HomeMy WebLinkAboutOrdinance 10072ORDINANCE NO . / O ~ ~ ~
ORDINANCE AUTHORIZING THE ISSUANCE AND SALE
OF CITY OF FORT WORTH, TEXAS WATER AND SEWER
SYSTEM REVENUE BONDS. SERIES 1988
THE STATE OF TEXAS
COUNTY OF TARRANT :
CITY OF FORT WORTH .
WHEREAS, the City of Fort Worth, Texas (the "City" or
the "Issuer") has heretofore issued and has outstanding its
City of Fort Worth, Texas Water and Sewer System Revenue
Refunding Bonds, Series 1984, City of Fort Worth, Texas
Water and Sewer System Revenue Bands, Series 1984A, City of
Fort Worth, Texas Water and Sewer System Revenue Bonds,
Series 1985, City of Fort Worth, Texas Water and Sewer
System Revenue Bonds, Series 1986, City of Fort Worth, Texas
Water and Sewer System Revenue Refunding Bonds, Series
1986-A and City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1987 (together, the "Previously Issued
Parity Bonds"); and
WHEREAS, in the ordinance authorizing the issuance of
the Previously Issued Parity Bands the City reserved the
right to issue revenue bonds on a parity with such outstand-
ing Previously Issued Parity Bonds; and
WHEREAS, the City has determined it is appropriate and
necessary to issue parity bonds; and
WHEREAS, the bonds hereinafter authorized are to be
issued and delivered pursuant to Vernon's Ann. Civ. St. of
Texas, Articles 1111 to 1118, inclusive, as amended, and
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other applicable laws, for the purpose of extending and
improving the City's combined Water and Sewer System.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
Section 1. BONDS AUTHORIZED. That the City's bonds
(the "Series 1988 Bonds") are hereby authorized to be issued
in the aggregate principal amount of $18,875,000 for the
purpose of extending and improving the City's combined water
and sewer system. The Series 1988 Bonds shall be designated
as the "City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1988". The Series 1988 Bonds are
"Additional Bonds" as such term is used in the ordinance
authorizing the Series 1984 Bonds, and are in all respects
on a parity with the Previously Issued Parity Bonds.
Section 2. DATE AND MATURITIES. That the Series 1988
Bonds shall be dated March 1, 1988, shall be in the denomi-
nation of $5,000 each, 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:
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MATURITY DATE: MARCH 1
YEARS AMOUNTS YEARS AMOUNTS
1989 $ 475,000 1999 $1,000,000
1990 500,000 2000 1,100,000
1991 500,000 2001 1,100,000
1992 600,000 2002 1,200,000
1993 600,000 2003 1,300,000
1994 700,000 2004 1,400,000
1995 700,000 2005 1,600,000
1996 800,000 2006 1,700,000
1997 800,000 2007 .1,900,000
1998 900,000
Section 3. RIGHT OF PRIOR REDEMPTION. The City
reserves the right to redeem the Series 1988 Bonds maturing
on or after March 1, 1999 in whole or in part, on March 1,
1998, or on any interest payment date thereafter, for the
principal amount thereof and accrued interest thereon to the
date fixed for redemption. The years of maturity of the
Series 1988 Bonds called for redemption at the option of the
City prior to stated maturity shall be selected by the City.
The Series 1988 Bonds or portions thereof redeemed within a
maturity shall be selected by lot.
At least 30 days prior to the date fixed for any such
redemption 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 United States mail, postage prepaid, addressed
to each such registered owner at his address shown on the
registration books of the Paying Agent/Registrar. By the
date fixed for any such redemption due provision shall be
made by the City with the Paying Agent/Registrar for the
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payment of the required redemption price for the Series 1988
Bonds or the portions thereof which are to be so redeemed,
plus accrued interest thereon to the date fixed for redemp-
tion. If such written notice of redemption is given, and if
due provision for such payment is made, all as provided
above, the Series 1988 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 Series 1988 Bonds or any portion thereof. If a
portion of any Series 1988 Bond. shall be redeemed a substi-
tute Series 1988 Bond or Series 1988 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 unredeemed
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.
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' Section 4. INTEREST. That the Series 1988 Bonds
scheduled to mature during the years, respectively, set
forth below shall bear interest at the following rates per
annum:
Bonds maturing in the year 1989, ~,.,jD %
Bonds maturing in the year 1990, y', sd
Bonds maturing in the year 1991, So %
Bonds maturing in the year 1992, ,So
Bonds maturing in the year 1993, .S"o %
Bonds maturing in the year 1994, p %
Bonds maturing in the year 1995, 9,~2~"%
Bonds maturing in the year 1996, ~ 60%
Bonds maturing in the year 1997, 6,~0 %
Bonds maturing in the year 1998, .80
Bonds maturing in the year 1999, ,p %
Bonds maturing in the year 2000, ,~ ~
Bonds maturing in the year 2001, ~,/~s'3s
Bonds maturing in the year 2002, ,~
Bonds maturing in the year 2003, ~/2s-%
Bonds maturing in the year 2004, 7/~s~
Bonds maturing in the year 2005, 7/,~,s'%
Bonds maturing in the year 2006, 1'~~'%
Bonds maturing in the year 2007, ~,/~r%
Said interest shall be payable to the registered owner of
any such Series 1988 Bond in the manner provided and on the
dates stated in the FORME OF BOND set forth in this Ordi-
nance.
Section 5. (a) The City shall keep or cause to be kept
at the principal corporate trust office of MTrust Corp,
National Association, Fort Worth, Texas or such other bank,
trust company, financial institution, or other agency 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 Series 1988 Bonds (the
"Registration Books"), and the City hereby appoints the
Paying Agent/Registrar as its registrar and transfer agent
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r 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 regis-
tered owner of each bond to which payments with respect to
the Series 1988 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
Series 1988 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 satis-
factory 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 Series 1988 Bond or any portion thereof, a
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new substitute bond or bands shall be issued in exchange
therefor in the manner herein provided.
(b) The entity in whose name any Series 1988 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; 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 Series 1988 Bands, and to
act as its agent to exchange or replace Series 1988 Bonds,
all as provided in this Ordinance. The Paying Agent/Regis-
trar shall keep proper records of all payments made by the
City and the Paying Agent/Registrar with respect to the
Series 1988 Bonds, and of all exchanges of such bonds, and
all replacements of such bonds, as provided in this Ordi-
nance.
(d) Each Series 1988 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 amount thereof,
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V 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 BOND set forth in this Ordinance, in the denomi-
nation of $5,000, or any integral multiple of $5,000 (sub-
ject to the requirement hereinafter stated that each substi-
tute bond shall have a single stated maturity date), as re-
quested 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 Series 1988
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 Series 1988 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 princi-
pal amount equal to the unredeemed portion thereof, will be
issued to the registered owner upon surrender thereof for
cancellation. If any Series 1988 Bond or portion thereof is
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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 each other bond. The
Paying Agent/Registrar shall exchange or replace series 1988
Bonds as provided herein, and each fully registered bond or
bonds delivered in exchange for or replacement of any Series
1988 Bond or portion thereof as permitted or required by any
provision of this Ordinance shall constitute one of the
Series 1988 Bonds for all purposes of this Ordinance, and
may again be exchanged or replaced. It is specifically
provided, however, that any Series 1988 Bond delivered in
exchange for or replacement of another Series 1988 Bond
prior to the first scheduled interest payment date on the
Series 1988 Bonds (as stated on the face thereof) shall be
dated the same date as such Series 1988 Bond, but each
substitute bond so delivered on or after such first sched-
uled interest payment date shall be dated as of the interest
payment date preceding the date on which such substitute
bond is delivered, unless such substitute 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 substitute bond shall be dated as of the date to
which such interest has been paid in full. On each
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substitute bond issued in exchange for or replacement of any
Series 1988 Bond or Bonds issued under this Ordinance there
shall be printed thereon a Paying Agent/Registrar's Authen-
tication Certificate, in the form hereinafter set forth. An
authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such substitute bond, date
such substitute bond in the manner set forth above, and
manually sign and date such Certificate, and no such substi-
tute bond shall be deemed to be issued or outstanding unless
such Certificate is so executed. The Paying Agent/Registrar
promptly shall cancel all Series 1988 Bonds surrendered for
exchange or replacement. 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 fore-
going exchange or replacement of any Series 1988 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
lithographed 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 exchange or
replacement of any Series 1988 Bonds as aforesaid is hereby
imposed upon the Paying Agent/Registrar, and, upon the
execution of the above Paying Agent/Registrar's Authen-
tication Certificate, the exchanged or replaced bond shall
be valid, incontestable, and enforceable in the same manner
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and with the same effect as the Series 1988 Bonds which
originally were delivered pursuant to this Ordinance, ap-
proved 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 during a period beginning at
the opening of business 30 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 so selected for redemption in
whole when such redemption is scheduled to occur within 30
calendar days.
(e) All Series
replacement of any oth~
(i) shall be issued
interest coupons, with
Series 1988 Bonds to
1988 Bonds issued in exchange or
er Series 1988 Bond or portion thereof
in fully registered form, without
the principal of and interest on such
be payable only to the registered
owners thereof, (ii) may be redeemed prior to their sched-
uled maturities, (iii) may be transferred and assigned, (iv)
may be exchanged for other Series 1988 Bonds, (v) shall have
the characteristics, (vi) shall be signed and sealed, and
(vii) the principal of and interest on the Series 1988 Bonds
shall be payable, all as provided, and in the manner re-
quired or indicated, in the FORM OF BOND set forth in this
Ordinance.
(f) The City shall pay the Paying Agent/Registrar's
reasonable and customary fees and charges for making
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transfers of Series 1988 Bonds, but the registered owner of
any Series 1988 Band requesting such transfer shall pay any
taxes or other governmental charges required to be paid with
respect thereto. The registered owner of any Series 1988
Bond requesting any exchange shall pay the Paying Agent/Reg-
istrar~s reasonable and standard or customary fees and
charges for exchanging any such bond or portion thereof,
together with any taxes or governmental charges required to
be paid with respect thereto, all as a condition precedent
to the exercise of such privilege of exchange, except,
however, that in the case of the exchange of an assigned and
transferred bond or bonds or any portion or portions thereof
in any integral multiple of $5, 000, and in the case of the
exchange of a portion the unredeemed portion of a Series
1988 Bond which has been redeemed in part prior to maturity,
as provided in this Ordinance, such fees and charges will be
paid by the City. In addition, the City hereby covenants
with the registered owners of the Series 1988 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 Series 1988 Bonds, when due, and (ii) pay the fees
and charges of the Paying Agent/Registrar for services with
respect to the transfer or registration of Series 1988 Bonds
solely to the extent above provided, and with respect to the
exchange of Series 1988 Bonds solely to the extent above
provided.
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+ (g) The City covenants with the registered owners of
the Series 1988 Bonds that at all times while the Series
1988 Bonds are outstanding the City will provide a competent
and legally qualified bank or trust company to act as and
perform the services of Paying Agent/Registrar for the
Series 1988 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
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, subject to super'
vision or examination by federal or state Authority, and
whose qualifications substantially are similar to the
previous Paying Agent/Registrar to act as Paying Agent/Reg-
istrar under this Ordinance. Upon any change in the Paying
Agent/Registrar, the previous Paying Agent/Registrar prompt-
ly shall transfer and deliver the Registration Books (or a
copy thereof), along with all other pertinent books and
records relating to the Series 1988 Bonds, to the new Paying
Agent/Registrar designated and appointed by the City. Upon
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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
Series 1988 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. The form of all Series 1988 Bonds, includ-
ing the form of the Payinq Agent/Registrar's Certificate,
the Form of Assignment, and the form of the Comptroller's
Registration Certificate to accompany the Series 1988 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 BOND:
NO.
S
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH, TEXAS
WATER AND SEWER SYSTEM
REVENUE BOND
SERIES 1988
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
March 1, 1988
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ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF FORT
WORTH, IN TARRANT COUNTY, TEXAS (the "Issuer"), hereby
promises to pay to , or to the
registered assignee hereof (either being hereinafter called
the "registered owner") the principal amount of
and to pay interest thereon, from the 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 September 1, 1988, and semi-
annually on each March 1 and September 1 thereafter, except
that if the Paying Agent/Registrar's Authentication Certif-
icate appearing on the face of this Bond is dated later than
September 1, 1988, such interest is payable semiannually on
each March 1 and September 1 following such date.
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 presenta-
tion and surrender of this Bond at maturity or upon the date
fixed for its redemption prior to maturity, at the principal
corporate trust office of MTrust Corp, National Association,
Fort Worth, Texas, which is the "Paying Agent/Registrar" for
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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 o~ the 15th day of
the month next preceding such interest payment date by check
drawn by the Paying Agent/Registrar on, and payable solely
from, funds of the Issuer 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 Issuer 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 princi-
pal of and interest on the Bonds, when due.
*IF THE DATE for the payment of the principal of or
interest on this Bond shall be a Saturday, Sunday, a legal
holiday, or a day on which banking institutions in the city
where the Paying Agent/Registrar is located are authorized
by law or executive order to close, then the date for such
payment shall be the next succeeding day which is not such a
Saturday, Sunday, legal holiday, or day on which banking
institutions are authorized to close; and payment on such
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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 number, principal amount, interest
rate, maturity and right of prior redemption, aggregating
Eighteen Million Eight Hundred Seventy-Five Thousand Dollars
($18,875,000) (herein sometimes called the "Bonds"), issued
for the purpose of extending and improving the Issuer's
combined water and sewer system. The Bonds are issuable
solely as fully registered bonds, without interest coupons,
in the denomination of any integral multiple of $5,000.
*THE OUTSTANDING BONDS of this Series maturing on or
after March 1, 1999 may be redeemed prior to their scheduled
maturities, at the option of the Issuer, in whole, or in
part, on March 1, 1998, or on any interest payment date
thereafter, for the principal amount thereof and accrued
interest thereon to the date fixed for redemption. The
years of maturity of the Bonds called for such redemption
shall be selected by the Issuer. The Bonds or portions
thereof redeemed within a maturity shall be selected by lot.
*AT LEAST 30 days prior to the date fixed for any such
redemption 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 United States mail, postage prepaid, addressed
to each such registered owner at his address shown on the
Registration Books of the Paying Agent/Registrar. By the
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" date fixed for any such redemption due provision shall be
made by the Issuer 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
written notice of redemption is given, and if due provision
for such payment is made, all as provided above, this Bond,
or the portion hereof 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 the registered owner upon the surrender
thereof for cancellation, at the expense of the Issuer, all
as provided in the ordinance authorizing the Bonds (the
"Ordinance").
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*ALL BONDS OF THIS SERIES are issuable solely as fully
registered bonds, without interest coupons, in the denomina-
tion 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/Reg-
istrar, 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 Assign-
ment printed or endorsed on this Bond may be executed by the
registered owner to evidence the assignment hereof, but such
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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 one requesting such exchange shall pay the Paying
Agent/Registrars reasonable standard or customary fees and
charges for exchanging any Bond or portion thereof. The
foregoing notwithstanding, in the case of the exchange of a
portion of a Bond which has been redeemed prior to maturity,
as provided herein, and in the case of the exchange of an
assigned and transferred Bond or Bonds or any portion or
portions thereof, such fees and charges of the Paying
Agent/Registrar will be paid by the Issuer. In any circum-
stance, any taxes or governmental charges required to be
paid with respect thereto shall be paid by the one request-
ing such assignment, transfer, or exchange as a condition
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precedent to the exercise of such privilege. In any cir-
cumstance, neither the Issuer nor the Paying Agent/Registrar
shall be required (1) to make any transfer or exchange
during a period beginning at the opening of business 30 days
before the day of the first mailing of a notice of redemp-
tion 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.
*IN THE EVENT any Paying Agent/Registrar for the Bonds
is changed by the Issuer, resigns, or otherwise ceases to
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act as such, the Issuer has covenanted in the Ordinance that
it promptly will appoint a competent and legally qualified
substitute therefor, whose qualifications substantially are
similar to the previous Payinq Agent/Registrar it is replac-
ing, 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 Issuer, and agrees that the terms
and provisions of this Bond and the Ordinance constitute a
contract between each registered owner hereof and the
Issuer.
*THE ISSUER has reserved the right, subject to the
restrictions stated, and adopted by reference, in the
Ordinance, to issue additional parity revenue bonds which
also may be made payable from, and secured by a first lien
on and pledge of, the Pledged Revenues (as defined in the
Ordinance).
*THE REGISTERED OWNER HEREOF shall never have the right
to demand payment of this obligation out of any funds raised
or to be raised by taxation, or from any source whatsoever
other than the aforesaid Pledged Revenues.
IT IS HEREBY certified and covenanted that this Bond
has been duly and validly authorized, issued and delivered;
21
r • i ~. T
a
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;
that this Bond is a special obligation; and that the prin-
cipal of and interest on this Bond are payable from, and
secured by a first lien on and pledge of, the Pledged
Revenues, as defined in the Ordinance authorizing this
Series of Bonds, and which include the Net Revenues of the
Issuer's combined Water and Sewer System.
IN WITNESS WHEREOF, this Bond has been signed with the
imprinted or lithographed facsimile signature of the Mayor
of said City, attested by the imprinted or lithographed
facsimile signature of the City Secretary, and approved as
to form and legality by the imprinted or lithographed
facsimile signature of the City Attorney, and the official
seal of said City has been duly affixed to, printed, litho-
graphed or impressed on this Bond.
22
' CITY OF FORT WORTH, TEXAS
By
Mayor
ATTEST:
City Secretary
(SEAL)
APPROVED AS TO FORM AND LEGALITY:
City Attorney
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 the State of Texas and registered by the
Comptroller of Public Accounts of the State of Texas.
Dated
MTRUST CORP, NATIONAL
ASSOCIATION
Fort Worth, Texas
Paying Agent/Registrar
By
Authorized Representative
23
I
*
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: Signature(s) must
be guaranteed by a member
firm of the New York Stock
Exchange or a commercial
bank or trust company.
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.
** (FORM OF COMPTROLLERS CERTIFICATE ATTACHED TO
THE BONDS UPON INITIAL DELIVERY THEREOF)
OFFICE OF COMPTROLLER
REGISTER NO.
STATE OF TEXAS
I hereby certify that there is on file and of record in
my office a certificate of the Attorney General of the State
24
of Texas 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 the Constitution and laws of the
State of Texas, and that it is a valid and binding special
obligation of the City of Fort Worth, Texas, payable in the
manner provided by and in the ordinance authorizing same,
and said Bond has this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas
Comptroller of Public Accounts of
the State of Texas
(SEAL)
NOTE TO PRINTER:
*$s to be on reverse side of bond
**Z not to be on bond
Section 7. DEFINITIONS. That, as used in this Ordi-
nance, the following terms shall have the meanings set forth
below, unless the text hereof specifically indicates other-
wise:
(a) The term "Additional Bonds" shall mean the addi-
tional parity revenue bonds which the City reserves the
right- to issue in the future, as provided in this Ordinance.
(b) The term "Amortization Installment", with respect
to any Term Bonds of any series of Additional Bonds, shall
mean the amount of money which is required to be deposited
into the Mandatory Redemption Account for retirement of such
Term Bonds (whether at maturity or by mandatory redemption
25
• ~~ r
and including redemption premium, if any) provided that the
total Amortization Installments for such Term Bonds shall be
sufficient to provide for retirement of the aggregate
principal amount of such Term Bonds.
(c) The term "Bonds" shall mean all Previously Issued
Parity Bonds and the Series 1988 Bonds.
(d) The terms "City" and "Issuer" shall mean the City
of Fort Worth, in Tarrant County, Texas.
(e) The terms "Gross Revenues of the City's Combined
Water and Sewer System" and "Gross Revenues" shall mean all
revenues, income, and receipts of every nature derived or
received by the City from the operation and ownership of the
System, including the interest income from the investment or
deposit of money in any Fund created by this Ordinance, or
maintained by the City in connection with the System.
(f) The term "Mandatory Redemption Account" shall mean
that account within the Interest and Sinking Fund described
in Section 14(c) of this Ordinance.
(g) The terms "Net Revenues of the City's Combined
Water and Sewer System" and "Net Revenues" shall mean all
Gross Revenues after deducting and paying the current
expenses of operation and maintenance of the System (the
"Current Expenses"), as required by Vernon's Annotated Texas
Civil Statutes, Article 1113, including all salaries, labor,
materials, repairs and extensions necessary to render
efficient service; provided, however, that only such repairs
and extensions as in the judgment of the City Council,
26
reasonably and fairly exercised and evidenced by the passage
of the appropriate ordinance, are necessary to keep the
System in operation and render adequate service to said City
and the inhabitants thereof, or such as might be necessary
to meet some physical accident or condition which would
otherwise impair the Bonds or Additional Bonds, shall be
deducted in determining "Net Revenues". Payments made by
the City for water supply or treatment of sewage which under
the law constitute operation and maintenance expenses shall
be considered herein as expenses incurred in the operation
and maintenance of the System. Depreciation shall never be
considered as an expense of operation and maintenance.
(h) The term "Paying Agent/Registrar" shall mean the
financial institution specified in Section 5(a) hereof, or
e
its herein permitted successors and assigns.
(i) The term "Pledged Revenues" shall mean
(1) the Net Revenues, plus
(2) any additional revenues, income, re-
ceipts, or other resources, including, without
limitation, any grants, donations, or income
received or to be received from the United States
Government, or any other public or private source,
whether pursuant to an agreement or otherwise,
which hereafter may be pledged to the payment of
the Bonds or Additional Bonds.
27
(j) The term "Previously Issued Parity Bonds" shall
have the same meaning given said term in the preamble to
this Ordinance.
(k) The term "Series 1988 Bonds" shall mean the City
of Fort Worth, Texas Water and Sewer System Revenue Bonds,
Series 1988, authorized by this Ordinance.
(1) The term "System" shall mean and include the
City's combined existing water and sewer system, together
with all future extensions, improvements, enlargements, and
additions thereto, and all replacements thereof; provided
that, notwithstanding the foregoing, and to the extent now
or hereafter authorized or permitted by law, the term System
shall not include any water or sewer facilities which are
declared by the City not to be a part of the System and
which are acquired or constructed by the City with the
proceeds from the issuance of "Special Facilities Bonds",
which are hereby defined as being special revenue obliga-
tions of the City which are not secured by or payable from
the Pledged Revenues as defined herein, but which are
secured by and payable solely from special contract revenues
or payments received from any other legal entity in connec-
tion with such facilities; and such revenues or payments
shall not be considered as or constitute Gross Revenues of
the System, unless and to the extent otherwise provided in
the ordinance or ordinances authorizing the issuance of such
"Special Facilities Bonds".
28
_ _ (m) The term "Term Bonds" means those Additional Bonds
so designated in the ordinance or ordinances authorizing
such bonds, which shall be subject to retirement by opera-
tion of the Mandatory .Redemption Account.
(n) The term "year" shall mean the regular fiscal year
used by the City in connection with the operation of the
System, which may be any twelve consecutive months period
established by the City.
Section 8. PLEDGE. That the Bonds and any Additional
Bonds are and shall be secured by and payable from a first
lien on and pledge of the Pledged Revenues; and the Pledged
Revenues are further pledged to the establishment and
maintenance of the Interest and Sinking Fund and the Reserve
Fund as hereinafter provided. The Bonds and any Additional
Bonds are and will be secured by and payable only from the
Pledged Revenues, and are not secured by or payable from a
mortgage or deed of trust on any properties, whether real,
personal, or mixed, constituting the System.
Section 9. REVENUE FUND. That there has been created,
and established and maintained on the books of the City, and
accounted for separate and apart from all other funds of the
City, a special fund to be entitled the "City of Fort Worth,
Texas Water and Sewer Operating Fund" (hereinafter called
the "Revenue Fund"). All Gross Revenues shall be credited
to the Revenue Fund immediately upon receipt. All current
expenses of operation and maintenance of the System shall be
29
paid from such Gross Revenues as a first charge against
same.
Section 10. INTEREST AND SINKING FUND. (a) That for
the sole purpose of paying the principal of and interest on
all Bonds and any Additional Bonds, as the same come due,
there has been created, and established and maintained on
the books of the City, a separate fund to be entitled the
"City of Fort Worth, Texas Water and Sewer System Revenue
Bonds Interest and Sinking Fund" (hereinafter called the
"Interest and Sinking Fund"). Monies in said Fund shall be
maintained at an official depository bank of the City.
(b) That within the Interest and Sinking Fund there
has been established the Mandatory Redemption Account, into
which account shall be credited the Amortization Install-
ments which shall be used for the payment of the principal
of Term Bonds as the same shall come due, whether by maturi-
ty thereof or by redemption, through the operation of the
Mandatory Redemption Account as herein provided.
Section il. RESERVE FUND. That there has been Great-
ed, and established and maintained on the books of the City,
a separate fund to be entitled the "City of Fort Worth,
Texas Water and Sewer System Revenue Bonds Reserve Fund"
(hereinafter called the "Reserve Fund"). Monies in said
Fund shall be used solely for the purpose of retiring the
last of any Bonds or Additional Bonds as they become due or
paying principal of and interest on any Bonds or Additional
Bonds when and to the extent the amounts in the Interest and
30
~ s: i f.
Sinking Fund are insufficient for such purpose. Monies in
said Fund shall be maintained at an official depository bank
of the City, currently Texas American Bank/Fort Worth, N.A.,
Fort Worth, Texas.
Section 12. DEPOSITS OF PLEDGED REVENUES; INVESTMENTS.
(a) That the Pledged Revenues shall be deposited in the
Interest and Sinking Fund and the Reserve Fund when and as
required by this Ordinance.
(b) That money in any such Fund may, at the option of
the City, be (A) placed in time deposits or certificates of
deposit which (to the extent not insured by the Federal
Deposit Insurance Corporation) are secured by obligations of
the type described in (B) hereinbelow, or (B) invested,
including investments held in book-entry form, in (i) direct
obligations of the United States of America, (ii) obliga-
tions guaranteed or insured by the United States of America,
which, in the opinion of the Attorney General of the United
States, are backed by its full faith and credit or represent
its general obligations, or, (iii) to the extent permitted
by law, evidences of indebtedness and repurchase agreements
issued, insured ~or guaranteed by such governmental agencies
as the Federal Land Banks, Federal Intermediate Credit
Banks, Banks for Cooperatives, Federal Home Loan Banks,
Government National Mortgage Association, United States
Postal Service, Farmers Home Administration, Federal Home
Loan Mortgage Association; provided that all such deposits
and investments shall have a par value (or market value when
31
less than par) exclusive of accrued interest at all times at
least equal to the amount of money credited to such Funds,
and shall be made in such manner that the money required to
be expended from any Fund will be available at the proper
time or times. Money in the Reserve Fund shall not be
invested in securities .maturing later than the final matur-
ity of the Bonds and Additional Bonds. Such investments
shall be valued in terms of current market value as of the
last day of each year, except that direct obligations of the
United States (State and Local Government Series) in book-
entry form shall be continuously valued at their par or face
principal amount. Such investments shall be sold promptly
when necessary to prevent any default in connection with the
Bonds or Additional Bonds.
Section 13. FUNDS SECURED. That money in all such
Funds, to the extent not invested, shall be secured in the
manner prescribed by law for securing funds of the City.
Section 14. DEBT SERVICE REQUIREMENTS. (a) That
promptly after the delivery of the Series 1988 Bonds the
City shall cause to be deposited to the credit of the
Interest and Sinking Fund any accrued interest received from
the sale and delivery of the Series 1988 Bonds, and any such
deposit shall be used to pay part of the interest next
coming due on the Series 1988 Bonds.
(b) That in addition to all amounts heretofore re-
quired to be deposited to the credit of the Interest and
Sinking Fund, the City shall transfer from the Pledged
32
-- '°~
Revenues and deposit to the credit of the Interest and
Sinking Fund the amounts, at the times, as follows:
(i) such amounts, deposited in approximately
equal monthly installments on or before the 25th day of
each month hereafter, commencing with the month during
which the Series 1988 Bonds are delivered, or the month
thereafter if delivery is made after the 25th day
thereof, as will be sufficient, together with other
amounts, if any, then on hand in the Interest and
Sinking Fund and available for such purpose, to pay the
interest scheduled to accrue and come due on the Series
1988 Bonds on the next succeeding interest payment
date;
(2) such amounts, deposited in approximately
equal monthly installments on or before the 25th day of
each month hereafter, commencing with the month during
which the Series 1988 Bonds are delivered, or the month
thereafter if delivery is made after the 25th day
thereof, as will be sufficient, together with other
amounts, if any, then on hand in the Interest and
Sinking Fund and available for such purpose, to pay the
principal scheduled to mature and come due on the
Series 1988 Bonds on the next succeeding principal
payment date; and
(3) such amounts,. deposited in monthly install-
ments on or before the 25th day of each month as may
33
. ~ .-
k
hereafter be required, as Amortization Installments for
Term Bonds.
(c) OPERATION OF MANDATORY REDEMPTION ACCOUNT. The
City shall apply the monies in the Mandatory Redemption
Account to the retirement of the Term Bonds required to be
retired by mandatory redemption under the provisions of
ordinances hereafter passed authorizing Term Bonds, by
either redemption or prior purchase in the open market, all
in the manner as shall be provided in such ordinances.
SECTION 15. RESERVE REQUIREMENTS. That, concurrently
with the delivery of the Series 1984 Bonds to the purchasers
thereof the City deposited to the credit of the Reserve
Fund, from the proceeds of the Series 1984 Bonds,
$5,000,000. The Reserve Fund was considered intact, for the
purposes of the Ordinance, during the period ending February
28, 1988, so long as the Reserve Fund contained in cash or
investments an amount no less than the greater of $5,000,000
or the average annual principal and interest requirements,
including Amortization Installments, of the outstanding
Bonds and Additional Bonds. Thereafter the City covenanted
that the Reserve Fund shall be maintained in an amount equal
to the average annual principal and interest requirements
(including Amortization Installments) of the outstanding
Bonds and Additional Bonds (the "Required Amount"). When
and so long as the money and investments in the Reserve Fund
are not less than the Required Amount, no deposits need be
made to the credit of the Reserve Fund. When and if the
34
Reserve Fund at any time contains less than the Required
Amount due to any cause or condition other than the issuance
of Additional Bonds, then, subject and subordinate to making
the required deposits to the credit of the Interest and
Sinking Fund, such deficiency shall be made up as soon as
possible from the next available Pledged Revenues, or from
any other sources available for such purpose. The City may,
at its option, withdraw and use for any lawful purpose, all.
surplus in the Reserve Fund over the Required Amount. The
City hereby covenants that from available moneys it shall
deposit to the credit of the Reserve Fund such as is neces-
sary to maintain the Reserve Fund in an amount equal to the
Required Amount.
Section 16. DEFICIENCIES; EXCESS PLEDGED REVENUES.
(a) That if on any occasion there shall not be sufficient
Pledged Revenues to make the required deposits into the
Interest and Sinking Fund and the Reserve Fund, then such
deficiency shall be made up as soon as possible from the
next available Pledged Revenues, or from any other sources
available for such purpose.
(b) That, subject to making the required deposits to
the credit of the Interest and Sinking Fund and the Reserve
Fund when and as required by this Ordinance, or any ordi-
nance authorizing the issuance of Additional Bonds, the
excess Pledged Revenues may be used by the City for any
lawful purpose not inconsistent with the City's Charter.
35
~a
1 '~'
Section 17. PAYMENT OF BONDS AND ADDITIONAL BONDS.
That on or before September 1, 1988, and semiannually on or
before each March 1 and September 1 thereafter while any of
the Bonds or Additional Bonds are outstanding and unpaid,
the City shall make available to the Paying Agent/Registrar
therefor, out of the Interest and Sinking Fund (and the
Reserve Fund if necessary) money sufficient to pay such
interest on and such principal of the Bonds and Additional
Bonds as shall become due and mature on such dates, respec-
tively, at maturity or by redemption prior to maturity. The
Paying Agent/Registrar shall destroy all paid Bonds and
Additional Bonds and furnish the City with an appropriate
certificate of cancellation or destruction.
Section 18. FINAL DEPOSITS; GOVERNMENT OBLIGATIONS.
(a) That any Bond or Additional Bond shall be deemed to be
paid, .retired and no longer outstanding within the meaning
of this Ordinance when payment of the principal of, redemp-
tion premium, if any, on such Bond or Additional Bond, plus
interest thereon to the due date thereof (whether such due
date be by reason of maturity, upon redemption, or other-
wise) 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 by irrevocably depositing with, or making
available to, a paying agent (or escrow agent) therefor, in
trust and irrevocably set. aside exclusively for such pay-
ment, (1) money sufficient to make such payment or (2)
36
~..~,
Government Obligations, as hereinafter defined in this
Section, certified by an independent public accounting firm
of national reputation, to mature as to principal and
interest in such amounts and at such times as will insure
the availability, without reinvestment, of sufficient money
to make such payment, and all necessary and proper fees,
compensation, and expenses of such paying agent pertaining
to the Bonds and Additional Bonds with respect to which such
deposit is made shall have been paid or the payment thereof
provided for to the satisfaction of such paying agent. At
such time as a Bond or Additional Bond shall be deemed to be
paid hereunder, as aforesaid, it shall no longer be secured
by or entitled to the benefit of this Ordinance or a lien on
and pledge of the Pledged Revenues, and shall be entitled to
payment solely from such money or Government Obligations.
(b) That any moneys so deposited with a paying agent
may, at the direction of the City, also be invested in
Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government
Obligations in the hands of the paying agent pursuant to
this Section which is not required for the payment of the
Bonds and Additional Bonds, the redemption premium, if any,
and interest thereon, with respect to which such money has
been so deposited, shall be remitted to the City.
(c) That the City covenants that no deposit will be
made or accepted under clause (a)(ii) of this Section and no
use made of any such deposit which would cause the Bonds or
37
any Additional Bonds to be treated as arbitrage bonds within
the meaning of section 148 of the Internal Revenue Code of
1986 (the "Code").
(d) That for the purpose of this Section, the term
"Government Obligations" shall mean 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.
(e) That notwithstanding any other provisions of this
Ordinance, all money or Government Obligations set aside and
held in trust pursuant to the provisions of this Section for
the payment of Bonds and Additional Bonds, the redemption
premium, if any, and interest thereon, shall be applied to
and used for the payment of such Bonds and Additional Bonds,
the redemption premium, if any, and interest thereon.
Section 19. ADDITIONAL BONDS. (a) That the City
shall have 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 additional parity revenue bonds, in
accordance with law, in any amounts, for purposes of extend-
ing, improving or repairing the System or for the purpose of
refunding of any Bonds, Additional Bonds or other obliga-
tions of the City incurred in connection with the ownership
or operation of the System. Such Additional Bonds, if and
when authorized, issued and delivered in accordance with
this Ordinance, shall be secured by and made payable equally
and ratably on a parity with the Bonds, and all other
38
outstanding Additional Bonds, from a first lien on and
pledge of the Pledged Revenues.
(b) That the Interest and Sinking Fund and the Reserve
Fund established by this Ordinance shall secure and be used
to pay all Additional Bonds as well as the Bonds. However,
each ordinance under which Additional Bonds are issued shall
provide and require that, in addition to the amounts re-
quired by the provisions of this Ordinance and the provi-
sions of any other ordinance or ordinances authorizing
Additional Bonds to be deposited to the credit of the
Interest and Sinking Fund, the City shall deposit to the
credit of the Interest and Sinking Fund at least such
amounts as are required for the payment of all principal of
and interest on said Additional Bonds then being issued, as
the same come due; and that the aggregate amount to be
accumulated and maintained in the Reserve Fund shall be
increased (if and to the extent necessary) to an amount not
less than the average annual principal and interest require-
ments (including Amortization Installments) of all Bonds and
Additional Bonds which will be outstanding after the issu-
ance and delivery of the then proposed Additional Bonds; and
that the required additional amount shall be so accumulated
by the deposit in the Reserve Fund of all or any part of
said required additional amount in cash immediately after
the delivery of the then proposed Additional Bonds, or, at
the option of the City, by the deposit of said required
additional amount (or any balance of said required
39
additional amount not deposited in cash as permitted above)
in monthly installments, made on or before the 25th day of
each month following the delivery of the then proposed
Additional Bonds, of not less than 1/60 of said required
additional amount (or 1/60 of the balance of said required
additional amount not deposited in cash as permitted above).
(c) That all calculations of average annual principal
and interest requirements (including Amortization Install-
ments) made pursuant to this Section shall be made as of and
from the date of the Additional Bonds then proposed to be
issued.
(d) That the principal of all Additional Bonds must be
scheduled to be paid or mature on March 1 or September 1
(or both) of the years in which such principal is scheduled
to be paid or mature; and all interest thereon must be
payable on March 1 and September 1.
Section 20. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS.
That Additional Bonds shall be issued only in accordance
with this Ordinance, but notwithstanding any provisions of
this Ordinance to the contrary, no installment, Series or
issue of Additional Bonds shall be issued or delivered
unless:
(a) The Mayor and the City Secretary of the City sign
a written certificate to the effect that the City is not in
default as to any covenant, condition or obligation in
connection with all outstanding Bonds and Additional Bonds,
and the ordinances authorizing same, and that the Interest
40
and Sinking Fund and the Reserve Fund each contains the
amount then required to be therein.
(b) An independent certified public accountant, or
independent firm of certified public accountants, signs a
written certificate to the effect that, during either the
next preceding year, or any twelve consecutive calendar
month period ending not more than ninety days prior to the
date of the then proposed Additional Bonds, the Net Revenues
were, in his or its opinion, at least equal to (1) 1.25
times the average annual principal and interest requirements
and (2) 1.1 times the principal and interest requirements
for the year during which such requirements are scheduled to
be the greatest (each computed on a fiscal year basis and
including Amortization Installments), of all Bonds and
Additional Bonds to be outstanding after the issuance of the
then proposed Additional Bonds.
Section 21. GENERAL COVENANTS-. That the City further
covenants and agrees that in accordance with and to the
extent required or permitted by law:
(a) PERFORMANCE. It will faithfully perform at all
times any and all covenants, undertakings, stipulations, and
provisions contained in this Ordinance, and each ordinance
authorizing the issuance of Additional Bonds, and in each
and every Bond and Additional Bond; it will promptly pay or
cause to be paid the principal of and interest on every Bond
and Additional Bond, on the dates and in the places and
manner prescribed in such ordinances and Bonds or Additional
41
Bonds; and it will, at the time and in the manner pre-
scribed, deposit or cause to be deposited the amounts
required to be deposited into the Interest and Sinking Fund
and the Reserve Fund; and any owner of the Bonds or Addi-
tional Bonds may require the City, its officials and employ-
ees to carry out, respect or enforce the covenants and
obligations of this Ordinance, or any ordinance authorizing
the issuance of Additional Bonds, by all legal and equitable
means, including specifically, but without limitation, the
use and filing of mandamus proceedings, in any court of
competent jurisdiction, against the City, its officials and
employees..
(b) CITY'S LEGAL AUTHORITY. It is a duly created and
existing home rule city of the State of Texas, and is duly
authorized under the laws of the State of Texas to issue the
Series 1988 Bonds; that all action on its part for the
issuance of the Series 1988 Bonds has been duly and effec-
tively taken, and that the Series 1988 Bonds in the hands of
the owners thereof are and will be valid and enforceable
special obligations of the City in accordance with their
terms.
(c) TITLE. It has or will obtain lawful title to the
lands, buildings, structures and facilities constituting the
System, that it warrants that it will defend the title to
all the aforesaid lands, buildings, structures and facili-
ties, and every part thereof, for the benefit of the owners
of the Bonds and Additional Bonds, against the claims and
42
demands of all persons whomsoever, that it is lawfully
qualified to pledge the Pledged Revenues to the payment of
the Bonds and Additional Bonds in the manner prescribed
herein, and has lawfully exercised such rights.
(d) LIENS. It will from time to time and before the
same become delinquent pay and discharge all taxes, assess-
menu and governmental charges, if any, which shall be
lawfully imposed upon it, or the System; it will pay all
lawful claims for rents, royalties, labor, materials and
supplies which if unpaid might by law become a lien or
charge thereon, the lien of which would be prior to or
interfere with the liens hereof, so that the priority of the
liens granted hereunder shall be fully preserved in the
manner provided herein, and it will not create or suffer to
be created any mechanic's, laborer's, materialman's or other
lien or charge which might or could be prior to the liens
hereof, or do or suffer any matter or thing whereby the
liens hereof might or could be impaired; provided however,
that no such tax, assessment or charge, and that no such
claims which might be used as the basis of a mechanic's,
laborer's, materialman's or other lien or charge, shall be
required to be paid so long as the validity of the same
shall be contested in good faith by the City.
(e) OPERATION OF SYSTEM; NO FREE SERVICE. It will,
while the Bonds or any Additional Bonds are outstanding and
unpaid, continuously and efficiently operate the System, and
shall maintain the System in good condition, repair and
43
working order, all at reasonable cost. No free service of
the System shall be allowed, and should the City or any of
its agencies or instrumentalities make use of the services
and facilities of the System, payment of the reasonable
value shall be made by the City out of funds from sources
other than the revenues of the System, unless made from
surplus or excess Pledged Revenues as permitted in Section
16(b).
(fj FURTHER ENCUMBRANCE. It, while the Bonds or any
Additional Bonds are outstanding and unpaid, will not
additionally encumber the Pledged Revenues in any manner,
except as permitted in this Ordinance in connection with
Additional Bonds, unless said encumbrance is made junior and
subordinate in all respects to the liens, pledges, covenants
and agreements of this Ordinance; but the right of the City
to issue revenue bonds payable from a subordinate lien on
the Pledged Revenues is specifically recognized and re-
tained.
(g) SALE OR DISPOSAL OF PROPERTY. It, while the Bonds
or any Additional Bonds are outstanding and unpaid, will not
sell, convey, mortgage, encumber, lease or in any manner
transfer title to, or otherwise dispose of the System, or
any significant or substantial part thereof; provided
further that whenever the City deems it necessary to dispose
of any other property, machinery, fixtures or equipment, it
may sell or otherwise dispose of such property, machinery,
fixtures or equipment when it has made arrangements to
44
,.
replace the same or provide substitutes therefor, unless it
is determined that no such replacement or substitute is
necessary. Proceeds from any sale hereunder not used to
replace or provide for substitution of such property sold,
shall be used for improvements to the System or to purchase
or redeem Bonds and Additional Bonds.
(h) INSURANCE. (1) It shall cause to be insured such
parts of the System as would usually be insured by corpora-
tions operating like properties, with a responsible insur-
ance company or companies, against risks, accidents or
casualties against which and to the extent insurance is
usually carried by corporations operating like properties,
including, to the extent reasonably obtainable, fire and
extended coverage insurance, insurance against damage by
floods, and use and occupancy insurance. Public liability
and property damage insurance shall also be carried unless
the City Attorney of the City gives a written opinion to the
effect that the City is not liable for claims which would be
protected by such insurance. At any time while any con-
tractor engaged in construction work shall be fully respon-
sible therefor, the City shall not be required to carry
insurance on the work being constructed if the contractor is
required to carry appropriate insurance. All such policies
shall be open to the inspection of the bondholders and their
representatives at all reasonable times. Upon the happening
of any loss or damage covered by insurance from one or more
of said causes, the City shall make due proof of loss and
45
:~;
.,
shall do all things necessary or desirable to cause the
insuring companies to make payment in full directly to the
City. The proceeds of insurance covering such property,
together with any other funds necessary and available for
such purpose, shall be used forthwith by the City for
repairing the property damaged or replacing the property
destroyed; provided, however, that if said insurance pro-
ceeds and other funds are insufficient for such purpose,
then said insurance proceeds pertaining to the System shall
be used promptly as follows:
(i) for the redemption prior to maturity of the
Bonds and Additional Bonds, ratably in the proportion
that the outstanding principal of each series of Bonds
or Additional Bonds bear to the total outstanding
principal of all Bonds and Additional Bonds, provided
that if on any such occasion the principal of any such
series is not subject to redemption, it shall not be
regarded as outstanding in making the foregoing com-
putation; or
(ii) if none of the outstanding Bonds or Addi-
tional Bonds is subject to redemption, then for the
purchase on the open market and retirement of said
Bonds and Additional Bonds in the same proportion as
prescribed in the foregoing clause (i), to the extent
practicable; provided that the purchase price for any
Bond or Additional Bond shall not exceed the redemption
46
price of such Bond or Additional Bond on the first date
upon which it becomes subject to redemption; or
r (iii) to the extent that the foregoing clauses
(i) and (ii) cannot be complied with at the time, the
insurance proceeds, or the remainder thereof, shall be
deposited in a special and separate trust fund, at an
official depository of the City, to be designated the
Insurance Account. The Insurance Account shall be held
until such time as the foregoing clauses (i) and/or
(ii) can be complied with, or until other funds become
available which., together with the Insurance Account,
will be sufficient to make the repairs or replacements
originally required, whichever of said events occurs
first .
(2) The foregoing provisions of (1~) above notwith-
standing, the City shall have authority either to self-
insure or enter into co-insurance or similar plans where
risk of loss is shared in whole or in part by the City.
(3) The annual audit hereinafter required shall
contain a section commenting on whether or not the City has
complied with the requirements of this Section with respect
to the maintenance of insurance, and listing all policies
carried, and whether or not all insurance premiums upon the
insurance policies to which reference is hereinbefore made
have been paid.
(i) RATE COVENANT. The City Council of the City will
fix, establish, maintain and collect such rates, charges and
47
fees for the use and availability of the System at all times
as are necessary to produce Gross Revenues sufficient (1) to
pay all current operation and maintenance expenses of the
System, (2) to produce Net Revenues for each year at least
equal to the principal and interest requirements (including
Amortization Requirements) of all then outstanding Bonds and
Additional Bonds, and (3) to pay all other obligations of
the System.
(j) RECORDS. It will keep proper books of record and
account in which full, true and correct entries will be made
of all dealings, activities and transactions relating to the
System, the Pledged Revenues and the Funds created pursuant
to this Ordinance, and all books, documents and vouchers
relating thereto shall at all reasonable times be made
available for inspection upon request of any bondholder.
(k) AUDITS. After the close of each year while any of
the Bonds or any Additional Bonds are outstanding, an audit
will be made of the books and accounts relating to the
System and the Pledged Revenues by an independent certified
public accountant or an independent fins of certified public
.accountants. As soon as practicable after the close of each
such year, and when said audit has been completed and made
available to the City, a copy of such audit for the preced-
ing year shall be mailed to the Municipal Advisory Council
of Texas and to any holder of 5$ or more in aggregate
principal amount of then outstanding Bonds and Additional
Bonds who shall so request in writing. Such annual audit
48
reports shall be open to the inspection of the bondowners
and their agents and representatives at all reasonable
times.
(1) GOVERNMENTAL AGENCIES. It will comply with all of
the terms and conditions of any and all franchises, permits
and authorizations applicable to or necessary with respect
to the System, and which have been obtained from any govern-
mental agency; and the City has or will obtain and keep in
full force and effect all franchises, permits,. authorization
and other requirements applicable to or necessary with
respect to the acquisition, construction, equipment, opera-
tion and. maintenance of the System.
(m) NO COMPETITION. It will not grant any franchise
or permit for the acquisition, construction or operation of
any competing facilities which might be used as a substitute
for the System's facilities, and, to the extent that it
legally may, the City will prohibit any such competing
facilities.
Section 22. AMENDMENT OF ORDINANCE. (a) That the
owners of Bonds and Additional Bonds aggregating in prin-
cipal amount 51$ of the aggregate principal amount of then
outstanding Bonds and Additional Bonds shall have the right
from time to time to approve any amendment to this Ordinance
which may be deemed necessary or desirable by the City,
provided, however, that without the consent of the owners of
all of the Bonds and Additional Bonds at the time out-
standing, nothing herein contained shall permit or be
49
a .~
construed to permit the amendment of the terms and condi-
tions in this Ordinance or in the Bonds or Additional Bonds
so as to:
(1) Make any change in the maturity of the outstanding
Bonds or Additional Bonds;
(2) Reduce the rate of interest borne by any of the
outstanding Bonds or Additional Bonds;
(3) Reduce the amount of the principal payable on the
outstanding Bonds or Additional Bonds;
(4) Modify the terms of payment of principal of or
interest on the outstanding Bonds or Additional
Bonds, or impose any conditions with respect to
such payment;
(5) Affect the rights of the owners of Iess than all
of the Bonds and Additional Bonds then outstand-
ing;
(6) Change the minimum percentage of the principal
amount of Bonds and Additional Bonds necessary for
consent to such amendment.
(b) That 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
50
of the Paying Agent/Registrar for inspection by all holders
of Bonds and Additional Bonds. Such publication is not
required, however, if notice in writing is given to each
holder of Bonds and Additional Bonds.
(c) That whenever at any time not less than thirty
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 owners of at least 51$ in aggregate prin-
cipal amount of all Bonds and Additional Bonds then out-
standing, 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) That 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
owners of then outstanding Bonds and Additional Bonds and
all future Additional Bonds shall thereafter be determined,
exercised and enforced hereunder, subject in all respects to
such amendments.
(e) That any consent given by the owner of a Bond or
Additional Bond pursuant to the provisions of this Section
51 _~'
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 owners of the same Bond or Additional 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 owner who gave such consent, or by a successor
in title, by filing notice thereof with the Paying Agent/-
Registrar and the City, but such revocation shall not be
effective if the owners of 51$ in aggregate principal amount
of the then outstanding Bonds and Additional Bonds as in
this Section defined have, prior to the attempted revoca-
tion, consented to and approved the amendment.
(f) That for the purpose of this Section, the owner-
ship of Bonds or Additional Bonds shall be as shown by the
registration books of the Payinq Agent/Registrar.
(g) The foregoing provisions of this Section notwith-
standing, the City by action of the City Council may amend
this Ordinance for any one or more of the following pur-
poses:
(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;
52
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4 h K I
(2) To make such provisions for the purpose of
curing any ambiguity, or curing, correcting or supple-
menting any defective provision contained in this
Ordinance, or in regard to clarifying matters or
questions arising under this Ordinance, as are neces-
sary or desirable and not contrary to or inconsistent
with this Ordinance and which shall not adversely
affect the interests of the owners of the Bonds or
Additional 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 and each series of
Additional Bonds outstanding at the date of the adop-
tion of such modification shall cease to be outstand-
ing, 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 23. DAMAGED, MUTILATED, LOST, STOLEN, OR
DESTROYED BONDS. (a) REPLACEMENT BONDS. In the event any
outstanding Series 1988 Bond is damaged, 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 Series 1988
Bond, in replacement for such Series 1988 Bond in the manner
hereinafter provided.
S3
(b) APPLICATION FOR REPLACEMENT BONDS. Application
for replacement of damaged, mutilated, lost, stolen, or
destroyed Series 1988 Bonds shall be made to the Paying
Agent/Registrar. In every case of loss, theft, or destruc-
tion of a Series 1988 Bond, the applicant for a replacement
bond shall furnish to the City and to the Paying Agent/Reg-
istrar 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 Series 1988 Bond, the applicant shall
furnish to the City and to the Paying Agent/Registrar
evidence to their satisfaction Hof the loss, theft, or
E
I
destruction of such Series 1988 :Bond, as the case may be.
1
In every case of damage or mutilation of a Series 1988 Bond,
the applicant shall surrender to the Paying Agent/Registrar
for cancellation the Series 1988 Bond so damaged or muti-
lated.
k
(c) NO DEFAULT OCCURRED. 'Notwithstanding the fore-
going provisions of this Sectioa~, in the event any such
Series 1988 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
Series 1988 Bond, the City may a~thorize the payment of the
same (without surrender thereofkexcept in the case of a
damaged or mutilated Series 1988 Bond) instead of issuing a
replacement Series 1988 Bond, provided security or indemnity
is furnished as above provided in~this Section.
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54 ~ _
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(d) CHARGE FOR ISSUING REPLACEMENT BONDS. Prior to
the issuance of any replacement bond, the Paying Agent/Reg-
istrar shall charge the owner of such Series 1988 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
Series 1988 Bond is lost, stolen, or destroyed shall consti-
tute a contractual obligation of the City whether or not the
lost, stolen, or destroyed Series 1988 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 Series 1988 Bonds
duly issued under this Ordinance.
(e) AUTHORITY FOR ISSUING REPLACEM~N1 ~vNliS. In
accordance with Section 6 of Art. 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 auth-
enticate and deliver such bonds in the form and manner and
with the effect, as provided in Section 5(d) of this Ordi-
nance for Series 1988 Bonds issued in exchange for other
Series 1988 Bonds.
Section 24. TAX COVENANTS. The Issuer covenants to
take any action tolassure, or refrain from any action which
55
l ~ ; . ...
~- ~,
would adversely affect, the treatment of the Series 1988
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 taxa-
tion. In furtherance thereof, the Issuer covenants as
follows:
(a) to take any action to assure that no more
than 10 percent of the proceeds of the Series 1988
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 Issuer, 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 Series 1988 Bonds, in contravention of section
141(b) .(2 ) o f 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 Series 1988 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
56
~. - ,. `
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 Series 1988 Bonds (less
amounts deposited into a reserve fund, if any) is
directly or indirectly used to finance loans to per-
sons, 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 Series 1988 Bonds being treated
as "private activity bonds" within the meaning of
section 141(b) of the Code;
(e) to refrain from taking any action that would
result in the Series 1988 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 Series 1988 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 Series 1988 Bonds, other than investment
property acquired with --
(1) proceeds of the Series 1988 Bonds
invested for a reasonable temporary period of 3
years or less until such proceeds are needed for
k.
57
2 's' i ~.
Y • ~. r, ~ t
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
(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 Series 1988 Bonds;
(g) to otherwise restrict the use of the proceeds
of the Series 1988 Bonds or amounts treated as proceeds
of the Series 1988 Bonds, as may be necessary, so that
the Series 1988 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 date of delivery of the Series 1988 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 Series 1988 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
Issuer to fulfill its responsibilities under this
58 -
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M ` ~ ~
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 Series 1988
Bonds.
It is the understanding of the Issuer 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 Series 1988 Bonds, the Issuer will not be required to
comply with any covenant contained herein to the extent that
such modification or expansion, in the opinion of national-
ly-recognized bond counsel, will not adversely affect the
exemption from federal income taxation of interest on the
Series 1988 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 Series 1988 Bonds, the Issuer 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 Series 1988 Bonds under section 103 of the Code.
Section 25. APPROVAL AND REGISTRATION OF BONDS. That
the Mayor of the City is hereby authorized to have control
of the Series 1988 Bonds and all necessary records and pro-
ceedings pertaining to the Series 1988 Bonds pending their
,.
59
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w ~;
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 Series 1988 Bonds,
said Comptroller of Public Accounts (or a deputy designated
in writing to act for said Comptroller) shall manually sign
the Comptroller's Registration Certificate accompanying the
Series 1988 Bonds, and the seal of said Comptroller shall be
impressed, or placed in facsimile, on each such certificate.
Section 26. SALE OF SERIES 1988 BONDS. That the sale
of the Series 1988 Bonds to
(the "Purchaser"),
at a price of par and accrued interest to date of delivery,
plus a premium of $ is hereby authorized, ratified
and confirmed. One Series 1988 Bond in the principal amount
maturing on each maturity date as set forth in Section 2
hereof shall be delivered to the Purchaser, and the Purchas-
er shall have the right to exchange such Bonds as provided
in Section 5 hereof without cost. The Series 1988 Bonds
were sold pursuant to the terms of a "Notice of Sale and
Bidding Instructions", "Official Bid Form" and "Official
Statement", which documents shall be approved by the adop-
tion of a resolution concurrently herewith.
Section 27. IMMEDIATE EFFECT. That this Ordinance
shall be effective immediately from and after its passage in
6 0 _'
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accordance with the provisions of Section 2 of Chapter 25 of
the Charter of the City, and it is accordingly so ordained.
ADOPTED this 8th day of. March,
Ma
ATTEST:
Cit Secretary
A OVED AS TO ORM LEGALITY:
City Attorney
(SEAL)
4
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ri , t: >
THE STATE OF TEXAS
COUNTX OF TARRANT
CITY OF FORT WORTH
.,
I, the undersigned, City Secretary of the City of Fort
Worth, in the State of Texas, do hereby certify that I have
compared the attached and foregoing excerpt from the minutes
of the special meeting of the City Council of the City of
Fort Worth, Texas which was held on March 8, 1988, and of an
ordinance which was duly passed at said meeting, and that
said copy is a true and correct copy of said excerpt and the
whole of said ordinance. Said meeting was open to the
public, and public notice of the time, place and purpose of
said meeting was given, all in accordance with vernon's
Annotated Civil Statutes, Article 6252-17, as amended.
In testimony whereof, I have set my hand and have
hereunto affixed the seal of said City of Fort Worth, this
8h day of March, 1988.
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C' y Secretary of the Cit of
Fort Worth, Texas
OFFICE OF COMPTROLLER
REGISTER NO.
STATE OF TEXAS
~ I hereby certify that there is on file and of record in
my office a certificate of the Attorney General of the State
of Texas to the effect that this Bond has been examined by
him as required by law, and that he finds that it has been
issued in conformity with the Constitution and laws of the
State of Texas, and that it is a valid and binding special
obligation of the City of Fort Worth, Texas, payable in the
manner provided by and in the ordinance authorizing same,
and said Bond has this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas
Comptroller of Public Accounts of
the State of Texas
(SEAL)
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AccouNTlrca z
JRAN~?GRTArIOr+EPUai€~J~1y1L;~~®~
MATER AD MIN)STRA7~ckrt d
xONANCE•Yl
pity ®f ' 1F®~-t ~®~°~~., ~e.~~~
DATE REFERENCE SUBJECT SALE OF $18,875,000 WATER AND PAGE
03/08/88 NUMBER G-7476 SEWER SYSTEM REVENUE BONDS, SERIES 198
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RECOMMENDATION:
It is recommended that:
1. The bonds be sold to the bidder offering the lowest interest
cost, Goldman Sachs, at an average net effective rate
of 7.252069 7; and,
7 e-
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2. The City Council adop t an Ordinance authorizing the issuance
of $18,875,000 in Wat er and Sewer System Revenue Bonds,
Series 1988.
BACKGROUND:
Bids for $18,875,000 Water and Sewer System Revenue Bonds, Series 1988 were
received today, Tuesday, March 8, 1988, at 10:30 AM. A summary of the
average annual effective interest rates for the bids received is shown below:
Company Rate
Goldman Sachs 7.252069
Griffin, Kubik, Stephens & Thompson 7.2797$
Shearson Lehman Brothers 7.292029
Underwood, Neuhaus & Co. 7.31515
Prudential Bache 7.311614
Dillon, Read & Co., Inc. 7.373311
Bear Stearns 7.383605
APPROVED BY
ciTY cou~NCi~
MAR $ 1988
Cite Seexetary of the
Ci of Fort Worth, Texas
SUBMITTED FOR 7M
CITY MANAGER'S
~
DISPOSITION BY COUNCIL.:
PROCESSED BY
OFFICE BY: ^ APPROVED
ORIGINATING [~ OTHER (DESCRIBE)
DEPARTMENT HEAD: CITY SECRETARY
FOR ADDITIONAL INFORMATIO
CONTACT Adopted Ortlinai~ce iuo. ~~~
DATE