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HomeMy WebLinkAboutOrdinance 6635 CITY OF DALLAS ORDINANCE No. 13,565 CITY OF FORT WORTH ORDINANCE No. 6635 — An ordinance passed concurrently by the City Councils, re- spectively, of the Cities of Dallas and Fort Worth, authorizing the issuance of Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1972 in the aggregate principal amount of $112,000,- 000, bearing interest at the rates specified, for the purpose of paying in part the cost of constructing, equipping and otherwise improving the jointly owned Dallas-Fort Worth Regional Airport of the Cities; providing for the form of said bonds and the coupons appertaining thereto; awarding the sale of such bonds to the pur- chisers thereof in accordance with the Contract of Purchase and authorizing the execution of such Contract; authorizing the Dallas- Fort Worth Regional Airport Board to deliver said bonds as herein directed; providing that such bonds are on a parity with the out- standing Dallas-Fort Worth Regional Airport Joint Revenue Bonds, heretofore.issued and sold; adopting pertinent provisions of and supplementing the 1968 Concurrent Bond Ordinance and the Supplemental Regional Airport Concurrent Bond Ordinances which authorized the issuance of said outstanding bonds; providing for the deposit of the proceeds of the Series 1972 Bonds into certain funds of the Joint Airport Fund under and subject to the control of said Board; and directing that due observance of the covenants herein contained be made by the Board; providing a method of amending this ordinance; providing for severability; ordaining other matters incident and relating to the subject and purpose hereof; and declaring an emergency. WHEREAS, pursuant to applicable laws and a contract and agree- ment dated April 15, 1968 (the "Contract and Agreement"), the City Councils, respectively, of the Cities of Dallas and Fort Worth, by an ordinance passed concurrently on November 11, 1968, and November 12, 1968, authorized the issuance of and sold their Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1968, and by ordinances passed concurrently on April 14, 1970, 2 November 2, 1970, February 10, 1971 and August 23, 1971 author- ized the issuance of and sold their Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1970, Series 1970 A, Series 1971, and Series 1971 A, respectively, aggregating $310,000,000 (herein collectively defined as the "Outstanding Bonds"), for the purpose of paying in part the costs of the Dallas-Fort Worth Re- gional Airport; and WHERFAS, in accordance with the Contract and Agreement the City Councils have been requested by the Dallas-Fort Worth Re- gional Airport Board to issue additional joint revenue bonds for such purpose; and WHEREAS, in recognition of their obligation in said ordinance, the said City Councils propose to continue with the financing of the Regional Airport through the issuance of additional joint revenue bonds as contemplated by the Contract and Agreement, and in accordance with the said ordinance and applicable laws including Articles 1269j-5, 1269j-5.1, 1269j-5.2, 46d and 717k-2 of Texas Re- vised Civil Statutes,as amended; and WHEREAS, said ordinances authorizing the Outstanding Bonds permit the issuance of the bonds herein authorized as parity bonds with the Outstanding Bonds; and WHEREAS, it is deemed by the City Councils to be desirable, ap- propriate and necessary to issue additional negotiable revenue bonds for the purpose of providing additional funds for paying in part the costs of the Regional Airport; and WHEREAS, the City Councils have each found and determined as to each that the matters to which this Ordinance relates are mat- ters of imperative public need and necessity in the protection of the health, safety and morals of the citizens of each of the Cities and, as such, that this Ordinance is an emergency measure and 3 shall be effective as to each City respectively upon its adoption by its City Council, and said Meeting was open to the public as re- quired by law; and that public notice of the time, place, and pur- pose of said meeting was given as required by Vernon's Ann. Civ. St. Article 6252-17, as amended. Now, THEREFORE, BE IT OnAnqm By THE Crry COUNCU, OF THE Crry OF DALLAS,Toes: Now, THEREFORE, BE IT ORDAINED By THE Crry COUNCIL OF THE Crry OF Foirr WORTH,TFx4s: I ARTICLE I TITLE, PREAMBLES AND RATIFICATION SECTION 1.1. Short Title. This Ordinance may be cited by the short title, "Fifth Supplemental Regional Airport Concurrent Bond Ordinance." SECTION 1.2. Adoption of Preambles. All of the declarations and findings contained in the preambles of this Ordinance are made a part hereof and shall be fully effective as a part of the ordained subject matter of this Ordinance. SECTION 1.3. Ratiftcation.'AU action heretofore taken (not in- consistent with the provisions hereof) by the Cities, by the Board and by the employees and officers of each directed toward the Regional Airport and the issuance of the bonds herein authorized for that purpose is hereby ratified, approved and confirmed. ARTICLE II DEFINITIONS AND CONSTRUCTION SECTION 2.1. Adoption of Definitions. The definitions set forth in Article II of the 1968 Regional Airport Concurrent Bond Ordinance passed respectively, by the Cities of Dallas and Fort Worth on 4 November 11 and November 12, 1968, are made a part hereof and shall be as fully effective as part of the subject matter of this Ordinance as if repeated in full herein. SEMON 22. Additional Definitions. In addition to the definitions set forth in the said 1968 Regional Airport Concurrent Bond Ordi- nance the terms defined in this Section for all purposes of this Ordinance and of any ordinance amendatory hereof, supplemental or relating hereto, and of any instruments or documents apper- taining hereto, except where the context by clear implication shall otherwise require, shall have the respective meanings herein speci- fied as follows, to-wit: "1968 ORDINANCE" shall mean and refer to the 1968 Re- gional Airport Concurrent Bond Ordinance passed by the City Councils of the Cities, respectively, on November 11, 1968 and November 12, 1968. "1970 ORDINANCE"shall mean and refer to the First Sup- plemental Regional Airport Concurrent Bond Ordinance passed by the City Councils of the Cities on April 14, 1970. "1970 A ORDINANCE" shall mean and refer to the Second Supplemental Regional Airport Concurrent Bond Ordinance passed by the City Councils of the Cities on November 2, 1970. "1971 ORDINANCE" shall mean and refer to the Third Supplemental Regional Airport Concurrent Bond Ordinance passed by the City Councils of the Cities on February 10, 1971. "1971 A ORDINANCE" shall mean and refer to the Fourth Supplemental Regional Airport Concurrent Bond Ordinance passed by the City Councils of the Cities on August 23, 1971. "OUTSTANDING BONDS" shall mean that issue of Dal- las-Fort Worth Regional Airport Joint Revenue Bonds, Series 1968, authorized by the 1968 Ordinance, the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 19701 authorized by the 1970 Ordinance, the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1970 A, author- ized by the 1970 A Ordinance, the Dallas-Fort Worth Re- gional Airport Joint Revenue Bonds, Series 1971, authorized by the 1971 Ordinance and the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1971 A, authorized by the 1971 A Ordinance. "PAYING AGENT" or "PAYING AGENTS" shall mean with respect to the Series 1972 Bonds, National Bank of Commerce of Dallas, Dallas, Texas, The First National Bank of Fort Worth, Fort Worth, Texas, and Morgan Guaranty Trust Company of New York, New York, New York. "REFUNDING BONDS" shall mean any refunding bonds issued pursuant to Section 8.6 of the 1968 Ordinance for the purpose of refunding any Bonds outstanding. "SERIES 1970 BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1970,authorized by the 1970 Ordinance. "SERIES 1970 A BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1970 A, authorized by the 1970 A Ordinance. "SERIES 1971 BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Revenue Bonds,Series 1971,authorized by the 1971 Ordinance. "SERIES 1971 A BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1971 A, authorized by the 1971 A Ordinance. "SERIES 1972 BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1972, herein authorized to be issued and sold. ARTICLE III SEREEs 1972 BONDS SEmoN 3.1. Authorization. So as to protect the public safety and in order to promote and advance the general welfare of the citizens of Dallas and Fort Worth and the North Central Texas Region, it is hereby declared necessary that the Cities issue the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1972 (herein defined as the "Series 1972 Bonds"). For the purpose of paying in part the Costs of the Project, the Cities hereby 6 authorize and direct the issuance of the Series 1972 Bonds in the aggregate principal amount of $112,000,000, payable both as to principal and interest solely out of the revenues, as described, defined and pledged herein. The Series 1972 Bonds are issued as Completion Bonds pursuant to and as permitted by the 1968 Ordinance. SWHON 3.2. Date, Denomination and Maturities. The Series 1972 Bonds shall be dated March 1, 1972, shall be in the denomi- nation of $5,000 each, shall consist of 22,400 bonds numbered in direct numerical order from 1 through 22,400 and shall mature and become due and payable on November 1 in the years and in the amounts as follows: Years Amounts Years Amounts 1979 $1,500,000 1984 $ 2,250,000 1980 1,500,000 1985 1,900,000 1981 1,500,000 1986 1,800,000 1982 2,350,000 — 1983 2,200,000 2002 97,000,000 SEMON 3.3.Interest Rate,Agents. A. The Series 1972 Bonds shall bear interest from their date to their stated maturities or earlier redemption at the following rates: all bonds scheduled to mature in 1979-4.75% per annum; all bonds scheduled to mature in 1980-5-00% per annum; all bonds scheduled to mature in 1981-5.15% per annum; all bonds scheduled to mature in 1982-5.30% per annum; all bonds scheduled to mature in 1983-5.45% per annum; all bonds scheduled to mature in 1984-5.60% per annum; all bonds scheduled to mature in 1985-5.709/0 per annum; all bonds scheduled to mature in 1986-5.75% per annum; all bonds scheduled to mature in 2002-6.25% per annum; 7 such interest to be evidenced by coupons payable on November 1, 1972,and semi-annually thereafter on each May 1 and November 1. B. Both the principal and interest of the Series 1972 Bonds shall be payable to bearer in lawful money of the United States of America without deduction for exchange or collection charges at the principal office of National Bank of Commerce of Dallas, Dal- las, Texas, or at the option of the Holder at The First National Bank of Fort Worth, Fort Worth, Texas, or at Morgan Guaranty Trust Company of New York, New York, New York. SEMON 3.4.Prior Redemption. A. The Series 1972 Bonds maturing November 1, 1979 to 1986, both inclusive, are not subject to redemption prior to stated ma- turities. The Series 1972 Bonds maturing on November 1, 2002, (1) shall be redeemed prior to stated maturity in part by lot on November 1, 1987 and on each November I thereafter from moneys required to be deposited to the credit of the Interest and Sinking Fund at the principal amount thereof and accrued interest to date of redemption, without premium, and (2) may be redeemed prior to stated maturity as a whole on May 1, 1982, and on the first day of any month thereafter, or in part by lot on May 1, 1982, and on any interest payment date thereafter, from other moneys at the principal amount thereof and accrued interest to date of redemp- tion,plus a premium for each bond redeemed as follows: 4%if redeemed on or prior to April 1, 1985; 3% if redeemed thereafter and on or prior to April 1, 1988; 2% if redeemed thereafter and on or prior to April 1, 1990; 1% if redeemed thereafter and on or prior to April 1, 1992; and no premium if redeemed thereafter. B. At least thirty (30) days before the date fixed for any such redemption, the Board, acting on behalf of the Cities, shall cause 8 a written notice of such redemption to be published at least once in a newspaper and a financial publication published in the City of New York, New York. By the date fixed for any such redemption, due provision shall be made with the Paying Agents for the pay- ment of the principal amount of the bonds to be so redeemed, plus any applicable premium thereon, and accrued interest thereon to the date fixed for redemption. If the written notice of redemption is published, and if due provision for payment is made, all as pro- vided above, the bonds, which are to be so redeemed, thereby automatically shall be redeemed prior to maturity, and they shall not bear interest after the date fixed for redemption, and shall not be regarded as being outstanding except for the purpose of re- ceiving the funds so provided for such payment. SEMON3.5. Forms. The form of the Series 1972 Bonds, includ- ing the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each bond, and the form of the interest coupons to be attached to the bonds, shall be respectively substantially as follows, to-wit: (FoRm OF THE SERMS 1972 BoNw) United States of America State of Texas Counties of Dallas and Tarrant DALLAS-FORT WORTH REGIONAL AIRPORT Joint Revenue Bond Series 1972 No. ........................ $5,000 On the 1st day of November, ........, the Cities of Dallas and Fort Worth (herein collectively called the "Cities"), municipal cor- porations duly incorporated under the laws of the State of Texas, 9 for value received, hereby jointly promise to pay to bearer solely from the revenues and funds described herein, the principal sum of FIVE THOUSAND DOLLARS and to pay interest thereon from the date hereof to the maturity or earlier redemption of this bond at the rate of % per annum, payable November 1, 1972, and semi-annually thereafter on each May I and November 1. Both principal and interest shall be pay- able in lawful money of the United States of America upon sur- render of this bond or the proper coupons, as they severally become due at National Bank of Commerce of Dallas, Dallas, Texas, or at the option of the holder at The First National Bank of Fort Worth, Fort Worth, Texas, or at Morgan Guaranty Trust Company of New York, New York, New York without exchange or collection charges to the bearer thereof. The Series 1972 Bonds maturing November 1, 1979 to 1986, both inclusive, are not subject to redemption prior to stated ma- turities. The Series 1972 Bonds maturing on November 1, 2002, (1) shall be redeemed prior to stated maturity in part by lot on November 1, 1987,and on each November 1 thereafter from moneys required to be deposited to the credit of the Interest and Sinking Fund at the principal amount thereof and accrued interest to date of redemption, without premium, and (2) may be redeemed prior to stated maturity -as a whole on May 1, 1982, and on the first day of any month thereafter, or in part by lot on May 1, 1982, and on any interest payment date thereafter, from other moneys at the principal amount thereof and accrued interest to date of redemption, plus a premium for each bond redeemed as follows: 4%if redeemed on or prior to April 1, 1985; 3% if redeemed thereafter and on or prior to April 1, 1988; 2% if redeemed thereafter and on or prior to April 1, 1990; 10 1% if redeemed thereafter and on or prior to April 1, 1992; and no premium if redeemed thereafter. At least thirty (30) days before the date fixed for any such re- demption, the Board, acting on behalf of the Cities, shall cause a written notice of such redemption to be published at least once in a newspaper and a financial publication published in the City.of New York, New York. By the date fixed for any such redemption, due provision shall be made with the paying agents for the pay- ment of the principal amount of the bonds to be so redeemed, plus any applicable premium thereon, and accrued interest thereon to the date fixed for redemption. If the written notice of redemption is published, and if due provision for payment is made, all as pro- vided above, the bonds, which are to be so redeemed, thereby auto- matically shall be redeemed prior to maturity, and they shall not bear interest after the date fixed for redemption, and shall not be regarded as being outstanding except for the purpose of re- ceiving the funds so provided for such payment. The bonds of this series are issued under the laws of the State of Texas and as permitted by an ordinance adopted concurrently on November 11 and November 12, 1968, respectively, by the City Councils of the Cities of Dallas and Fort Worth entitled "1968 Regional Airport Concurrent Bond Ordinance" (the 1968 Ordi- nance) and, together with Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1968, dated November 1, 1968 (the Series 1968 Bonds), Series 1970 Bonds, dated April 1, 1970 (the Series 1970 Bonds), Series 1970 A Bonds dated November 1, 1970 (the Series 1970 A Bonds), Series 1971 Bonds, dated March 1, 1971 (the Series 1971 Bonds) and Series 1971 A Bonds, dated Sep- tember 1, 1971 (the Series 1971 A Bonds) (herein collectively called the Outstanding Bonds) are equally and ratably secured by the revenues herein described. This bond is one of a duly authorized series of bonds dated March 1, 1972, of like tenor and effect, except as to number, interest rate, maturity and right of redemption, numbered from 1 through 22,400 of the denomination of $5,000 each, aggregating $112,000,000, issued by the Cities for the purpose of paying part of the Costs of the Project, such term contemplating and relating to the initial construction phases of the Regional Airport, pursuant to the Fifth Supplemental Regional Airport Concurrent Bond Ordi- nance adopted by the City Councils of said Cities, supplemental to the 1968 Ordinance, the 1970 Ordinance, the 1970 A Ordinance, the 1971 Ordinance and the 1971 A Ordinance. For the purpose of providing for and securing the payment of the Outstanding Bonds and this issue of bonds, the Cities have jointly pledged their re- spective interests in the "Pledged Revenues" to be derived from the ownership and operation of the Dallas-Fort Worth Regional Airport when the same is constructed and becomes operational, and in certain instances a part of the revenues derived from other air- ports of the Cities. Such Pledged Revenues and other revenues will be on deposit from time to time in various funds created by the 1968 Ordinance. Pledged Revenues in the 1968 Ordinance are de- fined to be the "Gross Revenues" of said Airport when constructed less the amount required to pay the Senior Lien Bonds mentioned next below. The lien on the revenues securing this issue of bonds and the then Outstanding Bonds is subordinate to the ben securing various outstanding and future issues of bonds of the Cities defined in said Ordinance as "Senior Lien Bonds." Reference is made to the 1968 Ordinance for the definition of Gross Revenues and for a description of the revenues and funds charged with and pledged to the payment of the interest on and principal of the then Outstand- ing Bonds and the series of bonds of which this bond is one, the nature and extent of the security thereof, a statement of the rights, duties and obligations of each of the Cities respectively, the rights 12 and remedies of bondholders in the event of default thereunder, and the rights and priorities of the holders of said bonds, to all the provisions of which the holder hereof by the acceptance of this bond assents and agrees. As provided in the 1968 Ordinance, the obligations of the Cities to pay money hereon out of Pledged Revenues are joint, and not several, and except as otherwise provided therein no claim, de- mand, suit or judgment shall ever be asserted, entered or collected against or from one City without the other and no individual liability shall ever exceed in the case of Dallas 7/11ths of the total amount thereof, and in the case of Fort Worth 4/11ths of the total amount thereof, and, except as in the 1968 Ordinance otherwise provided, such sums shall be payable and collectible solely from the funds in which Pledged Revenues shall from time to time be on deposit. The 1968 Ordinance, as supplemented, provides that, to the extent therein stated, the Dam-Fort Worth Regional Airport Board, acting on behalf of the Cities, shall fix and shall from time to time revise the rate of compensation for use of and for services rendered by or at the Dallas-Fort Worth Regional Airport which will be fully sufficient to produce Pledged Revenues adequate to pay the operation and maintenance expenses thereof plus 1.25 times the amounts required to be deposited to the credit of the Interest and Sinking Fund (established by the 1968 Ordinance) for the payment of the principal of and interest on the parity bonds from time to time outstanding thereunder as the same shall become due and payable and to timely purchase or redeem such bonds prior to maturity as required therein. It is further provided in said Ordinance that to the extent Pledged Revenues are not ade- quate for said purposes and for the additional purpose of properly and adequately maintaining and operating said Airport, the Cities . 13 pledge and obligate themselves to levy and collect the ad valorem tax defined therein as the "Maintenance Tax," and to devote the proceeds thereof to the purpose of operating and maintaining said Airport in lieu of using revenues for said purpose, subject at all times to the limits of said tax provided by law and in said Ordi- nance. As further provided in said Ordinance, the obligations of the Cities to levy and collect such tax are several, and not joint, and no action, claim, suit or demand shall be made against one City for the default of the other, each City's respective obligation being limited to the collection of its proportionate amount re- quired from said tax for such purposes, all as specified in said Ordinance. Under the terms and conditions provided in the 1968 Ordinance, and in the said supplements thereto, the Cities reserve the right to issue additional Senior Lien Bonds for the purposes therein stated, which said bonds shall be superior as to hen to the then Outstand- ing Bonds and the bonds of this issue, and reserve the further right to issue additional bonds secured by alien on a parity with the then;Outstanding Bonds and this series of bonds under the conditions set forth in said Ordinance and the supplements thereto. The holder hereof shall never have the right to demand pay- ment of this obligation out of any funds raised or to be raised by taxation. It is hereby certified and recited that all acts and things re- quired by the Constitution and laws of the State of Texas to be done, to exist, and to be performed precedent to and in the is- suance of this bond and the issue of which it is one have been done, do exist and have been performed as so required. IN WnWESS WHEREOF, the City Council of the City of Dallas, Texas, has caused the facsimile seal of that City to be placed hereon and this bond to be signed by the facsimile signature of 14 its Mayor and countersigned by the facsimile signature of its City Auditor; and the City of Fort Worth, Texas, has caused the facsimile seal of that City to be placed hereon and this bond to be signed by the facsimile signature of its Mayor, countersigned by the facsimile signature of its City Secretary, and approved as to form by its City Attorney; and each said City Council has caused the attached coupons to be signed by the facsimile signa- tures of the Mayor and City Auditor of the City of Dallas and the Mayor and City Secretary of the City of Fort Worth. Mayor, City of Dallas, Texas COUNMMWGMW: City Auditor, City of Dallas, Texas Mayor, City of Fort Worth, Texas COUNnMWGNW: City Secretary, City of Fort Worth, Texas Apmvm As To FoRm: City Attorney City of Fort Worth, o;;� (FoRm of CoupoN) No. ................ $................ ON THE .................... DAY OF .......I................. 19.... 15 unless due provision has been made for the redemption prior to maturity of the below numbered bond to which this coupon apper- tains, the City of Dallas, Texas, and the City of Fort Worth, Texas, jointly promise to pay to bearer, but solely out of the revenues specified and subject to the conditions stated in said bond, at National Bank of Commerce of Dallas, Dallas, Texas, or at the option of the holder at The First National Bank of Fort Worth, Fort Worth, Texas, or at Morgan Guaranty Trust Com- pany of New York, New Yoik, New York, without exchange or collection charges to the bearer hereof, the sum specified on this coupon, in lawful money of the United States of America, for interest then due on the below numbered bond of the issue entitled "Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1972", dated March 1, 1972. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Bond No. ................. Mayor, City of Dallas, Texas COUNTEPMGMM: City Auditor, City of Dallas, Texas Mayor, City of Fort Worth, Texas COUNMUMMM: City Secretary, City of Fort Worth, Texas 16 (FORM OF COMPTROLLER'S CERTIFICATE) OFFICE OF COMPTROLLER STATE OF TyjcAs I hereby certify that this bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas in accordance with his written approving certificate on file in my office; and that this bond has been by me this day regis- tered as required by law. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas (SEAL) ARTICLE IV EXECUTION,APPROVAL,REGISTRATION, SALE AND DELIVERY OF SERIES 1972 BONDS SECTION 4.1. Method of Execution. Each of the Series 1972 Bonds shall be signed and executed on behalf of the City of Dallas by the facsimile signature of its Mayor and countersigned by the facsimile signature of its City Auditor, and the corporate seal of that City shall be impressed or printed or lithographed on each bond. Each of the Series 1972 Bonds shall be signed and executed on behalf of the City of Fort Worth by the facsimile signature of its Mayor and countersigned by the facsimile signature of its City Secretary; the same shall be approved as to form by the facsimile signature of the City Attorney of the City, and its corporate seal shall be impressed or printed or lithographed upon each bond. 17 The respective signatures of the Mayor and City Auditor of the City of Dallas and of the Mayor and City Secretary of the City of Fort Worth shall be lithographed or printed upon the coupons attached to the Series 1972 Bonds. All facsimile signatures placed upon the bonds and their coupons shall have the same effect as if manually placed thereon, all as provided in Article 717j, Texas Revised Civil Statutes, as amended. SF.moN 4.2. Approval and Registration. The Board is hereby authorized to have control and custody of the Series 1972 Bonds and all necessary records and proceedings pertaining thereto pend- ing their delivery, and the Chairman and officers and employees of the Board and of the Cities are hereby authorized and instructed to make such certifications and to execute such instruments as may be necessary to accomplish the delivery of said bonds and to assure the investigation, examination, and approval thereof by the Attorney General of the State of Texas and their registration by the State Comptroller of Public Accounts. Upon registration of the Series 1972 Bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for him) shall be requested to sign manually the Comptroller's Registration Certificate prescribed herein to be printed and endorsed on each bond and the seal of the Comptroller shall be impressed or printed or lithographed thereon. The Chairman of the Board shall be further authorized to make such agreements with the purchasers of said bonds as may be necessary to assure that the same will be delivered to such purchasers in accordance with the terms of sale at the earliest practicable date after the adoption of this Ordinance. SF.moN 4.3. A. The Sale of the Series 1972 Bonds. The Series 1972 Bonds are hereby sold in accordance with law and shall be delivered 18 to the Underwriters (listed in Schedule I to the Contract of Pur- chase dated March 6, 1972) for whom Merrill Lynch, Pierce, Fenner & Smith Incorporated and F. S. Smithers & Co., Inc., are acting as Managers, at the price of plus accrued interest from March 1, 1972, to date of delivery, and in accordance with the terms and conditions set forth in said Contract of Pur- chase. B. Contract of Purchase. The Contract of Purchase setting forth the terms of the sale of the Series 1972 Bonds to the purchasers thereof referred to in A above is hereby accepted, approved and authorized to be delivered in executed form to the said purchasers. The Contract of Purchase shall be executed on behalf of the City of Dallas by the City Manager with its corporate seal impressed thereon, attested by the City Secretary, countersigned by the City Auditor and approved as to form by the City Attorney. The Con- tract of Purchase shall be executed on behalf of the City of Fort Worth by the City Manager with its corporate seal impressed thereon, attested by the City Secretary, and approved as to form and legality by the City Attorney. ARTICLE V DISPOSITION OF BOND PRoamw SECTION 5.1. A. Interest During Construction. It is hereby found and de- termined that the estimated period of construction of the Project, that is to say the period prior to which the Airport is expected to become revenue producing is twenty months from March 1, 1972, and accordingly the amount equal to the interest to become due on the Series 1972 Bonds during said period is hereby ap- propriated from the proceeds of the sale of the Series 1972 Bonds 19 and ordered to be deposited to the credit of the Interest and Sinking Fund to be used, applied and devoted to the purposes specified in the 1968 Ordinance for moneys on deposit in said Fund. If it shall become necessary to remove or withhold the amount appropriated by this Subsection A from the custody of the Treasurer in order to comply with the requirements of Sec- tion 7.1, then, upon written order of the Director of Finance, that part of the Interest and Sinking Fund containing said amount shall be placed in trust with National Bank of Commerce of Dallas, Dallas, Texas, one of the Paying Agents for the Series 1.972 Bonds. Such portion of the Interest and Sinking Fund thus held by said Paying Agent for the benefit of the holders of the Bonds, and pending its use to pay interest on the Series 1972 Bonds, shall be invested from time to time in investment securities as may be directed by the Board; provided however that no such investment shall be made which will be inconsistent with the re- quirements of Section 7.1. To the extent that this Section is in- consistent with the provisions of the Contract and Agreement, then the Contract and Agreement is hereby amended to accommodate the requirements of this Section. B. Reserve Fund. In accordance with the requirements of the 1968 Ordinance, there is hereby appropriated from the proceeds of the sale of the Series 1972 Bonds and ordered to be deposited into the Reserve Fund, an amount at least equal to the average annual principal (or principal accumulation) and interest require- ments on account of the Series 1972 Bonds. SEmoN 5.2. Construction Fund. Except as otherwise provided in Section 5.1., all proceeds derived from the sale of the Series 1972 Bonds shall be deposited promptly upon the receipt thereof to the credit of the Construction Fund and the moneys within said 20 Fund shall be used solely for the purpose of defraying a part of the Costs of the Project in accordance with the 1968 Ordinance. ARTICLE VI ADOPTION OF PROVISIONS OF 1%8, 1970, 1970A, 1971 AND 1971A ORDINANCES,PLEDGE, INTERESr AND SINKING FUND SECTION 6.1. Adoption. The Series 1972 Bonds authorized here- by are parity"Completion Bonds" as the term is defined and as per- mitted to be issued in the 1968 Ordinance, and in addition to the definitions set forth in Article II of the 1968 Ordinance hereto- fore adopted, for purposes of this Ordinance Section 2.2 of Article II, and Articles V through XI, both inclusive, of the 1968 Ordi- nance and Sections 7.2 and 7.3 of the 1970 Ordinance are hereby adopted by reference and shall be applicable to the Series 1972 Bonds for all purposes, except to the extent hereinafter specifically modified or supplemented. Both the Outstanding Bonds and the 1972 Bonds shall be on a parity in all respects. SEMON 6.2. Pledge. The principal of and the interest on the Series 1972 Bonds and the Outstanding Bonds are and shall be secured by and payable from a first lien on and pledge of the Pledged Revenues and the funds in which they shall from time to time be on deposit. In addition to the Pledged Revenues the Series 1972 Bonds and the Outstanding Bonds are and shall be further secured by and payable from the "Transitional Pledge" as made and described in Section 6.3 of the 1968 Ordinance. Such revenues are hereby irrevocably pledged to the payment of the Outstanding Bonds, the Series 1972 Bonds, any other Completion Bonds and Additional Parity Bonds hereafter issued in accordance with the terms of the 1968 Ordinance until all of the Outstanding Bonds, the Completion Bonds, including the Series 1972 Bonds, and any Additional Parity Bonds are retired. 21 SEMON 6.3. Interest and Sinking Fund. In addition to all other amounts required by the 1968 Ordinance, the 1970 Ordinance, the 1970 A Ordinance, the 1971 Ordinance and the 1971 A Ordinance, so long as any of the Series 1972 Bonds remain outstanding and unpaid the Board shall transfer on or before the 1st day of each month, from the Operating Revenue and Expense Fund to the In- terest and Sinking Fund, after taking into account unexpected investment earnings on deposit in the Interest and Sinking Fund, (1) beginning on October 1, 1973, an amount necessary to provide 1/6th of the amount of interest to become due on the Series 1972 Bonds on the next succeeding interest pay- ment date thereof, provided, however, that no transfers shall be required on such dates to the extent money has been pro- vided from future issues of Completion Bonds to pay the in- terest then becoming due on the Series 1972 Bonds; (2) beginning on October 1, 1978, an amount necessary to provide in twelve equal installments the amount of Principal of the Series 1972 Bonds maturing on November 1 9 each of the twelve month periods ending September 30, 1979, through September 30, 1986;and (3) beginning on' October 1, 1986, and on the 1st day of each month thereafter through September 1, 2002, for each twelve month period ending on September 30, 1/12th of the amounts indicated as follows: 1987 .�..... ...... ... $ 2,300,000 1988 . ........ ... ............ ...... ....... ..................... 2, 1989 ,,.............................. ................. 3, 1990 ....... ..... 3,700,000 1991 ........... ................... .......... ...... 2,950,000 1992 ........... ............... ............ ................. 3,250,000 1993 .�..... ....... .....................__... ............... ..... 3,800," 1994 ..... ...... .............. ................................. ... 4,500,000 1995 .. 4,000,000 1996 _..... ...... ......11-.1.1 4,600,000 1997 ...... __............... . ............ ........... ....... 5,050," 1998 . ..... ........ .........___........ ........... .......... 4,550,000 1999 ...... . .. ...... .... 5,300,000 2000 ........ .... ............ .......... .-......... ..... 5,800,000 2001 . ..... ... 6,900," 2002 ... ............... ... 34,100,000 22 The sinking fund payments required by this sub-paragraph (3) may be used to purchase Series 1972 Bonds as permitted in Section 7.4 of the 1968 Ordinance, and to the extent not so used, shall be used to redeem the Series 1972 Bonds on No- vember 1, 1987, and onleach November 1, thereafter at the principal amount thereof and accrued interest to date of re- demption without premium. If it shall be determined that the annual transfers to the Interest and Sinking Fund required by this sub-paragraph (3) will produce a surplus in the Interest and Sinking Fund at maturity of the Series 1972 Bonds, the annual sinking fund payments required by this sub-paragraph (3) on account of the Series 1972 Bonds may be reduced in approximately equal amounts. SECTION 6.4. The Director of Finance shall make transfers of funds on deposit in the Interest and Sinking Fund for payment of the principal of and interest on the Series 1972 Bonds to National Bank of Commerce of Dallas, Dallas, Texas, on behalf of the Paying Agents at least five (5) days prior to the due dates and redemption dates. ARTICLE VII MISCELLANEOUS COVENANTS AND PROVISIONS SECTION 7.1. Use of Bond Proceeds. The Cities hereby covenant that until such time as permitted by governmental rulings or regu- lations under Section 103 of the Internal Revenue Code of 1954, as amended, the proceeds from the We of any series of Addi- tional Parity Bonds or Completion Bonds, including the Series 1972 Bonds, except such of the proceeds of the issue (1) deposited in the Reserve Fund and (2) deposited in the Construction Fund, will not be used to acquire securities or obligations (other than obligations described in Subsection (a) (1) of said Section 103) that will produce an adjusted yield greater by more than one-half of one percentage point than the adjusted yield of the respective 23 Series of Bonds as such adjusted yields are computed by Part 13 of the Temporary Income Tax Regulations issued November 12, 1970, under the Tax Reform Act of 1969. SFkmoN 7.2. Observance of Covenants. The Board, the officers, employees and agents are hereby directed to observe, comply with and carry out the terms and provisions of this Ordinance. ARTICLE VIII AMENDMENTS TO ORDINANCE This Ordinance may be amended by concurrent ordinances adopted by the City Councils, in the same manner as provided in the 1968 Ordinance for the amendment of the 1968 Ordinance. ARTICLE IX SEvF,RABmrry,REPEAL AND COUNTERPARTS SECTION 9.1. Ordinance Irrepealable. After any of the Series 1972 Bonds shall be issued, this Ordinance shall constitute a contract between the Cities and the Holder or Holders of the Bonds from time to time outstanding, and this Ordinance shall be and re- main irrepealable until the Bonds and the interest thereon shall be fully paid, cancelled, refunded or discharged or provision for the payment thereof shall be made by depositing money in trust with the Paying Agents or another National Banking Association equal in amount to the aggregate principal amount of Bonds outstanding plus interest and any applicable premium to their earliest redemp- tion date, or, if none, to their maturity. SECTION 9.2. Severability. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be in- valid or unenforceable, the invalidity or unenforceability of such 24 Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. If any Section, paragraph, clause or provision of the Contract and Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or un- enforceability of such Section, paragraph, clause or provision shall not affect any of the remaining provisions of the Contract and Agreement, or of any other provisions of this Ordinance not de- pendent directly for effectiveness upon the provision of the Con- tract and Agreement thus declared to be invalid and unenforceable. SEMON 9.3. Repealer. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of any such inconsistency. SEmoN 9.4. Counterparts. This Ordinance may be executed in counterparts, and when duly passed by both Cities, and separate counterparts are duly executed by each City, the Ordinance shall be in hill force and effect. PASSED AND CORRECTLY ENROLLED MARCH 6, 1972. Mayor,City of Dallas, Texas (SEAL) ATmT: City Secretary,City of Dallas, Texas .25 Apmovm As To FoRm: City Attorney,City of Dallas, Texas Passed March 6, 1972. Mayor, City of Fort Worth, Texas (SEAL) An City Secretary, City of Fort Worth, Texas APPR s To FORM AND IZCALrrY: City Attorney, City of Fort Worth, Texas 26 THE STATE OF TEXAS COUNTY OF DALLAS CITY OF DALLAS I, HAROLD G. SHANK, City Secretary of the City of Dallas, Texas, do hereby certify: 1. That the above and foregoing is a true and correct copy of an excerpt from the minutes of the City Council of the City of Dallas, had in regular meeting, March 6, 1972, authorizing the issuance of Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1972 in the aggregate principal amount of $112,000,- 000, which ordinance is duly of record in the minutes of said City Council. 2. That said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17, as amended. WiTNE.ss MY HAND and seal of the City of Dallas, Texas, this day of March, 1972. City Secretary, City of Dallas, Texas (SEAL) 27 THE STATE OF Tmus COUNTY OF TARRANT Crry OF FORT Worm I, Roy A. Bateman, City Secretary of the City of Fort Worth, Texas,do hereby certify: 1. That the above and foregoing is a true and correct copy of Ordinance No. 6635 duly presented and passed by the City Council of the City of Fort Worth, Texas, at a meeting held on March 6, 1972, as same appears of record in the Office of the City Secretary. 2. That said meeting was open to the public, and public notice of the time, place and p e of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17, as amended. WrrNFm My HAND and the Official Seal of the City of Fort Worth, Texas, this the . ...... day of March, 1972. City Secretary, City of Fort Worth, Texas (SEAL)