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Home My WebLink About18834 ORD - 05/16/1985THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRIST/ On this the 16th day of May, 1985, the City Council of the City of Corpus Christi, Texas convened In Special Meeting, with the following members of said Council present, to -wit Luther Jones, Dr. Jack Best, Frank Mendez, David Berlanga, Sr., Leo Guerrero, Linda Strong, Joe McComb, Bill Pruet, Mary Pat Slavik, Edward A. Martin, J. Bruce Aycock, Juan Garza, Armando Chapa, Mayor, Mayor Pro -Tem, Councilmembers, City Manager, City Attorney, Director of Finance, City Secretary, with the following absent NONE constituting a quorum, at which time the following among other business was transacted. City 1.1 -lager .Wara presented for the consideration of the Council an ordinance. The ordinance was read by the City Secretary. The Mayor presented to Inc Council a communica- tion in writing pertaining to said proposed ordinance, as follows: "=PN,0=01, T"" "TO THE CITY COUNCIL Corpus Christi, TeX. Gentlemen: "The public Importance and pressing need for the issuance of refunding bonds for refunding of the City's Waterworks Revenue Bonds to facilitate further financing for permanent Improvements creates an emergency and an impera- tive public necessity requiring the suspension of rules and Charter provisions requiring ordinances to be considered and voted upon at three regular meetings • .'erer.r.• req'est that the City Council pass the proposed ordinance authoriz- ing the issuance of bonds as an emergency measure. You will please consider this request in connection with the ordinance which Is to be introduced for passage by the City Council on the subgect. MICROFILMED "Yours very truly, /s/ Luther Jones Mayor" 18834 oft 51767 Councilmember Eau Guerrero moved that the Charter provision 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 emer- gency clause of the ordinance. The motion was seconded by Councilmember Frank mendaa . The motion was carried by an unanimous vote by the City Council, AYES: All present voted Aye. NAYS None. Councilmember Bill Fruer moved that the ordi- nance be passed finally The motion was seconded by Coun- cilmember Mary Far slay. . The motion was carried by the following vote: AYES: All present voted Aye. NAYS None. The Mayor announced that the ordinance had been passed. The ordinance is as follows: ORDINANCE NO ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF CORPUS CHRISTI, TEXAS WATERWORKS SYSTEM REVENUE REFUNDING HONDS, SERIES 1985 TBE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI WHEREAS, the City o£ Corpus Christi, Texas (the "City") has outstanding the following waterworks revenue bonds (the "Refunded Obligations"), to -wit AGGREGATE PRINCIPAL SERIES DATED AMOUNT 1975 10-10-75 $ 3,000,000 1977 1-10-77 4,180,000 1981 7-10-81 24,350,000 TOTAL OUTSTANDING $31,530,000 WHEREAS, the City has determined that it is appropriate and necessary that such Refunded Obligations be refunded; and WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to Vernon's Ann civ St of Texas, Article 717k, as amended, and other applicable laws, for the purpose of refunding the Refunded Obligations BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS Section 1 BONDS AUTHORIZED That the City's bonds (the "Series 1985 Bonds") are hereby authorized to be issued in the aggregate principal amount of $31,975,000 for the purpose o£ refunding all of the outstanding waterworks system revenue bonds of the City The Series 1985 Bonds shall be designated as the "City of Corpus Christi, Texas Waterworks System Revenue Refunding Bonds, Serres 1985" Section 2 DATE AND MATURITIES That the Series 1985 Honda shall be dated May 10, 1985, shall be In the denomina- tion of $5,000 each, or any integral multiple thereof, shall be numbered consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respectively, as set forth In the following schedule MATURITY OATS July 10 YEARS AMOUNTS YEARS AMOUNTS 1986 $ 1,170,000 1994 $ 2,060,000 1987 1,555,000 1995 2,135,000 1988 1,630,000 1996 2,105,000 1989 1,715,000 1997 2,070,000 1990 1,810,000 1998 2,035,000 1991 1,920,000 1999 2,000,000 992 1,965,000 1993 2,005,000 2002 5,800,000 The Series 1985 Bonds maturing 1n the year 2002 are hereby designated "Term Bonds", and shall be subject to retirement by operation of the Mandatory Redemption Account, as herein provided Section 3 RICHT OF PRIOR REDEMPTION The City reserves the right to redeem the Series 1985 Bonds maturing on or after July 10, 1996, in whole or In part, on July 10, 1995, or on any interest payment date thereafter, for the principal amount thereof and accrued interest thereon to the date fixed for redemption, plus a premium of 2%, such premium to be reduced 1/2 of 1% on July 10 of each year thereafter until par is reached July lo, 1999 The years of maturity of the Seises 1985 Bonds called for redemption at the option of the City prior to stated maturity shall be selected by the City The Series 1985 Bonds or Portions thereof redeemed within a maturity shall be selected by lot At least 30 days prior to the date fixed for any such prepayment or redemption a written notice of such redemption shall be given to the registered owner of each Bond or a portion thereof being called for redemption by depositing such notice In the United States marl, postage prepaid, addressed to each such registered owner at his address shown on the regi trataon books of the Paying Agent/Reglatrar. 81, the date fixed for any such prepayment or redemption due provision shall be made by the City with the Paying Agent/ - Registrar for the payment of the required prepayment or redemption price for the Series 1985 Bonds or the portions thereof which are to be so prepaid or redeemed, plus accrued Interest thereon to the date fixed for prepayment or redemp- tion If such written notice of prepayment or redemption is given, and if due prcalision for such payment is made, all as provided above, the Series 1985 Bonds, or the portions thereof which are to be so prepaid or redeemed, thereby automatically shall be prepaid or redeemed proor to their scheduled maturities, and shall not bear Interest after the date fixed for their prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued Interest to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds provided for such payment The Paying Agent/Registrar shall record in the Registration Books all such prepayments or redemptions of principal of the Serhes 1985 Bonds or any portion thereof If a portion 00 110 Serhes 1985 Bond shall be redeemed a substitute Series 1985 Bond or Series 1985 Bonds having the same maturity date, bearing Interest at the same rate, in any denomination or denominations in any Integral multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancella- tion, at the expense of the City, all as provided in thhs Ordinance Section 4 INTEREST That the Series 1985 Bonds scheduled to mature during the years, respectively, set forth below shall bear Interest at the following rates per Bonds maturing In the year 1986, 5.50% Bonds maturing 2n the year 1987, 6 00% Bonds maturing in the year 1988, 6 50% Bonds maturing in the year 1989, 7 00% Bonds maturing in the year 1990, 7 25% Bonds maturIng in the year 1991, 7 50% Bonds maturing in the year 1992, 7 75% Bonds maturing in the year 1993, 8 00% Bonds maturing in the year 1994, 8 25% Bonds maturing in the year 1995, 8 50% Bonds maturing in the year 1996, 8 70% 3 Bondsmaturang In the year 1997, 8 60% Bonds maturang in the year 1998, 5 90% Bonds maturang an the year 1999, 9 00% Bondsmaturingin the year 2002, 9 25% Said interest shall be payable to the registered owner of any such Seraes 1985 Bond in the manner provaded and on the dates stated an the FORM OF BOND set forth an than Ordi- nance SectIon 5. (a) The City shall keep or cause to be kept at the principal corporate trust office of MBank Corpus Christ, N A , Corpus Chrasti, Texas, or such other bank, trust company, financial instatutaon. or other agency named an accordance wath the provisions of (g) of this SectIon hereof (the "Payang Agent/Registrar") books or records of the registration and transfer of the Series 1985 Bonds (the "RegistratIon Books.), and the Caty hereby appoints the Payang Agent/Regastrar as its registrar and transfer agent to keep such books or records and make such tranSfean and regastratIons under such reasonable regulations as the City and Bayang Agent/Registrar may prescrabe; and the Payang Agent/Registrar shall make such tannsfers and regastrations as herein provIded It shall be the duty of the Payang Agent/Registrar to elate.) from the regastered owner and record In the Registantion Books the address of such reels- tered owner of each bond to whach payments wIth respect to the Sera. 1985 Bonds shall be mailed, as here= provided The Caty or its designee shall have the right to Inspect the RegistratIon Books durang regular business hours of the Paying Agent/Reg1strar, but otherwise the Paying Agent/ - Registrar shall keep the RegastratIon Books confldentlal and, unless otherwase required by law, shall not perm, the), inspection by any other entity Registration of each Series 1985 Bend may be transferred an the Registrat1on Books only upon presentation and surrender of such bond to the Payang Agent/Reg1strar for transfer of regastration and cancellation, together with proper wrItten instruments of assignment, In form and with guarantee of signatures 4 satisfactory to the Paying Agent/Registrar, evidencing the assignment of the bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and the right of such assignee or assignees to have the bond or any such portion thereof registered in the name of such assignee or assignees. Upon the assignment and transfer of any Series 1985 Bond or any portion thereof, a new substitute bond or bonds shall be issued in conversion and exchange therefor in the mannerherelnprovided (b) The entity in whose name any Series 1985 Bond shall be registered in the Registration Books at any time shall be treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such bond shall be overdue, and the City and the Paying Agent/Registrar shall not be affected by any notice to the contrary, and payment of, or on account of, the principal of, Premium, if any, and interest on any such bond shall be made only to such registered owner All such payments shall be valid and effectual to satisfy and discharge the liability upon such bondto the extent of the sumor sums so paid (c) The city hereby fumtller appoints the paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Series 1985 Bonds, and to act as its agent to convert and exchange or replace Series 1985 Bond, all as provided in this Ordinance The Paying Agent/Registrar shall keep proper records of all payments made by tile City and the Paying Agent/Registrar with respect to the Series 1985 Bonds, and of all conversions and ex- changes of such bonds, and all replacements of such bonds, asprovided in this Ordinance (d) Each Series 1985 Bond may be converted Into and exchanged for fully registered bonds in the manner set forth herein Each bond issued and delivered pursuant to this Ordinance, to the extent of the unpaid or unredeemed prin- cipal balance or principal amount thereof, may, upon sur- render of such bond at the principal corOosate trust urncu 5 of the Paying °ent~egis_~together with .written request therefor duly executed ~ the registered own~~ the assignee or assignees thereof, or its or their duly authorised attorneys .. representatives, with guarantee ., signatures satisfactory ~ "~ ~,ng Agent/Registrar, ~ the option .' the registered owner .. such assignee .. ~~~~., .s appropriate, be converted into and exchanged for fully registered bonds, without interest coupon, in the form prescribed ~the ,ORM OF BOND set forth in this Ordinance, ~ the denomination of°,~~,~any integral multiple of =,= '~~~, to the requirement here...t~ stated that each substitute Bond shall have . single stated maturity da~`, . requested ~ writing ~ such registered owner ^. such assignee ~ assignees, ^.~ aggregate princi- pal amount equal °the unpaid ~ unredeemed principal balance ^. principal amount ,' any bond ~ bonds .,sur- rendered, ~rend~ , and payable ~ the approPriate .egeste~own., assignee, ., assignees, .. the case may ^. .,^~.``~,' any ~~~"~Bend shall beredeemed prior toits sched- uled ma~~~^~,..~^~he....,^~°~^~~~~~bo~. having the sat. maturity ^=, bearing interest at the same ~~, ^. the denomination ~,denominations .' ~, .~.~.^ multiple ^ ",~~ ~ "~ request ofthe registered owner, and ^.~ aggregate principal amount equal ° the unredeemed portion thereof, will beissued tothe registered owner upon surrender thereof for cancellation. " any Series `,,^Bond ~. portion thereof ~ assigned and transferred ~~~~~^ ^^`^ ^~^ ^^~^^ `^ ~'^`~~ °~~~' ~~`' ^~ °~ ^~~ principal maturity date and bear interest ~ the same rate .~ the bond for which ^`^. being exchanged Each substi- tute °nd shall bear ^ letter and/or number ~distinguish ^` from each other bond The Paying Ag~~~,^~~r shall convert and exchange ~ replace Series `= Bonds ~pro- vided herein, and each fully registered bond delivered in conversion ° and exchange for ~ replacement ^ any bond .. portion thereof as permitted or required by any provision of 6 this Ordinance shall constitute one of the Series 1985 Bonds Lor all purposes of this Ordinance, and may again be con- verted and exchanged or replaced It is specifically provided, however, that any bond delivered In conversion of and exchange for or replacement of another bond prior to the f.rst scheduled Interest payment date on the Series 1985 Bonds (as stated on the face thereof) shall be dated the same date as such bond, but each substitute bond so deliv- ered on or after such first scheduled Interest payment date shall be dated as of the interest payment date preceding the date on which such substitute bond is delivered, unless such bond .s delivered on an Interest payment date, In which case it shall be dated as of such date of delivery, provided, however, that if at the time of delivery of any substitute bond the interest on the bond for which it is being ex- changed has not been paid, then such bond shall be dated as of the date to which such interest has been paid in full On each substitute bond Issued .n conversion of and exchange for or replacement of any bond or bonds Issued under this Ordinance there shall be printed thereon a Paying Agent/Reg- istrar's Authentication Certificate, in the form hereinafter set forth An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such bond, date such bond in the manner set forth above, and manually sign and date such Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so executed The Paying Agent/Registrar promptly shall cancel all Series 1985 Bon as surrendered for conversion and exchange or replacement No additional ordinances, orders, or resolutions need be passed or adopted by the city Council or any other body or person so as to accomplish the fore- going conversion and exchange or replacement of any Series Iges Bond or portion thereof, and the paying Agent/Aegistrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein, and said Bonds shall be of type composition printed on paper 7 with lithographed or steel engraved borders of customary weight and strength Pursuant to Article 717k -6,V A T C S , and particularly Section 6 thereof, the duty of conversion and exchange or replacement of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the above Paying Agent/Registrar's Authen- tication Certificate, the converted and exchanged or re- placed Bond shall be valid, Incontestable, and enforceable in the same manner and with the same effect as the Series 1965 Bonds which originally were delivered pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts Neither the 0060 600 the Paying Agent/Registrar shall be required (1) to issue, transfer, or exchange any Bond during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of Bonds and ending at the close of business on the day of such mai1ing, or (2) to transfer or exchange any Bond so selected for redemption in whole when such redemption is scheduled to occur within 30 calendar days (e) All Series 1985 Bonds issued in conversion and exchange or replacement of any other Bond or portion there- of, (1) shall be Issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable 0010 60 the registered owners thereof, (1).) may be redeemed prior to their scheduled maturities, (ill) may be transferred and assigned, (iv) may be converted and exchanged for other Series 1985 Bonds, (v) shall have the characteristics, (vi) shall be signed 303 330)30, and (vii) the principal of and interest on the Series 1985 Bonds shall be payable, all as provided, and In the manner re- quired or indicated, in the FORM OF BOND set forth in this Ordinance (f) The City shal/ pay the Paying AgentiRegistrer's reasonable and customary fees and charges for making trans- fers of Bonds, but the registered owner of any Bond requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto The registered owner of any series 1955 Bond requesting any conversion and exchange shall pay the Paying Agent/Registrar's reasonable and standard or customary fees and charges fOr converting and exchanging anY such huh, 8r portion thereof, together with any taxes or governmental charges required to be paid with respect thereto, all as a condition precedent to the eiercise of such privilege of conversion and exchange, except, however, that in the case of the conversion and exchange of an assigned and trans- ferred bond or bonds or any portion or portions thereof in any integral multiple of $5,000, and in the case of the conversion and exchange of a portion the unredeemed portion of a Series 1985 Bond which has been redeemed in part prior to maturity, as provided in this Ordinance, such fees and charges will be paid by the City In addition, the City hereby covenants with the registered owners of the Bonds that it will (1) pay the reasonable and standard or custom- ary fees and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of and Interest on the Series 1965 Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer or registration of Series 1985 Bonds solely to the extent above provided, and with respect to the conversion and exchange of Bonds solely to the extent aboveprovided (g) The City covenants with the registered owners of the Series 1985 Bonds that at all times while the Bonds are outstanding -61.e city will provide a competent and legally qualified bank or trust company, to act as and perform the services of Paying Agent/Registrar for the Series 1985 Bonds under this ordinance, and that the Paying Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 60 days written notice to the Paying 9 Agen"Regy~rar In the event that the entity ^ any tame actIng~Payang Agent/Registrar (or Its successor ~ mer~. acq~~=~, or other method) should ~~~ ~ ^°~~^.. cease `, act ^. such, the ~tycovenants that promptly ~ wall app~nt^competent ~~.~`~qua.~. national .. state banking ^..``~~^,.°..^ shall °.^ corporation ~garu~and doing busane..~der the laws ° the "~,edStates ^' America ..,' any state, ~~.^... under such laws ° ~~~~ trust powers, ~w~^° ~per' ~.^^...~~^.^~~~'~°~`^.st=Autho~ty,~^ whose .ual^fIc~ons substantially are .rmi`~ ~ the previous Payang Agent/Registrar to ~ as Payang ^~~~~.,~. ~de. ~~ ,rd^.~... Up~ any ~~~ in the Paying Agen~Rega~~, the ~evlous 9aYasg Agent/Registrar promptly shall transfer and delayer the ~~~~~~ Books (or .copy thereo'`,along ~° all other ~'.`~~ ..~^ and ~.,~~ .~`~^~ ~ °~ .~ds, ~ ~ ~~~~ng Agent/Re~strar°~gnated and .ppo~ted~the City Upon any change ^. the ,~^ng^~nt/Re,~`~~,the city promptly will cause . written notice thereof ~~sent by the new PayIngAgent/Registrar toeach registered ~~ of the Seraes 1985 Bonds, by United States mail, postage prepaid, which notice also shall give the address .. the new ,aya`Agent/~~str~ By accepting the ~.itI~and ,..",..ng^.such, each ,^,ngAgent/Registrar shall be deemed ~ ~~ agreed ~ the pro°.~~of°..Ordinance, and .,.~`^,^^ copy .' this ~~`~~. shall ^. delivered `. ~ach~~ng Agen~Rega=~ ^^^`^~^ The form ^^ all Series `,,` Bonds, Includ- ing the form of the Paying Agent/Regi=rar'.Ce=^=., the ,^~ of Assignment, and the form of the Comptroller's ~~~~~~~~`^.~.~ accompany the Series "°Bonds ~ the ^~`^^.de`~..,thereof, shall be, respectively, ~^sta~^~.follows, with such app~~~.~~~~~, ~~.~~~,..^~^.^~.. are permitted ^~.~~~.° this Ordinance 10 NO FORM OF HOND• UNITED STATES OF AMERICA STATE OF TEXAS COUNTY.. NUECES CITYOF CORPUS CHRISTI, TEXAS WATERWORKS SYSTEM REVENUE REFUNDING BOND SERIES 1985 MATURITYDATE INTERESTRATE ORIGINAL ISSUEDATE CUsIP May10, 1965 ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF CORPUS CHRISTI, IN NUECES COUNTY, TEXAS, hereby promises to pay to , or to the regIstered as- signee hereof (esther being hereinafter called the .regss- tered owner.) the prineiPal amount of and to pay Interest thereon, from the date of this Bond hereinafter stated, to the date of its scheduled matursty or the date of Its redemptlon prsor to scheduled maturity, at the rate of interest per annum specified above, with said Interest being payable on January 10, 1986, and semiannually on each July 10 and January 10 thereafter, except that if the Pays, Agent/Registrar's Authentication Certificate appearing on the face of thle Bond Is dated later than January 10, 1966, such Interest is payable semiannually on each July 10 and January 10 following suchdate THE TERMS AND PROVISIONS of this Bond are continued on the reverse side hereof and shall for all purposes have the same effect as though fully set forthat thseplace. *THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States 01 0000100, without exchange or collection charges The principal of this Bond shall be paid to the registered owner hereof upon presenta- tion and surrender of this Bond at maturity or upon the date fixed for Its redemption prsor to Matursty, at the principal corporate trust office of MBank Corpus Christi, N A , Corpus Christi, Texas, which Is the .Paying Agent/Regsstrar. for this Bond The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner 11 hereof as shown by the Registration Books kept by the Paying Agent/Registrar at the close of business on the 25th day of the month next preceding such interest payment date by check drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided, and such check shall be sent by the Paying Agent/ - Registrar by United States mail, postage prepaid, on each such interest payment date, to the registered owner hereof at its address as it appears on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described The Issuer covenants with the registered owner of this Bond that no later than each principal payment date and interest payment date for this Bond 1t will make available to the Paying Agent/Registrar the amounts required to provide for the payment, in immediately available funds, of all princi- pal of and interest °utile Bonds, whendue *IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking Institutions in the city where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the original date paymentwas due *THIS BOND is one of a series of bonds of like tenor and effect except as to number, principal amount, Interest rate, maturity and right of prior redemption, aggregating Thirty One Million Nine Hundred Seventy Five Thousand Dollars (S31,975,000) (herein sometimes called the "Bonds.), Issued for the purpose of refunding all of the outstanding waterworks system revenue bonds of the City The Bonds are ',suable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of 12 $5,000. *THE OUTSTANDING BONDS of this Series maturing on July 10, 1996 may be redeemed prior to their scheduled maturi- ties, at the option of said City, in whole, or In part, on July 10, 1995, or on any Interest payment date thereafter, for the principal amount thereof and accrued Interest thereon to the date fixed for redemption, plus a premium of 2%, such premium to be reduced 1/2 of 1% on July 10 of each year thereafter until par is reached July 10, 1.9 The years of maturity of the Series lg. Bonds called for such redemption shall be selected by the City. The Series 1965 Bonds or portions thereof redeemed within a maturity shall be selectedby lot *THE BONDS OF THIS SERIES maturing July 10, 2002, are sub,ect to mandatory redemption, and shall be redeemed in part by lot prior to maturity annually on July 10 In the years 2000 and 2001 and at final maturity in 2002 with funds in the Mandatory Redemption Account of the Interest and Sinking Fund established an the ordinance authorizing the said series of bonds, at par and accrued interest to date of redemption *AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such redemption shall be given to the registered owner of each Sond or a portion thereof being called for redemption by depositing such notice in the United States mail, postage prepaid, addressed to each suCh registered owner at his address shown on the Registration Books of the Paying Agent/Registrar BP the date fixed for any such prepayment cr redemption due provision shall be made by the City with the Paying Agent/- Registrar for the payment of the required prepayment or redemption price for this Bond or the portion hereof which Is to be so prepaid or redeemed, plus accrued Interest thereon to the date fixed for prepayment or redemption If such written notice of prepayment or redemption 26 giVen, and if due provision for such payment is made, all as 13 ~~"ed above, this Bond, ~ the portion thereof which is to be so prepaid ~ redeemed, thereby automatically shall ^ prepaid _ redeemed prior ° its scheduled due date, and shall ~, ~.^. ^~~~~ ^'~. °~ ^~. fixed ',.^~pre- payment ~~de~~~, and shall not beregarded ~being outstanding except for the right ~ the registered owner ~ receive the prepayment ~ redemption price plus accrued Interest ~ the date fixed for prepayment .~ redemption from the Paying Agent/Registrar out ~the funds provided for such payment The .^~~ ^,~t/R~~~~. ^.`` ~.,~ in the Registration Books all such prepayments ~redemptions of ,~~~^^ of this Bond or any ,.=^~ he~., ., . portion ^ any Bond shall ^ redeemed ^ substitute Bond or Bonds having the same maturity date, bearing interest ~the same rate, in any denomination ordenominations ~any integral multiple of '^= ~ the written request ^'the registered own~ and ~ aggregate principal amount equal to the unredeemed portion thereof, will beissued ~the registered owner upon the surrender thereof for ~ncel^ ,~., at the expense of the ..~~, ^`` ~ provided ~the ordinance authorizing the Bonds (the "Ord~ance") 4AS PROVIDED IN THE ORDINANCE, this Bond, or any ~~~~~^,,.~,.~~~^, may, ~ the request ~the registered own~ or the assignee or assignees her~, be assigned, transferred, and exchanged for . like aggregate principal amount ~^ fully registered Bonds, without ~~~~ .~°~.. payable `. the appropriate registered owner, or its duly designated assignee ~assignees, ~ °~ ~~ may be, °~., ~ .~~ maturity ^~., ~. bearing ~ ~.~^~ interest =the ~me ~°, ~ any denomination ~denomi- nations ^. any integral multiple .'^^,°°^. requested ^. writing ~ °~ appropriate registered owner, assignee, ~ assignees, .. the case may be, upon surrender .' this Bond to the Paying Agent/Registrar for cancellation, all in accordance with °~ form ~~ procedures ... forth `. °~ Ordinance Among other requirements for such assignment and 14 transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with Proper' instruncnt. of assignment, In form and with guarantee of signatures satis- factory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of 25,000 principal amount to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered The form of Assignment printed or endorsed on this Bond may be executed by the registered owner to evi- dence the assignment hereof, but such method Is not exclus- ive, and other instruments of assignment satisfactory to the Raying Agent/Registrar may be used to evidence the assign- ment of this Bond or any portion or portions hereof from time to time by the registered owner The one requesting such exchange without transfer shall pay the Paying Agent/ - Registrar's reasonable standard or customary fees and charges for exchanging any Bond or portion thereof The foregoing notwithstanding, in the case of the exchange of a portion of a Bond which has been redeemed prior to maturity, as provided herein, and In the case of the exchange in connection with an assignment and transfer of a Bond or Bonds or any portion or portions thereof, such fees and charges of the Paying Agent/Registrar will be paid by the Issuer In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment. transfer, or exchange as a condition precedent to the exercise of such privilege In any circumstance, neither the Issuer nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of Bonds and ending at the close of business on the day of such mailing, or (2) to transfer or exchange any Bonds so selected for redemption 15 t when such redemption is scheduled to occur within SO calen- dardays *IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Ordinance that at promptly will appoint a competent and legally qualified substitute therefor, whose qualifications substantially are similar to the previous Payang Agent/Registrar it is replac- ing, and promptly wall cause written notice thereof to be mailed to the registered owners of the Bonds. *BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Ordanance is duly recorded and available for inspection in the official minutes and records of the Issuer, and agrees that the terms and provisions of this Bond and the Ordinance constitute a contract between each registered owner hereof and the Issuer *IT IS HEREBY certified and covenanted that this Bond has been duly and valadly authorized, issued and delivered, that all acts, conditions and things required or proper to be performed, exist and be done precedent to or an the authorazation, Issuance and delivery of this Bond have been performed, exIsted and been done in accordance with law, that thas Bond is a specaal obligation, and that the prin- cipal of and Interest on this Bond are payable from, and secured by a first lien on and pledge of, the Pledged Revenues, as defined in the Ordinance authorizing this Series of Bonds, and which incltde the Net Revenues of Bald City's Waterworks 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, or from any source whatsoever other than the aforesaldPledgedRevenues 16 *SAID CITY has reserved the right, sub)ect to the restrictions stated, and adopted by reference, in the Ordinance authorizing this Series of Bonds, to issue addi- tional parity revenue bonds which also may be made payable from, and secured by a first lren on and pledge of, the aforesaid Pledged *IN ADDITION TO ALL OTHER RIGHTS, the holders of this serres of Bonds shall be subrogated to all pertinent and necessary rIghts of the holders of the obligations being refundedthereby IN WITNESS WHEREOF, thrs Bond has been signed with the Imprinted or lithographed facsimile signature of the Mayor of said City 'Ind countersigned by the imprinted or litho- graphed facsimile signature of the City Secretary, and the official seal of said City has been duly affixed to, printed, lithographed or impressed on this Bend. xxxxxx xrxxxx City Secretary, City of Mayor, City of Corpus Christi, CorpusChristi, Texas Texas (SEAL) FORM OF RAYING AGENT/REGISTRAR' S AUTHENTIcATIoN CERTIFICATE PAYINCAGENT/RECISTRAR.SAUTHENTICATIONCERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the OsMinance described on the face of this Bond, and that this Bond has been iseued in conver- sion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which original], was approved by the Attorney General of the State of TexaS and registered by the Comptroller of Public Accounts of the State of Texas Dated Paying Agent/Regi strar BY Authorized Representative 0000 00 ASSIGNMENT ASSIGNMENT Forvalue received, the undersignedhereby sells, assigns and transfers unto 17 / (Please Insert Social Security or Taxpayer Identification Nunilser of Transferee) (P1&se,. or typewrite name an a ress, Including zip code of Transferee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to register the transfer of the within Bond on books kept for registra- tion thereof, with full pOlfer of substitution in the premises Dated Signature Guaranteed NOTICE Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company NOTICE The signature above must correspondwiththe name of the Registered Owner as it appears upon the front of tills Bond in every part,. cular, without alterationor enlargement or anychange whatsoever (FORM CECOMPTROLLER'S CERTIFICATEATTACHEDTO THE BONDS UPON INITIALDELIVERYTHEREOF) OFFICECFCOMFTROLLER • REGISTER NO STATEOFTEXAS I hereby certify that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this Bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding special obligation of the City of corpus Christi, Texas, paYable In the manner provided 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, Tekas Comptroller of Public Accounts of (SEAL) the State of TeXaS NOTE TO PRINTER *Bs tobe on reverse side ofbond P*11 not to be onbond 18 Section 7. DEFINITIONS That, as used in this Ordi- nance, the following terms shall have the meanings set forth below, unless the text hereof specifically Indicates other- wise (a) The term "Additional Bonds.. shall mean the addi- tional parity revenue bonds which the City reserves the right to Issue in the future, as provided in this Ordinance (b) The term "Amortisation Installment'', with respect to any Term Bends of any series of Additional Bonds, shall mean the amount of money which is required to be deposited Into the Mandatory Redemption Account for retirement of such Term Bonds (whether at maturity or by mandatory redemption and including redemptIon premiur, if any) provided that the total Amortization Installments for such Term Bonds shall be sufficient to provide for retirement of the aggregate principal amount of such Term Bonds (c) The term "City" shall mean the City of corpus Christi, inNueces County, Texas (d) The term "Gross Revenues of the City's Waterworks System'. and "Cross Revenues" shall mean all revenues, income, and receipts of every nature derived or received by the City fros the operation and ownership of the System, Including the Interest income from the investment or deposit of money in any Fund created by this ordinance, or main- tained by the City in connectionwith the System (e) The term "Mandatory Redemption Account" ellen mean that account within the Interest and Sinking Fund described in Section 15(b) of this Ordinance. (f) The term "Net Revenues of the city's Waterworks Systee, and "Net Revenues" shall mean all Cross Revenues after deducting and paying the current expenses of operation and maintenance of the System (the "Current Expenses"), as required by Vernon's Annotated Texas Civil Statutes, Article 1113, including all salaries, labor, materials, repairs and extensions necessary to render efficient service, provided, 19 however, that only such repairs and extensions as In the judgment of the City Council, reasonably and fairly exer- cised and evidenced by the passage of the appropriate ordinance, are necessary to keep the System in operation and render adequate service to said City and the inhabitants thereof, , or such as might be necessary to meet some physical accident or condition orhich would otherwise impair the Series 1985 Bonds or Additional Bonds, shall be deducted in determining "Net Revenues'. Payments made by the City for water supply which under the law constitute operation and maintenance expenses shall be considered herein as expenses incurred in the operation and maintenance of the System Depreciation shall never be considered as all expense of operation and maintenance (g) The term "Baying Agent/Registrar'. shall mean the financial institution specified in Section 5(a) hereof , or its herein permitted successors and assigns, (h) The term "Pledged Revenues.' shall mean (1) the Net Revenues, plus (2) any additional revenues, income, re- ceipts, or other resources, including, without lhoitation, any grants, donations, or Income received or to be received front the United states Government, or any other public or private source, whether pursuant to an agreement or otherwise, which hereafter may be ,)ledged to the payment of the Series 1985 Bonds or Additional Bonds (I) The term "Refunded Obligations" shall mean the outstanding waterworks system revenue bonds refunded with the proceeds from the sale of the Series 1985 Bonds and other available cash (5) The term "Series 1985 Bonds" shall mean the City of Corpus Christ)., Texas Waterworks System Revenue Refunding Bonds, Series 1985, authorised loy thos Ordinance (lc) The term "Subordinated Obligations" shall mean any bonds, notes, or other obligations Issued pursuant to law 20 payable in whole or In part from the Pledged Revenues and subordinate to the Serves 1985 Bonds andAdditional Bonds (1) The term "System. shall mean and Include the City's existing waterworks system, together with all future extensions, improvements, enlargements, and additions thereto, and all replacements thereof, provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall not Include any water facilities which are declared by the City not to be a part of the System and which are acquired or constructed by the City with the proceeds from the Issuance of .Special Facilities Bonds., which are hereby defined as being special revenue obligations of the City which are not secured by or payable from the Pledged Revenues as defined herein, but which are secured by and payable solely from special contract revenues or payments received from any other legal entity in connection with such facilities, and such revenues or payments shall not be considered as or constitute Gross Revenues of the System, unless and to the extent otherwise provided in the ordinance or ordinances authorizing the Issuance of such .Special Facilities Bonds. (m) The term .Term Bonds. means those Series 1985 Bonds so designated in this ordinance and those Additional Bonds so designated in the ordinance or ordinances authoriz- ing such bonds, which shall be subject to retirement by operation of the Mandatory Redemption Account (n) The term "year. snarl mean the regular fiscal year used by the City In connection with the operation of the System, which may be any twelve consecutive months period establishedby the City Section 8. PLEDGE That the Series 1955 Bonds and any Additional Bonds are and shall be secured by and payable from a first lien on and pledge of the Pledged Revenues, and the Pledged Revenues are further pledged to the establish- ment and maintenance of the Interest and Sinking Fund and 21 the Reserve Fund as hereinafter provided The Series 1985 Bonds and any Addrtronal Bonds are and will be secured by and payable only from the Pledged Revenues, and are not secured by or payable from a mortgage or deed of trust on any properties, whether real, Personal, .r mIxed. .0..t.- tuting the System Section 9 REVENUE FUND. That there is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a special fund to be entrtled the .Crty of Corpus Chrrsti, Texas Waterworks System Revenue Fund" (hereinafter called the .Revenue Fund") All Gross Revenues shall be credited to the Revenue Fund Immedrately upon recerpt All current expenses of operution and main- tenance of the System shall be paid from such Gross Revenues as a first charge against same Section 10 INTEREST AND SINKING FUND (a) That for the sole purpose of paying the principal of and interest on all Series 19125 Bonds and any Additional Bonds, as the same come due, there Is hereby created and there shall be estab- lished and maintained on the books of the City a separate fund to be entitled the "Crty of Corpus Christi, Texas Waterworks System Revenue Bonds Interest and SInking Fund. (herernafter called the "Interest and Sinking Fund"). Conles In sard Fund shall be marntarned at an offrcral depositorybank of the Crty (b) That within the Interest and Sinking Fund there is hereby established the Mandatory Redemption Account, into which account shall be credited the Amortrzatron Install- ments which shall be used foi the payment of the principal of Term Bonds as the same shall come due, whether by matur- ity theruof or by redemptron, through the operatron of the MandatoryRedemptromAccount ashereinprovIded Section 11 RESERVE FUND That there Is hereby created and there shall be establIshed and maintained on the books of the City a separate fund to be entitled the "City 22 of Corpus Chrosti, Texas Waterworks System Revenue Bonds Reserve Fund" (hereinafter called the "Reserve Fund") Monies in sold Fund shall be used solely for the purpose of retarang the last of any Series 1985 Bonds or Additional Bonds as they become due or paying principal of and interest on any Series 1805 Bonds or Addational Bonds when and to the extent the amounts an the Interest and Sankang Fund are insufficient for such purpose Monies in said Fund shall be Initially placed in the Texas Commerce Bank-Corpus Christi, N A., Corpus Chrasti, Texas and shall be maintained at an official deposatorybank of the Caty Section 12 SUBORDINATED OBLIGATIONS FUND That there as hereby created and there shall be established and main- tained on the books of the City a separate fund to be entitled the "City of Corpus Chsasti, Texas Waterworks System Revenue Bonds Subordinated Oblogations Fund (hereln defined as the "Subordinated Oblagations Fund.) Monies an said Fund shall be maantained at an offacsal depository of the Caty. Monies in the Subordanated ObligatIons Fund shall be wathdrawn to pay the prancapal of and interest on the Subordinated elongations and shall be paid over to the Poyang Agent/Registrar to make the payments required an Section 15 and Section 16 of this ordanance, in the event that monies are not available in the Revenue Fund for such PorPosee Section 13 INVESTMENTS That money in any Fund estab- lished pursuant to this Ordmance may, at the optson of the City, be (A) placed in tame deposats or ceMifacates of deposit which (to the extent not insured by the Federal Deposit Insurance Corporation) aro secured by obligations of the type described in (19) herembelow, or (B) Invested, Including Investments held in book-entry form, in (1) [Inept obligations of the United States of America, (..) obliga- tions guaranteed or Insured by the United States of Ameram, which, in the opinion of the Attorney General of the United states, are backed by its full faith and credit or represent 23 its general obligatI~ or, '.°°the extent permitted ~ law, evidences ^ indebtedness issued, Insured ~guaran- teed by such governmental agencies ~ the Federal Land "~^., Federal Intermediate Credit Banks, Banks for .~~.~' taves, Federal Home Loan Banks, Government National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan ~.~~ ~~~.~~, provided that all such deposits and investments shall have . par value (or market value when less than par) exclusive ., accrued interest = all tames .` least equal ~ the amount of money credited ~such Funds, and shall be made~~~ manner that the am~,required ~beexpended from any Fund will °. available .` the proper tame ,. times Money ^.the Reserve Fund shall not be Invested in securities maturing `~.. than the final maturity ,,the Se.`.. °°"~^. and Addationa`Bonds Such investments shall be valued in terms ^. current market value ^... the last day .' each year, except that direct obligations °the United States (State and Local Government ,.~..` an book -entry form ^~`` be continuously valued attheir par ~ ~~ principal ~~~ Such ^~.^tme~. °.`` be sold promptly when necessary ° prevent any default ^. connection with the Series °=Bonds orAd.,^ona.Bonds sec.~ ~ FUN~ SECURED =~ money ~ .` Funds .~^`^^,~^.°~^~~., `, the extent not Invested, shall be secured ~ ~, manner prescribed ° ^~ ~~ ~~.~ funds .' the City Section 15 DEBT === REQUIREMENTS. w That ,~~~,~ after °~ ~`^~~, ~, °~ Bond. °~ City ~^^^ ~~~~be deposited ~ the credit ofthe Interest and Sinking Fund any accrued Interest received from the sale and ^.`^~~ ~ ~ ..~.. 1985 .~~, ~^ ~, ~~ ~~~^. shall ~ used ~ pay part ^ the Interest next coming due ~ °~`^~`^`^`^"~^^ (b) That the City shall transfer from the Pledged 24 Revenues and deposit to the credit of the Interest and SinkingEundthe amounts, at the times, as follows: (1) such amounts, deposited in aPProaimetely equal monthly Installments on or before the 25th day of each month hereafter, commencing with the month during which the Sereee 1905 880000 delivered, or the month thereafter If delivery Is made after the 25th day thereof, as will be sufficient, together with other amounts, If any, then on hand in the Interest and sinking Fund and available for such purpose, to pay the interest scheduled to accrue and come due on the Series 1985 Bonds and any Additional Bonds on the next suc- seeding Interestpayment date, (2) such amounts, deposited in approximately equal monthly installments on or before the 25th day of each month hereafter, commencing with the month during which the Series 1985 Bonds are delivered, or the month thereafter if delivery is made after the 25th day thereof, as will be sufficient, together with other amounts, if any, then on hand in the Interest and Sinking Fund and available for such purpose, to pay the principal scheduled to mature and come due on the Series 1985 Bonds and any Additional Bonds on the next succeedinsprincipal payment date, and (3) such amounts, deposited in monthly install- ments on or before the 25th day of each month as Amortisation Installments for the Series 1985 Bonds scheduled to mature on July 10, 2002 to the credit of the Mandatory Redemption Account commencing in July, 1999 and consinuing through June, 2002, 1/12 of the respective annual amounts as follows Twelve MonthPeriod Ending June 25 Amortisation Installment 2000 $ 1,960,002 2001 1,935,000 2002 *1,905,000 *Payable atmaturity 25 The City shall redeem Term Bonds of the Series 1955 Bonds maturing on July 10, 2002 on July 10 of each of the years 2000 to 2002, inclusive. The principal amount of the Term Bonds required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Bonds which, at least 50 days prior to the mandatory redemp- tion date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Bonds plus accrued Interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and cancelled by the Paying Agent/Registrar at the request of the City lath moneys in the Mandatory Redemption Account, at a price not exceeding the principal amount of such Term Bonds plus accrued inter- est to the date of purchase thereof, or (3) have been redeemed pursuant to the optional redemption provisions set forth above in Section 3 hereof and not theretofore credited against a mandatory redemption requirement On the maturity date of any Term Bonds, the City shall apply the monies on hand in the Mandatory Redemptson Account for the payment of the principal of the maturing Term Bonds If the monthly transfers to the Mandatory Redemption Account required by this Section 15(6) will produce a surplus In the Mandatory Redemption Account at maturity of the Term Bonds of the Series 1985 Bonds, the monthly transfers required on the account of the Term Bonds of the Series 1955 Bonds may be reduced accord/nglyand in approximately equal amounts (c) OPERATION OF MANDATORY REDEMPTION ACCOUNT FOR ALS:Th.1AL BONDS The City shall apply the melee in the Mandatory Redemption Account to the retirement of the Term Bonds required to be retired by mandatory redemption under the provisions of ordinances hereafter passed authordzIng Term Bonds, by either redemption or prior purchase In the 26 open market, all in the manner as shall be provided in such ordinances Section 16 REsERVE REQUIREMENTS That, concurrently with the delivery of the Series 1985 Bonds to the purchasers thereof the City shall deposit to the credit of the Reserve Fund from lawfully available funds, $3,050,000 On or before the 10th day of August, 1985, and on or before the 10th day of each month thereafter, the City shall cause to be transferred from Pledged Revenues and deposited to the credit of the Reserve Fund an amount equal to 1/80 of the average annual principal and Interest requirements of the Bonds, until the Reserve Fund contains an amount of money and investments at least equal in market value to the average annual principal and Interest requirements on all then outstanding Bonds (the .Required Amount") When and so long as the money and Investments in the Reserve Fund are not less than the Required Amount, no deposits need 05 0090 to the credit of the Reserve Fund, but when and if the Reserve Fund at any time contains less than Inc Required Amount, then, subject and subordinate to making the required deposits to the credit of the Interest and Sinking Fund, the City shall transfer from the Pledged Revenues and deposit to the credit of the Reserve Fund, on or before the 10th day of each month, a sum equal to 1/60 of the Required Amount until the Reserve Fund is restored to the Required Amount The City may, at its option, withdraw and use for any lawful purpose all surplus in the Reserve Fund over the Required Amount Section 17 SUBORDINATED OBLIGATIONS FUND Commencing during the month subordinated Obligations are delivered, or the month thereafter if delivery is 0000 0f100 the 25th day thereof, the Board shall deposit to the credit of the Subordinated Obligations Fund the amount in cash accruing in such calendar month for payment of Inc debt service require- ments on any Subordinated Obligations Such payments shall be subordinate and Junior in right of payment to the PaYment 27 of principal of and premium, If any, and Interest on the Series 1985 Bonds or Additional Bonds Section 18. DEFICIENCIES; EXCESS PLEDGED REVENUES (a) That if on any occasion there shall not be sufficient Pledged Revenues to make the required deposits Into the Interest and Sinking Fund, the Reserve P109 800 the Subord- inated Obligations Fund, then such deficiency shall be made up as soon as possible from the next available Pledged Revenues, or from any other sources available for such purpose (b) That, sub9ect to making the required deposits to the credit of the Interest and Sinking Fund, the Reserve Fund and the Subordinated Obligations Fund when and as required by this Ordinance, or any ordinance authorising the issuance of Additional Bonds or Subordinated Obligations, the excess Pledged Revenues may 85 0555 by the City for any lawfulpurpose not inconsistentwiththe City'a Charter. Section 19 PAYMENT OF SERIES 1985 BONDS AND ADDI- TIONAL BONDS That on or before January 10, 1986, and semiannually on or before each July 10 and January 10 thereafter while any of the Series 1985 Bonds or Additional Bonds are outstanding and unpaid, the City shall make available to the Payang Agent/Regostrar therefor, out of the Interest and Sinking Fund (and the Reserve Fund if neces- sary) money sufficient to pay such interest on and such principal of the Series 1985 Bonds and Additional Bonds as shall become due and mature on such dates, respectively, at maturity or by redemption prior to maturity. The Paying Agent/Registrar shall destroy all paid Series 1985 Bonds and Additional Bonds and furnish the City with an appropriate certlfiCate of cancellatIon or dertructron Section 20 FINAL DEPOSITS, GOvERNFIFFT OBLIGATIONS (a) That any Series 1985 Bond or Additional Bond shall be deemed to be paid, retired and no longer outstanding within the meaning of this Ordinance when payment of the principal of, redemption premium, 18 599, on such Series 1985 Bond or 2B Additional Bond, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, upon redemption, or otherwise) either (1) shall have been made or caused to be made in accordance with the tersm thereof (including the giving of any required notice of redemption), or (al) shall have been provided for by ir- revocably deposating wath, or making available to, . PaYing agent (or escrow agent) therefor, in trust and irrevocably set aside exclusively for such payment, (1) money sufficient to make such payment or (2) Government Obligations, as hereinafter defined In this Sec -Coon, certified by an Inde- pendent publac accountang firm of national reputation, to 000000 00 to principal and interest in such amounts and at such times as will insure the availability, without rein- vestment, of sufficient money to make such payment, and all necessary and proper fees, compensation, and expenses of such paying agent pertaining to the Series 1985 Bonds and Additional Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of such paying agent At such time as a Series 1985 Bond or Additional Bond shall be deemed to be paid hereunder, as aforesaad, it shall no longer be secured by or entitled to ihe benefit of this Ordinance or a lien on and pledge of the Pledged Revenues, and shall be entitled to payment solely from suchmoneyor Government Obligations (b) That any moneys so deposited with a paying agent may, at the direction of the Toby, also be invested in Government Obligations, maturang in the amounts and times as hereinbefore set forth, and all income from all Government Obligations its the hands of the paying agent pursuant to this Section which as not required for the payment of the Series 1985 Bonds and Additional Bonds, the redemption premium, if any, and interest thereon, with respect to 01010h such money has been so deposited, shall be remitted to the City 29 (c) That the City covenants that no deposit will be made or accepted under clause (a)(11) of this Section and no use made of any such deposit which would cause the Series 1885 Bonds or any Additional Bonds to be treated as arbi- trage bonds within the meaning of Section 103(c)(2) of the Internal Revenue Code of 1954, as amended (d) That for the purpose of this Section, the term .Government Obligations. shall mean direct obligations of the United States of America, including obligations the principal of and Interest on which are unconditionally quaranteedby the United States ofAmesica (e) That notwithstanding any other provisions of this Ordinamce, all money or Government Obligations set aside and held in trust pursuant to the provisions of this Section for the payment of Series 1985 Bonds and Addit1onal Bonds, the redemption premium, if any, and interest thereon, shall be applied to and used for the payment of such Series 1985 Bonds and Additional Bonds, the redemption premium, if any, and Interest thereon section 21 ADDITIONAL BONDS. (a) That the City shall have the right and power at any time and from time to time and in one or more series or Issues, to authorize, issue and deliver additional parity revenue bonds, in accordance with law, in any amounts, for purposes of extend - Ing, improving or repairing the System or for the purpose of refunding of any Series 1985 Bonds, Additional Bonds or other obligations, including Subordinated Obligations, of the City Incurred in connection with the ownership or operation of the System Such Additional Bonds, if and when authorized, Issued and delivered in accordance with this Ordinance, shall be secured by and made payable equally and ratably on a parity with the Series 1985 Bonds, and all other outstanding Additional Bonds, from a first lien on and pledge of the PledgedRevenues. (b) That the Interest and Sinking Fund and the Reserve Fund established by this Ordinance shall secUre end 45 0554 30 to pay all Additional Bonds as well as the Series 1985 Bonds However, each ordinance under which Additional Bonds are issued shall provide and require that, in addition to the amounts required by the provisions of this Ordinance and the provisions of any other ordinance or ordinances authorizing Additional Bonds to be deposited to the credit of the Interest and Sinking Fund, the City shall deposit to the credit of the Interest and sinking Fund at least such amounts as are required for the payment of all principal of and Interest on said Additional Bonds then being issued, as the same come due, and that the aggregete amount to be accumulated and maintained in the Reserve Fund shall be Increased (if and to the extent necessary) to an amount not less than the average annual principal and interest require- ments (including Amortization Installments) of all Series 1985 Bonds and Additional Bonds which will be outstanding after the issuance and delivery of the then proposed Addi- tional Bonds, and that the required additional amount shall be so accumulated by the 10500555 10 the Reserve Fund of all or any part of said required additional amount In cash Immediately after the delivery of the then proposed Addi- tional Bonds, or, 55 501 option of the City, 51 1100 deposit of said required additional amount (or any balance of said required additional amount not deposited in cash as per- mitted above) In monthly installments, made on or before the 10th day of each month following the delivery of the then proposed Additional Bonds, of not less than 1/80 of said required additional amount (or 1/80 of the balance of said required additional amount not deposited in cash as permit- ted above). (c) That all calculations of average annual principal and interest requiremente (including Amortization Install- ments) made pursuant 50 5115 Section shall be made as of and from the date of the Additional Bonds then proposed to be issued 31 (d) That the princrpal of all Additional Bonds must be scheduled to be pard or mature on July 10 of the year rn which such princlpal is scheduled to be pard or mature, and all interest thereon must be payable on January 10 and July 30 Sectren 22 FURTHER REQUIREMENTS FOR ADDITIONAL BONDS That Addrtronal Bonds shall be Issued only In accordance with thra Ordinance, but notwrthstandrng any provisions of this Ordinance to the contrary, no Installment, Serres or Issue of Additional Honda shall be Issued or delivered unless a) The Mayor and the Clty Secretary o£ the City sign a written certrfrcate to the effect that the C0ty is not In default as to any covenant, condition or obligation In connection with all outstanding Series 1985 Bonds and Addrtronal Bonds, and the ordinances authorizing same, and that the Interest and Sinking Fund and the Reserve Fund each contains the amount then required to be therein (b) An Independent certified public accountant, or Independent firm of certified pu lrc accountants, signs a written certificate to the effect that, during either the next preceding year, or any twelve consecutive calendar month period ending not more than ninety days prrar to the date of the then proposed Addrtronal Bonds, the Net Revenues were, in hna or Its opinion, at least equal to (1) 1 25 times the average annual prsticspal and interest requirements and (2) 1 1 times the principal and Interest requirements for the year during which such requirements are scheduled to be the greatest (each computed on a fiscal year basis and including Amortization Installments), of all Series 1985 Bands and Addrtronal Bonds to be outstanding after the issuance of the then proposed Addrtronal Bonds. Section 23 GENERAL COVENANTS That the C1ty further covenants and agrees that in accordance ankh and to the extent required or permitted by law 32 (a) PERFORMANCE. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance, and each ordinance authorizing the issuance of Additional Bonds, and In each and every Series 1985 Bond and Additional Bond, it will promptly pay or cause to be paid the principal of and interest on every Series 1985 Bond and Additional Bond, on the dates and in the places and manner prescribed in such ordinances and Series 1985 Bonds or Additional Bonds, and it will, at the time and In ±1,5 3333003± prescrdbed, deposit or cause to be deposited the amounts required to be deposited into the Interest and Sinking Fund and the Reserve Fund, and any owner of the Series 1985 Bonds or Additional Bonds may require the City, its officials and employees to carry out, respect or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Additional Bonds, by all legal and equitable means, Includ- ing specifically, but without limitation, the use and filing of mandamus proceedings, In anY court of cezPetent diction, against the City, its officials andemployees (b) CITY'S LEGAL AUTHORITY It is a duly created and existing home rule city of the State of Texas, and is duly authorized under the laws of the State of Texas to issue the Series 1985 Bonds, that all action on its part for the issuance of the Series 1985 Bonds has been duly and effec- tively taken, and that the Series 1985 Bonds in the hands of the owners thereof are and will be valid and enforceable special obligations of the City In accordance with their terms (c) TITLE It has or well obtain lawful title to the lands, buildings, structures and facilities constituting the System, that it warrants that it wall defend the title to ell the aforesaid lands, buildings, structures and facili- ties, and every part thereof, for the benefit of the owners of the Series 1955 Bonds and Additional Bonds, against the claims and demands of all persons whomsoever, that it is 33 lawfully gualrfred to pledge the Pledged Revenues to the payment of the Serres 1985 00080 055 Additional Bonds In the manner prescrrbed herein, and has lawfully exercrsed such rrghts (d) LIENS. It 0111 from time to tame and before the same become delanguent pay and drscharge all taxes, assess- ments and governmental charges, if any, whrch shall be lawfully Imposed upon rt, or the System, It 0011 pay all lawful clarms for rents, royalties, labor, materials and supplres whrch If unpaid might by law become a lien or charge thereon, the lien of which would be prror to or Interfere woth the lrens hereof, so that the priority of the Irons granted hereunder shall be fully preserved In the manner provrded herein, and it W111 not create or suffer to be created any mechanrc's, laborer's, materralman' a or other lren or charge whrch mrght or could be prior to the liens hereof, or do or suffer any matter or thing whereby the lrens hereof might or could 50 05501015, provided however, that no such tax, assessment or charge, and that no such claims whrch mrght be used as the be., of 050050000' s, laborer' s, materralman' s or other Ilen or charge, shall be regurred to lae pard so long as the valIdIty of the same shall be 00010a105 10 good forth 05 505 City (e) OPERATION OF SYSTEM, NO FREE SERVICE It wr11, while the Series 19S5 Bonds or any AddItIcnal Bonds are outstanding and unpard, contrnuously and effocrently operate the System, and shall marntain the System on good condrtron, reparr and working order., all at reasonable cost No free servrce of the System shall be allowed, end should the Crty or any of Its agencies or Instrumentalltres make use of the servrces and facIlltres of the System, payment of the reasonable value shall be made by the Crty out of funds from sources other than 550 05000050 of the System, unless made from surplus or. excess Pledged Revenues as perratted on Section 18(0) 34 (f) FURTHER ENCUMBRANCE. It, whale the Series 1985 Bonds or any Additional Bonds are outstanding and unpaid, wall not additionally encumber the Pledged Revenues in any manner, except as permitted in this Ordinance in connection with Additional Bonds, unless said encumbrance is made lunaor and subordinate an all respects to the liens, pled- ges, covenants and agreements of this Ordinance, but the right of the City to issue Subordinated Obligations payable from a subordinate lien on the Pledged Revenues is specifically recognized and retained (g) SALE OR DISPOSAL OF PROPERTY It, while the Series 1985 Bonds or any Additional Bonds are outstanding and unpaid, will not sell, convey, mortgage, encumber, lease or an any manner transfer title to, or otherwise dispose of the System, or any significant or substantial part thereof, provided further that whenever the City deems it necessary to dispose o£ any other property, machinery, fixtures or equipment, It may sell or otherwise dispose of such pr - perty, machinery, fixtures or equipment when it has made arrangements to replace the same or provide substitutes therefor, unless It is determined that no such replacement or substitute as necessary Proceeds from any sale here- under not used to replace or provide for substitution of such property old, shall be used for improvements to the System or to purchase or redeem Series 1985 Bonds and Additional Bonds (h) INSURANCE (1) It shall cause to be insured such parts of the System as would usually be insured by corpora- tions operating lake properties, with a responsible insur- ance company or companies, against risks, accidents or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fare and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance Public liability and property damage insurance shall also be carried unless 35 the City Attorney ^ the City gives .written opinion °the effect that the City ~not liable for claims which would be protected bysuch Insurance At any time while any contractor engaged ~ construction work sh°`be fully ~sp~.^.`~ °.~°. "~ City ^~`` not be required to carry Insurance ~ the work being constructed ^' the con- tractor ^. required ° carry appropriate insurance All ~ch~`~~ shall be open ~the inspection of the bond - owners and °~^r representatives at all ~..~°^. times Upon the happening ^ any loss ~ damage covered byinsur- ance fres) one ,. more ^, said causes, the City shall make °~ proof of °.. and shall do all ~~~ ~~.~~ ~ desirable ~ cause the insuring ~mPe~~~Make ~Yme~~ ~^` di~~~ ~ "~ City The ~~~ds ~ ~~~~. ~~~ng such property, together with any other funds necessary and available for such purpose, shall "~used forthwith ~the City for repairing the property damaged ~ .~`~^.,°.,.,.~,^.`~~^,,.~^^~, however, that ^' said insurance proceeds and other funds are insufficient for such purpose, then said Insurance proceeds pertaining ~the System shall be~ed~omp° ~°"~ '^` for the redemption prior ^. maturity ,'the Series "~Bonds and Additional Bonds, ratably ~the proportion that the outstanding principal ,'each series `' Series 19°Bonds or Additional Bonds bear to the total outstanding principal ." all Series ~.^ Bonds and Additional Bonds, provided that ^'~any ~.^...^.^~"~,.~~^`.'^~~.^..~.^^.~. subject ~redemption, ^. shall ~~be ~~~~ ~ outstanding ^.ma^ngthe foregoing computation, ,. '^^` ^' none ° the outstanding series "~Bonds ~ Additional Bonds ~ subject ~ redemption, than for the purchase ~ the open market and retirement of said ^`~~^ `=^ Bonds and Additional Bonds in the ^~~ ~opo~~ as prescribed in the foregoing .`~~ '^^ to the extent practicable, provided that the purchase 36 price for any Series 1985 Bond or Additional Bond shall not exceed the redemption price of such Series 1985 Bond or Additional Bond on the first date upon which it becomes subject to redemption) or (111) to the extent that the foregoing clauses (i) and (II) cannot be complied with at the time, the insurance proceeds, or the remainder thereof, shall be deposited in a special and separate trust fund, at an official depository of the City, to be designated the Insurance Account. The Insurance Account shall be held until such time as the foregoing clauses (1) and/or (il) can be complied with, 00 00090 other funds become available which, together with the Insurance Account, will be sufficient to make the repairs or replacements originally required, whichever of said events occurs first. (2) The foregoing provisions of (1) above notwith- standing, the City shall have authority either to self - insure or enter into co-insurance or similar plans where risk of loss is shared in whole or in part by the City. (3) The annual audit hereinafter required shall contain a section commenting on whether or not the City has complied with the requirements of this Section with respect to the maintenance of insurance, and listing all policies carried, and whether or not all insurance premiums upon the insurance policies to which reference is hereinbefore made have been paid. (1) RATE COVENANT. The City Council of the City will fix, establish, maintain and collect such rates, charges and fees for the use and availability of the System at all times as are necessary to produce Gross Revenues sufficient, together with any other Pledged Revenues, (1) to pay all current operation and maintenance expenses of the System, (2) to produce Pledged Revenues for each year at least equal to 1.25 times the average principal and interest requirements (including Amortisation Requirements) of all then outstanding Bonds and Additional Bonds, and (3) to pay all other obligations of the System. (5) REcORDS. It will keep proper books of record and account in which full, true and correct entries will be made 09 011 dealings, activities and transactions relating to the system, the Pledged Revenues and the Funds created pursuant to this Ordinance, and all books, documents and vouchers relating thereto shall at all reasonable times be made available for Inspection upon request of any bondowner. (1) AUDITS. After the close of each year while any of the Series 1985 Bonds or any Additional Bonds are outstand- ing, an audit will be made of the books and accounts relat- ing to the System and the Pledged Revenues by an independent certified public accountant or an Independent firm of certified public accountants. As soon as practicable after the close of each such year, and when said audit has been completed and made available to the Czty, a copy of such audit for the preCedIng year shall be mailed to the Munici- pal Advisory Council of Texas and to any holder of 59 or more in aggregate principal amount of then outstanding Series 1985 Bonds and Additional Bonds who shall so request in writing. Such annual audit reports shall be open to the Inspection 09 115 bondowners and their agents and represen- tatives at all reasonable times. (1) GOVERNMENTAL AGENCIES. It will comply with all of the terms and conditions of any and all franchises, permits and authorizations applicable to or necessary with respect to the System, and which have been obtained from any govern- mental agency: and the City has or will obtain and keep in full force and effect all franchises, permits, authorization and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, opera- tion and maintenance of the system. (m) NO COMPETITION. It will not grant any franchise or permit for Inc acquisition, construction or operation of 3 any competing facilities which might be used as a substitute for the System's facilities, and, to the extent that at legally may, the City will prohibit any such competing facilities (n) MO ARBITRAGE. It will make no use of the proceeds of the Series 1985 Bonds at any time throughout the term of this issue of Series 1985 Bonds which, if such use had been reasonably e,pected on the date of delivery of the Series 1985 Bonds to and payment for the Series 1985 Bonds by the purchasers, would have caused the Series 1985 Bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regula- tions or rulings pertaining thereto) and by this covenant the City Is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Series 1985 Bonds will not otherwise be used directly or indirectly so as to cause all or any part of the Series 1985 Bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(0), or any regulations pertaining thereto Section 24 PROCEEDS OF SAGE That the proceeds from the sale and delivery of the Series 1985 Bonds shall be deposited in Immediately available funds with the bank hereinafter designated by the Mayor as the bank of delivery for such proceeds, less accrued Interest on the Series 1985 Bonds which shall be deposited to the credit of the Interest and Sinking Fund, and shall be used for refunding, discharg- ing and retiring all of the Refunded Obligations, Initially funding the Reserve Fund as herein provided, and paying the costs and expenses of Issuance of the Series 1985 Bonds By an ordinance of the City Council of even date herewith the City Council has authorized the execution of a "Special Escrow Fund Agreement" between the City and MBank Corpus Christi, N A , Corpus Christi, Texas , which provides for 39 the deposit of part of the foregoing proceeds with the said bank, which will use such proceeds, together with funds on deposit on said date, in the funds established by the ordinances authorizing the Refunded Obligations, to provide for the refunding, discharging and retaring of the Refunded Obligations Section 25 REASONS FOR REFUNDING That it is specif- ically found and determined by the City that the ordinances authorising the Refunded Obligations contain restrictive covenants which prevent adequate flexibility for the econom- ical financing of pro3ects which are expected to be required for the System in the future It is found that the refund- ing of the Refunded Obligations in the manner herein pro- vided Is expected to reduce for a number of years the portion of the annual Net Revenues of the System which will be required to service the bonded debt of the System Therefore, it Is in the beet interest of the City that such refunding be accomplished, and the Refunded Obligations be refunded, discharged and retired thereby Section 26 AMENDMENT of ORDINANCE. (a) That the owners of Series 1985 Bonds and Additional Bonds aggregating in principal amount 51% of the aggregate principal amount of then outstanding Series 1985 Bonds and Additional Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City, provided, however, that without the consent of the holders of all of the Series 1985 Bonds and Additional Bonds at the time outstanding, nothing herein contained shall permit or be construed to permit the amend- ment of the terms and conditions in this Ordinance or in the Series 1985 Bonds or Additional Bonds so as to (1) make any change in the maturity of the outstanding Series 1985 Bonds or Additional Bonds, (2) Reduce the rate of Interest borne by any of the outstanding Series 1985 Bonds or Additional Bonds, (3) Reduce the amount of the principal payable on the 40 outstanding Series 1985 Bonds orAdditional Bonds, (4) modify the terms of payment of principal of or Interest on the outstanding Series 1985 Bonds or Additional Bonds, or Impose any conditions with respect to suchpayment, (5) Affect the rights of the holders of less than all of the Series 1985 Bonds and Additional Bonds then outstanding, (6) Change the minimum percentage of the principal amount of Serses 1985 Bonds and Additional Bonds necessary for consent to such amendment. (b) That if at any 589e the City shall desire to amend the Ordinance under this Section, the City shall cause notice of the proposed amendment to be published in a financial newspaper or )ournal published In The City of New York, New York, once during each calendar week for at least two successive calendar weeks Such Notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on 0110 at the principal office of the Paying Agent/Registrar for inspection by all holders of Bonds and Additional Bonds. Such publication is not required, however, if notice in writing is given to each holder of Bonds andAddirlonal Bonds (c) That whenever at any time not less than thirty days, and wsthin one year, from the date of the first publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the owners of ar least 51% in aggregate prin- cipal amount of all Bonds and Additional Bonds then out- standing, which instrument or instruments shall refer to t55 proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the farm of the copy thereof an file with the PayIng Agent/Registrar, the City Council may pass the amendatory ordinance in substantially the same form (0) That upon the passage of any amendatory ordinance 41 pursuant to the provisions of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory ordinance, and the respective rights, duties and oblrgatrons under this Ordinance of the City and all the owners of then outstanding Series 1985 Bonds and Addrtronal Bonds and all future Additional Bonds shall thereafter be determlned, exercrsed and enforced hereunder, subgect in all respects to such amendments (e) That any consent grven by the owner of a Serves 19SS Bond or Addrtional Bond pursuant to the provisions of thus Section shall be Irrevocable for a period of six months from the date of the first publication of the notice pro- vIded for in this Section, and shall be conclusive and binding upon all future owners of the same Series 1985 Bond or Additional Bond during such period Such consent may be revoked at any time after arm months from the date of the 00050publication of such notice by the owner who gave such consent, or by a successor. in title, by filing notice thereof with the Paying Agent/Registrar and the City, but such revocation shall not be effectrve if the owners of 51% in aggregate principal amount of the then outstanding Bonds and Additional Bonds as in this Section defined have, prior to the attempted revocation, consented to and approved the amendment (f) That for the purpose of thrs Sectron, the owner- shrp of Series 1985 Bonds or Additional Bonds shall be as shown by the regrstratron books of the Paying Agent/Regis- trar. (g) The foregorng provrsrons of this Section notwith- standing, the Crty by action of the Crty Council may amend this Ordinance for any one or more of the followIng pur- poses (1) To add to the covenants and agreements of the City in this Ordinance contained, other covenants and agreements thereafter to be observed, grant addrtronal rights or remedies to bondowners or to surrender, 42 restrict or limit any right or power herein reserved to or conferredupon the City, (2) To make such provisions for the purpose of curing any ambiguity, or curing, correcting or supple- menting any defective provision contained in this Ordinance, or In regard to clarifying matters or questions arising under this Ordinance, as are neces- sary or desirable and not contrary to or Inconsistent with this Ordinance and which shall not adversely affect the Interests of the owners of the Series 1985 Bonds orAdditional Bonds, (3) To modify any of the provisions of this Ordinance in any other respect whatever, provided that (1) such modification shall be, and be expressed to be, effective only after all Series 1985 Bonds and each series of Additional Bonds outstanding at the date of the adoption of such modification shall cease to be outstanding, and (iI) such modification shall be specifically referred to in the text of all Additional Bonds issued after the date of the adoption of such modification Section 27 DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS (a) REPLACEMENT BONDS In the event any outstanding Series 1985 Bond is damaged, nmtilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and Interest rate, as the damaged, mutilated, lost, stolen, or destroyed Series 1985 Bond, in replacement for such Series 1985 Bond in the manner hereinafterprovided (b) APPLICATION FOR REPLACEMENT BONDS Application for replacement of damaged, mutilated, lost, stolen, or destroyed Semmes 1985 Bonds shall be made to the Paying Agent/Registrar In every case of loss, theft, or destruc- tion of a Bond, the applicant for a replacement bond shall furnish to the c.ty and to the Paying Agent/Registrar such 43 security or Indemnity as may be required by them to save 0009 00 them harmless from any loss or damage with respect thereto Also, in every case of loss, theft, or destruction of a Series 1985 Bond, the applicant shall furnish to the City and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be In every case of damage or mutilation of a Series 1985 Bond, the applicant shall surrender to the Paying Agent/Registrar for cancellation the Series 1985 Bond so damaged ormutylated (c) NO DEFAULT OCCURRED Notwithstanding the fore- going provisions of this Section, in the event any such Series 1985 Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium. if any, or interest on the Serves 1985 Bond, the City may authorize the payment of the same (without surrender thereof except in *0 0080 of a damaged or mutilated Series 1985 Bond) Instead of issuing a replacement Series 1985 Bond, provided securitY or indemnitY is furnished as above provided an this Section. (d) CHARGE FOR ISSUING REPLACEMENT BONDS. Prior to the Issuance of any replacement bond, the Paying Agent/Peg- istrar shall charge the owner of such Series 1985 Bond with all legal, printing, and other expenses in connection therewith Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Series 1985 Bond is lost, stolen, or destroyed shall consti- tute a contractual obligation of the City whether or not the lost, stolen, or destroyed Series 1985 Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Series 1985 Bonds duly issuedunder this Ordinance (e) AUTHORITY FOR ISSUING REPLACEMENT BONDS in accordance with Section 6 of Vernon's Ann TeX COV St Art 7170-6, this Section of this Ordinance shall constitute 44 authority for the Issuance of any such replacement bond without necessity of further action by the governing body of the City or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Regie- trar shall authentroate and deliver such bonds in the form and manner and with the effect, as provided in Section 5(d) of this Ordinance for Series 1985 Bonds issued in conversion and exchange for other Series 1985 Bonds Section 28 APPROVAL AND REGISTRATION OF BONDS That the Mayor of the City is hereby authorized to have control of the Series 1985 Bonds and all necessary records and proceedings pertaining to the Series 1985 Bonds pending their delivery and their investigation, examination and approval I, the Attorney General of the State of Texas, and their registration by the Comptroller 00 008100 Accounts of the State of 90005 Upon registration of the Series 1985 Bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate accompanying the Series 1985 Bonds, and the seal of said Comptroller shall be impressed, or 81,000 10 facsimile, on each such certificate Section 29 SALE OF SERIES 1985 BONDS (a) That the sale of the Series 1985 Bonds, at a price of 5 to the underwriters named in the Purchase Contract described below. together with accrued interest on the Series 1985 Bonds 0005 505 10, 1985 to date of delivery, and in accord- ance with the terms and conditions 00 005 Purchase Contract, between the City and Scdth Sarney, Barris Upham Co Incorporated, accepted by the City concurrently herewith, relating to the Serces 1985 Bonds, is hereby authorized, ratified and confirmed (b) That the Purchase 00050001 55t0500 forth the terms of the sale of the Series 1985 Bonds to the purchasers thereof referred to in (a) above, is hereby accepted, 45 approved and authorized to be delivered In executed form to said purchasers. The Purchase Contract shall be executed by the City Manager, attested by the City Secretary, and approved as to form and legalltyby the City Attorney Section 30 EMERGENCY The fact that refunding of the Refunded Obligations is necessary in order to Issue bonds for extensions and Improvements to the System and such extensions and improvements are necessary for the orderly development and growth of the City of Corpus Christi, Texas, creates a public emerpency and an imperative public necessity requiring the suspension of the Charter Rule providing that no ordinance or resolution shall be passed finally on the date it is introduced and that euch 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 itspassage, it is accordingly sO Ordained Section 31 ORDINANCES AND RESOLUTIONS IN CONFLICT That all ordinances and resolutions or parts thereof in conflict herewith are hereby repealed PASSED AND APPROVED 1935 CCrpuO (SEAL) The foregoing Ordinance was approved prior to passage as to form and correctness this the Ap-rilay of 1985 Coryua 46 THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CRR/STI I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto), on the 16th day of May, 1985, authorizing the Issuance of 531,975,000 City of Corpus Christi, Texas Waterworks System Revenue Refunding Bonds, Series 1985, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Ann. Civ. Stat 6252-27, as amended. EXECUTED UNDER MY HAND AND SEAL OF SAID CITY, this the 16th day of May, 1985. (SEAL) City Secreter2 &rjorpus Christi, Texas Corpus'/Christ,, Te as 104/4 day of n/ , 1981r TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the re set forth in the emergency clause of the foregoing ordinance or esolution,.saemergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regularm eetings. I/we, therefore, request that you suspend said Charter rule and passthis ordinance or resolution finally on the date it is introduced, or at the present meeting afthe City Council. Respectfully, Respectfully, Council Members WYOR Fri TH ITY OF CORPUS CHRISTI, TEXAS The above ordinance was pessn.by the following vote Luther Jones Betty N. Turner David Berlanga, Sr. Welder Brown / Leo Guerrero I _ Dr Charles W. Kennedy L Joe McComb Frank Mendez /I Mary Pat S1aviL 1- 18834 18834