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2569 ORD AUTHORIZING ISSUANCE OF INTEREST BEARING CERTIFICATES OF OBLIGATION ORDINANCE N0. 2569 ORDINANCE AUTHORIZING THE ISSUANCE OF INTEREST BEARING CERTIFICATES OF OBLIGATION THE SThTE OF TEXAS ~ COUNTY OF LAMAR § CITY OF PF,RIS § WHEREAS, the City Council deems it advisable to issue Certificates of Obligation in the amount of $650,000 for the purpose of paying, in whole or in part, contractual obliga- tions for improvements and extensions to the City's Sewer System, and for paying all- or a portion of the legal, fiscal and engineering fees in connection with this project; and WHEREAS, the Certificates of Obligation hereinafter authorized and designated are to be issued and delivered for cash pursuant to Article 2368a. 1, V.A. T. C. S. ; and WHEREAS, the City Cauncil has heretofore, on the 16th day of March , 1981, passed an ordinance authorizing and directing the city clerk to give notice of intention to issue Certificates of Obligation; and WHEREAS, said notice has been duly published in the The Paris News, which is a newspaper of general circulation in said City, in its issues of March 22, 1981 and March 29, 1981; and WHEREAS, the City received no petition from the qualified electors of the City protesting the issuance of such Certifi- cates of Obligation; and WHEr.E:,S, it is cor.siciered tc be to the best interest of the City that said interest bearing Certificates of Obli- gation of even denominations in the amount of $5,000 be issued. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS ; l. That the City's Certificates of Obligation, to be called the "CITY OF PARIS, TEXAS CERTIFICATES OF OBLIGATION, SERIES 1981" shall be issued under and by virtue of the Constitution and laws of the State of Texas, for the purpose of paying, in whole or in part, contractual obligations for improvements and extensions to the City's Sewer System, to- wit: to provide $115,000 to purchase land, rights of way and easements, to provide $520,000 to pay professional services for engineering studies, reports and plans, and to provide $15,000 to pay legal and fiscal fees in connection with this project. 2. That said Certificates of Obligation sha11 be dated April 15, 1981, shall be numbered consecutively from one upward, shall be in the denomination of $5,000 each, ag- gregating $650,000, shall become due and payable on April 15 of each of the years as follows: YEARS AMOUNTS YEARS AMOUNTS 1982 $20,000 1990 $45,000 1983 25,000 1991 50,000 1984 25,000 1992 55,000 1985 30,000 1993 60,000 1986 30,000 1994 65,000 1987 35,000 1995 70,000 1988 35,000 1996 65,000 1989 40,000 3. That said Certificates of Obligation shall bear from their date to their respective maturities, or to their respective date of redemption prior to maturity at tne rate of 8.00;; per annum to April 15, 1983 and at the rate of 10.00% per annum from and af'ter Aprii 15, 1_983 unt--i maturity or rerlemption prior to maturity. ,~aid interst shali be evide~ZCed by interest coupcns which shall appertain to said Certificates of Obligation, and which shall be payable in the manner provided and on the dates stated in the FORM OF CERTIFICATE set forth in this Ordinance. 4. That said Certificates of Obligation and interest coupons shall be issued, shall be payable, may be redeemed prior to their scheduled maturities, shall have the characteristics and shall be signed and executed (and said Certificate shall be sealed), all as provided, and in the manner indicated, in the FORM OF CERTIFICATE set forth in this Ordinance. 5. That the form of said Certificates of Obligation, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said Certificates, and the form of the aforesaid ' interest coupons which shall appertain and be attached initially to each of said Certificates, shall be, respectively substantially as follows: FORM OF CERTIFICATE No. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF LAMAR CITY OF PARIS, TEXAS CEF.T IF? CnTE OF OBL I GAT I ON SERIES 198i ON APRIL 15, 1981, THE CITY OF PARIS, COUNTY OF LAMAR, STATE OF TEXAS, promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereorx, from the date hereof, at the rate of 8.00% per annum to April 15, 1983, and at the rate of 10.00% per annum from and after April 15, 1983, evidenced by interest coupons payable on April 15, 1982, and semiannually thereafter, while this Certificate is outstanding. THE PRINCIPAL of this Certificate of Obligation and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this Certificate of Obligation or proper interest coupons at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Certificates: THE LIBERTY NATIONAL BANK, PARIS, TEXAS THIS CERTIFICATE OF OBLIGATION is one of a series dated as of April 15, 1981, issued in the principal amount of $650,000, for the purpose of paying, in whole or in part, contractual obligations for improvements and extensions to the City's Sewer System, to-wit: to provide $115,000 to purchase land, rights of way and easements, to provide $520,000 to pay professional services for engineering studies, reports and plans, and to provide $15,000 to pay for legal and fiscal fees in connection with this project. FORM OF INTEREST COUPON NO. $ THE CITY OF PARIS, COUNTY Or LAMAF., STATE OF TEXAS, promises to pay to bearer tne amount snown on this interest coupon in lawrul ' money of the United States of America, without exchange or collection charges to the bearer, unless due provision has been made for redemption prior to maturity of the Certificate to which this interest coupon appertains, upon presentation and surrender of this interest coupon at THE LIBERTY NATIONAL BANK, PARIS, TEXAS, said amount being interest due that day on the Certificate of Obligation bearing the number hereinafter designated, of that issue of CITY OF PARIS, TEXAS CERTIFICATES OF OBLIGATION, SERIES 1981, dated April 15, 1981. Certificate of Obligation No. XXXXX XXXXX City C1erk Mayor 6. That a special "Interest and Sinking Fund" is hereby created and shall be established and maintained by the City at an official depository bank of said City. Said Interest and Sinking 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 said Certificates of Obligation. All ad valorem taxes levied and collected for and on account of said Certificates of Obliga- tion shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each year while any of said Certificates of Obligation or interest coupons apper- taining thereto are outstanding and unpaid, the City Council of said City shall compute and ascertain a rate and amount oz ad valorem, tax which wili be sufficient to raise and produce the money required to pay the interest on said Certificates of Obligation as such principal matures (but never less than 2% of the original amount of said Certificates of Obligation as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of said City, with full allowances being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in said City, for each year while any of said Certificates of Obligation or interest coupons appertaining thereto are outstanding and unpaid, and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said Certificates of Obligation, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit prescribed by law. 7. That the Mayor and the City Clerk are hereby ordered to do any and all things necessary to accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to pay such items of principal and interest. 8. That the Mayor of said City is hereby authorized to have control of said Certificates of Obligation and all necessary records and proceedings pertaining to said Certi- ficates of Obligation 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 said Certificates said Comptroller of Public Accounts (or a deputy designated in writing to act for said ON hPRIL 15, 1983, or on any interest paVment date thereafter, any outstanding Certificates of Obligation of this series may be redeemed prior to their scrieduled maturities, at the option of said City, in 4ahole or in part, for the principal amount thereof and accrued interest thereon to the date fixed for reaemption. At least thirtv days prior to the date fixed for any such reciemption said City snall cause a written notice of such redemption to be published at least once in a financial publication published in the City of New York, N. Y. , or the Texas Municipal Bond Reporter, published in Austin, Texas. By the date fixed for any such redemption due provision shall be made with the "Paying Agent" for the payment of the principal amount of the Cer- tificates of Obligation which are to be so redeemed and accrued interest thereon to the date fixed for redemption. If such written notice of redemption is published and if due provision for such payment is made, a11 as provided above, the Certificates of Obligation which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the bearer to receive the redemption price from the "Paying Agent" out of the funds provided for such payment. IT IS HEREBY certified, recited and covenanted that this Certificate of Obligation has been duly and validly authorized, issued and delivered; that all acts, conditions, and things required or proper to be performed, exist and be done precedent to or in the authorization, issuance and delivery of this Certificate of Obligation have been performed, existed and been done in accordance with law; that this Certificate of Obligation is a general obligation of said City, issued on the full faith and credit thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate of Obligation, as such interest comes due and such principal matures, r.ave reen ievied and ordered to be levied against a11 taxable property in said Ciiy, and have been pledged irrevocably for such payment, within the limit prescribed by law. IN WITNESS WHEREOF, this Certificate and the interest coupons appertaining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signature of the City Clerk of said City, and the official seal of said City has been duly impressed, or placed in facsimile on this Certificate. XXXXXX XXXXX City Clerk Mayor FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Certificate of Obligation has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and that this Certificate of Obligation has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this Comptroller of Public Accounts of the State of Texas Comptroller) shall manually sign the Comptroller's Registra- tion Certificate printed and endorsed on each of said Certifi- cates of Obligation, and the seai of said Comptroller shall be impressed or piacea ir. facsimile, on each of said Certifi- cates of Obligation. 9. That the City cc>venants to and with the purchasers of tne Certificates of Obligation Lhat it will make no use of the proceeds of the Certificates of Obligation at any time throughout the term of this issue of Certificates of Obligation which, if such use had been reasonably expected on the date of delivery of the Certificates of Obligation to and payment for the Certificates of Obligation by the pur- chasers, would have caused the Certificates of Obligation to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regu- lations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Certificates of Obligation will not otherwise be used directly or indirectly so as to cause all or any part of the Certifi- cates of Obligation to be or become arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regula- tions or rulings pertaining thereto. 10. That it is hereby officially found and determined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necess- ity being that the proposed Certificates of Obligation are required as soon as possible and without delay for necessary and uraently needed pub:Lic improvements; and that said meeting was oper_ tc trie puLlic and toublic notice of the time, piace and purpose cf said mee'-ing was giver, all as required by Vernon's Ann. Civ. St., Article 6252-17. 11. That said Certificates of Obligation are hereby sold and shall be delivered to The Liberty National Bank, Paris, Texas, for cash for the par value thereof and accrued interest thereon to the date of delivery. 12. That this Ordinance shall take effect immediately upon its passage. Passed and adopted this 13th day of April, 1981. . ATTEST Michae . Malone, Mayor : _ ames Wil ins Acting City Clerk ~APPROVED AS 0 FORM: T. K. Haynes, City Attorney