HomeMy WebLinkAbout02263 ORD - 04/27/1948AN ORDINANCE+ 2 2 (-3
AUTHORIZING THE ISSUANCE OF WATERWORKS REVENUE BONDS
FOR THE PURPOSE OF PAYING A MONEY JUDG&= RENDERED AGAINST
THE CITY OF CORPUS CHRISTI, IN THE CASE OF FRED P. HAY"ARD,
ET AL., VS. CITY OF CORPUS CHRISTI, ET AL, DESIGNATED IN
THE COURT OF CIVIL APPEALS FOR THE TENTH SUPREME JUDICIAL
DISTRICT OF TEXAS AS CAUSE NO. 2666, PLEDGING THE NET
REVENUES OF THE CITY'S WATM ORKS SYSTEM AND AUTHORIZING
THE EXECUTION AND DELIVERY OF A DEED OF TRUST ON THE PHYSICAL
PROPERTIES OF SUCH SYSTEM AS DEFINED IN THE ORDINANCE,
INCLUDING THE GRANT OF A FRANCHISE FOR THE OPERATION
THEREOF IN THE EV12JT OF DEFAULT AND SALE UNDER SUCH DEED
OF TRUST; PRESCRIBING THE LDIITATIONS UNDER ?"HICH ADDITIONAL
WATERWORKS REVENUE BONDS MAY BE ISSUED; ORDAINING OTHER MATTERS
RELATING TO THE SUBJECT.
4lffRF.AS, in the suit entitled Fred P. Hayward, et al, vs. City
of Corpus Christi, No. 2666 on the docket of the Court of Civil Appeals for
the Tenth Supreme Judicial District of Texas, final money judgment was render-
ed against the City of Corpus Christi in the amount of One Million Eight
Hundred - Thirty -Three Thousand Five Hundred Fifty -eight and 7/100 Dollars
(312833,558.07). with interest at the rate of 6% per annum thereon from May 5,
1945, because of construction money for the Cityts Waterworks System expended
or advanced by Plaintiffs; and
WHEREAS, the City Council by ordinance passed on February 17,
1948,.authorized notice to be published of its intention to issue Waterworks
Revenue Bonds for the purpose of paying such judgment; and
WHEREAS, such notice was duly published in the CORPUS CHRISTI
PRESS, the official newspaper for the City, in its issues of February 19, 1948,
and Febr^^ua�ry 26, 19/48, as evidenced by an affidavit of publication executed
by `i; �g +�'{'¢, �ynrF , the 45S AAA0M ' ,ed//tlY
of said newspaper, duly on file in the office of the City Secretary, sqb-
stantially in the fora prescribed in said ordinance; and
VNEREAS, on March 5, 1948, the date specified in said notice
for the passage of the ordinance authorizing the issuance of the revenue bonds,
no petition for a referendum election meeting the requirements of law
had been filed which fact is evidenced by an ordinance passed by the City
AA V3
R
Council on March 5, 1948, and no such petition meeting such requirements has
been filed up to the time of the passage of this ordinance; and
VfiTIMAS, the interest on said judgment is accumulating so that
it is not possible to determine the .amount of the judgment as it will exist
on the date of the delivery of such Waterworks Revenue Bonds; and
WHEREAS, the City had adequate authority under the Constitution
and laws of the State of Texas and its Charter, including, but without
limitation, the provisions of Chapter 349, Acts of the 49th Legislature
passed in 1945; carried forward in Vernonis Annotated Civil Statutes of
Texas as Article 1110x;
BE IT ORDAINED BY THE CITY COU14CIL 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 paying the money ,judgment awarded
against the City in the case hereinabove cited in this ordinance, there shall
be issued the Waterworks Revenue Bonds of the City of Corpus Christi, Texas,
in the amount of Two Million Two Hundred Thousand Dollars ($2,200,000.00),
under authority of Chapter 349, Acts of the 49th Legislature, passed in
1945, 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,
all as more specifically hereinafter provided.
3. That said bonds shall be called f'City of Corpus Christi
Waterworks Revenue Bonds, Series 194811, shall be datedt 1, 1948, shall
be in denomination of One Thousand ("1,000.00) Dollars each, and shall be
numbered One (1) to Two Thousand Two Hundred (2,200) both inclusive.
3a. 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
transferable 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.
4. That the bonds shall bear interest a able on eG �"�
p y 1, 1948
and thereafter semi - annually on MW 1 and
Iionobw 1, at such rate or rates not
greater than 4% per annum as may be fixed in a resolution to be adopted by the
City Council after the sale of the Bonds has been made, and to be based on the
rate or rates specified in the bid for purchase of the Bonds which shall have
been accepted by the City.
(a) Each of the Bonds of this issue maturing on and after
JVW-
W 1, 1954, is to be subject to redemption prior to maturity on W 1, 1953
and on interest a pp..=.e.-�
any payment date thereafter to and including Pl�er 1, 1957
solely out of money available in the Redemption Fund created by said Deed of
Trust, at a price of par and accrued interest to the date so fined for re-
demption plus a premium of 4% of the principal amount. Each of the Bonds of
1
this issue maturing on and after 1W 1, 1959 is to be subject to redemption
prior to maturity on-14 1, 1958 and on any interest payment date thereafter out
of any money available to the City at the price effective on such date determined
as follows; Par and accrued interest to the date so fized for redemption plus
Dees...ber
a premium of 3 -1/2% if redeemed on or prior to D� 1, 1960, such premium
to be reduced on � 1, 1961 to 3 %, on 1g 1, 1964 to 2 -1/2%„ on � 1, 1967
JerF
to 2 %, on Mw 1, 1970 to 1 -1/2%, on Mw 1, 1973 to 1 %, and if redeemed on and
afteri� 1, 1976 without premium. Notice of intention to redeem Bonds is to
be published in a financial publication in the City of New York, New York, and
in the official newspaper of the City of Corpus Christi, at least once, not
less than thirty (30) days before the date fixed for redemption, and thirty
(30) days' notice in writing prior to the date fixed for redemption is to be
J
given to the bank or banks of payment. If, by the date fixed for redemption,
funds shall have been made available sufficient to pay any bond so called for
redemption and accrued interest theron plus the premium specified, it shall not
thereafter bear interest. In the event less than all of the bonds outstanding
then eligible for prior redemption •hall be thus called the bonds then proposed
to be red@smedshall be called in the inverse order of their maturities,and if
less than all outstanding bonds of a maturity are called the bonds of such
maturity shall be called by lot.
5. Both principal and interest shall be payable in lawful money
of the United States of America at Mercantile National Bank at Dallas, Dallas,
Texas, upon the presentation and surrender of proper bonds and coupons.
6.
Such bonds shall mature serially as follows:
AQdDS NUMBERS
MATURITY DATES IN7EREST DATES
AMOUNTS
1 t0 40, both incl.
�uNe
1, 1949
$ 40,000.00
41 to 80,
"
1, 1950
;
40,000.00
81 to 120,
121 to 165,
'
1, 1951
OF 1, 1952
40;000.00
166 to 210,
211 to 260,
�' ��
" "
1, 1953
1W
45,000.00
261 to 310,
1, 1954
1, 1955
50,000.00
50,000.00
50,000.00
311 to 360,
1 1955
50;000.00
361 to 415,
416 to 470,
"
"
1 1957
55'000.00
471 to 530,
"
1, 1958
MW 1, 1959
55,000.00
b0, 000.00
531 to 590,
591 to 655,
"
W* 1, 1960
HIr 1, 1961
- 60,000.00
65,000.00
656 to 720,
" "
)Ajjr 1; 1962
65,000.00
721 to 790,
"
Mir 1, 1963
70,000.00
791 to 860,
* 1, 1964
70-000.00
861 to 935,
936 to 1010,
" "
'
WIF 1; 1965
yyw 1, 1966
75,000.00
1011 to 1090,
' "
Wlr 1, 1967
75,000,00
80,000.00
1091 to 1170,
' "
b* 1, 1968
80,000.00
2171 to 1255,
"
Y!6 1, 1969
85,000.00
1256 to 1345,
" "
1, 1970
90,000.00
1346 to 1"0,
u "
1,
iw 19971
95,000.00
1141 to 1 535 ,
li�► 1, 1972
95,000.00
1536 to 1635,
1636 to 1740,
1, 1973
100, 000.0()
1741 to 1850,
'� ^
1, 1974
w 1, 1975
105,o00.co
110;000.00
1851 to 1965,
1966 to 2080,
' "
" "
1W 1, 1976
1, 1977
115,000.00
115,000.00
2081 to 2200,
" n
1, 1978
120,000.00
y
7. That each of such Bonds shall be signed by the Mayor of
Corpus Christi, shall be attested by the City Secretary, shall have the.
corporate seal of the City impressed thereon, and shall be authenticated
by the Trustee in the manner provided in the Deed of Trust for which provision
is hereinafter made. Interest falling due on and prior to maturity shall be
represented by appropriate interest coupons to be attached to such bonds,
which coupons shall bear the facsimile signatures of said Mayor and City Secretary,
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 coupons.
8. That such Bonds, the coupons to be thereto attached and
the endorsements to appear thereon, shall be in substantially the foss
shown in the Deed of Trust hereinafter in this ordinance authorized.
9. 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 which is hereinafter in this ordinance set out in full,
and all of the provisions of said Deed of Trust shall be effective and shall
be applicable to the authorization, issuance and payment of the bonds herein
authorized and to the operation of such System with like force and effect
as though all of said provisions were otherwise then in the Deed of Trust
separately set out in this ordinance.
10. That for the purpose of securing the payment of the bonds
herein authorized, and for the purpose of providing for and 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 System
and the lien of said bonds on the revenues of the System, a Deed of Trust in
substantially the following form and language is hereby authorized to be
executed and delivered on behalf of the City of Corpus Christi:
.5
DEED OF- TRUST
THE STATE OF TEXAS
COUNTY OF NIECES ,
THIS DEED OF TRUST dated as of 1, 1948, by and batvsen 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 (for brevity hereinafter called "CITY "), acting through its Mayor and City
Secretary, duly authorized by an ordinance (hereinafter sometimes called the
"BOND ORDINANCE ") passed by the City Council on April r_, 1948, 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 (for brevity hereinafter called jimUSTEE"),
PARTY OF THE SECOND PART:
W I T N E S S E T H:
WHEREAS, the CITY, for the purpose of paying the money judgment
awarded against the City in the case of Fred P. Hayward, et al vs. City of
Corpus Christi, No. 2666 on the docket of the Court of Civil Appeals for the
Tenth Supreme Judicial District of Texas, has determined to issue a series of
bonds under the authority of the Constitution and Laws of the State of Texas,
including particularly but without limitation Chapter 349, Acts of the 49th
Legislature (hereinafter called the "BONDS"?, and
WHEREAS, the City Council of the City of Corpus Christi, by
ordinance duly passed on the date above mentioned, has provided for the issuance
of bonds for said purpose in the total amount of Two Million Two Hundred
Thousand ($2,200,000.00) Dollars, which bonds are designated as "CITY OF CORPUS
CHRISTI WATERWORKS REVENUE BONDS, SERIES 1948" (hereinafter sometimes called
,I o
the 11BONDS11) are dated iq .c 1, 1948, in the denomination of One Thousand ($1,000.00'.
Dollars each, numbered one (1) to Two Thousand �Two
� Hundred (2,200), both in-
clusive, and are to bear interest payable ece..y pc� 1, 1948, and semi - annually
thereafter on MW 1 and &;& 1 of each year, at the rates showm in the
following maturity tabulation.
WHEREAS, said Bonds are payable as to both principal and interest,
in lawful money of the United States of America, at Mercantile National Bank at
Dallas, Dallas, Texas, and mature serially as follows;
BONDS NWERS
MATURITY DAZES
IMMST RAZES AMOUNTS
1 to 40,
both incl.
is 1, 1949
S 40,000,00
41 to 80,
81 to 120,.
M° 1, 1950
1, 1951
40,000.00
40;000.00
121 to 165,
166 to 210,
^
1, 1952
MW 1; 1953
45,000,00
1 to 260
'� ++
1, 1954
45;000.00
50,000.00
261 to 310,
+
1 1955
'
50,000,00
311 to 360,
MW 1, 1956
50;000.00
361 to 415,
416. to 470,
'
" '
1* 1, 1957
hw 1, 1958
55;000.00
55,000.00
471 to 530,
531 to
655,
"
Mir 1, 1959
60,000.00
60,000.00
591 to
'+ �+
1, 19 1
�!► ,
65;000.00
656 to 720,
'+
1i�d 1, 1962
65,000.00
721 to 790,
"
1, 1963
70,000.00
791 to 860,
+
1* 1, 1964
70,000.00
861 to 935,
936 to 1010,
+'
. 1h- 1, 1965
M* 1, 1966
75,000.00
75,000,00
1011 to 1090,
" '
'W 1, 1967
80,000.00
1091 to 3270,
'
MW 1, 1968
80,000,00
1171 to 1255,
1, 1969
85,000.00
1256 to 1345,
" "
ilia 1, 1970
90,000.00
1346 to 1440,
lli� 1, 1971
95,000.00
7441 to 1535,
1536 to 1635,
' '
1, 1972
1, 1973
95,000.00
1636 to 1740,
jy' 1, 1974
100,000.00
105,000.00
1741 to 1850,
1, 1975
110,000.00
1851 to 1965,
'
1, 1976
115;000.00
1966 to 2080,
" "
1, 1977
115,000.00
2081 to 2200,
"
1, 1978
120,000.00
WHEREAS, the Bonds and the interest coupons and certificates to
appertain thereto, and the form for registration of the Bonds as to principal,
and 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, omissidhs and variations as in this Deed of Trust
provided:
UNITED STALES OF AMERICA
STATE CF TEXAS
COUNTY OF NULCES
CITY OF CORPUS CHRISTI
WATERWORKS REVENUE BOND
SERIES 1948
NO. 11,000.00
THE CITY OF CORPUS CHRISTI, a lawfully created and existing
municipal corporation in Mr'CES COUNTY, TEXAS, out of revenues hereinafter
specified, and from no other source, FOP. VAIDE RECEIVED, hereby promises to pw
to bearer, or, if this Bond be registered as to principal, to the registered
.� V NE
holder thereof, on VW 1, 19_, the principal sum of
ONE THOUSAND DOLLARS
(41,000.00), and, from said revenues to pay interest thereon from the date
hereof, at the rate of ) per centum
rr��e.ee�
be r N
ia
per annum, on li�wmrr 1, 1948, and thereafter semi — annually on W 1 and
ppeee.Erinev
ifs 1 of each year until the principal amount of this Bond shall have been
paid. Both principal of and interest on this Bond are payable in lawful money
of the United States of America, at Mercantile National Bank at Dallas, Dallas,
Texas. Interest falling due on and prior to maturity 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 authenticated issue of Bonds of like
date and tenor, except as to serial number, interest rate, option of prior
redemption, and maturity, issued for the purpose of paying the money judgment
awarded against the City in the case of Fred P. Hayward, et al vs. City of
Corpus Christi, Number 2666 on the docket of the Court of Civil Appeals for
the Tenth Supreme Judicial District of Texas, pursuant to ordinance passed by
the City Council of the City of Corpus Christi, and pursuant to a Deed of Trust
of even date herewith by and between the CITE OF CORPUS CHRISTI and MERCANTILE
NATIONAL BANK AT DALLAS, DALLAS, TEXAS (Hereinafter referred to as the "TRUSTEE "),
as Trustee, an original counterpart of which Deed of Trust is 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 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
Bond, to all the provisions of which Deed of Trust the holder hereof by the
acceptance of this Bond assents.
THIS BOND shall not be deemed to constitute a debt of the City
of Corpus Christi or a pledge of its faith and credit, but shall be payable 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 obli-
gation out of any funds raised or to be raised by taxation. 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, replace -
went, betterment and interest charges, and for an Interest and Sinking 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.
(Each of the Bonds of this issue maturing on and after W 1, 1954,
1 0
subject to redemption prior'to maturity im on 1, 1953 and on any interest
��
payment date thereafter to and including i�i1R mil, 1957 solely out of money
available in the Redemption Fund created by said Deed of Trust, at a price of
9
par and accrued interest Jo the date so AW t6f rddemption plus a premium
of 4% of the principal amount. Each of the Bonds of this issue maturing on
and after W 1, 1950 is subject to redemption prior to maturity on'U 1,
1958 and on any interest payment date thereafter out of money available to
the City it the price effective on such date determined as follows; par
and accrued interest to the date so fixed for redemption plus a premium of
3 -1/2,$ if redeemed on or prior to !*' b ,
iir�iR 1, 1960, such premium to be
reduced on'��� j1
1 �•^^_
iYp 1, 1961 to 3$, on , 1964 to 2 -1/2%, on-W 1, 1967 to 2 %,
Svae
on &W 1, 1970 to 1 -1/2%, on u¢ 1, 1973 to 1 %, and if redeemed on and after
lra
]fag 1, 1976 without premium. Notice of intention to redeem Bonds is to be
published In a financial publication in the City of New York, New York, and
in the official newspaper of the City of Corpus Christi, at least once, not
less than thirty (30) days before the date fixed for redemption, and thirty
(30) days' notice in writing prior to the date fixed for redemption is to be
given to the bank or banks of payment. If, by the date fixed for redemption,
funds shall have been made available sufficient to pay any bond so called
for redemption and accrued interest thereon plus the premium specified, it
shall not thereafter bear interest. In the event leas than all of the bonds
outstanding then eligible for prior redemption shall be thus called the bonds
then proposed to be redeemed shall be called in the inverse order of their
maturities, and if less than all outstanding bonds of a maturity are called
the bonds of such maturity shall be called by lot.)
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, including particularly Chapter 349, Acts of the 49th legislature
THIS BOND may be registered as to principal only in accordance
with the provisions endorsed hereon,
EACH MCCESSIVE 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 equities 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 thin
bond or any of the coupons from any person for value and without notice,thereby
/o
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 the aforesaid Deed of Trust,
modifications or alterations of the Deed of Trust and any Deed of Trust supple -
mental 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 interest of any such out-
standing Bonds. The Deed of Trust provides for acceleration of the maturities
of all of the Bonds then outstanding in the event of a default.
The City reserves the right to issue additional bonds to the
extent and under the conditions stated subject to the limitations prescribed
in the ordinance authorizing the issuance of this issue of Bonds and in the
Deed of Trust authorized by and uAdel a part of such ordinance. Such additional
Bonds shall be payable from the same source and secux'ed by the same revenues,
Deed of Trust, properties,and pledged franchise, and shall be on a parity with
this issue of Bonds.
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 end in the issuance
of this Bond and the passage of said ordinance and the execution of 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 become valid or obligatory for any purpose until it shall haw been
authenticated by the execution by the Trustee of the certificate hereon endorsed.
IN ''rITNESS WHEREOF, the CITY OF CORPUS CHRISTI has caused this
Bond to be signed by its Mayor and attested by its City Secretary, and the
corporate seal of said City to be impressed hereon, and has caused the coupons
hereto attached to be executed with the facsimile signature of said officials,
J..'e
all as of VW 1, 1946.
Mayor, City of Corpus Christi, Texas.
ATTEST:
City Secretary, City of Corpus Christi, Te xas,
(CITY SEAL)
(FORM OF COUPON)
NO.
On the let day of 19 , the City of
r3orpus Christi, Texas, Nueces County, Texas, will pay to bearer at the
Mercantile National Bank at Dallas, Dallas, Texas, the sum of
Dollars ($ ), in lawful money of the United
States of America (unless the Bond to which this coupon is attached is previously
called for redemption as therein provided and provision for the redemption
thereof made)* payable out of the revenues specified in the Bond to which this
coupon is attached, for the semi - annual interest in that amount then due on its
waterworks Revenue Bond, Series 1948, and numbered The holder
of this coupon shall never have the right to demand payment thereof out of any
funds raised or to be raised by taxation,
ATTEST:
City Secretary.
Mayor.
( ^Note: This parenthetical provision shall be inserted only in Bonds which the
City has the right to redeem prior to maturity and while such option exists.)
(TRUSTEE'S CERTIFICATE)
This Bond is one of the Bonds described in the within
mentioned Deed of Trust.
MERCANTILE NATIONAL BMIK AT DALLAS,
DALLAS, TEXAS
Trustee,
BY
Authorized Officer.
(FCRM OF COMPMOLLER'S CERTIFICATE)
OFFICE OF COMPTROLLER
STATE OF TEXAS
Registration No.
I HEREBY CERTIFY that there is on file and of record in my
office a certificate of the Attorney General of the State of Texas, to the
effect that this Bond has been examined by him as required by law, and that he
finds that it has been issued in conformity with the Constitution and Laws of
the State of Texas, and that it is a valid and binding special obligation of
is
the City of Corpus Christi, Tbxas, 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.
(MAL)
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts of the
State of Texas.
(NO WRITING TO BE MADE HEREON EXCEPT
BY ME 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 payable 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 principal of this bond shall be
payable to bearer and it shall be in all respects negotiable. In rib case, shall
negotiability of the coupons attached hereto be affected by any registration as
to principal.
NAME OF REGISTERED HOLDER DATE ..OF REGISTRATION SIGNAnM3 OF REGISTRAR
Trustee
AND WHEREAS, the execution and delivery of this Deed of Trust
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 Deed of Trust 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 ordinance hereinbefore
mentioned;
NOW TBEREFCRE, in order to secure the payment of principal of
and interest on the Bonds according to their tenor and effect and the terms of
this Deed of Trust, and to secure the performance of the covenants and cbligatioa:,
herein contained, and in consideration of the acceptance by the Trustee of the
trust hereby created, of the purchase and acceptance of the 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 Deed of Trust, the receipt whereof is
hereby acknowledged, the City has executed and delivered this Deed of Trust and
has granted, bargained, sold, conveyed, assigned, transferred, warranted,
mortgaged, pledged and set over, and by these presents does grant, bargain, sell,
convey, assign, transfer, warrant, mortgage, pledge and set over unto the Trustee
and its successors in trust forever, subject to the terms of this Deed of Trust,
the following property: All of the waterworks system of the City including all
properties, real and personal, and everything pertaining thereto now owned or
hereafter acquired, used or useful in connection with the storing, protection,
production, filtration, purification, . transmission, supply, and distribution
of water by and for the City, together with the revenues to be realized from
the operation of such properties, after payment of the expenses of maintenance
and operation as hereinafter in this Deed of Trust provided, hereinafter some-
times called the "System'-, together vdth an operating franchise for the benefit
of a purchaser of the System if sold under this Deed of Trust after default as
hereinafter provided, the properties and rights comprising the system and such
pledged franchise, hereinafter sometimes called the "Trust Estate." Included
among the properties thus conveyed in trust, the following are described for
greater certainty, but without the intention of limiting the general description
hereinabov given, to -wit:
A. Lake Corpus Christi
The reservoir constituting the primary water supply of the
City, situated on the Nueces River approximately 30 miles Northwest of the City,
in the Counties of san Patricio, Jim ',Yells, and Live oak, Texas, on lands, to
which the City owns necessary easements and flowage rights and in certain
instances the fee simple title, described in conveyances listed briefly as
follows:
1217.7 acres of land out of the S. G. Miller Ranch, (Patrick
Nevan and Ed J. McGloin Grants), being the same land described in easement deed
dated July 31, 1929, from Natalie M. Collins, joined by her husband, B. F.
Collins, to the City of Corpus Christi, 'Texas, and which said deed is recorded
in Volume 93, page 223 -226, Deed Records of San Patricio County, Texas.
925.86 acres of land out of the S. G. Miller Ranch, (Patrick
Nevan and Ed J. McGloin Grants), being the same land described in easement deed
dated July 31, 1929, from D. B. Miller, joined by his wife, Zepha L. Miller,
to the City of Corpus Christi, Texas, and which said deed is recorded in Volume
33, page 319, Deed Records of Live Oak County, Texas.
902.53 acres of land out of the S. G. Mi11erRanch, (Patrick
Nevan and Ed J. McGloin Grants), being the same land described in easement deed
dated July 31, 1929, from H. D. Miller, joined by his wife, Bonita G. Miller,
to the City of Corpus Christi, Texas, and which said deed is recorded in
Volume 33, page 327, Deed Records of Live oak County, Texas.
73.85 acres of land out of the John McMullen Grant, being
the same land described in easement deed dated July 3, 1928, from T. G. Parr
to the City of Corpus Christi, Texas, and which said deed is recorded in -
Volume 30, page 613, Deed Records of Live Oak County, Texas.
49.37 acres of land out of the James McGloin Grant, being the
same land described in easement deed dated October 4, 1928, from V. B. Powers
to the City of Corpus Christi, Texas, and which said deed is recorded in
Volume 30, page 618, Deed Records of Live Oak County, Texas.
/3-
11116 acres of land out of the John McMullen Grant,
being the same land described in easement dead dated April 5, 1928, from
H. Roos and R. C. Roos, to the City of Corpus Christi, Texas, and which
said deed is recorded in Volume 29, page 41, Deed Records of Live Oak
County, Texas.
77.27 acres of land out of the James McGloin Tract,
being the same land described in easement deed dated February 11, 1928,
from Mary B. McGuffin, et al, to the City of Corpus Christi, Texas, and
which said deed is recorded in Volume _.LL, page /S!y, Deed Records of
Live Oak County, Texas.
88.06 acres of land out of the Maria Bridget Kivlin
Grant, being the same land described in easement deed dated August 3, 19283
from Joe Ramage and wife, to the City of Corpus Christi, Texas, and which
said deed is recorded in Volume 31, page 7, Deed Records of Live Oak County,
Texas.
36.18 acres of land out of the Maria Bridget Kivlin
Grant, being the same land described in easement deed dated September 19,
1928, from Mrs. J. B. Dunning, to the City of Corpus Christi, Texas, and
which said deed is recorded in Volume 30, page 636, Deed Records of Live
Oak County, Texas.
385.56 acres of land out of the George VT. Lewis Survey,
tieing the same land described in easement deed dated January 31, 1928, from
A. M. Erskine, to the City of Corpus Christi, Texas, and which said deed is
recorded in Volume 28, page 260, Deed Records of Live Oak County, Texas.
1805.60 acres of land out of the Casa Blanca Grant to
Juan de la Garza Montemayor in'Jim Wells County and Delgado Original Survey
in San Patricio County, being the same land described in easement deed dated
betoiser '3, 1927; from Wallis D; Wade, to the City of Corpus Christi, Texas
and which said deed is recorded in Volume 32, page 184, Deed Records of
Jim Yrells County, Texas, and Volume 88, Page 151, Deed Records of San Patricia
County, Texas
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53.00 acres of land out of the Patrick Nevan Grant, being the
same land described in easement deed dated January 16, 1928, from H. M. Wurzbach,
to the City of Corpus Christi, Texas, and which said deed is recorded in Volume
28, page 257, Deed Records of Live Oak County, Texas.
220.79 acres of land out of the Ed J. McGloin Grant, being the
same land described in easement deed dated November 2, 1927, from T. M. Luther,
to the City of Corpus Christi, Texas, and which said deed is recorded in
volume 88, pages 10-143, Deed Records of San Patricio County, Texas.
84.75 acres of land out of the Ed J. McGloin Grant, being
the same land described in easement deed dated January 17, 1928, from H. P.
Brown, to the City of Corpus Christi, Texas, and which said deed is recorded
in Volume 88, pages, 346 -349, Deed Records of San Patricio County, Texas,
650.00 acres of land out of the Ed J. McGloin Grant, being
the same land described in easement deed dated December 1, 1927, from V. G.
Miller, et al, to the City of Corpus Christi, Texas, and which said deed is
recorded in Volume 88, pages 143-147, Deed Records of San Patricio County,
Texas.
83.01 acres of land out of the William J. Cannon Grant,
being the same land described in easement deed dated December 22, 1927, from
W. F.Mo Whorter, to the City,of Corpus Christi, Texasi and which said deed is
recorded in Volume 28, page 123, Deed Records of San Patricia County, Texas.
922403 acres of land out of part of the S. G. Miller Ranch,
(Ed J. McGloin and Patrick Nevan Grants) being the same lend described in
easement deed dated April 29, 1929, from Callie Miller Freeman and husband,
D. L. Freeman, to the City of Corpus Christi, Texas, and which said deed is
recorded in Volume 32, page 66, Deed Records of Live Oak County, Texas, and in
Volume 92, pages 207 -211, Deed Records of San Patricio County, Texas.
918.00 acres of land out of the Ed J. McGloin Grant, being
the same land described in easement deed dated October 4, 1927, from Zenna H.
Coffin, joined by her husband, A. B. Coffin, and Mrs. S. C. Miller, to the
City of Corpus Christi, Texas, and which said deed is recorded in Volume 88,
pages 137 -140, Deed Records of san Patricio County, Texas.
17
164,89 acres of land out of the Ed J. McGloin Grant, being
the same land described in easement deed dated October 19, 1927, from J. A.
Henderson, to the City of Corpus Christi, Texas, and which said deed is
recorded in Volume 93, pages 77 -78, Deed Records of San Patricio County, Texas.
55:00 acres of land out of the Patrick Nevan Grant, being the
same land described in easement deed dated October 20, 1928, from J. H. Hinnant,
et al, to the City of Corpus Christi, Texas, and which said deed is recorded
in Volume 31, page 417, Deed Records of Live Oak County, Texas.
29.49 acres of land out of the John McMullen Grant, being the
same land described in easement deed dated May 4, 1928, from William Whalen,
et al, to the City of Corpus Christi, Texas, and which said deed is recorded
in Volume 29, page 445, Deed Records of Live Oak County, Texas.
131.74 acres of lard out of the George W, Lewis Grant or
Survey, being the same land, described in easement deed dated June 16, 1926, from
A. C. Erskine, to the City of Corpus Christi, Texas, and which said deed is
recorded in Volume 30, page 20, Deed Records of Live Oak County, Texas.
282.58 acres of land out of the Maria Bridget Kivlin Grant
or Survey, being the same land described in easement deed dated November 10,
1928, from Boothe, Hampton and Boothe, to the City of Corpus Christi, Texas,
and which said deed is recorded in Volume 30, page 629, Deed Records of Live
Oak County, Texas.
50.35 acres of land out of the Browne and Kivlin Grant, being
the same land described in easement deed dated September 22, 1928, from
Josephine Peck, to the City of Corpus Christi, Texas, and which said deed is
recorded in Volume 30, page 608, Deed Records of Live Oak County, Texas.
30.00 acres of land out of the Maria Bridget Kivlin Grant,
being the same land described in easement deed dated November 10, 1928, from
Ross Boothe, to the City of Corpus Christi, Texas, and which said deed is
recorded in Volume 30, page 624, Deed Records of Live Oak County, Texas.
43.77 acres of land out of the Maria Bridget Kivlin Grant,
being the same land described in easement deed dated July 11, 1928, from
John Nesleney and wife, to the City of Corpus Christi, Texas, and which said
deed is recorded in Volume 31, page 13, Deed Records of liv Oak County, Texas.
90,06 acres of land out of the Maria Bridget Kivlin Grant,
being the same land described in easement deed dated July 17, 1928, from A. B.
Cobb, to the City of Corpus Christi, Texas, and which said deed is recorded
In Volume 31, page 1, Deed Records of Live Oak County, Texas.
15.26 acres of land out of the John McMullen Grant, being
the same land described in easement deed dated January 31, 1928, from Tom L.
said
Webb, to the City of Corpus Christi, Texas, and which /deed is recorded in
Volume 28, page 420, Deed Records of Live Oak County, Texas.
158.58 acres of land out of the John McMullen Grant, being
the same land described in easement deed dated November 24, 1927, from R. J.
sellers, to the City of Corpus Christi, Texas, and which said deed is recorded
in Volume 28, page 116, Deed Records of Live Oak County, Texas.
50.00 acres of land out of the John McMullen Grant, being
the same land described in easement deed dated August 7, 1929, from N. A.
Brown and wife, Roma A. Brown to the City of Corpus Christi, Texas, and which
said deed is recorded in Volume 33, page 189, Deed Records of hive Oak County,
Texas.
42.86 acres of land out of the Delgado Grant, being the same
land described in easement deed dated December 24, 1927, from Minnie K. Beall,
to the City of Corpus Christi, Texas, and which said deed is recorded in
Volume 30, page 462, Deed Records of live Oak County, Texas, and in Volume 93,
pages 579 -582, Deed Records of San Patridio County, Texas.
20.74 acres of land out of the Delgado Grant, being the same
land described in easement deed dated October 20, 1928, from Kate Grimes Jones,
to the City of Corpus Christi, Texas, and whx h said deed is recorded in
Volume 31, page 17, Deed Records of Live Oak County, Texas.
37.30 acres of land out of the John McMullen Grant, being
the same land described in easement deed dated February 25, 1928, from F. S.
Sellers, to the City of Corpus Christi, Texas, and which said deed is recorded
in Volume 29, page 46, Deed Records of Live Oak County, Texas.
51.96 acres of land out of the James McGloin Grant, being the
same land described in easement deed dated January 30, 1928, from E. S. Adair
and wife, W. A. Adair, to the City of Corpus Christi, Texas, and which said
Deed is recorded in Volume 28, page 417, Deed Records of Live Oak County,Texas.
If
23.29 acres of land out of the J. R. Simmons Grants being the
same land described in easement deed dated September 12, 1929, from B. H.
McCarley and wife, Mary Alice McCarley, to the City of Corpus Christi, Texas,
and which said deed is recorded in Volume 93, pages 471 -474, Deed Records of
San Patricio County, Texas.
211.00 acres of land out of the John McMullen Grant, being the
same land described in easement deed dated February 25, 1928, from R. F. Sellers,
to the City of Corpus Christi, Texas, and which said deed is recorded in
Volume 29, page 42, Deed Records of Live Oak County, Texas.
717.81 acres of land out of the Ed J. McGloin Grant, John
McMullen Grant and Patrick Nev. Grant, being the same land described in
easement deed dated November 24, 1927, from Reeves Brown, to the City of
Corpus Christi, Texdsj and which said deed is recorded in Volume 28, page 473,
Deed Records of live Oak County, Texas.
62x42 acres of land out of the Patrick Nevan Grant, being
the sage land described in easement deed dated March 19, 1928, from Fannie
Braun, to the City of Corpus Christi, Texas, and which said deed is recorded
in Volume 29, page 311, Deed Records of Live Oak County, Texas,
118.06 acres of land out of the Alm. S. Cannon Grant, being
the same land described in easement deed dated February 7, 1928, from J. A.
Stewart, to the City of Corpus Christi, Texas, and which deed is recorded
in Volume 28, page 422, Deed Records of Live Oak County, Texas.
2450.10 acres of land out of the Jose Maria Colenado Grant
and Jane Curry Grant, being the same land described in easement deed dated
December 23, 1927, from Holman Cartwright, to the City of Corpus Christi,
Texas, and which said deed is recorded in Volume 28, page 246, Deed Records
of Live Oak County, Texas.
All of which lands are more fully described by metes and bounds
in such several conveyances, each of which is duly recorded in the County in
which the land affected is situated, all of which conveyances and the record
thereof are hereby incorporated by reference in aid of and for more particular
description.
The impounding dam at such reservoir and all works, appliances,
equipment, buildings, and machinery used in connection therewith to facilitate
the use of the reservoir as a water supply for the City.
zo
H. RIGHT -OF -WAY
All of the rights and easements held or used by the City on
lands, roads, highways and streets traversed by the water supply lines of the
City from Lake Corpus Christi via'the City's Filtration Plant at Calallen,
thence to the connections of the City's distribution system, and to any and
all other points reached by such supply line or lines;
All rights and easements held or used by the City in con-
nection With the use of all other water supply and all of its water distribution_
and service lines.
C. SPECIFIC PLANTS AND STCRACE TANKS .
The filtration plant, storage tanks and reservoirs and pump
stations briefly described and situated on City -owned lots, tracts, or parcels
of land as follows:
(1) SAM RANKIN S=T STORAGE TANK, 250,000 gallons,
Being all of Lots 8 and 9, Block 61, Bluff Portion, situated in the City of
Corpus Christi, Nueces County, Texas.
(2) CALALLEN FILTRATICN PLANT, Being a tract of land lying
between the North bank of the Nueces River and Taxis State Highway No. 9 and
North of Calallen, in Nueces County, Texas, Beginning at the southeast corner
of the City of Corpus Christi; Calallen Filtration Plant Property, said point - -
being in the west right -o£ -way line of State Highway No. 9; thence N. 740
49' W a distance of 567.47' to a point for a corner of this description;
Thence N 160 21' E a distance of 375.51 • to a point for a corner of this
description; Thence S. 890 15' W. a distance of 375' to a point on the east
bank of the Nueces River for a corner of this description; Thence in a north-
easterly direction with the meanders of the Nueces River a distance of 1,855.881
to a point for the northwest corner of this description; Thence No. 740 53' W a
distance of 434' to a point in the west right -of -way line of State Highway No.
9 for the northeast corner of this description; Thence in a southerly direction
with the west right -of -way line of State Highway No, 9 a distance of 1,230.82'
to a point for a corner of this description; Thence N 89015' E a distance of
z/
351 to a point for a corner of this deeptiption; Thence S 10081 W with the
west right -of -way line of said State Highway No. 9 a distance of 800.811 to an
angle point in the west right -of -way line of State Highway No. 9; thence S 30501
E with the west right -of -way line of State Highway No. 9 a distance of 376.061
to the place of beginning, containing 29.633 acres of land.
(3) SAVAM LANE RESERVOIR AND PUMP STATION, Being located in
Nueces County; Texas; and being part of Block 19, Russell Farm Blocks,
Beginning at the southeast corner of the City of Corpus Christi, Savage Lane
Reservoir and Pumping Station property, said point being in the east boundary
line of Savage Lane; Thence N 20 181 E a distance of 361.61 to a point for the
north corner of this description; Thence due west a distance of 417181 to a
point for the northeast corner of this description; Thence S 20 181 W a
distance of 521:31 to a point for the Southeast corner of this description;
Thence due east 417.81 to a point in the east boundary line of Savage Lane
to the southwest corner and beginning of this description.
(4) HEN GARZA PARK RESERVOIR AND PUMP STATION, The beginning
point is located by starting at the northeast comer of the tract of land
conveyed to William J. Robertson by Thisbe Kinney and Marion F. Kinney by
deed, dated August 20, 1885, of record in Volume Q, Page 539, Deed Records of
Nueces County, Texas; Thence with the eastern boundary of the said Robertson
tract S 20 01 E a distance of 400, to a point for -the beginning of this
description; Thence 5 880 01 W a distance of 435.61 to a point for the north-
west corner of this description; Thence 5 20 01 E a distance of 4001 to a
point for the southwest corner of this description; Thence N 880 01 E a
distance of 435.61 to a point for the southeast corner of this description;
Thence N 20 01 W a distance of 4001 to the northeast corner and beginning of
this description, all lying within the incorporated limits of the City of
Corpus Christi, Texas.
(5) 500,000 GALLON OVERHEAD STEEL STORAGE TANK, The beginning
point is located by starting at the northeast corner of fractional Block 901,
Bay Terrace No. 2, and following the east line of said Block 901 in a south-
erly direction a distance of 2201 for the northeast corner and beginning
of this description; Thence at right angles in a westerly direction to its
zz
intersection with the vest boundary line of said Block 901 for the northwest
corner of this description; Thence with the west boundary line of said Block
901 in a southeasterly direction a distance of 62.96, to a point for the
southwest corner of this description; Thence in an easterly direction parallel
with the north line of this description a distance of 80.191 to a point in the
east boundary line of said Block 901 for the southwest corner of this descrip-
tion; 'thence in a northerly direction with the east boundary line of said
Block 901 a distance of 60, to a place of beginning, being located in the
corporate limits of the City of Corpus Christi, Texas.
D. WATER SUPPLY MAINS, DIS IBUTICH MAINS AND LATERALS,
VALVES, FIRE HYDRANTS, E :
Water supply lines, including supply mains from Lake Corpus
Christi Reservoir to the Calallen Filtration Plant to the City; water mains,
laterals, fire hydrants and related facilities within the corporate limits of
the City and in adjacent areas, including:
525,000 Linear Feet of 2" and 311 mains
234,000.Linear Feet of 4" mains
356,000 Linear Feet of 61t water mains
197,000 Linear Feet of 8" water mains
75,000 Linear Feet of 10" water mains
11,500 Linear Feet of 121, water mains
43,000 Linear Feet of 16." water mains
7,500 Linear Feet of 18" water mains
81,000 Linear Feet of 20" water mains
41 500 Linear Feet of 24" water mains
93,000 Linear Feet of 30" water main -
77,000 Linear Feet of 361, water mains
482 21, valves
75 311 valves
289 4" valves
689 61, valves
392 8-' valves
191 10" valves
46 121' valves
15 16" valves
22 20" valves
14 30" valves
36 36,, valves
864 Fire Hydrants.
E. All other property, real and personal, now owned or here-
after acquired while any of the Bonds or any Additional Bonds permitted under
Article II hereof are outstanding, for or used in connection with the operation
of the System, together with all and singular the tenements, hereditaments and
�' 3
and appurtenances belonging or in any wise appertaining to the aforesaid
properties or any part thereof, and with the reversion or reversions,
remainder or remainders, rents, income and profits of all such properties, and
all of the estate, right, title, interest and claim theretofore whatsoever
at law as well as in equity.
F. All of the income from the System after deduction of the
expense properly chargeable to maintaining and operating the System as pro-
vided in Article 1113 of the Revised Civil Statutes of Texas (1925) as
amended and under Article V of this Deed of Trust.
G. A franchise to operate such System for a period of twenty
years as set forth more particularly in Article X of this Deed of Trust;
TO HAVE AND TO HOID all and singular the said premises and
property, real, personal and mixed, with all and singular their revenues,
rents, issues, profits, privileges and appurtenances, and all the estate,
right, title and interest of the City therein and thereto, unto the Trustee
and its successors in trust forever;
IN TRUST NEVERTHELESS, subject to the provisions of this
Deed of Trust, for the equal and proportionate benefit, security and protect-
ion of all holders of the Bonds and interest coupons issued, or bonds and
interest coupons hereafter to be issued under and secured by this Deed of
Trust, and within the amounts and under the conditions expressly permitted by
this Deed of Trust without preference, priority or distinction as to lien or
otherwise of any Bond over any other Bond by reason of priority in the
issuance �k negotiation thereof or by reason of the date or dates of maturity
thereof, or for any other reason whatsoever, so that each and all of said
Bonds and bonds hereafter to be issued as aforesaid shall have the same rights,
lien and privileges under this Deed of Trust; PROVIDED, HO;'EVER, and these
presents are upon the express condition, that if the City, its successors
and assigns shall well and truly pay or cause to be paid all bonds and
interest coupons now or hereafter secured by this Deed of Trust at the tires
and in the manner stipulated therein and shall well and truly keep, perform
and observe all the covenants and conditions of said bonds and in this Deed
zy
of Trust expressed to be kept, performed and observed by the City and shall
pay to the Trustee all sums of money due or to become due to it in accordance
with the terms and provisions hereof, then this Deed of Trust and the rights
and estate hereby granted shall cease, determine and be void, said the Trustee
in such case on demand of the City, upon payment by the City to the Trustee
of its reasonable fees, costs and expenses, shall execute and deliver to the
City such release as shall be requisite to discharge the lien hereof and to
reconvey or revest in the City the properties hereby conveyed or intended to
be conveyed; OTHER'IISE, this Deed of Trust is to be and shall remain in full
force and effect.
THIS DEED CF TRUST, FURTHER 17ITNESSETR, that the City has
agreed and covenanted and does hereby agree and covenant with the Trustee and
respective holders from time to time of such Bonds and coupons, as follows:
ARTICLE I.
FORM AUTHENTICATION. REGISTRATION AND ISSUANCE OF BOND$
SECTICN 1.01. The Bonds and the coupons attached thereto
shall be in substantially the forms hereinbe£ ore recited, and shall be issued
in the aggregate principal amount of not to exceed Two Million Two Hundred
Thousand Dollars ($2,200,000.00). All Bonds to be secured hereby shall be
signed by the Mayor of the City, shall be attested by 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 registered
by the State Comptroller, they shall be delivered to the Trustee for authenti-
cation as provided in Section 14 of the ordinance authorizing the issuance of
the Bonds and authorizing this Deed of Trust, which is in words and figures
as follows:
,,(a) After said Bonds shall have been executed they shall
be submitted to the Attorney General for his approval, and after such approval
they shall be registered by the Comptroller of Public Accounts.
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(b) Due to the fact that the amount of the judgment in said
case of Hayward V. City of Corpus Christi is in the amount of $1,833,558.07,
plus interest at the rate of 6% per annum from May 5, 1945, until paid, it
cannot be determined definitely at the time of the passage of this ordinance
vdiat amount of Bonds will be required for the payment of the judgment with
interest accrued to the date the Bonds are sold and delivered. Accordingly,
when the Bonds are ready for sale and delivery, the Mayor and City „recretary
shall compute the amount of money which will be necessary to pay the judgment
with interest to the date when delivery is to be made and execute a certificate
showing such amount and designating by number or maturity the Bonds to be
authenticated by the Trustee and to be sold and delivered. The amount of
Bonds thus to be designated shall be as near the amount of the judgment and
interest to the delivery date as is possible because of the denomination of
the Bonds, but not in excese thereof. A copy of such certificate shall be
furnished to the Trustee.
(c) Upon receipt of the certificate mentioned in the pre-
ceding sub - section (b), the Trustee shall authenticate only the Bonds
specified in said certificate. In authenticating such bonds, the Trustee
may rely upon said certificate.
(d) At or immediately after sale and delivery of the
- -
Bonds the judgment with interest shall be paid in Pull The difference, if
any, between the par value of the Bonds thus sold and the amount of the
judgment with interest to date of payment shall be paid from the system Fund.
(e) After full payment of said judgment and interest, the
Bonds not thus sold for the purpose shall be cancelled and not issued."
In case any 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 purchaser 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.
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The coupons to be attached to the Bonds shall be signed by
the facsimile signatures of the Mayor and City Secretary in office at the time
of the signing 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 Truss.
all matured coupons thereto attached shall be detached and cancelled and such
cancelled coupons shall be delivered to the City Secretary.
SECTICN 1.02. 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 conclusive 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 1.03. 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, be executed, certified and delivered 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 sub-
stitution 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.
ARTICIE II.
SPECIAL COVENANTS
THE CITY HEREBY COVENANTS AS FOLLOWS:
SECTION 2.01. The City is dulv authorized under the laws of
the State of Texas to create and issue the Bonds and to execute and deliver
this Deed of Trust and to pledge the revenues pledged hereunder, and that all
necessary action on the part of the City and its City Council for the creation
and issuance of the Bonds and the execution and delivery of this Deed of Trust
z'2
has been duly and effectively taken, and that the Bonds in the hands of the
holders thereof are and will be valid and enforceable obligations of the City
in accordance with their terms.
SECTION. 2.02. The City is lawfully seized and possessed of
the Trust Estate, free and clear of all liens or encumbrances; it has good
right and lawful authority to mortgage and pledge the Trust Estate as provided
in this Deed of Trust; and it will warrant and defend unto the Trustee, its
successors and assigns, for the benefit of the holders and the Trustee under
this Deed of Trust, such authority and title against all claims and demands of
any persons whomsoever.
SECTICN 2.03. At any and all times the City will duly
execute, acknowledge and deliver, or will cause to be done, executed and
delivered, all and every such further acts, deeds, conveyances, mortgages,
transfers and assurances in law as the Trustee shall reasonably require for
the better conveying, transferring, mortgaging, and pledging and confirming
unto the Trustee, all and singular the hereditaments, premises, estates, and
property hereby conveyed, transferred, mortgaged, pledged or assigned, or
intended so to be.
SECTION 2.04. Except to the extent otherwise provided in
this Article 11, the City will not create or volumtarily permit to be created
any debt, lien or charge which would be on a parity with or prior to the lien
of this Deed of Trust on the Trust Estate or any part thereof; and will not
do or omit to do or suffer to be done or omitted to be done any matter or thing
whatsoever whereby the lien of this Deed of Trust or the priority of such lien
as to the Bonds hereby secured might or could be lost or impaired; and that it
will pay or cause to be paid or will make adequate provision for the satis-
faction and discharge of all lawful claims and demands for labor, materials,
supplies or other obligations which if unpaid might by law be given precedence
to or an equality with this Deed of Trust as a lien or charge upon the Trust
Estate or any part thereof, provided, that nothing in this section shall require
the City to pay, discharge or make provision for any such lien, charge, claim
or demand so long as the validity thereof shall be by it in good faith con-
tested, unless thereby, in the opinion of the Trustee, the Trust Estate or
some material part thereof will be lost, forfeited or materially endangered
z'�'
(as to any such item it being the duty of the City to advise with the Trustee
as to such action).
If prior to the payment of all of the Bonds, it shall be
found desirable to refund part of said Bonds under the provisions of any law
then applicable, said Bonds may be refunded with the consent of the holders
thereof, and the refunding bonds so issued shall enjoy complete equality of
lien with the portion of the bonds which is not refunded, and the refunding
bonds in like principal amount shall continue to enjoy in all respects the
lien and right to security under this Deed of Trust enjoyed by the Bonds
refunded thereby, including the priorities enjoyed by such refunded bonds;
provided, however, that if any refunding bond is to bear a higher rate of
interest than the bond to be refunded, or if any refunding bond is to mature
at a date earlier than the maturity date of the outstanding Bond thereby
refunded, then such refunding bond may not be issued without the consent of
the holders of the unrefunded portion of the Bonds, to be evidenced as
provided in Section 11.01 of Article XI hereof. The Trustee shall, subject
to the provisions of this section, authenticate and deliver any refunding
bonds so authorized, upon the written order of the Mayor of the City and upon
receipt by the Trustee oft
(a) A certified copy of the ordinance of the City
Council of the City of Corpus Christi authorizing the issuance
of such refunding Bonds;
(b) A copy of an opinion of the Attorney General
of the State of Texas approving the validity of such refunding
bonds, if such opinion shall then be authorized by the laws of
Texas;
(c) A certificate of the State Comptroller evi-
dencing registration of such refunding Bonds in his office,
if such registration shall then be authorized by the laws
of Texas;
(d) Bonds duly cancelled, in principal amount not
less than the principal amount of the refunding bonds, to-
gether with a certificate executed by the Comptroller of
Public Accounts of the State of Texas to the effect that said
Bonds have been surrendered to and cancelled by him and that
the refunding bonds offered to the Trustee have been registered
by him in lieu of such Bonds. In lieu of the showings in this
subsection (d) hereinabove prescribed, the following procedure
shall be sufficient if.and when authorized by laws then in
effect; t +then it is proposed to refund Bonds which are unmatured
but which have been called for redemption in accordance with
2f
their tenor and effect and applicable provisions of this
Deed of Trust, if the proceeds from the sale of the refund-
ing bonds together with other money available for the purpose,
in an amount sufficient to redeem such called Bonds according
to their tenor and effect, shall have been deposited with the
Trustee to be held by the Trustee for the sole purpose of
redeeming such called Bonds; and in the event that such procedure
is followed if, as and when the called Bonds shall be presented
for redemption they shall be paid by the Trustee in accordance
with the call for redemption, shall be cancelled by the Trustee
and shall not be reissued nor shall they be the basis there-
after of additional Refunding bonds.
(e) If required by the Trustee, an opinion by
counsel acceptable to the Trustee that such refunding bonds
have been legally authorized and, upon delivery thereof
pursuant to the terms of this section, will have become
effectively subrogated to the rights of the Bonds refunded
thereby and entitled to be secured by the lien of this Deed
of Trust.
All Bonds received by the Trustee in exchange for refunding
bonds and all Bonds redeemed and paid under the provisions of this section
shall be by the Trustee cancelled and delivered to the City Secretary of said
City.
To accomplish the issuance of refunding bonds, as permitted
by this Section 2.04, an extension of this Deed of Trust, or an amendatory
or supplemental Deed of Trust may be executed by the City and the Trustee
without the procedure required by Article XI hereof.
SECTION 2.05. Additional Bonds. The City of Corpus Christi
reserves the right to issue additional bonds (hereinafter called "Additional
Bonds ") %Bich, along with the Bonds shall, when issued, be secured ratably
by a first lien on the Trust Estate (including the pledged revenues.) Addi-
tional Bonds may be issued only 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. Additional Bonds may be issued from time to time. The
right to issue Additional Bonds at any time is subject to the following
limitations and conditions;
(1) Any such Additional Bonds shall be issued pursuant
to an authorizing ordinance duly passed by the City Council which shall
prescribe the date, interest rate or rates, maturity dates and other details
necessary to identify the Bonds, the purpose for which the proceeds of such
Bonds are to be issued and shall provide that they are to be issued pursuant
L?o
to Section 15 of the Bond ordinance authorizing the Bonds and pursuant to
Article II of this Deed of Trust; which is a part of the Bond Ordinance.
The ordinance authorizing Additional Bonds, or the supplement to or amendment
of the Deed of Trust, executed pursuant to such ordinance shall contain
adequate and appropriate provisions assuring the application and use of the
proceeds thereof for the specific purposes set forth in such ordinance, or
supplement to or amendment of the Deed of Trust, and for safeguarding said
funds during the period of construction, or of their use, including the
escrow of construction funds.
(2) On each occasion before arty such Additional Bonds are
issued an appropriate supplement to this Deed of Trust shall be executed,
describing such Bonds and by reference making the provisions of this Deed of
Trust applicable thereto. None of the Additional Bonds shall be issued and
sold until they shall have been authenticated by the Trustee.
(3) The City agrees that it will not seek to have the
Trustee authenticate any Additional Bonds until it shall have filed or caused
to be filed with the Trustee:
(a) A certified copy of the ordinance authorizing the
issuance of such Additional Bonds;
(b) A certificate by the Mayor and City Secretary
showing the Net Revenues of the System for each of the three calendar years
next preceding, and for all completed months of the then calendar year;
(c) A certificate by an independent auditor acceptable
to the Trustee, or by a Certified Public Accountant attesting to the correct-
ness of the figures contained in the certificate by the Mayor and City secre-
tary prescribed in paragraph (b) of this subsection (3);
(d) A balance sheet and such additional data as may be
necessary to show the status of each of the Funds created under this Deed of
Trust, certified by said auditor or Certified Public Accountant, effective
at a time not more than 30 days prior to the date of such certificate re-
quired under paragraph (b) of this subsection (3);
(e) An estimate by an independent engineer or engineer-
ing firm employed by the City and acceptable to the Trustee, of the Net
Revenues which will be received from the operation of the System (for the
31
remainder of the then Current bilendar year and for each year thereafter)
from the date of said certificate until the final maturity date of the last
maturing Bond either of this issue or of the Additional Bonds whichever date
is the later.
(4) The Trustee shall not authenticate any Additional
Bonds authorized in such ordinance if within the knowledge of the Trustee
the City shall be in default in any of its obligations under the Deed of
Trust or if the Balance Sheet or other instruments filed by such auditor or
Certified Public Accountant shows that any of the Funds required under the
Deed of Trust, including the Reserve are not current and intact according
to the standards prescribed in this Deed of Trust, and to determine such facts
the Trustee is authorized to require of the City any additional showing con-
sidered by it as necessary.
(5) After having been furnished the evidence required
under this Article the Trustee shall authenticate such Additional Bonds if,
but only if;
(a) The certificates of the Mayor and City Secretary
under paragraph (b) and by the auditor under paragraph (c) of subsection 3
of this section 2.05, show that the Net Revenues of the System for each of the
three calendar years next preceding were equal to at least one and three -
fourths times the highest total amount of principal and interest to become
due in any future twelve -month period on all obligations then outstanding
and then to be issued.
(b) The certificate by such engineer or engineering
firm shows that, in his or their opinion, the Net Revenues of the system
from the date of such certificate until the final maturity date of the last
maturing bond will be equal to at least one and three - fourths times the
amount required to pay principal of and interest on all of the Bonds of this
issue and such Additional Bonds.
(c) payments have been made into the various Funds
as required by Article V of this Deed of Trust, even though the Reserve has
not reached the total required amount.
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(6) The provisions of Article XI for consent by the holders
of the Bonds shall be inapplicable to the exercise of the rights reserved by
the City in this Section 2.05. The exercise of such rights does not require
consent by the holders of the Bonds.
SECTION 2.06. The City will cause this Deed of Trust, and
any and all supplemental Deeds of Trust and instruments of further assurance
at all times to be recorded and filed In such gunner and in the office of the
County Clerk of Nueces County, Texas, and in such other places as may in the
opinion of counsel f6t the Trustee be required by law in order fully to pre-
serve and protect the rights of the bondholders and the Trustee hereunder,
and upon the request of the Trustee it will furnish to the Trustee promptly
after the execution and delivery of this Deed of Trust an opinion of counsel
satisfactory to the Trustee stating that in the opinion of such counsel this
Deed of Trust has been properly recorded and filed so as to make effective
the lien intended to be created thereby, and reciting the details of such
action, or stating that in the opinion of such counsel no such action is
necessary to make such lien effective.
SECTION 2.07. The City will from time to time promptly
pay and discharge all taxes, assessments and other governmental charges, the
lien of which would be prior to the lien hereof, lawfully imposed upon the
Trust Estate or any part thereof or upon the income and proceeds thereof, so
that the lien of this Deed of Trust and the priority of such lien shall at
all times be wholly preserved at the cost of the City and without expense to
the Trustee or the holders of the Bonds, provided, however, that nothing in
this section contained shall require the City to pay or discharge any such
tax assessment or governmental charge so long as the validity thereof be by
it in good faith contested, unless thereby in the opinion of the Trustee or
its counsel the Trust Estate or some material part thereof will be lest,
forfeited or materially endangered.
SECTION 2.06. The City will maintain, preserve and keep
the Trust Estate in a state of good repair, working order and condition and
will not dispose of the Trust Estate in whole or in part except in the manner
and upon the terms provided in Section 7.02 of Article VII hereof.
-.r..w
SECTION 2169+ The City will duly and punctually keep,
observe and perform each and sj6r� term; covenant and condition on its part
to be kept, observed and performed, contained in this Deed of Trust, and will
punctually perform all duties with reference to the Trust Estate required by
the Constitution and laws of the State of Lbxas, and the City will make and
collect such reasonable and sufficient rates and charges for services
supplied by its Waterworks system to the City and to all other Consumers,
as will be fully sufficient to meet all the requirements of this Deed of Trust,
and the proper segregation and application of the revenues of said System.
SECTION 2.10. The City will not grant a franchise for the
operation of any competing Waterworks system in the City of Corpus Christi
until all Bonds issued hereunder (including the Additional Bonds permitted
hereby and bonds to refund the Bonds) shall have been retired.
SECTION 2.11. 'Ihe City will enforce the provisions of its
applicable ordinances requiring meter deposits by its water customers. The
money derived from such deposits will be maintained in a special fund to the
end that each such meter deposit shall serve as security for the payment of
such customer's indebtedness to the City for any water service rendered to
such customer. within its discretion the City may invest all or any part of
such moneys in accordance with applicable law.
ARTICLE III
ACCOUNTS AND BECCJRDS
SECTION 3.01. The City shall keep full and proper books
of records and account, in which full, true and proper entries will be made
of all dealings, business and affairs of the City which in any way kfect
or pertain to the operation of the Trust Estate, and will furnish to the
Trustee each month a statement in reasonable detail showing the earnings and
expenditures of the System, and the application of funds in the system Fund
hereinafter established, for the preceding month. The City shall also
furnish to the Trustee from time to time such other data as to the plant,
properties and equipment comprising a part of the Trust Estate, as the
Trustee shall reasonably request.
As soon after the close of each operating year as may
reasonably be done, the City will furnish to the Trustee and to all bond-
holders who may so request, full audits and reports made by a qualified
Certified Public Accountant or a Public Accountant registered as provided by
Chapter 315, Acts of the 49th Legislature of Texas, 1945, kncln as °PUBLIC
ACCOUNTANCY ACT CF 194511, covering the operations of the System, for the
�y
Preceding operating year, and '9i8,dpg the earnings and expenses of the
properties and the disposition made of all revenues for said operating year
the amounts available for the purposes set forth in Article V hereof, and, in
such detail as the Trustees may request, the assets, liabilities and financial
condition of the ,stem at the close of such operating year, The City at the
same time Shall furnish to the Trustee an estimate of cash receipts and dis-
bursements for the ensuing year do sufficient detail to indicate the probable
total net income from operations and amounts available for the several fund
accounts established herein. If any such audit discloses any discrepancies
or misapplication of funds, the City shall be charged with the duty of
rectifying such misapplications as far as possible and of remedying any
deficiencies in payments hereunder from the first funds available for such
purpose,
The City will at its expense, upon mitten request of the
Trustee, permit the Trustee at all reasonable times, acting by Trustee's
agents, engineers, accountants and attorneys, to examine and inspect the
System, property, books of accounts, records, reports and other data relating
to the Trust Estate and to take copies and extracts therefrom, and will afford
a reasonable opportunity to make any such examination and inspection and will
furnish the Trustee any and all such other information as it may reasonably
request, The Trustee shall be under no duty to make any such examination
unless requested so to do by the holders of twenty -five per cent in principal
amount of the Bonds at the time outstanding and unless such holders shall
have offered the Trustee security and indemnity satisfactory to it against
any costs, expenses and liabilities which might be incurred thereby.
The City shall keep its books and records in the manner
conforming to standard accounting practices as Usually followed by private
corporations owning and operating Alaterxorks Systems.
ARTICIE IV
RMRMCE
SECTIM 4.01. The City covenants and agrees that at all
times it will insure and keep insured all properties subject to the lien
hereof which are of a character usually insured by companies operating Like
Properties, in good and responsible insurance companies, against risks
customarily insured against by companies engaged in a similar business, and
in the same manner and to the same extent, all loss therefrom (except any
1r
single loss which does not exceed $50,000.00) being payable to the Trustee as
its interest shell appear, by th6 customary mortgage or trustee clause to be
attached to or inserted in the policies. The City shall furnish to the Trustee
a list
/of such policies, showing the character of the insurance, the property and
risk covered, the name of the insurance company, and other pertinent details,
and shall keep the Trustee fully informed of any change in or addition to
such list. Upon the written request of the Trustee such policies will be
deposited with it. the Trustee, subject to the provisions of Article IX
hereof, shall be under no obligation or duty to obtain any such schedule
and shall have no duty or responsibility with respect to the sufficiency or
effect of any of such policies of insurance, the renewal thereof, or the
responsibility of the insurers, or with respect to any such schedule or the
matters shown therein, except to display any such schedule to any holder of
Bonds desiring to inspect the same.
In case of loss or damage to any of the insured property,
the proceeds of any such insurance or any one loss amounting to not more
than $50,000.00 shall either be promptly applied by the City to the repair
or replacement of the property destroyed or damaged, or otherwise to the
improvement of the Trust Estate, or if not so applied within one year of the
date of receipt thereof by the City, such proceeds shall be deposited in the
Reserve created by Article V hereof. In any case vdiere the proceeds of any
such insurance shall amount to a sum in excess of $50,000.00 on account of
any one loss, all such moneys shall be promptly deposited with the Trustee
and shall be paid out from time to time to the City upon its written request
signed by the Mayor and City Secretary, and accompanied by a certified copy
of the resolution of the City Council directing such request, and specifying
that certain expenditures have been made or incurred in repairing or replacing
the property so impaired or destroyed, and the amount thereof, and requesting
the payment by the Trustee to the City of an amount not in excess of the
amount of such expenditure. If in the judgment of the City Council and of a
recognized public utility engineer selected by the Council and approved by
the Trustee, the interest of the City and the bondholders will be best served
through the application of all or part of such insurance proceeds to
improvements to the mortgaged property which do not constitute the repair or
replacement of the property for the destruction or impairment of which the
-il6
insurance proceeds are so paid, the amount of such proceeds may be applied by
the city to the making of such improvements, and payment thereof shall be
made to the City by the Trustee as expended in the manner provided in the
last preceding sentence hereof. The Trustee may in its discretion require such
additional proof of the matters certified in such resolution as it may consider
necessary or desirable. Any insurance proceeds not so paid out by the
Trustee within a period of two years from the date of receipt thereof may
be used for the retirement of Bonds purchased in the open market at prices of
not more than the par amount thereof. In the event the monies thus available
are to be used to purchase Bonds in the open market, the City shall exert its
beat efforts to use the monies so available to purchase Bonds at the lowest
price possible in the then existing open market, and any Bonds so contracted
to be purchased shall be presented to the Trustee for payment with such
monies and when paid shall be cancelled and shall not be reissued or refunded.
Any adjustment of any loss under any policy of insurance
made by the City may be consented to by the Trustee without investigation as
to the fairness thereof. The payments of premiums for all insurance policies
required under the provisions of this Section and the payment of premiums for
all types of insurance customarily carried by a private utility company oper-
ating a waterworks system shall be considered to be a maintenance and oper-
ation expense within the provisions of Article V hereof.
SECT1oN 4.02. The City shall obtain and keep continually
in force such employee fidelity and indemnity insurance and Bonds as would
ordinarily be maintained by a private utility company operating a waterworks
system.
ARTICLE V.
APPLICATION OF REVENUES
SECTION 5.01. SYSTEM FUND. There is hereby created and
ordered to be established in the bank, heretofore duly selected by the City
in accordance with the laws of Texas and its Charter, ae "the depository of the
City, hereinafter called the "City Depository ", a fund to be designated the
"System Fund ". There shall be deposited in the System Fund as collected from
and after June 1, 1948, all revenues derived from the operation of the System,
together with all cash to the credit of the ^later Department on that date.
J7
SECTION 5.02. MAIRTENALCE AND OPERATION FOND. There is
hereby created and ordered to be established in the City Depository a fund
to be designated the "Maintenance and Operation Fund." Out of monies available
in the System Fund at the time of the execution of this Deed of Trust there
shall be deposited in said Maintenance and Operation Fund a sum of money
estimated to be sufficient to pay the expense of maintaining and operating the
System for the calendar month of June, 1948, to -wit- 051,000.00. On or be-
fore June 30, 19148, and on or before the 10 day of each month thereafter if
said monies are available at such time, but in no event later than the last day
of said month, while any of the Bonds or any Additional Bonds are outstanding
there shall be withdrawn from the System Fund and deposited in the Maintenance
and Operation Fund an amount of money estimated by the City to be sufficient
to pay the reasonable expenses of operation and maintenance of the System
for the next succeeding calendar month.
SECTION 5.03. There is hereby created and ordered to be
established with the Trustee the City of Corpus Christi'Saterworks Revenue
Bonds Interest and Sinking Fund, hereinafter called "The Interest and Sinking
Fund." On or before July 10, 1948, and on or before the 10 day of each month
thereafter the City shall withdraw from the System Fund and deposit in the
Interest and Sinking Fund an ame,mt of money not less than the total of:
112th of the next installment of principal scheduled to mature of the Bonds
and of any Additional Bonds then outstanding; 16th of the next semi- annual
installment of interest on the Bond" and on any Additional Bonds then outstand-
ing; and an additional amount equal to 259 of both such items, provided,
however, that it shall not longer be necessary to remit such additional amount
of 25% whenever and so long as the following conditions exist:
(a) There shall he— bean no default in the payment
of any Bonds or Additional Bonds or interest thereon;
(b) All of the payments required by this Section 5.03
to have been made into the Interest and Sinking Fund prior to and on such
date, shall have been made;
(o) There shall have been accumulated and shall exist
in the interest and Sinking Fund an amount of money equivalent to all monthly
J.-
installments of interest, and all monthly installments of principal required
by this Section 5.03 to have been paid into the Interest and Sinking Fund
subsequent to the last preceding maturity of interest, and subsequent to the
last preceding maturity of principal, plus an additional amount (herein called
the aReserve % which shall be an amount of money equivalent to the highest
total amount of principal and interest to become due in any future twelve
month period on all Bonds (and any Additional Bonds) than outstanding.
So long as the Reserve contains the amount of money
stipulated in subsection (c) of this section it will be considered to be
intact and while the Reserve is intact the monthly payments to the Interest
and Sinking Fund may be made without the 25m, margin requirement; but if at any
time it becomes necessary to use temporarily any part of such Reserve for the
payment of principal or interest, or such Reserve is otherwise depleted, then
to the extent of such use or derleticr such mor_ey sh_11 be restored by t''
immediate resumption of such margined payments until the Reserve is again
intact.
Out of monies remaining in the System Fund after the initial
payment to the Maintenance and Operation Fund required by Section 5.02 hereof,
there shall be deposited in the Interest and Sinking Fund immediately after
said initial payment has been made, an amount of money equivalent to the install-
ment payment for principal and interest anc the 26' additional az.:ount which
otherwise should be made on or before June 10, 19x8. Any deficiency in said
payment shall be paid out of the first monies available in the System Fund.
The moneys in the Interest and Sinking Fund shall be used
solely for the purpose of paying interest on and principal of the Bonds, and
any Additional Bonds issued pursuant to .article II hereof; provided, that,
when the total amount of money in the Interest and Sinking Fund (including the
Reserve) is equal to the aggregate principal amount of the Bonds(and Ad-
ditional Bonds, if my) outstanding plus all unpaid coupons thereto appertain-
ing unmatured and matured, no further payments need be made into the Interest
and Sinking Fund.
SECTION 5.04. The moneys paid into the Interest and
Sinking Fund shall be continuously secured by a valid pledge of direct
J9
obligations of, or obligations unconditionally guaranteed by the United
states of America, having a par value or market value when less than par,
exclusive of accrued interest, at all times at least equal to the money
deposited in the Interest and Sinking Fund. The Reserve, at the option of
the City, may be invested in direct obligations of, or unconditionally
guaranteed by, the United States of America, and deposited in escrow under
an .escrow agreement, or deposited in the trust department of the Trustee.
If such money is so invested and the bonds deposited in escrow or in the
trust department of the Trustee Bank, the City shall have the right to have
sold through the escrow agent or through the said trust department on the
open market a sufficient amount of said securities in order to met its
obligations of principal and interest in event it does not have sufficient
funds uninvested on hand for such purpose. Under such circumstances, the
Mayor is hereby authorized, ordered and directed to give written notice to
such escrow agent, or the Trustee of the necessity to sell said securities
on the open market. After such sale, the monies resulting therefrom shall
belong to the interest and Sinking Fund and shall be available to pay such
obligation of principal or interest or both principal and interest. In
the event the Reserve is depleted in instances as provided in this section,
it shall be the duty of the City to restore such monies by resuming the
monthly deposit of funds margined by 25% in excess of the actual requirements
for payment of principal and interest as hereinabove in this section provided.
SECTIIN 5.05. There is hereby created and ordered to be
established in the City Depository a fund to be designated as the "Extension
and Improvement Fund. 11 Money in such fund shall be used only for such
extensions of, improvements to, or renewals or replacements of the System,
or for any one or more of said purposes, except as hereinafter in this
Section provided, such as are not ordinarily considered payable as maintenarc-
and operation expenditures. Payments into such fund shall be made and the
money in the Fund shall be used in the following manner:
(a) At all times money in such Fund which shall not
actually be committed under construction contracts shall remain available and
shall be used by the City to prevent or relieve any default in the payment of
the principal of or interest on the Bonds;
ya
(b) At any time when the Extension and Improvement
Fund shall contain not less than $100,000.00 not committed under construction
contracts, any money in e.=ess thereof mays within the discretion of the City
Council, be withdrawn for the purpose and used for the purpose of redeeming
Bonds prior to their maturity in accordance with the redemption provisions
contained in this ordinance and in the Bonds;
(c) On the 10th day of *, 1948, and on the loth
day of each month thereafter, after the monthly payments required to be made
'into the Interest and Sinking Fund have been made, the City shall transfer
from the System Fund to said Extension and improvement Fund not less than
Five Thousand ($5,000.00) Dollars until there shall be accumulated in said
fund the amount of $100,000.00. Whenever said fund shall be diminished below
that amount, said payments shall be resumed.
SECTION 5.06. REDEMPTION FUND. There is hereby created
and ordered to be established in the City Depository a fund to be designated
the IrRedemption Fund. 11 Said Fund shall be used only for the purpose of
redeeming bonds prior to their respective maturities, except that if, at
any time, money in the Interest and Sinking Fund is insufficient to pay an
installment of principal or interest which is about to mature or has matured,
to the extent necessary to supply the deficiency money in the Redemption
Fund shall be transferred to the Interest and Sinking Fund.
(a) when there shall have been accumulated in and
there shall be in the Reserve the total amount required by Section 5.03
hereof for the Bonds and for any Additional Bonds, and there shall have
been accumulated in and there shall be in the Extension and IxProvement Fund
an amount not less than $100,000.00, exclusive of any amounts committed under
construction contracts, and so long as and while such conditions exist, on
or before the 10th day of each month the City shall transfer all of the
amount remaining in the System Fund into the Redemption Fund, or into the
Extension and Improvement Fund, or into both Funds in such proportion as may
be determined by the City Council. And in the absence of an affirmative
determination, 50% of the amount available for such purposes shall be trans-
ferred to each the Extension and Improvement Fund and the Redemption Fund.
(b) Money in the Redemption Fund shall be used by
the City to retire the Bonds prior to their respective maturity dates through
the exercise of the Cityfs option to retire Bonds, to the extent that such
option exists. Money in excess of that which can be used in retiring Bonds
under such option may be used by the City in purchasing and retiring Bonds
at the mast favorable price or prices reasonably obtainable by the City.
Bonds thus redeemed or repurchased shall be cancelled by the City end shall
not be reissued or refunded and shall be submitted by the City to the Trustee
for its inspection. provided, however, that no bonds shall be thus redeemed
unless through such redemption an economy of interest will result to the City.
SECTICN 5.07. All moneys which are to be paid into the
City Depository under the provisions of this Article V shall be secured in
accordance with the laws of the State of Texas applicable thereto, and the
City covenants especially that such moneys shall be continuously secured by
a valid pledge of direct obligations of, or obligations unconditionally
guaranteed by the United States of America, having a par value or market
value when less than par, exclusdve of accrued interest, at all times at
least equal to the total amount of money on deposit in said several Funds
in the City Depository.
SECTICN 5.08. If and when the City from time to time
shall issue Additional Bonds the ordinance authorizing such bonds, or the
supplement or amendment to the Deed of Trust securing such bonds shall
contain adequate and appropriate provisions for payments into the several
Funds created by this Article V so that the security of the Bonds will not
be impaired.
ARTICIE VI
COVENANTS
SECTION 6.01. The City Council hereby covenants and
agrees that it will, at all times while any of the Bonds or Additional Bonds,
or any interest thereon, are outstanding and unpaid, charge and collect for
services rendered by said System rates sufficient to pay all maintenance,
depreciation, replacement, betterment and interest charges and to provide
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an Interest and Sinking Fund sufficient td,pay the interest and principal
of the bonds as such interest and principal mature and any outstanding
indebtedness against the System, as is required by Article 1113, Revised
Civil Statutes of Texas, as amended, Fos` the benefit of the original
purchaser, and for the benefit of any and all subsequent holders of said
Bonds, Additional Bonds, coupons, or any part thereof, and in addition to
all other provisions and covenants in the laws of the State of Texas and
in this ordinance, it is expressly covenanted that the City shall fix and
maintain rates and collect charges for the &6iliti6s and services afforded
by the System, which will provide revenues sufficient at all times:
(a) To pay all operating, maintenance, depreciation,
replacement and betterment charges of the System, as required under Article
1113, Revised Statutes of Texas, as amended;
(b) To establish and maintain the Interest and
Sinking Fund (including the Reserve Account) for the Bonds and for any
Additional Bonds;
Improvement Fund;
(c) To establish and maintain the Extension and
(d) To establish and maintain the Redemption Fund;
(e) To pay all outstanding indebtedness against the
system other than the Bonds, as and when the same becomes due.
SECTION 6.02. No free water service shall be rendered
by the City for any purpose. No such free water service shall be rendered
to the County, the School District or any other public agency. Expressly
the City shall pay into the System Fund annual rentals for each fire hydrant
the sum of $3.00.
ARTICIE VII
POSSESSION OF MOiTGACED PROPERTY
SECTION 7.01. while not in default in the payment of
principal of or interest on any of the Bonds secured hereby, or in respect
to any of the covenants, agreements or conditions in this Deed of Trust
contained, the City shall be permitted and suffered to possess, use and enjW
the Trust Estate and all property and appurtenances, franchises and rights
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conveyed by this Deed of Trust (except money or property, if any, expressly
required to be deposited with the Trustee) and to receive and use the
revenues, rents, issues, income, produce and profits thereof with power in
the ordinary courae of business freely and without let or hindrance on the
part of the Trustee or of the holders of the Bonds, to use and consume
supplies; to alter, repair, dismantle and change the position of any of its
buildings and structures, plants, mains, pipe lines or other property what-
soever (provided that no such change shall impair the lien of this Deed of
Trust upon any such building, structure, plant, main, pipe line, or other
property); to replace and renew any of its equipment, machinery or other
property; and to acquire any and all rights under choses in action and
contracts.
SECTICE 7.02. The City covenants that so long as the
Bonds or any of then. shall be outstanding and except as in this Article
otherwise permitted, it will not sell, lease or otherwise dispose of or
encumber any part of the System or any of the revenue derived therefrom.
The City may, however, from time to time sell any machinery, fixtures,
apparatus, tools, instruments, or other movable property and any materials
used in connection therewith, if the City Council shall determine that such
articles are no longer needed or are no longer useful in connection with
the operation and maintenance of the System and if the proceeds thereof
shall be applied to the replacement of the properties so sold or disposed
of, or shall be placed in the Interest and Sinking Fund or the Redesption
Fund, The City may from time to time sell such real estate as it shall
declare by resolution is not needed or serves no useful purpose in connection
with the maintenance and operation of the system. The proceeds of any sale
of real estate shall be disposed of as hereinabove provided for the proceeds
of the sale or disposal of movable property.
It is provided, however, that not more than $15,000.00
in value of property, real or personal, shall be sold during any twelve
months' period without the consent of the Trustee evidenced by a release
signed by the Trustee. The sale price of such property shall be presumed
to be the value thereof for the purpose of this Section 7.02. In executing
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such release the Trustee may rely upon a certified copy of a resolution by
the City Council of the City declaring that the properties released are no
longer needed or are no longer useful in connection with the operation and
maintenance of the System, but the Trustee may require a certificate of such
facts by an engineer acceptable to it. The Trustee shall incur no liability,
If in any instance, it does not require such certificate.
SECTIW 7.03. The City may, notwithstanding any other
Provisions of this Deed of Trust, lease any of its lands not necessary to
the operation and maintenance of the Systems for any purpose which will not
result in any damage to or diminution of the value of the property leased
or of arp other property of the City and will not in any manner divert,
andan&r or contaminate the City's water supply or water transportation
facilities. The rental to be charged under all such leases shall be not
less than the fair and reasonable rental in relation to the character and
value of the property leased. The Trustee may rely upon declarations
contained in a resolution adopted by the City Council as to the fairness and
reasonableness of such rental consideration. All rentals, revenues, and
receipts derived by the City from soy and all leases so made shall upon
the receipt thereof be deposited with the Trustee for the credit of the
Interest and Sinking Fund or the Redemption Fund.
ARTICLE VIII
DEFAULTS AND REMEDIES
SECTIW 8.01. For the purpose of this Deed of Trust,
the following events are hereby defined as and are declared to be "events
of default,,;
interest on (a) Default in the due and punctual payment of any
any of the bonds and the continuance thereof for a period of
nlrr ®ty (90) days after written notice thereof by the Trustee to each
member of the City Council of the City of Corpus Christi stati
Payment has been demanded and default made; ng that
principal of any of the Punctual
bonds at maturity thereof and hepco�ntinuance thereoi
for a period of ninety (90) days after written notice thereof by the
Trustee tc each member of the City Council of the City of Corpus Christi
stating that payment has been demanded and default made;
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(c) Default in the performance or observance of any
Other of the covenants, agreements or conditions on the part of the City to
be kept, observed and performed contained in this Deed of Trust or in the
bonds, and continuation of such default for a period of ninety (90) days
after written notice thereof by the Trustee to each member of the City
Council of the City of Corpus Christi;
(d) The institution of bankruptcy proceedings, either
voluntary or involuntary, under any state or federal statute, whereby the
City's duty to carry out all of the covenants and agreements in this Deed
Of Trust contained might be in any wise affected.
Any notice herein provided to be given to a member of
the City Council and the City secretary shall be deemed sufficiently given
if sent by registered mail with postage prepaid to the person to be notified.
addressed to him at the post office in the City of Corpus Christi. The
Trustee may give any such notice in its discretion and shall give such
notice if requested so to do by the holders of not less than twenty per
cent (20%) in principal amount of the bonds at the time outstanding.
Wherever "Bonds" are referred to in this article and
in Article %I hereof, the term shall be understood to mean not only all
outstanding Bonds of the issue originally secured hereby, but also the
Additional Bonds issued as authorized by this Deed of Trust and all out-
standing refunding bonds which may be issued under the provisions of this
Deed of Trust in such manner as, to be entitled to the security of this
Deed of Trust on an equality with the Bonds of said original issue.
SECTION 8.02. Upon the happening of any event of
default as defined in Section 8.01 of this Article, the Trustee shall,
but only upon the written request of the holders of not less than sixty
per cent (60%) in principal amount of the bonds then outstanding hereunder,
and upon being indemnified to its satisfaction, by notice in writing to
the City secretary to be sent as provided in Section 8.01 hereof, declare
the principal of all:,ponds then outstanding hereunder to be due and payable
immediately, and upon any such declaration the said principal shall becoma
and be due and payable immediately, anything in this Deed of Trust or in
the said Bonds to the contrary notwithstanding. This provision, however,
is subject to the condition that if at any time after the principal of said
Bonds shall have been declared due and payable and before any sale of the
Trust Estate shall have been made, all arrears of interest upon all such
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Bonds, with interest upon all past due installments of interest at the
rate borne by the Bonds, and all past due principal of the bonds, together
with the reasonable charges and expenses of the Trustee, its agents,
attorneys and counsel, shall be paid by the City and after all other
defaults which may have occurred shall have been remedied or cured to the
satisfaction of the Trustee, then and in every such case the holders of
sixty per cent (60%) in principal amount of the Bonds then outstanding may,
by notice in waiting given to the Trustee, and to the City Secretary in
the manner provided in Section 8.01 of this Article, waive such default ant.
its consequences, and rescind such declaration, but no such waiver or
rescission shall extend to or affect any subsequent default or impair or
exhaust any right or power consequent thereon.
SECTION 8.03. Upon the happening of any event of default
as defined in Section 8.01 of this Article, the Trustee, personally or by
its attorneys or agents, may to the extent not prohibited by law enter
into and upon and take possession of all the Trust Estate and each and
every partthereof and exclude the City and its agents, servants and
employees niolly therefrom, and have, hold, use, operate, manage and
control the same and each and every part thereof, and in the name of the
City or otherwise, as they shall deem best, conduct the business thereof
and exercise the franchises pertaining thereto and all the rights and powers
of the City and use all of the then existing property, materials, current
supplies, stores., and other assets for that purpose, and at the expense of
the Trust Estate from time to time maintain, restore, insure and keep
insured, the properties, plants, equipment and apparatus provided or re-
quired for use in connection with such business, and likewise from time
to time, at the expense of the Trust Estate, make all such necessary or
proper repairs, renewals and replacements and all such useful alterations,
additions, betterments and improvements as to it may seem judicious, and
collect and receive all tolls, earnings, income, rents, issues, profits
and revenues of the same and of every part thereof, and after deducting
therefrom the e2penses of operation and all other proper outlays herein
authorized, and all payments of ,just and reasonable compensation for its
own services, and for the services of its attorneys, agents and assistants,
the Trustee shall apply the residue of the moneys received by the Trustee
as follows:
(a) In case the principal of none of the bonds shall
have become due, to the payment of the interest in default, in order of the
maturity of the installments of such interest, with interest on the overdue
installments thereof at the same rates, respectively, as were borne by
the Bonds on which such interest shall be in default, such payments to be
made ratably to the persons entitled thereto without discrimination or
preference;
(b) In case the principal of any of the Bonds shall
have become due by declaration or otherwise, first to the payment of the
interest in default, in the order of the maturity of the installments thereof,
with interest on overdue installments thereof at the same rates, respectively,
as were borne by the Bonds on which such interest shall be in default, and
next to the payment of the principal of all Bonds then due, such payment
to be made ratably to the persons entitled thereto without discrimination
or preference.
When such payments and such other payment required by
any provision of this Deed of Trust, shall have been made in full and if
no suit to enforce this Deed of Trust shall have been begun or sale made
as hereinafter provided, and if the City shall have complied with all other
provisions of this Deed of Trust as to which the City shall be in default,
the Trustee after making such provision as to it may seem advisable for
the payment of the next maturing installment of interest to fall due upon
the Bonds, shall restore the possession of the Trust Estate (other than any
cash at the time required to be held by the Trustee hereunder) to the City.
SECTION 8.04. Upon the happening of any event of
default as defined in Section 8.01 of this Article, if the principal of all
of the Bonds outstanding hereunder shall have been declared due and payable
as provided in Section 8.02 of this Article, and whether or not remedies
authorized by Section 8.03 of this Article shall have been pursued in
whole or in part, the Trustee may cauee the Trust Estate to be sold, and
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may proceed to protect and enforce the rights of the Trustee and the bond-
holders hereunder in such manner as counsel for the Trustee shall advise,
whether for the specific performance of any covenant, condition, agreement
or undertaking herein contained, or in aid of the execution of any power
herein granted; or for the enforcement of such other appropriate legal or
equitable remedies as may No in the opinion of such counsel be more
effectual to protect and enforce the rights aforesaid. The Trustee shall
take any such action or actions if requested so to do by the holders of at
least sixty per cent (6(X) in principal amount of the Bonds then outstanding
hereunder:
SECTION 8:05: Upon the happening of any event of
default as defined in Section 8.01 of this Article, and if the principal of
all of the outstanding Bonds shall have been declared due and payable as
provided in section 8:02 of this Article, then and in every such case, and
whether or not the remedies authorized by section 8.03 of this Article shall
have been pursued in whole or in part, the Trustee shall, but only upon the
written request of the holders of not less than sixty per cent (00 %) in
principal amount of the Bonds then outstanding hereunder, with or without
entry, sell to the highest bidder the Trust Estate and all right, title,
interest, claim and demand thereto and the right of redemption thereof, at
any.such .place or places, and at such time or tunes and upon such notice
and terms as the Trustee may fix and spaci.fy and as may be required by law.
In case of such sale of any of the property subject to this Deed of Trust,
notice of such sale shall first be given by publication in at least one
newspaper published in Nueces County, at least once a week for four
successive weeks next preceding such sale, and by like publication in at
least one daily newspaper published in the City of New York, New York, and
by the giving of any other notices which may be required by law, and upon
such sale the Trustee may make and deliver to the purchaser or purchasers
a good and sufficient deed or deeds for the same, which sale shall be
perpetual bar both at law and in equity against the City and all persons
and corporations claiming or to claim such properties. No purchaser at
any sale shall -'be bound to see to the application of the purchase money
SV14
or to inquire as to the authorization, necessity, expediency or regularity
of any such sale. Nevertheless, the City if so requested by the Trustee,
shall ratify and confirm any sale or sales by executing and delivering to
the Trustee or to such purchaser or purchasers all such instruments as may
be necessary or in the judgment of the Trustee proper for the purpose which
may be designated in such request.
Such notice of sale shall state that the City has
granted to the purchaser of the mortgaged property a franchise for the
operation thereof for a period of twenty (20) years dating from such
purchase.
SECTION 8A. In the event of any sale, whether made
under the power of sale, hereby granted and conferred or under or by virtue
of judicial proceedings, the whole of the Trust Estate shall be sold in
one lot and as an entirety, unless such sale as an entirety is impossible
or impracticable by reason of some statute or otherwise.
SECTICN 8.07. The Trustee may from time to time ad-
journ any sale to be made by it hereunder by announcement at the time and
place of such adjourned sale, and without further notice or publication
except as otherwise required by law may make such sale at the time and
place to which the same may be so adjourned.
SECTIM 8.08. In case an event of default as defined
in Section 8.01 of this Article occurs, and if all of the Bonds outstanding
hereunder shall have been declared due and payable as provided in section
8.02 hereof, and in case any judicial proceedings is commenced to enforce
any right of the Trustee or of the bondholders under this Deed of Trust
or otherwise, then as a matter of right, the Trustee shall be entitled to
the appointment of a receiver of the Trust Estate and of the earnings,
income or revenues, routs, issues and profits thereof with such powers as
the Court making such appointments may confer.
SECTIM 8.09. In case the Trustee shall have proceeded
to enforce any rights under this Deed of Trust by sale or otherwise, and
such proceedings shall have been discontinued or appealed, or shall have
been determined adversely to the Trustee, then and in every such case the
City and the Trustee shall be restored to their former respective positions
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and the rights hereunder in respect to the Trust Estate, and all rights,
remedies and powers of the Trustee and in the bondholders shall continue
as though no such proceedings had been taken.
SECTICN 8.10. In case of any such sale of the Trust
Estate, any bondholder or bondholders or committee of bondholders, or
Trustee, may bid for and purchase such property and upon compliance with
the terms of sale may hold, retain possession and dispose of such property
as the absolute right of the purchaser or purchasers without further
accountability and shall be entitled, for the purpose of making settlement
or payment for the property purchased, to use and apply any bonds hereby
secured and any interest thereon due and unpaid, whether or not such
interest be evidenced by coupons, by presenting such Bonds and coupons in
order that there may be credited thereon the sum apportionable and applicable
thereto out of the net proceeds of such sale, and thereupon such purchaser
or purchasers shall be credited on account of such purchase price payable
by him or them with the sum apportionable and applicable out of such net
proceeds to the payment of or as credit on the Bonds and coupons so
presented.
SECTION 8.11. The proceeds of any sale of the Trust
Estate, together with any funds at the time held by the Trustee and not
otherwise appropriated, shall be applied by the Trustee as follows:
First: To the payment of the costs, expenses, fees
and other charges of such sale and a reasonable compensation to the Trustee,
its agents and attorneys, and to the discharge of all expenses and liabil-
ities incurred and advances or disbursements made by the Trustee hereunder.
Second: Arty surplus then remaining to the payment of
the whole amount then due or unpaid upon the Bonds issued hereunder and then
outstanding for principal and interest, with interest on overdue principal
and overdue installments of interest at the same rates, respectively, as
were borne by the Bonds whereof the principal or installments of interest
may be overdue, and in case such proceeds shall be insufficient to pay in
full the whole amount so due and unpaid, then to the payment of such
Principal and interest ratably according to the aggregate amount owing on
all Bonds then outstanding without preference or priority, of principal over
interest or of interest over principal,
Third; Any surplus then remaining to the City or whom-
soever shall be lawfully entitled thereto.
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SECTION 8.12. In case of a sale under any of the
foregoing provisions of this Article, whether made under the power of sale
herein granted, or under or by virtue of judicial proceedings, the principal
of all Bonds issued hereunder and then outstanding, if not previously due,
shall immediately thereupon become due and payable, anything in said Bonds
or in this Deed of Trust to the contrary notwithstanding.
SECTION 8.13. The remedies herein conferred upon or
reserved to the Trustee or to the holders of bonds hereby secured are not
intended to be exclusive of any other remedy, but each remedy herein pro-
vided shall be cumulative and shall be in addition to every other remedy
given hereunder or now or hereafter existing, and every power and remedy
hereby given to,the Trustee or to the holders of Bonds issued hereunder
may be exercised from time to time as often as may be deemed expedient.
No delay or omission of the Trustee or of any holder of Bonds issued here -
under to exercise any power or right arising from any default hereunder
shall impair any such right or power or shall be construed to be a waiver
of any such default or to be acquiescence therein.
SECTICN 8.14. Anything in this Deed of Trust contained
notwithstanding, the holders of sixty per cent (60%) in principal amount
of the Bonds hereby secured and then outstanding, shall have the right . by
an instrument or instruments in writing delivered to the Trustee to direct
and control the Trustee as to the method of taking any and all Proceedings
for any sale of any or all of the Trust Estate, or for the appointment of
a receiver, and may at any time cause any proceedings authorized by the
terms hereof to be so taken or to be discontinued or delayed, provided
however, that such holders shall not be entitled to cause the Trustee to
take any proceedings which in its opinion would be unjustly prejudicial to
non - assenting bondholders, but the Trustee shall be entitled to assume th-t
the action requested by the holders of 60% of the then outstanding Bonds
will not be prejudicial to non - assenting bondholders unless such non -
assenting bondholders, in writing, show the Trustee how they will be
prejudiced.
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SECTICI 8.15. No holder of any Bond or coupon issued
hereunder shall have any right as such holder to institute any suit, action
or proceedings for the enforcement of the provisions of this Deed of Trust
or for the execution of any trust hereunder or for the appointment of a
receiver or for any other remedy, hereunder, all rights of action hereunder
being vested exclusively in the Trustee, unless and until such holder shall
have previously given to the Trustee written notice of a default hereunder
and of the continuance thereof, and also unless the holders of the requisite
principal amount of the Bonds then outstanding shall have made written
request upon the Trustee and shall have afforded it a reasonable opportunity
to institute such action, suit or proceeding in its own name, and unless
the Trustee shall have been offered reasonable indemnity satisfactory to
it against the costs, expenses and liabilities to be incurred therein or
thereby and the Trustee for thirty (30) days after receipt of such
notification, request or offer of indemnity shall have failed to institute
any such action, suit or proceeding, it being understood and intended that
no one or more holders of the Bonds shall have the right in any manner
whatever by his or their action to affect, disturb or prejudice the lien
of this Deed of Trust or to enforce any right hereunder except in the
manner herein provided and for the equal benefit of all holders, of such
outstanding Bonds. However, it is further provided that notwithstanding
any other provision contained in this Article or elsewhere in this Deed
of Trust, the holders of not less than sixty per cent (60 %) in principal
amount of the Bonds then outstanding, without previous notice to or consent
by the Trustee, and without joinder by the Trustee, shall have the right
to institute, intervene in or defend any litigation affecting the Bonds.
SECTION 8.16. In any suit or action by the Trustee,
arising under this Deed of Trust or on all or any of the Bonds or coupons
issued hereunder, the Trustee shall not be required to produce such Bond;:
or coupons, but shall be entitled in all things to maintain any such suit
or action without their production.
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SECTION 8.17. If any covenant, agreement, waiver or
part thereof in this Article or elsewhere in this Deed of Trust contained
be forbidden by any pertinent law, or under any pertinent law be effective
to render this Deed of Trust invalid or unenforceable or to impair the lien
hereof, then each such covenant, agreement, waiver or part thereof shall
itself be and is hereby declared to be wholly ineffective and this Deed f
Trust shall be construed as if the same were not included herein.
ARTICIE IX.
THE TRUSTEE
SECTION 9.01. The Trustee accepts the trusts herein
created, but only upon the terms and conditions set forth in this Article
IX.
SECTION 9.02. The recitals of fact herein and in said
Bonds contained shall be taken as the statements of the City and the Trustee
assumes no responsibility for the correctness of the same. The Trustee
makes no representations as to the value of the mortgaged and pledged
property, or any part thereof, or as to the title of the City thereto, or
as to the security afforded thereby and hereby, or as to the validity of
this Deed of Trust or of the bonds or coupons issued hereunder, and the
Trustee shall incur no responsibility in respect of such matters.
SECTION 9.03. The Trustee shall be under no duty to
file or record or cause to be filed or recorded this Deed of Trust or any
instrument supplemental thereto as a deed of trust, conveyance or transfer
of real or personal property or otherwise, or to re -file or re- record or
renew the same, or to procure any further, other or additional instruments
of further assurance, or to see to the delivery to it of any property
intended to be subjected to the terms hereof or pledged hereunder, or to
do any act which may be suitable to be done for the better maintenance or
continuance of the lien or security hereof, or for giving notice of the
existence of such lien, or for extending or supplementing the same or to
see that any property intended now or hereafter to be conveyed in trust
hereunder is subjected to the lien hereof. The Trustee shall not be liable
for failure of the City to insure or renew insurance or for responsibility
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of insurers, or for the amount of insurance carried by the city on any part
of the [rust Estate, or for the failure of the City to pay any tax or tames
in respect of the mortgaged and pledged property, or any part thereof, or
the income therefrom or otherwise, nor shall the Trustee be under any duty
in respect of any tax which may be assessed against it or the owners of tie
Bonds in respect of the said property.
SECTION 9.04. The Trustee may execute any of the trusts
or powers hereof and perform any duty hereunder, either by itself or by or
through its attorneys, agents, or employees, and they shall not be anawsr-
able or accountable for any act, default, neglect or misconduct of any such
attorneys, agents or employees, if reasonable care has been exercised in
the appointment and retention thereof, nor shall the Trustee be otherwise
answerable or accountable under any ciredmstances whatsoever, a ept for
its own negligence or bad faith.
SECTION 9.05, The Trustee shall be under no obligation
or duty to perform any act hereunder or to institute or defend any suit in
respect hereof, unless properlyiniemnified to its satisfaction. The Trustee
shall not be required to take notice, or be deemed to have knowledge of
any default of the City hereunder, (except as to the performance of obli-
gations of which the Trustee has primary knowledge such as those under
Section 5.03 and Section 5.04) and may conclusively assume that there has
been no such default unless and until it shall have been specifically
notified in writing of such default by the holders of the percentage in
principal amount of the Bonds then outstanding hereinabove specified.
SECTION 9.06. The Trustee shall not be bound to
recognize any person as the holder of a Bond unless and until his Bond
is submitted to such Trustee for inspection, if required, and his title
thereto satisfactorily established, if disputed.
SECTION 9.07. The Trustee shall be protected in actin.,;
upon any notice, resolution, request, consent, order, certificate, report,
appraisal, opinion, bond, or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties.
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The Trustee may consult with counsel (who may be of counsel for the City
or for a bondholder), and with other experts, and the opinion of such
counsel or other experts shall be full and complete authorization and
protection in respect of any action taken or suffered and in respect of
any determination made by it hereunder in good faith and in accordance
with the opinion of such counsel.
SECTION 9.08. The Trustee shall not be obligated or
liable to allow to the City interest on agp moneys received by it here-
under, except that the Trustee shall pay the City interest on money in the
Reserve account at the rate or rates it is currently paying its depositors
on checking account balances of similar accounts, if interest on balances
is then being so paid.
SECTION 9.09. The City shall pay to the Trustee from
time to time a reasonable compensation for all services rendered by it
hereunder and shall reimburse all its reasonable expenses, charges and
other disbursements and those of its attorneys, agents and employees,
incurred in and about the administration and execution of the trusts
hereby created. All payments so made to the Trustee by way of compensation,
and for reimbursement by expenses, charges and other disbursements shall be
regarded as a maintenance and operation expense and paid from the System
Fund accordingly. In default of such payments by the City, and as security
for such payment the Trustee shall have a lien therefor on the Trust
Estate and the proceeds thereof prior to any rights of the holders of the
Bonds and coupons.
SECTION 9.10.. The Trustee hereunder or any successor
Trustee may became the owner of Bonds and coupons with the same rights it
would have if not a Trustee. The Trustee may act as depositary for, and
permit any of its officers or directors to act as a member of, or in any
other capacity in respect of any committee formed to protect the rights f
the holders of Bonds or to effect or aid in any reorganization growing out
of the enforcement of the said Bonds or of this Deed of Trust, whether or
not any such committee shall represent the holders of more than fifty per
cent (50%) in principal amount of the Bonds.
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SECTION 9.11. The Trustee and any successor to the
Trustee may resign and be discharged from the trust created by this Deed of
Trust by giving to the City Secretary notice in writing and by giving the
bondholders notice through publication thereof at least once a week for three
successive calendar weeks, the first publication to be not less than thirty
(30) days and not more than sixty (60) days prior to the effective date of
such resignation, in one newspaper published and having general circulation
in the City of Corpus Christi and in a financial newspaper or journal pub-
lished in the City of New York, New York. Each of-such notices shall specifv
the date on which such resignation is to take effect( Such resignation shall
take effect on the day specified in such notice, unless previously a successor
Trustee shall have been appointed, either by the bondholders or by the City
as hereinafter provided, in which event such resignation shall take effect
icnndiately upon the appointment of such successor Trustee..
SECTICN 9.12. The Trustee or any successor Trustee
may be removed at any time by the holders of a majority in principal amount
Of the Bonds secured hereby and at the time outstanding, upon payment to the
Trustee so removed of all moneys then due to it hereunder, by an instrument
or concurrent instruments in writing executed in duplicate by such holders.
One copy shall be filed with the City Secretary and the other with the Trustee
so removed.
SECTION 9.13. In case at any time the Trustee or any
successor Trustee shall resign, die, be dissolved, or be removed, or otherwise
shall become disqualified to act or incapable . of acting, or in case control
of the Trustee or of any successor Trustee or of its officers shall be taken
over by any public officer or officers, a successor Trustee may be appointed
by the holders of a majority in principal amount of the Bonds secured hereby
and at the time outstanding, by an instrument or concurrent instruments in
writing signed and duly acknowledged by such bondholders or by their attorney-
in -fact duly authorized, and filed, one copy with the retiring Trustee, and
the other with the successor Trustee, notification thereof being given to the
City Secretary by such successor Trustee; but until a successor Trustee shall
be so appointed by the bondholders as herein authorized the City by an
'S-9
instrument in writing duly authorized by resolution shall in such case appoint
a successor to the Trustee. In the case of any appointment by the City of a
successor to the Trustee, the City shall forthwith cause notice to be pub-
lished once in each week for two consecutive calendar weeks in one newspaper
published and having general circulation in the City of Corpis Christi and
in one financial newspaper or journal published in the City of New York, New
York. Every such successor Trustee so appointed by the bondholders, by a court
of competent jurisdiction, or by the City shall be a bank or trust company
in good standing, organized and doing business under the lank of the Unitee.
States or of any State, end having its principal office in the State of Texas
or in the Borough of Manhattan, the City of New York, New York, or in the City
of Chicago, Illinois, and having a combined capital and surplus of not less
than $2,500,000.00 which is authorized under the laws of the jurisdiction of
incorporation to exercise corporate trust powers and is subject to supervision
or examination by a Federal or State authority.
SECTION 9.14. Any successor Trustee appointed here-
under shall execute, acknowledge and deliver to its predecessor Trustee, and
also to the City, an instrument accepting such appointment hereunder, and
thereupon such successor Trustee, without any further act, deed or conveyance
shall- become fully vested with all the estate, properties, rights,- powers,
trusts, duties and obligations of its predecessor in trust hereunder, with
like effect as if originally named as Trustee herein; but the Trustee ceasing
to act shall, nevertheless, on the written request of the City, or of the
successor Trustee, execute, acknowledge and deliver such instruments of con-
veyance and further assurance and do such other things as may reasonably be
required for more fully and certainly vesting and confirminC in such successor
Trustee all the right, title and interest of the Trustee which it succeeds,
in and to the property subject to the terms hereof and such rights, powers,
trusts, duties and obligati ns, and the Trustee ceasing to act shall also,
upon like request, pay over, assign and deliver to the successor Trustee any
money or other property subject to the lien of this Deed of Trust, including
any pledged securities which may then be in its possession. Should any deed,
conveyance or instrument in writing from the City be required by the new
.S V
Trustee for more fully and certainly vesting in and confirming to such new
Trustee such estate, properties, rights, powers and duties, any and all such
deeds, conveyances and instrw nts in writing shall, on request, be executed,
acknowledged and delivered by the City.
In case any of the Bonds to be issued hereunder shall
have been authenticated but not delivered, any successor Trustee may adopt
the certificate of authentication of the Trustee or of any sudcessor to the
Trustee; and in case any of the Bonds shall not have been authenticated any
successor to the Trustee may authenticate such Bonds in its own name; and
in all such cases such certificates shall have the full force which it is
anywhere in the Bonds or in this Deed of Trust provided that the certificate
of the Trustee shall have.
SECTION 9.15, Any notice, request or other instrument
required by this Deed of Trust to be served on the City or sent to the City
shall, unless othervdae expressly provided, be considered to have been
sufficient]y given when sent by registered mail to the City Secretary ad-
dressed to the City Hall in the City of Corpus Christi. Any notice, request
or other writing by or in behalf of the City or any of the bondholders
delivered to the Trustee at ?ts office in Dallas, Texas, shall constitute
proper delivery of such notice.
SECTION 9.16. The Trustee shall authenticate and turn
over to the City Official then performing the duties of City Treasurer, or his
order, for delivery the Bonds secured by this Deed of Trust.
SECTION 9.17. The City Secretary shall file with the
Trustee annually a certificate showing the names of the then members of the
City Council of the City of Corpus Christi. The Trustee shall be entitled
for all purposes of this Deed of Trust to assume that the persons whose
names appear on the latest list filed with it continue to hold their offices
until it is notified to the contrary by the City secretary.
SECTION 9.18. The Trustee shall not be accountable
in any manner whatsoever for any action of the City or failure of the City
to act or for aqv action or failure to act by the City's depository or for
any funds unless and until such funds shall have been received by the Trustee.
Nor shall. the Trustee be liable for application by the City of revenues from
the Trust Estate.
0 f
SECTICK 9.19. All cash collected by, or payable to,
the Trustee shall be paid to, and deposited with, and all Bonds and other
obligations or securities shall be held by, the Trustee, except as otherwise
required by law.
SECTION 9.20. The holder of a Bond shall be permitted
at reasonable times during regular business hours and in accordance with
reasonable regulations prescribed by the Trustee, to examine at the principal
office of the Trustee a copy of any current report theretofore filed with the
Trustee showing the condition of the Trust Estate.
ARTICLE X
FRANCHIIIE
SECTION 10.01. In the event that any sale of the Trust
Estate shall be made under any of the provisions of this Deed of Trust for
the enforcement of the lien of this Deed of Trust, the City of Corpus Christi
hereby grants to the purchaser or purchasers at such sale a franchise to
operate the property so purchased for a term of twenty (20) years dating
from such purchase, subject to all laws regulating same then in force.
ARTICLE XI.
MODL')CATION OF THIS DEED OF TRUST
SCCT ON 11.01. The holders of seventy-five per cent
(75 %) in principal amount of the Bonds at any time outstanding (not including
in any case any Bonds which may then be held or owned by or for the account
of the City, but including the Additional Bonds issued under the provision
as
of this Dead of Trust, an: such refunding bonds /are specified in Section 2.04
of Article II hereof and are not owned by the City) shall have the right
from time to time to consent to and approve the execution by the City and
the Trustee of such Deed of Trust or Deeds of Trust supplemental hereto as
shall be deemed necessary cr desirable by the City for the purpose of
modifying or amending any of the terms or provisions contained in this
Deed of Trust, or in any Deed of Trust or Deeds of Trust supplemental
thereto, or contained in the ordinance authorizing the Bonds secured by
this Deed of Trust, provided however, that nothing herein contained shall
permit or be construed as permitting the modification or amendment of the
terms and conditions contained in this Deed of Trust or in said ordinance
6a
or in the Bonds so as to:
(a) Make any change in the hattrity of the Bonds,
(b) Reduce the rate of interest borne by any of
the Bonds;
(c) Reduce the amount of the principal payable on
the Bonds;
(d) Modify the terms of payment of principal or of
interest upon the Bonds or any of them or imposa
any conditions with respect to such payment;
(e) Affect the rights of the holders of less than aLl
of the Bonds then outstanding;
(f) Change the minimum percentage of the principal
amount of bonds necessary for consent to such
modification.
If at any time the City shall request the Trustee to
enter into such supplemental Deed of Trust, the Trustee, unless it shall deem
that such proposed supplemental Deed of Trust shall contain provisions which
affect its rights or obligations and to which it is unwilling to assent, shall,
at the expense of the City cause notice of the proposed execution of such
supplemental Deed of Trust to be published in a newspaper or journal pub-
lished in the City of New York, New York, and in a newspaper of general
circulation published in the City of Corpus Christi, once during each
calendar week for at least four successive calendar weeks. Such notice -
shall briefly set forth the nature of such proposed supplemental Deed of Trust
and shall state that a copy thereof is on file at the principal office of
the Trustee for inspection by all holders of Bonds.
A substantial copy of such notice shall be mailed by
the Trustee to each holder of registered Bonds, but the failure to mail such
notice in any instance shall not affect the efficiency of the consent by
the holders of 75% of the Bonds. such mailed notice is for the convenience
of such registered holders and is not a prerequisite to the modification of
the Deed of Trust.
Whenever at any time within one year from the date of
the first publication of said notice, the City shall deliver to the Trustee
an instrument or instruments executed by the holders of at least seventy -five
per cent (75 %) in aggregate principal amount of the Bonds then outstanding
as in this section defined, which instrument or instruments shall refer to
6i
the proposed supplemental Deed of Trust described in said notice and shall
specifically consent to and approve the execution thereof in substantially
the form of the copy thereof on file with the Trustee, thereupon, but not
otherwise, the Trustee shall execute the said supplemental Deed of Trust in
substantially the said form without liability or responsibility to any holder
of any Bond, whether or not such holder shall have consented thereto.
If the holders of at least seventy -five per cent (75%)
in aggregate principal amount of the Bonds outstanding as in this section
defined at the time of execution of any such supplemental Deed of Trust,
or the predecessors in title of such holders, shall have consented to and
approved the execution thereof as herein provided, no holder of any Bond,
whether or not such holder shall have consented to or shall have revoked
any consent as in this section provided, shall have any right or interest to
object to the execution of such supplemental Deed of Trust or to object to
any of the terms or provisions therein contained or to the operation thereof,
or to enjoin or restrain the Trustee of the City from executing the same
or from taking any action pursuant to the provisions thereof.
Upon the execution of any supplemental Deed of Trust
pursuant to the provisions of this section, this Deed of Trust and the
-- ordinance authorizing the Bonds shall be and be deemed to be modified and
amended in accordance with such supplemental Deed of Trust, and the respec-
tive rights, duties and obligations under this Deed of Trust of the City, the
Trustee, and all the holders of outstanding Bonds shall thereafter be determ-
ined, exercised and enforced hereunder, subject in all respects to such
modifications and amendments.
Any consent given by the holder of a Bond pursuant to
the provisions of this section shall be irrevocable for a period of six
months from the date of the first publication of the notice provided for
in this section, and shall be conclusive and binding upon all future holders
of the same Bond during such period. Such consent may be revoked at any tine
after six months from the date to the first publication of such notice by
the holder who gave such consent or by a successor in title, by filing
notice with the Trustee in form satisfactory to it of such revocation of
62
consent, but such revocation shall not be effective if the holders of
seventy five per cent (75 %) aggregate principal amount of the Bonds out -
standing as in this section defined have, prior to the attempted revocation,
consented to and approved the supplemental Deed of Trust referred to in
such revocation. For the purposes of this section, ownership of Bonds shzl'
be established in the manner provided in Section 12.01 of Article XII of
this Deed of Trust.
Any supplemental Deed of Trust executed in accordance
with the provisions of this Article shall thereafter form a part of this
Deed of Trust and all the terms and conditions in any such supplemental
Deed of Trust as to any provision authorized to be contained therein shall
be and be deemed to be part of the terms and conditions of this Deed of Trust
for any and all purposes.
ARTICLE XII
MORAL PR.OVISICNs
MCTION ]2.01. Any notice, request or other in-
strument required by this Deed of Trust to be signed or executed by bond-
holders may be executed by the execution of any number of concurrent
instruments of similar tenor, and may be signed or executed by such bond-
holders in person or by agent appointed in writing. As a condition for
acting thereunder the Trustee may demand proof of the execution of any
such instrument and of the fact that any person claiming to be the owner of .
any of said Bonds is such owner and may further require the actual deposit
of such Bond or Bonds with the Trustee. The fact and date of the execution
of such instrument may be proved by the certificate of any officer in any
jurisdiction who by the laws thereof is authorized to take acknowledgments
of deeds within such jurisdiction, that the person signing such instrument
acknowledged before him the execution thereof, or may be proved by an
affidavit of a witness to such execution sworn to before such officer.
The amount of Bonds held by any person executing such
instrument as a bondholder and the fact, amount and n—her. of the Bonds
held by such person and the date of his holding the same may be proved by
a certificate executed by any responsible trust company, bank, bankers, or
63
other depositary, in a form approved by the Trustee, showing that at the
date therein mentioned such person had on deposit with such depositary the
Bonds described in such certificate; provided, however, that at all times
the Trustee may require the actual deposit of such Bond or Bonds with the
Trustee.
SECTION 12.02. The covenants, agreements, conditions,
promises and undertakings in the Deed of Trust shall extend to and be bind-
ing upon the succeasors and assigns of the City and all of the covenant.
hereof shall bind such successors and assigns, and each of them, jointly
and severally. All the covenants, conditions and provisions hereof shall
be held to be for the sole and exclusive benefit of the parties hereto and
their successors and assigns and of the holders from time to time of said
Bonds and coupons.
No transfer of the Trust Estate, or any part thereof,
by the City and no extension of the time of payment of any of said Bonds or
coupons after such transfer shall operate to release or discharge the City,
it being agreed that the liability of the City shall continue as principal
until all of said Bonds and coupons are paid in full, notwithstanding any
transfer of said property or subsequent extension of time to the then owner,
or other act which might serve as a legal or equitable discharge of a surety.
SECTION 12.03. This Deed of Trust shall operate
effectually as a lien on all property conveyed, mortgaged or pledged hereby,
whether real, personal or nixed. Failure to file said instrument in the
office of the County Clerk of the County in which the Trust Estate is situated
shall in no wise invalidate such lien, but this instrument may be filed and
recorded in the records of each and every County in which the Trust Estate
or any part thereof is situated in the manner in which a Deed of Trust on
real estate is filed and recorded, and may remain in his office on file as
a Chattel Mortgage covering the personal property encumbered hereby. The
City covenants and agrees that this Deed of Trust will be so filed as a Deed
of Trust and as a Chattel Mortgage in each and every County in which any part
of the Trust Estate is situated.
iy
SECTION 12.04. If the lien of this Deed of Trust
shall be or shall ever become ineffectual, invalid or unenforceable against
any property hereby mortgaged or pledged because of want of pourer or title
in the City, the inclusion of any such property described herein shall not
in any way affect or invalidate the provisions or lien hereof against such
property as the City had the right to mortgage or pledge. , .
SECTION 12.05. No holder of Bonds issued under this
Deed of Trust nor of any coupons representing interest on such Bonds shall
ever have the right to demand payment of such Bonds or coupons out of funds
raised or to be raised by taxation.
SECTION 12.06. Any request or consent of the holder
of any Bonds secured hereby given for any of the purposes of this Deed of
Trust shall bind all future holders of the same Bond or Bonds issued in
exchange therefor or in substitution thereof in respect of anything done or
suffered by the City or the Trustee in pursuance of such request or consent.
SECTION 12.07. Although this Deed of Trust for con-
venience and for the purpose of reference is dated as of` 1, 1948, the
actual dates of execution by the City and by the Trustee are as indicated
by their respective acknowledgments hereto annexed.
ARTICIE XIII
IEFEASANCE
SECTION 13.01. !Vhen all of the Bonds and coupons
hereby secured shall have been paid or redeemed, or, all of the Bonds having
become due by reason of maturity, the City shall have provided for such
payment by depositing in cash with the Trustee the amount necessary for such
payment or redemption and shall also have paid, or caused to be paid, all
sums accrued and payable hereunder by the City, then and in that case the
City shall be entitled to have all of the Trust Estate revert to it and to
have the estate, right, title and interest of the Trustee in respect thereof
cease, determine and become void. Then, if the City shall so request in
writing, the Trustee upon the cancellation of all Bonds and coupons for the
payment of which money shall not have been deposited in accordance with the
provisions of this Deed of Trust, shall at the cost and expense of the City
6 a-
execute and deliver to the City proper inatruluadbas acknowledging satisfac-
tion of the Deed of Trust. Money deposited for the payment of Bonds and
coupons under the provisions hereof shall be held by the Trustee as a special
trust fund for the account of the holder or holders of such Bonds and coupons
and so far as necessary for such purposes shall be applied to the payment of
such Bonds and coupons upon presentation and surrender thereof.
IN '-an ESS 4 EREOF, the City of Corpus Christi, Texas,
acting through and being duly authorized thereunto by its governing body,
the City Council,has caused this Deed of Trust in duplicate 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
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 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.
CITY OF CORPUS CHRISTI, VMS,
ATTEST:
City secretary.
(City seal)
ATTEST:
Its Assistant Cashier.
(Bank Seal)
`t
BY
Mayor
MERCANTILE NATIONAL BANK AT DALLAS,
DALLAS, TEXAS, TRUSTEE,
BY
Its Trust Officer.
THE STATE OF TEXAS
COUNTY OF NUECES
BEFORE ME, THE UNDERSIGNED AUTHORITY; in and for Nueces County,
Texas, on this day personally appeared Uesley E. Seale, Mayor, and
M. A. Cage, Jr., City Secretary, respectively, of the City of Corpus
Christi, Texas, known to me to be the persons whose names are subscribed
to the foregoing 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
consideration 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 ,
1946.
(SEAL)
6 9
Notary fablic in and for Nueces County,
Texas.
THE STLTE OF TM S
COUNTY OF DALLAS
BEFORE MFf THE UNDERSIGNED AUTHORITY, in and for Dallas County,
Texas, on this day personally appeared CL.RENCE E. SIXPLE, Trust Officer,
and . I.ssistant Cashier, respectively, of
MERCANTILE NATIONAL 164K 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 MERC MILE NATIONAL
B:NK AT DALhLS, a corporation, and each acknowledged to me that he-axecutdd
the same for the purposes and consideration therein expressed and in the
capacity therein stated as the act and deed of said NMCANTILE N..TICNLL
BI.NK AT DI.LLiZ.
GIVEN UNDER MY iUM :.ND SE11 OF OFFICE, this the day of
1948.
(SELL)
Notary Public, in and for Dallas
County, Texas
61P
THE STATE OF TEXAS
COUNTY OF NUECES
1 , County Clerk of Nueces County, Texas do
hereby certify that the foregoing instrument of writing dated on the 1;;
' nE
day of *W, 1948, with its certificates of authentication, was filed for
record in my office on the day of , A. D. 1948, at
o'clock . M., and duly recorded this day of
1946, 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 1946, at
o'clock DS. as a chattel mortgage.
VFITNESS MY OFFICIAL HAIM and seal of office this the day of
, 1948.
(SEAL)
19
County Clerk
Nueces County, Texas
11. After passage of the ordinance specifying the interest rate
or rates and the option of redemption, the same shall be expressed in the
Deed of Trust before it shall be executed.
12. Said Deed of Trust and all of the provisions thereof are
hereby made a part of this ordinance.
13. (a). That in the event of a sale of the properties encumbered
by the Deed of Trust which is set out in the preceding section hereof in order
to enforce the payment of the Bonds secured thereby, the City of Corpus Christi
herein and hereby grants to the purchaser or purchasers at any such sale which
may be so held under the provisions of such Deed of Trust the right, privilege
and franchise to operate the properties and facilities so purchased for a term
of twenty years dating from such purchase, subject to all laws regulating same
then in force, as is provided in Article 1111, Texas Revised Civil Statutes of
1925, as amended, it being the intent hereof to grant a franchise which shall
become operative and effective only in the event that said mortgaged properties
are sold under the provisions of said Deed of Trust.
(b) The granting of this franchise, which shall became effective
end operative only after sale under said Deed of Trust, is supported by an
adequate consideration, including: the acceptance of the trust by the Trustee,
the money paid to the City by the Trustee upon execution of said Deed of
Trust, and the payment to the City by the purchasers of the purchase price of
said waterworks Revenue Bonds. The grantee of this franchise shall pay
annually to the City while such franchise is operative and effective a
fixed charge of Five (,$5.00) Dollars, on such date or dates as shall be pre-
scribed by the City when the franchise becomes operative and effective.
(c) when the right to this franchise shall have become vested
because of the purchase of the encumbered properties pursuant to sale under
said Deed of Trust, the purchaser of such properties, by filing a written
acceptance of this franchise with the City Secretary of the City of Corpus
Christi shall be the grantee of such franchise.
7v _:
(d) In the event that the holder Of the franchise shall at any
time fail to comply with reasonable rates for service theretofore established by
the City, or shall fail or refuse to render efficient service to the public, or
to maintain such properties in good order throughout the period of the grant, and
shall continue in such failure or refusal for a period of 120 days after mitten
notice by the City of such violation, the City shall be authorized to institute
proceedings in a court of competent jurisdiction to enforce compliance with such
rates, rendition of such service or to affect such proper maintenance as the case
may be, or in the alternative for the forfeiture of the franchises provided that
so long as the validity of any such rate or requirement by' the City shall be
questioned in good faith by such holder through litigation in a eburt of competent
jurisdiction, the City shall not be authorized to institute such proceedings.
(e) Upon the termination of the grant of the franchise) the
City upon the payment of the fair valuation thereof shall have the right to
acquire all of the properties which shall have been operated under such franchise;
provided that such grantee shall not be entitled to any payment or valuation
because of any value derived from the franchise or the fact that it is or may be
a going concern duly installed and operated. The fair valuation of such
properties shall be determined in the following manner: Upon determining to
propose to purchase such properties the governing body of the City (at this
time called the "City Council'r) shall adopt a resolution showing such intention
and shall deliver to the holder of the franchise a certified copy of such
resolution. In the resolution the City Council shall appoint an appraiser who
shall be an engineer skilled in the appraisal of waterworks properties, and the
holder of such franchise shall within 30 days after receiving a copy of such
resolution appoint another engineer skilled in the appraisal of waterworks
properties, and the two engineers thus appointed shall select a third engineer
having like qualifications. The three engineers thus selected shall serve as
V
the Board of Appraisement. Such Board shall take such steps as it msy deem
proper to determine the then fair valuation of such properties and by a
majority vote shall determine such valuation, In the event that the holder
of such franchise shall fail or refuse to appoint an appraiser within 30 days
after receiving the copy of such resolution, the appraiser selected by the City
may proceed to determine such valuation. And if the two appraisers first
selected shall be unable to or fail to select a third appraiser within 30
days after the second appraiser shall have been selected, the two appraisers
shall proceed to determine such valuation. The valuation thus fixed shall
be binding upon the parties and shall be considered the price at which the
City shall have the right to purchase said properties. If such right is not
exercised finally within 6 months after the filing with the respective
parties of a copy of said report the right thus to purchase the properties
shall no longer be vested in the City and the holder of such franchise
upon its expiration shall have the right to remove or otherwise dispose of
said properties in the event that a renewal of the franchise is not granted
by the City, but shall be responsible to the City for prompt restoration of
any part of the streets or alleys damaged through such removal.
14 (a). After said Bonds shall have been executed they shall
be submitted to the Attorney General for his approval, and after such approval
they shall be registered by the Comptroller of Public Accounts.
(b) Due to the fact that the amount of the judgment in
said case of Hayward V. City of Corpus Christi is in the amount of
72
$1,833,558.07, plus interest At the rate of 0 per annum from May 5, 1945,
until paid, it cannot be determined definitely at the time of the passage
of this ordinance what amount of Bonds will be required for the payment of
the judgment with interest accrued to the date the Bonds are sold and
delivered.. Accordingly, when the Bonds are ready for sale and delivery, the
Mayor and City Secretary shall compute the amount of money which will be
necessary to pay the judgment with interest to the date when delivery is to be
made and execute a certificate showing such amount and designating by
number or maturity the Bonds to be authenticated by the Trustee and to be
sold and delivered. The amount of Bonds thus to be designated shall be as
near the amount of the judgment and interest to the delivery date as is possible
because of the denomination of the Bonds, but not in excess thereof. A copy of
such certificate shall be furnished to the Trustee.
(c) Upon receipt of the certificate mentioned in the preceding
only
sub - section (b), the Trustee shall authenticate/the Bonds specified in
said certificate. In authenticating such bonds, the Trustee may rely upon
said certificate.
(d) At or immediately after sale and delivery of the Bonds the
judgment with interest shall be paid in full. The difference, if any,
between the par value of the Bonds thus sold and the amount of the judgment
with interest to date of payment shall be paid from the System Fund.'
(e) After full payment of said judgment and interest, the
Bonds not thus sold for the purpose shall be cancelled and not issued.
15. Additional Waterworks System Revenue Bonds may be issued to
--,e secured by a pledge of the revenues and a lien upon the properties of the
Waterworks System and upon the franchise of the System (as authorized in
Section 13 hereof) of equal dignity with the pledge and liens securing the
Waterworks Revenue Bonds, Series 1948, provided that such additional WNater-
works 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, hereinabove in Section 10 made a part of this ordinance.
7J
16. That all ordinances, resolutions and orders or parts
thereof in conflict herewith are, to the extent of such conflict, hereby
tepealed.
17. That if any section, provision or part hereof shall be
field to be invalid or ineffective for any reason, the remainder hereof
shall nevertheless remain in full force and effect.
J` y J PASSED AND APPROVED P ,1948.
v AT1E
Mayor
Ci S e ary
(City Sea
The foregoing ordinance, Deed of Trust, and form of bond and
coupon therein contained have been approved as to form and correctness
this day of April, 1948.
City Attorney
7K
The foregoing Ordinance was read the first time and passed
to the second reading, on the /,3_ day of �i�l_ , 1948,
by the following vote: �+�✓ --
"Yesley S. Seale
George R. Clark, Jr.
John A. Perris
R. R. Henry
Joe T. Dawson
The foregoing Ordinance was read th s and time and passed
to the third reading, on the ,jgV_ day of , 1948,
by the following vote:
Wesley E. Seale
George R. Clark, Jr.
John A. Ferris
R. R. Henry
Joe T. Dawson
The foregoing Ordinance was read t third time and passed
and ordered approved by the F&yor, on the day of�s
1948, by the following vote:
Wesley E. Seale
George R. Clark, Jr.
John A. Ferris
R. R. Henry
Joe T. Uawaon
AFPROVED this day of , 19118.
a
City of Corpus Christi, Texas
-. ATTr,ST:
y ry
APPROVED AS TO LEGAL FO M,
C
t
Asaie en y e—y
%3