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02294 ORD - 06/15/1948
AN ORDINANCE A., , .2 z 9rf- AUTHORIZING THE ISSUANCE OF WATERWORKS REVENUE BONDS 111 THE AMOUNT OF 02,550,000.00 FOR THE PURPOSE OF RAKING IMPROVE146NTS, EXTENSIONS, REPAa,6 ORr,REPI,ACEMENTS OF A0 TO THE WATEiiMAS 5YSTEK1 PLEDGI,;G THE NET REVENUES OF THE CITY'S W.4TERWOhKS SYbral; AUTHORIZING THE EXECUTION AND DELIVrhY OF A DEED OF TRUST 5JPPIaU24TAL TO THE DEED OF TRUST SECULING CITY OF CORPUS CHRISTI WATEn,K)RKS REVENUE BOND6, SERIE6 1948, WHICH WERE AUTHOhIZED FW THE PURPOSE OF PAYING THE HONEY JUDOIIE14T AWARDED AGABST THd CITY IN THE CAST; OF FRED P. HAYW a D ET AL VS CITY OF CWUS CHRISTI, SUCH SUPPLLREdv"TAL D&L OF TRUST PROVIDING THE Sr.CU,,ITY FOR THE BOAD6 AUTHORIZED BY THIS OhDINANCE; AIVD OhDAINING OTHEI: NATT,sT.S REIATING TO THE SUBJECT. WHEfiEAS, on March 23, 1948 the City Council of the City of Corpus Christi, Texas, passed an ordinance calling an election to be held within and throughout the City on the 10 day of April, 1948, on propositions, including thefollowing: PROPOSITION "A" "Shall the City Council of the City of Corpus Christi, Texas, be authorized to issue revenue bonds for said City in the sum of Two Million Five Hundred and Fifty Thousand-Dollars (42,550,000.00), payable serially, within not to exceed thirty -five (35) years from the date of such bonds, bearing interest not to exceed Five (5 %) per cent per annum, payable semi - annually, said bonds to be redeemable at the option of the City at any interest paying date after the end of ten (10) years from the date of issuance, for the purpose of making improvements, extensions, repairs or replacements of and to the waterworks system in aforesaid City, to the extent and in the manner expressly permitted by, and in accordance with the limitations contained in the ordinance which shall have been previously passed by the City Council of the City of Corpus Christi, Texas, authorizing the issuance of bonds against the waterworks system of the City of Corpus Christi for the payment of the judgment in the case of Fred P. Hayward, et al, vs City of Corpus Christi, et al, No.,2666 on the docket of the Court of Civil Appeals 10th Supreme Judicial District, Waco, Texas, and as authorized by the Charter of the City of Corpus Christi and the general laws of the State of Texas, and in pursuance of Article 1110a of Vernon's Annotated Civil Statutes of Texas, as passed by the 49th Legislature, Acts of 1945, page 605, Chapter 349, and in accordance with Article 1111 and Articles 1113 to 1118, both inclusive, of the Revised Civil Statutes of Texas as amended, and bonds to be payable solely out of and secured by a pledge of the revenues of the waterworks system of the City of Corpus Christi, which shall include all properties and everything pertaining thereto, owned or thereafter acquired; said bonds to be issued for the purpose of improvements, extensions, repairs or replacements of and to the said waterworks syst =m to be secured by a pledge of the revenues of such system, and lien upon the properties constituting the System and upon the franchise there©£ of equal dignity with the pledge and liens securing said bonds issued to pay off the said Hayward Judgment under the ordinance hereinabove mentioned ?" AA9q ; and WHSRdAS, notice of said election was given in accordance with law by posting for a period of not less than fifteen (15) days prior to said election at the City Hall, and at each of the voting places specified in said ordinance, a substantial copy of said ordinance, and by publishing in the Corpus Christi Press, the official newspaper, being a newspaper of general circulation published within the City of Corpus Christi, a substantial copy of said ordinance in the issues of said paper, viz; March 25, 1948 and April 1, 1948; said publication having been made on the same day in each of two successive weeks prior to the date of the election, and the date of the first publication having been not less than fourteen (14) days prior to the date fixed for the holding of said election; all of which facts are further evidenced by affidavits duly executed and on file with the City Secretary; and lidERF,AS, at said election which was duly held the resident, qualified electors who own taxable property in said City, and who have duly reordered the. same for taxation voted in favor of said proposition by a vote of 2932 Ayes and 451 Noes, as is further evidenced by an ordinance passed by the City Council on the 13th day of April, 1948, declaring the results of said election; and WIIEUAS, heretofore in accordance with the provisions of the Constitution and laws of the State of Texas and the Charter of the City, including but without limitation�Chapter 349 of the Acts of the Regular Session of the 49th Legislature, effective June 16, 1945, as carried forward in Article 1110a of Vernon's Annotated Revised Civil Statutes of the State of Texas, the City Council has authorized the issuance of City of Corpus Christi, Texas Waterworks Revenue Bonds, Series 1948 (hereinafter called the "Series 1948 Bonds "), in the principal amount not exceeding p2,200,000.00, dated i June 1, 1948, with interest payable December 1, 1948, and thereafter semi- annually on June 1 and December 1 of each year, maturing serially as more fully set forth in the ordinance authorizing the issuance of said bonds, with maturities in each of the years 1949 to 1978, both inclusive, which will have been delivered by the City to the purchasers thereof concurrently with or prior to the delivery of the bonds authorized by this ordinance; and WHEIA AS, for the purpose of securing the payment of the Series 1948 Bonds, and for the purpose of providing for the fixing in more detail the rights of the holders thereof, and of the City and of the Trustee, and for the purpose of making an effective deed of trust lien on the City's Wat -rks system and the lien of said bonds on the revenues of the waterworks system, the ordinance authorizing the issuance of the Series 1948 Bonds authorized the execution of a deed of trust (hereinafter called the "Deed of Trust ") to be dated as of June 1, 1948, by and between the City and Mercantile National Bank at Dallas, as Trustee, (hereinafter called the "Trustee "); and WHEREAS, Section 15 of the ordinance authorizing the issuance of the aeries 1948 Bonds contains the following provision: "15. Additional Waterworks system xavenue Bonds may be secured by a pledge of the revenues and a lien upon the properties of the raterworks 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 daterworks 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 11 of such Deed of Trust, hereinabove in Section 10 made a part of this ordinance." and 'WHiliAS, prior to the delivery of the bonds authorized by this ordinance said Deed of Trust will have been duly executed by and between the City and the Trustee; and WEREAS, all of the things required to have happened, to have been done, and to exist under Section 2.05 of Article 11 of the Deed of Trust as a condition precedent to the authorization and issuance of the Bonds, have happened, been done, and do exist, including the following: SUPPIalENT TO DEED OF TRUST MV, STATE OF TEXAS COUNTY OF NUEChJ THIS SUPPLEi -;ENT TO DEED OF TRUST, (hereinafter called 115IPPLrh.ENT 1?) dated as of June 1, 1948, by and between the City- of Corpus Christi, a municipal corporation duly organized and existing under and by virtue of the laws of the State of Texas, situated in Nueces County, Texas (hereinafter sometimes called "CITY "), acting through its Pi "vor and City Secretary, duly authorized by an ordinance (hereinafter sometimes called the "Series 1948 —A BOND ORDINZCE") passed by the City Council on , 1948, PAnTY OF THE FIh6T PAbT, and AEHCAi1TILc NATIONAL BiM AT DALLaS, DALLAS TEXAS, a national banking association duly organized and existing under and by virtue of the Banking Laws of the United States (hereinafter sometimes called "THUSTE01), PiFTY OF TH3 SECOND PA1,T: W I T N E S S E T H: VIHEIIEAS, heretofore as of June 1, 1948 the City and the Trustee executed an instrument of trust, hereinafter sometimes —11ed the "Deed of Trust ", primarily for the purpose of securing 42,200,000.00 in principal amount of "City of Corpus Christi Waterworks hevenue Bonds, Series 1948 ", hereinafter sometimes called the "Series 1948 Bonds ", dated June 1, 1948, in the denomination Of 01,000,00 each, numbered from One (1) to Two Thousand Two Hundred (2,200),both inclusive, and bearing interest at the rates shown in the Deed of Trusty and WtfEh—S, Section 2,05 of the Deed of Trust provides for the issuance by the City of additional Bands which when issued in accordance with such provisions shall along with the Series 1948 Bonds be secured ratably by a first lien on the properties, revenues, and franchise constituting the trust estate, as more fully described in the Deed of Trusty and *Lt LAS, pursuant to an authorizing election the City Council has passed an ordinance (hereinafter sometimes called "deries 1948 -A Bond Ordinance) of which this Supplement is a part, authorizing the issuance of additional bonds in the principal amount of 4P2,550,000.00, for the purpose of providing finds for improvements, extensions, repairs or replacements of and to the City's waterworks system (hereinafter sometimes called the "Series 1948 -A Bonds "); and WHEMAS, the aeries 1948-4 Bonds authorized by said Series 1948 -A Bond Ordinance when issued are to be secured by said Deed of Trust in like manner and with like effect as if +eaued concurrently and contemporaneously with the Series 1948 Bonds; and WHEREAS, said bonds are payable as to botl, principal and. interest in lawful money of the United States of .rerica at riercantile :iational 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 sele of the Bonds shall have been made, and to mature serially as follows: B014D Iquiahm I;ATUFI -Y DATES INTEt,"ST tiATE,3 ;NOUDTS 1 to 45, both incl. June 1, 1949, 46 to 95, June 1, 1950, o45,000.00 96 to 145, June 1, 1951, 50,000.00 50,000,00 146 to 195, June 1, 1952, 50,000,00 196 to 250, June 1, 1953, 55,000.00 251 to 305, 306 to 360, ' June 1, 1954, ' June 55,000.00 361 .to 420, " 1, 1955, June 1, 1956, 55,000.00 6o,000.00 421 to 480, " 481 to 545, " Jons 1, 1957, June 1, 1958, 60,000.00 65,000.00 546 to 610, 611 to 680 " " June 1, 1959, �' 65 000.00 681 to 750, " June 1, 1960, " June 1, 1961, 70000.00 751 to 825, ' " June 1, 1962, 70,000.00 75 000 826 to 900, " 901 to 980, " dune 1, 1963, ' June 1, 1964, 75,000.00 80,000.00 981 to 1065, " 1066 to 1155, " " June 11 1965, ' June 1, 1966, 85,000.00 1156 to 1245 " " June 1, 1967, 90,000.00 90,000.00 1246,to 1345, " " June 1, 1968, 100 000.00 1346 to 1445, " 1446 to 1550, " June 1, 1969, " June 1, 1970, 100,000.00 1551 to 1655, ' " June 1, 1971, 105,000.00 105,000,00 1656 to 1770, " " June 1, 1972, 115,000.00 1771 to 1890, " 1891 to 2010, June 1, 1973, " June 1, 1974, 120,000.00 2011 to 2135, " " June 1, 1975, 120,000.00 125 000.00 2136 to 2265, " 2266 to 2405, June 1, 1976, June 1, 1977, 130,000.00 2406 to 2550, " ° June 1, 1978, 140,000.00 145,000.00 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, omissions and variations as in this Deed of Trust provided: UNITED STATES OF 4tERICA STATE OF TEXAS COUNTY OF NUECES CITY OF COkPUS CHRISTI WATE,'&X&KS REVENUE BO14D SEr3ES 1948 -A ISO, 41,000.00 THE CITY OF CO,1PUS CHRISTI, a lawfully created and existing municipal corporation in NUECES COUNTY, TEXA5, out of revenues hereinafter specified, and from no other source, FOR VALUE RECEIVED, hereby promises to pay to bearer, or, if this Bond be registered as to principal, to the registered holder thereof, on June 1, 19_, the principal sum of ONE THOUSAND DCLLAnS (m1,000.00), and, from said revenues to pay interest thereon from the date hereof, at the rate of ( %) per centum per annum, on December 1, 1943, and thereafter semi - annually on June 1 and December 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, (Note 1) or at the option of the holder at Interest frilling due on and prior to maturity is payable only upon presentation and surrender of the interest coupons hereto attached as they severally be3ome 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 improvements, extensions, repairs or replacements of and to the waterworks system of the City of Corpus Christi, Texas, as authorized at an election held in said City on April 10, 1948, and pursuant to ordinance passed by the City Council of the City of Corpus Christi, and secured by a Deed of Trust dated as of June 1, 1948 and by Supplement to said Deed of Trust, dated as of June 1, 1948, both collectively hereinafter sometimes referred to as the Deed of Trust, by and between the CITY OF CORPUS CHRISTI and N,EhC:JJTILE IJATIOiJnL SAi4K AT DALLAS, DALLAS, TEXAS, (hereinafter referred to as the "TRUSTEE "), as Trustee, an original counter- part of such Deed of Trust being on file in the office of said Trustee in the City of Dallas, Texas, reference to which ordinance and Deed of Trust is hereby made for a description of the funds charged with and pledged to the payment of the interest on and the principal of the Bonds, the nature and extant 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 daterworks System, including all additions, extensions and improvements thereto which may hereafter be made, hereinafter referred to as the "System ", and the holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by t axation. 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 franehse to the purchaser to operate such properties for a period of twenty years. The City of Corpus Christi hereby covenants and agrees that it will fix and maintain rates and charges for services to be rendered by the System sufficient to pay all operating, maintenance, depreciation, replacement, betterment and interest charges, and for an Interest and Sinking Fund sufficient to pay the principal of and interest on the issues 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. (Note 2) (Each of the Bongs of this issue maturing on and after June 1, 1952 is subject to redemption prior to maturity on June 1, 1951 and on any interest payment date thereafter to and including Deceber 1, 1957 solely out of ;coney available in the redemption Fund created by said Deed of Trust. Each of the Bonds of this issue maturing on and after June 1, 1959 is subject to redemption prior to maturity on June 1, 1958 and on any interest payment date thereafter out of any money available to the City. The prices at which the Bonds may be redeered are determined as follows: par and accrued interest to the data so fixed fcr redemption plus a premium of 3 -1/2.6 if redeemed on or prior to December 1, 1951, such premium to be reduced on June 1, 1952 to 3; -, on June 1, 1953 to 2 -1/2p, on June 1, 1954 to 25, on June 1, 1955 to 1- 1/25;, on June 1, 1956 to 1%, on June 1, 1957 to 1 /2ro, and if redeemed on and after June 1, 1978 without premium. Notice of intention to redeem Bonds is to be published in a financial publication in the City of New Yor4, iaew York, and in the official newspaper of the Citv 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 hanks 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 _ less 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 t heir 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. T9IS BOND may be registered as to principal only in accordance with the provisions endorsed hereon. EACH SUCCESSIVE holder of this bond during such time as it is payable to bearer, and each successive holder of each of the coupons hereto attached, is conclusively presumed to forego and renounce his 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 h %ving �,>ossession hereof, howsoever such possession ,a_y hn been acquired, and that any holder Me shall have taken this bond or :ny of the coupons from any person for value and without notice, thereby has acquired absolute title thereto, free from any defenses enforccebl.s against any prior holder -.nd free from all equities and claim of ol+nership of any such prior holder. ileith,r the City of Corpus Christi nor its officials nor the payir.,, agent hereinabove named shall ce affected by any notice to the tontrary. TO THF, EXTENT permitted by the aforesaid Deed of Trust, modifications or alterations of the Deed of T—t and my Deed of Trust suprlamental thereto may be made, i-iith the consent of t'�e 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 outstandi —_ but such modification or alteration is not permitted to affect the maturity, amount or r =Ac of interest of any such outstanding 9onds. Tha Deed of 'Trust provides for acceleration of the maturities of 211 of the Bonds thin outstanding in the event of a default. The City r.._..rvc -s the right to issuu additional bonds to the extent and in the m.nner expressly rermitted by the ordinance authorizing the issuance of City of Con -us Christi '-..terworks Revenuer Bonds, Series 1948, in the .amount of ,200,000.00, ind in the ordinanco ?.uthcrizing the Bonds of thich this is one. Such addition bonds sh',11 be payable from the same source c:nd secured by the same revenues, deed of trust, properties, .end pledged franchise, and sh.11 be on a parity with this issue of Bonds. IT IS HE.cEBY CERTIFIED AND RECITED that all acts and things required by the Constitution and Laws of the Stste of Texas, -rd the charter of the City, to happen, exist and be performed precedent to and in the issuance of this Bond and the passage of ss.id ordinance :nd the execution of said Deed of Trust, have htp:;engd, exist o.nd have been performed as so required. THIS H].'.D shall : :ot be entitled to any benefit under said Deed of Trust or become valid or obligatory fdr any purpose until it shall have been authenticated by the execution b,, the Trustee of th certificate hereon endorsed, IN 'XITNE33 "fH=F, the CITY OF CORPUS CHRISTI has caused this Bond to o� siencd by its ?tayor end attosted by its City Sccretary, and the corporate seal of said City to be impressed hereon, and has caused the coupons h —to attached to be executed with the facsimile signnt,res of said Officials all as or June 1; 1948, bL- -.yor, City of Corpus Christi,T x s. ATT "3T: City Secretary, City of Corpus Christi, Texas (CITY 57AL) (FOri` OF COUPON) No. z Cn this the Lst day of , 19_, the City of Corpus Christi, 'rcxas, Nueces County, T.,xas, will p•,y to bearer at the M[ rcantile National Bank at Dallas, D -1I1s; Texas, or nt the option of the holder (Note 1) at , the sum of (�$ ) Doll,::rs, in lawful money of the United States of America (unless the Bond to ,—h ch this coupon is %ttached is previously called for redemption as th,reir, -rovided and provision for this redem <tion there - Note 2 of made) payable out of th.; ravanuus 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 -A, 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, Mayor, ATTEST: City Secretary. (Note 1: The name of a bank in the City of New York to be inserted pursuant to a resolution to be adopted after the Bonds shall have been awarded to the purchaser), (dote 2: This parenthetical provision shall be inserted only in Bonds or in coupons affecting the Bonds which the City has the right to redeem prior to maturity and while such option exists,) (T}USTL-,:1S CEi:TIFICATE) This Bond is one of the Bonds described in the within mentioned Supplement to the Deed of Trust, hIEFICANTILE NATION:iL B.,AK AT DALLAS, DALLAS, Tf.lA5 Trustee, By Authorized Officer. (FORM OF Ca PTROLLERFS CERTIEICATE) OFFICE OF COMPTROLLEF, , STATE OF TEXAS Registration No, _ I HEREBY CERTIFY that there is on file and of record in my office a certificate of the „ttorney 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 Coutitution and Laws of the State of Texas, and that it is a valid and binding special obligation of the City of Corpus Christi, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said Bond has this day been registered by me. WITNESS kY He,W AND SEAL OF OFFICE at Austin, Texas, Comptroller of Public Accounts of the State of Texas, (SEAL) (NO VRITING TO BE BADE HEREON EXCEPT BY THE BOAD REGISTRAR OF THE CITY) CERTIFICATE OF REGIMATION 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 naiwd in the below registration blankor 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 no case, shall negotiability of the coupons attached hereto be affected by any registration as to principal. AAu,L OF fi.:GISTE ZD HOLDER DaTS OF HEGISRATION SIGN.TUILE OF Rr GIdThAk Trustee] (end of bond form) AM WHEREAS, the execution and delivery of this Supplement have been duly authorized by the City Council of the City of Corpus Christi and all acts and things required to be done precedent to and in the execution of this Supplement and precedent to and in the execution of said Bonds, have been done and performed in regular and due time, form, and manner as required by the Constitution and Laws of the State of Texas, and the 1948 -A Bond Ordinance; I THnFiSFiJF:r�, in order to secure the payment of principal of and interest on the Bonds according to their tenor and effect, and the terms of the Deed of Trust and this Supplement, and to secure the performance of the covenants and obligations contained in the Deed of Trust and in this Supplement, and in consideration of the acceptance by the Trustee of the trust hereby created, and of the purchase and acceptance of said Bonds by the holders thereof, and of One Dollar (561,00) in hand paid by the Trustee to the City upon the execution and delivery of this Supplement, the receipt whereof is hereby acknowledged, the City has executed and delivered this Supplement with the effect that all of the properties, revenues, rights and the franchise heretofore granted, bargained, sold, conveyed, assigned, transferred, warranted, mortgaged, pledged and set over to the Trustee under and by virtue of the Deed of Trust, are hereby declared by the City to be for the use and benefit of the Series 1948 -A Bonds in like manner and with like efficacy as for the use and benefit of the Series 1948 Bonds, in such manner that said pledged revenues, liens and franchise, are for the equal and proportionate benefit, security, and protection of all Bonds of both series and the interest coupons appurtenant thereto as well as for bonds and interest coupons hereafter to be issued under and secured by the Deed of Trust, within the amounts and under the conditions expressly prescribed by the Deed of Trust, without priority or distinction as to lien or otherwise of any Bond over any other Bond, or o-,er any other bond properly issued under the Deed of Trust by reason of priority in issuance or negotiation thereof, or by reason of the date or dates of maturity thereof, or for any other reason whatsoever, so that each and all of said Bonds,and bonds heretofore issued or hereafter to be issued as aforesaid shall have the same rights, lien and privileges under the Deed of Trust, This Supplement further witnesseth, that the City has agreed and .colenanted, and does hereby agree and covenant with the Trustee and the respective holden from time to time of such Bonds and coupons as follows: ARTICLE 1 FOW, AUTHENTICATION, REGISTRATION ND ISSUijXE OF BG'DS Section 1.01, The Bonds and the coupons attached thereto shall be in substantially the forma hereinbefors recited, and shall be issued in the aggregate principal amount of not to exceed Two Killion Five Hundred Fifty Thousand Dollars (42,550,000.00). .Q.1 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 t:.ercn, and when so signed and sealed, the Bands shall be submitted to the nttorney General of the State of Texas for approval and to the :hate 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 authentication as provided in Section 15 of the ordinance authorizing the issuance of the Bonds and authorizing this Supplement, 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. (b) Upon request of the City the Trustee shall authenticate all or any of the Bonds, and shall deliver the authenticated Bonds to the City upon proper receipt." Section 1,02. 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 pei -son or persons who signed and sealed such Bonds had not ceased to be such officer or officers of the City Section 1.03. The coupons to be attached to the Bonds shall be signed by the facsimile signatures of the Mayor and City Secretary in 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 Trust all matured coupons the:: ^eto attached shall be detached and cancelled and such cancelled coupons shall be delivered to the City Secretary. Section 1.04, Only such of the Bonds as shall have endorsed thereon the duly executed certificate of the Trustee substantially in the form hereinabove set _`orth shall be entitled to any lien or benefit hereunder, but such certificate of the Trustee upon any Bond shall be conclusive evidence that b=b Bond has been duly authenticated and delivered hereunder and that the holder is entitled to the benefit of the trust hereby created. Section 1.05. In case any Bond issued hereunder vrith 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 m ay, 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 substitution shall be made only upon receipt of satisfactory evidence of loss, theft, or destruction of such Bond and its coupons, proof of ownership thereof, satisfactory indemnity to the Trustee and the City, and payment of the cost of preparing such bond and coupons. ARTICLE II. PROOF OF COMPLIANCE WITH P`tP'jQUISITES To ISSUANCE OF BONDS Section 2,01. The City covenants that at the time or prior to the time it will submit to the Trustee any of the bonds for authentication it Will furnish to the Trustee in the form prescribed by Section 2,05 of the Deed of Trust evidence that all of the conditions precedent to the issuance of "Additional �onds'l authorized under said Section have been met and that under the Deed of Trust and the act of the Trustee in authenticating said Bonds shall be conclusive of the authority of the City to issue the Bonds, and that said requirements and conditions have been met, ARTICLE III. COTLNANTS AS TO CONDITION OF FUNDS Section 3.01. The City covenants that it is not delinquent but that it is current in the performance of all of its obligations assumed under Article V of the Deed of Trust as to the establishment.of the several funds therein provided and as to the payments required to be made by the City into said several funds. ARTICLE IV. APPLICATION OF REVENUES REMITTANCE OF FUNDS TO E?u!KS OF PAIMENT Section 4.01. All of the provisions of Article V of the Deed of Trust are hereby confirmed as being applicable to the Bonds, Section 4.02. In the event that the Bonds and coupons are made payable at any bank other than or in addition to the Trustee, it shall be the duty of the Trustee at least 10 days prior to any interest payment date, to make remittance to such bank or banks out of moneys in its posses Sion available for the purpose an amount sufficient to pay such installment of interest or such installment of interest and principal as the case may be, A ARTICLE V. POSSESSION OF MORTGAGED PROPERTY Section 5.01. The rights reserved to the City and the duties assumed by the City under Article VII of the Deed of Trust, so long as any of the Series 1948 Bonds are outstanding, shall remain effective likewise so long as any of the Series 1949 -A Bonds are outstanding, ARTICLE VI. DEFAULTS AND Section 6.01. All of the provisions contained in Article VIII of the Deed of Trust (which is captioned "Defaults and Remedies") shall be interpreted as applicable not only to the Series 1948 Bonds, but with like effect as applicable to the Series 1948 -A Bonds. In determining whether the holders of minimum percentage of Bonds shall. have consented to or requested any action under said Article the Bonds of both Series shall be considered. ARTICLE VII. GE1QERAh PROVISIONS Section 7.01. All of the provisions of Article XII of the Deed of Trust (captioned °General provisions ") shall be interpreted as applicable not only to the Series 1948 Bonds, but with like effect as applicable to the Series 1948 -A Bonds. ARTICLE VIII. RENDERING ALL PROVISIONS OF DEED OF TRUST APPLICABLE TO S_;RIES 1948 -A B_MDS UNLESS CL:iARLY INAPPLICABLE. Section 6.01. Unless the context of a given section of the Deed Of Trust shows clearly that it rust be inapplicable to the Series 1948 -A Bonds, or unless the inclusion of such section as so applicable would nullify or render unworkable one or more sections contained in the Supplement, each section of the Deed of Trust is hereby declared to be applicable to the Series 1948 -A Bonds. ARTICLE IX. DEFEASANCE Section 9.01. The provisions of Article XIII of the Deed of Trust prescribing the terms and conditions under which title to the plcdgedpro- perties and rights shall revert to the City, to-wit: upon the payment of all of the Bonds, shall be interpreted to mean upon the final payment or retire- ment of all of the Series 1948 Bonds and all of the Series 1948 -A Bonds. IN WITNESS :iNEREOF, the City of Corpus Christi, Texas, acting through and being duly authorized thereunto by its governing body, the City Council, has caused this Supplement to the Deed of Trust in 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 of Dallas, to evidence its acceptance of the trusts hereby created, has caused its corporate name and seal to be hereunto affixed, and this Supplement to the Deed of Trust to be signed by Clarence Z. 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 smitten. CITY OF CORPUS CHRISTI, =1S, BY Mayor. ATTEST: City Secretary (CITY SEAL) AU.RCANTILE NATIOPIAL BANK ^T DALLAS, DALLAS, TEXAS, TRUSTEE BY Its Trust Officer. ATTEST: Its Assistant Cashier. (HAMS SE,11) THE STATE OF 'TEXAS ' COUNTY OF NUF.CfS BEFORE ME, THE UNDERSIGNED AUTHORITY, in and for Nueces County, Texas, on this day personally appeared Wesley 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 ]mown to me to be, respectively, the Mayor and City Secretary of the City of Corpus C',,risti, a municipal corporation, and each acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity th--rein stated, as the act and deed of said City of Corpus Christi, Texas. GI TN UNDER N7 HXND AND SE: ;1, OF OFFICE, this the—day of , 1948. Notary Public in and for Nueces (-AL) County, Texas. THE STATE OF T:XAS COUNTY OF DALLAS BEFORE ME, THE UNDERSIGNED AUTHORITY, in and for Dallas County, Texas, on this day personally appeared CLARENCE E. SAPPLE, Trust Officer, and , Assistant Cashier, respectively of 14MCANTIIZ NATIONAL BANK AT DALLAS, known to me to be the persons whose names are subscribed to the foregoing instrument and known to me to be, respectively, the Trust Officer and Assistant Cashier of MERCANTILE NATIONAL SANK AT DALLAS, a corporation, and each acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of said M�CANTILE NATIONAL 3 -a,N!K AT DALLAS. GIVEN UNDER MY HAND AND SE:,L CF OFFICE, this the_day of , 1948. Notary public, in and for Dallas County, Texas. (S.AL ) THE STATE OF Tn AS COUNTY OF SAN FAMICIO I, , County Clerk of San Patricio County, Texas, do hereby certify that the foregoing instrument of writing dated on the_day of , 1948, with its certificates of authentication, was filed for record in my office on the_day of , A. D. 1945, at o� clock_. M., and duly recorded this—day of , 1949, at_ .-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 _ .,clock _. M., as a chattel mortgage, WITNrSS MY OFFICIAL HM and seal of office this the—day of , 1948. MIL) County Clerk San Patricio County, Texas. TH1; ST.iTE OF TEXAS COUNTY OF JIM WELLS I, , County Clerk of Jim Wells County, Texas, do hereby certify that the foregoing instrument of writing dated on the_ day of , 1948, with its certificates of authentication, was filed for record in n6' office on the _day of A. D. 1948, at o'clock . M., and duly recorded this-day of , 1948, 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 , 1948, at o'clock M., as a chattel mortgage. WITNESS MY OFFICIAL HAND and seal of office this the-day of 1948. County Clerk, Jim 1Ie11s County, Texas. (SEAL) THE STATE OF TEXAS COUNTY OF LIVE OAX I, , County Clerk of Live Oak County, Texas, do hereby certify that the foregoing instr=ent of writing dated or the_day of , 1948, with its certificates of authentication, was filed for record in W office on the day of A. D. 1948, at _ o'clock _. M., and duly recorded this day of , 1948, 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 1948, at 'clock _. M., as a chattel mortgage. WITNESS MY OFFICIAL H ND and seal of office this the day of , 1948. County Clerk Live Oak Caunty, Texas. (SEAL) THE STATEE OF TMAS , COUNTY OF NUECES I, County Clerk of Nueces County, Texas, do hereby certify that the foregoing instrument of writing dated on the—day of , 1948, with its certificates of authentication, was filed for record in my office on the day of , „ D. 1948, at _ o,clock . M., anc duly recorded this—day of , 1948, at __ o'clock_, M., in the Deed of Trust Records of said County in Volume, on pages I do lurther certify that an executed and acknowledged copy of said instrument was filed in my office on the day of , 1948, at o'clock M. as a chattel mortgage, VII MSS Ii OFFICI.'L H BD and seal of office this the_day of 1948. County Clerk, Hucces County, Texas, (SEAL) (1) This ordinance authorizing the Bonds prescribes the date, and (together with the resolution to be adopted after the sale of the Bonds has been concluded) prescribes the bank or banks at which the principal of and interest on the Bonds are to be payable, interest rate or rates, maturity dates, and other details necessary to identify the Bonds, the purposes for which the proceeds are to be used, and this ordinance contains adequate and appropriate provisions assuring the application and use of the proceeds for the specific purposes for which the Bonds are issued and safeguarding the funds during construction: (2) A Supplement to the Deed of Trust as is authorized in this Bond Ordinance properly identifying the Bonds shall be executed and the Bonds shall be authenticated by the Trustee before their issuance shall have been completed; and WHEREAS, as directed by Section 8 of this ordinance all of the certificates and other showings evidencing existence of facts and performance of conditions required under Section 2.05 of the peed of Trust shall be filed prior to the authentication of the Bonds by the Trustee; and '^EERE• S, in order to bring the Bonds authorized by this ordinance under the terms of the Deed of Trust, and for other purposes hereinafter in this ordinance specified, it is proper that a Supplement to the Deed of Trust be executed; and WHEREAS, in order to make possible the improvements, extensions, repairs or replacements of and to the City's waterworks system it is necessary that bonds for such purposes be authorized and issued; BE IT ORDAINED BY THE CITY COUNCIL OF M, CITY OF CORPUS CHhISTI, TEXAS: 1. That the findings and statements contained in the preamble to this ordinance are true and correct. 2. That for the purpose of providing funds to make improvements,' extensions, repairs or replacements of and to the waterworks system of the City of Corpus Christi there shall be issued the Waterworks Revenue Bonds of the City of Corpus Christi, Texas, in the amount of (p2,550,000.00, under authority of the Constitution and laws of the State of Texas and the Charter of said City, including but without limitation Chapter 349 Acts of the 49th Legislature, which bonds and the interest thereon shall be payable from the revenues from said waterworks system and secured by a deed of trust on said system and by a pledge of an operating franchise in the event the properties comprising said waterworks system are sold after default, all as more specifically hereinafter provided. 3. That said bonds shall be called "City of Corpus Christi .waterworks Revenue Bonds, Series 1948A (hereinafter sometimes called the "Bonds "), shall be dated June 1, 1948, shall be in denomination of One Thousand (p1,000.00) Dollars each, and shall be numbered One (1) to Two Thousand Five Hundred Fifty (2,550), both inclusive, 4. The Bonds shall,be registerable as to principal at the option of the holder on the books of the registrar upon presentation of the Bonds to such Registrar. The Trustee is hereby appointed Bond Registrar. Such regishation 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. b� 5. That the Bonds shall bear interest payable on December 1, 1948' and thereafter semi - annually on June 1 and December 1, at such rate or rates not greater than 5N 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 June 1, 1952, is to be subject to redemption prior to maturity on June 1, 1951 and on any _nterest payment date thereafter to and including December 1, 1957, solely out of money available in the kedemption Fund created by said Deed of Trust. Each of the Bonds maturing on and after June 1, 1959 is subject to redemption prior to maturity on June 1, 1958 and on any interest payment date thereafter out of money available to the City. The prices at which the Bonds may be retired are determined as follows: par and accrued interest to the date so fixed for redemption plus a premium of 3 -1 /2p if redeemed on or prior to December 1, 1951, such premium to be reduced on June 1, 1952 to 3z, on June 1, 1953 to 2 -1/Z�, on June 1, 1954 to 2%, on June 1, 1955 to 1 -1 /2A, on June 1, 1956 to fro, and on June 1, 1957 to 1 /2%. Each of the Bonds then outstanding may be redeemed on and after June 1, 1958 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 ,-ay any Bond so called for redemption and accrued interest thereon plus the Premium specified, it shall not thereafter bear interest. In the event less than all of the Bonds outstandin!& . 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. /If 6. Both principal and interest shall be payable in lawful money of the United States of America at Mercantile 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. 7. Such Bonds shall :nature serially as follows: BONDS NOMBERS I•iAT'UBITY ]PATES INTLhEST kATz6 RKOUNTS 1 to 45, both incl. June 1, 1949 45,000.00 46 to 951 96 to 145, " June 1, 1950 ' June 1, 1951 50,000.00 50,000.00 146 to 195, " 196 to 2W, " June 1, 1952 " June 1, 1953 50,000.00 55,000.00 251 to 305, " " June 1, 1954 55,000.00 306 tc 360, " " June 1 1955 , 361 to tro " " June 1, 1956 60,000.00 421 to 480, " June 1, 1957 60,000.00 481 to 545, " ' June 1, 1958 65,000.00 546 to 610, " " June 1, 1959 65,000.00 611 to 680, ' 681 to 750, " " June 1, 1960 " June 1, 1961 70,000.00 751 to 825,. " " June 1, 1962 70,000.00 75,000.00 826 to 900, " " June 1, 1963 75,000.00 901 to 980, Jun. 1, 1964 80,OpO.00 981 to 1065, " 1066 to 1155, " June 1, 1965 " June 1, 1966 85,000,00 90,000.00 1156 to 1245, " June 1, 1967 90,000.00 1246 to 1345, " June 1, 1968 loo,000.o0 1346 to 11415, " " June 1, 1969 100,000.00 1446 to 1550, " " June 1, 1970 105,000.00 1551 to 1655, " June 1, 197; 105,000.00 1656 to 1770, " " June 1, 1972 115,000.00 1771 to 1890, " " June 1, 1973 120,000.00 1891 to 2010, " " June 1, 1974 120,000.00 2011 to 2135, " June 1, 1975 125,000.00 7136 to 2265, " " June 1, 1976 130,000.00 2266 to 2405, " " June 1, 1977 140,000.00 2406 to 2550, " " June 1, 1978 145,000.00 8. That each of such Bonds shall be signed by the May¢r 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, and after compliance with the requirements set forth in Section 2.05 thereof, and in the manner prescribed in Supplement to the Deed of Trust for which provision is hereinafter made in p this ordinance. 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 the Mayor and the 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, 9. That such Bonds, the coupons to be thereto attached and the endorsements to appear thereon, shall be in substantially the form shown in the Deed of Trust and in the Supplement thereto, hereinafter in this ordinance authorized. 10. That the 'Waterworks System of the City of Corpus Christi shall be operated by the City and the revenues thereof shall be applied and the Bonds herein authorized shall be paid in the manner set out and provided in the Deed of Trust, and all of the provisions of said Deed of Trust shall be effective and shall be applicable to the authorization, issuance and payment of the Bonds and to the operation of such Waterworks System with like force and effect as though all of said provisions were otherwise than in the Deed of Trust separately set out in this ordinance. 11. To identify and bring the Bonds under the terms of the Deed of Trust, evidence the fact that the Bonds are secured by liens upon the revenues, the properties constituting the Waterworks System, and on the franchise to operate such properties in the event of sale after default, of equal dignity with the liens securing the Series 1948 Bonds, and for the purpose of fining in further detail the rights of the holders of such Bonds, and the rights and duties of the City and of the Trustee, a Supplement to the Deed of Trust, hereinafter called the "Supplement" in substantially the following form and language is hereby authorized to be executed and delivered on behalf of the City of Corpus Christi: 12. After the adoptisn of the resolution prescribing the interest rate or interest rates of the Bonds, and the additional bank of payment, such interest rate or rates and the name of such additional bank shall be shown at the proper places in the Supplement before it shall be executed. _ 13. The Supplement and all of the provisions thereof are hereby :Wade a part of this ordinance. 14. Sectim 13 oft he Series 1948 Bond Ordinance granted to the purchaser or purchasers of the City's waterworks properties at a sale to be made in the event of the default of the City?s obligation to pay principal of and interest on the Series 1948 Bonds, a franchise to operate said water- works properties for a period of twenty (20) years. As is provided in the Deed of Trust such franchise protects also by a parity of lien and rights the Bonds authorized by this ordinance. 15. (a) ;;£ter 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) Upon the request of the City the Trustee shall authenticate all or any of the Bonds and shall deliver the authenticated Bonds to the City upon proper receipt; (c) The proceeds from the sale of the Bonds shall be deposited by the City in its official Depository Bank to the credit of a special fund to be called the "Construction Fund" to be administered as prescribed by Section 17 of this Ordinance. 16. Additional Waterworks System Revenue Bonds may be issued to be secured by a pledge of the revenues and a lien upon the properties of the Waterworks System and upon the franchise of the System (as authorized in Section 13 of the Series 1948 Bond Ordinance) of equal dignity with the pledge and liens securing the Waterworks Revenue fiords, Series 1948, and the Uaterworks Revenue Bonds, Series 1948 -A, provided that such additional Waterworks Revenue Bonds shall be issued for improvements or extensions or repairs or replacements of and to the Waterworks System or for any one or more or all of such purposes, subject to the limitations contained in .article II of such Deed of Trust, and by article II of the Supplement, which Deed of Trust and Supplement are respectively made parts of the Series 1948 and Series 194a -A Bond Ordinances. 10.9 17. (d) Prior to or concurrently with the authentication of the Bonds by the Trustee M ?ssrs. Greeley and Hansen of Chicago, Illinois, hereinafter called the "Consulting Engineers" shall file with the Trustee a report, which shall reflect the fact that they have examined the plans and specifications of the improvements, extensions, repairs or replacements to be made or constructed by the City with the proceeds of the Bonds. The plans and specifications thus approved and filed, together with any field changes later approvod by the Consulting Engineer shall be considered as the "Plans and Specifications ". Such report shall approve in general such P'_ans •:nd Specifications and shall express their opinion as to whether the cony available from the sale ,f the Bonds will be sufficient to pay for such improvements, extensions, repairs, or replacements. They shall perform the other duties required under this ;article. W. w special fluid is hereby created and designated City of Carpus Christi '- %tarwcrks System Construction Fund (herein sometimes called the "Construction Fund "). There shall be deposited to the credit of said Construction Fund all moneys received fr)m the sale of the Bonds, except that an, mcnr3y receiv._ by the City by way of .rued iat—t <n the Ponds stall be deposited ir. the interest and Sinking Fund (Sc;ction 5.03 -of the Dead of Trust). (C). The moneys in the Construction rlmd shall be held by the City-s Depository (presently Corpus Christi National Bank) hereinafter vs this Section 17 sometimes called the "Depository", in trust to be applied to the payment of the cast of the improvements, extensions, repairs or renlacement of and to the City's waterworks system, for •:,,hich the B: %nds -ere authorized, and pending such applioation in eccordance with this Section shall be .subject to a lien nd charge in favor of t he holders of the Hands and for the further security of such holders uptil paid out as herein provided. (D) ,all disbursements froc. the Construction Fund to be used either to pay obligations under contracts or in connection with force account projects in making such improvements, extensions, repairs or replacements, shall be subj,act to the provisims and restrictions of this Section 17. (E). Before any payments shall be made from the Construction Fund the City shall file with the Depository the following: (a) a requisition signed by the City Controller and approved by the City Manager stating in respect of each payment to Le made: (1) The item number of the payment; (2) The name of the person, firm or corporation to whom payment is due; (3) The amount to be paid to such person, firm or corporation; (4) In reasonable detail, the purpose for which the obligation to be paid was incurred. (b) A certificate signed by the City Controller :end approved by the City Manager attached to the requisition, certifying: (1) That obligations in the st.:ted amounts have been incurred by the City and that each item thereof is a proper charge against the Construction Fund and has not been paid; (2) That there has not beenfiled ?ryth or served Upon the City notice of any lien, right to lien, or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the persons, firms or corporations named in such requisition, which has not been released or will not be released simultaneously with the payment of such obligation, and (3) That such requisition contains no item representing payment on account of any retained percentages which the City is at the date of such certificate entitled to retain. (F). ., certificate signed by the Consulting Engineer certify'..ng his approval of said requisition, and further certifying that each such obligation was ,^.roperly incurred in accorcance with the Plans and Speci- fications, and has been paid, and that in so far as such obligation was incurred for work, materials, equipment or supplies, that such work was actually performed, or such materials, equipment or supplies were actually installed, in or about the construction of improvements, extensions, repairs or replacements of and to the City's Waterworks System, /z 10 shall be filed with the Depository, within 30 days after payment of such requisition. If such certificate is not so filed within such period of time, or if a notice of deficiencies is not filed within thirty days as hereinafter set out, then and in such event the consulting engineer shall be deemed to have waived the filing of such certificate or notice of said deficiency as the case may be; provided that in the event said Consulting Engineer finds such work was not actually performed or such materials, equipment or supplies were not actually installed in or about the construction of improvements, extensions, repairs or replacements of and to the City's 'Iaterworks System, he shall within such 30 day period and immediately after he shall have reached such conclusion, notify the City Manager in writing and at the same time send a copy of such notice to the Depository, stating in detail in same the deficiency found. Upon receipt of such notice the City Manager shall immediately shut dorm construction then in progress under the particular contract or under such force account project as the case may be, and work shall not be resumed until deficiencies sat out by said Consulting Engineer have been corrected and upon such correction the Consulting Engineer shall imediately send s notice of same to the City Man-_gar and a copy of said notice to the Depository. Upon receipt of Consulting Fnginaers' notice of such deficiencies, the Depository 811211 not make any further payae nt of money from the Construction Fund on the particular contract or force account project involved, except on such requisitions as shall have been signed by the City Controller and approved by the City Manager prior to said notification to the City Manager of deficiencies in work or materials, until the Depository receives further notice from the Consulting Engineer that the deficiencies have been corrected. It is further provided th:.,t the last or final estimate for improvements, extensions, repairs or replacements to the Waterworks system shall not be paid until same has been approved in writing by the Consulting Engineer and said Consulting Engineer shall immedi..tely upon approval send a certificate to the City Manager and Depository of such approval, (G), Upon receipt of each requisition and accompanying certificates the Depository shall transfer from the Construction Fund to the credit of a special account in the name of tha City to be used exclusively for making disbursements for such improvements, extensions, retairs, or replacements, an amount equal to the total of the amount to be paid as set .forth in such requisition. Each such obligation against said special account in the Depository shall be paid by check drama on such special account .and signed by the City Eanr:.eer and the Director of Finance or Comptroller of the City of Corpus Christi, and having the sane identifying number =_s the number stated in the requisition for moneys on account of such cblieati— Moneys deposited to the credit of such special account n the Depositors she-l1 be deemed to be a part of the Construction Fund until checked out as in this paragraph provided. If for any reasan the City should decide prior to the — 77ment of any item in :a requisition to stop payment of such item, the City Fran..,ger shall give notice of such decision to the Depository, and thereupon the City shall return the amount of such item by check cra,•.n m such special account for the credit .f the Construction Fund. (H). All ruauisiticns and certificates received by the Da Pository as required in this Section 17 as conditions of the payment from the Construction Find shall be re. iined in the possession of the Depository subject at all timos to the insnceti>n of the City, the Consulting Enoinser and the agents and representatives thereof, (I). :it least once in each six months until said Construction Find ehall havo Wen expended the City shall cause an audit to be made by a certified Public Accountant covering all receipts and m -ney then on deposit with the Depository or on deposit in the snecin.l account, and the security held therefor, and all disbursements made pursuant to requisitions filed in accord;. -nce -with the provisions s.f this Section, and copies of the audits so made shall be furnished to the City Manager, to the Consulting Engineer, and to the Trustee, W. 4hen the construction of the proposed improvements, extensions, repairs or replacements, has been completed, evidence of that fact shall be filed with the Trustee in the form of a certificate stating the date of such completion, signed by the City Manager, the City Controller, and the Consulting Engineer, accompanied by an opinion of the City Attorney stating that the City has acquired or owns title to all of the properties represented by such improvements, extensions, repairs or replacements, and to all land, property rights, rights -of -way, franchises, easements and other interests in lands necessary for their operation, free from all liens or encumbrances, except liens, encumbrances or other defects of title which do not have a materially adverse affect upon the City's right to use such properties r the purposes intended, and that there are no uncancellod m chanicsl, laborersl, contractors', or materialmen's liens on such Properties or on file in any public office where the sane shouldd b% filed in order to be valid liens against any part of such properties, and th_t in the opinion of the signers, the time within which such liens can be filed has expired. The balance in the Construction Fund pct reserved by the City for the payment of any remaining part of the cost of such improvements, extensions, repairs or replacements, shall be retained by the Depository subject to the use by the City in the future for the purpose of improvements, extensions, repairs or replacements of and to the City's ldaterworks System and -:n such an event shall be expended for such purposes substantially in accordance with the procedure sut up in this Section, ifter the construction program initially commenced shall have been completed and before inaugurating any subsequent construction program the City shall have the option of directing the Depository to remit to the Trustee the remainder of said C nstruction Fund to be deposited in the ;,esorve Account of the Interest -nd Sinking Fund establishod under Section 5.09 of the Deed of Trust. But the Trustee shall have no responsibility for any failure of the City or the Depository to perform their respective obligati ms to make such transfer or to _perform any other obligations under this Section. fs � (K). Moneys in the Construction Fund shall be secured in the same manner as provided by Section 5.04 of the Deed of Trust for moneys in the Interest and Sinking Fund. M—eys in the special account in the Depository established pursuant to sub - section (G) hereof shall be secured in the manner prescribed by Section 5.07 of the Deed of Trust in reference to n�neys to be deposited in the Depository. 13. -11 ordinances, resolutions and orders or parts thcrco£ in conflict herewith are, t� the extent of such conflict, hereby repealed. 19. If any s.action, provision or part hereof shrill be held to be invalid or ineffective for any reason, the remainder hcreo_° shall nevertheless remain in full force and effect. P :SSED �FiD APPROVED /r. TL , 1948. v y. Rf r. JTEST- �G stery (CITY SEAL) The foregoing Ordinance, Supplement to the Dead •,f Trust, and form of bond and coupon _.t/�herein contained have been anprovcd as to form and correctness this_��ay o f, 1948. City ;ittornoy 3fe. l6 /� 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. Ferris R. R. Henry Joe T. Dan— The foregoing Crdinance was read the secottd time and passed to the third reading on the Y_ day of , 1948, by the following vote: Jesley E. Seale George R. Clark, Jr. John A. Ferris R. R. Henry Joe T. Dawson The foregoing Ordinance was read t third timee and passed and ordered approved by the Mayor on the _� day o , 1948, by the following vote: Wesley E. Seale George R. Clark, Jr. John A. Ferris R. R. Henry Joe T. Dawson APPROVED this _/5- day of , A. D. 1948. tiY U OJT � ry h .f 0 Y e Y APPROVED TO LEGAL FORM: Pc 1 ,A LIA NI aey 1 J'�' C, " Asa s as Y torney e'. R City of Corpus Christi, Texas. AO-19 1