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2128 ORD AUTHORIZING ISSUANCE OF REVENUE BONDSORDINAN„E AUTHORIZING THE ISSUANCE OF REVENUE BONDS THE STATE OF TEXAS , COUNTY OF LAMAR , CITX OF PARIS ; DESCRIPTIVE CAPTION ORDINANCE N0. 2128 BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE ISSUANCE AND DELIVERY OF: CITY OF PARIS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1973-A, $295,000; PLEDGING THE REVENUES OF THE CITY'S WATERWORKS AND SEWER SYSTEM TO THE PAYNIENT OF THE PRINCIPAL AND IN- TEREST OF SAID BONDS; AND ORDAINING OTHER N~2ATTERS PERTAINING THERETO. WHEREAS, the bonds hereinafter authorized were duly and favorably voted at an election held in said City on the 16th day of November, 1971; and WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to Vernon's Articles 1111 through 1118; and WHEREAS, Texas Water Development Board is the oi,mer and holder of City of Paris Waterworks and Sewer System Junior_ Lien Revenue Bonds, Series 1966, and in accordance with the ordinance authorizing said bonds, must approve the issuance of the proposed bonds; and WHEREAS, it is hereby officially found and determined that the extensions of the City's Sewer System to be constructed with the proceeds of these bonds are necessary and economically feasible; and WHEREAS, it is hereby officially found and determir.ed 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 necessity being that the proceeds from the proposed bonds are required as soon as possible and without delay for necessary and urgently needed public im- provements; 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 Anno Civa St, Article 6252-170 BE IT ORDAINED BY THE CITY COUNCIL OF THE C3TY OF PARIS: Section lo That said City's bonds, to be designated the "City of Paris Waterworks and Sewer System Revenue Bonds, Series 1973-A," are hereby authorized to be issued and delivered in the principal amount of $295,000, for the purpose of improv- ing and extending said City's Sewer System, Section 2. That said bonds shall be dated January 1, 1973, shall be in the denomination of $5,000 each, shall be numbered consacutively from 1 through 59, and shall mature serially on July I in each of the years, and in the amounts, respectively, as set forth in the following schedule, to-wit: YEARS AMOUNTS YEARS AMOUNTS 1973 $ 15,000 1982 $ 15,000 1974 15,000 1983 15,000 1975 153000 1984 202000 1976 15,000 1985 20,000 1977 15,000 1986 20,000 1978 15,000 1987 203,000 1979 159000 1988 203,000 1980 15,000 1989 209000 1981 15,000 1990 10,000 Said bonds may be redeemed prior to their scheduled maturities, at the option of said City, on the dates stated, and in the ma.nner provided, in the FORM OF BOND set forth in this Ordinance. Section 3, That said bonds shall bear interest from their date, until maturity or redemption, at the following rates per annum: Maturities 1973 through 1975, 5.75%; Maturities 1976 through 1983, 4.50%; Maturities 1984, 4.60%; Maturities 1985, 4,70%; Maturities 1986 through 1987, 4.75%; Maturities 1988 through 1990, 4.90%; evidenced by interest coupons which shall appertain to said bonds, and which shall be payable on the dates stated in-the FORM OF BOND set forth in this Ordinance. Section 4, That said bonds and interest coupons shall be payable, shall have the characteristics, and sha11 be signed and executed (and said bonds shall be sealed), all as provided, and in the manner indicateci, in the FORM OF BOND set forth in this Ordinance. Section 5. That the form of said 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 of said bonds, and the form of the aforesaid i.nterest coupons which shall appertain and be attached i.nitially to each of said bonds, shall be, respectively, substantially as follaws: (FORM OF BOND) NOa $5,000 UIVITED STATES OF AMERICA STATE OF TEXAS COUNTY OF LAMAR CITY OF PARIS WATERWORKS AND SEWER SYSTEM REVENUE BOND SERIES 1973-A ON JULY 1, 19w, THE CITY OF PARIS, in the County of Larnar, State of Texas, promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of /o per annum, evidenced by interest coupons payable on _ July l, 1973, and semi-annually thereafter on each January 1 and and July 1 while this bond is outstanding. The principal of this bond 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 bond or proper interest coupon, at the FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, which place shall be the paying agent for this Series of bonds. THIS BOND is one of a Series of bonds dated January l, 1973, issued in the principal amount of $295,000, for the purpose of improving and extending said City's Sewer System. BONDS of said Series scheduled to mature on and after July 1, 1983, may be redeemed prior to their scheduled matur- ities, at the option of said City, in whole, or in part, on July 1, 1982, or on any interest payment date thereafter, for the principal amount thereof and accrued interest thereon to the date fixed for redemption. At least thirty days prior to the date fixed for any such redemption, said City shall cause a written notice of such redemption to be published in a finan- cial publication published in the City of New York, New York. By the date fixed for any such redemption, due provision shall be made with the paying agent for the payment of the principal amount of the bonds 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, all as provided above, the bonds 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 purpose of being paid by the paying agent with the funds so provided for such payment. IT IS HEREBY certified, recited, and covenanted that this bond has been duly and validly issued and delivered; that all acts, conditions, and things required or proper to be per- formed, exist, and be done precedent to or in the issuance and delivery of this bond have been performed, existed, and been done in accordance with law; and that the interest on and prin- cipal of this bond, and the Series of which it is a part, together with other outstanding Waterworks and Sewer System Revenue Bonds of said City, are secured by and payable from a first lien on and pledge of the Net Revenues of said City's Waterworks and Sewer System, SAID CITY has reserved the right, subject to the re- strictions stated, or adopted by reference, in the Ordinance authorizing this Series of bonds, to issue additional parity revenue bonds which also may be secured by and made payable f. from a first lien on and pledge of the Net Revenues of said City's Waterworks and Sewer Systemo THE HOLDER HEREOF shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxationo IN WITNESS WHEREOF, this bond and the interest coupons appertaining hereto have been signed with the facsimile signa- ture 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 bondo City Clerk Mayor City of Paris, Texas City of Paris, Texas (FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE) COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER N0. I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this bond 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 (FORM OF INTEREST COUPON) N0, $ On l, 19_, THE CZTY OF PARIS, in the County of Lamar, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, unless due provision has been made for the re- demption prior to maturity of the bond to which this interest coupon appertains, upon presentation and surrender of this inter- est coupon, at the FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, said amount being interest due that day on the bond, bearing the number hereinafter designated, of that issue of "City of Paris Waterworks and Sewer System Revenue Bonds, Series 1973-A," dated January 1, 1973, The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxationo BOND N0, , City Clerk City of Paris, Texas Mayor City of Paris, Texas Section 6, That the term "Outstanding Bonds," as used herein, shall mean the outstanding bonds of the following issues of said City, to-wit: City of Paris Waterworks and Sewer Revenue Refunding Bonds, Series 1957, authorized by Ordinance dated February 18, 19570 City of Paris Waterworks and Sewer Revenue Refunding Bonds, Series 1957-A, authorized by Ordinance dated October 25, 19570 City of Paris Waterworks and Sewer System Revenue Bonds, Series 1962, authorized by Ordinance dated October 15, 1962. City of Paris Waterworks and Sewer System Junior Lien Revenue Bonds, Series 1966, authorized by Ordinance dated December 13, 1965. , City of Paris Waterworks and Sewer System Revenue Bonds, Series 1973-B, being authorized by Ordinance dated January 10, 1973, . The Series 1973-A Bonds authorized hereby are "Additional Bonds" as defined and permitted in the City's Ordinances dated December 13, 1951 and December 13, 1965, and Sections 9 through 25 of said Ordinance dated December 13, 1951, and Section 21 of said Ordinance dated December 13, 1965 are hereby adopted by reference and sha11 be applicable to said Series 1973-A Bonds for all pur- poses, except to the extent hereinafter specifically modified and supplementedo The Series 1973-A Bonds and the Outstanding Bonds are and-shall be secured by and payable from a first lien on and pledge of the Net Revenues of said City's Waterworks and Sewer System, and all of said obligations shall be on a parity and of equa.l dignity in all respects, except the Series 1966 Junior Lien Revenue Bonds, which shall be secured by and payable frQm a lien upon said Net Revenues which shall be junior and subordinate to that of the First Lien Bonds, Section 7, That, in addition to all other amounts required by the Ordinances authorizing the Outstanding Bonds, there shall be deposited into the Interest and Redemption Fund created for the benefit of said Outstanding Bonds and all Additional Bonds, the following: (a) such amounts, in equal monthly installments, made on or before the 20th day of the month in which the Bonds are delivered, if delivered before tne 20th day of the month, or on or before the 20th day of the following month, if delivered after the 20th day of the month, and each month thereafter, as will be sufficient to pay the interest scheduled to come due on July 1, 1973, and on or before the 20th day of each month thereafter, to pay the interest scheduled to come due on the next interest payment date. (b) such amounts, in equal monthly installments, made on or before the 20th day of the month in which the Bonds are delivered, if delivered before the 20th day of the month, or on or before the 20th day of the following month, if delivered after the ZOth day of the month, and each month thereafter, as will be sufficient to pay the principal maturing on July 1, 1973, and on or before the 20th day of each month thereafter, to pay the next maturing principal of said bondso Section 8, That, in addition to all other amounts required by the Ordinances authorizing the Outstanding Bonds, there shali be deposited into the Reserve Fund, created for the benefit of said Outstanding Bonds and all Additional Bonds, on the 20th day of each morith, beginning on or before the 20th day of the month in which bonds are delivered if delivered before the 20th day of the month, or on or before the 20th day of the following month, if delivered after the 20th day of the month, an amount equal to 1/60th of the average annual principal and interest requirements of the Bonds, until one year's average annual principal and interest requirements have been accumulated. Thereafter, said aggregate amount shall be maintained therein, for the benefit of said Outstanding Bonds, the Series 1973-A Bonds, and all Additional Bonds, in accordance with the proced- ures, as herein modified and supplemented, set farth in the Ordinances authorizing the Outstanding Bonds, Section 9. That said bonds are and shall be special obligations of said City, and the holder or holders thereof shall never have the right to demand payment thereof out of any funds raised or to be raised by taxationo Section 10, That the Mayor of said City is hereby authorized to have control of said bonds and all necessary records and proceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registra- tion by the Comptroller of Public Accounts of the State of Texas. Upon registration of said bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's RPgistration Certificate prescribed herein to be printed and endorsed on the back of each bond, and the seal of said Comptroller shall be impressed, or grinted, or lithographed on each of said bonds. Section 11. That said bonds are hereby sold, and shall be delivered to Underwood Neuhaus and Co., Inc., Houston, Texas ~ being the highest and best bidder, for the principal amount or par value thereof, and accrued interest thereon to the date of delivery, plus a premium of $-0- . Section 12. That the City Council covenants to and with the purchasers of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonls which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the 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 City Council is obligated to comply with the requirements of the aforesaid Sect . ion 103(d) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City Council further covenants that the proceeds of the bonds will not otherwise be used directly or indirectly so as to cause all or any part of the bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(d), or any regulations or rulings pertaining thereto. Passed and adopted this lOth day of January, 1973. ATTFST : ~ H. C. G eene, City Clerk APP OVED O FORM: T. K. Hayn , City Attorney