HomeMy WebLinkAbout20098 ORD - 12/03/1987THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
On this the 3rd day of December, 1987, the City Council
of the City of Corpus Christi, Texas convened in Special
Meeting, with the following members of said Council present,
to -wit:
Betty Turner,
(vacancy)
David Berlanga, Sr.,
Leo Guerrero,
Linda Strong,
Bill Pruet,
Cliff Moss,
Mary Rhodes,
Mary Pat Slavik,
Craig A. McDowell,
Hal George,
Debra J. Andrews,
Armando Chapa,
with the following absent:
Mayor,
Councilmembers,
City Manager,
City Attorney,
Director of Finance,
City Secretary,
Leo Guerrero and Mary Pat Slavik
constituting a quorum, at which time the following among
other business was transacted:
City Manager presented for the consideration of the
Council an ordinance. The ordinance was read by the City
Secretary. The Mayor presented to the Council a communica-
tion in writing pertaining to said proposed ordinance, as
follows:
"Corpus Christi, Texas
December 3, 1987
"TO THE CITY COUNCIL
Corpus Christi, Texas
Gentlemen:
"The public importance and pressing need for the
issuance of refunding bonds for refunding of certain of the
City's General Improvement Bonds to facilitate further
financing for permanent improvements creates an emergency
20098
and an imperative public necessity requiring the suspension
of rules and Charter provisions requiring ordinances to be
considered and voted upon at three regular meetings. I,
therefore, request that the City Council pass the proposed
ordinance authorizing an escrow agreement 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 subject.
"Yours very truly,
/s/ Betty Turner
Mayor"
Councilmember Linda Strong 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 Bill Pruet The motion was carried by
an unanimous vote by the City Council, viz.:
AYES: All present voted Aye.
NAYS: None.
Councilmember iYDg 57120NG moved that the ordi-
nance be passed finally. The motion was seconded by Coun-
cilmember /3 // /. PT u T . 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.
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
$40,200,484.55 GENERAL IMPROVEMENT AND
REFUNDING BONDS, SERIES 1987, OF THE CITY OF
CORPUS CHRISTI, TEXAS, BEARING INTEREST AT
THE RATES HEREINAFTER SET FORTH, AND PROVID-
ING FOR THE LEVY, ASSESSMENT AND COLLECTION
OF A TAX SUFFICIENT TO PAY THE INTEREST ON
SAID BONDS AND TO CREATE A SINKING FUND FOR
THE REDEMPTION THEREOF AT MATURITY; REPEALING
ALL ORDINANCES IN CONFLICT HEREWITH; DECLAR-
ING AN EMERGENCY; AND ALL OTHER MATTERS
RELATED THERETO.
WHEREAS, the City of Corpus Christi, Texas (the "City"
or the "Issuer") proposes to refund certain maturities of
its outstanding General Improvement and Refunding Bonds,
Series 1985-A, to -wit:
MATURITY DATE REFUNDED AMOUNT
November 1, 1990 $ 250,000
November 1, 1991 750,000
November 1, 1992 1,000,000
November 1, 1993 1,500,000
November 1, 1994 1,500,000
November 1, 1995 1,500,000
November 1, 1996 5,685,000
November 1, 1997 5,625,000
November 1, 1998 5,360,000
(the "Refunded Obligations"); and
WHEREAS, the refunding bonds hereinafter authorized are
to be issued and delivered pursuant to Article 717k,
V.A.T.C.S., as amended, for the purpose of refunding the
Refunded Obligations; and
WHEREAS, Article 717k, V.A.T.C.S., as amended, further
authorizes the City to enter into an escrow agreement with
any paying agent for the Refunded Obligations with respect
to the safekeeping, investment, reinvestment, administration
and disposition of any such deposit, upon such terms and
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conditions as the City and such paying agent may agree,
provided that such deposits may be invested and reinvested
in direct obligations of the United States of America,
including obligations the principal of and interest on which
are unconditionally guaranteed by the United States of
America, and which shall mature and bear interest payable at
such times and in such amounts as will be sufficient to
provide for the scheduled payment or prepayment of the
Refunded Obligations; and
WHEREAS, the City deems it advisable to refund the
Refunded Obligations in order to lower the overall annual
debt service requirements of the City, to restructure the
City's cash flow and to establish uniform dates for the
principal and interest payments for the City's bond debt;
and
WHEREAS, First City Bank of Corpus Christi, Corpus
Christi, Texas, is the "Paying Agent/Registrar" for the
Refunded Obligations and
WHEREAS, in accordance with Article 717k, V.A.T.C.S.,
the City has concurrently herewith authorized an Escrow
Agreement with First City Bank of Corpus Christi, Texas,
wherein proceeds from the Refunding Bonds herein authorized,
together with other available funds, are authorized to be
held for the purpose of the payment of principal of and
interest on the Refunded Obligations; and
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WHEREAS, all the Refunded Obligations mature or are
subject to redemption prior to maturity within twenty years
of the date of the bonds hereinafter authorized; and
WHEREAS, it is deemed advisable and to the best inter-
est of the City that bonds authorized at elections held in
said City on April 5, 1986 and April 6, 1987, respectively,
be sold at this time, with the amounts of bonds authorized
thereat,the purposes authorized, and the amount now to be
sold being as follows:
DATE OF AMOUNT AMOUNT PRE- AMT.NOW
ELECTION AUTHORIZED PURPOSE VIOUSLY SOLD OFFERED
4-5-86 $15,890,000 Wastewater $10,580,000 $ -0-
4-5-86 5,560,000 Draing.&Strm Sew. 2,300,000 570,000
4-5-86 4,000,000 Aquarium 1,300,000 2,700,000
4-5-86 9,900,000 Pub.Health & Saf. 800,000 6,600,000
4-5-86 4,785,000 Airport 910,000 400,000
4-5-86 14,875,000 Parks & Recrea. 3,015,000 1,100,000
4-5-86 49,935,000 Street 6,720,000 3,330,000
4-6-87 1,000,000 Library Books -0- 250,000
4-6-87 420.000 Senior Centers -0- -0-
$106,365,000 $25,625,000 $14,950,000
WHEREAS, it is hereby officially found and determined:
that a case of emergency or urgent public necessity exists
which requires the holding of the meeting at which this
Ordinance is passed, such emergency or public necessity
being that the proceeds from the proposed bonds are required
as soon as possible and without delay for necessary and
urgently needed public improvements; that this meeting was
open to the public as required by law; and that public
notice of the time, place and purpose of this meeting was
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given as required by Vernon's Ann. Civ. Stat. Article
6252-17, as amended.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
1. That the bonds of said City to be called "General
Improvement and Refunding Bonds, Series 1987" (the "Bonds"),
in the aggregate principal amount of $40,200,484.55 be
issued under and by virtue of the Constitution and laws of
the State of Texas and the Charter of said City for the
purpose of (a) refunding certain of the outstanding
obligations of the City secured by a pledge of ad valorem
taxes, to-wit, the Refunded Obligations, and (b) providing
funds for permanent improvements, such bonds issued for
refunding being in the aggregate principal amount
$25,250,484.55 and bonds issued for permanent improvements
being in the aggregate principal amount of $14,950,000,
to-wit: for the purpose of providing $570,000 for con-
structing drainage and storm sewer improvements including
Turkey Creek; Mary Carroll Channel; Richter Channel Widen-
ing; Joint City/State projects; Flour Bluff and Clarkwood;
Baldwin Farms Area Drainage Outfall at South Padre Island
Drive; McKenzie Road-Leopard Area; and other drainage and
storm sewer improvements; $2,700,000 for permanent improve-
ments for an aquarium, to-wit: land acquisition, parking
and reconstructing and installing water and sewer lines and
storm drainage and bulkheading and other cultural enhance-
ments; $6,600,000 for permanent improvements for the public
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health and safety, to-wit: building and equipping addition-
al fire stations and a new police and municipal court
facility; expand Williams Drive Clinic, including land
acquisition; a public safety radio communication system; a
municipal service center; and related permanent improve-
ments; $400,000 for constructing airport improvements at the
City's international airport, including taxiway rehabilita-
tion for runways 11-31 and 17-35; repairs/grooving runway
17-35; concourse extension/gate; extension of commercial
apron; and other airport improvements; $1,100,000 for
improving lands for park and recreation facilities, includ-
ing various neighborhood parks; seawall and T-head improve-
ments; renovation and expansion of existing recreation
facilities; development of unimproved park land (existing
acreage); and other park improvements; $3,230,000 for
improving the streets of the City including Waldron Road,
from Compton Road to Purdue Road, including drainage im-
provements; McArdle Road from Ayers Street to Carroll Lane
and from Carroll Lane to Everhart Road; Ayers Street from
Santa Fe to Norton Street; Agnes Street from Port Avenue to
Airport Road; Whitecap Avenue; Greenwood Drive from South
Padre Island Drive to Saratoga Boulevard; neighborhood
street improvements; joint City/State projects; and other
street and sidewalk improvements; and $250,000 for the
acquisition of library books (children and adult) reference
and resource materials for Corpus Christi Public Library and
the Flour Bluff, Greenwood, Northwest and Parkdale Branches.
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2. That the Bonds shall be issued as fully registered
bonds without interest coupons and shall be dated December
1, 1987.
3. (a) That such Bonds aggregating in principal amount
$23,625,000 (the "Current Interest Bonds"), each in the
denomination of $5,000 or any integral part thereof, num-
bered from R-1 upward, shall mature and be payable on the
dates, and in the amounts, and bear interest at the rates
per annum, as follows:
MATURITY INTEREST MATURITY INTEREST
DATE AMOUNT RATE (%) DATE AMOUNT RATE (%)
May 1, 1988 $1,155,000 5.50 November 1, 1993 $ 550,000 6.80
November 1, 1988 560,000 5.75 November 1, 1994 545,000 7.00
November 1, 1989 430,000 6.00 November 1, 1995 510,000 7.10
November 1, 1990 125,000 6.20 November 1, 1996 4,755,000 7.25
November 1, 1991 285,000 6.40 November 1, 1997 4,650,000 7.40
November 1, 1992 265,000 6.60 November 1, 1998 4,360,000 7.50
November 1, 1999 5,435,000 7.60
Said interest shall be payable to the registered owner of
each such Current Interest Bond in the manner provided and
on the dates stated in the FORM OF BOND set forth in this
Ordinance.
(b) That such Bonds aggregating in principal amount
$16,575,484.55 (the "Capital Appreciation Bonds"), each in
the maturity amount of $5,000 or any integral part thereof,
numbered from CR-1 upward, shall be issued in the original
aggregate principal amounts, shall mature and be payable in
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the aggregate maturity amounts on the dates as follows:
ORIGINAL AGGREGATE
PRINCIPAL AMOUNT
$3,652,570.65
3,398,939.10
3,176,745.30
2,938,091.20
2,739,692.80
669,445.50
MATURITY
DATE
AGGREGATE
MATURITY AMOUNTS
November 1, 2000 $ 10,015,000
November 1, 2001 10,215,000
November 1, 2002 10,485,000
November 1, 2003 10,670,000
November 1, 2004 10,880,000
November 1, 2005 2,910,000
(c) The Capital Appreciation Bonds scheduled to mature
on the dates, respectively, set forth below shall accrue
interest from the Issuance Date, calculated on the basis of
a 360 -day year composed of twelve 30 -day months (subject to
rounding to the Appreciated Amounts (hereinafter described)
thereof), compounded semiannually on May 1 and November 1 of
each year commencing May 1, 1988, and payable, together with
the principal amount thereof, in the manner provided in the
FORM OF BOND set forth in this Ordinance, to yield at
maturity the following rates per annum:
DATE INTEREST RATE (%)
November 1, 2000
November 1, 2001
November 1, 2002
November 1, 2003
November 1, 2004
November 1, 2005
8.00
8.10
8.20
8.30
8.35
8.40
Reference is hereby made to Schedule I hereto, which
sets forth the rounded original principal amounts at the
Issuance Date for the Capital Appreciation Bonds and, as of
each May 1 and November 1, commencing May 1, 1988, and
continuing until stated maturity, the original principal
amount thereof, plus all interest accrued and compounded to
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the particular date of calculation (the "Appreciated
Amount"). The Appreciated Amount with respect to any date
other than May 1 or November 1 is the amount set forth on
Schedule I with respect to the last preceding May 1 or
November 1, as the case may be, plus the portion of the
difference between such amount and the amount set forth on
Schedule I with respect to the next succeeding May 1 or
November 1, as the case may be, that the number of days
(based on 30 -day months) from such last preceding May 1 or
November 1, as the case may be, to the date for which such
determination is being calculated bears to the total number
of days (based on 30 -day months) from such last preceding
May 1 or November 1, as the case may be, to the next suc-
ceeding May 1 or November 1, as the case may be.
4. (a) That the City reserves the right to redeem the
Current Interest Bonds maturing on or after November 1,
1998, in whole or in part, on November 1, 1997, or on any
date thereafter, at a redemption price equal to the princi-
pal amount thereof and accrued interest thereon to the date
fixed for redemption. The years of maturity of the Current
Interest Bonds called for redemption at the option of the
City prior to stated maturity shall be selected by the City.
The Current Interest Bonds or portions thereof redeemed
within a maturity shall be selected by lot.
(b) That the Capital Appreciation Bonds are not
subject to redemption prior to stated maturities.
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(c) At least 30 days prior to the date fixed for any
such redemption, (i) 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 mail, first-class postage
prepaid, in the name of the City and at the City's expense
addressed to each such registered owner at his address shown
on the registration books of the Paying Agent/Registrar
(hereinafter defined) and (ii) notice of such redemption
shall be published one (1) time in a financial journal or
publication of general circulation in the United States of
America carrying as a resular feature notices of municipal
bonds called for redemption; provided, however, that the
failure to send, mail, or receive such notice described in
(i) above, or any defect therein or in the sending or
mailing thereof, shall not affect the validity or effective-
ness of the proceedings for the redemption of any Bond, and
it is hereby specifically provided that the publication of
notice described in (ii) above shall be the only notice
actually required in connection with or as a prerequisite to
the redemption of any Bonds. By the date fixed for any such
redemption due provision shall be made by the City with the
Paying Agent/Registrar for the payment of the required
redemption price for the Bonds or the portions thereof which
are to be so redeemed, plus accrued interest thereon to the
date fixed for redemption. If such written notice of
redemption is given, and if due provision for such payment
9
is made, all as provided above, the Bonds, or the portions
thereof, which are to be so redeemed, thereby automatically
shall be redeemed prior to their scheduled maturities, and
shall not bear interest after the date fixed for their
redemption, and shall not be regarded as being
outstanding except for theright of the registered owner to
receive the redemption price plus accrued interest to the
date fixed for 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 redemptions of principal of the Bonds or any portion
thereof. If a portion of any Bond shall be redeemed a
substitute Bond or 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, equal to the
unredeemed portion thereof, will be issued to the registered
owner upon the surrender thereof for cancellation, at the
expense of the City, all as provided in this Ordinance.
5. (a) The City shall keep or cause to be kept at the
principal corporate trust office of MBank Corpus Christi,
N.A., Corpus Christi, Texas, or such other bank, trust
company, financial institution, or other agency named in
accordance with the provisions of (g) of this Section hereof
(the "Paying Agent/Registrar") books or records of the
registration and transfer of the Bonds (the "Registration
Books"), and the City hereby appoints the Paying
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Agent/Registrar as its registrar and transfer agent to keep
such books or records and make such transfers and registra-
tions under such reasonable regulations as the City and
Paying Agent/Registrar may prescribe; and the Paying Agent/
Registrar shall make such transfers and registrations as
herein provided. It shall be the duty of the Paying Agent/
Registrar to obtain from the registered owner and record in
the Registration Books the address of such registered owner
of each bond to which payments with respect to the Bonds
shall be mailed, as herein provided. The City or its
designee shall have the right to inspect the Registration
Books during regular business hours of the Paying Agent/Reg-
istrar, but otherwise the Paying Agent/Registrar shall keep
the Registration Books confidential and, unless otherwise
required by law, shall not permit their inspection by
any other entity. Registration of each Bond may be trans-
ferred in the Registration Books only upon presentation and
surrender of such bond to the Paying Agent/Registrar for
transfer of registration and cancellation, together with
proper written instruments of assignment, in form and with
guarantee of signatures satisfactory to the Paying Agent/
Registrar, evidencing the assignment of such bond, or any
portion thereof in any integral multiple of $5,000 denomina-
tion (in the case of a Current Interest Bond) or maturity
amount (in the case of a Capital Appreciation Bond) thereof,
to the assignee or assignees thereof, and the right of such
assignee or assignees to have such bond or any such portion
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thereof registered in the name_ of such assignee or as-
signees. Upon the assignment and transfer of any Bond or
any portion thereof, a new substitute bond or bonds shall be
issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Bond shall be regis-
tered 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 affect-
ed 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 bond to the
extent of the sum or sums so paid.
(c) The City hereby further appoints the Paying
Agent/Registrar to act as the paying agent for paying the
principal of and interest on the Bonds, and to act as its
agent to exchange or replace Bonds, all as provided in this
Ordinance. The Paying Agent/Registrar shall keep proper
records of all payments made by the City and the Paying
Agent/Registrar with respect to the Bonds, and of all
exchanges of such bonds, and all replacements of such bonds,
as provided in this Ordinance.
(d) Each Bond may be 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
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unredeemed principal amount thereof, may, upon surrender of
such bond at the principal corporate trust office of the
Paying Agent/Registrar, together with a written request
therefor duly executed by the registered owner or the
assignee or assignees thereof, or its or their duly author-
ized attorneys or representatives, with guarantee of signa-
tures satisfactory to the Paying Agent/Registrar, at the
option of the registered owner or such assignee or assign-
ees, as appropriate, be exchanged for fully registered
bonds, without interest coupons, in the form prescribed in
the FORM OF BOND set forth in this Ordinance, in the denomi-
nation (in the case of Current Interest Bonds) or maturity
amount (in the case of Capital Appreciation Bonds) of
$5,000, or any integral multiple thereof (subject to the
requirement hereinafter stated that each substitute bond
shall have a single stated maturity date), as requested in
writing by such registered owner or such assignee or assign-
ees, in an aggregate principal amount (in the case of
Current Interest Bonds) or maturity amount (in the case of
Capital Appreciation Bonds) equal to the unredeemed princi-
pal amount or maturity amount of any Bond or Bonds so sur-
rendered, and payable to the appropriate registered owner,
assignee, or assignees, as the case may be. If a portion of
any Bond shall be redeemed prior to its scheduled maturity
as provided herein, a substitute bond or bonds having the
same maturity date, bearing or accruing interest at the same
rate, in the denomination or denominations (in the case of
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Current Interest Bonds) or maturity amount or amounts (in
the case of Capital Appreciation Bonds) of any integral mul-
tiple of $5,000 at the request of the registered owner, and
in an aggregate principal amount (in the case of Current
Interest Bonds) or maturity amount (in the case of Capital
Appreciation Bonds) equal to the unredeemed portion thereof,
will be issued to the registered owner upon surrender
thereof for cancellation. If any Bond or portion thereof is
assigned and transferred, each bond issued in exchange
therefor shall have the same principalmaturity date and
bear or accrue interest at the same rate as the bond for
which it is being exchanged. Each substitute bond shall
bear a letter and/or number to distinguish it from each
other bond. The Paying Agent/Registrar shall exchange or
replace Bonds as provided herein, and each fully registered
bond or bonds delivered in exchange for or replacement of
any Bond or portion thereof as permitted or required by any
provision of this Ordinance shall constitute one of the
Bonds for all purposes of this Ordinance, and may again be
exchanged or replaced. It is specifically provided, howev-
er, that any Current Interest Bond delivered in exchange for
or replacement of another Current Interest Bond prior to the
first scheduled interest payment date on the Current Inter -
est Bonds (as stated on the face thereof) shall be dated the
same date as such Current Interest Bond, but each substitute
bond so delivered on or after such first scheduled interest
payment date shall be dated as of the interest payment date
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preceding the date on which such substitute bond is de-
livered, unless such substitute bond is 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
Current Interest Bond for which it is being exchanged has
not been paid, then such substitute bond shall be dated as
of the date to which such interest has been paid in full.
On each substitute bond issued in exchange for or replace-
ment of any Bond or Bonds issued under this Ordinance there
shall be printed thereon a Paying Agent/Registrar's Authen-
tication Certificate, in the form hereinafter set forth. An
authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such substitute bond, date
such substitute bond in the manner •set forth above, and
manually sign and date such Certificate, and no such substi-
tute bond shall be deemed to be issued or outstanding unless
such Certificate is so executed. The Paying Agent/Registrar
promptly shall cancel all Bonds surrendered for exchange or
replacement. No additional ordinances, orders, or resolu-
tions need be passed or adopted by the City Council or any
other body or person so as to accomplish the foregoing
exchange or replacement of any Bond or portion thereof, and
the Paying Agent/Registrar 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 with lithographed or steel
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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 exchange or replacement of any Bonds as
aforesaid is hereby imposed upon the Paying Agent/Registrar,
and, upon the execution of said Paying Agent/Registrar's
Authentication Certificate, the exchanged or replaced bond
shall be valid, incontestable, and enforceable in the same
manner and with the same effect as the Bonds which origi-
nally were delivered pursuant to this Ordinance, approved by
the Attorney General, and registered by the Comptroller of
Public Accounts. Neither the City nor the Paying Agent/Reg-
istrar shall be required (1) to issue, transfer, or exchange
any Bond during a period beginning at the opening of busi-
ness 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 Bond so selected for redemption in whole when such
redemption is scheduled to occur within 30 calendar days.
(e) All Bonds issued in exchange or replacement of any
other Bond or portion thereof, (i) shall be issued in fully
registered form, without interest coupons, with the princi-
pal of and interest on such Bonds to be payable only to the
registered owners thereof, (ii) may be redeemed prior to
their scheduled maturities, (iii) may be transferred and
assigned, (iv) may be exchanged for other Bonds, (v) shall
have the characteristics, (vi) shall be signed and sealed,
and (vii) the principal of and interest on the Bonds shall
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be payable, all as provided, and in the manner required or
indicated, in the FORM OF BOND set forth in this Ordinance.
(f) The City shall pay all of the Paying
Agent/Registrar's reasonable and customary fees and charges
for making transfers and exchanges of Bonds, but the regis-
tered owner of any Bond requesting such transfer shall pay
any taxes or other governmental charges required to be paid
with respect thereto. In addition, the City hereby cove-
nants with the registered owners of the Bonds that it will
(i) pay the reasonable and standard or customary fees and
charges of the Paying Agent/Registrar for its services with
respect to the payment of the principal of and interest on
the 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 Bonds solely to the extent above
provided, and with respect to the exchange of Bonds solely
to the extent above provided.
(g) The City covenants with the registered owners of
the Bonds that at all times while the Bonds are outstanding
the City will provide a competent and legally qualified
bank, trust company, financial institution, or other agency
to act as and perform the,services of Paying Agent/Registrar
for the 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 Agent/Registrar. In the event that the entity at
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any time acting as Paying Agent/Registrar (or its successor
by merger, acquisition, or other method) should resign or
otherwise cease to act as such, the City covenants that
promptly it will appoint a competent and legally qualified
national or state banking institution which shall be a
corporation organized and doing business under the laws of
the United States of America or of any state, authorized
under such laws to exercise trust powers, subject to super-
vision or examination by federal or state Authority, and
whose qualifications substantially are similar to the
previous Paying Agent/Registrar to act as Paying Agent/Reg-
istrar under this Ordinance. Upon any change in the Paying
Agent/Registrar, the previous Paying Agent/Registrar prompt-
ly shall transfer and deliver the registration books (or a
copy thereof), along with all other pertinent books and
records relating to the Bonds, to the new Paying
Agent/Registrar designated and appointed by the City. Upon
any change in the Paying Agent/Registrar, the City promptly
will cause a written notice thereof to be sent by the new
Paying Agent/Registrar to each registered owner of the
Bonds, by United States Mail, postage prepaid, which notice
also shall give the address of the new Paying Agent/Regis-
trar. By accepting the position and performing as such,
each Paying Agent/Registrar shall be deemed to have agreed
to the provisions of this Ordinance, and a certified copy of
this Ordinance shall be delivered to each Paying
Agent/Registrar.
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6. The form of all Bonds, including the form of the
Comptroller's Registration Certificate to accompany the
Bonds on the initial delivery thereof, the form of Paying
Agent/Registrar's Authentication Certificate, and the Form
of Assignment to be printed on each of the Bonds, shall be,
respectively, substantially as follows, with such appropri-
ate variations, omissions, or insertions as are permitted or
required by this Ordinance.
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT AND REFUNDING BOND
SERIES 1987
[FORM OF FIRST TWO PARAGRAPHS
OF CURRENT INTEREST BOND]
NO. R -
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
December 1, 1987
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF
CORPUS CHRISTI, TEXAS (the "Issuer"), hereby promises to pay
to , or to the registered
assignee hereof (either being hereinafter called the "regis-
tered owner") the principal amount of
and to pay interest thereon, from the original issue date of
this Bond specified above, to the date of its scheduled
maturity or the date of its redemption prior to scheduled
maturity, at the rate of interest per annum specified above,
with said interest being payable on May 1, 1988, and
19
semiannually on each November 1 and May 1 thereafter, except
that if the Paying Agent/Registrar's Authentication Certif-
icate appearing on the face of this Bond is dated later than
May 1, 1988, such interest is payable semiannually on each
November 1 and May 1 following such date.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable
in lawful money of the United States of America, 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 prior to maturity, at the principal
corporate trust office of MBank Corpus Christi, N.A., Corpus
Christi, Texas, which is the "Paying Agent/Registrar" for
this Bond. The payment of interest on this Bond shall be
made by the Paying Agent/Registrar to the registered owner
hereof as shown by the Registration Books kept by the Paying
Agent/Registrar at the close of business on the 15th 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, first-class postage
prepaid, on each such interest payment date, to the regis-
tered owner hereof at its address as it appears on the
Registration Books kept by the Paying Agent/Registrar, as
hereinafter described, or by such other method, acceptable
20
J
to the Paying Agent/Registrar, requested by, and at the risk
and expense of, the registered owner. The Issuer covenants
with the registered owner of this Bond that no later than
each principal payment and/or interest payment date for this
Bond it will make available to the Paying Agent/Registrar
from the Interest and Sinking Fund as defined by the
ordinance authorizing the Bonds (the "Ordinance") the
amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the
Bonds, when due.
[FORM OF FIRST TWO PARAGRAPHS
OF CAPITAL APPRECIATION BOND]
NO. CR -
INTEREST RATE MATURITY DATE
MATURITY
AMOUNT
CUSIP NO.
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF
CORPUS CHRISTI, TEXAS (the "Issuer"), hereby promises to pay
to , or the
registered assignee hereof (either being hereinafter called
the "registered owner") the Maturity Amount specified above,
representing the principal amount hereof and accrued and
compounded interest hereon. Interest shall accrue on the
principal amount hereof from the initial date of delivery
hereof to yield at maturity the interest rate per annum
specified above, compounded semiannually on May 1 and
November 1 of each year, commencing May 1, 1988.
21
THE MATURITY AMOUNT of this Bond is payable in lawful
money of the United States of America, without exchange or
collection charges. The Maturity Amount of this Bond shall
be paid to the registered owner hereof upon presentation and
surrender of this Bond at maturity, at the principal corpo-
rate trust office of MBank Corpus Christi, N.A., Corpus
Christi, Texas, which is the "Paying Agent/Registrar" for
this Bond, and shall be drawn by the Paying Agent/Registrar
on, and solely from, funds of the Issuer required to be on
deposit with the Paying Agent/Registrar for such purpose as
hereinafter provided, payable to the registered owner
hereof, 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
on or before the Maturity Date for this Bond it will make
available to the Paying Agent/Registrar, from the Interest
and Sinking Fund as defined by the ordinance authorizing the
Bonds (the "Ordinance"), the amounts required to provide for
the payment, in immediately available funds of the Maturity
Amount, when due.
[FORM OF REMAINDER OF BOND]
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 forth at this place.
*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
22
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 payment was due.
*THIS BOND is one of a Series of Bonds of like tenor
and effect except as to number, principal amount, interest
rate, maturity, option of redemption, and method of payment
of interest, dated December 1, 1987, authorized in
accordance with the Constitution and laws of the State of
Texas, aggregating in principal amount $40,200,484.55, being
$25,250,484.55 in principal amount for the purpose of
refunding certain bonds of the outstanding bonds of the City
secured by a pledge of ad valorem taxes, and being
$14,950,000 in principal amount for the purpose of providing
funds for various permanent improvements, and is comprised
of (i) Bonds in the aggregate principal amount of
$16,575,484.55 that pay interest only at maturity (the
"Capital Appreciation Bonds") and (ii) Bonds in the aggre-
gate principal amount of $23,625,000 that pay interest
semiannually until maturity or redemption prior to maturity
(the "Current Interest Bonds").
[THE FOLLOWING PARAGRAPHS ARE ONLY TO BE INSERTED
IN THE CURRENT INTEREST BOND]
*ON NOVEMBER 1, 1997, or on any date thereafter, the
Current Interest Bonds of this Series maturing on November
23
1, 1998 and thereafter may be redeemed prior to their
scheduled maturities, at the option of the Issuer, with
funds derived from any available and lawful source, as a
whole, or in part (provided that a portion of a Current
Interest Bond may be redeemed only in an integral multiple
of $5,000), at par and accrued interest to the date fixed
for redemption. The years of maturity of the Current
Interest Bonds called for redemption at the option of the
Issuer prior to stated maturity shall be selected by the
Issuer. The Current Interest 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
redemption, (a) 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 mail, first-class postage
prepaid, addressed to each such registered owner at his
address shown on the Registration Books of the. Paying
Agent/Registrar and (b) notice of such redemption shall be
published one (1) time in a financial journal or publication
of general circulation in the United States of America
carrying as a regular feature notices of municipal bonds
called for redemption, provided, however, that the failure
to send, mail, or receive such notice described in (a)
above, or any defect therein or in the sending or mailing
thereof, shall not affect the validity or effectiveness of
the proceedings for the redemption of any Bond, and the
24
Resolution provides that the publication of notice as
described in (b) above shall be the only notice actually
required in connection with or as a prerequisite to the
redemption of any Bonds. By the'date fixed for any such
redemption due provision shall be made by the Issuer with
the Paying Agent/Registrar for the payment of the required
redemption price for this Bond or the portion hereof which
is to be so redeemed, plus accrued interest thereon to the
date fixed for redemption. If such written notice of
redemption is given, and if due provision for such payment
is made, all as provided above, this Bond, or the portion
hereof which is to be so redeemed, thereby automatically
shall be redeemed prior to its scheduled maturity, and shall
not bear interest after the date fixed for its redemption,
and shall not be regarded as being outstanding except for
the right of the registered owner to receive the redemption
price plus accrued interest to the date fixed for 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 redemptions of principal
of this Bond or any portion hereof. If a portion of any
Bond shall be redeemed a substitute Bond or 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 aggregate principal amount equal to the unredeemed
portion thereof, will be issued to the registered owner upon
25
the surrender thereof for cancellation, at the expense of
the Issuer, all as provided in the Ordinance.
[THE FOLLOWING PARAGRAPH IS ONLY TO BE INSERTED
IN THE CAPITAL APPRECIATION BOND]
*THE CAPITAL APPRECIATION BONDS of which this Bond is
one may not be redeemed prior to their scheduled maturities.
*ALL BONDS OF THIS SERIES are issuable solely as fully
registered bonds, without interest coupons, in the denomina-
tion in the case of Current Interest Bonds) or maturity
amount (in the case of Capital Appreciation Bonds) of any
integral multiple of $5,000. As provided in the Ordinance,
this Bond, or any unredeemed portion hereof, may, at the
request of the registered owner or the assignee or assignees
hereof, be assigned, transferred, and exchanged for a like
aggregate principal amount (in the case of Current Interest
Bonds) or maturity amount (in the case of Capital Apprecia-
tion Bonds) of fully registered bonds, without interest
coupons, payable to the appropriate registered owner,
assignee, or assignees, as the case may be, having the same
maturity date, and bearing (or accruing) interest at the
same rate, in any denomination or denominations (in the case
of Current Interest Bonds) or maturity amount or amounts (in
the case of Capital Appreciation Bonds) in any integral
multiple of $5,000 as requested in writing by the appropri-
ate registered owner, assignee, or assignees, as the case
may be, upon surrender of this Bond to the Paying
Agent/Registrar for cancellation, all in accordance with the
form and procedures set forth in the Ordinance. Among other
26
requirements for such assignment and transfer, this Bond
must be presented and surrendered to the Paying Agent/Reg-
istrar, together with proper instruments of assignment, in
form and with guarantee of signatures satisfactory to the
Paying Agent/Registrar, evidencing assignment of this Bond
or any portion or portions hereof in any integral multiple
of $5,000 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 Assign-
ment printed or endorsed on this Bond may be executed by the
registered owner to evidence the assignment hereof, but such
method is not exclusive, and other instruments of assignment
satisfactory to the Paying Agent/Registrar may be used to
evidence the assignment of this Bond or any portion or
portions hereof from time to time by the registered owner.
The Issuer shall pay the Paying Agent/Registrar's reasonable
standard or customary fees and charges for transferring and
exchanging any Bond or portion thereof. In any circum-
stance, any taxes or governmental charges required to be
paid with respect thereto shall be paid by the one request-
ing such assignment, transfer, or exchange as a condition
precedent to the exercise of such privilege. In any cir-
cumstance, neither the Issuer nor the Paying Agent/ Reg-
istrar shall be required (1) to make any transferor ex-
change 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
27
the day of such mailing, or (2) to transfer or exchange any
bonds so selected for redemption when such redemption is
scheduled to occur within 30 calendar days.
*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
it promptly will appoint a competent and legally qualified
substitute therefor, and promptly will cause written notice
thereof to be mailed to the registered owners of the Bonds.
*IN ADDITION TO ALL OTHER RIGHTS, the holders of this
series of Bonds shall be subrogated to all pertinent and
necessary rights of the holders of the obligations being
refunded thereby.
*IT IS HEREBY CERTIFIED AND RECITED that the issuance
of this Bond, and the series of which it is a part, is duly
authorized, issued and delivered in accordance with the
Constitution and laws of the State of Texas; that all acts,
conditions and things required to be done precedent to and
in the issuance of this series of bonds, and of this Bond,
have been properly done and performed and have happened in
regular and due time, form and manner as required by law;
and that ad valorem taxes, upon all taxable property in said
City, necessary to pay the interest on and principal of this
bond, and the series of which it is a part, as such interest
comes due, and such principal matures, have been pledged for
such purpose, within the limit prescribed by law.
28
*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 Ordinance is
duly recorded and available for inspection in the official
minutes and records of the governing body 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.
IN WITNESS WHEREOF, this Bond has been signed by the
printed or lithographed facsimile signature of the Mayor of
said Issuer, attested by the printed or lithographed facsim-
ile signature of the City Secretary, and the official seal
of the Issuer has been duly affixed to, or impressed, or
printed, or lithographed, on this Bond.
ATTEST:
(facsimile sianaturel (facsimile signatureL
City Secretary Mayor
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued
under the provisions of the Ordinance described on the face
of this Bond; and that this Bond has been issued 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 originally
was approved by the Attorney General of the State of Texas
29
and registered by the Comptroller
State of Texas.
Dated:
of Public Accounts of the
Paying Agent/Registrar
By
Authorized Representative
* FORM OF ASSIGNMENT:
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns
and transfers unto
Please insert Social Security or Taxpayer
Identification Number of Transferee
/
/
(Please print or typewrite name and address, 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
books kept for registration thereof,
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.
on the
with full power of
NOTICE: The signature above
must correspond with the name
of the Registered Owner as it
appears upon the front of this
Bond in every particular,
without alteration or enlarge-
ment or any change whatsoever.
30
**
(FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE BONDS UPON INITIAL DELIVERY THEREOF)
OFFICE OF COMPTROLLER .
REGISTER NO.
STATE OF TEXAS
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 obliga-
tion 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, Texas
Comptroller of Public Accounts of
the State of Texas
(SEAL)
NOTE TO PRINTER:
*is to be on reverse side of bond
**I not to be on bond
There shall also included on the form of Capital Apprecia-
tion Bond a compounding schedule in the form of such sched-
ule attached to this Ordinance as Schedule I.
7. (a) That a special fund or account, to be desig-
nated the "City of Corpus Christi, Texas Interest and
Sinking Fund" is hereby created and shall be established and
maintained by said City at its official depository bank.
Said Interest and Sinking Fund shall be kept separate and
31
apart from all other funds and accounts of said City, and
shall be used only for paying the interest on and principal
of the Bonds. All taxes levied and collected for and on
account of the Bonds shall be deposited, as collected, to
the credit of said Interest and Sinking Fund. During each
year while any of the Bonds are outstanding and unpaid, the
City Council of said City shall compute and ascertain the
rate and amount of ad valorem tax, based on the latest
approved tax rolls of said City, with full allowances being
made for tax delinquencies and costs of tax collections,
which will be sufficient to raise and produce the money
required to pay the interest on the Bonds as such interest
comes due, and to provide a sinking fund to pay the prin-
cipal of the Bonds as such principal matures, but never less
than 2% of the original principal amount of the Bonds as a
sinking fund each year. Said rate and amount of ad valorem
tax is hereby ordered to be levied and is hereby levied
against all taxable property in said City for each year
while any of the Bonds are outstanding and unpaid, and said
ad valorem tax shall be assessed and collected each such
year and deposited to the credit of the aforesaid Interest
and Sinking Fund. Said ad valorem taxes necessary to pay
the interest on and principal of the Bonds, as such interest
comes due, and such principal matures, are hereby pledged
for such purpose, within the limit prescribed by law.
(b) There is hereby appropriated from available moneys
in the City's General Fund an amount sufficient to pay
32
principal and interest on the Bonds on May 1, 1988 and said
amount shall be deposited in the Interest and Sinking Fund
herein created.
8. (a) In the event any outstanding Bond is damaged,
mutilated, lost, stolen, or destroyed, the Paying
Agent/Registrar shall cause to be printed, executed, and
delivered, a new bond of the same principal amount, maturi-
ty, and interest rate, as the damaged, mutilated, lost,
stolen, or destroyed Bond, in replacement for such Bond in
the manner hereinafter provided.
(b) Application for replacement of damaged, mutilated,
lost, stolen, or destroyed 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 City and to the Paying Agent/Registrar such
security or indemnity as may be required by them to save
each of them harmless from any loss or damage with respect
thereto. Also, in every case of loss, theft, or destruction
of a 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 Bond,
the applicant shall surrender to the Paying Agent/Registrar
for cancellation the Bond so damaged or mutilated.
(c) Notwithstanding the foregoing provisions of this
Section, in the event any such Bond shall have matured, and
no default has occurred which is then continuing in the
33
payment of the principal of, redemption premium, if any, or
interest on the Bond, the City may authorize the payment of
the same (without surrender thereof except in the case of a
damaged or mutilated Bond) instead of issuing a replacement
Bond, provided security or indemnity is furnished as above
provided in this Section.
(d) Prior to the issuance of any replacement bond, the
Paying Agent/Registrar shall charge the owner of such 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
Bond is lost, stolen, or destroyed shall constitute a
contractual obligation of the City whether or not the lost,
stolen, or destroyed 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 Bonds duly issued under this Ordinance.
(e) In accordance with Section 6 of Vernon's Ann. Tex.
Civ. St. Art. 717k-6, this Section of this Ordinance shall
constitute authority for the issuance of any such replace-
ment bond without necessity of further action by the govern-
ing 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, subject to the
conditions imposed by this Section 8, and the Paying Agent/
Registrar shall authenticate and deliver such bonds in the
form and manner and with the effect, as provided in Section
34
5(d) of this Ordinance for Bonds issued in exchange for
other Bonds.
9. That the Mayor of the City is hereby authorized to
have control of the Bonds and all necessary records and
proceedings pertaining to the Bonds pending their delivery
and their investigation, examination and approval by the
Attorney General of the State of Texas, and their registra-
tion by the Comptroller of Public Accounts of the State of
Texas. Upon registration of the 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 Bonds, and the
seal of said Comptroller shall be impressed, or placed in
facsimile, on each such certificate.
10. (a) That the Bonds are hereby sold and shall be
delivered to Texas Commerce Bank National Association and
Dean Witter Capital Markets, the underwriters shown in the
Purchase Contract of even date herewith, for a total
purchase price of $39,557,276.80, plus any accrued interest
on the Current Interest Bonds to the date of delivery,
pursuant to the terms and provisions of said Purchase
Contract.
(b) That the City Manager of the City is hereby
authorized and directed to execute and deliver and the City
Secretary of the City is hereby authorized and directed to
attest said Purchase Contract, and all appropriate officials
of the City are authorized to take such additional and
35
further actions as shall be contemplated in or required by
said Purchase Contract in order to consummate the issuance
and delivery of the Bonds. It is hereby officially found,
determined, and declared that the terms of this sale are the
most advantageous reasonably obtainable. The Bonds shall
initially be registered in the name of Texas Commerce Bank
National Association or its designee.
11. That is is specifically found and determined by
the City that it is advisable to refund the Refunded obliga-
tions in order to restructure the City's existing bonded
indebtedness by extending the maturities thereof, thereby
enabling the City to proceed with its capital improvements
program in an efficient and effective manner.
12. (a) The Issuer will not take any action which
would adversely affect the exemption from federal income
taxation of the interest paid on the Bonds, including
without limitation any action that would permit any of the
Bonds to be treated as "private activity bonds" within the
meaning of section 141 of the Code, or as "federally
guaranteed" within the meaning of section 149(b) of the
Code, and will take, or require to be taken, such acts as
may be reasonably within its ability and as may from time to
time be required under applicable law or regulation to
continue to exempt from federal income taxation the interest
on the Bonds, including the preparation and filing of any
statements or information reports required to be filed by
36
the Issuer in order to maintain the tax-exempt status of the
interest on the Bonds.
(b) The Issuer has not taken, has no present intention
of taking any action and knows of no action taken or
intended which would cause interest on the Bonds to be
includable in the gross income of any bondholders for
federal income tax purposes.
13. (a) The Issuer hereby establishes a Rebate Fund.
Such Fund shall be for the sole benefit of the United States
of America and shall not be subject to the claim of any
other person, including without limitation the bondholders.
The Rebate Fund is established for the purpose of compliance
with section 148 of the Code.
(b) At the close of each "Bond Year", the Issuer shall
compute the amount of "Excess Earnings", if any, for the
period beginning on the date of delivery of the Bonds and
ending at the close of such "Bond Year" and transfer an
amount equal to the difference, if any, between the amount
then in the Rebate Fund and the Excess Earnings so computed.
The term "Bond Year" means with respect to the Bonds each
one-year period ending on the anniversary of the date of
delivery of the Bonds. If, at the close of any Bond Year,
the amount in the Rebate Fund exceeds the amount that would
be required to be paid to the United States of America under
paragraph (d) below if the Bonds had been paid in full, such
excess may be transferred from the Rebate Fund and paid to
the Issuer.
37
(c) In general, "Excess Earnings" for any period of
time means the sum of
(i) the excess of --
(A) the aggregate amount earned during such
period of time on all "Nonpurpose Obligations"
(including gains on the disposition of such
Obligations) in which "Gross Proceeds" of the
issue are invested (other than amounts attribut-
able to an excess described in this subparagraph
(c)(i)), over
(B) the amount that would have been earned
during such period of time if the "Yield" on such
Nonpurpose Obligations (other than amounts
attributable to an excess described in this
subparagraph (c)(i)) had been equal to the yield
on the issue, plus
(ii) any income during such period of time
attributable to the excess described in subparagraph (c)(i)
above.
"Excess Earnings" will not include amounts, if any, which
need not be taken into account under the special rules of
section 148(f)(4)(A) and (B) of the Code relating to bona
fide debt service funds and the six-month temporary invest-
ment period. The terms "Nonpurpose Obligations", "Gross
Proceeds" and "Yield" shall have the meanings prescribed by
section 148 of the Code and shall be applied in the manner
prescribed in such section.
38
(d) The Issuer shall pay to the United States of
America at least once every five years an amount that
ensures that at least 90 percent of the Excess Earnings from
the date of delivery of the Bonds to the close of the period
for which the payment is being made will have been paid.
The Issuer shall pay to the United States of America not
later than 60 days after the Bonds have been paid in full
100 percent of the amount then required to be paid under
section 148(f) of the Code as a result of Excess Earnings.
(e) The Issuer shall keep such records as will enable
the Issuer to fulfill its responsibilities under this
section and section 148(f) of the Code and shall retain such
records for at least six years following the final payment
of principal and interest on the Bonds.
(f) The Issuer will not use any portion of the
proceeds of the Bonds directly or indirectly to acquire
"higher yielding investments", or to replace funds which
were used directly or indirectly to acquire "higher yielding
investments". The term "higher yielding investments" means
any investment property (as defined in section 148(b)(2) of
the Code) which produces a Yield over the term of the issue
which is materially higher than the Yield on the issue (as
defined above). The foregoing limitation on higher yielding
investments shall not apply to --
(i)
proceeds of the Bonds invested for a
reasonable temporary period of three years or less
39
until such proceeds are needed for the purpose for
which the Bonds are issued,
(ii) amounts invested in a bona fide debt service
fund if the gross earnings on such fund are less than
$100,000 in any Bond Year, and
(iii) amounts in any reasonably required reserve or
replacement fund which are (a) funded with the proceeds
of the Bonds, and (b) not in excess of ten percent of
the proceeds of the Bonds.
(g) The Issuer covenants to restrict the use of the
proceeds of the Bonds in such manner and to such extent, as
may be necessary, so that the Bonds will not constitute
arbitrage bonds under section 148 of the Code and, to the
extent applicable, section 149(d) of the Code (relating to
advance refundings). Any authorized representative of the
Issuer having responsibility with respect to the issuance of
the Bonds is authorized and directed, alone or in conjunc-
tion with any other official, employee or consultant of the
Issuer to give an appropriate certificate on behalf of the
Issuer, for inclusion in the transcript of proceedings for
the Bonds, setting forth the facts, estimates and circum-
stances and reasonable expectations pertaining to section
148 of the Code and, to the extent applicable, section
149(d) of the Code.
(h) The requirements of this Section are subject to,
and shall be interpreted in accordance with section 148 of
the Code.
40
14. (a) That the City hereby approves the insuring of
the Capital Appreciation Bonds by the municipal bond insur-
ance company named in the Official Statement approved by
resolution adopted concurrently herewith. The City hereby
authorizes the printer of the Bonds to print on the Capital
Appreciation Bonds any statement of insurance thereto
furnished by said municipal bond insurance company.
(b) In the event that the principal and/or interest
due on the Bonds shall be paid by said municipal bond
insurance company pursuant to the terms of its policy, the
Bonds shall remain outstanding for all purposes, not be
defeased or otherwise satisfied and not be considered paid
by the City, and all covenants, agreements and other
obligations of the Ci
ty to the' registered owners shall continue to exist and
shall run to the benefit of said municipal bond insurance
company, and said municipal bond insurance company shall be
subrogated to the rights of such registered owners.
15 That all ordinances and resolutions or parts
thereof in conflict herewith are hereby repealed.
16. That this Ordinance shall take effect and be in
full force and effect from and after the date of its pass-
age, and it is so ordained.
17. It is hereby officially found and determined that
the meeting at which this ordinance was passed was open to
the public, and public notice of the time, place and purpose
of said meeting was given, all as required by Article
41
6252-17, Vernon's Annotated Texas Civil Statutes, as amend-
ed.
18 That upon written request of the Mayor, copy
attached, to find and declare an emergency due to the
immediate need for the efficient and effective administra-
tion of City affairs by authorizing the issuance of the
above-mentioned Bonds, such finding of an emergency is made
and declared requiring suspension of the Charter rule as to
consideration and voting upon ordinances or resolutions at
three regular meetings so that this ordinance is passed and
shall take effect upon first reading.
PASSED AND APPROVED this 3rd day of December, 1987.
Ma or, Cis= of Corpus Christi, Texas
Ci y Atto ney,'City, of Corpus
Christi, Texas
0 FORM AND LEGALITY:
42
SCHEDULE I
ACCRETION 0l-Mav-2000 01 -Nov -2001 Ot-Mav-2002 01 -Mor -2003 01 -Nor -2004 01 -Nov -2003
DATES 9.001 9.101 8.201 8.301 8.351 3.401
12 -Dec -97 1,623.55 1,663.70 1,514.90 1,376.00 1,239.05 1,150.23
01-04y88 1,925.51 1,711.22 1,559.16 1,417,31 1,296.30 1,184.67
01 -Nov -98 1,950.56 1,781.04 1,623.00 1.476.34 1,350.63 1,234.43
01-84y-09 2,028.50 1,853.17 1,689.63 1,331.61 1,407.02 1,296,27
01 Nor 09 1,109.72 1,920.23 1,738.91 1,601.42 1.465.76 1.340.30
01-M4y-90 2,194.11 2,006.32 1,831.02 1,667.88 1,526.96 1,396.59
0l -Nov -90 2,281.87 2,087.58 1.906.09 1,737.09 1,590.71 1.455.21
01 -Nay -91 2,373.17 2,172.12 1,984.24 1,807.10 1,657.12 1,516.37
01 -Mor -91 2,468.07 2,260.09 2,065.60 1391.2* 1,726.31 1,580.05
01 -May -92 2,566.80 2,351.63 2,130.29 1,962.46 1,798.38 1,646.41
01 -Nov -92 2,660.41 2.444.81 2,231.45 2,043.90 1,873.46 1,715.54
01.947-93 2,776.23 2,145.91 2,330.22 2,128.72 1,951.68 1,787.62
01 -Nov -93 2,887.30 2.647.00 2,425.76 0,217.07 2,033.16 1,862.70
01'4919-94 3,002.79 2,736.37 2,525.22 2,309.07 2,118.05 1,940.93
01ivy -94 3.122.90 2,864.08 2,620.75 2,404.90 2,204.49 2,022.45
01-4941-93 3,247.82 2,204.15 2,736.53 2,504.70 2,298.60 2,107.39
01-909.95 3,377.13 3,105.01 2,840.73 2,400.65 2,394,56 2,195.90
01.941-94 3,512.84 3,230.76 2,963.53 2,716.91 2,494.54 2,298.13
02-949-96 3,453.35 3,341.61 3,007.11 2,929.66 2,590.60 2,304.23
01-14y-97 1,799 49 1,497.75 3,213.69 2,947.09 2,707.10 2,404.37
01-999-97 3,951.17 3,639.41 3,345.45 3,049.40 2,820.20 2,580.71
01-491y-99 4,109.53 3,704.81 3,482.61 3,196.79 2,937.95 2,697.44
01-49-98 4,273.91 3,940.18 3,625.40 3,329.44 3,060.68 2,810.73
01 -Nay -9l 4,444.86 4,011.75 3,774.04 3,441.61 3,190.38 2,929.78 ,
91 -Nov -99 4,622.64 4,241.79 3,920.77 3,611.52 3,321.54 3,031.79
01.149-2001 4,817.56 4,438.56 4,099.85 3,761.40 3,460.17 3,171.97
01-4ov-2010 5,000.08 4,619.32 4,257.54 3,917.50 3,604.83 3,313.33
01-441.2011 4,805.36 4,432.18 4,080.07 3,755.13 3,452.69
01-94v-2011 5,000.01 4,613.81 4,249.39 3.911.90 3,597.71
01'949'2112 4,8U2.91 4,425.74 1,815.21 3,741.81
01-118w2102 7,000.00 4,600.41 4,245.37 3,904.26
01.449-2003 4.900.70 6,422.41 6,078.32
01-'66.2813 5.008.00 4,617 76 4,711 90
01-819-2004 4,799.61 1,119.41
01-946-2004 5.080.00 1,605.03
01-109-2003 1,191.44
0110v-2005 5,000.00
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
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 3rd
day of December, 1987, authorizing the issuance of
$40,200,484.55 City of Corpus Christi, Texas General
Improvement and Refunding Bonds, Series 1987, 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
3rd day of December, 1987.
>),,,.g
City Secretary, City of Corpus
Christi, Texas
(SEAL)
Corpus Christi, Texas
,3n0L- day of , 1981
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance
or resolution, an emergency exists requiring suspension of the Charter rule
as to consideration and voting upon ordinances or resolutions at three
regular meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance or resolution finally on the date it is introduced,
or at the present meeting of the City Council.
Respectfully, - Respectfully,
Council Members
The above ordinance was
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
'fn-rnk Mcndcr
Clif Moss
Bill Pruet
Mary Rhodes
Mary Pat Slavik
Linda Strong
99.045.01
MAJOR
THE CITY OF CORPUS CHRISTI, TEXAS
passed by the following vote: