HomeMy WebLinkAboutOrdinance 7431 SEVENTH SUPPLEMENTAL ORDINANCE
CITY OF DALLAS ORDINANCE
NO.
CITY OF FORT WORTH ORDINANCE
NO.
An ordinance passed concurrently by the City Councils, respectively, of the Cities of Dallas
and Fort Worth, authorizing the issuance of Dallas-Fort Worth Regional Airport Joint Revenue
Refunding Bonds, Series 1976, in the aggregate principal amount of $93,500,000, bearing interest
at the rates specified, for the purpose of refunding certain outstanding Dallas-Fort Worth
Regional Airport Joint Revenue Bonds; providing for the form of said bonds and the coupons
appertaining thereto; awarding the sale of such bonds to the purchasers thereof; 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 outstanding Dallas-Fort Worth Regional Airport Joint
Revenue Bonds heretofore issued and sold and not authorized herein to be refunded; adopting
pertinent provisions of and supplementing the 1968 Regional Airport Concurrent Bond Ordinance
and the Supplemental Regional Airport Concurrent Bond Ordinances which authorized the
issuance of outstanding bonds; providing for the deposit of the proceeds of the Series 1976
Bonds into certain funds and into special escrow funds authorized to be established hereby for
the benefit of certain of the said bonds being refunded; and directing that due observance of the
covenants herein contained be made by the Board; providing methods 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 certain contract and agreement, 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,
November 2, 1970, February 10, 1971, August 23, 1971, March 6, 1972 and October 1, 1973,
authorized the issuance of and sold their Dallas-Fort Worth Regional Airport Joint Revenue
Bonds, Series 1970, Series 1970A, Series 1971, Series 1971A, Series 1972, and Series 1973,
respectively, aggregating $440,150,000 (herein collectively defined as the "Outstanding Bonds"),
for the purpose of paying the costs of the Dallas-Fort Worth Regional Airport; and
WHEREAS, the Cities are empowered by statutes of the State of Texas, viz. 1269j.5.1,
and 46d V.A.C.S. to issue their bonds for the purpose of refunding all or part of the Outstanding
Bonds; and
WHEREAS, said ordinances authorizing the Outstanding Bonds permit the issuance of
Refunding Bonds, on a parity with the Outstanding Bonds, to refund any part or all of the
Outstanding Bonds; and
WHEREAS, in accordance with the Contract and Agreement said City Councils have been
requested by the Dallas-Fort Worth Regional Airport Board to issue additional joint revenue
bonds for such purpose; and
WHEREAS, it is deemed by said City Councils to be desirable, appropriate and necessary
to issue additional negotiable revenue bonds for the purpose of refunding certain of the Out-
standing Bonds; and
SEVENTH SUPPLEMENTAL ORDINANCE
WHEREAS, the City Councils have each found and determined as to each that the matters
to which this Ordinance relates are matters of imperative public need and necessity in the pro-
tection 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 shall be effective as to each City respectively upon
its adoption by its City Council, and the meetings were open to the public as required by law;
and that public notices of the time, place, and purpose of said meetings were given as required
by Article 6252-17, V.A.C.S., as amended.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL. OF THE CITY
OF DALLAS, TEXAS:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
ARTICLE I
TITLE, PREAMBLES AND RATIFICATION
Section 1.1. SHORT TITLE. This Ordinance may be cited by the short title, "Seventh
Supplemental Regional Airport Concurrent Bond Ordinance" or as the "1976 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. RATIFICATION. All action heretofore taken (not inconsistent with the pro-
visions 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 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 November 11 and November 12, 1968, are made a part hereof and
shall be as billy effective as part of the subject matter of this Ordinance as if repeated in full
herein.
Section 2.2. ADDITIONAL DEFINITIONS. In addition to the definitions, set forth in
the said 1968 Regional Airport Concurrent Bond Ordinance, 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 appertaining hereto, except where the
context by clear implication shall otherwise require, shall have the respective meanings herein
specified as follows, to-wit: I
"BOND REGISTRAR" shall mean the state or national bank charged with the responsi-
bility of maintaining the Bond Registration Books for the Series 1976 Bonds, initially
designated as the Mercantile National Bank at Dallas.
"1968 ORDINANCE" shall mean and refer to the 1968 Regional 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 Supplemental Regional Airport
Concurrent Bond Ordinance passed by the City Councils of the Cities on April 14, 1970.
2
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SEVENTH SUPPLEMENTAL ORDINANCE
"1970A 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.
"1971A 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.
111972 ORDINANCE" shall mean and refer to the Fifth Supplemental Regional Airport Con-
current Bond Ordinance passed by the City Councils of the Cities on March 6, 1972.
"1973 ORDINANCE" shall mean and refer to the Sixth Supplemental Regional Airport
Concurrent Bond Ordinance passed by the City Councils of the Cities on October 1, 1973.
"OUTSTANDING BONDS" shall mean that issue of Dallas-Fort Worth Regional Airport
Joint Revenue Bonds, Series 1968, authorized by the 1968 Ordinance, the Dallas-Fort Worth
Regional Airport Joint Revenue Bonds, Series 1970, authorized by the 1970 Ordinance, the
Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1970A, authorized by the
1970A Ordinance, the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series
1971, authorized by the 1971 Ordinance, the Dallas-Fort Worth Regional Airport Joint
Revenue Bonds, Series 1971A, authorized by the 1971A Ordinance, the Dallas-Fort Worth
Regional Airport Joint Revenue Bonds, Series 1972, authorized by the 1972 Ordinance, and
the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1973, authorized by
the 1973 Ordinance.
"PAYING AGENT" or "PAYING AGENTS" shall mean with respect to the Series 1976
Bonds, Mercantile National Bank at Dallas, Dallas, Texas, The Fort Worth National Bank,
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 1968 BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Revenue
Bonds, Series 1968, authorized by the 1968 Ordinance.
"SERIES 1970A BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Reve-
nue Bonds, Series 1970A, authorized by the 1970A Ordinance. '
"SERIES 1973 BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Reve-
nue Bonds, Series 1973, authorized by the 1973 Ordinance.
"SERIES 1976 BONDS" shall mean the Dallas-Fort Worth Regional Airport Joint Revenue
Refunding Bonds, Series 1976, herein authorized to be issued and sold.
ARTICLE M
ME BONDS
Section 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, and the Cities hereby autho-
rize and direct the issuance of the Dallas-Fort Worth Regional Airport Joint Revenue Refunding
Bonds, Series 1976, in the aggregate principal amount of $93,500,000 pursuant to the provisions
of Article 46d and Article 1269j-5.1, V.A.C.S. Of such Series 1976 Bonds, Bonds Numbers 1 to
7,102, both inclusive, shall be issued to refund the Series 1968 Bonds now outstanding in the
aggregate principal amount of $35,000,000, Bonds Numbers 7,103 to 9,740, 'both inclusive, shall
be issued to refund part of the Series 1973 Bonds now outstanding in the aggregate principal
SEVENTH SUPPLEMENTAL ORDINANCE
amount of $18,150,000, and Bonds Numbers 9,741 to 18,700, both inclusive, shall be issued to
refund the Series 1970A Bonds Numbers 2,001 to 10,000, both inclusive, maturing on Novem-
ber 1, 1999, now outstanding in the aggregate principal amount of $40,000,000. It is hereby
officially found and determined that the proceeds of the Series 1976 Bonds will be sufficient, (i)
to provide funds, together with other lawfully available funds, to pay the principal of and the
interest on the Series 1968 Bonds on the date the Series 1976 Bonds are delivered to the pur-
chasers thereof, the redemption date for the Series 1968 Bonds, (H) to provide funds, together
with other lawfully available funds, to pay the principal of and the interest on the Series 1973
Bonds on December 1, 1976, the redemption date for the Series 1973 Bonds, (iii) to provide
funds to pay the principal of the aforementioned Series 1970A Bonds, the redemption premium
thereon, and the interest thereon to November 1, 1981, the redemption date for said Series
1970A Bonds, and (iv) to provide funds to pay the expenses incurred in the issuance, sale and
delivery of the Series 1976 Bonds. The Series 1976 Bonds are issued as Refunding Bonds pursuant
to and as permitted by the 1968 Ordinance, and shall be on a parity with the Outstanding Bonds
remaining outstanding.
Section 3.2. DATE, DENOMINATION AND MATURITIES. The Series 1976 Bonds shall
be dated November 1, 1976, shall be in the denomination of $5,000 each, shall consist of coupon
bonds numbered in direct numerical order from 1 through 18,700, shall be registrable as to
principal only and shall mature and become due and payable on November 1 in the years and in
the amounts as follows:
YEARS AMOUNTS YEARS AMOUNTS
1981 ............................................ $2,200,000 1988 .......................................... $ 4,700,000
1982 ............................................ 2,300,000 1989 .......................................... 4,800,000
1983 ............................................ 2,400,000 1990 .......................................... 5,100,000
1984 ............................................ 2,400,000 1991 .......................................... 6,200,000
1985 ............................................ 2,600,000 1992 .......................................... 6,300,000
1986 ............................................. 2,700,000 1993 .......................................... 2,200,000
1987 ............................................ 4,800,000 1999 .......................................... 44,800,000
Section 3.3. INTEREST RATES; PAYING AGENTS.
A. The Series 1976 Bonds shall bear interest from their date to their stated maturities at
the following rates:
all bonds scheduled to mature in the years 1981 to 1993, both inclusive .. 6 % per annum;
all bonds scheduled to mature in the year 1999 ............................................ 6 Y2% per annum;
such interest to be evidenced by coupons payable on May 1, 1977, and semi-annually thereafter
on each November I and May 1.
B. The principal of the Series 1976 Bonds, unless registered as to principal, and the interest
thereon 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 the Mercantile National
Bank at Dallas, Dallas, Texas, or at the option of the holder at The Fort Worth National Bank,
Fort Worth, Texas, or Morgan Guaranty Trust Company of New York, New York, New York,
and if registered as to principal the principal thereof shall be payable to the registered owner at
the principal office of the Mercantile National Bank at Dallas, Dallas, Texas.
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SEVENTH SUPPLEMENTAL ORDINANCE
Section 3.4. PRIOR REDEMPTION.
A. The Series 1976 Bonds maturing November 1, 1981 to 1986, both inclusive, are not
subject to redemption prior to stated maturities.
The Series 1976 Bonds maturing after November 1, 1986 may be redeemed at the option of
the Cities, from any available moneys, other than moneys on deposit in the Interest and Sinking
Fund, on or after November 1, 1986 as a whole at any time, or in part in inverse order of
maturity and by lot within a maturity, on any interest payment date, at the respective redemp-
tion prices (expressed as percentages of the principal amount) set forth below, together with
accrued interest to the redemption date, to wit:
Period during which redeemed Redemption
(both dates included) price
November 1, 1986—October 21, 1987 .................................................................... 104 %
November 1, 1987—October 31, 1988 .................................................................... 103%%
November 1, 1988—October 31, 1989 .................................................................... 103 %
November 1, 1989—October 31, 1990 .................................................................... 102 Y2%
November 1, 1990—October 31, 1991 .................................................................... 102 %
November 1, 1991—October 31, 1992 .................................................................... 101 %
November 1, 1992 and thereafter.............................................................................. 100 %
B. The Series 1976 Bonds maturing on November 1, 1999, shall be redeemed prior to stated
maturity in part by lot on November I in each of the years 1993 through 1998, from moneys
required by Section 6.3(c) 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.
C. At least thirty (30) days before the date fixed for any such redemption, 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. A similar notice shall be mailed by the Board, postage prepaid, not less than 30 days
prior to the redemption date, to the registered owner of each of the bonds to be redeemed which
is registered as to principal alone, addressed to such owner at the address appearing on the
Bond Registration Books maintained by the Bond Registrar, but failure to mail or receive such
notice, or any defect therein or in the mailing thereof, shall not affect the validity of the proceed-
ings for the redemption of such bonds. By the date fixed for any such redemption, due provision
shall be made with the Paying Agents for the payment 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 provided above, the bonds, which are to he 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
receiving the funds so provided for such payment.
Section 3.5. FORMS. The form of the Series 1976 Bonds, including the form of Registration
Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and
endorsed on each bond, the form of the interest coupons to be attached thereto, and the form of
the Bond registration provision for registration as to principal alone, shall be respectively, sub-
stantially as follows, with such necessary and appropriate variations, omissions and insertions
as permitted or required by this 1976 Ordinance, to-wit:
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SEVENTH SUPPLEMENTAL ORDINANCE
(FORM OF BOND)
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF DALLAS AND TARRANT
DALLAS-FORT WORTH REGIONAL AIRPORT
JOINT REVENUE REFUNDING BOND
SERIES 1976
NO. $5,000
On the 1st day of November, ......... the Cities of Dallas and Fort Worth (herein collec-
tively called the "Cities"), municipal corporations duly incorporated under the laws of the State
of Texas, for value received, hereby jointly promise to pay to bearer hereof, or, if this bond
be registered as to principal, then to the registered owner hereof 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 ........%p per annum, payable May 1, 1977, and semi-annually thereafter
on each November 1 and May 1. The principal of this bond, unless the bond be registered as to
principal alone, and the interest coupons appertaining hereto shall be payable in lawful money of
the United States of America upon surrender of this bond or the proper coupons, as they severally
become due at Mercantile National Bank at Dallas, Dallas, Texas, or at the option of the holder
at The Fort Worth National Bank, Fort Worth, Texas, or at Morgan Guaranty Trust Com-
pany of New York, New York, New York without exchange or collection charges to the bearer
hereof. If this bond be registered as to principal, such principal shall be paid to the registered
owner shown on the Bond Registration Books of the Cities kept by the Bond Registrar (herein-
after defined), without exchange or collection charges to the owner hereof, upon the presentation
and surrender of this bond to the Mercantile National Bank at Dallas, Dallas, Texas.
The Series 1976 Bonds maturing after November 1, 1986 may be redeemed at the option
of the Cities, from any available moneys, other than moneys on deposit in the Interest and
Sinking Fund, on or after November 1, 1986 as a whole at any time, or in part in inverse order
of maturity and by lot within a maturity, on any interest payment date, at the respective redemp-
tion prices (expressed as percentages of the principal amount) set forth below, together with
accrued interest to the redemption date, to wit:
Period during which redeemed Redemption
(both dates included) Price
November 1, 1986—October 31, 1987 .................................................... 104 %
November 1, 1987—October 31, 1988 .................................................... 1031h%
November 1, 1988—October 31, 1989 .................................................... 103 %
November 1, 1989—October 31, 1990 .................................................... 1021h%
November 1, 1990—October 31, 1991 .................................................... 102 %
November 1, 1991—October 31, 1992 .................................................... 101 %
November 1, 1992 and thereafter ............................................................ 100 %
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SEVENTH SUPPLEMENTAL ORDINANCE
The Series 1976 Bonds maturing on November 1, 1999, shall be redeemed prior to stated
maturity in part by lot on November 1 in each of the years 1993 through 1998, 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.
At least thirty (30) days before the date fixed for any such redemption, 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.
A similar notice shall be mailed by the Board, postage prepaid, not less than 30 days prior to
the redemption date, to the registered owner of each of the bonds to be redeemed which is
registered as to principal alone, addressed to such owner at the address appearing on the Bond
Registration Books maintained by the Bond Registrar, but failure to mail or receive such notice,
or any defect therein or in the mailing thereof, shall not affect the validity of the proceedings
for the redemption of such bonds. By the date fixed for any such redemption, due provision
shall be made with the paying agents for the payment 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 provided 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 receiving the funds so provided for such payment.
The Bonds of this series are issued under and pursuant to the laws of the State of Texas
and an ordinance passed 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 Ordinance") and, together with the Dallas-Fort Worth
Reigonal Airport Joint Revenue Bonds, Series 1970, dated April 1, 1970, the Dallas-Fort Worth
Regional Airport Joint Revenue Bonds, Series 1970A, dated November 1, 1970, the Dallas-
Fort Worth Regional Airport Joint Revenue Bonds, Series 1971, dated March 1, 1971, the
Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1971A, dated September 1,
1971, and the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1972, dated
March 1, 1972, (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 November 1, 1976, of like tenor
and effect, except as to number, interest rate, maturity and right of redemption, numbered
from 1 through 18,700 of the denomination of $5,000 each, aggregating $93,500,000, issued by
the Cities for the purpose of refunding the Dallas-Fort Worth Regional Airport Joint Revenue
Bonds, Series 1968, part of the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series
1973 and part of the Dallas-Fort Worth Regional Airport Joint Revenue Bonds, Series 1970A.
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 respective interests in the "Pledged
Revenues" to be derived from the ownership and operation of the Dallas-Fort Worth Regional
Airport. Such pledged Revenues will be on deposit from time to time in various funds created by
the 1968 Ordinance. Pledged Revenues are defined in the 1968 Ordinance to be the "Gross
Revenues" of said Airport 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 Outstanding Bonds
is subordinate to the lien securing outstanding bonds of the City of Fort Worth 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 Outstanding Bonds and the
series of bonds of which this bond is one, the nature and extent of the security thereof, a state-
7
SEVENTH SUPPLEMENTAL ORDINANCE
ment of the rights, duties and obligations of each of the Cities respectively, the rights 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,
demand, 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 col-
lectible 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
Dallas-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 adequate for said purposes and for the
additional purpose of properly and adequately maintaining and operating said Airport, the Cities
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 main-
taining 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 Ordinance. 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 required from
said tax for such purposes, all as specified in said Ordinance.
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.
This bond, until and unless registered as to principal, shall be transferable by delivery and,
at the option of the bearer may be registered as to principal alone on the Bond Registration
Books of the Cities kept by the Mercantile National Bank at Dallas, Dallas, Texas, or its suc-
cessor as Bond Registrar, upon presentation hereof to the Bond Registrar, which shall make
notation of such registration in the registration blanks provided on the back of this bond, and
thereafter this bond may be transferred only upon a duly executed assignment in such form as
shall be satisfactory to the Bond Registrar, such transfer to be made on such Bond Registration
Books and endorsed hereon by the Bond Registrar. Any transfer may be to bearer and thereby
transferability by delivery shall be restored, but this bond shall again be subject to successive
registration and transfers as before. The principal of this bond, if registered, unless registered to
bearer, shall be payable only to or upon the order of the registered owner or his legal representa-
tive. Notwithstanding the registration of this bond as to principal, the interest coupons apper-
taining hereto shall remain payable to bearer and shall continue to be transferable by delivery.
For every transfer, the Bond Registrar may make a charge to the owner of this bond sufficient
to reimburse it for any tax, fee, or governmental charge required to be paid with respect thereto.
Registration of the principal of this bond shall not affect or impair the negotiability of this bond
SEVENTH SUPPLEMENTAL ORDINANCE
or the interest coupons appertaining thereto, which shall at all times be negotiable instruments
within the meaning of the Texas Uniform Commercial. Code.
It is hereby certified and recited that all acts and things required by the Constitution and
laws of the State of Texas to be done, to exist, and to be performed precedent to and in the
issuance of this bond and the issue of which it is one have been done, do exist and have been
performed as so required.
IN WITNESS 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
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 signatures of the Mayor and City
Auditor of the City of Dallas and the Mayor and City Secretary of the City of Fort Worth.
COUNTERSIGNED:
Mayor, City of Dallas, Texas
City Auditor, City of Dallas, Texas
COUNTERSIGNED: Mayor, City of Fort Worth, Texas
City Secretary, City of Fort Worth, Texas
APPRovED As To FORM:
City Attorney, City of Fort Worth, Texas
(FoRm OF COUPON
No. .................... $................
ON THE ................ DAY OF
......................... 19........
unless due provision has been made for the redemption prior to maturity of the below numbered
bond to which this coupon appertains, 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 Mercantile National Bank at Dallas, Dallas, Texas, or at
the option of the holder at The Fort Worth National Bank, Fort Worth, Texas, or at Morgan
Guaranty Trust Company of New York, New York, 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 Refunding Bonds, Series 1976", dated
9
SEVENTH SUPPLEMENTAL ORDINANCE
November 1, 1976. 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
COUNTERSIGNED:
City Auditor, City of Dallas, Texas
Mayor, City of Fort Worth, Texas
COUNTERSIGNED:
City Secretary, City of Fort Worth, Texas
(FORM OF COMPTROLLER'S CERTIFICATE)
OFFICE OF COMPTROLLER
STATE OF TEXAS
I hereby certify that this bond has been examined, certified as to validity and approved by
the Attorney General of the State of Texas in accordance with his written approving certificate
on file in my office; and that this bond has been by me this day registered as required by law.
Witness my signature and seal this
Comptroller.of Public Accounts of
(SEAL) the State of Texas
(FORM OF CERTIFICATE OF REGISTRATION)
(NO WRITING TO BE MADE HEREON EXCEPT BY THE
REGISTRAR DESIGNATED FOR THIS SERIES OF BONDS)
CERTIFICATE OF REGISTRATION
IT IS HEREBY CERTIFIED that, at the request of the holder of the within bond, I have
this day registered it as to principal in the name of such holder as indicated in the registration
blank below, on the books kept by me for such purpose. The principal of this bond shall be
payable only to the registered holder hereof named in the below registration blank or his legal
representative and this bond shall be transferable only on the Bond Registration Books kept by
the Bond Registrar and by an appropriate notation in such registration blank. If the last transfer
recorded on said Bond Registration Books and in the below registration blank shall be to bearer,
the principal of this bond shall be payable to bearer and it shall be in all respects negotiable.
10
SEVENTH SUPPLEMENTAL ORDINANCE
In no case shall negotiability of the coupons attached hereto be affected by any registration
as to principal.
Date of
Name of Registered Holder Registration Signature of Registrar
ARTICLE IV
EXECUTION, APPROVAL, REGISTRATION, SALE
AND DELIVERY OF SERIES 1976 BONDS
Section 4.1. METHOD OF EXECUTION. Each of the Series 1976 Bonds shall be signed
and executed on behalf of the City of Dallas by the facsimile signature of its Mayor and counter-
signed 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 1976 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. 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 1976 Bonds and
the Special Series Bonds. All facsimile signatures placed upon the bonds and their coupons shall
have the same effect as if manually placed thereon, an as provided in Article 717j, V.A.C.S.,
as amended.
Section 4.2. APPROVAL AND REGISTRATION. The Board is hereby authorized to have
control and custody of the Series 1976 Bonds and all necessary records and proceedings pertain-
ing thereto pending 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 1976 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 autho-
rized 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.
Section 4.3.
A. THE SALE OF THE BONDS. The Series 1976 Bonds are hereby sold in accordance
with law and shall be delivered to the Underwriters (listed in Schedule I to the Underwriting
11
............................
SEVENTH SUPPLEMENTAL ORDINANCE
Agreement dated October 20, 1976) for whom Goldman Sachs & Co., Merrill Lynch, Pierce,
Fenner & Smith, Incorporated and Blyth Eastman Dillon & Co., Incorporated are acting as
managers, at the price with respect to Bonds Numbers 1 to 9,740, both inclusive, of 99.107%
of the principal amount thereof, being $48,265,232, and with respect to Bonds Numbers 9,741
to 18,700, both inclusive,at a price of 98.147% of the principal amount thereof,being $43,969,655,
plus accrued interest on the Series 1976 Bonds from November 1, 1976 to date of delivery and
in accordance with the terms and conditions set forth in said Underwriting Agreement.
B. UNDERWRITING AGREEMENT. The Underwriting Agreement setting forth the
terms of the sale of the Series 1976 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 pur-
chasers. The Underwriting Agreement 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, coun-
tersigned by the City Auditor and approved as to form by the City Attorney. The Underwriting
Agreement 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 PROCEEDS
Section 5.1.
The proceeds from the sale of the Series 1976 Bonds, together with available funds herein
provided, shall be applied as follows:
To First National Bank in Dallas, Dallas, Texas, as paying agent for the Series 1968
Bonds—$35,000,000 for the payment of the principal of the Series 1968 Bonds to be
redeemed on the date the Series 1976 Bonds are delivered to the purchasers thereof, and
from the Interest and Sinking Fund, accrued interest on the Series 1968 Bonds to date of
redemption;
To Mercantile National Bank at Dallas, Dallas, Texas, as paying agent for the Series
1973 Bonds and as escrowee under the Dallas-Fort Worth Regional Airport Series 1973
Joint Revenue Bonds Special Escrow Fund created and established with said bank in accor-
dance with the terms of the Dallas-Fort Worth Regional Airport Series 1973 Joint Revenue
Bonds Escrow Agreement dated November 1, 1976— (i) $13,000,000 for payment of part
of the principal of the Series 1973 Bonds called for redemption on December 1, 1976,
(ii) $5,150,000 from the Series 1973 Bonds Mandatory Redemption Reserve Fund estab-
lished within the Capital Improvement Fund, to pay part of the principal of the Series 1973
Bonds so called for redemption, and (iii) accrued interest on the Series 1973 Bonds to date
of redemption from the Interest and Sinking Fund;
To The Fort Worth National Bank, Fort Worth, Texas, as paying agent for the Series
1970A Bonds and as Escrowee under the Dallas-Fort Worth Regional Airport Series 1970A
Joint Revenue Bonds Escrow Fund created and established with the said bank in accor-
dance with the terms of the Dallas-Fort Worth Regional Airport Series 1970A Joint Reve-
nue Bonds Escrow Agreement dated November 1, 1976—sufficient funds to provide for
the purchase of direct obligations of the United States of America in the face amount of
$57,400,000 for the payment of the principal of, the redemption premium on and the interest
to come due on the Series 1970A Bonds to November 1, 1981, the redemption date for the
Series 1970A Bonds; and
To the Board—the balance of the proceeds from the sale of the Series 1976 Bonds
to pay expenses of the issuance of the Series 1976 Bonds to be disbursed upon order of the
Director of Finance.
12
SEVENTH SUPPLEMENTAL ORDINANCE
ARTICLE VI
ADOPTION OF PROVISIONS OF 1968, 1970, 1970A, 1971, 1971A, AND 1972
ORDINANCES, PLEDGE, WMREST AND SINKING FUND
Section 6.1. ADOPTION. The Series 1976 Bonds authorized hereby are parity "Refunding
Bonds" as the term is defined herein and as permitted to be issued in the 1968 Ordinance, and in
addition to the definitions set forth in Article II of the 1968 Ordinance heretofore adopted, for
purposes of this Ordinance Section 2.2 of Article II, and Articles V through XI, both inclusive,
of the 1968 Ordinance and Sections 7.2 and 7.3 of the 1970 Ordinance are hereby adopted by
reference and shall be applicable to the Series 1976 Bonds for all purposes, except to the extent
hereinafter specifically modified or supplemented.
Section 6.2. PLEDGE. The principal of and the interest on the Series 1976 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. Such
revenues are hereby irrevocably pledged to the payment of the Outstanding Bonds, the Series
1976 Bonds and any other Bonds hereafter issued in accordance with the terms of the 1968
Ordinance.
Section 6.3. INTEREST AND SINKING FUND. In addition to all other amounts required
by the 1970 Ordinance, the 1970A Ordinance, the 1971 Ordinance, the 1971A Ordinance, and
the 1972 Ordinance, so long as any of the Series 1976 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 Interest and Sinking Fund, after taking into account unexpended invest-
ment earnings on deposit in the Interest and Sinking Fund,
(a) beginning on December 1, 1976 in equal monthly installments, an amount neces-
sary to provide, on March 1, 1977, the amount of interest to become due on the 1976 Bonds
on May 1, 1977, and beginning on April 1, 1977, an amount necessary to provide 1/6th of
the amount of interest to become due on the 1976 Bonds on the next succeeding interest
payment date.
(b) beginning on October 1, 1980, an amount necessary to provide in twelve equal
installments the amount of principal of the Series 1976 Bonds maturing on November 1
following each of the twelve month periods ending September 30, 1981, through Septem-
ber 30, 1993; and
(c) beginning on October 1, 1992, and on the 1st day of each month thereafter through
September 1, 1999, for each twelve month period ending on September 30, 1/12th of the
amounts indicated, as follows:
1993 .............. $ 4,300,000 1997 .............. 8,200,000
1994 .............. 6,700,000 1998 .............. 5,700,000
1995 .............. 7,800,000 1999 .............. 4,200,000
1996 .............. 7,900,000
The sinking fund payments required by this sub-paragraph (c) may be used to purchase
Series 1976 Bonds as permitted in Section 7.4 of the 1968 Ordinance, and to the extent not
so used, shah be used to redeem prior to stated 'maturity or to pay at final maturity, on
November 1 in each of the years 1993 through 1999, both inclusive, the Series 1976 Bonds
maturing on November 1, 1999, at the principal amount thereof and accrued interest to date
of redemption or maturity without premium. If it shall be determined that the annual trans-
fers to the Interest and Sinking Fund required by this sub-paragraph (c) will produce a
surplus in the Interest and Sinking Fund at maturity of the Series 1976 Bonds, the annual
13
SEVENTH SUPPLEMENTAL ORDINANCE
sinking fund payments required by this sub-paragraph (c) on account of the Series 1976
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 1976 Bonds to
Mercantile National Bank at 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. That the Cities covenant to and with the pur-
chasers of the Series 1976 Bonds that it will make no use of the proceeds of such Bonds at any
time throughout the term of such Bonds which, if such use had been reasonably expected on the
date of delivery of such Bonds to and payment for such Bonds by the purchasers, would have
caused such Bonds to be arbitrage bonds within the meaning of Section 103(d) of the Internal
Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this
covenant the Cities are obligated to comply with the requirements of the aforesaid Section 103(d)
and all applicable and pertinent Department of the Treasury regulations relating to arbitrage
bonds. The Cities further covenant that the proceeds of such Bonds will not otherwise be used
directly or indirectly so as to cause all or any part of such Bonds to be or become arbitrage bonds
within the meaning of the aforesaid Section 103(d), or any regulations or rulings pertaining
thereto.
Section 7.2. RESERVE FUND. At such time as none of the Outstanding Bonds are out-
standing, it shall not be necessary to retain on deposit to the credit of the Reserve Fund more
than the average annual principal and interest requirements of all of the Series 1976 Bonds and
any Bonds issued hereafter then outstanding. Monies in excess of such amount may be with-
drawn and placed in the Operating Revenue and Expense Fund. In addition, whenever moneys
in the Reserve Fund shall be sufficient to retire all Bonds then outstanding and pay the interest
and premium, if any, in respect thereof, moneys on deposit in the Reserve Fund shall be used for
such purposes.
Section 7.3. 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.
Section 7.4. AGREEMENTS WITH AIRLINES. The Cities hereby covenant that the
Letters of Agreement, dated February 9, 1970, as supplemented and amended, between the
Board and eight commercial air carriers (American Airlines, Inc.; Braniff Airways, Inc.; Con-
tinental Air Lines, Inc.; Delta Air Lines, Inc.; Eastern Air Lines Incorporated; Frontier Airlines,
Inc.; Ozark Air Lines, Inc.; and Texas International Airlines, Inc., (collectively called the "Sig-
natory Carriers"), the Passenger Service Special Facilities Agreement, dated as of April 1, 1972,
between the Board and the Signatory Carriers, and the Airport Use Agreements entered into
between the Board and American Airlines, Inc. and between the Board and Delta Air Lines, Inc.,
will not be amended, altered or rescinded in any manner so as to impair the rights or security of
the holders of the Bonds except to the extent the Board's execution of Airport Use Agreements,
in substantially the form entered into with American Airlines, Inc. and Delta Air Lines, Inc.,
with one or all of the remaining Signatory Carriers may supersede the Letters of Agreement.
Section 7.5. SENIOR LIEN BONDS. The Cities each hereby covenant that no additional
Senior Lien Bonds shall be issued.
14
SEVENTH SUPPLEMENTAL 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
SEVERABMITY, REPEAL AND COUNTERPARTS
Section 9.1. ORDINANCE IRREPEALABLE. After any of the Series 1976 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 remain 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.
Section 9.2. SEVERABILITY. If any Section, paragraph, clause or provision of this Ordi-
nance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforce-
ability of such 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 unen-
forceability 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
dependent directly for effectiveness upon the provision of the Contract and Agreement thus
declared to be invalid and unenforceable.
Section 9.3. REPEALER. All orders, resolutions and ordinances, or parts thereof, incon-
sistent herewith are hereby repealed to the extent of any such inconsistency.
Section 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 full force and effect.
PASSED AND CORRECTLY ENROLLED OCTOBER 20, 1976.
'*Mayor, City —of Dallas, Texas
(SEAL)
ATTEST:
I/I
'U NY Secretary, City of Dallas, Texas
16
SEVENTH SUPPLEMENTAL ORDINANCE
APPROVED AS TO FORMdotaUaseTexas
ty Attorn4, tty D ,
Passed October 20, 1976
ayor, Gity of Fort Worth, exas
(SEAT.)
ATTEST:
,
C t.' ecretary, City of Fort Worth, Texas
APPROVED AS TO FORM AND LEGAL2TY:
City Attorney, City of Fort Worth, as
16
SEVENTH SUPPLEMENTAL ORDINANCE
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 special meeting, October 20, 1976,
1976, authorizing the issuance of Dallas-Fort Worth Regional Airport Joint Revenue
Refunding Bonds, Series 1976 in the aggregate principal amount of $93,700,000, 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.
WITNESS MY HAND and seal of the City of Dallas, Texas, this - a day of . .,
r
City Secretary, City of Dallas, Texai
(SEAL)
THE STATE OF TExAs
COUNTY OF TARRANT
CITY OF FORT WORTH
I, JACK W. GREEN, 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. 7 duly
presented and passed by the City Council of the City of Fort Worth, Texas, at a meeting
held on October 20, 1976, 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
purpose of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17,
as amended.
FITNESS MY HAND and the Official Seal of the City of Fort Worth, Texas, this the 900' day
of .R. . .. -?T.. ..., 1976.
City ,ecretary, City of Fort Worth, Texas
(SEAL)
17
m
City of ,Fort Worth, Texas
Mayor and Council Communication
x
DATE REFERENCE SUBJECT: Ordinance Authorizing Iss,uance PAGE
NUMBER and Sale of Series 1976 Regional 1
10/20176 C-3203 Airport Revenue Refunding Bonds and of
Authorizing the underwriting Agreiment.
in Connection with the Sale of the Bonds
The u1 . Airport Roard has proposed that the Dallas/Fort, Worth Regional Air-
port, Revenue Refunding Ronda, Series 1976 be issued and sold October 20, 1976.
The Airport Board et on Wednesday, October, 20, and adopted a resolution
repo ending that the two City Counties issue the Revenue Re `'u lid :nag Bonds
Recommendatioa
It is recomended that an ordinance be adopted by the City Councils, res-
pectively,ely, If the Cities of Dallas and Fort Worth authorizing the issuance
of Dallas/Fort Worth Regional Airport Revenue Refunding Bonds,
Series 1976, in the aggregate principal amount of $92,600,000, for the
purpose of refunding the Series 1966, Series 1973, and part of Series
1970A Dallas/Fort Worth Regional Airport Bonds and authorizing the sale of
such 'bonds in accordance with the terms of the contract of sale.
M.MS
SUBMITTED BY: DISPOSITIO BY COUNCIL; PROCESSED BY
APPROVED [3 OTHER (DESCRI'BF)
` am w ., �. �a� .
CITY SECRETARY
DATE
CITY MANAG ER � , 7