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, and to act as its agent
to exchange or replace Bonds, all as provided in this Ordinance.
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 exchanges of such bonds, and all
r~placements of such bonds, as provided in this Ordinance.
(d) Each Bond may be exchanged for fully registered bonds
in the manner set forth herein. Each bond issued and delivered
pursuant to this Ordinance, to the extent of the unpaid or
unredeemed principal balance or principal amount thereof, may,
upon surrender of such bond at the principal corporate trust
office of the Paying Agent/Registrar, together with a written
request therefor duly executed by the registered owner or the
assignee or assignees thereof, or its or their duly authorized
attorneys or representatives, with guarantee of signatures
satisfactory to the Paying Agent/Registrar, at the option of the
registered owner or such assignee or assignees, as appropriate,
be exchanged for fully registered bonds, without interest
coupons, in the form prescribed in the FORM OF BONDS set forth in
this Ordinance, in the denomination of $5,000, or any integral
multiple of $5,000 (subject to the requirement hereinafter stated
that each substitute Bond shall have a single stated maturity
date), as requested in writing by such registered owner or such
assignee or assignees, in an aggregate principal amount equal to
the unpaid or unredeemed principal amount of any bond or bonds so
surrendered, and payable to the appropriate registered owner,
assignee, or assignees, as the case may be. If a portion of any
Bond shall be 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. If any Bond or portion thereof is assigned and
transferred, each bond issued in exchange therefor 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
5
e
e
.
each other bond. The Paying Agent/Registrar shall exchange or
replace Bonds as provided herein, and each fully registered bond
delivered in exchange for or replacement of any bond or portion
thereof as permitted or required by any provision of this
Ordinance shall constitute one of the Bonds for all purposes of
this Ordinance, and may again be exchanged or replaced. It is
specifically provided, however, that any bond delivered in
exchange for or replacement of another bond prior to the first
scheduled interest payment date on the Bonds (as stated on the
face thereof) shall be dated the same date as such bond, but each
substitute bond so delivered on or after such first scheduled
interest payment date shall be dated as of the interest payment
date preceding the date on which such substitute bond is
delivered, unless such bond is delivered on an interest payment
date, in which case it shall be dated as of such date of
delivery; provided, however, that if at the time of delivery of
any substitute bond the interest on the bond for which it is
being exchanged has not been paid, then such bond shall be dated
as of the date to which such interest has been paid in full. On
each substitute bond issued in exchange for or replacement of any
bond or bon~s issued under this Ordinance there shall be 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, date such by dating the Authentication certificate in the
,manner set forth above, and manually sign such certificate, and
no such bond shall be deemed to be issued or outstanding unless
such certificate is so executed. The Paying Agent/Registrar
promptly shall cancel all Bonds surrendered for exchange or
replacement. No additional ordinances, orders, or resolutions
need be passed or adopted by the city Councilor any other body
or person so as to accomplish the foregoing exchange or
replacement of any Bond or portion thereof, and the Paying
Agent/Registrar shall provide for the printing, execution, and
delivery of the substitute bonds in the manner prescribed herein,
and said bonds shall be of type composition printed on paper with
1 i thographed or steel engraved borders of customary weight and
strength pursuant to Article 717k-6, V.A.T.C.S, and particularly
section 6 thereof, the duty of such exchange or replacement of
bonds as aforesaid is hereby imposed upon the Paying Agent/Regis-
trar, and upon the execution of the aforementioned Paying
Agent/Registrar's Authentication Certificate, the exchanged or
replaced Bond shall be valid, incontestable, and enforceable in
the same manner and with the same effect as the Bonds which
originally were delivered pursuant to this Ordinance, approved by
the Attorney General, and registered by the comptroller of Public
Accounts. Neither the City nor the Paying Agent/Registrar shall
be required (1) to issue, transfer, or exchange any Bond subject
to redemption during a period beginning at the opening of
business 15 days before the day of the first mailing of a notice
of redemption of Bonds and ending at the close of business on the
day of such mailing, or (2) to transfer or exchange any Bond
after it is selected for redemption, in whole or in part when
such redemption is scheduled to occur within 30 calendar days;
6
, .
e
e
provided, however, that such limitation shall not be applicable
to an exchange by the owner of the uncalled principal balance of
a Bond.
(e) All Bonds issued in 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
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.
(f) The City shall pay all of the Paying Agent/Registrar's
reasonable and customary fees and charges for making transfers,
conversions, and exchanges of the Bonds in accordance with an
agreement between the City and the Paying Agent/Registrar, but
the registered owner of any Bond requesting such transfer shall
pay any taxes or other governmental charges required to be paid
wi th respect thereto. In addition, the City hereby covenants
with the registered owners of the Bonds that it will 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.
(g) The City covenants with the registered owners of the
Bonds that at all times while the Bonds are outstanding the city
will provide a competent and legally qualified national or state
banking institution, which shall be a corporation organized and
doing business under the laws of the United States of America or
of any state, authorized under such laws to exercise trust
powers, and subject to supervision or examination by federal or
state authorities, or other entity duly qualified and legally
authorized to serve as and perform the duties and services of
Paying Agent/Registrar, to act as and perform the services of
Paying Agent/Registrar for the Bonds under this Ordinance, and
that the Paying Agent/Registrar will be one entity. The City
reserves the right to, and may, at its option, change the Paying
Agent/Registrar upon not less than 60 days written notice to the
Paying Agent/Registrar. In the event that the entity at any time
acting as Paying Agent/Registrar (or its successor by merger,
acquisition, or other method) should resign or otherwise cease to
act as such, the city covenants that promptly it will appoint a
competent and legally qualified entity whose qualifications
substantially are similar to the previous Paying Agent/Registrar
to act as Paying Agent/Registrar under this Ordinance. Upon any
change in the Paying Agent/Registrar, the previous Paying
Agent/Registrar promptly shall transfer and deliver the
Registration Books (or a copy thereof), along with all other
pertinent books and records relating to the Bonds, to the new
Paying Agent/Registrar designated and appointed by the city.
7
e
e
Upon any change in the Paying Agent/Registrar, the City promptly
will cause a written notice thereof to be sent by the new Paying
Agent/Registrar to each registered owner of the Bonds, by United
states Mail, postage prepaid, which notice also shall give the
address of the new Paying Agent/Registrar. By accepting the
position and performing as such, each Paying Agent/Registrar
shall be deemed to have agreed to the provisions of this
Ordinance, and a certified copy of this Ordinance shall be
delivered to each Paying Agent/Registrar.
Section 6. FORMS. The form of the Bonds, including the
form of paying Agent/Registrar's Certificate, the form of
Assignment, and the form of the Comptroller's Registration
certificate to accompany the Bonds on the initial delivery
thereof, shall be, respectively, substantially as follows, with
such appropriate variations, omissions, or insertions as are
permitted or required by this Ordinance:
FORM OF BONDS:
NO.
$
United States of America
State of Texas
CITY OF LA PORTE, TEXAS,
GENERAL OBLIGATION BOND, SERIES 1989
INTEREST RATE
%
ORIGINAL ISSUE DATE
July 15, 1989
CUSIP
MATURITY DATE
ON THE MATURITY DATE, SPECIFIED ABOVE, THE CITY OF LA PORTE,
TEXAS (the "City"), hereby promises to pay to
, or the registered assignee hereof (either
being hereinafter called the "registered owner") the principal
amount of
and to pay interest thereon, from the original issue date of this
Bond, specified above, to the date of its scheduled maturity or
the date of its redemption prior to scheduled maturity, at the
rate of interest per annum, specified above, with said interest
being payable on February 15, 1990, and semiannually on each
August 15 and February 15 thereafter.
THE TERMS AND PROVISIONS of this Bond are continued on the
reverse side hereof and shall for all purposes have the same
effect as though fully set forth at this place.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in
lawful money of the United States of America, without exchange or
collection charges. The principal of this Bond shall be paid to
the registered owner hereof upon presentation and surrender of
this Bond at maturity or upon the date fixed for its redemption
8
e
e
prior to maturity, at the principal corporate trust office of
FIRST CITY, TEXAS - HOUSTON, N.A., HOUSTON, TEXAS, which is the
"Paying Agent/Registrar" for this Bond. The payment of interest
on this Bond shall be made by the Paying Agent/Registrar to the
registered owner hereof as shown by the Registration Books kept
by the Paying Agent/Registrar at the close of business on the
Record Date by check drawn by the Paying Agent/Registrar on, and
payable solely from, funds of the City required to be on deposit
with the Paying Agent/Registrar for such purpose as hereinafter
provided; and such check shall be sent by the Paying
Agent/Registrar by united States mail, postage prepaid, on each
such interest payment date, to the registered owner hereof at its
address as it appears on the Registration Books kept by the
Paying Agent/Registrar, as hereinafter described. The record
date ("Record Date") for the interest payable on any interest
payment date means the last business day of the month next
preceding a scheduled interest payment. In the event of a
non-payment of interest on a scheduled 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 15 calendar
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
registered 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. The City
covenants with the registered owner of this Bond that no later
than each principal payment date and interest payment date for
this Bond it will make available to the Paying Agent/Registrar
the amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the Bonds,
when due, in the manner set forth in the ordinance authorizing
the issuance of the bonds adopted by the City Council of the City
on July 5, 1989 (the "ordinance").
*IF THE DATE for the payment of the principal of or interest
on this Bond shall be a Saturday, a Sunday, a legal holiday, or a
day on which banking institutions in the city where the Paying
Agent/Registrar is located are authorized by law or executive
order to close, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal
holiday, or day on which banking institutions are authorized to
close; and payment on such date shall have the same force and
effect as if made on the original date payment was due.
*THIS BOND is one of a Series of bonds of like tenor and
effect except as to denomination, number, maturity, interest rate
and right of prior redemption, issued in the aggregate principal
amount of $4,550,000 for the following purposes: $1,000,000 for
constructing improvements to the streets in the City, including
9
e
e
necessary drainage in connection therewith; $2,500,000 for
improving sanitary landfill, including the purchase of the
necessary sites therefor; and $1,050,000 for constructing or
purchasing a public building, namely a fire department training
facility and related improvements, including the purchase of a
site therefor.
*THE BONDS of this series scheduled to mature on and after
February 15, 2001 may be redeemed prior to their scheduled
maturities, in whole, or in part in principal amounts of $5,000
or any integral multiple thereof, at the option of the City, on
February 15, 2000, or on any interest payment date thereafter,
for the principal amount thereof plus accrued interest to the
date fixed for redemption.
*AT LEAST 30 days prior to the date fixed for any such
redemption, (i) a written notice of such redemption shall be
given to the registered owner of each Bond or a portion thereof
being called for redemption by depositing such notice in the
Uni ted States Mail, postage prepaid, addressed to each such
registered owner at his address shown on the Registration Books
of the Paying Agent/Registrar and (ii) a notice of such
redemption shall be published one time in a financial journal or
publication of general circulation in the united States of
America carrying as a regular feature notices of municipal bonds
called for redemption; provided, however, that the failure to
send, mail or receive such notice described in (i) above, or any
defect therein or in the sending or mailing thereof, shall not
affect the validity or effectiveness of the proceedings for the
redemption of any Bond, and the publication of notice as
described in (ii) above shall be the only notice actually
required in connection with or as a prerequisite to the
redemption of any Bonds. By the date fixed for any such
redemption due provision shall be made by the City with the
Paying Agent/Registrar for the payment of the required redemption
price for this Bond or the portion hereof which is to be so
redeemed, plus accrued interest thereon to the date fixed for
redemption. If such notice of redemption is given, and if due
provision for such payment is made, all as provided above, this
Bond, or the portion thereof which is to be so redeemed, thereby
automatically shall be redeemed prior to its scheduled maturity,
and shall not bear interest after the date fixed for its
redemption, and shall not be regarded as being outstanding except
for the right of the registered owner to receive the redemption
price plus accrued interest to the date fixed for redemption from
the Paying Agent/Registrar out of the funds provided for such
payment. The Paying Agent/Registrar shall record in the
Registration Books all such redemptions of principal of this Bond
or any portion hereof. If a portion of any Bond shall be
redeemed a substitute Bond or Bonds having the same maturity
date, bearing interest at the same rate, in any denomination or
denominations in any integral multiple of $5,000, at the written
request of the registered owner, and in aggregate principal
amount equal to the unredeemed portion thereof, will be issued to
10
. .
e
e
the registered owner upon the surrender thereof for cancellation,
at the expense of the City, all as provided in the Ordinance.
*ALL BONDS OF THIS SERIES are issuable solely as fully
registered bonds, without interest coupons, in the denomination
of any integral multiple of $5,000. As provided in the
Ordinance, this Bond, or any unredeemed portion hereof, may, at
the request of the registered owner or the assignee or assignees
hereof, be assigned, transferred, and exchanged for a like
aggregate principal amount of fully registered bonds, without
interest coupons, payable to the appropriate registered owner,
assignee, or assignees, as the case may be, having the same
maturity date, and bearing interest at the same rate, in any
denomination or denominations in any integral multiple of $5,000
as requested in writing by the appropriate registered owner,
assignee, or assignees, as the case may be, upon surrender of
this Bond to the Paying Agent/Registrar for cancellation, all in
accordance with the form and procedures set forth in the
Ordinance. Among other requirements for such assignment and
transfer, this Bond must be presented and surrendered to the
paying Agent/Registrar, together with proper instruments of
assignment, in form and with guarantee of signatures satisfactory
to the Paying Agent/Registrar, evidencing assignment of this Bond
or any portion or portions hereof in any integral multiple of
$5,000 to the assignee or assignees in whose name or names this
Bond or any such portion or portions hereof is or are to be
transferred and registered. The form of Assignment printed or
endorsed on this Bond may be executed by the registered owner to
evidence the assignment hereof, but such method is not exclusive,
and other instruments of assignment satisfactory to the Paying
Agent/Registrar may be used to evidence the assignment of this
Bond or any portion or portions hereof from time to time by the
registered owner. The Ci ty shall pay the Paying
Agent/Registrar's reasonable standard or customary fees and
charges for transferring, converting and exchanging any Bond or
portion thereof; provided, however, that any taxes or
governmental charges required to be paid with respect thereto
shall be paid by the one requesting such transfer, conversion and
exchange. In any circumstance, neither the City nor the Paying
Agent/ Registrar shall be required (1) to make any transfer or
exchange during a period beginning at the opening of business 15
days before the day of the first mailing of a notice of
redemption of bonds and ending at the close of business on the
day of such mailing, or (2) to transfer or exchange any Bonds so
selected for redemption when such redemption is scheduled to
occur within 30 calendar days; provided, however, such limitation
shall not be applicable to an exchange by the registered owner of
the uncalled principal balance of a Bond.
*IN THE EVENT any Paying Agent/Registrar for the Bonds is
changed by the City, resigns, or otherwise ceases to act as such,
the city has covenanted in the Ordinance that it promptly will
appoint a competent and legally qualified substitute therefor,
11
. .
e
e
and promptly will cause written notice thereof to be mailed to
the registered owners of the Bonds.
*BY BECOMING the registered owner of this Bond, the
registered owner thereby acknowledges all of the terms and
provisions of the Ordinance, agrees to be bound by such terms and
provisions, acknowledges that the Ordinance is duly recorded and
available for inspection in the official minutes and records of
the City, and agrees that the terms and provisions of this Bond
and th~ Ordinance constitute a contract between each registered
owner hereof and the city.
*THE BONDS ARE PAYABLE FROM the proceeds of an ad valorem
tax levied upon all taxable property within the City within the
limitations prescribed by law. Reference is hereby made to the
Ordinance for a description- of the covenants by which the Bonds
are secured, the respective rights thereunder of the registered
owners of the Bonds and the City, and the terms upon which the
Bonds are, and are to be, authenticated and delivered.
IT IS HEREBY certified and covenanted that this Bond has
been duly and validly authorized, issued, and delivered; that all
acts, conditions, and things required or proper to be performed,
exist, and be done precedent to or in the authorization,
issuance, and delivery of this Bond have been performed, existed,
and been done in accordance with law; and that the issuance of
this Bond does not exceed any constitutional or statutory
limitation.
IN TESTIMONY WHEREOF, the City Council has caused the seal
of the City to be duly impressed or placed in facsimile hereon,
and this Bond to be signed with the imprinted facsimile signature
of the Mayor and countersigned by the facsimile signature of the
City Secretary.
COUNTERSIGNED:
xxxxxxxx
City Secretary, city of La Porte
xxxxxxxx
Mayor, City of La Porte
(CITY SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued under
the provisions of the Ordinance described on the face of this
Bond; and that this Bond has been issued in exchange for or
replacement of a bond, bonds, or a portion of a bond or bonds of
an issue which originally was approved by the Attorney General of
12
, '
e
e
the state of Texas and registered by the Comptroller of Public
Accounts of the state of Texas.
Dated
FIRST CITY, TEXAS - HOUSTON, N.A.,
HOUSTON, TEXAS
Paying Agent/Registrar
By
Authorized Representative
FORM OF STATEMENT OF INSURANCE
*STATEMENT OF INSURANCE
[TO COME]
FORM OF ASSIGNMENT:
*ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers unto
Please insert Social security or Taxpayer
Identification Number of Transferee
/
/
(Please print or typewrite name and address, including
zip code of Transferee)
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to register the transfer of the within Bond on the
books kept for registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
NOTICE: The signature above
must correspond with the name
of the Registered Owner as it
appears upon the front of this
Bond in every particular,
without alteration or enlarge-
ment or any' change whatsoever.
NOTICE: Signature(s) must
be guaranteed by a member
firm of the New York Stock
Exchange or a commercial
bank or trust company
13
, .
e
e
**(FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE BONDS UPON INITIAL DELIVERY THEREOF)
OFFICE OF COMPTROLLER
REGISTER NO.
STATE OF TEXAS
.
.
I hereby certify that this Bond has been examined, certified
as to validity, and approved by the Attorney General of the State
of Texas, and that this Bond has been registered by the
Comptroller of Public Accounts of the State of Texas.
witness my signature and seal this
( SEAL)
XXXXXXX
Comptroller of Public Accounts of
the State of Texas
NOTE TO PRINTER:
*!s to be on reverse side of bond
**!s not to be on bond
section 7. DEFINITIONS. As used in this Ordinance, the
following terms shall have the meanings set forth below, unless
the text hereof specifically indicates otherwise:
(a) The terms "Bond" or "Bonds" shall mean one or more, as
the case may be, of the Bonds authorized to be issued by this
Ordinance.
(b) The terms "City" and "Issuer" shall mean the city of La
Porte, Texas, or where appropriate the City Council thereof.
(c) The term "City Council" shall mean the governing body
of the city.
(d) The term "Interest and sinking Fund" means the fund
provided for in section 9 hereof.
(e) The term "Year" or "fiscal year" shall mean the regular
fiscal year used by the City in connection with the operation of
the System, which may be any 12 consecutive months period
established by the City.
section 8. PLEDGE AND LEVY OF TAXES. While the Bonds are
any part of the principal thereof or the interest thereon remain
outstanding and unpaid, there is hereby levied and there shall be
annually assessed and collected in due time, form, and manner and
at the same time other city taxes are. assessed, levied, and
collected, in each year beginning with the current year, a
continuing direct annual ad valorem tax upon all taxable property
in the city sufficient to pay the current interest thereon and to
create a sinking fund of not less than two percent of the
principal amount of the Bonds then outstanding or of not less
14
e
e
than the amount required to pay the principal payable out of said
tax, whichever is greater, full allowance being made for
delinquencies and costs of collection, and said taxes, when
collected shall be applied to the principal of and interest on
the Bonds and for no other purpose.
section 9. INTEREST AND SINKING FUND. For the purpose of
paying the principal of and interest on the Bonds, as the same
come due, there is hereby created and established on the books of
the City a separate fund entitled the "City of La Porte, Texas,
General Obligation Bonds, Series 1989 Interest and sinking Fund"
(the "Interest and sinking Fund"), and all taxes levied and
collected pursuant to section 8 hereof shall be deposited as
collected into the Interest and sinking Fund.
section 10. INVESTMENTS AND SECURITY. The City Council may
place money in any fund created by this Ordinance in time or
demand deposits or invest such money as authorized by law at the
time of such deposit: provided, however, that the City hereby
covenants that the proceeds of the sale of the Bonds will be used
as soon as practicable for the purposes for which the Bonds are
issued. obligations purchased as an investment of money in a
fund shall be deemed to be a part of such fund. Except as
otherwise provided by law and Section 17 hereof, amounts received
from the investment of any money in any fund created by this
Ordinance may be placed into any fund of the City as determined
by the city Council. All funds created by this Ordinance shall
be secured in the manner and to the fullest extent required by
law for the security of funds of the city.
Section 11. DESIGNATION AS QUALIFIED TAX-EXEMPT BONDS. The
City hereby designates the Bonds as "qualified tax-exempt bonds"
as defined in section 265(b) (3) of the Internal Revenue Code of
1986, as amended (the "Code"). In furtherance of such
designation, the city represents, covenants, and warrants the
following: (a) during the calendar year in which the Bonds are
issued, the City (including any subordinate entities)' has not
designated nor will designate bonds, which when aggregated with
the Bonds, will result in more than $10,000,000 of "qualified
tax-exempt bonds" being issued:' (b) the city reasonably
anticipates that the amount of tax-exempt obligations issued
during the calendar year in which the Bonds are issued by the
city (or any subordinate entities) will not exceed $10,000,000:
and (c) the city will take such action or refrain from such
action as necessary in order that the Bonds will not be con-
sidered "private activity bonds" within the meaning of section
141 of the Code.
section 12. AMENDMENT OF ORDINANCE. (a) The holders of
the Bonds aggregating in principal amount 51% of the aggregate
principal amount of then outstanding Bonds shall have the right
from time to time to approve any amendment to this Ordinance
which may be deemed necessary or desirable by ~he city; provided,
however, that without the consent of the holders of all of the
15
e
e
Bonds at the time outstanding, nothing herein contained shall
permit or be construed to permit the amendment of the terms and
conditions in this Ordinance or in the Bonds so as to:
(1) Make any change in the maturity of the outstanding
Bonds;
(2) Reduce the rate of interest borne by any of the
outstanding Bonds;
(3) Reduce the amount of the principal payable on the
outstanding Bonds;
(4) Modify the terms of payment of principal of or interest
on the outstanding Bonds or impose any conditions with
respect to such payment;
(5) Affect the rights of the holders of less than all of
the Bonds then outstanding;
(6) Change the minimum percentage of the principal amount
of Bonds necessary for consent to such amendment.
(b) If at any time the City shall desire to amend the
Ordinance under this Section, the City shall cause notice of the
proposed amendment to be published in a financial newspaper or
journal published in The City of New York, New York, once during
each calendar week for at least two successive calendar weeks.
Such notice shall briefly set forth the nature of the proposed
amendment and shall state that a copy thereof is on file at the
principal office of the Paying Agent/Registrar for inspection by
all holders of Bonds. Such publication is not required, however,
if notice in writing is given to each holder of the Bonds.
(c) Whenever at any time not less than 30 days, and within
one year, from the date of the first publication of said notice
or other service of written notice the City shall receive an
instrument or instruments executed by the holders of at least 51%
in aggregate principal amount of all Bonds then outstanding,
which instrument or instruments shall refer to the proposed
amendment described in said notice and which specifically consent
to and approve such amendment in substantially the form of the
copy thereof on file with the Paying Agent/Registrar, the City
Council may pass the amendatory ordinance in substantially the
same form.
(d) Upon the passage of any amendatory ordinance pursuant
to the provisions of this Section, this Ordinance shall be deemed
to be amended in accordance with such amendatory ordinance, and
the respective rights, duties and obligations under this
Ordinance of the City and all the holders of then outstanding
Bonds shall thereafter be determined, exercised and enforced
hereunder, subject in all respects to such amendments.
16
e
e
(e) Any consent given by the holder of a Parity Bond
pursuant to the provisions of this section shall be irrevocable
for a period of six months from the date of the first publication
of the notice provided for in this section, and shall be
conclusive and binding upon all future holders of the same Parity
Bond during such period. Such consent may be revoked at any time
after six-months from the date of the first publication of such
notice by the holder who gave such consent, or by a successor in
title, by filing notice thereof with the Paying Agent and the
city, but such revocation shall not be effective if the holders
of 51% in aggregate principal amount of the then outstanding
Bonds as in this section defined have, prior to the attempted
revocation, consented to and approve the amendment.
(f) For the purpose of this section the fact of the holding
of Bonds issued in registered form without coupons and the
amounts and numbers of such Bonds and the date of their holding
same shall be proved by the Registration Books of the Paying
Agent/Registrar. For purposes of this Section, the holder of a
Parity Bond shall be the owner thereof as shown on such
Registration Books. The City may conclusively assume that such
ownership continues until written notice .to the contrary is
served upon the city.
(g) The foregoing prov1s1ons of this Section notwith-
standing, the City by action of the City Council may amend this
Ordinance for anyone or more of the following purposes:
(1) To add to the covenants and agreements of the City
in this Ordinance contained, other covenants and agreements
thereafter to be observed, grant additional rights or
remedies to bondholders, or to surrender, restrict, or limit
any right or power herein reserved to or conferred upon the
city;
(2) To make such provisions for the purpose of curing
any ambiguity, or curing, correcting, or supplementing any
defective provision contained in this Ordinance, or in
regard to clarifying matters or questions arising under this
Ordinance, as are necessary or desirable and not contrary to
or inconsistent with this Ordinance and which shall not
adversely affect the interests of the holders of the Bonds:
(3) To modify any of the provisions of this Ordinance
in any other respect whatever, provided that (i) such
modification shall be, and be expressed to be, effective
only after all Bonds outstanding at the date of the adoption
of such modification shall cease to be outstanding, and (ii)
such modification shall be specifically referred to in the
text of all Additional Bonds issued after the date of the
adoption of such modification.
section 13. DAMAGED, MUTILATED, LOST, STOLEN OR DESTROYED
BONDS. (a) In the event any outstanding Bond is damaged,
17
. .
. .
e
e
mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar
shall cause to be printed, executed, and delivered, a new bond of
the same principal amount, maturity, and interest rate, as the
damaged, mutilated, lost, stolen, or destroyed Bond, in
replacement for such Bond in the manner hereinafter provided.
(b) Application for replacement of damaged, mutilated,'
lost, stolen, or destroyed Bonds shall be made to the Paying
Agent/Registrar. In every case of loss, theft, or destruction of
a Bond, the applicant for a replacement bond shall furnish to the
City and to the Paying Agent/Registrar such security or indemnity
as may be required by them to save each of them harmless from any
loss or damage with respect thereto. Also, in every case of
loss, theft, or destruction of a Bond, the applicant shall
furnish to the City and to the Paying Agent/Registrar evidence to
their satisfaction of the loss, theft, or destruction of such
Bond, as the case may be. In every case of damage or mutilation
of a Bond, the applicant shall surrender to the Paying
Agent/Registrar for cancellation the Bond so damaged or
mutilated.
(c) Notwithstanding the foregoing provisions of this
Section, in the event any such Bond shall have matured, and no
default has occurred which is then continuing in the payment of
the principal of, redemption premium, if any, or interest on the
Bond, the City may authorize the payment of the same (without
surrender thereof expect in the case of a damaged or mutilated
Bond) instead of issuing a replacement Bond, provided security or
indemnity is furnished as above provided in this Section.
(d) Prior to the issuance of any replacement bond, the
Paying Agent/Registrar shall charge the owner of such Bond with
all legal, printing, and other expenses in connection therewith.
Every replacement bond issued pursuant to the provisions of this
Section by virtue of the fact that any Bond is lost, stolen, or
destroyed shall constitute a contractual obligation of the City
whether or not the lost, stolen or destroyed Bond shall be found
at any time, or be enforceable by anyone, and shall be entitled
to all the benefits of this Ordinance equally and proportionately
with any and all other Bonds duly issued under this Ordinance.
(e) In accordance with section 6 of Article 717k-6,
V.A.T.C.S., this Section of this Ordinance shall constitute
authority for the issuance of any such replacement bond without
necessity of further action by the governing body of the City or
any other body or person, and the duty of the replacement of such
bonds is hereby authorized and imposed upon the Paying
Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such bonds in the form and manner and
with the effect, as provided in section 5 (d) of this Ordinance
for Bonds issued in exchange for other Bonds.
Section 14. DEFEASANCE OF THE BONDS. (a) Any Bond and the
interest thereon shall be deemed to be paid, retired, and no
18
.'
.
.
longer outstanding (a "Defeased Bonds") within the meaning of
this Ordinance, except to the extent provided in subsection (d)
of this section 14, when payment of the principal of such Bond,
plus interest thereon to the due date (whether such due date be
by reason of maturity, upon redemption, or otherwise) either (i)
shall have been made or caused to be made in accordance with the
terms thereof (including the giving of any required notice of
redemption), or (ii) shall have been provided for on or before
such due date by irrevocably depositing with or making available
to the paying Agent/Registrar for such payment (1) lawful money
of the united states of America sufficient to make such payment
or (2) direct obligations of the United states of America,
including obligations the principal of and interest on which are
unconditionallY guaranteed by the United states of America, which
may be united states Treasury obligations such as its state and
Local Government Series, and which may be book entry form (herein
"Government Obligations") which mature as to principal and
interest in such amounts and at such time as will insure the
availability, without reinvestment, of sufficient money to
provide for such payment, and when proper arrangements have been
made by the city with the Paying Agent/Registrar for the payment
of its services until all Defeased Bonds shall have become due
and payable. At such time as a Bond shall be deemed to be a
Defeased Bond hereunder, as aforesaid, such Bond and the interest
thereon shall no longer be secured by, payable from, or entitled
to the benefits of, the revenue herein levied and pledged as
provided in this Ordinance, and such principal and interest shall
be payable solely from such money or Government Obligations.
(b) Any money so deposited with the paying Agent/Registrar
may at the written direction of the city also be invested as
hereinbefore set forth, and all income from such Government
Obligations received by the paying Agent/Registrar which is not
required for the payment of the Bonds and interest thereon, with
respect to which such money has been so deposited, shall be
turned over to the city, or deposited as directed in writing by
the city.
(c) until all Defeased Bonds shall have become due and
payable, the paying Agent/Registrar shall perform the services of
paying Agent/Registrar for such Defeased Bonds the same as if
they had not been defeased, and the city shall make proper
arrangements to provide and pay for such services as required by
this Ordinance.
section 15. TAX COVENANTS. The city covenants to take any
action to assure, or refrain from any action which would
adversely affect, the treatment of the Bonds as obligations
described in section 103 of the Code, the interest on which is
not includable in the "gross income" of the holder for purposes
of federal income taxation. In furtherance thereof, the city
covenants as follows:
19
. .
e
e
(a) to take any action to assure that no more 'than 10
percent of the proceeds of the Bonds (less amounts deposited
to a reserve fund, if any) are used for any "private
business use", as defined in section 141(b) (6) of the Code
or, if more than 10 percent of the proceeds are so used,
that amounts, whether or not received by the City, with
respect to such private business use, do not, under the
terms of this Ordinance or any underlying arrangement,
directly or indirectly, secure or provide for the payment of
more than 10 percent of the debt service on the Bonds, in
contravention of section 141(b) (2) of the Code;
(b) to take any action to assure that in the event
that the "private business use" described in subsection (a)
hereof exceeds 5 percent of the proceeds of the Bonds (less
amounts deposited into a reserve fund, if any) then the
amount in excess of 5 percent is used for a "private
business use" which is "related" and not "disproportionate",
within the meaning of section 141(b) (3) of the Code, to the
governmental use;
(c) to take any action to assure that no amount which
is greater than the lesser of,$5,000,000, or 5 percent of
the proceeds of the Bonds (less amounts deposited into a
reserve fund, if any) is directly or indirectly used to
finance loans to persons, other than state or local
governmental units, in contravention of section 141 (c) of
the Code;
(d) to refrain from taking any action which would
otherwise result in the Bonds being treated as "private
activity bonds" within the meaning of section 141(a) of the
Code;
(e) to refrain from taking any action that would
result in the Bonds being "federally guaranteed" within the
meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds
of the Bonds, directly or indirectly, to acquire or to
replace funds which were used, directly or indirectly, to
acquire investment property (as defined in section 148(b) (2)
of the Code) which produces a materially higher yield over
the term of the Bonds, other than investment property
acquired with --
( 1) proceeds of the Bonds invested for a
reasonable temporary period of 3 years or less until
such proceeds are needed for the purpose for which the
bonds are issued,
(2) amounts invested in a bona fide debt service
fund, within the meaning of section 1.103-13(b) (12) of
the Treasury Regulations, and
20
. .
e
.
(3) amounts deposited in any reasonably required
reserve or replacement fund to the extent such amounts
do not exceed 10 percent of the proceeds of the Bonds:
(g) to otherwise restrict the use of the proceeds of
the Bonds or amounts treated as proceeds of the Bonds, as
may be necessary, so that the Bonds do not otherwise
contravene the requirements of section 148 of the Code
(relating to arbitrage) and, to the extent applicable,
section 149(d) of the Code (relating to advance refundings);
(h) to pay to the united states of America at least
once during each five-year period (beginning on the dat& of
delivery of the Bonds) an amount that is at least equal to
90 percent of the "Excess Earnings", within the meaning of
section 148(f) of the Code and to pay to the United states
of America, not later than 60 days after the Bonds have been
paid in full, 100 percent of the amount then required to be
paid as a result of Excess Earnings under section 148(f) of
the Code; and
(i) to maintain such records as will enable the city
to fulfill its responsibilities under this section and
section 148 of the Code and to retain such records for at
least six years following the final payment of principal and
interest on the Bonds.
It is the understanding of the city that the covenants contained
herein are intended to assure compliance with the Code and any
regulations or rulings promulgated by the U.s. Department of the
Treasury pursuant thereto. In the event that regulations or
rulings are hereafter promulgated which modify, or expand
provisions of the Code, as applicable to the Bonds, the City will
not be required to comply with any covenant contained herein to
the extent that such modification or expansion, in the opinion of
nationally-recognized bond counsel, will not adversely affect the
exemption from federal income taxation of interest on the Bonds
under section 103 of the Code. In the event that regulations or
rulings are hereafter promulgated which impose additional
requirements which are applicable to the Bonds, the city agrees
to comply with the additional requirements to the extent
necessary, in the opinion of nationally-recognized bond counsel,
to preserve the exemption from federal income taxation of
interest on the Bonds under section 103 of the Code.
Section 16. SALE OF BONDS. Publ ic advertisement for the
sale of the Bonds and bids to purchase the Bonds having been
received pursuant thereto, it is hereby found and declared that
the bid submitted by . is the best bid
received; and the sale of the Bonds to the named best bidder, at
a price equal to the principal amount of the Bonds plus accrued
interest thereon from the date thereof to the date of actual
delivery, plus a cash premium of $ , subject to the
unqualified approving opinion, as to the legality of the Bonds of
21
. .
.
.
the Attorney General of the state of Texas, and the market
opinion of McCall, Parkhurst & Horton, bond attorneys, is hereby
authorized, ratified, approved, and confirmed. When the Bonds
have been approved by the said Attorney General and registered by
the Comptroller of Public Accounts of the state of Texas, they
shall be delivered to the purchasers upon receipt of the full
purchase price.
section 17. PROCEEDS OF SALE. The proceeds of the Bonds,
except the accrued interest thereon, shall be deposited into a
Construction Account to be established by the City for the
purposes for which the Bonds are issued, and the accrued interest
shall be deposited to the Interest and Sink~ng Fund. It is
further provided, however, that any interest earnings on bond
proceeds which are required to be rebated to the United States of
America pursuant to Section 15 hereof in order to prevent the
Bonds from being arbitrage bonds shall be so rebated and not
considered as interest earnings for the purposes of this
Ordinance.
section 18. APPROVAL AND REGISTRATION OF BONDS. The Mayor
of the City is hereby authorized to have control of the Bonds and
all necessary records and proceedings pertaining to the Bonds
pending their delivery and their investigation, examination, and
approval by the Attorney General of the State of Texas, and their
registration by the Comptroller of Public Accounts of the State
of Texas. Upon registration of the Bonds, said Comptroller of
Public Accounts (or a deputy designated in writing to act for
said Comptroller) shall manually sign the Comptroller's Registra-
tion certificate. The Bonds thus registered shall remain in the
custody of the Mayor (or his designee) until delivered to the
purchaser thereof.
sectiQn 19. FURTHER PROCEDURES. The Mayor, the city
Secretary, and all other officers, employees, and agents of the
City, and each of them, shall be and they are hereby expressly
authorized, empowered, and directed form time to time and at any
time to do and perform all such acts and things and to execute,
acknowledge, and deliver in the name and under the corporate seal
and on behalf of the City all such instruments, whether or not
herein mentioned, as may be necessary or desirable in order to
carry out the terms and provisions of this Ordinance. The
Official Statement, dated June 21, 1989, and other documents used
in connection with the sale of the Bonds are hereby approved and
the Mayor of the City is hereby directed and authorized to
execute on behalf of the city, and the city Secretary is hereby
authorized to attest, the Official statement and other sale
documents.
section 20. PAYING AGENT/REGISTRAR AGREEMENT. The Paying
Agent/Registrar Agreement, dated July 15, 1989, between the City
and First City, Texas - Houston, N.A., Houston, Texas is hereby
approved, and the Mayor is authorized to execute and the city
Secretary is authorized to attest same.
22
. .
.
e
.'
section 21. SEVERABILITY. The provisions of this Ordinance
are severable; and in case anyone or more of the provisions of
this Ordinance or the application thereof to any person or
circumstance should be held to be invalid, unconstitutional, or
ineffective as to any person or circumstance, the remainder of
this Ordinance nevertheless shall be valid, and the application
of any such invalid provision to persons or circumstances other
than those as to which it is held invalid shall not be affected
thereby.
section 22. MISCELLANEOUS PROVISIONS.
A. Titles Not Restrictive. The titles assigned to the
various sections of this Ordinance are for convenience only and
shall not be considered restrictive of the subject matter of'any
section or of any part of this Ordinance.
B. Inconsistent Provisions. All ordinances, orders, and
resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby
repealed and declared to be inapplicable, and the provisions of
this Ordinance shall be and remain controlling as to the matters
prescribed herein.
C. Severability. If any word, phrase, clause, paragraph,
sentence, part, portion, or provision of this Ordinance or the
application thereof to any person or circumstances shall be held
to be invalid, the remainder of this Ordinance shall nevertheless
be valid and the city Council hereby declares that this Ordinance
would have been enacted without such invalid word, phrase,
clause, paragraph, sentence, part, portion, or provisions.
D. Governinq Law. This Ordinance shall be construed and
enforced in accordance with the laws of the State of Texas.
section 22. IMMEDIATE EFFECT. This Ordinance shall take
effect immediately upon its adoption.
PASSED AND APPROVED this itJ.1 HI /f!1
. ,.'"
---
,
f!L~
city Secretary, city of
La Porte Texas
(CITY SEAL)
23