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HomeMy WebLinkAbout02680 ORD - 01/12/1950Ai r�. 9 .. ORDINANCE NO. S,Q© AN ORDINANCE AUTHORIZING THE ISSUANCE OF $1,000,000 REVENUE BONDS OF THE CITY OF CORPUS CHRISTI FOR THE PURPOSE OF IMPROVING, ENLARGING., EXTENDING AND RE- PAIRING THE CITY'S SANITARY SEWER SYSTEM AND MUNI- CIPAL GAS SYSTEM; PRESCRIBING THE TERMS AND CONDI- TIONS THEREOF; MAKING PROVISION FOR THE PAYMENT OF PRINCIPAL AND INTEREST THEREON BY PLEDGING THE NET REVENUES OF SAID MUNICIPAL GAS SYSTEM; MAKING CER- TAIN COVENANTS OF THE CITY WITH REFERENCE TO THE USE AND PLEDGE OF THE REVENUES OF THE MUNICIPAL GAS SYSTEM; RATIFYING AND CONFIRMING THE SALE OF SAID BONDS; AND DECLARING AN EMERGENCY. WHEREAS, at an election held in the City of Corpus Christi on the 17th day of December, 1949, more than a majority of the duly qualified resident electors who own taxable property within said city and who had duly rendered the same for taxation, voting at said election, voted in favor of the proposition of issuing Eight Hundred Sixty Thousand ($860,000) Dollars revenue bonds of said . city for the purpose of improving, enlarging, extending and repair- ing the sanitary sewer system of said city, such bonds to be secure( by a pledge of the net revenues of the city's municipal gas system and further voted in favor of the proposition of issuing One Hundrei Forty Thousand ($140,000) Dollars revenue bonds of said city for th4 purpose of improving, enlarging, extending and repairing the city's municipal gas system, such bonds to ae secured by a pledge of thg net revenues of said municipal gas system and in the ordinance call• ing said election it was provided that if both said propositions re- ceived a majority vote at said election, the City Council shall be authorized to combine the bonds described in each proposition into a single issue of bonds and to secure the same by pledging the net revenues to be derived from the operation of the city's municipal gas system, and this City Council is of the opinion that the bonds authorized in both propositions should be so combined: Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1: That the bonds of the City of Corpus Christi, Texas, be issued in the principal amount of One Million ($1,000,000.00) Dollars, to be known and designated as "CITY OF CORPUS CHRISTI OAS SYSTEM REVENUE BONDS ", for the purpose of improving, enlarging, ex- tending and repairing the sanitary sewer system and the municipal gas system of said city, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Articles 1111 to 1118, both inclusive, of the Revised Civil Statutes of Texas, 1925, as amended, and the City Charter of said city. Section 2: Said bonds shall be dated January 15, 1950, shall be numbered from one (1) to one thousand (1,000), both inclusive, shal be in the denomination of one Thousand ($1,000.00) Dollars each, aggregating One Million ($1,000,000.00) Dollars, and shall become due and payable on the 15th day of January in each of the years and in the respective amounts shown in the following schedule, to -wit: Bond Nos. Maturity Amount - 50 00 January 15, 1951 $ 50,000.00 51 l51 - 150 „ " 1952 50,000.00 ' 1953 50,000.00 151 - 200 " " 1954 50,000.00 201 - 250 251 - 300 n n 1955 50,000.00 1956 50,000.00 301 - 350 " " 1957 50,000.00 351 - 400 " " 1958 50,000.00 401 - 450. " " 19560 50,000.00 451 - 500 " " 50,000.00 501 - 550 " " 61 50,000.00 551 - 600 62 50,000.00 601 - 650 " ": 963 50,000.00 651 - 700 " " 1964 50,000.00 701 - 750 " 1965 50,000.00 751 - 800 " " 1966 50,000.00 801 - 850 " " 1967 50,000.00 851 - 900 " " 1968 50,000.00 901 - 950 " " 1969 50,000.00 951 - 1000 " " 1970 50,000.00 The city expressly reserves the option of redeeming all or any part of said bonds, in inverse order of annual maturities, on any interest payment date by paying to the owners and holders thereof, in addition to unpaid accrued interest to the date fixed for redemp tion, the following respective sums: 105% of the principal amount of bonds to be redeemed, if redeemed on or prior to January 15, 1954; 104% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1954 and on or prior to January 15, 1958; 103% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1958 and on or prior to January 15, 1962; 102% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1962 and on or prior to January 15, 1966; 101% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1966 and prior to maturity. If less than all of the bonds maturing in any calendar year are called for redemption at one time, the bonds maturing in such year which are to be redeemed shall be determined by the city by lot. If the city elects to redeem all or any part of said bonds, notice in writing thereof shall be given to each of the banks at which said bonds are payable and by publication at least one time each in the official newspaper of the City of Corpus Christi, Texas and in a financial journal published in the City of Chicago, State of Illinois, which notice shall be mailed to each of said banks, properly stamped and addressed, and published in said newspaper and financial journal at least thirty (30) days prior to the date fixed for redemption. When said bonds have been called for re- demption and notice thereof given as herein specified and due pro- vision has been made to redeem the same, the right of the owners and holders to collect interest on said bonds which would otherwise accrue after the redemption date shall terminate as of the date fixed for redemption. Section 3: Said bonds shall bear interest at the following rates: Bonds Nos. One (1) to Two Hundred (200), both inclusive, at the rat of Two and One -half (2- 1 /2,%) per cent per annum; Bonds Nos. Two Hundred and One (201) to Four Hundred (400), both inclusive, at the rate of Two and Three - fourths (2 -3/4%) per cent per annum; and Bond Nos. Four Hundred and One (401) to One Thousand (1,000), both in- clusive, at the rate of Three (3 %) per cent per annum, interest pa able July 15, 1950 and semi - annually thereafter on January 15th and July 15th of each year until the principal sum is paid. Both principal and interest shall be payable in lawful money of the United States of America at Harris Trust & Savings Bank, Chicago, Illinois, or, at the option of the holders, at The Corpus Christi National Bank, Corpus Christi, Texas, and interest falling due on and prior to maturity shall be payable only upon presentation and surrender of the interest coupons attached to said bonds as they severally become due. Section 4: That each of said bonds shall be signed by the Mayor countersigned by the City Secretary, and the corporate seal of sal, city shall be impressed upon each of them. The facsimile signa- tures of the Mayor and City Secretary may be lithographed, engrave, or printed upon the coupons httached to said bonds and shall have the same effect as if they had been signed by said officers. Section 5: The form of said bonds shall be substantially as fol- lows: No $1,000.00 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI OAS SYSTEM REVENUE BOND The City of Corpus Christi, in the County of Nueces, in the State of Texas, for value received, hereby acknowledges itself in- debted to and promises to pay to bearer on the 15th day of January, 19 , solely from the special fund hereinafter specified, the sum of ONE THOUSAND DOLLARS ($1,000.00), with interest thereon from date at the rate of ('$) annum, interest payable on the 15th day of July, 1950 and semi- annually thereafter on January 15th and July 15th of each year un- til the principal sum shall be paid. 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 and nterest shall be payable only from the special fund hereinafter specified. Both principal and interest are payable it lawful money of the United States of America at Harris Trust & Savings Bank, Chicago, Illinois, or, at the option of the holders, at The Corpus Christi National Bank, Corpus Christi, Texas. The date of this bond, in conformity with the ordinance hereir after mentioned, is January 15, 1950. This bond is one of a series of one thousand (1,000) bonds of like date and tenor, except as to number, maturity, and interest rate, numbered from one (1) to one thousand (1,000), both inclusive in the denomination of One Thousand ($1,000.00) Dollars each, aggre gating One Million ($1,000,000.00) Dollars, and is issued for the purpose of improving, enlarging, extending and repairing the sani- tary sewer system and the municipal gas system of said city, under and in strict conformity with the Constitution and laws of the Stat of Texas, particularly Articles 1111 to 1118, both inclusive, Re- vised Civil Statutes of Texas, 1925, as amended, and the City Char- ter of said city, and by authority of a vote of the duly qualified resident electors of said city who owned taxable property within said city and who had duly rendered the same for taxation, at an election held on December 17, 1949, and pursuant to an ordinance passed by the City Council of the City of Corpus Christi, Texas, and duly recorded in the minutes of said City Council. The city expressly reserves the option of redeeming all or any part of the bonds of this issue, in inverse order of annual matur- ities, on any interest payment date by paying to the owners and holders thereof, in addition to unpaid accrued interest to the date fixed for redemption, the following respective sums; 105,% of the principal amount of bonds to be redeemed, if redeemed on or prior to January 15, 1954; 104% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1954 and on or prior to January 15, 1958; 103% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1958 and on or prior to January 15, 1962; 102% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1962 and on or prior to January 15, 1966; 101% of the principal amount of bonds to be redeemed, if redeemed after January 15, 1966 and prior to maturity. If less than all of the bonds maturing in any calendar year are called for redemption at one time, the bonds maturing in such year which are to be redeemed shall be determined by the city by lot. If the city elects to redeem all or any part of said bonds, notice in writing thereof shall be given to each of the banks at which said bonds are payable and by publication at least one time each in the official newspaper of the City of Corpus Christi, Texas and in a financial journal published in the City of Chicago, State of Illinois, which notice shall be mailed to each of said banks, properly stamped and addressed, and published in said newspaper and financial journal at least thirty (30) days prior to the date fixed for redemption. When said bonds have been called for redemption and notice thereof given as herein specified and due provision has been made to redeem the same, the right of the owners and holders to collect interest on said bonds which would otherwise accrue afte . the redemption date shall terminate as of the date fixed for redemp tion. Each successive holder of this bond 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 and each of the coupons hereto attached, may be negotiated by delivery by any perso: (having possession thereof, howsoever such possession may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value and without notice, there- by has acquired absolute title thereto, free from any defenses en- forceable against any prior holder and free from all equities and claims of ownership of any such prior holder. The City of Corpus Christi and its officials and fiscal agent shall not be affected by any notice to the contrary. The city covenants and agrees that it will not issue any addi- tional bonds or other obligations payable from, or secured by a i pledge of, the revenues of the city's municipal gas system except that, to the extent permitted by law, the city may issue additional) bonds payable from, and secured by a pledge of, the net revenues of said gas system on a parity in all respects with the bonds herein authorized, but only upon the following terms and conditions: (a) said additional bonds shall not exceed such amount that the total average annual principal and interest payments on such additional bon ds and on the bonds of this issue then remaining outstanding will exceed fifty seven and one -tenth (57.10 per cent of the aver- age annual net revenues of the city's municipal gas system for five (5) fiscal years next preceding the issuance of such additional bonds, as shown by the audit of an independent auditor; and said average . annual net revenues for such period shall not be less than one hundred seventy five (1750 per cent of the average annual debt service requirements on all bonds payable from the revenues of said system which will be outstanding after the issuance of said addition al bonds; (b) the city is not then in default as to any covenant, condition or obligation contained in said ordinance; (c) the city is not then in default in the payment of principal or interest on any of the bonds herein authorized and there is no deficiency in any of the reserve funds established by said ordinance; (d) the proposed additional bonds shall have been favorably voted at an election duly called by the City Council; and (e) such additional bonds are made to mature on January 15th of each year and interest is made payable on January 15th and July 15th of each year. This bond shall not be deemed to constitute a debt of the Cit of Corpus Christi nor a pledge of its faith and credit, but shall be payable as to principal and interest solely from the net revenue derived from the operation of the city's gas system, including all additions, extensions and improvements thereto which may hereafter be made, after deduction of the reasonable expenses of maintenance and operation of said system. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. It is hereby certified, recited and represented that the is- suance of this bond and the series of which it is a part is duly authorized by law; that all acts, conditions and things required to exist and to be done precedent to and in the issuance of this series of bonds to render the same lawful and valid, have been prop erly done and performed and have happened in regular and due time, form and manner, as required by law; that due provision has been made for the payment of the principal and interest of this bond and the series of which it is a part by irrevocably pledging the net revenues of said gas system; and that the issuance of this series of bonds does not exceed any constitutional or statutory limitation IN TESTIMONY WHEREOF, the City Council of the City of Corpus Christi, Texas, has caused the corporate seal of said city to be affixed hereto and this bond to be signed by the Mayor of said city, countersigned by the City Secretary, and has caused the an- nexed coupons to be signed by the facsimile signatures of said Mayor and City Secretary, all as of the 15th day of January, 1950. Countersigned: Mayor, City of Corpus Christi, Texas City Secretary, City of Corpus Christi, Texas *(Bonds Nos. One (1) to Two Hundred (200), both in- clusive, bear interest at the rate of Two and One -half (2 -1/2%) per cent per annum; Bonds Nos. Two Hundred and One (201) to Four Hun- dred (400), both inclusive, bear interest at the rate of Two and Three - fourths (2 -3/4%) per cent per annum; Bonds Nos. Four Hundred and One (401) to One Thousand (1,000), both inclusive, bear inter- est at the rate of Three (3 %) per cent per annum). Section 6: The form of coupon to be attached to said bond shall be substantially as follows: No. $ On the 15th day of , IS , unless said bond to which this coupon is attached has been called for previous redemp- tion and due provision made to redeem same, the City of Corpus Christi, in the County of Nueces, State of Texas, promises to pay i to bearer at Harris Trust & Savings Bank, Chicago, Illinois, or, at the option of the holder, at The Corpus Christi National Bank, Corpus Christi, Texas, the sum of Dollars ($ }, in lawful money of the Unite States of America, solely from the special fund specified in the bond to which this coupon is attached, said sum being the interest due that day on the City of Corpus Christi, Texas, Gas System Rev- enue Bond, dated January 15, 1950. The holder hereof shall never have the right to demand payment of this obligation out of any fund raised or to be raised by taxation. Bond No. City Secretary, city o orpus Christi, Texas ,Section 7: That substantially the following certificate shall be printed on the back of each of said bonds: OFFICE OF THE COMPTROLLER REGISTER NO. THE STATE OF TEXAS I hereby certify that there is on file and of record in my of- fice 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 is a valid and binding special obligation of said City of Corpus Christi, Texas, payable from revenues pledged to its payment by and in the ordinanc authorizing same, and said bond has this day been registered by me. WITNESS my hand and seal of office at Austin, Texas, this day of , 1950. the State of Texas Section 8: Definitions: The term "System" as used in this ordi- nance shall mean and include the entire municipal gas system of the City of Corpus Christi, Texas, including real estate, personal and intangible properties, whether lying within or without the boundarie of the city, together with all additions and extensions thereto and improvements and replacements thereof hereafter constructed or ac- quired. The term "net revenues" as used herein shall mean the gross revenues from the System after deduction of the reasonable expenses of operation and maintenance thereof, including all salaries, labor, materials, interest, repairs and extensions necessary to render effi cient service and every proper item of expense as provided by Arti- cle 1113 of the Revised Civil Statutes of Texas, 1925, as amended. The term "bonds" as used herein shall mean the One Million ($1,000,000.00) Dollars revenue bonds authorized by this ordinance. Section 9: pledge of Revenues: The net revenues of the System are irrevocably pledged to the payment of principal o£, and inter- est on, the entire one Million ($1,000,000.00) Dollars bonds auth prized by this ordinance. For the benefit of the original pur- chasers and for the benefit of any and all subsequent holders of said 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 stipulated: A. Rates: The city shall fix and maintain rates and collect harges for the facilities and services af1b rded by the system, hich will provide revenues sufficient at all times: (1) To pay for all operation, maintenance, depreciation, replacement and betterment charges of the system; (2) To establish and maintain the Bond Fund, including the Reserve Account; (3) To establish and maintain the Operating Reserve Fund; (4) To pay all outstanding indebtedness against the system, other than the bonds, as and when the same becomes due. Provided also that no free service of the system shall be allowed, and should the city or any of its agencies or instrumentalities make use of the services and facil- ities of the system, payment of the reasonable value thereof shall be made by the city out of the funds de -- rived from sources other than the revenues and income -of the system. B. Use of Revenues: The city will deposit as collected all revenues derived from the operation of the system into a separate account (herein called the "Gas System Fund" or the "system Fund ") which shall be kept separate and apart from all other funds of the city. The System Fund shall be administered as follows: (1) Maintenance and Operatinn: From the moneys in the System Fund, the city shall pay the expense of operation and maintenance of the System, including all salaries, labor, materials, interest and such repairs and extensions as, in the judgment of the govern- ing body of the city, are necessary to keep the plant or utility in operation and render adequate service to such city and the in I habitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the original securities. (2) Bond Fund; There is hereby established in The Corpus Christi National Bank, Corpus Christi, Texas, a special fund to be known as the "Gas Revenue Bond Fund (herein called the 'Bond Fund')" After the payment of all expenses provided for in the next preced- ing paragraph, the city shall pay from the moneys in the System Fund into the Bond Fund during each year beginning with the date of these bonds, an amount equal to one hundred (1000 per centum of the amount required to meet the interest and principal payments falling due on or before the next maturity date of the bonds. In addition to such payments, the city shall pay into the Reserve Ac- count of the Bond Fund from the System Fund in each year an addi- tional sum equal to twenty (20%) per centum of the above required principal and interest payments until such time as there is in the Reserve Account an amount equal to the maximum principal and in- terest becoming due on said bonds in any future year. The amount required to be paid into the Bond Fund and into the Reserve Ac- count in each year shall be in substantially equal monthly install- ments and shall be deposited on or before the 15th day of each month beginning with the month in which the bonds are issued. If the revenues of the System in any month, after deductions for main- tenance and operation as set out above, are insufficient to make the required payments into the Bond Fund and Reserve Account then the amount of any deficiency in such payments shall be added to the amount otherwise required to be paid into the Bond Fund and the Re- serve Account in the next month. It is the intent of this provi- sion that the sums paid into the Bond Fund and Reserve Account shal be in excess of the requirements for payment of current interest and principal on the bonds, until there has been accumulated in the Reserve Account, as a reserve for contingencies, an amount suffi- cient to service the bonds for the year in which the maximum prin- cipal acid interest payments occur. The moneys in the Bond Fund and Reserve Account shall be used solely for the purpose of paying interest and premiums on, and principal of, the bonds until all bonds have been retired. When the total in the Bond Fund is equa . to the aggregate principal amount of bonds outstanding plus all un paid coupons, matured and unmatured, thereto appertaining, and so long as such amount is maintained therein, no further payments nnei to be made into the Bond Fund or Reserve Account. The moneys pail into the Bond Fund and Reserve Account shall be deposited monthly in The Corpus Christi National Bank, Corpus Christi, Texas, and shall be continuously secured by a valid pledge to the city of din ect or fully guaranteed obligations of the United States of America having a par value or market value when less than par, exclusive o7 accrued interest, at all times at least equal to such Bond Fund an( Reserve Account. The Reserve Account, at the option of the city, may be invested in such direct or fully guaranteed obligations of the United States of America which shall be deposited in escrow under an Escrow Agreement. If such funds are so invested,-Q,_de- posited in escrow, the city shall have the right to have sold •- through the escrow agent on the open market a sufficient amount of said securities in order to meet its obligations of principal and interest in the event it does not have sufficient funds, uninveste< on hand for such purpose. Under such circumstances, the Mayor is hereby authorized, ordered and directed to give written notice to such escrow agent of the necessity to sell said securities on the open market. After such sale, the moneys resulting therefrom sha: belong to the Bond Fund and shall be available to pay such obliga- tions of principal and interest. (3) Operating Reserve Fund: There is hereby established in ti official city depository, a special fund to be ]mown as the "Gas System Operating Reserve Fund ". On or before the 15th day of each month after the required payments have been made into the Bond Fund and the Reserve Account, there shall be deposited in the Gas Systeu Operating Reserve Fhnd.cut.of the funds remaining in the System Fund such moneys as will in approximately equal monthly installment accumulate in said Operating Reserve Fund within the two (2) fiscal years next succeeding the date of this ordinance a sum at least equal to one -half (1/2) of the total operating and maintenance ex- penses for the previous fiscal year. 'It is the intent of this provision that so long as any of the bonds are outstanding there lshall always be on deposit in said Operating Reserve Fund a sum equal to not less than one -half (1/2) of the preceding year's oper- ating and maintenance cost and such payments shall be made into sai -Fund from time to time when needed to maintain this Fund at that level. The deposits into this Fund shall be subordinate to those required to be made into the Bond Fund and the Reserve Account. The Operating Reserve Fund shall be used solely for the follow ing purposes; (a) To prevent or relieve default in the payment of principal or interest on the bonds; (b) To make extensions and replacements of, and improvements to, the city's municipal gas system such as are not ordinarily con- sidered as proper items of maintenance and operation expenditures; (c) At any time when the Operating Reserve Fund contains not less than Twenty Five Thousand ($25,000.00) Dollars not committed under construction contracts, any money in excess thereof may, with in the discretion of the City Council, be used for the purpose of redeeming bonds prior to their respective maturities in accordance with the redemption provision contained in this ordinance. (4). Surplus: Any funds remaining in the System Fund after provision has been made for the payment of the reasonable cost of operating and maintaining the system and after the payments have . been made into the Bond Fund, the Reserve Account and the Operating Reserve Fund as hereinabove provided, may be used by the city,for_y the purchase of bonds at not exceeding the principal amount there- of, exclusive of accrued interest, or to redeem bonds in accordance with the option provision hereinabove set forth or such surplus may be used for any other purpose permitted by law. C. Additional Bonds: The city covenants and agrees that it will not issue any additional bonds or other obligations payable from, or secured by a pledge of, the ,revenues of the city's municl- pal gas system except that, to the extent permitted by law, the city may issue additional bonds payable from, and secured by a pled of, the net revenues of said gas system on a parity in all respects with the bonds herein authorized, but only upon the following terms and conditions: (a) said additional bonds shall not exceed such amount that the total average annual principal and interest payment on such additional bonds and on the bonds of this issue then remain ing outstanding will exceed fifty seven and one -tenth (57.1 %) per cent of the average annual net revenues of the city's municipal gas system for the five (5) fiscal years next preceding the issuance of such additional bonds, as shown by the audit of an independent auditor; and said average annual net revenues for such period shall not be less than one hundred seventy five (175%) per cent of the average annual debt service requirements on all bonds payable from the revenues of said system which will be outstanding after the is- suance of said additional bonds; (b) the city is not then in defaul as to any covenant, condition or obligation contained in this ordi- nance; (c) the city is not then in default in the payment of prin- cipal er. interest on any of the bonds herein authorized and there i no deficiency in any of the reserve funds established by this ordi- r nance; (d) the proposed additional bonds shall have been favorably voted at an election duly called by the City Council; and (e) such additional bonds are made to mature on January 15th of each year a interest is made payable on January 15th and July 15th of egch year Such additional bonds when issued shall be secured by-a pledge of the net revenues of the system on a parity with the pledge se- curing the issue of bonds herein authorized and the provisions of this ordinance relating to the use of revenues shall be applicable to such additional bonds except that the provisions herein relating to payments into the Bond Fund and Reserve Account shall, in such -' case, be extended to include the requirements for the payment of principal and interest on such additional bonds and the establish- ment of a twenty (20%) per cent reserve for such additional debt service requirements. In no event, while any part of the bonds herein authorized are outstanding, will the city mortgage, sell, lease, or otherwise dis- pose of the system or any substantial portion thereof; provided the, nothing herein shall prohibit the city from replacing worn out or obsolete properties of the system if same are replaced in such man- ner that the efficiency of the system is not diminished. These provisions shall inure to the benefit of, and be enforceable by, any holder of any of the bonds. All bonds of this issue shall be on a parity, each with the other, regardless of the time of sale and delivery thereof and no bond of this issue, or any coupon at- tached thereto, shall have a prior lien on the net revenues of the system, senior or superior, to the liens securing any other bonds o this issue or any coupons attached thereto. D. Maintenance and Operation; The city shall maintain the system in good condition and operate the same in an efficient man- ner and at a reasonable cost. So long as any of the bonds are out standing, the city agrees to maintain insurance, for the benefit of the holder or holders of the bonds, on the system of a kind and in an amount which usually would be carried by private companies en- gaged in a similar type of business. Nothing in this ordinance shall be construed as requiring the city to expend any funds which are derived from sources other than the operation of the system,but nothing herein shall be construed as preventing the city from doing E. Accounts and Periodic Statements: The city will install and maintain a complete system of records and accounts pertaining t the system in the manner provided by Article 1113, Revised Civil Statutes of Texas, 1925, as now amended. The city shall cause an audit of the records pertaining to the system to be made each year by an independent auditor and a copy of such audit together with a copy of the latest available operating and income statementszhall be furnished promptly when available to John Nuveen & Co., 135 Sout LaSalle Street, Chicago 3, Illinois, and to any holder of any of th bonds, at the written request of such holder. Such audit shall in- clude, among other things, the following: (1) A statement in detail of the income and expenditures of th system for such year; (2) A balance sheet as of the end of the year; (3) The accountant's comment regarding the manner in which the city has carried out the requirements of the bond ordinance and the accountant's recommendation, if any, for changes or improvements in the operation of the system; (4) A list of the insurance policies in force at the end of th year on properties of the system, setting out as to each policy the amount of the policy, the risk covered, the name of the insurer, an the expiration date of the policy; (5) The number of customers connected with the gas system, showing totals at the end of the year. F. Inspections: Any purchaser of twenty -five (25%) per centum In aggregate principal amount of the bonds at the time then outstan ing or any holder or holders of twenty -five (25%) per centum of sad, amount of outstanding bonds shall have the right at all reasonable times to inspect the system and all records, accounts and data of the city relating thereto. sc G. Sale of Bonds= Upon request, the city will furnish to any purchaser of twenty -five (25 %) per centum of the bonds information for the preparation of a bond circular in the customary form, signe by the proper official of the city, containing such data as such purchaser may reasonably request concerning the city and the system H. Remedies in Event of Default; In addition to all the right and remedies provided by the laws of the State of Texas, the city covenants and agrees that in the event the city (a) defaults in the payment of principal or interest on any of the bonds when due, (b) fails to make the payments required by Section g of the bond ordi- nance to be made into the Bond Fund, including the Reserve Account, or the Operating Reserve Fund, or (c) defaults in the observance or performance of any other of the covenants, conditions or obligation set forth in the bond ordinance, the following remedies shall be available; (1) The holder or holders of any of the bonds shall be entitle to a writ of mandamus issued by a court of proper jurisdiction com- pelling and requiring the City Council and other officers of the city to observe and perform any covenant, obligation or condition prescribed in the bond ordinance; (2) The holder or holders of at least fifty one (51 %) per cent of the bonds then remaining outstanding shall be entitled upon or al any time after the commencement of any proceeding instituted in casf of default, as a matter of strict right, upon the order of any court of competent jurisdiction, to the appointment of a receiver of the system, or any part thereof, and of the rents, issues and profits thereof, with power to operate the system. Any such receiver shall, under the direction and supervision of such court, have all the us- ual powers and duties of receivers in similar cases, with full power to operate the system and to apply the net revenues of the system, after payment of reasonable maintenance and operation expenses of the system, and the reasonable compensation for the services of suck receiver, and his or its necessary expenses in the operation of the system, including services of attorneys and counsel, to the purpose: and uses as provided in this ordinance; (3) No delay or omission to exercise any right or power accrulig upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therei i, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies her In provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclus ve Section 10: The city further covenants by and through this ordi- nance as follows: (a) That the revenue bonds authorized hereunder shall be speci 1 obligations of the city, and the holder thereof shall never have th right to demand payment thereof out of funds raised or to be raised by taxation, (b) That it has the lawful power to pledge the revenue support ing this issue of bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas, including power existing under Articles 1111 to 1118, both inclusive, Revised Civil Statutes of Texas, 1925, with amendments thereto; and by authority of a majority of the qualified electors of said city voting at an election held on the 17th day of December, 1949; that the bonds is- I sued hereunder shall be ratably secured under said pledge of income Yin such manner that one bond shall have no preference over any othe bond of said issue. (c) That other than for the payment of the bonds herein provid d for, the rents, revenues and income of said system are not in any manner pledged to the payment of any debt or obligation of the city, nor of said system. (d) In addition to the moneys to be paid into the Bond Fund fr m the revenues produced by said system, the city will pay into said fund the following: The balance remaining unexpended from the pro- ceeds of the sale of the bonds, after the completion of the project, and the money represented by interest accruing on said bonds from their date to the date of delivery to the purchasers thereof. Section 11: It shall be the duty of the Mayor to submit the rec- ord of said bonds and the bonds to the Attorney General of the Stat of Texas for approval and thereafter to have them registered by the Comptroller of public Accounts of the State of Texas. Section 12: The sale of said bonds to John Nuveen & Co., Chicago, Illinois, and Associates, at a price equal to the principal amount plus accrued interest thereon from the date of the bonds to the date of actual delivery, subject to the unqualified approving opin- ion as to legality by the Attorney General of Texas and market at- torneys selected by the purchasers, is hereby authorized, approved, ratified and confirmed. When said bonds have been approved by the Attorney General of Texas and registered by the Comptroller of Public Accounts of Texas, they shall be delivered to the purchasers upon receipt of the purchase price. The Mayor and City Secretary are authorized and directed to do any and all things necessary and/ or convenient to carry out the terms of said purchase. Section 13: That the great public importance and the great press- ing need for the permanent improvements to be constructed by use of the proceeds of sale of said bonds create an emergency and an imper ative public necessity requiring the suspension of rules and char- ter provisions requiring same to be considered and voted upon at three regular meetings, and such facts require that this ordinance be passed and take effect immediately as an emergency measure, and such rules and provisions are hereby suspended and this ordinance is passed and shall take effect as an emergency measure, and shall be in full force and effect immediately upon its passage. PASSED AND APPROVED thi the /)- ay of January, 1950. EST: or 0 Zia y o orpus Zr s , Texas Ci y Secre ary APPROVED AS TO form and legality prior passag C y A torn (SEAL) Corpus Christi, Texas C%�wl. mow" i Lt 1949 3a TO THE 1® ®EBS OF THE CIRY COMM Corpus Christi, Christi, Texas Gentlemen: For the reasons set forth in the emergency clause of the fore- going ordinance, a public emergenoy and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, hereby request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, a(P 60 L+9 o em ity of Corpus Christi, Texas The Charter rule was suspended by the following vote: Leslie Wasserman - Jack DeForrest Barney Cott Sydney R. Herndon George L. Lowman —owing The above ordinance was paused by the Poll vote: Leslie Wasserman Jack DeForreet /- Barney Cott Sydney E. Herndon George L. Lawman //11 a(P 60