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O73-01KENNEDALE ORDINANCE NO. 73-1 ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS THE STATE OF TEXAS . COUNTY OF TARRANT . CITY OF KENNEDALE . WHEREAS, the bonds hereinafter authorized were lawfully and favorably voted at an election duly held in said City on January 31, 1970,.and June 24, 1972; and WHEREAS, none of the bonds voted at said elections for sewer' improvements have been authorized, issued or delivered; and WHEREAS, it is necessary and advisable to authorize, issue, and deliver an installment or series of said bonds; and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Article 823, V.A.T.C.S. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS: Section 1. That the said City's bonds are hereby au- thorized to be issued in the aggregate principal amount of $170,000.00, for the purpose of improving and extending the Sewer System of said City. Section 2. That said bonds shall be designated as the CITY OF KENNEDALE SEWER SYSTEM GENERAL OBLIGATION BONDS, SERIES 1973. Section 3. That said bonds shall be dated March 1, 1973, shall be in the denomination of $5,000 each, shall be numbered consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respec- tively, as set forth in the following schedule: MATURITY DATE: SEPTEMBER 1. YEARS AMOUNTS 1990 20,000 1991 25,000 1992 25,000 1993 25,000 1994 25,000 1995 25,000 1996 25,000 -1- Section !: o That the bonds shall bear interest at the rate of 6.2 7 per annum. Said interest shall be evidenced by inter- est coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the; FORM OF BOND set forth in this Ordinance. Section 5. That said bonds and interest coupons shall be issued, shall be payable, may be redeemed prior to their schedul- ed maturities, shall have the characteristics, and shall be sign-. ed and executed (and said bonds shall be sealed), all as provided, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance. Section 6. 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 interest coupons which shall appertain and be attached initially to each of said bonds, shall; be, respectively, substantially as follows: FORM OF BOND NO. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF TARRANT CITY OF KENNEDALE SEWER SYSTEM GENERAL OBLIGATION BOND SERIES 1973 ON SEPTEMBER 1, 19, THE CITY OF KENNEDALE, COUNTY OF TARRANT, STATE OF TEXAS, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate of per annum, evidenced by interest coupons payable September 1, 1973, and semi-annually thereafter while this bond is outstanding. THE PRINCIPAL of this bond and the interest coupons apper- taining 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 following, which shall constitute and be defined as the "Paying Agent" for this Series of Bonds: MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS. THIS BOND is one of a Series dated as of march 1, 1973, authorized, issued, and delivered in the principal amount of S170,000.00, for the purpose of improving and extending the Sewer System of said City. -2- Ste.?TENSER 1, 1993, or on any interest payment date thereafter, -any outstanding bonds, of this Series may be redeemed prior to their scheduled maturi- ties, at the option of said City, in whole, or in part, 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 at least once in a fi- nancial 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 in- terest thereon to the date fixed for redemption. If such writ- ten 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 re- garded 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 bond has been duly and validly voted, authorized, issued, and de-, livered; that all acts, conditions, and things required or proper . to be performed, exist, and be done precedent to or in the voting,, authorization, issuance, and delivery of this bond have been per formed, existed, and been done in accordance with law; that this bond is a general obligation of said City, issued on the full faith and credit thereof; and that annual ad valorem taxes suffi cient to provide for the payment of the interest on and principal of this bond, as such interest comes due and such principal ma- tures, have been levied and ordered to be levied against all tax- able property in said City, and have been pledged, irrevocably for such payment, within the limit prescribed by law. IN WITNESS WHEREOF, this bond and the interest coupons apper- taining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signa- ture of the City Secretary of said City, and the official seal, of, said City has been duly impressed, or placed in facsimile, on this bond. xxxxxxxx xxxxxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this bond has been examined, certi- fied 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 xxxxxxxx Comptroller of Public Accounts of the State of Texas. NO. FORM OF INTEREST COUPON ON 1, 19, THE CITY OF KENNEDALE, IN THE COUNTY OF TARRANT, STATE OF TEXAS, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, with- out exchange or collection charges to the bearer, unless due provision has been made for the redemption prior to scheduled. maturity of the bond to which this interest coupon appertains, upon presentation and surrender of this interest coupon, at MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS, said amount being interest 'coming due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF KENNEDALE SEWER SYSTEM GENERAL OBLIGATION BONDS, SERIES 1973, dated MARCH 1, 1973. BOND NO. xxxxxXXX XxXXXXXX City Secretary Mayor .Section 7. That a special "Interest and Sinking Fund" is hereby created solely for the benefit of said bonds, and said Interest and Sinking Fund shall be established and maintained by said 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 bonds. All ad valorem taxes levied and collected for and on account of said bonds shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid, the governing body of said City shall compute• and ascertain a rate and amount of ad valorem tax which will be suffi- cient to raise and produce the money required to pay,th interest. on said bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of. such bonds as such principal matures (but never less than,2% of the original principal amount of said bonds as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of said City, with full allowance being made for tax de finquencies and the cost of tax collection. Said rate�andamount' 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 bonds 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 afore'- said Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said bonds, as such interest comes due and such principal matures', are hereby pledged irrevocably for such payment, within the limit? prescribed by law. Section 8. That the Mayor of said City is hereby author zed to have control of said bonds and all necessary records and pro- ceedings pertaining to said bonds pending their delivery aid their investigation, examination, and approval.by �1�e.:4t�orney General of the State of Texas, and their registrtion by the Comptroller of Public Accounts of the State of'Texas. Upon -4- 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 Registration Certificate printed and endorsed on each of said bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of said Bonds. Section 9. That the City covenants to and with the pur- chasers 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 bonds 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 is obligated to comply with the requirements of the aforesaid Section 103(d) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City 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. Section 10. That it is hereby officially found and deter- mined: 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 sale of said bonds are required as soon as possible and without delay for necessary and urgently needed public improvements; and that said meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17. Section 11. That said bonds are hereby sold and shall be delivered to ALMON & COMPANY, DALLAS, TEXAS, for cash for the par value thereof and accrued interest thereon to date of delivery. ADOPTED AND APPROVED this 8th day of March, 1973. APPROVED: . CHi"L`DRES; Mayor of the City of Kennedale, Texas ATTEST: 1 D. Boyd, City Seetary (CITY SEAL)