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HomeMy WebLinkAbout03944 ORD - 11/17/1954THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI On this the 17TH day of November, 1954, the City Council of the City of Corpus Christi, Texas, convened in REGULAR meeting, with the following members of said Council present, to -wit: P. C. Callaway, Mayor, Ellroy King, J. S. Naismith, Commissioners, �Eraobc::Ha,avxx W. James Brace, T. Ray Kring, City Secretary, Russell E. McClure, City Manager, I. M. Singer, City Attorney, with the following absent: FRANK PETERSON , constituting a quorum, at which time the following among other business was transacted: Mr. RUSSELL E. MCCLURE presented for the consideration of the Council an ordinance. The ordinance was read by the City Secretary. The Mayor presented to the Council a communication in writing pertaining to said proposed ordinence'� as follows: Corpus Christi, Texas, November 17 , 1954. To THE mss of THE CITY COUNCIL Corpus Christi, Texas. Gentlemen: For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City 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. C. Callaway, Mayor City of Corpus Christi, Texas. Commissioner KING' . - made a motion that the Charter provisions prohibiting ordinances from being passed finally on the date introduced be suspended for the reasons stated in the written request of the Mayor and stated in the emergency clause of the ordinance. The motion was .seconded by Commissioner NGISMITHr — . The motion was carried by a unanimous vote by the City Council, viz: AYES: Commissioners King, Naiemith, J*#%r gpxand Brace. NAYS: None. The Mayor requested that the records show that be voted Aye. This was done. �' Commissioner KING made a motion that the ordinance be passed finally. The motion was seconded by Commissioner p,a Ac,E r The motion was carried by the following vote: AYES: Commissioners King, Naismith, Pete =o and Brace. RAYS: None. The Mayor requested that the records show that he voted Aye. This was done. The Mayor announced that the ordinance had been passed. The ordinance is as follows: ORDINANCE NO. AUTHORIZING THE ISSUANCE OF FIRST MORTGAGE WATERWORKS REVENUE BONDS IN THE AMOUNT OF $500,000.00 FOR THE FUR. POSE OF IMPROVING AND EXTENDING THE WATERWORKS SYSTEM; PLEDGING THE NET REVENUES OF THE CITY'S WATERWORKS SYSTEM; AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED OF TRUST FURTHER SUPPLEMENTING THE DEED OF TRUST SECURING CITY OF CORPUS CHRISTI FIRST MORTGAGE WATER- WORKS REVENUE REFUNDING BONDS, SERIES 1953, SUCH SUPPLE- MENTAL DEED OF TRUST PROVIDING THE SECURITY FOR THE BONDS AUTHORIZED BY THIS ORDINANCE; ORDAINING OTHER. MATIERS� V TING TO THE SUBJECT AND DECLARING AN EMERGENCY. WHEREAS, on November 5, 1953, 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 24th day of November, 1953, on propositions, in. cluding the following: PROPOSITION NO. 1 "Shall the City Council'of the City of Corpus Christi, Texas, be authorized to issue the bonds of said City in the amount of $8,000,000.00, maturing serially in such installments as may be fixed by the City Council, the maximum maturity being not more then Thirty (30) years from their date, bearing inter- est at a rate not to exceed Five (5%) per cent per annum, for .r P - the purpose of improving and extending the City's datervorka System, to be issued in accordance with and secured in the manner provided in Article 1110a and Articles 1111 -1118, both inclusive, of the Revised Civil Statutes of Texas, 1925, as amended, and as permitted by the ordinance and Indenture authorizing and securing the presently outstanding waterworks revenue bonds, each bond to be conditioned that the holder thereof shall never have the right to demand payment of said obligations out of funds raised or to be raised by taxation, secured by a pledge of the net revenues from the operation of said system, a deed of trust lien on said system and the pledge of a franchise to operate said system for a term of not exceed- ing twenty years in event of sale after default as provided in the power of sale contained in maid mortgage." and WHEREAS, 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, and by publishing such notice in the official newspaper, being a newspaper of general circulation published within the City of Corpus Christi in the issues of said paper, viz. November 7, 3.953 and November 14, 1953; 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 said election; all of which facts are further evidenced by affi- davits duly executed and on file with the City Secretary; and WHEREAS, at said election which was duly held the resident, qualified electors who own taxable property in said City, and who have duly rendered the same for taxation voted in favor of said proposition, as is evi- denced by an ordinance passed by the City Council on the 25th day of November, 1953, declaring the results of said election; and WHEREAS, heretofore in accordance with the previsions of the Constitution and laws of the State of Texas and the Charter of the City, the City Council authorized the issuance of City of Corpus Christi, Texas, First Mortgage Waterworks Revenue Refunding Bonds, Series 1953, (hereinafter called the "Series 1953 Bonds "), in the principal amount of $3,831,000.00, dated December 1, 19532 with interest payable June 1, 1954, and thereafter semi- annually on December 1 and June 1 of each year, maturing serially as more fully met forth in the ordinance authorizing the issuance of said bonds; and - 3 - ___ � - WHEREAS, for the purpose of securing the payment of the Series 1953 Bonds, and for the purpose of providing for the fixing in more de- tail the rights of the holders thereof, and of the City and of the Trustee, and for the purpose of making an effective deed of trust lien on the City's Waterworks System and the lien of said bonds on the revenues of the waterworks system, the ordinance authorizing the issuance of the Series 1953 Bonds authorized the execution of a deed of trust (hereinafter called the "Deed of Trust ") to be dated as of December 1, 1953, by and between the City and Mercantile National Bank at Dallas, as Trustee, (hereinafter called the "Trustee"): and WHEREAS, Section 14 of the ordinance authorizing the issuance of the Series 1953 Bonds contains the following provision: "14. Additional Waterworks System Revenue Bonds may be issued to be secured by a pledge of the revenues and a lien upon the properties of the Waterworks System and upon the franchise of the System of equal dignity with the pledge and liens securing the Waterworks Revenue Refunding Bonds, herein authorized, provided that such Additional Waterworks Revenue Bonds shall be issued for improvements or extensions or repairs or replacements of and to the Waterworks System or for,any one or more or all of such purposes, subject to the limitations con- tained in Article II of said Deed of Trust, hereinabove in Section 11 made a part of this ordinance." and WHEREAS, prior to the delivery of the bonds authorized by this ordinance said Deed of Trust has been duly executed by and between the City and the Trustee; and WHEREAS, all of the things required to have happened, to have been done, and to exist under Section 2.05 of Article II of the Deed of Trust as a condition precedent to the authorization and issuance of the Bonds, have happened, been done, and do exist, including the following: (1) This ordinance authorizing the Bonds prescribes the date, prescribes the bank or banks at which the principal of and interest on the Bonds are to be payable, interest rate, maturity dates, and other details necessary to identify the Bonds, the purposes for which the proceeds are to be used; (2) A further Supplement to the Deed of Trust as is authorized in this Bond Ordinance properly identifying the Bonds shall be executed and the i Bonds shall be authenticated by the Trustee before their issuance shall have been completed; and WHEREAS, as required, all of the certificates and other showings evidencing existence of facts and performance of conditions required under Section 2.05 of the Deed of Trust shall be filed prior to the authenti- cation of the Bonds by the Trustee; and WHEREAS, in order to bring the Bonds authorized by this ordinance under the terms of the Deed of Trust, and for other purposes herein- after in this ordinance specified, it is proper that a further Supplement to the Deed of Trust be executed; and WHEREAS, on March 17, 1954, the City Council of the City of Corpus Christi, Texae, passed an ordinance, as amended on March 24, 1954, direct- ing the issuance of $7,000,000.00 City of Corpus Christi First Mortgage Water- works Revenue Bonds, Series 1954, dated February 1, 1954, (hereinafter celled "Series 1954 Bonds "); and WHEREAS, in order to make possible improvements and ex- tensions to the City's Waterworks System it is deemed advisable that $500,000.00 of said authorized bonds now be issued for such purposes, reserving to the City the right to later issue the remaining $500,000.00 of bonds voted for such pur- poses; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: 1. That the findings and statements contained in the preamble to this ordinance are true and correct, 2. That for the purpose of providing funds to improve and extend the waterworks system of the City of Corpus Christi there shall be issued First Mortgage Waterworks Revenue Bonds of the City of Corpus Christi, Texas, in the amount of $500,000.00, under authority of the Constitution and laws of the State of Texas and the Charter of said City, which bonds and the interest thereon shall be payable from the revenues from said waterworksgptem 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. . 5 - 3. That said bonds shall be called "City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 2 of 1954" (hereinafter sometimes called the "Bonds "), shell be dated October 1, 1954, shall be in the denomination of One Thousand ($1,000.00) Dollars each, and shall be numbered one (1) to Five Hundred (500), both inclusive. 4. The Bonds shall be registerable as to principal at the option of the holder on the books of the Registrar upon presentation of the Bonds to such Registrar. The Trustee is hereby appointed Bond Registrar. Such registration shall not only be noted on the books of such Registrar kept for such purpose, but shall be noted by such Registrar on the Bonds so registered, and after such registration no transfer of a Bond so registered shall be valid unless made on the books of such Registrar by the registered holder or his legal repre- sentative, thereunto duly authorized, and similarly noted on the bonds. Bonds registered as to principal may be discharged from registration by being trans- ferred to bearer after which they shall be transferable by delivery, but may be again registerdd 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. 5. That the Bonds shall bear interest at the rate of Three and one - fourth (3;.%) per cent per annum, payable June 1, 1955, and semi - annually thereafter on December 1 and June 1 of each year. 6. Each of the Bonds of this issue is to be subject to redemption prior to maturity on June 1, 1964, and on any interest payment date thereafter at a price of par and accrued interest to date fixed for redemption plus a premium of 20 of the principal amount. 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 re- demption, 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 lees 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 their inverse numerical order. 7. Both principal and interest shall be payable in lawful money of the United States of America at the Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at the Chemical Bank & Trust Company, New York, New York, upon presentation and surrender of proper Bonds and coupons. 8. Such Bonds shall mature serially as follows: BOND NUMBERS MATURITY DATES AMOUNTS 1 to 40, both incl., June 1, 1966, $40,000.00 41 to 75, " " June 11 1967, 35,000.00 76 to 110, " " June 11 1968, 35,000.00 lll to 145, " June 1, 1969, 35,000.00 146 to 185, " June 1, 1970, 40,000.00 186 to 220, " June 1, 1971, 35,000.00 221 to 255, " June 1, 1972, 35,000.00 256 to 285, June 1, 1973, 30,000.00 286 to 315, " " June 1, 1974, 30,000.00 316 to 345, June 1, 1975,. 30,000.00 346 to 370, June 1, 1976, 25,000.00 371 to 395, June 1, 1977, 25,000.00 396 to 42o, " " June 1, 1978, 25,000.00 421 to 440, June 1, 1979, 20,000.00 441 to 460, " June 1, 1980, 20,000.00 461 to 475, " " June 1, 1981, 15,000.00 476 to 49o, June 1, 1982, 15,000.00 491 to Soo, " " June 1, 1983, 10,000.00 9. That each of such Bonds shall be signed by the Mayor of Corpus Christi, shall be attested by the City Secretary, shall have the corporate seal of the City impressed thereon, and shall be authenticated by the Trustee in the manner provided in the Deed of Trust after compliance with the requirements set forth in Section 2.05 thereof, and in the manner prescrib- ed in Supplement to the Deed of Trust for which provision is hereinafter made in this ordinance. Interest falling due on and prior to maturity shall be represented by appropriate interest coupons to be attached to such Bonds, 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. -7- 10. That such Bonds, the coupons to be thereto attached and • the endorsements to appear thereon, shall be substantially in the form shown in the Deed of Trust and in the further Supplement thereto, hereinafter in this ordinance authorized. 11. 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 end payment of . the Bonds and to the operation of such Waterworks System with like force and effect as though allot said provisions were otherwise then in the Deed of Trust separately set out in this ordinance. 12. To identify and bring the Bonds under the terms of the Deed of Trust, evidence the fact that the Bonds are secured by liens upon the revenues, the properties constituting the Waterworks System, and on the franchise to operate such properties in the event of sale after default, of equal dignity with the liens securing the Series 1953 Bonds and the Series 1954 Bonds, and for the purpose of fixing 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 celled 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. 8 - SUPPLEMENT TO DEED OF TRUST TBE STATE OF TEXAS COUNT' OF NUECES% THIS SUPPLEMENT TO DEED OF TRUST, (hereinafter called "SUPPLEMENT ") dated as of October 1, 1954, by sac between the City of Corpus Christi, a municipal corporation duly organized and existing under and by virtue of the laws of the State of Texas, situated in Nueces County, Texas, (hereinafter sometimes called "CITY "), acting through its Mayor and City Secretary , duly authorized by ordinance (hereinafter sometimes called the "Series 2 of 1954 BOND ORDINANCE ") passed by the City Council on November 1954, PARTY OF THE FIRST PART, and MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, . TEXAS, a national banking association duly organized and existing under and by virtue of the Banking Laws of the United States (hereinafter sometimes called "TRUSTEE "), PARTY OF THE SECOND PART: WITNESSETH: WHEREAS, heretofore as of December 1, 1953, the City and the Trustee executed an instrument of trust, hereinafter sometimes called the "Deed of Trust', primarily for the purpose of securing $3,531,000.00 in prin- cipal amount of "City of Corpus Christi First Mortgage Waterworks Revenue Re- funding Bonds, Series 1953 ", in the denomination of $1,000.00 each, numbered from One (1) to Three Thousand Eight Hundred Thirty One (3,531), both inclusive, and bearing interest at Three and one -halt (3-'$) per cent as shown in the Deed of Trust; and WHEREAS, Section 2.05 of the Deed of Trust provides for the issuance by the City of additional Bonds which when issued in accordance with such provisions shall along with the Series 1953 Bonds be secured ratably by a first lien on the properties, revenues, and franchise constituting the trust estate, as more fully described in the Deed of Trust; and WHEREAS, pursuant to an authorizing election the City Council has heretofore passed an ordinance and executed a Supplement to the Deed of Trust authorizing the issuance of $7,000,000.00 City of Corpus Christi First Mortgage Waterworks Revenue Bonds, Series 1954, dated February 1, 1954) (hereinafter called "Series 1954 Bonds "); and -I. - WHEREAS, pursuant to said authorizing election the City Council has passed an ordinance (hereinafter sometimes called "Series 2 of 1954 Bond ordinance ") of which this Supplement is a part, authorizing the issuance of additional bonds in the principal amount of $500,000.00, for the purpose of providing funds for improvements, extensions, repairs or replacements of and to the City's waterworks system (hereinafter sometimes called the "Series 2 of 1954 Bonds "); and WHEREAS, the Series 2 of 1954 Bonds authorized by said Series 2 of 1954 Bond Ordinance when issued are to be secured by said Deed of Trust in like meaner and with like effect as if issued concurrently and con - L temporaneously with the Series 1953 Bonds and the Series 1954 Bonds; and WHEREAS, said bonds are payable as to both principal and interest in lawful money of the United States of America at the Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at the Chemical Bank and Trust Company, New York, New York, and to mature serially as follows: BONDS NUMBERS MATURITY DATES AMOUNTS 1 to 40, both Incl., June 1, 1966, $ 4o,000,00 41 to 75, June 1 1967, 76 to 110, June 1, 1968, 35,0.00 111 to 145, " June 1, 1969, 35,000.00 146 to 185, " " June 1, 1970, 4o,000.ao 186 to 220, " " June 1, 1971, 35,000.00 221 to 255, " " June 1, 1972, 35,000.00 256 to 285, " June 1, 1973, 30,000.00 286 to 315, June 1, 1974, 30,000.00 316 to 345, June 1, 1975, 30,000.00 346 to 370, " " June 1, 1976, 25,000.00 371 to 395, June 1, 1977, 25,000•00 396 to 42o, " June 1, 1978, 25, X0.00 421 to 440, " " June 1, 19$9, 20,000.00 441 to 460, June 1, 1980, 20,000.00 461 to 475, " June 1, 1981, 15,x•00 476 to 49o, " " June 1, 1982, 15,000.00 491 to 500, June 1, 1983, 10,000.00 WHEREAS, the Bonds and the interest coupons and certificates 'to appertain thereto, and the form for registration of the Bonds as to principal, the Comptroller's certificate, and the Trustee's certificate, to be endorsed thereon, are to be in substantially the following forms, respectively, with appropriate insertions, omissions and variations as in this Supplement provided: - 2 - UNITED STATES OF AMERICA STATE OF TEXAS ^ COUNTY OF NUECES CITY OF CORPUS CHRISTI FIRST MORTGAGE WATERWORKS REVENUE BOND SERIES 2 OF 1954 NO. $1,000.00 THE CITY OF CORPUS CHRISTI, a lawfully created and existing municipal corporation in NUECES COUNTY, TEXAS, out of revenues hereinafter specified, and from no other source, FOR VALUE RECEIVED, hereby promises to pay to bearer, or, if this Bond be registered as to principal, to the registered holder thereof, on June 1, 19_, the principal sum of ONE THOUSAND DOLLARS ($1,000.00), and, from said revenues to pay interest thereon from the date hereof until the principal amount of this Bond shall have been paid at the rate of Three and one - fourth (3y6) per cent per annum, payable June 1, 1955, and thereafter semi - annually on December 1 and June 1. Both principal of and in- terest on this Band are 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 Chemical Bank & Trust Company, New York, New York. Interest maturing on and prior b the scheduled maturity date of this Bond is payable only upon presentation and surrender of the interest coupons hereto attached as they severally become due. THIS BOND is one of a duly authorized issue of Bonds of like date and tenor, except as to serial number and maturity, in the amount of $500,000.00, (being part of an authorized issue of $8,000,000.00), issued for the purpose of improving and extending the waterworks system of the City of Corpus Christi, Texas, as authorized at an election held in said City on November 24, 1953, and pursuant to ordinance passed by the City Council of the City of Carpus Christi, and secured by a Deed of Trust dated as of December 1, 1953 and by Supplement to said Deed of Trust, dated an of October 1, 1954, both collect- ively hereinafter sometimes referred to as the Deed of Trust, by and between the CITY OF CORPUS CHRISTI and MERCANTILE NATIONAL BANK AT DALLAS, DALLAS, TEXAS, (hereinafter referred to as the "TRUSTEE "), as Trustee, an original counterpart of such Deed of Trust being on file in the office of said Trustee in the City of - 3 - - - 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 inter- est on and the principal of the Bonds, the nature and extent of the security thereof, and a statement of the rights, duties, and obligations of the City and the Trustee and the rights of the holders of the Ronda, 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 pay- able as to principal and interest solely from the net revenues derived from the operation of the Waterworks System, including all additions, extensions and improvements thereto which may hereafter be made, hereinafter referred to as the "System ", and the holder hereof shall never have the right to demand « payment of this obligation out of any funds raised or to be raised by taxation. This issue of Bonds is further secured by a lien upon the properties compris- ing the System and, in the event of default and the sale of such properties under provisions of said Deed of Trust, by a franchise to the purchaser to operate such properties for a period of twenty years. The City of Corpus Christi hereby covenants and agrees that it will fix and maintain rates and charges for services to be rendered by the System sufficient to pay all operating, maintenance, depreciation, replacement, betterment and.interest charges, and to provide an Interest and Sinking Fund sufficient to pay the principal of and interest on the issue of Bonds of which this is one as such Principal . and interest matures, all in accordance with Article 3.113 of the Revised Civil Statutes of Texas of 1925 as amended, and to create and maintain the several funds as prescribed in the Deed of Trust. Each of the Bonds of this issue is subject to redemption prior to maturity on June 1, 1964, and on any interest payment date thereafter at a price of par and accrued interest to date fixed for redemption, plus a premium of 2J% of the principal. 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' - 4 - notice in writing prior to the date fixed for redemption is to be given to the banks of payment. If, by the date fixed for redemption, funds shell have been n .- made available sufficient to pay any bond so called for redemption and accrued interest thereon plus the premium specified, it shall not thereafter beer in- terest. In the event less than all of the bonds outstanding then eligible for r prior redemption shall be thus called the bonds then proposed to be redeemed shell be called in their inverse numerical order. THIS BOND is issued and the above mentioned Deed of Trust was made and entered into under and pursuant to the Constitution and Laws of the State of Texas. THIS BOND may be registered as to principal only in accor- dance 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 having possession hereof, howso- ever such possession may have been acquired, and that any bolder who shall have taken this bond or any of the coupons from any person for value and without notice, thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder. Neither the City of Corpus Christi nor its officials nor the paying agent hereinabove named shall be effected by any notice to the contrary. TO THE EXTENT permitted by law and the aforesaid Deed of Trust, modifications or alterations of the Deed of Trust and any Deed of Trust supplemental thereto may be made, with the consent of the City Council of the City of Corpus Christi and the holders of at least seventy -five per cent in principal amount of the Bonds then outstanding, but such modification or alteration is not permitted to affect the maturity, amount or rate of interest of any such outstanding Bonds. The Deed of Trust provides for acceleration of the maturities of all of the Bonds then outstanding in the event of a default. - 5 - .«..... ,., .,.,w.w.s .. :...,,.,N _The City reserves the right to issue additional parity -«:>-_ _ -ate• revenue bonds (including the remaining voted bonds in the amount of $500,000.00 not being issued at this time) to the extent and in the manner expressly per- mitted by said Deed of Trust and the ordinance authorizing the issuance of City of Corpus Christi First Mortgage Waterworks Revenue Refunding Bonds, Series 1953, in the amount of $3,831,000.00, and in the ordinance authorizing the Bonds of which this is one. Such additional bonds shall be payable from the same source and secured by the same revenues, deed of trust, properties, and pledged franchise, and shall be on a parity with this issue of bonds and the Series 1954 Bonds. In the event the City later exercises the right to com- bine the operations of its waterworks and sanitary sever systems reserved to it in Section 2.06 of said Deed of Trust, the said Revenue Refunding Bonds, Series 1953, the Series 1954 Bonds and the Bands of this issue, together with any additional waterworks bonds subsequently issued and any revenue bonds theretofore or thereafter issued for sanitary sewer purposes, to the extent and in the manner permitted by law at such time, will be payable from the revenues of the combined systems, including all additions, extensions and improvements thereafter made to said combined systems, and, if so authorized by law and prescribed by the City, may be further secured by a mortgage on the sanitary sewer system. IT IS REMY CERTIFIED AND RECITED that all acts and things required by the Constitution and Laws of the State of Texas, and the Charter of the City, to happen, exist and be performed precedent to and in the issuance of this Bond and the passage of said ordinance and the execution of the supplement to said Deed of Trust, have happened, exist and have been performed as so required. - THIS BOND shall not be entitled to any benefit under said Deed of Trust or the supplement thereto or become valid or obligatory for any purpose until it shall have been authenticated by the execution by the Trustee of the certificate hereon endorsed. IN WITNESS WHEREOF, the CITY OF CORPUS CHRISTI has caused this Bond to be signed by its Mayor and attested by its City Secretary, and - 6 - the corporate seal of said City to be impressed hereon, and has caused the coupons hereto attached to be executed with the facsimile Signatures of said officials all as of October 1, 1954, the date of this bond. Mayor, City of Corpus Christi, Texas, ATTEST: City Secretary, City of Corpus Christi, Texas. (CITY SEAL) (FORM OF COUPON) NO. $ On the 1st day of 19____r the City of Corpus Christi, Texas, Nueces County, Texas, will pay to bearer at the Mercantile National Bank at Dallas, Dallas, Texas, or, at the option of the holder, at Chemical Bank & Trust Company, New York, New York, the sum of ($ ) Dollars, in lawful money of the United States of America (unless the Bond to which this coupon is attached is previously celled for redemption as therein provided and provision for the redemption thereof made)* payable out of the revenues specified in the Bond to which this coupon is attached, for the interest in that amount then due on its First Mortgage Waterworks Revenue Bond, series 2 of 1954, end 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. *(This parenthetical provision should be inserted only in coupons maturing subsequent to June 1, 1964). (TRUSTEE'S CERTIFICATE) This Bond is one of the Bonds described in the within mentioned Supplement to the Dead of Trust. MERCANTILE RATIONAL BANK AT DALLAS DALLAS, THUS Trustee. BY Authorized officer. - 7 - (FORM OF COMPTROLLER'S CERTIFICATE) OFFICE OF COMPTROLLER REGISTRATION NO. STATE OF TEXAS I HERESY CERTIFY that there is on file and of record in ,,.,,,,.,,.,_my office -_,a- certificate -_of- the,Attorney, General of - the - State; of.Texae,_,.to. the -.=<*, . effect that this Bond bee been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and Laws of the State of Texas, and that it is a valid and binding special obligation of the City of Corpus Christi, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said Bond has this day been registered by me. WITNESS MY HAND and seal of office at Austin, Texas, (SEAL) Comptroller of Public Accounts of the State of Texas. (NO WRITING TO HE MADE HEREON EXCEPT BY THE BOND REGISTRAR OF THE CITY) CERTIFICATE OF REGISMATION It is hereby certified that, at the request of the holder of the within bond, I have this day registered it as to principal in the name of such holder as indicated in the registration blank below and on the books kept by me for such purpose. The principal of this bond shall be payable only to the registered holder hereof named in the below registration blank or his legal representative, and this bond shall be transferable only on the books of the Bond Registrar and by on appropriate notation in such registration blank. If the last transfer recorded on the books of the Bond Registrar and in the below registration blank shell be to bearer, the principal of this bond shall be payable to bearer and it $hell be in all respects negotiable. In'no case, shall negotiability of the coupons attached hereto be effected by any regis- tration as to principal. NAME OF REGISTERED HOLDER DATE OF REGISTRATION SIGNATURE OF REGISTRAR Trustee - 8 - AND WHBWAS, 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 Series 2 of 1954 Bond Ordinance; NOW THEREFORE, 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 ($1.00) in band 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 2 of 1954 Bonds in like manner and with like efficacy as for the use and benefit of the Series 1953 Bonds, and the Series 1954 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 all series and the interest coupons appurtenant thereto as well as for bonds and interest coupons hereafter to be issued under and secured by the Deed of Trust, within the amounts and under the conditions expressly prescribed by the Deed of Trust, without priority or distinction as to lien or otherwise of any Bond over any other Bond, or over any other bond properly issued under the Deed of Trust by - 9 - reason oS priority'ta'isasance or• negoi:iutton thereof, opt,by reason of the date or dates Gf•'meiar'ity*Che Sf, or. for any,otper xgasan whatsoever, so that each S and all of said'BOfrds'-dad bonds heretofore issued or ,hereafter to be issued as aforesaid shall have the same rights, lien and privileges under the Deed of Trust. This Supplement further witnesseth, that the City has agreed and covenanted, and does hereby agree and covenant with the Trustee and the respective holders from time to time of such Bonds and coupons, as follows: ARTICLE I FORM, AUTHENTICATION, REGISTRATJON AND ISSUANCE OF BONDS Section 1.01. The Bonds and the coupons attached theretp shall be in substantially the forms hereimbefore recited, and shall be issued in the aggregate principal amount of Five Hundred Thousand ($500,000.00) Dollars. All Bonds to be "secure-d hereby shall be signed by the Ayor of the City, `sha1L be attested by the City Secretary, shell have the corporate seal.of the City impressed thereon, and when so signed and sealed, the. Bonds shall be submitted to the Attorney General of the State of Texas for approval and to the State Comptroller for registration. After the said Bonds have been approved by the Attorney General and registered by the State Comptroller, they shall be deliver- ed to the Trustee for authentication and delivery to the City as provided in the ordinance authorizing the issuance of the Bonds and authorizing this Supplement. Section 1.02. In case 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 -aha11 bave been actually autbenticated and delivered to the purchaser thereof, such Bonds may nevertheless be authenticated and delivered as though the person or persons who signed and sealed such Bonds had not ceased to be such officer or officers of the City. Section 1.03. The coupons to be attached to the Bonds shall be signed by the facsimile signatures of the Mayor and City Secretary in the office at the time of the signing of the Bonds, and delivery of such Bonds 10 - 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 there- to attached shell 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 endors- ed thereon the duly executed certificate of the Trustee substantially in the form hereinabove set forth shall be entitled to any, lien or benefit hereunder, but such certificate of the Trustee upon any Bond shall be conclusive evidence that:, such Bond has been duly authenticated and delivered hereunder and that the holder is entitled to the benefit of the trust hereby created. Section 1.05. In case any Bond issued hereunder with the coupons appertaining shell become mutilated or be lost, stolen or destroyed prior to the payment thereof, a new Bond, including coupons, of like tenor and date and bearing the same number may, at the discretion of the City and the Trustee, to the extent permitted by low, 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 satis- factory evidence of lose, theft, or destruction of such Bond and its coupons, proof of ownership thereof, satisfactory indemnity to the Trustee and the City, and payment of the cost of preparing such bond and coupons. ARTICLE II PROOF OF COMPLIANCE WITH PREREQUISITES TO ISSUANCE OF 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 Bonds" 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. �b ARTICLE III COVENANTS AS TD 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 RANKS OF PAYMENT Section 4.01. All of the provisions of Article V of the Deed of Trust are hereby confirmed as being applicable to the Bonds. Section 4.02. In the event that the Bonds and coupons are made payable at any bank other then 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 possession 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. ARTICLE V POSSESSION OF MORTGAGED PROPERTY Section 5.01. The rights reserved to the City and the duties assumed by the City under Article VII of the Deed of Trust, so long as any of the Series 1953 Bonds are outstanding, shall remain effective likewise so long as any of the Series 1954 Bonds and any of the Series 2 of 1954 Bonds are outstanding. ARTICLE VI DEFAULTS AND REMEDIES Section 6.01. All of the provisions contained in Article VIII of the Deed of Trust (which is captioned "Defaults and Remedies ") Shall be interpreted as applicable not only to the Series 1953 Bonds, but with like effect as applicable to the Series 1954 Bonds and the Series 2 of 1954 Bonds. In determining whether the holders of minimum percentage of Bonds shall have consented to or requested any action under said Article the Bonds of all Series shall be considered. 12 ARTICLE VII GENERAL PROVISIONS Section 7.01. All of the provisions of Article XII of the Deed of Trust (captioned "General Provisions ") shall be interpreted as appli- cable not only to the Series 1953 Bonds, but with like effect as applicable to the Series 1954 Bonds and the Series 2 of 1954 Bonds. ARTICLE VIII RENDERING ALL PROVISIONS OF DEED OF TRUST APPLICABLE TO SERIES 2 OF 1954 BONDS UNLESS CLEARLY INAPPLICABLE Section 9.01. Unless the context of a given section of the Deed of Trust shows clearly that it must be inapplicable to the Series 2 of 1954 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 2 of 1954 Bonds. ARTICLE IX DEFEASARCE Section 9.01. The provisions of Article XIII of the Deed of Trust prescribing the terms and conditions under which title to the pledged Properties and rights shall revert to the City shall be interpreted to mean B1.1 of the Series 1953 Bonds, all of the Series 1954 Bonds and all of the Series 2 of 1954 Bonds. IN WITNESS WHEREOF, 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 acid Mercantile National Bank at Dallas, to evidence its acceptance of the trusts hereby created, has caused its corporate name and seal to be hereunto affixed and this Supplement to the Deed of Trust to be signed by Clarence E. Sample, its Trust Officer, and to be countersigned and said seal to be attested by its Cashier or Assistant Cashier, all as of the day and year first above written. -13- CITY OF CORPUS CHRISTI, TEXAS BY Mayor. ATTEST: City Secretary. (CITY SEAL) ATTEST: Ito Assistant ashier. (BANK SEAL) MERCANTILE RATIONAL BANK AT DALLAS DALLAS, TEXAS, TRUSTEE BY Its Trust Officer. - 14 - THE STATE OF TEXAS COUNTY OF NUECES BEFORE DH's, the undersigned authority, in and for Nuecee County, Texas, on this day personally appeared P. C. Callaway, Mayor, and T. Rey Kring, City Secretary, respectively, of the City of Corpus Christi, Texas, known to me to be the persons whose names are subscribed to the fore- going instrument and known to me to be, respectively, the Mayor and City Secretary of the City of Corpus Christi, a municipal corporation, and each acknowledged to me that he executed the same for the purposes and considera- tion therein expressed and in the capacity therein stated, as the act and deed of said City of Corpus Christi, Texas. GIVEN UNDER MY HAND AND S341 OF OFFICE, this the ^_ day of November, 1954• (SEAL) Notary Public in and for Nuecee County,- Texas. - 15 - THE STATE OF TEXAS COUNTY OF DALLAS BEFORE ME, THE UNDERSIGNED AUTHORITY, in and for Dallas County, Texas, on this day personally appeared CLARENCE E. SAMPLE, Trust Officer, end Assistant daebier, respectivhly of MMGANTILE NATIONAL BANK AT DALLAS, known to me to be the persons whose aames are sub- scribed to the foregoing instrument and known to me to bA, respectively, the Trust Officer and Assistant Cashier of MERCANTILE NATIONAL BANK AT DALLAS, a corporation, and each acknowledged to me that be executed the same for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of said MERCANTILE NATIONAL BANK AT DALLAS. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of November, 1954. (SEAL) Notary Public in and for Dallas County, Texas. 16 - TAE STATE OF TEXAS COUNTY OF SAN PATRICIO County Clerk of San Patricio County, Texas, do hereby certify that the foregoing instrument of writing dated ,,,,,,,_„„,,,,,,,won the let dsy of October, 1954, with its;-certificatee of_authenticstion_vas_ filed for record in sty office on the day of , A. D., • 1954, at _ o'clock, M., and duly recorded this day of 1954, at _ o'clock, ,. M., in the Deed of Trost Records of said County, in Volume y_, on pages I do further certify that an executed and acknowledged copy of said instrument was filed in my office on the _ day of 1954, at o'clock, M., as a chattal mortgage. WITNESS MY OFFICIAL RAND and seal of office this the day of , 1954. County Clerk, San Patricio County, Texas. (SEAL) - 17 - THE STATE OF TEXAS , COUNTY OF JIM WELLS I, , County Clerk of Jim Wells County, Texas, do hereby certify that the foregoing instrument of writing datedon the lot day of October, 1954, with its certificates of authentication, was filed for record in my office on the ___ day of , A. D., 1954, at __ o'elock, _. M., and duly recorded this _ day of 1954, at , o'clock, M., in the Dead of Trust Records of said County in Volume _, on pages I do further certify that -an executed and acknowledged copy of said instrument wea_ filed in IIl9 office on the __ day of 1954, at r o'clock, M., as a chattel mortgage. WITNESS MY OFFICIAL HAND AND SEAL OF OFFICE this the _ day of , 1954. County Ulerk, Jim Wells County, Texas, (BEAL) - 18 - THE STATE OF TEnS COUNTY OF LIVE OAK , I, , County Clerk of Live Oak County, Texas, do hereby certify that the foregoing Instrument of writing dated on the 1st day of October, 1954, with its certificates of authentication, was filed for record in my office on the __ day of _ A. D., 1954, at _- o'clock, _-_. M., and duly recorded this __ day of _ 1954, 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 1954, at o'clock, ,: M., as a chattel mortgage. WITNESS MY OFFICIAL HAND and seal of office this the _- day of , 1954. County Clerk, Live Oak County, Texas. (SEAL) - 19 - THE STATE OF TEXAS COUNTY Or NUECES County Clerk of Nueces County, Texas, do hereby certify that the foregoing instrument of writing dated on the lot day of October, 1954, with its certificates of authentication was filed for record in my office on the __ day of , A. D., 1954, at _ o'clock, _. M., and duly recorded this ' day of 1954, 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 1954, at _ o'clock, M., as a chattel mortgage. W17MSS MY OFFICIAL HAND and seal of office this the —• day of , 1954. County Clerk, Nueces County, Texas. (SEAL) -20- 13• The Supplement and all of the provisions thereof are hereby made a part of this ordinance. 14. The Series 1953 Bond Ordinance granted to the pur- chaser or purchasers of the City's Waterworks properties at a sale to be made in the event of the default of the City's obligation to pay principal of and interest on the Series 1953 Bonds, a franchise to operate said waterworks properties for a period of twenty (20) years. As is provided in the Deed of Trust such franchise protects also by a parity of lien and rights the Bonds authorized by this ordinance. 15• (a) After said Bonds shell 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. 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 the Series 1953 Bond Ordinance) of equal dignity with the pledge and liens securing the First Mortgage Waterworks Revenue Refunding Bonds, Series 1953, 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 limi- tations contained in Article II of such Deed of Trust, and by Article II of the Supplement, which Deed of Trust and Supplement are respectively made parts of the Series 1953 and the Series 2 of 1954 Bond Ordinances. • - 17. (1) A special fund is hereby created and designated City of Corpus Christi Waterworks System Construction Fund (herein sometimes called the "Construction Fund "). There shall be deposited to the credit of said Construction Fund all moneys received from the sale of the Bonds, except that any money received by the City by way of accrued interest on the Bonds shall be de- posited in the Interest and Sinking Fund (Section 5.03 of the Deed of Trust). - 9 - (2) The moneys in the Construction Fund shall be held by the City's Depository hereinafter in this Section 17 sometimes called the "Depository" in trust to be applied to the payment of the cost of the improvements and ex- tensions of and to the City's waterworks system, for which the Bonds were authorized, and pending such application in accordance with this Section shall be subject to a lien and charge in favor of the holders of the Bonds and for the further security of such holders until paid out as herein provided. (3) All disbursements from the Construction Fund to be used either to pay obligations under contracts or in connection with force account projects in making such improvements and extensions shall be subject to the provisions end restrictions of this Section 17. (4) 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 Director of Finance and approved by the City Manager stating in respect of each payment to be made: (1) The item number of the payment; (2) The name of the person, firm or corporation to whom payment is due; (3) The amount to be paid to such person, firm or corporation; (4) In reasonable detail, the purpose for which the obligation to be paid was incurred. (b) A certificate signed by the Director of Finance and approved by the City Manager attached to the requisition, certifying: (1) That obligations in the stated amounts have been incurred by the City and that each item thereof is a proper charge Against the Con- struction Fund and bas not been paid; (2) That there has not been filed with or served upon,the City notice of any lien, right to lien, or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the persons, firms or corporations named in such requisition, which has not been released or will not be re- leased simultaneously with the payment of such obligation, and (3) That such requisition contains no item repre- senting payment on account of any retained per- centages which the City is at the date of such certificate entitled to retain. - 10 - ed by the Engineer requisition, and fur urred and that ins quipment or supplie equipment or suppimprovements and that the last or W shall System the Engineer in ch pprovel send a cart ch requisition and the Construction ty to be used exclu xtensions an amount ucb requisition. ry shell be paid Manager and the the some identifying on account of so spec account in the Fund until checked City should decide payment of such its Depository, and the e special drawn on such nd certificates re a conditions of the possession of the the Engineer and (5) A certificate sign in charge of con- ,.. ,.. . •v.+,..w..... . - ., ...,.,,vim _ ., _, struction certifying his approval of said ther certifying that each such obligation was properly o ins ter as such obli- gation was incurred for work, materials, a s, that such work was actually performed, or such materials, lies were actually installed, in or about the construction of extensions of and to the City's Waterworks System. f It is further provided inal estimate for improvements and extensions of and to the hall not be paid until same has been approved in writing by arge of construction and said Engineer shall immediately upon a ificate to the City Manager and Depository of such approval. (6) Upon receipt of ee accompanying cer- tificate the Depository shall transfer fro m Fund to the credit of a special account in the name of the Ci sively for making disbursements for such improvements and a equal to the total of the amount to be paid as set forth in s Each such obligation against said special account in the Deposit by check drawn on such special account and signed by the Cit y D irector of Finance of the City of Corpus Christi, and having number as the number stated in the requisition for moneys ch obligation. Moneys deposited to the credit of such spa Depository shall be deemed to be a part of the Construction out as in this Paragraph provided. If for any reason the prior to the pay- ment of any item in a requisition to stop m, the City Manager shell give notice of such decision to the reupon the City shall return the amount of such item by ch account for the credit of the Construction Fund. c (7) All requisitions a elved by the Depository as required in this Section 17 a payment from the Construction Fund shall be retained in the Depository subject at all times to the inspection of the City, the agents and representatives thereof. - 11 - ay�xLdyFd.. .. t��q< (8) At least once in each twelve months until said Con- struction Fund shall have been expended the City shall cause an audit to be made by a certified Public Accountant covering all receipts and money then on deposit with the Depository or on deposit in the special account, and the security held therefor, and all disbursements made pursuant to requisitions filed in accordance with the provisions of this Section, and copies of the audits so made shall be furnished to the City Manager, to the Engineer, and to the Trustee. (9) When the construction of the proposed improvements and extensions has been completed, evidence of that fact shall be filed with the Trustee in the form of a certificate stating the date of such completion, signed by the City Manager, the Director of Finance, and the Engineer, 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 and extensions and to all land, property.rights, rights -of -way, franchisee, easements and other in- terests in lands necessary for their operation, free from all liens or encum- brances, except liens, encumbrances or other defects of title which do not have a materially adverse effect upon the City's right to use such properties for the purposes intended, and that there are no uncencelled mechanics', laborers', contractors', or materialnes's liens on such properties or on file in any public office where the same should be filed in order to be valid liens against any part of such properties, and that in the opinion of the signers, the time within which such liens can be filed has expired. After the construction program initially commenced shall have been completed and the fact of such completion has been duly certified as herein provided the City Council shall have the option of directing the Depository to remit to the Trustee the remainder of said Construction Fund to be deposited in the Reserve Account of the Interest and Sinking Fund established under Section 5.03 of the Deed of Trust, or transferring any balance then remain- ing to an appropriate waterworks construction account of the City. But the Trustee shall have no responsibility for any failure of the City or the Depository to perform their respective obligations to make ouch transfer or to perform any other obligations under this Section. (10) Moneys in the Construction Fund shall be secured in the same manner as provided by Section 5.04 of the Deed of Trust for moneys in the - 12 - Interest and Sinking Fund. Moneys in the special account in the Depository established pursuant to sub- section (6) hereof shall be secured in the manner prescribed by Section 5.07 of the Deed of Trust in reference to moneys to be deposited in the Depository. 18. All ordinances, resolutions and orders or parts thereof in conflict herewith are, to the extent of such conflict, hereby repealed. 19. The fact that the contemplated use of the proceeds of the waterworks revenue bonds are necessary for the orderly development and growth of the City of Corpus Christi, Texas, creates a public emergency and an imperative public necessity requiring the suspension of the Charter Rule pro- viding that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three several meetings of the City Council and the Mayor having declared that such public emergency and imperative necessity exist, and having requested that said Charter Rule be suspended and that this ordinance take effect and be in full force and effect from and after its passage, it is accordingly so ordained. PASSED AND APPROVED November , 1954. �v Mayor. ATTEST: City Secretary. (CITY ShAL) The foregoing Ordinance, Supplement to the Deed of Trust, and form of bond and coupon therein contained have been approved as to form and correctness this 17 th day of November, 1954. City Attorney. -13- CORRP�PUS "_CHRISTI, TEXAS l 7- 1954 TO THE MEMBERS OF THE CITY COUNCIL CO PU4 CHRISTI, TEXAS GENTLEMEN: FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CMARTEP. PULE OR REQUIREMENT THAT NO ORD.NANCE O- RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT 15 INTRODUCED, AND THAT SUCH OPOINAHCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS Of T4E CITY COUNCILS 1, TH.EREFORC, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OP. RECUIREMCNT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY. v, MAYOR / CITY OF CORPUS CHRISTI, TEXAS THE CHARTER PULE WAS SUSPENDED BY THE FOLLOWING VOTE: P. C. CALLAWAY ELI-Roy KING JAMES S. NAISMITH W. JAMES BRACE F. P. PETERSON, JR L'SL°A'� THE Afl OVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: P. C. CALLAWAY ELLROY KING DAME -S S. NAISMITH �T W. JAMES BRACE F. P. PETERSON, JR. _ . - . -3 9y. -