HomeMy WebLinkAbout02293 ORD - 06/15/1948. + ORDliV,iNCE �/o 2 73
&ENUINO Ili ORDIN.,�JCE HLRLTOFOhV, PaS&D FINaLLY
BY TffE CITY COUNCIL ON THE 27th DAY OF APhIL,
1948, 4J7i TiE; FOHI-. OF THE DEED OF TRUST PR- I'XkIa:,D
THEhFIN.
. HaiEMAS, heretofore on the 27th day of April, 1948, the City
Council of the City of Corpus Christi passed finally an ordinance entitled:
"tin Ordinance
Authorizing the issuance of Waterworks Revenue Bonds
for the purpose of paying a money judgment rendered
against the City of Corpus Christi, in the case of
Fred P. Hayward, 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 daterworks
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 far the
operation thereof in the event of default and sale under such
deed of trust; prescribing the limitations under which
additional daterworks Revenue Bonds may be issued; ordaining
other matters relating to the subject."
and
WHEtiiiaS, it is considered to be to the best interest of the City
that said ordinance and the form of Deed of Trust prescribed therein be
amended prior to the execution of said Deed of Trust in the particulars herein-
after set forth;
BE IT OhDAINED BY THL CITY COUNCIL OF THE CITY OF COIcPUS CHRISTI,
MW:
Amendments applicable to the Ordinance Proper
1,
Strike out Section 5 of the ordinance and insert in lieu therof
a new Section 5 to be and read as follows:
"Section 5. Both principal and interest shall be payable
in lawful money of the United States of :+merica at Nercantile
National Bank at Dallas, Dallas, Texas, or at the option of the
holder at a bank within the City of New York in the State of New
York, to be designated in a resolution to be adopted by the City
Council after the sale of the Bonds shall have been made, upon
the presentation and surrender of proper Bonds and coupons,"
IIi,
Strike out Section 11 of the ordinance and insert in lieu
thereof a new Section 11 to be and read as follows:
"11. After the adoption of the resolution specifying
the interest rate or rates and any additional bank or banks of
payment, the same shall be expressed in the bond form and in
the Deed of Trust before the Deed of Trust shall be executed."
,ffectfng the Form of Deed of Trust
III
In the prescribed bond form contained in the preamble to the
Deed of Trust, add to the clause now appearing and reading:
"Both principal of and interest on this Bond
are payable in lawful money of the United States
of :'Vaerica, at I:ercantile iiational Dank at Dallas,
Dallas, Texas"
after changing the final period to a canna, the following:
"or at n
The blank is to be filled out before the Deed of Trust is executed, after
the adoption of the resolution fixing the interest rate or rates and designating
an additional bank of payment.
And that a similar blank be provided in the fora of coupon.
IV.
In Section 5.06 of the Deed of Trust strike out sub - sections (a)
and (b) and insert in lieu thereof rewritten sub-sections ,(a),(b) and (c)
to be and read as follows:
"(a) On the 10 day of July, 1951, and on or before the 10
day of each month thereafter the City shall transfer from the amount
remaining in the System Fund into the i(edemption Fund not less than
506 of the amount remaining in the System Fund, provided that no such
transfer shall be made on any such occasion unless, and until and only
so long as there shall have been deposited respectively in the Maintenance
and Operation Fund in accordance with the provisions of Section 5.02,
and in the Interest and Sinking Fund in accordance with the provisions of
Section 5.05 all amounts of money requi.red,by each of said Sections to
be deposited in such respective Funds. But subject only to the
requirement that the City's obligations to cake such monthly deposits
into the Maintenance and operation Fund, the Interest and Sinking Fund,
and the Extension and Improvement Fund, the City's obligation to commence
on July 10, 1951 the making of the monthly deposits into the Redemption
Fund and to continue the making of such deposits into the Redemption Fund
is absolute. If on July 10, 1951 or on the 10th day of any month
thereafter the condition of any one of the three kklxnds (Maintenance and
Operation, Interest and Sinking Fund, or Extension and Improvement) will
not permit of a deposit into the liedemption Fund, the making of such
deposit shall be commenced or resumed during the first month thereafter
when possible under the provisions of this Section,
"(b) money in the Redemption Fund shall be used by the City
to redeem prior to their respective maturity dates the Bonds and any
additional Bonds by exercising the City's right to redeem Bonds prior to
their scheduled maturity dates according to the tenor and effect of such
redemption provisions contained in the Bonds or the Additional Bonds,
and in this Deed of Trust and in any applicable supplement to this Deed
of Trust. All money in the Redemption Fund in excess of 410,000.00 shall
be used by the City for said purpose at .least once in each calendar year.
It shall be the duty of the City on each such occasion to call for
redemption the Bonds or the Additional Bonds which are at the time subject
to redemption, which will result in the greatest saving of interest to
the City from the date fixed for redemption to the scheduled maturity
date of the Bonds or the Additional Bonds as the case may be. The following
method shall be used in determining the interest saving to the City by
redeeming a bond. The total amount of interest which will be paid on the
bond from the date fixed for redemption to the scheduled maturity date of
the b,nd &hall be considered as the total interest cost of that bond.
From this amount should be subtracted any premium required to be paid in
connection with the redemption of the bond.. The amount remaining shall
be considered as the a'ycnat: of interest saved by the City through the
0 '
redemption of the bond. Provided, however, that no Bonds shall
be redeemed by the City unless through such redemption an economy of
interest will result to the City.
11(c) On or before the loth day of July, 1951 and on or before
the 10th day of each month thereafter after the City shell have
transferred into the Redemption Fund the money required to be transferred
under sub - section (a) of this Section it m::,y within its discretion
transfer any — of money in addition th reto then r—i ing in the
System Fund and any money not so transferred to the Redemption Fund shall
be it tN t time transferred to the atension and improve;aent Funds."
V.
Immediately after Section 5.0e add : new Section to be
designated Section 5.09 to be and read as followsz
Section 5.09. In th- event that 3 paying agent for the,
Bonds or any Additione.l Boras, other t_�•.n the Trustee, should be
designated in =,ny ordinance or resolution, or in any supplement
to the Deud of Trust, and if certified copies or ori7iral executed
counterparts there.£ are filed with the Tau st °e it shall be the
dut;: of the Trustee not less than ten "10) days prior to the date
fixed for payment of interest or payment of principal and interest,
to Make a— ilable to such addition l p;,ying agent or g.nt. money
necessary for the payment of tho coupons or the Bonds and coupons
scheduled to ,m ^.ture on such date.'
PASSED AND APPROVED this thes2eia
ATTEST:
C , se t-
(City sl
The forgoing Ordinance 6e en approved as to form and
i !
correctness this ,day of , 1948 GG/; 1�
City Nttorney.
`/
The foregoing Ordinance was read the first time and passed
to the second reading on the _L day of 1948,
by the following vote: '
Wesley E. Seale
George R. Clark, Jr.
John A. Farris
R. R. Henry
Joe T. Dawson
The foregoing Ordinance was read tfecond time and passed
to the third reading on the _f day o£, 1948,
by the following vote:
Wesley E. Seale alzwl
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 Mayor on the /s. day of
1948, by the following vote:
Wesley -,. Seale
George R. Clark, Jr.
John A. Ferris
R. R. henry
Joe T. Dawson
APPROVED this 1�s _day of , A. D. 1948.
A
ATTEST: City of Corpus Christi, Tex
y a t
APPROVED
RS TO LEGAL FORB1:
City jtt orney
as .tent y A ormy