HomeMy WebLinkAboutOrdinance 5338 ORDINANCE NO.
_:�
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF REVENUE
BONDS OF THE CITY OF FORT WORTH IN THE AGGREGATE
PRINCIPAL AMOUNT OF TWO MILLION, THREE HUNDRED THOU-
SAND DOLLARS ($2,300,000.00) TO FINANCE THE IMPROVE-
MENT AND EXTENSION OF THE CITY'S WATER SYSTEM; PRO-
VIDING FOR THE PAYMENT OF SUCH BONDS SOLELY FROM
THE REVENUES OF THE CITY'S WATER AND SEWER SYSTEMS;
PLEDGING A PORTION OF SUCH REVENUES TO SUCH PAYMENT;
ENTERING INTO CERTAIN COVENANTS AND AGREEMENTS WITH
RESPECT TO THE OPERATION OF SUCH SYSTEMS AND THE
APPLICATION OF THE REVENUES DERIVED THEREFROM; AND
REPEALING ALL ORDINANCES IN CONFLICT HEREWITH.
WHEREAS, the City of Fort Worth (hereinafter referred
to as City) has established, and for many years has main-
tained and operated, and is now maintaining and operating a
system (hereinafter referred to as the City Water System)
used or useful to obtain a supply of water for said City and
its inhabitants and to conserve, treat and dispose of such
water, and also a system (hereinafter referred to as the City
Sewer System) used or useful for the collection, treatment
and disposal of sewage and waste; and,
WHEREAS, at elections duly called and held in the City
on January 25, 1949, January 26, 1954, and January 31, 1956,
a majority of the qualified voters of the City voted in favor
of propositions authorizing the issuance of Water and Sewer
Revenue Bonds; and,
WHEREAS, the City has heretofore issued all of the bonds
authorized by propositions submitted at the elections held
on January 25, 1949 and January 26, 1954, said bonds having
been issued pursuant to ordinances duly passed by the City
Council of said City, the first of said ordinances passed on
April 20, 1949, being hereinafter referred to as the "First
Issue Bond ordinance"; and,
WHEREAS, pursuant to ordinances heretofore duly passed,
the City has issued bonds in the aggregate principal amount
of Fifteen Million, Seven Hundred Thousand Dollars ($15,-
700,000.00) out of the Eighteen Million Dollar ($18,000,000-00)
issue which was authorized by propositions submitted at the
election held on January 31, 1956, and the bonds so issued
comprise Fourteen Million, Seven Hundred Thousand Dollars
($14,700,000.00) of the bonds referred to in Proposition No.
1 and all of the one Million Dollars ($1,000,000.00) of
bonds referred to in Proposition No. 2 submitted at said
election, and the remainder of the bonds referred to in said
Proposition No. 1 are now proposed to be issued; and,
WHEREAS, it was provided in Section 109 of the First
Issue Bond ordinance passed April 20, 1949, that the City of
Fort Worth might issue additional bonds payable from the Debt
Service Fund created by said ordinance, which bonds, when
issued, would be secured equally and ratably with the bonds
authorized by said ordinance of 1949; and,
WHEREAS, the conditions prescribed in Section 109 of
said ordinance of 1949 have been fulfilled and exist so that
the City now has authority under said section to issue the
additional bonds herein authorized; and,
WHEREAS, it is deemed wise and expedient by the City
Council of said City, in the exercise of the discretion re-
posed in it by law, that Two Million, Three Hundred Thousand
Dollars ($2,300,000.00) of the bonds authorized by Proposi-
tion No. 1 submitted at said election held on January 31,
1956, be issued, in addition to the bonds heretofore issued
and sold, for the purpose of improving and extending the City
Water System, and that said bonds shall be issued as provided
by this ordinance; and,
WHEREAS, the following terms, where used in this ordi-
nance, unless the context shall indicate another or different
meaning or intention, are to be construed and used and are
intended to have meanings as follows:
(1) "City Water System" and "City Sewer
System" mean the systems described in the first
paragraph of this ordinance.
(2) "Bonds" shall mean the bonds described
in Section 101 of this ordinance.
(3) "Additional Bonds" shall mean the bonds
hereafter issued as provided in Section 109 of
this ordinance.
(4) "Issued Bonds" shall mean the Issued
Bonds described in Section 401 of this ordinance.
(5) "Operating Expenses" shall mean Operating
Expenses as defined in Section 401 of this or-
dinance.
(6) "Revenues" and "Net Revenues" shall mean,
respectively, Revenues and Net Revenues as de-
fined in Section 401 of this ordinance.
(7) "First Issue Bond ordinance" shall mean
the ordinance hereinbefore described, adopted by
the City Council on April 20, 1949.
(8) "Operating Fund" shall mean the fund de-
scribed in Section 402 of this ordinance.
(9) "Debt Service Fund" and "Current Account"
and "Reserve Account" shall mean the Debt Service
Fund, the Current Account and the Reserve Account
described in Section 405 of this ordinance.
(10) "Operation Reserve Account" shall mean the
Operation Reserve Account described in Section
406 of this ordinance.
(11) "Issuance Date" shall mean the first day
on which any of the Bonds are delivered.
(12) "Year" or "Fiscal Year" shall mean the
yearly period beginning October 1 in each year.
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
ARTICLE I.
AUTHORIZATION AND DESCRIPTION OF BONDS
Section 101. Bonds of the City shall be issued in the
aggregate principal amount of Two Million, Three Hundred Thou-
sand Dollars ($2,300,000.00) for the purpose of improving and
extending the Waterworks System of said City. All of such
bonds (hereinafter referred to as the Bonds) shall constitute
a single issue to be known as Water and Sewer Revenue Bonds,
Series 90. The Bonds shall be payable solely from the Net
Revenues of the City's Water and Sewer Systems, as defined
in Section 401 of this ordinance. The holder or holders of
the Bonds shall never have the right to demand payment there-
of out of any funds raised or to be raised by taxation.
Section 102. The Bonds are hereby authorized and shall
be issued pursuant to the Constitution and statutes of the
State of Texas, including particularly Articles 1111 to 1118,
inclusive, of the 1925 Revised Civil Statutes of Texas, as
amended.
Section 103. The Bonds shall be four hundred sixty (460)
in number, numbered from twelve thousand, nine hundred eighty-
one (12, 981) to thirteen thousand, four hundred forty (13,440) ,
both inclusive, and of the denomination of Five Thousand
Dollars ($5,000.00) each, shall be dated March 1, 1965, and
shall mature serially on March 1st of each year, as follows:
YEAR AMOUNT
1966 $90,000.00
1967 90,000.00
1968 90,000.00
1969 90,000.00
1970 90,000.00
1971 90,000.00
1972 90,000.00
1973 90,000.00
1974 90,000.00
1975 90,000.00
1976 90,000.0()
1977 90,000.00
1978 90,000.00
1979 90,000.00
1980 90,000.00
1981 95,000.00
1982 95,000.00
1983 95,000.00
1984 95,000.00
1985 95,000.00
1986 95,000.00
1987 95,000.00
1988 95,000.00
1989 95,000.00
1990 95,000.00
The Bonds shall be payable, with respect to both principal
and interest, at the principal office of the Manufacturers
Hanover Trust Company, in the Borough of Manhattan, City and
State of New York, in such coin or currency of the United
States of America as at the time of payment shall be legal
tender for the payment of public and private debts.
Section 104. The Bonds shall bear interest from March
1, 1965, at the rates as follows:
Bonds maturing 1966 to 1970, both incl. , 4-1/4% per annum;
Bonds maturing 1971 to 1977, both incl. , 3 % per annum;
Bonds maturing 1978 to 1981, both incl. , 3.10 % per annum;
Bonds maturing 1982 to 1985, both incl. , 3.20 % per annum; and
Bonds maturing 1986 to 1990, both incl. , 3-1/41% per annum,
payable September 1, 1965, and semi-annually thereafter on
March lst and September lst of each year until the principal
amount thereof shall be paid.
Section 105. The Bonds shall be payable to bearer,
without privilege of registration. Each of the Bonds shall
be signed by the facsimile signature of the Mayor, approved
as to form and legality by the facsimile signature of the
City Attorney and attested manually by the City Secretary,
and the corporate seal of the City of Fort Worth, Texas,
shall be affixed to or impressed upon each of them. The fac-
simile signatures of the Mayor and City Secretary shall be
lithographed or printed upon the coupons attached to said
bonds, and such facsimile signatures shall have the same ef-
fect as if manually placed on said Bonds and coupons. Each
successive holder of each Bond, and each successive holder of
each of the coupons attached to the Bonds, is conclusively
presumed to forego and renounce his equities in favor of sub-
sequent holders for value without notice, and to agree that
such Bond and each of such coupons may be negotiated by de-
livery by any person having possession thereof, howsoever
such possession may have been acquired, and that any holder
who shall have taken such Bond or any of such coupons from
any person for value and without notice thereby has acquired
absolute title thereto, free from any defenses enforceable
against any prior holder and free from all equities and
claims of ownership of any such prior holder.
Section 106. The Bonds, the interest coupons to be
attached to the Bonds, and the certificate of the Comptroller
of Public Accounts of the State of Texas, and the certifi-
cate of the City Attorney to be endorsed on the Bonds shall
be in substantially the following forms, respectively, with
the proper insertions, substitutions and variations as in
this ordinance provided or permitted:
Section 107. The Bonds herein authorized shall be
presented to the Attorney General of the State of Texas
for examination and approval and to the Comptroller of
Public Accounts for registration. Upon registration of
said Bonds, the Comptroller of Public Accounts (or a deputy
designated in writing to act for the Comptroller) shall
manually sign the Comptroller's certificate of registration
prescribed herein to be printed on the back of each Bond,
and the seal of the Comptroller shall be impressed, or
printed, or lithographed on each of said Bonds.
Section 108. The Mayor and City Secretary are hereby
authorized to execute said Bonds and to impress thereon the
corporate seal of the City. The City Treasurer is hereby
authorized to deliver said Bonds to the purchaser or pur-
chasers to whom they may be sold by the City Council upon
receipt of the purchase price to be paid by such purchaser
or purchasers.
Section 109. In addition to the Bonds authorized by
this ordinance, the City may issue bonds (hereinafter re-
ferred to as Additional Bonds) payable from the Debt Service
Fund hereinafter referred to and secured, equally and ratably
with the Bonds authorized by this ordinance, by a pledge of
the Revenues of the Systems, but only upon the following
conditions:
(a) That the Additional Bonds shall be issued for
the purpose of improving or extending the Systems;
(b) That at the time the Additional Bonds are is-
sued, the City shall not be in default in making any payment
required by Section 404, 405 or 406 of this ordinance;
.................
(c) That the amount of the average annual Net
Revenues of the Systems computed by dividing by two the
Net Revenues for the two fiscal years immediately preceding
the time of issuance of the Additional Bonds shall be not
less than 1501% of the maximum aggregate amount of princi-
pal and interest payable in any future fiscal year with
respect to the Bonds and Additional Bonds then outstanding
(including Issued Bonds as hereinafter defined) and the Ad-
ditional Bonds about to be issued; and
(d) That the principal of the Additional Bonds
shall be made payable on March 1 of the years in which such
principal is payable, and that the interest on the Addi-
tional Bonds shall be made payable semi-annually on Septem-
ber 1 and March 1.
All Bonds issued in accordance with the provisions of
this Section 109 and pursuant to the propositions referred
to in the preamble of this ordinance, as well as all of those
issued pursuant to propositions heretofore or hereafter
adopted by a majority of the resident, qualified electors
of the City owning taxable property in the City, and who
have duly rendered the same for taxation, voting at an elec-
tion held for that purpose, whether issued by virtue of
this ordinance or by virtue of earlier or subsequent ordi-
nances or resolutions, and whether issued at one time or
from time to time, shall be deemed and treated as a single
issue of bonds and as representing parts of the same indebted-
ness, within the meaning of Article 1113 of the 1925 Re-
vised Statutes of Texas, as amended.
.........................
ARTICLE II.
REDEMPTION OF BONDS BEFORE MATURITY
Section 201. The Bonds payable subsequent to March
1, 1976, shall be redeemable prior to their respective ma-
turities, at the option of the City, on March 1, 1976, or
on March 1 of any year subsequent to 1976, upon the follow-
ing terms and conditions, viz. : (1) The Bonds called for
redemption on any March 1 must include all of the Bonds
then outstanding or must be the outstanding Bonds bearing
the highest identifying numbers; (2) the redemption price
shall be par and accrued interest to date of redemption,
plus a premium for each bond redeemed, of the following
respective amounts in the following respective years:
1976, $125.00; 1977, $112.50; 1978, $100.00; 1979, $87.50;
1980, $75.00; 1981, $62.50; 1982, $50.00; 1983, $37.50;
1984, $25.00; 1985, $12.50; and without premium if redeemed
after 1985; and (3) at least thirty days prior to the date
upon which such redemption is to be made, a notice of inten-
tion to make such redemption, describing the Bonds to be re-
deemed, must be published at least once in a newspaper
printed in the English language and published and of gen-
eral circulation in the City of Fort Worth, in the State of
Texas, and must be published at least once in a financial
journal published in the Borough of Manhattan, in the City
and state of New York. Such option may be exercised by or-
dinance or resolution duly adopted by the City Council of
the City.
Section 202. Nothing contained in this ordinance
shall be construed to limit or affect the right of the
City to purchase, with any moneys lawfully available for
such purpose, any of the outstanding Bonds at a price less
than the redemption price hereinbefore prescribed.
Section 203. Notice having been given by publication
in the manner provided in Section 201, the Bonds called for
redemption shall become due and payable on the redemption
date designated in the notice at the redemption price de-
termined, as provided in Section 201, and upon presentation
and surrender thereof at the place of payment thereof, to-
gether with all appurtenant coupons maturing subsequent to
the redemption date, such Bonds shall be paid at the re-
demption price aforesaid. All interest installments repre-
sented by coupons which shall have matured on or prior to
the redemption date shall continue to be payable to the
bearers of such coupons. Interest on any Bonds to be re-
deemed shall cease to accrue from and after the redemption
date specified in such notice unless the City defaults in
the payment of the redemption price thereof.
ARTICLE IV.
APPLICATION OF REVENUES
Section 401. where used in this ordinance (1) the
term "Systems" shall be deemed to include all properties
of every nature owned or used by the City and used or use-
ful in the operation of the City Water System or the City
Sewer System, including real estate, personal and intangible
properties, whether lying within or without the boundaries
of the City, and shall include all improvements, additions
and extensions which may hereafter be made to said properties
or Systems; (2) the term "Operating Expenses" shall mean the
reasonable and proper expenses of operating and maintaining
the Systems, including, without limiting the generality of
the foregoing, expenditures for salaries, labor, materials,
interest, repairs and extensions necessary to enable the
Systems to render efficient service, and every proper item
of expense, but such repairs and extensions shall be limited
to those which in the judgment of the City Council are neces-
sary to keep the Systems in operation and to render adequate
service to the City and the inhabitants thereof, or neces-
sary to meet some physical accident or condition which
would otherwise impair such Systems and the Revenues there-
of; (3) the term "Revenues" shall mean the gross revenue
and income derived by the City from the operation of the Sys-
tems; (4) the term "Net Revenues" shall mean the amount by
which the aggregate of the Revenues received by the City
in any year shall exceed the amount required to pay the
Operating Expenses of such year; (5) the term "Issued Bonds"
shall mean the Forty-eight Million, Seven Hundred Thousand
Dollars ($48,700,000.00) Water and Sewer Revenue Bonds
which have been heretofore issued pursuant to the au-
thority given by the propositions adopted at said elec-
tions held in the City on January 25, 1949, January 26,
1954, and January 31, 1956, and pursuant to the ordinances
referred to in the preamble of this ordinance; and (6) the
term "First Issue Bond Ordinance" shall mean the ordinance
adopted by the City Council on April 20, 1949.
Section 402. All Revenues (as defined in Section 401
of this ordinance) received or collected by the City or any
of its officers or agencies shall be deposited by the City
Treasurer, as promptly as possible after their receipt, in
a bank or banks authorized to act as depositary or deposi-
taries of the City, and shall be held by such bank or banks
in a special fund or account to be known as the "Water and
Sewer Operating Fund" (hereinafter referred to as the Operat-
ing Fund) , established by the First Issue Bond ordinance.
Section 403. Subject only (1) to the right of the
City to pay from the operating Fund moneys required for
Operating Expenses as provided in Section 404 of this ordi-
nance and (2) to the right of the City to expend moneys in
the Operating Fund in accordance with Section 406 of this
ordinance, all moneys paid or required by Section 402 to be
paid into the operating Fund are hereby pledged to secure
the payment of the principal of, the redemption premium, if
any, and interest on the Bonds (including Issued Bonds and
Additional Bonds issued in accordance with Section 109 of
this ordinance) , and this pledge shall be valid and binding
from and after the earliest date (hereinafter referred to
as the issuance Date) upon which any bonds are issued pur-
suant to this ordinance. Revenues, as received by the
City, shall immediately be subject to the lien of this
pledge without any physical delivery thereof or further
act, and the lien of this pledge shall be valid and binding
as against all parties having claims of any kind in tort,
or contract, or otherwise against the City, irrespective of
whether such parties have notice of such lien.
Section 404. From the Operating Fund the City shall
first pay Operating Expenses as such expenses become due
and payable.
Section 405. (1) The Special Fund known as the "Water
and Sewer Debt Service Fund" (hereinafter referred to as
"Debt Service Fund") established by the First Issue Bond Or-
dinance shall be continued and maintained, and such Special
Fund shall be divided into a "Current Account" and a "Re-
serve Account" as provided in the First Issue Bond Ordinance.
All moneys paid into such accounts as hereinafter provided
and as provided in the First Issue Bond ordinance shall be
deposited in one or more depositaries of the City as a Special
Fund and shall be kept separate from all other moneys of the
City.
(2) On or before the last day of the
first month ending subsequent to the Issuance Date, and on
or before the fifteenth day of each month thereafter, the
City shall, out of the moneys remaining in the Operating Fund
after payment of operating Expenses then due and payable, pay
(a) Into the current Account of the Debt Service Fund:
(1) An amount equal to one-sixth (1/6) of
the interest payable on the Bonds
(including Issued Bonds and Additional
Bonds) then outstanding on the inter-
est payment date next ensuing, less
the amount, if any, received as ac-
crued interest from the purchasers of
the Bonds and deposited to the credit
of the Current Account and available
for the purpose of paying said inter-
est; and
(2) An amount equal to one-twelfth (1112)
of the principal of the Bonds (includ-
ing Issued Bonds and Additional Bonds)
then outstanding that will mature on
the March first next ensuing; and
(b) Into the Reserve Account of the Debt Service Fund:
An amount equal to twenty per cent
(200%) of said payments into the Cur-
rent Account; provided, however, that
whenever and for so long as the amount
in the Reserve Account shall be as much
as the aggregate amount of principal
and interest that will become due and
payable in the twelve months' period
beginning on the March 2 next ensuing
on the Bonds (including Issued Bonds
and Additional Bonds) then outstanding,
no payment need be made into the Reserve
Account; and provided, further, that no
greater payment need be made into the
Reserve Account than shall be necessary
to make the amount in the Reserve Account
equal to said aggregate amount of prin-
cipal and interest.
(3) In addition to the amount required
by the foregoing provisions of this section to be paid into
the Current Account of the Debt Service Fund on or before
the last day of the month in which any Bonds or Additional
Bonds are delivered, the City shall pay into said account, on
or before said day, out of moneys remaining in the Operating
Fund after the payment of Operating Expenses then due and
payable, an amount equal to the amounts, if any, which would
have been theretofore paid, pursuant to said foregoing provi-
sions, into the Current Account with respect to said Bonds
or Additional Bonds (a) on account of interest, if said
Bonds or Additional Bonds had been delivered six months
before the interest payment date next ensuing, and (b) on
account of principal, if said Bonds or Additional Bonds
had been delivered one year before the principal payment
date next ensuing.
(4) if for any reason the moneys in the
Current Account or the Reserve Account of the Debt Service
Fund, and actually available for the purpose of paying the
principal of or interest on the Bonds or the Issued Bonds
or the Additional Bonds, shall at any time be less than the
total amount required by the foregoing provisions of this
section to be paid into such account up to such time, after
deducting, in the case of the Current Account, moneys
previously applied to, or set aside and held by the City
for, the payment of matured Bonds or Issued Bonds or Addi-
tional Bonds and matured coupons appurtenant to Bonds or the-
Issued Bonds or Additional Bonds, the amount of the deficiency
shall be added to the amount otherwise required to be paid from
the Operating Fund into such deficient account in each month
thereafter until all such deficiencies shall have been made
up.
(5) Whenever and for so long as the
moneys in the Debt Service Fund are at least equal to the
aggregate principal amount of the Bonds and Issued Bonds
and Additional Bonds issued and unpaid, plus the amount of
interest then due and thereafter to become due on the Bonds
and Issued Bonds and Additional Bonds issued and unpaid, no
further payment need be made into the Debt Service Fund.
Section 406. The special account in the operating
Fund known as the "Operation Reserve Account" created by
the First Issue Bond Ordinance shall be continued and main-
tained. The City Council has ascertained and hereby de-
termines that cash and investments amounting in the aggre-
gate to $971,600.39 have been set aside in accordance with
the provisions of the First Issue Bond Ordinance and are
now held in said account and that said sum is more than
twenty-five percentum of the total amount of the Operating
Expenses of the System for the twelve months' period ending
on September 30, 1964. In the event that the moneys held in
said account shall hereafter be less than twenty-five per-
centum of the total amount of the Operating Expenses of the
Systems for any twelve months' period ending on the next
preceding September 30th, the City shall, on or before the
last days of December, March, June and September in each year,
after making the payments for Operating Expenses required
by Section 404 and the payments into the Current Account
and Reserve Account of the Debt Service Fund required by
Section 405, set aside and pay into the operating Reserve
Account, out of any balance of the Revenues remaining in the
Operating Fund, the sum of $16,000.00, or such larger sum
as may hereafter be prescribed by the City Council, until
the moneys held in the Operating Reserve Account shall be
equal to twenty-five percentum of the total amount of the
Operating Expenses of the Systems for the twelve months'
period ending on the next preceding September 30th, after
which no further payment need be made into such account un-
less the moneys therein shall become less than such total
amount, in which event such further payments shall be made
from time to time into said account as may be necessary in
order to make the moneys therein equal to said total amount.
Moneys in said account may be used by the City for the pur-
pose of making any payments required by either Section 404
or Section 405 of this ordinance. Any surplus remaining in
the operating Fund, after making the payments for Operating
Expenses required by Section 404 and the payments into the
Current Account and Reserve Account of the Debt Service Fund
required by Section 405 and the payments into the operation
Reserve Account required by this section, may be used by
the City for any lawful purpose.
Section 407. Moneys in the Current Account of the Debt
Service Fund shall be used by the City for the purpose of
paying or making provision for paying the principal of and
interest on the Bonds or Issued Bonds or Additional Bonds as
such principal and interest fall due. Moneys in the Reserve
Account of the Debt Service Fund shall also be used by the
City for said purpose whenever and to the extent that the
moneys in the Current Account shall be insufficient for said
purpose. All moneys in the Debt Service Fund shall be held
by the City in trust, and they are hereby pledged to and
charged with the payments mentioned in this section.
Section 408. Moneys on deposit to the credit of the
Reserve Account of the Debt Service Fund or the Operation
Reserve Account of the Operating Fund may, in the discretion
of the City Council of the City, be invested in direct obli-
gations of, or obligations the principal and interest of
ARTICLE V.
PARTICULAR COVENANTS OF THE CITY
Section 501. The City covenants and agrees that it
will duly and punctually pay, or cause to be paid, the
principal of all Bonds issued under this ordinance and the
interest thereon, on the dates, at the place and in the
manner set forth in such Bonds and in the coupons thereto
appertaining, and that it will faithfully do and perform
and at all times fully observe any and all covenants, under-
takings, stipulations and provisions contained herein or in
the Bonds at any time outstanding hereunder. Except as in
this ordinance otherwise provided, such principal and inter-
est are payable solely from the Revenues derived from the Sys-
tems, which revenues are hereby pledged to the payment there-
of in the manner and to the extent hereinabove particularly
specified, and nothing in the Bonds or coupons or in this
ordinance shall be construed as pledging the credit/of the
City or as obligating the City, directly or indirectly, or
contingently, to levy a tax therefor.
Section 502. The City covenants that it will at all
times maintain the Systems in good order and condition and
will continuously operate the same, and will, from time to
time, make all proper repairs, renewals and replacements.
Section 503. The City covenants that it will at all
times fix, establish and collect adequate rates and charges
for the services furnished by the Systems, so that the Reve-
nues derived therefrom will at all times be sufficient to
provide funds for paying Operating Expenses as they become
due and payable and for making the payments required by See-
States Government bonds or other marketable securities
eligible as security for the deposit of trust funds under
regulations of the Board of Governors of the Federal Reserve
System, or by indemnity bonds of indemnity companies quali-
fied as security for United States Government deposits, or
as may be required by the applicable laws of the State of
Texas.
ARTICLE VI.
MISCELLANEOUS PROVISIONS
Section 601. If a coupon appertaining to any of the
Bonds shall in any way, before, at or after maturity, be
transferred or pledged separate and apart from the Bond to
which it appertains, such coupon shall not, unless accom-
panied by such Bond, be entitled, in case of default here-
under, to any benefit of or from this ordinance, except
after prior payment in full of the principal of all Bonds
and of all coupons not so transferred or pledged. If the
time for the payment of any coupon appertaining to any of the
Bonds shall be directly or indirectly extended, or the ex-
tension thereof shall be assented to by the City, or the
City shall be a party to or approve of any arrangement for
such extension by purchasing such coupons or in any other
manner, then, anything in this ordinance contained to the
contrary notwithstanding, such coupon so extended shall not
be entitled, in case of default hereunder, to any benefit
of or from this ordinance, except after prior payment in
full of all Bonds outstanding hereunder and of all such
coupons as shall not have been so extended.
Section 602. In consideration of the purchase and ac-
ceptance of the Bonds authorized to be issued hereunder by
those who shall hold the same from time to time, this ordi-
nance shall be deemed to be and shall constitute a contract
between the City and the holders from time to time of such
Bonds; and the covenants and agreements herein set forth
to be performed on behalf of the City shall be for the equal
benefit, protection and security of the holders of any and
all such Bonds and coupons, all of which, regardless of
the time or times of their issue or maturity, shall be
of equal rank without preference, priority or distinction
of any of the Bonds or coupons over any other thereof ex-
cept as expressly provided herein.
Section 603. Except as herein otherwise expressly
provided, nothing in this ordinance is intended or shall
be construed to confer upon any person, firm or corporation,
other than the holders of the Bonds, any right, remedy or
claim, legal or equitable, under or by reason of this or-
dinance, or any covenant, condition or stipulation herein,
this ordinance and all of its covenants, conditions and
stipulations being intended to be for the sole and ex-
clusive benefit of the holders from time to time of the
Bonds.
Section 604. in the event that any one or more of
the provisions of this ordinance shall for any reason be
held to be illegal or invalid, such illegality or invalidity
shall not affect any other provision of this ordinance,
and this ordinance and the Bonds issued pursuant thereto
shall be construed and enforced as if such illegal or in-
valid provision or provisions had not been contained in
this ordinance.
Section 605. All ordinances and resolutions in con-
flict herewith are hereby repealed in so far as they con-
flict herewith.
Section 606. This ordinance shall take effect and
be in full force and effect from and after the date of
its passage.
Mayor of the City of Fort Worth,
Texas
ATTEST:
City Secretary of the City of
Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITY:
City Attorney of the City of
Fort Worth, Texas