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HomeMy WebLinkAboutOrdinance 12376;. ORDINANCE NO.~~ AN ORDINANCE PROVIDING FOR THE ISSUANCE OF TWENTY-SIX MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS ($26,350,000) OF THE GENERAL PURPOSE BONDS, SERIES 1996, OF THE CITY OF FORT WORTH, TEXAS, BEARING INTEREST AT THE RATES HEREINAFTER SET FORTH, AND PROVIDING FOR THE LEVY, ASSESSMENT AND COLLECTION OF A TAX SUFFICIENT TO PAY THE INTEREST ON SAID BONDS AND TO CREATE A SINKING FUND FOR THE REDEMPTION THEREOF AT MATURITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING THAT THIS ORDINANCE SHALL BE IN FORCE AND EFFECT FROM AND AFTER THE DATE OF ITS PASSAGE. WHEREAS, it is deemed advisable and to the best interest of the City of Fort Worth (the "City" or the "Issuer") that certain general purpose bonds authorized at elections previously held in said City be combined in a single issue and sold at this time, the dates of election, amount of bonds authorized thereat, purpose, amount of bonds previously sold, and the amount now to be sold being as follows AMOUNT DATE OF AMOUNT PREVIOUSLY AMOUNT ELECTION AUTHORIZED PURPOSE SOLD NOW OFFERED May 22, 1982 $ 77,285,000 Street Improvements $ 77,050,000 $ -0- Mazch 22, 1986 115,600,000 Street Improvements 114,725,500 874,500 Mazch 22, 1986 5,750,000 Pub. Safety 5,110,000 -0- Mazch 22, 1986 16,650,000 Park & Rec. Improvements 15,521,500 475,500 July 10, 1990 20,000,000 Street Improvements 16,995,000 3,005,000 November 2, 1993 60,000.000 Street Improvements 7,370.000 21,995.000 $295,285,000 $236,772,000 $26,350,000 WHEREAS, it is deemed advisable and to the best interest of the City that the bonds to be sold pursuant to the aforesaid elections be s old at this time, pursuant to the laws of the State of Texas NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS 1 That the bond or bonds of the City of Fort Worth, Texas (the "City" or the "Issuer") to be called "General Purpose Bonds, Series 1996" ( the "Bonds" or the "Series 1996 Bonds" ), be issued under and by virtue of the Constitution and laws of the State of Texas and the Charter of said City for the following purposes, to- wit Twenty-Five Million Eight Hundred Seventy-Four Thousand Five Hundred Dollars ($25,874,500) for the purpose of constructing permanent street and storm sewer improvements by resurfacing, restructuring and extending the streets, thoroughfares, collectors and storm drains in said City, and related street and storm sewer improvements (1986, 1990 and 1993 elections); and Four Hundred Seventy-Five Thousand Five Hundred Dollars ($475,500) for the purpose of making permanent city improvements by constructing new improvements to the City's park and recreation system facilities, renovating existing facilities and enlarging other facilities, all of which bonds aggregate in principal amount the sum of Twenty-Six Million Three Hundred Fifty Thousand Dollars ($26,350,000) 2 That the Series 1996 Bonds shall be dated January 15, 1996, shall be in the denomination of $5,000 each, or any integral multiple thereof, shall be numbered consecutively from R-1 upward, and shall mature on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule MATURITY DATE MARCH 1 YEARS AMOUNTS ($) YEARS AMOUNTS (S) 1997 1,250,000 2007 1,375,000 1998 350,000 2008 1,375,000 1999 1,375,000 2009 1,375,000 2000 1,375,000 2010 1,375,000 2001 1,375,000 2011 1,375,000 2002 1,375,000 2012 1,375,000 2003 1,375,000 2013 1,375,000 2004 1,375,000 2014 1,375,000 2005 1,375,000 2015 1,375,000 2006 1,375,000 2016 1,375,000 -2- ., 3 That the City reserves the right to redeem the Series 1996 Bonds maturing on or after March 1, 2007, in whole or in part, on March 1, 2006, or on any date thereafter, for the principal amount thereof plus accrued interest thereon to the date fixed for redemption The years of maturity of the Series 1996 Bonds called for redemption at the option of the City prior to stated maturity shall be selected by the City The Series 1996 Bonds or portions thereof redeemed within a maturity shall be selected by lot or other method by the Paying Agent/Registrar (hereinafter defined), provided, that during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Series 1996 Bonds, if fewer than all of the Series 1996 Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Series 1996 Bonds of such maturity and bearing such interest rate shall be selected in accordance with the arrangements between the City and the securities depository At least 30 days prior to the date fixed for any such redemption the City shall cause (i) a written notice of such redemption to be deposited in the United States Mail, first-class postage prepaid, addressed to each such registered owner at his address shown on the Registration Books (hereinafter defined) of the Paying Agent/Registrar and (ii) notice of such redemption to be published one (1) time in a financial journal or publication of general circulation in the United States of America carrying as a regular feature notices of municipal bonds called for redemption; provided however, that the failure to send, mail, or receive such notice described in (i) above, or any defect therein or in the -3- sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Series 1996 Bond, and it is hereby specifically provided that the publication of notice described in (ii) above shall be the only notice actually required in connection with or as a prerequisite to the redemption of any Series 1996 Bonds By the date fixed for any such redemption, due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Series 1996 Bonds or the portions thereof which are to be so redeemed, plus accrued interest thereon to the date fixed for redemption If such notice of redemption is given, and if due provision for such payment is made, all as provided above, the Series 1996 Bonds or the portions thereof which are to be so redeemed, thereby automatically shall be redeemed prior to their scheduled maturities, and shall not bear interest after the date fixed for their redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment The Paying Agent/Registrar shall record in the registration books all such redemptions of principal of the Series 1996 Bonds or any portion thereof If a portion of any Series 1996 Bond shall be redeemed a substitute Series 1996 Bond or Series 1996 Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to the -4- unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in this Ordinance In addition to the foregoing, the City shall cause the Paying Agent/Registrar to give notice of any such redemption in the manner set forth in Section 5(h) hereof The failure to cause such notice to be given, however, or any defect therein, shall not affect the validity or effectiveness of such redemption 4 That the Series 1996 Bonds scheduled to mature during the years, respectively, set forth below shall bear interest at the following rates per annum Bonds maturing in the year 1997, o Bonds maturing in the year 1998, Bonds maturing in the year 1999, Bonds maturing in the year 2000, Bonds maturing in the year 2001, Bonds maturing in the year 2002, Bonds maturing in the year 2003, Bonds maturing in the year 2004, Bonds maturing in the year 2005, Bonds maturing in the year 2006, Bonds maturing in the year 2007, Bonds maturing in the year 2008, Bonds maturing in the year 2009, Bonds maturing in the year 2010, Bonds maturing in the year 2011, Bonds maturing in the year 2012, Bonds maturing in the year 2013, Bonds maturing in the year 2014, Bonds maturing in the year 2015, Bonds maturing in the year 2016, Said interest shall be payable to the registered owner of any such Series 1996 Bond in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance 5 (a) The City shall keep or cause to be kept at the designated corporate trust office in Dallas, Texas (the "Designated -5- .~ Trust Office") of Texas Commerce Bank National Association (the "Paying Agent/Registrar"), or such other bank, trust company, financial institution, or other agency named in accordance with the provisions of (g) below, books or records of the registration and transfer of the Series 1996 Bonds (the "Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations under such reasonable regulations as the City and Paying Agent/Registrar may prescribe, and the Paying Agent/Registrar shall make such transfers and registrations as herein provided It shall be the duty of the Paying Agent/Registrar to obtain from the registered owner and record in the Registration Books the address of such registered owner of each bond to which payments with respect to the Series 1996 Bonds shall be mailed, as herein provided The City or its designee shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity Registration of each Series 1996 Bond may be transferred in the Registration Books only upon presentation and surrender of such bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing the assign- ment of such bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and the right of -6- such assignee or assignees to have such bond or any such portion thereof registered in the name of such assignee or assignees Upon the assignment and transfer of any Series 1996 Bond or any portion thereof, a new substitute bond or bonds shall be issued in exchange therefor in the manner herein provided (b) The entity in whose name any Series 1996 Bond shall be registered in the Registration Books at any time shall be treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such bond shall be overdue, and the City and the Paying Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on account of, the principal of, premium, if any, and interest on any such bond shall be made only to such registered owner All such payments shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid. (c) The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Series 1996 Bonds, and to act as its agent to exchange or replace Series 1996 Bonds, all as provided in this Ordinance The Paying Agent/Registrar shall keep proper records of all payments made by the City and the Paying Agent/Registrar with respect to the Series 1996 Bonds, and of all exchanges thereof, and all replacements thereof, as provided in this Ordinance (d) Each Series 1996 Bond may be exchanged for fully registered bonds in the manner set forth herein Each bond issued and delivered pursuant to this Ordinance, to the extent of the unredeemed principal amount thereof, may, upon surrender thereof at -7- the Designated Trust Office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, at the option of the registered owner or such assignee or assignees, as appropriate, be exchanged for fully registered bonds, without interest coupons, in the form prescribed in the FORM OF BOND set forth in this Ordinance, in the denomination of $5,000, or any integral multiple thereof (subject to the requirement hereinafter stated that each substitute bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unredeemed principal amount of any Series 1996 Bond or Series 1996 Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be If a portion of any Series 1996 Bond shall be redeemed prior to its scheduled maturity as provided herein, a substitute bond or bonds having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation If any Series 1996 Bond or portion thereof is assigned and transferred, each bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the bond for which it is being exchanged Each -8- substitute bond shall bear a letter and/or number to distinguish it from each other bond The Paying Agent/Registrar shall exchange or replace Series 1996 Bonds as provided herein, and each fully registered bond or bonds delivered in exchange for or replacement of any Series 1996 Bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Series 1996 Bonds for all purposes of this Ordinance, and may again be exchanged or replaced It is specifically provided, however, that any Series 1996 Bond delivered in exchange for or replacement of another Series 1996 Bond prior to the first scheduled interest payment date on the Series 1996 Bonds (as stated on the face thereof) shall be dated the same date as such Series 1996 Bond, but each substitute bond so delivered on or after such first scheduled interest payment date shall be dated as of the interest payment date preceding the date on which such substitute bond is delivered, unless such substitute bond is delivered on an interest payment date, in which case it shall be dated as of such date of delivery, provided, however, that if at the time of delivery of any substitute bond the interest on the bond for which it is being ex- changed has not been paid, then such substitute bond shall be dated as of the date to which such interest has been paid in full On each substitute bond issued in exchange for or replacement of any Series 1996 Bond or Series 1996 Bonds issued under this Ordinance there shall be printed thereon a Paying Agent/Registrar's Authentication Certificate, in the form hereinafter set forth in the FORM OF BOND set forth in this Ordinance An authorized representative of the Paying Agent/Registrar shall, before the -9- delivery of any such substitute bond, date such substitute bond in the manner set forth above, and manually sign and date such Certificate, and no such substitute bond shall be deemed to be issued or outstanding unless such Certificate is so executed The Paying Agent/Registrar promptly shall cancel all Series 1996 Bonds surrendered for exchange or replacement. No additional ordinances, orders, or resolutions need be passed or adopted by the City Council or any other body or person so as to accomplish the fore- going exchange or replacement of any Series 1996 Bond or portion hereof, and the Paying Agent/Registrar shall provide for the printing, execution, and delivery of the substitute bonds in the manner prescribed herein, and said bonds shall be of type composition printed on paper with lithographed or steel engraved borders of customary weight and strength Pursuant to Article 717k-6, V A T C S and particularly Section 6 thereof, the duty of exchange or replacement of any Series 1996 Bond as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of said Paying Agent/Registrar's Authentication Certificate, the exchanged or replaced bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Series 1996 Bonds which originally were delivered pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts Neither the City nor the Paying Agent/Registrar shall be required (1) to issue, transfer, or exchange any bond during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of bonds and ending at the close of business -10- on the day of such mailing, or (2) to transfer or exchange any bond so selected for redemption in whole when such redemption is scheduled to occur within 30 calendar days. (e) All Series 1996 Bonds issued in exchange or replacement of any other Series 1996 Bond or portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Series 1996 Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be exchanged for other Series 1996 Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Series 1996 Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORM OF BOND set forth in this Ordinance (f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees and charges for making transfers of Series 1996 Bonds, but the registered owner of any Series 1996 Bond requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto The registered owner of any Series 1996 Bond requesting any exchange shall pay the Paying Agent/Registrar's reasonable and standard or customary fees and charges for exchanging any such bond or portion thereof, together with any taxes or governmental charges required to be paid with respect thereto, all as a condition precedent to the exercise of such privilege of exchange, except, however, that in the case of the exchange of an assigned and transferred bond or bonds or any portion or portions thereof in any integral multiple of $5,000, and -11- a in the case of the exchange of the unredeemed portion of a Series 1996 Bond which has been redeemed in part prior to maturity, as provided in this Ordinance, such fees and charges will be paid by the City In addition, the City hereby covenants with the registered owners of the Series 1996 Bonds that it will (i) pay the reasonable and standard or customary fees and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of and interest on the Series 1996 Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer or registration of Series 1996 Bonds solely to the extent above provided, and with respect to the exchange of Series 1996 Bonds solely to the extent above pro- vided (g) The City covenants with the registered owners of the Series 1996 Bonds that at all times while the Series 1996 Bonds are outstanding the City will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Series 1996 Bonds under this Ordinance, and that the Paying Agent/- Registrar will be one entity The City reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 60 days written notice to the Paying Agent/Registrar In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that promptly it will appoint a competent and legally qualified national or state banking institution which shall be a corporation organized -12- and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers, subject to supervision or examination by federal or state authority, and whose qualifications substantially are similar to the previous Paying Agent/Registrar to act as Paying Agent/ Registrar under this Ordinance Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Series 1996 Bonds, to the new Paying Agent/Registrar designated and appointed by the City Upon any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Series 1996 Bonds, by United States Mail, postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar (h) (i) In addition to the manner of providing notice of redemption of Series 1996 Bonds as set forth in this Ordinance, the Paying Agent/Registrar shall give notice of redemption of Series 1996 Bonds by United States Mail, first-class postage prepaid, at least thirty (30) days prior to a redemption date to each registered securities depository and to any national information service that disseminates redemption notices In addition, in the -13- event of a redemption caused by an advance refunding of the Series 1996 Bonds, the Paying Agent/Registrar shall send a second notice of redemption to the persons specified in the immediately preceding sentence at least thirty (30) days but not more than ninety (90) days prior to the actual redemption date. Any notice sent to the registered securities depositories or such national information services shall be sent so that they are received at least two (2) days prior to the general mailing or publication date of such notice The Paying Agent/Registrar shall also send a notice of prepayment or redemption to the owner of any Series 1996 Bond who has not sent the Series 1996 Bonds in for redemption sixty (60) days after the redemption date (ii) Each redemption notice, whether required in the FORM OF BOND or otherwise by this Ordinance, shall contain a description of the Series 1996 Bonds to be redeemed, including the complete name of the Series 1996 Bonds, the series, the date of issue, the interest rate, the maturity date, the CUSIP number, if any, the certificate numbers, the amounts called of each certificate, the publication and mailing date for the notice, the date of redemption, the redemption price, the name of the Paying Agent/ Registrar and the address at which the Series 1996 Bond may be redeemed including a contact person and telephone number (iii} All redemption payments made by the Paying Agent/Registrar to the registered owners of the Series 1996 Bonds shall include CUSIP numbers relating to each amount paid to such registered owner 6 The form of all Series 1996 Bonds, including the form of -14- the Comptroller's Registration Certificate to accompany the Series 1996 Bonds on the initial delivery thereof, the form of Paying Agent/Registrar's Authentication Certificate, and the Form of Assignment to be printed on each of the Series 1996 Bonds, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance - NO FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF TARRANT AND DENTON CITY OF FORT WORTH, TEXAS GENERAL PURPOSE BOND SERIES 1996 MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP January 15, 1996 ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF FORT WORTH, TEXAS (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to or to the registered assignee hereof (either being hereinafter called the "registered owner") the principal amount of DOLLARS and to pay interest thereon, from the Original Issue Date specified above, to the maturity date specified above, or the date of its redemption prior to scheduled maturity, at the rate of interest per annum specified above, with said interest being payable on March 1, 1997, and semiannually on each September 1 and March 1 thereafter, -15- except that if the Paying Agent/Registrar's Authentication Certif- icate appearing on the face of this Bond is dated later than March 1, 1997, such interest is payable semiannually on each September 1 and March 1 following such date THE TERMS AND PROVISIONS of this Bond are continued on the reverse side hereof and shall for all purposes have the same effect as though fully set forth at this place *THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or redemption prior to maturity at the designated corporate trust office in Dallas, Texas (the "Designated Trust Office"), of Texas Commerce Bank National Association, which is the "Paying Agent/Registrar" for this Bond The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof as shown by the Registration Books kept by the Paying Agent/Registrar at the close of business on the 15th day of the month next preceding such interest payment date by check, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the regis- tered owner hereof at its address as it appears on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described -16- Any accrued interest due at maturity or upon redemption of this Bond prior to maturity as provided herein shall ~~-'laid to the registered owner upon presentation and surrender of this Bond for • redemption and payment at the Designated Trust Office of the Paying Agent/Registrar The Issuer covenants with the registered owner of this Bond that no later than each principal payment and/or interest payment date for this Bond it will make available to the Paying Agent/Registrar from the Interest and Redemption Fund as defined by the ordinance authorizing the Bonds (the "Ordinance") the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due *IN THE EVENT OF A NON-PAYMENT of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each registered owner of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the last business day next preceding the date of mailing of such notice *IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Paying -17- Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due Notwithstanding the foregoing, during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, any payment to the securities depository, or its nominee or registered assigns, shall be made in accordance with existing arrangements between the Issuer and the securities depository *THIS BOND is one of a Series of Bonds of like tenor and effect except as to number, principal amount, interest rate, maturity and option of redemption, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $26,350,000, for the following purposes, to-wit improving and extending streets, thoroughfares and storm drains within the City of Fort Worth, Texas, in the amount of $25,874,500; and $475,500 for parks and recreation improvements *ON MARCH 1, 2006, or on any date thereafter, the Bonds of this Series maturing on March 1, 2007 and thereafter may be redeemed prior to their scheduled maturities, at the option of the Issuer, in whole, or in part, at par and accrued interest to the date fixed for redemption The years of maturity of the Bonds called for redemption at the option of the City prior to stated maturity shall be selected by the City The Bonds or portions thereof redeemed within a maturity shall be selected by lot or -18- other method by the Paying Agent/Registrar; provided, that during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, if fewer than all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity and bearing such interest rate shall be selected in accordance with the arrangements between the Issuer and the securities depository *AT LEAST 30 days prior to the date fixed for any such redemp- tion (a) a written notice of such redemption shall be given to the registered owner of each Bond or a portion thereof being called for redemption by depositing such notice in the United States mail, first class postage prepaid, addressed to each such registered owner at his address shown on the Registration Books of the Paying Agent/Registrar and (b) notice of such redemption shall be published one (1) time in a financial journal or publication of general circulation in the United States of America carrying as a regular feature notices of municipal bonds called for redemption; provided, however, that the failure to send, mail, or receive such notice described in (a) above, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond, and the Ordinance provides that the publication of notice as described in (b) above shall be the only notice actually required in connection with or as a prerequisite to the redemption of any Bond By the date fixed for any such redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the -19- portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption If such notice of redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion hereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds pro- vided for such payment The Paying Agent/Registrar shall record in the Registration Books alI such redemptions of principal of this Bond or any portion hereof If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denomina- tions in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Ordinance *ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000 As provided in the Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be assigned, transferred, and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable -20- to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this Bond to the Paying Agent/Registrar at its Designated Trust Office for cancellation, all in accordance with the form and procedures set forth in the Ordinance Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered The form of Assignment printed or endorsed on this Bond may be executed by the registered owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the registered owner The one requesting such exchange shall pay the Paying Agent/Registrar's reasonable standard or customary fees and charges for exchanging any Bond or portion thereof The foregoing notwithstanding, in the case of the exchange of a portion of a Bond which has been redeemed prior to maturity, as provided herein, and in the case of the exchange of an -21- assigned and transferred Bond or Bonds or any portion or portions thereof, such fees and charges of the Paying Agent/Registrar will be paid by the Issuer. In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, or exchange as a condition precedent to the exercise of such privilege In any circumstance, neither the Issuer nor the Paying Agent/Registrar shall be required (1} to make any transfer or exchange during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of bonds and ending at the close of business on the day of such mailing, or (2) to transfer or exchange any Bonds so selected for redemption when such redemption is scheduled to occur within 30 calendar days *WHENEVER the beneficial ownership of this Bond is determined by a book entry at a securities depository for the Bonds, the foregoing requirements of holding, delivering or transferring this Bond shall be modified to require the appropriate person or entity to meet the requirements of the securities depository as to registering or transferring the book entry to produce the same effect *IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will cause. written notice thereof to be mailed to the registered owners of the Bonds -22- *IT IS HEREBY CERTIFIED AND RECITED that the issuance of this Bond, and the series of which it is a part, is duly authorized by law; that the bonds issued for the permanent improvements heretofore described were approved by a vote of the resident, qualified electors of the City of Fort Worth, Texas, voting at elections held for that purpose within said City on March 22, 1986, July 10, 1990, and November 2, 1993; that all acts, conditions and things required to be done precedent to and in the issuance of this series of bonds, and of this Bond, have been properly done and performed and have happened in regular and due time, form and manner as required by law; that sufficient and proper provision for the levy and collection of taxes has been made, which, when collected, shall be appropriated exclusively to the payment of this Bond and the series of which it is a part; and that the total indebtedness of said City of Fort Worth, Texas, including the entire series of bonds of which this is one, does not exceed any constitutional, statutory or charter limitation *BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Ordinance constitute a contract between each registered owner hereof and the Issuer IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile signature of the Mayor Pro-Tem of said City, attested -23- with the manual or facsimile signature of the City Secretary and approved as to form and legality with the manual or facsimile signature of the City Attorney, and the official seal of the Issuer has been duly affixed to, or impressed, or placed in facsimile, on this Bond ATTEST xxxxxxxxxxxxxx City Secretary xxxxxxxxxxxx Mayor Pro-Tem APPROVED AS TO FORM AND LEGALITY xxxxxxxx City Attorney (SEAL) FORM OF PAYING AGENT/REGI T 'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the proceedings adopted by the Issuer as described in the text of this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas Dated TEXAS COMMERCE BANK NATIONAL ASSOCIATION, Paying Agent/Registrar By Authorized Representative -24- n *~'ORM OF_ASSIGNMENT ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto Please insert Social Security or Taxpayer Identification Number of Transferee / / (Please print or typewrite name and address, including zip code of Transferee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises Dated Signature Guaranteed NOTICE Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company NOTICE The signature above must correspond with the name of the Registered Owner as it appears upon the front of this Bond in every particular, without alteration or enlarge- ment or any change whatsoever -25- ** FORM OF COMPTROLLER'S CERTIFICATE (ATTACHED TO THE BONDS UPON INITIAL DELIVERY THEREOF) OFFICE OF COMPTROLLER REGISTER NO STATE OF TEXAS I hereby certify that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this Bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding obligation of the City of Fort Worth, Texas, payable in the manner provided by and in the ordinance authorizing same, and said Bond has this day been registered by me WITNESS MY HAND and seal of office at Austin, Texas Comptroller of Public Accounts of the State of Texas (SEAL) NOTE TO PRINTER *¶s to be on reverse side of bond **¶ not to be on bond The printer of the Series 1996 Bonds is hereby authorized to print on the Series 1996 Bonds (i) the form of bond counsel's opinion relating to the Series 1996 Bonds, and (ii) an appropriate statement of insurance furnished by a municipal bond insurance company providing municipal bond insurance, if any, covering all or any part of the Series 1996 Bonds 7 That a special fund or account, to be designated the "City of Fort Worth, Texas Series 1996 Bonds Interest and Redemption -26- Fund" is hereby created and shall be established and maintained by said City at its official depository bank Said Interest and Redemption Fund shall be kept separate and apart from all other funds and accounts of said City, and shall be used only for paying the interest on and principal of the Series 1996 Bonds All taxes levied and collected for and on account of the Series 1996 Bonds shall be deposited, as collected, to the credit of said Interest and Redemption Fund. During each year while any of the Series 1996 Bonds is outstanding and unpaid, the City Council of said City shall compute and ascertain the rate and amount of ad valorem tax, based on the latest approved tax rolls of said City, with full allowances being made for tax delinquencies and costs of tax collections, which will be sufficient to raise and produce the money required to pay the interest on the Series 1996 Bonds as such interest comes due, and to provide a sinking fund to pay the principal of the Series 1996 Bonds as such principal matures, but never less than 2% of the original principal amount of the Series 1996 Bonds as a sinking fund each year Said rate and amount of ad valorem tax is hereby ordered to be levied and is hereby levied against all taxable property in said City for each year while any of the Series 1996 Bonds is outstanding and unpaid, and said ad valorem tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Redemption Fund Said ad valorem taxes necessary to pay the interest on and principal of the Series 1996 Bonds, as such interest comes due, and such principal matures, are hereby pledged for such purpose, within the limit prescribed by law -27- 8 (a) In the event any outstanding Series 1996 Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Series 1996 Bond, in replacement for such Series 1996 Borid in the manner hereinafter provided. (b) Application for replacement of damaged, mutilated, lost, stolen, or destroyed Series 1996 Bonds shall be made to the Paying Agent/Registrar In every case of loss, theft, or destruction of a Series 1996 Bond, the applicant for a replacement bond shall furnish to the City and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto Also, in every case of loss, theft, or destruction of a Series 1996 Bond, the applicant shall furnish to the City and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Series 1996 Bond, as the case may be In every case of damage or mutilation of a Series 1996 Bond, the applicant shall surrender to the Paying Agent/Registrar for cancellation the Series 1996 Bond so damaged or mutilated (c) Notwithstanding the foregoing provisions of this Section, in the event any such Series 1996 Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Series 1996 Bond, the City may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated -28- Series 1996 Bond) instead of issuing a replacement Series 1996 Bond, provided security or indemnity is furnished as above provided in this Section (d) Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the owner of such Series 1996 Bond with all legal, printing, and other expenses in connection therewith Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Series 1996 Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen, or destroyed Series 1996 Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Series 1996 Bonds duly issued under this Ordinance (e) In accordance with Section 6 of Vernon's Ann Tex Civ St Art 717k-6, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of further action by the governing body of the City or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, subject to the conditions imposed by this Section 8 of this Ordinance, and the Paying Agent/Registrar shall authenticate and deliver such bonds in the form and manner and with the effect, as provided in Section 5(d) of this Ordinance for Series 1996 Bonds issued in exchange for other Series 1996 Bonds 9 That the City Manager of the City is hereby authorized to have control of the Series 1996 Bonds and all necessary records and -29- proceedings pertaining to the Series 1996 Bonds pending their delivery and their investigation, examination and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas Upon registration of the Series 1996 Bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate accompanying the Series 1996 Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each such certificate 10 That the sale of the Series 1996 Bonds to at a price of par and accrued interest on the Bonds to the date of delivery, is hereby authorized, ratified and confirmed The Series 1996 Bonds were sold pursuant to the terms of a "Notice of Sale and Bidding Instructions", "Official Bid Form" and "Official Statement", the use of which documents, a true and correct copy of each such document is attached hereto, is hereby approved 11 That the Issuer covenants to take any action to assure, or refrain from any action which would adversely affect, the treatment of the Series 1996 Bonds as obligations described in section 103 of the Internal Revenue Code of 1986 (the "Code"), the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation In furtherance thereof, the Issuer covenants as follows (a) to take any action to assure that no more than 10 percent of the proceeds of the Series 1996 Bonds or the -30- projects financed therewith (less amounts deposited to a reserve fund, if any) are used for any "private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are so used, that amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Series 1996 Bonds, in contravention of section 141 (b) (2) of the Code; (b) to take any action to assure that in the event that the "private business use" described in subsection (a) hereof exceeds 5 percent of the proceeds of the Series 1996 Bonds or the projects financed therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Series 1996 Bonds (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (d) to refrain from taking any action which would otherwise result in the Series 1996 Bonds being treated as -31- "private activity bonds" within the meaning of section 141(b) of the Code; (e) to refrain from taking any action that would result in the Series 1996 Bonds being "federally guaranteed" within the meaning of section 149 (b) of the Code; (f) to refrain from using any portion of the proceeds of the Series 1996 Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Series 1996 Bonds, other than investment property acquired with -- (1) proceeds of the Series 1996 Bonds invested for a reasonable temporary period of 3 years or less until such proceeds are needed for the purpose for which the bonds are issued, (2) amounts invested in a bona fide debt service fund, within the meaning of section 1 148-1 (b) of the Treasury Regulations, and (3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the proceeds of the Series 1996 Bonds; (g) to otherwise restrict the use of the proceeds of the Series 1996 Bonds or amounts treated as proceeds of the Series 1996 Bonds, as may be necessary, so that the Series 1996 Bonds do not otherwise contravene the requirements of section 148 of -32- the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance refundings) ; and (h) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Series 1996 Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings", within the meaning of section 148 (f) of the Code and to pay to the United States of America, not later than 60 days after the Series 1996 Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148 (f) of the Code For purposes of the foregoing clauses (a) and (b) above, the Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of a refunding bond, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of the issuance of the Bonds It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the U S Department of the Treasury pursuant thereto In the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Bonds -33- under section 103 of the Code In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Bonds under section 103 of the Code In furtherance of the foregoing, the Mayor, the City Manager, any Assistant City Manager, and the Director of Fiscal Services may execute any certificates or other reports required by the Code and to make such elections, on behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds In order to facilitate compliance with the above clause (h), a "Rebate Fund" is hereby established by the City for the sole benefit of the United States of America, and such Rebate Fund shall not be subject to the claim of any other person, including without limitation the registered owners of the Bonds. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code 12 (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below "MSRB" means the Municipal Securities Rulemaking Board. "MRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. -34- "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (b) Annual Reports. (i) The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year ending in or after 1996, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 11 of this Ordinance, being the information described in Exhibit A hereto. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit A hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall provide unaudited financial statements by the required time, and shall provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID, when and if the audit report on such statements becomes available. (ii) If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data t -35- pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the 5EC. (c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws 1. Principal and interest payment delinquencies, 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties, 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax- exempt status of the Bonds; 7. Modifications to rights of holders of the Bonds, 8. Bond calls, 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds, and 11. Rating changes. -36- The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such subsection. (d) Limitations, Disclaimers, and Amendments (i) The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit made in accordance with this Ordinance or applicable law that causes Bonds no longer to be outstanding. (ii) The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future -37- s date. (iii) UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE.. (iv) No default by the City in observing or performing its obligations under this Section shall comprise a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. (v) The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as such changed circumstances and (2) either (a) the holders of a majority in aggregate principal amount (or any -38- greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interest of the holders and beneficial owners of the Bonds. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance, with subsection (b) of this Section an explanation, in narrative form, of the reason for the amendment and of the impact of any change in the type of financial information or operating data so provided. The City may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds. 13 That interest earnings derived from the investment of proceeds from the sale of the Series 1996 Bonds shall be used along with other available bond proceeds for the construction of the permanent improvements set forth in Section 1 hereof for which a portion of the Series 1996 Bonds are issued; provided that after completion of such permanent improvements, if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Redemption Fund It is further provided, -39- ~; however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America pursuant to Section 11 hereof in order to prevent the Series 1996 Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section 14 That the Series 1996 Bonds initially shall be issued and delivered in such manner that no physical distribution of the Series 1996 Bonds will be made to the public, and The Depository Trust Company ("DTC"), New York, New York, initially will act as depository for the Series 1996 Bonds DTC has represented that it is a limited purpose trust company incorporated under the laws of the State of New York, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered under Section 17A of the Securities Exchange Act of 1934, as amended, and the City accepts, but in no way verifies, such representations The Series 1996 Bonds initially authorized by this Ordinance shall be delivered to and registered in the name of CEDE & CO the nominee of DTC It is expected that DTC will hold the Series 1996 Bonds on behalf of the Purchaser and its participants So long as each Series 1996 Bonds is registered in the name of CEDE & CO the Paying Agent/Registrar shall treat and deal with DTC the same in all respects as if it were the actual and beneficial owner thereof It is expected that DTC will maintain a book-entry system which will identify ownership of the Series 1996 Bonds in integral amounts of $5,000, with transfers of ownership being effected on the records of DTC and its participants pursuant to rules and -40- ~- regulations established by them, and that the Series 1996 Bonds initially deposited with DTC shall be immobilized and not be further exchanged for substitute Series 1996 Bonds except as hereinafter provided The City is not responsible or liable for any functions of DTC, will not be responsible for paying any fees or charges with respect to its services, will not be responsible or liable for maintaining, supervising, or reviewing the records of DTC or its participants, or protecting any interests or rights of the beneficial owners of the Series 1996 Bonds It shall be the duty of the DTC Participants, as defined in the Official Statement herein approved, to make all arrangements with DTC to establish this book-entry system, the beneficial ownership of the Series 1996 Bonds, and the method of paying the fees and charges of DTC The City does not represent, nor does it in any way covenant that the initial book-entry system established with DTC will be maintained in the future Notwithstanding the initial establishment of the foregoing book-entry system with DTC, if for any reason any of the originally delivered Series 1996 Bonds is duly filed with the Paying Agent/Registrar with proper request for transfer and substitution, as provided for in this Ordinance, substitute Series 1996 Bonds will be duly delivered as provided in this Ordinance, and there will be no assurance or representation that any book- entry system will be maintained for such Series 1996 Bonds In connection with the initial establishment of the foregoing book- entry system with DTC, the City Manager and the Director of Fiscal Services each is authorized to execute a "Letter of Representations" prepared by DTC in order to implement the book- -41- t entry system described above 15 That the findings set forth in the preamble to this Ordinance are hereby incorporated into the body of this Ordinance and made a part hereof for all purposes 16 That all ordinances and resolutions or parts thereof in conflict herewith are hereby repealed 17 That this Ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained 18 That it is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code, as amended May r Pro-Tem, City of Fort Worth, Texas ATTEST City Secretary, City of Fort Worth, Texas AP OVED AS O FO D LEGALITY City Attorney, City of Fort Worth, Texas -42- L~ Exhibit A to ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 12 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: The information of the general type included in tables 1 through 15, inclusive. Appendix B to the Official Statement, ~~Excerpts from the Annual Financial Report of the City of Fort Worth, Texas for the Fiscal Year Ended September 30, 1994~~. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in paragraph 1 above. .may. I, the undersigned, City Secretary of the City of Fort Worth, in the State of Texas, do hereby certify that I have compared the attached and foregoing excerpt from the minutes of the regular meeting of the City Council of the City of Fort Worth, Texas which was held on January 23, 1996, and of an ordinance which was duly passed at said meeting, and that said copy is a true and correct copy of said excerpt and the whole of said ordinance Said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all in accordance with Chapter 551, Texas Government Code In testimony whereof, I have set my hand and have hereunto affixed the seal of said City of Fort Worth, this 23rd day of January, 1996 "-;~„ ~~ f :,;i~ ~. °` -~: 9 ~~ ~ M 'i4 f'¢ ~+"+ ~~ ~ .W K • ^ '1S, r N ~r i w ~~ / ~ ~ A~ y y le~.d ~ (cif i~.4~ ~c~/ City Secretary of the City of Fort Worth, Texas City of Fort Worth, Texas 1Vlayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 01 /23/96 G-1 1383 13BONDS 1 of 1 sUBJECT SALE OF $26,350,000 00 CITY OF FORT WORTH, TEXAS, GENERAL PURPOSE BONDS, SERIES 1996 RECOMMENDATION It is recommended 1 That the City Council adopt an Ordinance providing for the issuance of 526,350,000 00 City of Fort Worth, Texas, General Purpose Bonds, Series 1996 and approving the "Notice of Sale and Bidding Instruction," "Official Bid Form," and "Official Statement" prepared in connection with the issuance of the above stated bonds, and 2 That the 526,350,000 00 City of Fort Worth, Texas, General Purpose Bonds, Series 1996, be sold to Merrill Lynch, the bidder offering the lowest true interest rate of 5 0189% DISCUSSION Bids for the 526,350,000 00 City of Fort Worth, Texas, General Purpose Bonds, Series 1996, were received today (Tuesday, January 23, 1996) at 10 00 A M A summary of the true interest rates for the bids is shown below Merrill Lynch. 5 0189 Paine Webber 5 0190% Nationsbank/Bear Stearns 5 0316% Smith Barney/Prudential 5 043176% Dain Bosworth 5 0997% CB a Submitted for Cily Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office b}~~ (to) ~~..- , ', Charles Boswell 8511 , , }~ h.:;. ° i Originating Department Head. ~ `.,~ '. t `s ~ ~ , ; i Jim Keyes 8517 (from) ,, .. ~~^^yy ~~pp~~ /~1 .1,'/~f~ ~~ j.~~K/ For Additional Information ~~- `- ` Contact ~''~~' + r ti Jim Keyes 8517 "' 7 ~' i