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HomeMy WebLinkAbout05784 ORD - 06/13/1960THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI On this the /,j�day of June,, 1960, the City Council of the City of Corpus Christi, Texas, convened in d'�,k a 1 -L meeting, with the following members of said Council present, to-wit: Ellroy Ellroy King, mayor, Dr. James L. Barnard, Joseph B. Dunn, Commissioners, Patrick J. Dunne, R. A. Humble, Gabe L. Lozano, Sr., k1° City Secretary, with the following absent: constituting a quorum, at which time the following among other business was transacted: Mr, presented for the consideration of the Council an ordinance. The ordinance was read by the City Secretary. The Mayor presented to the Council a communication in writing pertaining to said proposed ordinance, as follows: "Corpus Christi, Texas, June ! 3 "*, 196o. TO THE CITY COUNCIL CORPUS CHRISTI, TEXAS Gentlemen: For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Couil, I, therefore, hereby request that you suspend said Charter rule or quirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Is'l Ellroy King, Mayor." r� �` - 1 - Z i Commissioner made a motion that the Charter provision prohibiting ordinances from being passed finally on the date introduced be suspended for the reasons stated in the written request of the Mayor and stated in the emergency clause of the ordinance. The motion was seconded by Commissioner 0�i The motion was carried by the unanimous vote of the City Council, viz: AYES: Commissioners Barnard, Air' -- , Dunn, Dunne, Humble and Lozano. NOES: None. The Mayor requested that the records show that he voted Aye. This was done. Commissioner 64 made a motion that the ordinance be passed finally. The motion was seconded by Commissioner The motion was carried by the following vote: AYES: Commissioners Barnard, A4rluaar+, Dunn, Dunne, Humble and Lozano. NOES: None. The Mayor requested that the records show that he voted Aye. This was done. The Mayor announced that the ordinance had been passed. The ordinance is as follows: ORDINANCE N0. J 794 AUTHORIZING THE ISSUANCE OF FIRST MORTGAGE WATER- WORKS REVENUE BONDS IN THE AMOUNT OF $1,960,000.00, FOR THE PURPOSE OF IMPROVING AND EXTENDING TEE WATERWORKS SYSTEM; PLEDGING THE NET REVENUES OF THE CITY'S WATERWORKS SYSTEM; AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED OF TRUST FURTHER SUPPLEMENTING THE DEED OF TRUST SECURING CITY OF CORPUS CHRISTI FIRST MORTGAGE WATERWORKS REVENUE REFUNDING BONDS, SERIES 1953, SUCH SUPPLEMENTAL DEED OF TRUST PROVIDING THE SECURITY FOR THE BONDS AUTHORIZED BY THIS ORDINANCE; ORDAINING OTHER MATTERS RELATING TO THE SUBJECT AND DECLARING AN EMERGENCY. WHEREAS, heretofore on the 5th day of August, 1959, the City Council of the City of Corpus Christi, Texas, passed an ordinance call- ing an election to be held in said City on the 29th day of August, 1959, on several propositions, including the following: - 2 - ; and PROPOSITION N0. 8 "Shall the City Council of the City of Corpus Christi, Texas, be authorized to issue the bonds of said City in the amount of $3,500,000.00, maturing serially in such installments as the City Council may prescribe, the maximum maturity being not more than Thirty (30) years from their date, bearing inter- est at a rate not to exceed Five (5%) per cent per annum, for the purpose of improving and extending the City's Waterworks System, to be issued in accordance with and secured in the manner provided in Article 1110a and Articles 1111 -1118, both inclusive, of the Revised Civil dtatutes of Texas, 1925, as amended, Chapter 249, Acts of the Regular Session of the 51st Legislature and Chapter 250, Acts of the 51st Legislature, as amended by Chapter 23, Acts of the 52nd Legislature, and as per- mitted by the ordinance and Indenture authorizing and securing the presently outstanding waterworks revenue bonds, each bond to be conditioned that the holder thereof shall never have the right to demand payment of said obligations out of funds raised or to be raised by taxation, secured by a pledge of the net revenues from the operation of said system, a deed of trust lien on said system and the pledge of a franchise to operate said system for a term of not exceeding twenty years in event of sale after default as provided in the power of sale contain- ed in said mortgage." WHEREAS, said election was duly and legally held on the 29th day of August, 1959, at which election a majority of the legally quali- fied electors owning taxable property in the City of Corpus Christi, Texas, and who had duly rendered the same for taxation, voting at said election sustained the proposition to issue the bonds hereinafter described by the following vote: PROPOSITION NO. 8 "FOR THE ISSUANCE OF WATERWORKS IMPROVEMENT REVENUE BONDS" 3142 Votes; "AGAINST THE ISSUANCE OF WATERWORKS IMPROVE- MENT REVENUE BONDS" 2595 Votes, as is reflected in the election returns heretofore filed with the City Secretary; and WHEREAS, heretofore in accordance with the provisions of the Constitution and laws of the State of Texas and the Charter of the City, the City Council authorized the issuance of City of Corpus Christi, Texas, First Mortgage Waterworks Revenue Refunding Bonds, Series 1953, (hereinafter called the "Series 1953 Bonds "), in the principal amount of $3,831,000.00, dated December 1, 1953, with interest payable June 1, 1954, and thereafter semi - annually on December 1 and June 1 of each year, maturing serially as - 3 - more fully set forth in the ordinance authorizing the issuance of said bonds; and WHEREAS, heretofore in accordance with the provisions of the Constitution and laws of the State of Texas and the Charter of the City, the City Council authorized the issuance of City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 1954, (hereinafter called the "Series 1954 Bonds "), in the principal amount of $7,000,000.00, dated February 1, 1954, with interest payable June 1, 1954, and thereafter semi- annually on December 1 and June 1 of each year, maturing serially as more fully set forth in the ordinance authorizing the issuance of said bonds; and WHEREAS, heretofore in accordance with the provisions of the Constitution and laws of the State of Texas and the Charter of the City, the City Council authorized the issuance of City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 2 of 1954, (hereinafter called the "Series 2 of 1954 Bonds "), in the principal amount of $500,000.00, dated October 1, 1954, with interest payable June 1, 1955, and thereafter semi- annually on December 1 and June 1 of each year, maturing serially as more fully set forth in the ordinance authorizing the issuance of said bonds; and WHEREAS, heretofore in accordance with the provisions of the Constitution and laws of the State of Texas and the Charter of the City, the City Council authorized the issuance of City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 19551 (hereinafter called the "Series 1955 Bonds "), in the principal,amount of $500,000.00, dated December 1, 1955, with interest payable June 1, 1956, and thereafter semi- annually on December 1 and June 1 of each year, maturing serially as more fully set forth in the ordinance authorizing the issuance of said bonds; and WHEREAS, for the purpose of securing the payment of the Series 1953 Bonds, the Series 1954 Bonds, the Series 2 of 1954 Bonds and the Series 1955 Bonds, and for the purpose of providing for the fixing in more detail the rights of the holders thereof, and of the City and of the Trustee, and for the purpose of making an effective deed of trust lien on the City's Waterworks System and the lien of said bonds on the revenues of the water- works system, the ordinance authorizing the issuance of the Series 1953 - 4 - Bonds authorized the execution of a deed of trust (hereinafter called the "Deed of Trust ") to be dated as of December 1, 1953, by and between the City and Mercantile National Bank at Dallas, as Trustee, (hereinafter called the "Trustee "), as further supplemented by Deed of Trust executed by and between said parties securing said Series 1954 Bonds, said Series 2 of 1954 Bonds and said Series 1955 Bonds; and WHEREAS, Section 14 of the ordinance authorizing the issuance of the Series 1953 Bonds contains the following provision: ; and "14. Additional Waterworks System Revenue Bonds may be issued to be secured by a pledge of the revenues and a lien upon the properties of the Waterworks System and upon the franchise of the System of ecual dignity with the pledge and liens securing the Waterworks Revenue Refund- ing Bonds, herein authorized, provided that such Additional Waterworks Revenue Bonds shall be issued for improvements or extensions or repairs or replacements of and to the Water- works System or for any one or more or all of such purposes, subject to the limitations contained in Article II of said Deed of Trust, hereinabove in Section 11 made a part of this ordinance." WHEREAS, prior to the delivery of the bonds authorized by this ordinance said Deed of Trust had been duly executed by the City and the Trustee; and WHEREAS, all of the things required to have happened, to have been done, and to exist under Section 2.05 of Article II of the Deed of Trust as a condition precedent to the authorization and issuance of the Bonds, have happened, been done, and do exist, including the following: (1) This ordinance authorizing the Bonds prescribes the date, prescribes the bank or banks at which the principal of and interest on the Bonds are to be payable, interest rate, maturity dates, and other details necessary to identify the Bonds, the purposes for which the proceeds are to be used; (2) A further Supplement to the Deed of Trust as is authorized in this Bond Ordinance properly identifying the Bonds shall be executed and the Bonds shall be authenticated by the Trustee before their issuance shall have been completed; and WHEREAS, as required, all of the certificates and other showings evidencing existence of facts and performance of conditions required - 5 - under Section 2.05 of the Deed of Trust shall be filed prior to the authentication of the Bonds by the Trustee; and WHEREAS, in order to bring the Bonds authorized by this ordinance under the terms of the Deed of Trust, and for other purposes here- inafter in this ordinance specified, it is proper that a further Supplement to the Deed of Trust be executed; and WHEREAS, on March 17, 1954, the City Council of the City of Corpus Christi, Texas, passed an ordinance, as amended on March 24, 1954, directing the issuance of $7,000,000.00 City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 1954, dated February 1, 1954, (hereinafter called "Series 1954 Bonds "); and WHEREAS, on November 17, 1954, the City Council of the City of Corpus Christi, Texas, passed an ordinance directing the issuance of $500,000.00 City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 2 of 1954, dated October 1, 1954, (hereinafter called "Series 2 of 1954 Bonds "); and WHEREAS, December 14, 1955, the City Council of the City of Corpus Christi, Texas, passed an ordinance directing the issuance of $500,000.00 City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 1955, dated December 1, 1955, (hereinafter called "Series 1955 Bonds "); and WHEREAS, in order to make possible improvements and ex- tensions to the City's Waterworks System it is deemed advisable that $1,960,000.00 of said bonds voted August 29, 1959, now be issued for such purposes; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: 1. That the findings and statements contained in the preamble to this ordinance are true and correct. 2. That for the purpose of providing funds to improve and extend the waterworks system of the City of Corpus Christi there shall be issued First Mortgage Waterworks Revenue Bonds of the City of Corpus Christi, Texas, in the amount of $1,960,000.00, under authority of the - 6 - I Constitution and laws of the State of Texas and the Charter of said City, which bonds and the interest thereon shall be payable from the revenues from said waterworks system and secured by a deed of trust on said system and by a pledge of an operating franchise in the event the properties comprising - said waterworks system are sold after default, all as more specifically hereinafter provided. 3. That said bonds shall be called "City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 1960 ", (hereinafter sometimes called the "Bonds "), shall be dated June 1, 1960, shall be in the denomination of One Thousand ($1,000.00) Dollars each, and shall be numbered One (1) to One Thousand Nine Hundred Sixty (1,960), both inclusive. 4. The Bonds shall be registerable as to principal at the option of the holder on the books of the Registrar upon presentation of the Bonds to such Registrar. The Trustee is hereby appointed Bond Registrar. Such registration shall not only be noted on the books of such Registrar kept for such purpose, but shall be noted by such Registrar on the Bonds so registered, and after such registration no transfer of a Bond so registered shall be valid unless made on the books of such Registrar by the registered holder or his legal representative, thereunto duly authorized, and similarly noted on the bonds. Bonds registered as to principal may be discharged from registration by being transferred to bearer after which they shall be trans- ferable by delivery, but may be again registered as to principal as before. Bonds not so registered, or which have been so transferred to bearer, shall be in all respects negotiable. The registration of Bonds as to principal shall not restrain the negotiability by-delivery of the coupons attached thereto. rates: 5. That the Bonds shall bear interest at the following Bonds Nos. 1 to 174r, both incl., per annum; Bonds Nos. to 1280 , " 3 % per annum; Bonds Nos. 1,2A/ to /9Ff, " o % per annum; Bonds Nos. /!AI to /LGo , " " per annum; Bonds Nos. /G6/ to /?Col " " 4% per annum, - 7 - payable December 1, 1960, and semi - annually thereafter on June 1 and December 1 of each year. 6. Both principal and interest shall be payable in law- ful money of the United States of America at the Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at the Chemical Corn Exchange Bank, New York, New York, without exchange or collection charges to the owner or holder thereof, upon presentation and surrender of proper Bonds and coupons. 7. Such Bonds shall mature serially as follows: BONDS NUMBERS MATMITY DATES AMOUNTS 1 to 75, both incl., June 1, 1961, $ 75,000.00 76 to 36o, " June 1, 1962, 285,000.00 361 to 655, June 1, 1963, 295,000.00 656 to 965, " " June 1, 1964, 310,000.00 966 to 1035, " " June 1, 1965, 70,000.00 1036 to 1065, " " June 1, 1966, 30,000.00 1066 to 1095, June 1, 1967, 30,000.00 1096 to 1125, June 1, 1968, 30,000.00 1126 to 1155, " " June 11 1969, 30,000.00 1156 to 1185, June 11 1970, 30,000.00 1186 to 1215, " " June 1, 1971, 30,000.00 1216 to 1245, " " June 1, 1972, 30,000.00 1246 to 1280, June 1, 1973, 35,000.00 1281 to 1315, " " June 1, 1974, 35,000.00 1316 to 1350, " " June 1, 1975, 35,000.00 1351 to 1385, " June 1, 1976, 35,000.00 1386 to 1420, " June 1, 1977, 35,000.00 1421 to 1455, June 1, 1978, 35,000.00 1456 to 1495, June 11 1979, 40,000.00 1496 to 1535, June 1, 1980, 40,000.00 1536 to 1575, " June 1, 1981, 40,000.00 1576 to 1615, " June 1, 1982, 40,000.00 1616 to 1660, " June 1, 1983, 45,000.00 1661 to 1960, June 1, 1984, 300,000.00 In Bonds Numbers One Thousand One Hundred Eighty Six (1,186) to One Thousand Nine Hundred Sixty (1,960), both inclusive, the City reserves the option of calling each such bond for redemption prior to maturity on any interest payment date on and after June 1, 1970, at 1022 and accrued interest to date so fixed for redemption. Thirty days' notice of such call shall be given in writing to the places of payment and notice shall be pub- lished in the City of New York, New York. Said notice shall appear in said publication in at least one issue, the date of said issue being not less than thirty days prior to the date so fixed for redemption. If any such bond is called for redemption in said manner and if funds sufficient to pay the re- demption price shall have been duly placed in the banks of payment by the date fixed for redemption, it shall not thereafter bear interest. If fewer than all of the optional bonds are called for redemption, they shall be call- ed in their inverse numerical order. 8. That each of said Bonds and the interest coupons shall be executed by the imprinted facsimile signature of the Mayor and attested by the imprinted facsimile signature of the City Secretary, shall have the corporate seal of the City impressed thereon, and shall be authenti- cated by the Trustee in the manner provided in the Deed of Trust after com- pliance with the requirements set forth in Section 2.05 hereof, and in the manner prescribed in the Supplement to the Deed of Trust for which provision is hereinafter made in this ordinance. Interest falling due on and prior to maturity shall be represented by appropriate interest coupons to be attached to such Bonds, and said officials, by the execution of such Bonds, shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said Bonds and coupons, and shall have the same effect as manually executed signatures. 9. That such Bonds, the coupons to be thereto attached and the endorsements to appear thereon, shall be substantially in the form shown in the Deed of Trust and in the further Supplement thereto, herein- after in this ordinance authorized. 10. That the Waterworks System of the City of Corpus Christi shall be operated by the City and the revenues thereof shall be applied and the Bonds herein authorized shall be paid in the manner set out and provided in the Deed of Trust, and all of the provisions of said Deed of Trust shall be effective and shall be applicable to the authorization, issu- ance and payment of the Bonds and to the operation of such Waterworks System with like force and effect as though all of said provisions were otherwise than in the Deed of Trust separately set out in this ordinance. 11. To identify and bring the Bonds under the terms of the Deed of Trust, evidence the fact that the Bonds are secured by liens upon the revenues, the properties constituting the Waterworks System, and on the franchise to operate such properties in the event of sale after default, of equal dignity with the liens securing the Series 1953 Bonds, the Series 1954 Bonds, the Series 2 of 1954 Bonds and the Series 1955 Bonds, and for the purpose of fixing in further detail the rights of the holders of the Bonds, and the rights and duties of the City and of the Trustee, a Supplement,to the Deed of Trust, hereinafter called the "Supplement" in substantially the following form and language is hereby authorized to be executed and delivered on behalf of the City of Corpus Christi: - ILO - SUPPLEMENT TO DEED OF TRUST THE STATE OF TEXAS : COUNTY OF NUECES THIS SUPPLEMENT TO DEED OF TRUST, (hereinafter called "SUPPLEMENT ") dated as of June 1, 1960, by and between the City of Corpus Christi, a municipal corporation duly organized and existing under and by virtue of the laws of the State of Texas, situated in Nueces County, Texas, (hereinafter sometimes called "CITY "), acting through its Mayor and City Secretary, duly authorized by ordinance (hereinafter sometimes called the "Series 1960 BOND ORDINANCE ") passed by the City Council on June 13, 1960, PARTY OF THE FIRST PART, and MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS, a national banking association duly organized and existing under and by virtue of the Banking Laws of the United States (hereinafter sometimes called "TRUSTEE "), PARTY OF THE SECOND PART: W I T N E S S E T H: WHEREAS, heretofore as of December 11 1953, the City and the Trustee executed an instrument of trust, hereinafter sometimes called the "Deed of Trust ", primarily for the purpose of securing $3,831,000.00 in principal amount of "City of Corpus Christi First Mortgage Waterworks Revenue Refunding Bonds, Series 1953 ", in the denomination of $1,000.00 each, numbered from One (1) to Three Thousand Eight Hundred Thirty One (3,831), both in- clusive, and bearing interest at Three and one -half (3-2:L%) per cent as shown in the Deed of Trust; and WHEREAS, Section 2.05 of the Deed of Trust provides for the issuance by the City of additional Bonds which when issued in accordance with such provisions shall along with the Series 1953 Bonds be secured ratably by a first lien on the properties, revenues, and franchise constituting the trust estate, as more fully described in the Deed of Trust; and WHEREAS, pursuant to an authorizing election the City Council has heretofore passed an ordinance and executed a Supplement to the Deed of Trust authorizing the issuance of $7,000,000.00 City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 1954, dated February 1, 1954, (hereinafter called "Series 1954 Bonds "); and - 1 - WHEREAS, pursuant to said authorizing election the City Council has heretofore passed an ordinance and executed a Supplement to the Deed of Trust authorizing the issuance of $500,000.00 City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 2 of 1954, dated October 1, 1954, (hereinafter called "Series 2 of 1954 Bonds "); and WHEREAS, pursuant to said authorizing election the City Council has heretofore nassed an ordinance and executed a Supplement to the Deed of Trust authorizing the issuance of $500,000.00 City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 1955, dated December 1, 1955, (hereinafter called "Series 1955 Bonds "); and WHEREAS, pursuant to an authorizing election held August 29, 1959, the City Council has passed an ordinance (hereinafter sometimes called "Series 1960 Bond Ordinance ") of which this Supplement is a part, authorizing the issuance of additional bonds in the principal amount of $1,960,000.00, for the purpose of providing funds for improvements, ex- tensions, repairs or replacements of and to the City's waterworks system (hereinafter sometimes called the "Series 1960 Bonds "); and WHEREAS, the Series 1960 Bonds authorized by said Series 1960 Bond Ordinance when issued are to be secured by said Deed of Trust in like manner and with like effect as if issued concurrently and contempor- aneously with the Series 1953 Bonds, the Series 1954 Bonds, the Series 2 of 1954 Bonds and the Series 1955 Boards; and WHEREAS, said bonds are payable as to both principal and interest in lawful money of the United States of America at the Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at the Chemical Corn Exchange Bank, New York, New York, and to mature serially as follows: BONDS NIJbIDERS MATURITY DATES AMOUNTS 1 to 75, both incl., June 1, 1.961, $ 75,000.00 76 to 360, " June 1, 1962, 285,000.00 361 to 655, June 1, 1963, 295,000.00 656 to 965, " " June 1, 1964, 310,000.00 966 to 3.035, " June 1, 1965, 70,000.00 IC36 to 1065, " " June 1, 1966, 30,000.00 1066 to 1095, " " June 1, 1967, 30,000.00 1096 to 1125, June 1, 1968, 30,000.00 1126 to 1155, " " June 1, 1969, 30,000.00 - 2 - BONDS NUMBERS MATURITY DATES 1156 to 1185, both incl., June 1, 1970, 1186 to 1215, " " June 1, 1971, 1216 to 1245, " " June 1, 1972, 1246 to 1280, " June 1, 1973, 1281 to 1315, " " June 11 1974, 1316 to 1350, June 1, 1975, 1351 to 1385, June 1, 1976, 1386 to 1420, June 1, 1977, 1421 to 1455, June 1, 1978, 1456 to 1495, June 1, 1979, 1496 to 1535, June 1, 1980, 1536 to 1575, June 1, 1981, 1576 to 1615, June 1, 1982, 1616 to 1660, June 1, 1983, 1661 to 1960, " June 11 1984, AMOUNTS $ 30,000.00 30,000.00 30,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 40,000.00 40,000.00 40,000.00 40,000.00 45,000.00 300,000.00 In Bonds Numbers One Thousand One Hundred Eighty Six (1,186) to One Thousand Nine Hundred Sixty (1,960), both inclusive, the City reserves the option of calling each such bond for redemption prior to matur- ity on any interest payment date on and after June 1, 1970, at 1022 and accrued interest to date so fixed for redemption. Thirty days' notice of such call shall be given in writing to the places of payment and notice shall be published in the City of New York, New York. Said notice shall appear in said publication in at least one issue, the date of said issue being not less than thirty days prior to the date so fixed for redemption. If any such bond is called for redemption in said manner and if funds suffi- cient to pay the redemption price shall have been duly placed in the banks of payment by the date fixed for redemption, it shall not thereafter bear interest. If fewer than all of the optional bonds are called for redemption, they shall be called in their inverse numerical order. WHEREAS, the Bonds and the interest coupons and certifi- cates to appertain thereto, and the form for registration of the Bonds as to principal, the Comptroller's certificate, and the Trustee's certificate, to be endorsed thereon, are to be in substantially the following forms, respectively, with appropriate insertions, omissions and variations as in this Supplement provided: UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI FIRST MORTGAGE WATERWORKS REVENUE BOND SERIES 1960 - 3 - NO. $1,000.00 THE CITY OF CORPUS CHRISTI, a lawfully created and existing municipal corporation in NUECES COUNTY, TEXAS, out of revenues hereinafter specified, and from no other source, FOR VALUE RECEIVED, hereby promises to pay to bearer, or, if this Bond be registered as to principal, to the registered holder thereof, on June 1, 19_, the principal sum of ONE THOISAND DOLLARS ($1,000.00), and, from said revenues to pay interest thereon from the date hereof until the principal amount of this Bond shall have been paid at the rate of ( %) per cent per annum, evidenced by coupons payable December 1, 1960, and thereafter semi - annually on June 1 and December 1. Both principal of and interest on this Bond are payable in lawful money of the United Crates of America, at Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at Chemical Corn Exchange Bank, New York, New York, without exchange or collection charges to the owner or holder hereof. Interest maturing on and prior to the scheduled maturity date of this Bond is payable only upon presentation and surrender of the interest coupons hereto attached as they severally become due. THIS BOND is one of a duly authorized issue of Bonds of like date and tenor, except as to serial number, interest rate, maturity and right of prior redemption, in the amount of $1,960,000.00, (being the first installment of an authorized issue of $3,500,000.00) issued for the purpose of improving and extending the waterworks system of the City of Corpus Christi, Texas, as authorized at an election held in said City on August 29, 1959, and pursuant to ordinance passed by the City Council of the City of Corpus Christi, and secured by a Deed of Trust dated as of December 1, 1953, and by Supplement to said Deed of Trust, dated as of June 1, 1960, both collectively hereinafter sometimes referred to as the Deed of Trust, by and between the CITY OF CORPUS CHRISTI and MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS, (hereinafter referred to as the "TRUSTEE "), as Trustee, an original counterpart of such Deed of Trust being on file in the office of said Trustee in the City of Dallas, Texas, reference to which ordinance and Deed of Trust is hereby made for a description of the funds charged with and pledged to the payment of the - 4 - interest on and the principal of the Bonds, the nature and extent of the security thereof, and a statement of the rights, duties, and obligations of the City and the Trustee and the rights of the holders of the Bonds, to all the provisions of which Deed of Trust the holder hereof by the acceptance of this Bond assents. *(Bonds numbered One Thousand -One Hundred Eighty Six (1,186) to One Thousand Nine Hundred Sixty (1,960), both inclusive, of the issue of which this is one, may be redeemed prior to maturity at the option of the City on the 1st day of June, 1970, and on any interest payment date thereafter, at a price of 10 z and accrued interest to date so fixed for redemption. Thirty days' notice of such call is to be given in writing to the places of payment and said notice is to be published in a financial publication published in the City of New York, New York. Said notice shall appear in said publication in at least one issue, the date of said issue being not less than thirty days prior to the date so fixed for redemption. If such bond is called for redemption in said manner and if funds sufficient to pay the redemption price shall have been duly placed in the banks of pay - ment by the date fixed for redemption, it shall not thereafter bear interest. If fewer than all of the optional bonds are called for redemption, they shall be called in their inverse numerical order.) THIS BOND shall not be deemed to constitute a debt of the City of Corpus Christi or a pledge of its faith end credit, but shall be pay- able as to principal and interest solely from the net revenues derived from the operation of the Waterworks System, including all additions, extensions and improvements thereto which may hereafter be made, hereinafter referred to as the "System ", and the holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by tax- ation. This issue of Bonds is further secured by a lien upon the properties comprising the System and, in the event of default and the sale of such properties under provisions of said Deed of Trust, by a franchise to the purchaser to operate such properties for a period of twenty years. The City of Corpus Christi hereby covenants and agrees that it will fix and maintain rates and charges for services to be rendered by the System sufficient to pay all operating, maintenance, depreciation, replacement, betterment and -5- interest charges, and to provide an Interest and .linking Fund sufficient to pay the principal of and interest on the issue of Bonds of which this is one as such principal and interest matures, all in accordance with Article 1113 of the Revised Civil Statutes of Texas of 1925 as amended, and to create and maintain the several funds as prescribed in the Deed of Trust. THIS BOND is issued and the above mentioned Deed of Trust was made and entered into under and pursuant to the Constitution and Laws of the State of Texas. THIS BOND may be registered as to principal only in accordance with the provisions endorsed hereon. The date of this bond in conformity with the ordinance above mentioned is June 1, 1960. EACH SUCCESSIVE holder of this bond during such time as it is payable to bearer, and each successive holder of each of the coupons hereto attached, is conclusively presumed to forego and renounce his equi- ties in favor of subsequent holders for value without notice, and to agree that this bond while so payable to bearer, and each of the coupons hereto attached, may be negotiated by delivery by any person having possession hereof, howsoever such possession may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value and without notice, thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder. Neither the City of Corpus Christi nor its officials nor the paying agent hereinabove named shall be affected by any notice to the contrary. TO THE EXTENT permitted by law and the aforesaid Deed of Trust, modifications or alterations of the Deed of Trust and any Deed of Trust supplemental thereto may be made, with the consent of the City Council of the City of Corpus Christi and the holders of at least seventy -five per cent in principal amount of the Bonds then outstanding, but such modification or alteration is not permitted to affect the maturity, amount or rate of in- terest of any such outstanding Bonds. The Deed of Trust provides for accele- ration of the maturities of all of the Bonds then outstanding in the event of a default. - 6 - The City reserves the right to issue additional parity revenue bonds to the extent and in the manner expressly permitted by said Deed of Trust and the ordinance authorizing the issuance of City of Corpus Christi First Mortgage Waterworks Revenue Refunding Bonds, Series 1953, in the amount of $3,831,000.00, and in the ordinance authorizing the Bonds of which this is one. Such additional bonds shall be payable from the same source and secured by the same revenues, deed of trust, properties, and pledged franchise, and shall be on a parity with this issue of bonds and the Series 1953 Bonds, the Series 1954 Bonds, the Series 2 of 1954 Bonds and the Series 1955 Bonds. In the event the City later exercises the right to com- bine the operations of its waterworks and sanitary sewer systems reserved to it in Section 2.06 of said Deed of Trust, the said Revenue Refunding Bonds, Series 1953, the Series 1954 Bonds, the Series 2 of 1954 Bonds, the Series 1955 Bonds and the Bonds of this issue, together with any additional water- works bonds subsequently issued and any revenue bonds theretofore or there- after issued for sanitary sewer purposes, to the extent and in the manner permitted by law at such time, will be payable from the revenues of the com- bined systems, and, if so authorized by law and prescribed by the City, may be further secured by a mortgage on the sanitary sewer system. IT IS HEREBY CERTIFIED AND RECITED that all acts and things required by the Constitution and Laws of the State of Texas, and the Charter of the City, to happen, exist and be performed precedent to and in the issuance of this Bond and the passage of said ordinance and the execution of the supplement to said Deed of Trust, have happened, exist and have been performed as so required. THIS BOND shall not be entitled to any benefit under said Deed of Trust or the supplement thereto or become valid or obligatory for any purpose until it shall have been authenticated by the execution by the Trustee of the certificate hereon endorsed. IN WITNESS WHEREOF, the CITY OF CORPUS CHRISTI has caused this Bond to be executed by the imprinted facsimile signature of its Mayor and attested by the imprinted facsimile signature of its City Secretary, and -7- the corporate seal of said City to be impressed hereon, and has caused the coupons hereto attached to be executed with the facsimile signatures of said officials all as of June 1, 1960, the date of this bond. Mayor, City of Corpus Christi, Texas. ATTEST: City Secretary, City of Corpus,Christi, Texas. (CITY SEAL) *(This paragraph should be omitted from Bonds Nos. 1 to 1185, both incl.) (FORM OF COUPON) NO. $ On the !at day of , 19 , the City of Corpus Christi, Texas, Nueces County, Texas, will pay to bearer *(unless the bond to which this coupon is attached shall have been called for previous redemption as therein provided and provision for the redemption thereof made), at the Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at the Chemical Corn Exchange Bank, New York, New York, with- out exchange or collection charges to the owner or holder hereof, the sum of ($ ) Dollars, in lawful money of the United States of America payable out of the revenues specified in the Bond to which this coupon is attached, for the interest in that amount then due on its First Mortgage Waterworks Revenue Bond, Series 1960, and numbered The holder of this coupon shall never have the right to demand pay- ment thereof out of any funds raised or to be raised by taxation. Mayor. ATTEST: City Secretary. *(This parenthetical expression should be printed only in coupons maturing December 1, 1970, and subsequent.) (TRUSTEE'S CERTIFICATE) This Bond is one of the Bonds described in the within mentioned Supplement to the Deed of Trust. - 8 - MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS Trustee BY Authorized Officer. (FORM OF COMPTROLLER'S CERTIFICATE) OFFICE OF COMPTROLLER REGISTRATION NO. STATE OF TEXAS I BEREBY 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 special obligation of the City of Corpus Christi, Texas, payable from the revenues pledged to its payment 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) (NO WRITING TO BE MADE HEREON EXCEPT BY THE BOND REGISTRAR OF THE CITY) CERTIFICATE OF REGISTRATION It is hereby certified that, at the request of the holder of the within bond, I have this day registered it as to principal in the name of such holder as indicated in the registration blank below and on the books kept by me for such purpose. The principal of this bond shall be pay- able only to the registered holder hereof named in the below registration blank or his legal representative, and this bond shall be transferable only on the books of the Bond Registrar and by an appropriate notation in such registration blank. If the last transfer recorded on the books of the Bond Registrar and in the below registration blank shall be to bearer, the prin- cipal of this bond shall be payable to bearer and it shall be in all respects negotiable. In no case, shall negotiability of the coupons attached hereto be affected by any registration as to principal. NAME OF REGISTERED HOLDER DATE OF REGISTRATION SIGNATURE OF REGISTRAR Trustee AND WHEREAS, the execution and delivery of this supple- ment have been duly authorized by the City Council of the City of Corpus Christi and all acts and things required to be done precedent to and in the execution of this Supplement and precedent to and in the execution of said Bonds, have been done and performed in regular and due time, form and manner as required by the Constitution and Laws of the State of Texas, and the Series 1960 Bond Ordinance; NOW THEREFCRE, in order to secure the payment of prin- cipal of and interest on the Bonds according to their tenor and effect, and the terms of the Deed of Trust and this Supplement, and to secure the per- formance of the covenants and obligations contained in the Deed of Trust and in this Supplement, and in consideration of the acceptance by the Trustee of the trust hereby created, and of the purchase and acceptance of said Bonds by the holders thereof, and of One Dollar ($1.00) in hand paid by the Trustee to the City upon the execution and delivery of this Supplement, the receipt whereof is hereby acknowledged, the City has executed and delivered this Supplement with the effect that all of the properties, revenues, rights and the franchise heretofore granted, bargained, sold, conveyed, assigned, transferred, warranted, mortgaged, pledged and set over to the Trustee under and by virtue of the Deed of Trust, are hereby declared by the City to be for the use and benefit of the Series 1960 Bonds in like manner and with like efficacy as for the use and benefit of the Series 1953 Bonds, the Series 1954 Bonds, the Series 2 of 1954 Bonds and the Series 1955 Bonds, in such manner that said pledged revenues, liens and franchise, are for the equal and pro- portionate benefit, security, and protection of all Bonds of all series and the interest coupons appurtenant thereto as well as for bonds and interest coupons hereafter to be issued under and secured by the Deed of Trust, within - 10 - , t the amounts and under the conditions expressly prescribed by the Deed of Trust, without priority or distinction as to lien or otherwise of any Bond over any other Bond, or over any other bond properly issued under the Deed of Trust by reason of priority in issuance or negotiation thereof, or by reason of the date or dates of maturity thereof, or for any other reason whatsoever, so that each and ell of said Bonds and bonds heretofore issued or hereafter to be issued as aforesaid shall have the same rights, lien and Privileges under the Deed of Trust. This Supplement further witnesseth, that the City has agreed and covenanted, and does hereby agree and covenant with the Trustee and the respective holders from time to time of such Bonds and coupons, as follows: ARTICLE I FORM AUTHENTICATION REGISTRATION AND ISSUANCE OF BONDS Section 1.01. The Bonds and the coupons attached there- to shall be in substantially the forms hereinbefore recited, and shall be issued in the aggregate principal amount of One Million Nine Hundred Sixty Thousand ($11960,000.00) Dollars. All Bonds to be secured hereby shall be executed by the imprinted facsimile signature of the Mayor of the City, shall be attested by the imprinted facsimile signature of the City Secretary, Shall have the corporate seal of the City impressed thereon, and when so signed and sealed, the Bonds shall be submitted to the Attorney General of the State of Texas for approval and to the State Comptroller for registration. After the said Bonds have been approved by the Attorney General and register- ed by the State Comptroller, they shall be delivered to the Trustee for authentication and delivery to the City as provided in the ordinance authorizing the issuance of the Bonds and authorizing this Supplement. Section 1.02. In case aqy officer or officers who shall have signed any of the Bonds shall cease to be such officer or officers of the City after delivery of such Bonds to the Trustee, but before the Bonds so signed shall have been actually authenticated and delivered to the pur- chaser thereof, such Bonds may nevertheless be authenticated and delivered as though the person or persons who signed and sealed such Bonds had not ceased to be such officer or officers of the City. - 11 - Section 1.03. The coupons to be attached to the Bonds shall be signed by the facsimile signatures of the Mayor and City Secretary in the office at the time of the execution of the Bonds, and delivery of such Bonds thereafter shall be valid for all purposes even though one or both of said officials shall have ceased to hold office at the time of delivery. Prior to the authentication of Bonds under this Deed of Trust all matured coupons thereto attached shall be detached and cancelled and such cancelled coupons shall be delivered to the City Secretary. Section 1.014. Only such of the Bonds as shall have endorsed thereon the duly executed certificate of the Trustee substantially in the form hereinabove set forth shall be entitled to any lien or benefit hereunder, but such certificate of the Trustee upon any Bond shall be con- clusive evidence that such Bond has been duly authenticated and delivered hereunder and that the holder is entitled to the benefit of the trust hereby created. Section 1.05. In case any Bond issued hereunder with the coupons appertaining shall become mutilated or be lost, stolen or destroyed prior to the payment thereof, a new Bond, including coupons, of like tenor and date and bearing the same number may, at the discretion of the City and the Trustee, to the extent permitted by law, be executed, certified and de- livered either in exchange for and upon cancellation of the mutilated Bond and its coupons, or in substitution for the Bond or coupons lost, stolen or destroyed, but such exchange or substitution shall be made only upon receipt of satisfactory evidence of loss, theft, or destruction of such Bond and its coupons, proof of ownership thereof, satisfactory indemnity to the Trustee and the City, and payment of the cost of preparing such bond and coupons. ARTICLE II PROOF OF COMPLIANCE WITH PREREQUISITES TO ISSUANCE OF BOA Section 2.01. The City covenants that at the time or prior to the time it will submit to the Trustee any of the bonds for authenti- cation it will furnish to the Trustee in the form prescribed by Section 2.05 of the Deed of Trust evidence that all of the conditions precedent to the issuance of "Additional Bonds" authorized under said Section have been met - 12 - i and that under the Deed of Trust and the act of the Trustee in authenticating said Bonds shall be conclusive of the authority of the City to issue the Bonds, and that said requirements and conditions have been met. AP .TICLE III COVENANTS AS TO ____ IT.ION OF FLUIDS Section 3.01. The City covenants that it is not delin- quent but that it is current in the performance of all of its obligations assumed under Article V of the Deed of Trust as to the establishment of the several funds therein provided and as to the pavments required to be made by the City into said several funds. ARTICLE IV APPLICATION OF REVENUES REMITTANCE OF PJDIDS TO BANKS OF PAYMENT Section 4.01. All of the provisions of Article V of the Deed of Trust are hereby confirmed as being applicable to the Bonds. Section 4.02. In the event that the Bonds and coupons are made payable at any bank other than or in addition to the Trustee, it shall be the duty of the Trustee at least 10 days prior to any interest pay- ment date, to make remittance to such bank or banks out of moneys in its possession available for the purpose an amount sufficient to pay such in- stallment of interest or such installment of interest and principal as the case may be. ARTICLE V POSSESSION OF MORTGAGED PROPERTY Section 5.01. The rights reserved to the City and the duties assumed by the City under Article VII of the Deed of Trust, so long as any of the Series 1953 Bonds are outstanding, shall remain effective like- wise so long as any of the Series 1954 Bonds, any of the Series 2 of 1954 Bonds, any of the Series 1955 Bonds and any of the Series 1960 Bonds are out- standing. ARTICLE VI DEFAULTS AND REMEDIES Section 6.01. All of the provisions contained in Article VIII of the Deed of Trust (which is captioned "Defaults and Remedies ") shall - 13 - be interpreted as applicable not only to the Series 1953 Bonds, but with like effect as applicable to the Series 1954 Bonds, the Series 2 of 1954 Bonds, the Series 1955 Bonds and the Series 1960 Bonds. In determining whether the holders of minimum percentage of Bonds shall have consented to or requested any action under said Article the Bonds of all Series shall be considered. ARTICLE VII GENERAL PROVISIONS Section 7.01. All of the provisions of Article XII of the Deed of Trust (captioned "General Provisions ") shall be interpreted as applicable not only to the Series 1953 Bonds, but with like effect as appli- cable to the Series 1954 Bonds, the Series 2 of 1954 Bonds, the Series 1955 Bonds and the Series 1960 Bonds. ARTICLE VIII RENDERING ALL PROVISIONS OF DEED OF TRUST APPLICABLE TO SERIES 1960 BONDS UNLESS CLEARLY INAPPLICABLE Section 8.01. Unless the context of a given section of the Deed of Trust shows clearly that it must be inapplicable to the Series 1960 Bonds, or unless the inclusion of such section as so applicable would nullify or render unworkable one or more sections contained in the Supple- ment, each section of the Deed of Trust is hereby declared to be applicable to the Series 1960 Bonds. ARTICLE IX DEFEASANCE Section 9.01. The provisions of Article XIII of the Deed of Trust prescribing the terms and conditions under which title to the pledged properties and rights shall revert to the City shall be interpreted to mean all of the Series 1953 Bonds, all of the Series 1954 Bonds, all of the Series 2 of 1954 Bonds, all of the Series 1955 Bonds, and all of the Series 1960 Bonds. IN WITNESS WHEREOF, the City of Co *pus Christi, Texas, acting through and being duly authorized thereunto by its governing body, the City Council, has caused this Supplement to the Deed of Trust in duiplicate originals to be signed in its name by its Mayor, and its corporate seal to be hereunto affixed, and to be attested by its City Secretary and said Mercantile - 14 - National Bank at Dallas, to evidence its acceptance of the trusts hereby created, has caused its corporate name and seal to be hereunto affixed and this Supplement to the Deed of Trust to be signed by Clarence E. Sample, its Trust Officer, and to be countersigned and said seal to be attested by its Cashier or Assistant Cashier, all as of the day and year first above written. ATTEST: City Secretary. (CITY SEAL) ATTEST: Its Assistant Cashier. (BANK SEAL) CITY OF CORPUS CHRISTI, TEXAS BY Meyor. MERCANTILE NATIONAL BANK AT DALLAS DALLAS, TEXAS, TRUSTEE BY Ita Trust Officer. - 15 - • THE STATE OF TEXAS COUNTY OF NUECES BEFORE M, the undersigned authority, in and for Nueces County, Texas, on this day personally appeared Ellroy King, Mayor, and T. Ray Kring, City Secretary, respectively, of the City of Corpus Christi, Texas, known to me to be the persons whose names are subscribed to the fore- going instrument and known to me to be, respectively, the Mayor and City Secretary of the City of Corpus Christi, a municipal corporation, and each acknowledged to me that he executed the same for the purposes and considera- tion therein expressed and in the capacity therein stated, as the act and deed of said City of Corpus Christi, Texas. GIVEN UNDER My HAND AND SEAL OF OFFICE, this the day of June, 1960. (SEAL) - 16 - Notary Public in and for Nueces County, Texas. THE STATE OF TEXAS COUNTY OF DALLAS BEFORE ME, THE UNDERSIGNED P.UTHORITY, in and for Dallas County, Texas, on this day personally appeared CLARENCE E. SAMPLE, Trust Officer, and , Assistant Cashier, respectively, of MERCANTILE NATIONAL BANK AT DALLAS, known to me to be the persons whose names are subscribed to the foregoing instrument and known to me to be, respectively, the Trust Officer and Assistant Cashier of MERCANTILE NATIONAL BANE AT DALLAS, a corporation, and each acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of said MERCANTILE NATIONAL &414K AT DALLAS, day of June, 1960. (SEAL) GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the Notary Public in and for Dallas County, Texas. - 17 - x - THE STATE OF TEXAS COUNTY OF SAN PATRICIO I, , County Clerk of San Patricio County, Texas, do hereby certify that the foregoing instrument of writing dated on the lst day of June, 1960, with its certificates of authentication, was filed for record in my office on the day of , A. 1960, at o'clock, __. M., and duly recorded this day of , 1960, at o'clock, . M., in the Deed of Trust Records of said County, in Volume I on pages I do further certify that an executed and acknowledged COPY of said instrument was filed in MY office on the day of � 1960, at o'clock, M., as a chattel mortgage. WITNESS W OFFICIAL HAND and seal of office this the day of , 1960. County Clerk, San Patricio County, Texas. (SEAL) - 18 - THE STATE OF TEXAS COUNTY OF JIM WELLS I, , County Clerk of Jim Wells County, Texas, do hereby certify that the foregoing instrument of writing dated on the 1st day of June, 1960, with its certificates of authentication, was filed for record in my office on the day of A. D. Of , , 1960, at o'clock, M., and duly recorded this _ day of , 1960, at o'clock, . M., in the Deed of Trust Records of said County, in Volume , on pages I do further certify that an executed and acknowledged copy of said instrument was filed in my office on the day of 1960, at o'clock, . M., as a chattel mortgage. WITNESS W OFFICIAL HAND AND SEAL OF OFFICE this the day of , 1960. County Clerk, Jim Wells County, Texas. (SEAL) - 19 - THE STATE OF TEXAS COUNTY OF LIVE OAK I, , County Clerk of Live Oak County, Texas, do hereby certify that the foregoing instrument of writing dated on the 1st day of June, 1960, with its certificates of authentication, was filed for record in my office on the day of , A. D., 1960, at o'clock, . M., and duly recorded this day of 1960, at o'clock, . M., in the Deed of Trust Records of said County, in Volume , on pages I do further certify that an executed and acknowledged copy of said instrument was filed in MY office on the day of 1960, at o'clock, _. M., as a chattel mortgage. WITNESS MY OFFICIAL HAND and seal of office this the day of , 1960. County Clerk, Live Oak County, Texas. (SEAL) - 20 - THE STATE OF TEXAS COUNTY OF NocES I, , County Clerk of Nueces County, Texas, do hereby certify that the foregoing instrument of writing dated on the lst day of June, 1960, with its certificates of authentication was filed for record in my office on the day of A. b. 1960, at o'clock, M., and duly recorded this day of , 1960, at o'clock, M., in the Deed of Trust Records of said County in Volume , on pages I do further certify that an executed and acknowledged copy of said instrument was filed in my office on the day of , 1960, at o'clock, _. M., as a chattel mortgage. WITNESS MY OFFICIAL HAND and seal of office this the day of , i96o. County Clerk, Nueces County, Texas. (SEAL) - 21 - • 12. The Supplement and all of the provisions thereof are hereby made a part of this Ordinance. 13. The Series 1953 Bond Ordinance granted to the pur- chaser or purchasers of the City's Waterworks properties at a sale to be made In the event of the default of the City's obligation to pay principal of and interest on the Series 1953 Bonds, a franchise to operate said "waterworks properties for a period of twenty (20) years. As is provided in the Deed of Trust such franchise protects also by a parity of lien and rights the Bonds authorized by this ordinance. 14. (a) The Mayor shall be authorized to take and have charge of all necessary records pending investigation by the Attorney General, and shall take and have charge and control of the bonds herein authorized pending their approval by the Attorney General and registration by the Comptroller of Public Accounts. Upon registration of said bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's certificate of regis- tration prescribed herein to be printed on the back of each bond, and the seal of said Comptroller shall be affixed to each of said bonds. (b) Upon the request of the City the Trustee shall authenticate all or any of the Bonds and shall deliver the authenticated Bonds to the City upon proper receipt. 15. Additional Waterworks System Revenue Bonds may be issued to be secured by a pledge of the revenues and a lien upon the proper- ties of the Waterworks System and upon the franchise of the System (as authorized in the Series 1953 Bond Ordinance) of equal dignity with the pledge and liens securing the First Mortgage Waterworks Revenue Refunding Bonds, Series 1953) the Series 1954 Bonds, the Series 2 of 1954 Bonds and the Series 1955 Bonds, provided that such additional Waterworks Revenue Bonds shall be issued for improvements or extensions or repairs or replacements of and to the Waterworks System or for any one or more or all of such purposes, subject to the limitations contained in Article II of such Deed of Trust, and by Article II Of the Supplement, which Deed of Trust and Supplement are respectively made parts of the Series 1953 and the Series 1960 Bond Ordinances. - 11 - w 16• (1) A special fund is hereby created and designated City of Corpus Christi Waterworks System Construction Fund (herein sometimes called the "Construction Fund "). There shall be deposited to the credit of said Construction Fund all moneys received from the sale of the Bonds, ex- cept that any money received by the City by way of accrued interest on the Bonds shall be deposited in the Interest and Sinking Fund (Section 5.03 of the Deed of Trust); (2) The moneys in the Construction Fund shall be held by the City's Depository hereinafter in this Section 16 sometimes called the "Depository" in trust to be applied to the payment of the cost of the im- provements and extensions of and to the City's Waterworks system, for which the Bonds were authorized, and pending such application in accordance with this Section shall be subject to a lien and charge in favor of the holders of the Bonds and for the further security of such holders until paid out as herein provided; (3) A11 disbursements from the Construction Fund to be used either to pay obligations under contracts or in connection with force account projects in making such improvements and extensions shall be subject to the provisions and restrictions of this Section 16; (4) Before any payments shall be made from the Con- struction Fund the City shall file with the Depository the following: (a) A requisition signed by the Director of Finance and approved by the City Manager stating in respect of each payment to be made: (1) The item number of the payment (2) The name of the person, firm or corporation to whom payment is due; (3) The amount to be paid to such person, firm or corporation; (4) In reasonable detail, the purpose for which the obligation to be paid was incurred. (b) A certificate signed by the Director of Finance and approved by the City Manager attached to the requisition, certi- fying: - 12 - (1) That obligations in the stated amounts have been incurred by the City and that each item thereof is a proper charge against the Con- struction Fund and has not been paid; (2) That there has not been filed with or served upon the City notice of any lien, right to lien, or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the persons, firms or corporations named in such requisition, which has not been released or will not be released simultaneously with the_ payment of such obligation, and (3) That such requisition contains no item representing payment on account of any retained percentages which the Ci +y is at the date of such certificate entitled to retain. (5) A certificate signed by the Engineer in charge of construction certifying his approval of said requisition, and further certi- fying that each such obligation was properly incurred and that insofar as such obligation was incurred for work, materials, equipment or supplies, that such work was actually performed, or such materials, equipment or supplies were actually installed, in or about the construction of improve- ments and extensions of and to the City's Waterworks System. It is further provided that the last or final estimate for improvements and extensions of and to the Waterworks System shall not be paid until same has been approved in writing by the Engineer in charge of construction and said Engineer shall immediately upon approval send a certi- ficate to the City Manager and Depository of such approval; (6) Upon receipt of each requisition and accompanying certificate the Depository shall transfer from the Construction Fund to the credit of a special account in the name of the City to be used exclusively for making disbursements for such improvements and extensions an amount equal to the total of the amount to be paid as set forth in such requisition. Each such obligation against said special account in the Depository shall be paid by check drawn on such special account and signed by the City Manager and the Director of Finance of the City of Corpus Christi, and having the same identi- fying number as the number stated in the requisition for moneys on account of such obligation. Moneys deposited to the credit of such special account in the Depository shall be deemed to be a part of the Construction Fund until 13 - M until checked out as in this paragraph provided. If for any reason the City should decide prior to the payment of any item in a requisition to stop pay- ment of such item, the City Manager shall give notice of such decision to the Depository, and thereupon the City shall return the amount of such item by check drawn on such special account for the credit of the Construction Fund; (7) All requisitions and certificates received by the Depository as required in this Section 16 as conditions of the payment from the Construction Fund shall be retained in the possession of the Depository subject at all times to t2L_ inspection of the City, the Engineer and the agents and representatives thereof; (8) At least once in each twelve months until said Construction Fund shall have been expended the City shall cause an audit to be made by a Certified Public Accountant covering all receipts and money then on deposit with the Depository or on deposit in the special account, and the security held therefor, and all disbursements made pursuant to requisitions filed in accordance with the provisions of this Section, and copies of the audits so made shall be furnished to the City Manager, to the Engineer, and to the Trustee; (9) When the construction of the proposed improvements and extensions has been completed, evidence of that fact shall be filed with the Trustee in the form of a certificate stating the date of such completion, signed by the City Manager, the Director of Finance, and the Engineer, accom- panied by an opinion of the City Attorney stating that the City has acquired or owns title to all of the properties represented by such improvements and extensions and to all land, property rights, rights -of -way, franchises, ease- ments and other interests in lands necessary for their operation, free from all liens or encumbrances, except liens, encumbrances or other defects of title which do not have a materially adverse effect upon the City's right to use such properties for the purposes intended, and that there are no uncan- celled mechanics', laborers', contractors', or materialmen's liens on such properties or on file in any public office where the same should be filed in order to be valid liens against any part of such properties, and that in the -lb - opinion of the signers, the time within which such liens can be filed has expired. After the construction program initially commenced shall have been completed and the fact of such completion has been duly certified as herein provided the City Council shall have the option of directing the Depository to remit to the Trustee the remainder of said Construction Fund to be de- posited in the Reserve Account of the Interest and Sinking Fund established under Section 5.03 of the Deed of Trust, or transferring any balance then remaining to an appropriate waterworks construction account of the City. But the Trustee shall have no responsibility for any failure of the City or the Depository to perform their respective obligations to make such transfer or to perform any other obligations under this Section; (10) Moneys in the Construction Fund shall be secured in the same manner as provided by Section 5.04 of the Deed of Trust for moneys in the Interest and Sinking Fund. Moneys in the special account in the Depository established pursuant to sub - section (6) hereof shall be secur- ed in the manner prescribed by Section 5.07 of the Deed of Trust in reference to moneys to be deposited in the Depository. 17. The sale of the bonds herein authorized to at a price of par and accrued interest to date of delivery, plus a premium of $__ 2_ is hereby confirmed. Delivery of such bonds shall be made to such purchasers as soon as may be after the passage of this ordinance upon payment therefor in accordance with the terms of sale. 18. All ordinances, resolutions and orders or parts thereof in conflict herewith are, to the extent of such conflict, hereby repealed. 19. The fact that the contemplated use of the proceeds of the waterworks revenue bonds are necessary for the orderly development and growth of the City of Corpus Christi, Texas, creates a public emergency and an imperative public necessity requiring the suspension of the Charter Rule providing that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three several meetings of the City Council and the Mayor having 15 - • declared that such public emergency and imperative necessity exist, and having requested that said Charter Rule be suspended and that this ordinance take effect and be in full force and effect from and after its passage, it is accordingly so ordained. v PASSED AND APPROVED Ju 13, 1960. ATTEST Mayor, Cit f / /: Corp Christi, Texas. �"� Secretiary, of Corpus Christi, VV Texas. (CITY SEAL) The foregoing Ordinance, Supplement to the Deed of Trust and form of bond and coupon therein contained have been approved as to form and correctness prior to passage this 13th day June, 19 L -- City Attorn - 16 -