HomeMy WebLinkAbout022437 ORD - 12/12/1995ORDINANCE NO. 022437
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF ITS GENERAL
IMPROVEMENT BONDS, SERIES 1995-B, OF THE CITY OF CORPUS
CHRISTI, TEXAS, AND PROVIDING 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; DECLARING AN EMERGENCY; AND
ORDAINING OTHER MATTERS RELATED THERETO.
WHEREAS, it is deemed advisable and to the best interest of
the City, that bonds authorized at an election held in the City on
April 5, 1986 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
4-5-86 515,890,000 Wastewater 515,890,000 S 0
4-5-86 5,560,000 Drainage & Ston Sewer 4,840,000 0
4-5-86 4,000,000 Aquarium 4,000,000 0
4-5-86 9,900,000 Public Health & Safety 9,500,000 0
4-5-86 4,785,000 Airport 3,105,000 0
4-5-86 14,875,000 Parks & Recreation 12,600,000 835,000
4-5-86 49.935.000 Streets 38.195.000 8.550.000
5104,945,000 588,130,000 59,385,000
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
1. That the bonds of the City to be called "City of Corpus
Christi, Texas General Improvement Bonds, Series 1995-B" (the
"Bonds"), are hereby authorized to be issued in an aggregate
principal amount of $9,385,000, and shall be issued under and by
virtue of the Constitution and laws of the State of Texas and the
Charter of the City for the purpose of providing funds for
permanent improvements, to -wit: for the purpose of providing
$835,000 for improving lands for park and recreation facilities,
including; various neighborhood parks; seawall and T -head
022437
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improvements; renovation and expansion of existing recreation
facilities; development of unimproved park land (existing acreage);
and other park improvements; and $6,570,000 for improving the
streets of the City including Waldron Road, from Compton Road to
Purdue Road, including drainage improvements; 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.
2. (a) That the Bonds shall be dated December 1, 1995, shall
be in the denomination of $5,000 each, or any integral multiple
thereof, shall be numbered consecutively from R-1 upward, and shall
mature on the maturity date, in each of the years, and in the
amounts, respectively, as set forth in the following schedule:
MATURITY DATE: MARCH 1
YEARS AMOUNTS ($) YEARS AMOUNTS (S)
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
$300,000
300,000
325,000
350,000
350,000
375,000
400,000
425,000
450,000
475,000
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2007
2008
2009
2010
2011
2012
2013
2014
2015
$500,000
525,000
550,000
600,000
625,000
650,000
700,000
725,000
760,000
(b) The Bonds scheduled to mature during the years,
respectively, set forth below shall bear interest at the following
rates per annum:
Bonds maturing in the year 1997, 6.75%
Bonds maturing in the year 1998, 6.75%
Bonds maturing in the year 1999, 6.75%
Bonds maturing in the year 2000, 6.75%
Bonds maturing in the year 2001, 6.75%
Bonds maturing in the year 2002, 6.75%
Bonds maturing in the year 2003, 6.75%
Bonds maturing in the year 2004, 6.75%
Bonds maturing in the year 2005, 4.75%
Bonds maturing in the year 2006, 4.80%
Bonds maturing in the year 2007, 4.90%
Bonds maturing in the year 2008, 5.00%
Bonds maturing in the year 2009, 5.00%
Bonds maturing in the year 2010, 5.10%
Bonds maturing in the year 2011, 5.10%
Bonds maturing in the year 2012, 5.125%
Bonds maturing in the year 2013, 5.125%
Bonds maturing in the year 2014, 5.20%
Bonds maturing in the year 2015, 5.20%
Said interest shall be payable to the registered owner of any such
Bond in the manner provided and on the dates stated in the FORM of
BOND set forth in this Ordinance.
3. That the Bonds shall be issued as fully registered bonds,
without coupons.
4. That the City reserves the right to redeem the Bonds
maturing on or after March 1, 2006, in whole or in part, on March
1, 2005, or on any interest payment date thereafter, for the
principal amount thereof plus accrued interest thereon to the date
fixed for redemption. The years of maturity of the Bonds called
for redemption at the option of the City prior to stated maturity
shall be selected by the City. The Bonds or portions thereof
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redeemed within a maturity shall be selected by lot or other method
by the Paying Agent/Registrar (hereinafter defined).
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 regular 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 effectiveness 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 notice of redemption is given, and if due provision for such
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payment 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 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 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.
Each redemption notice, whether required in the FORM OF BOND
or otherwise by this Ordinance, shall contain a description of the
Bonds to be redeemed including the complete name of the Bonds, the
Series, the date of issue, the interest rate, the maturity date,
the CUSIP number, if any, the Bond numbers, the amounts called of
each Bond, the publication and mailing date for the notice, the
date of redemption, the redemption price, the name of the Paying
Agent/Registrar and the address at which the Bond may be redeemed
including a contact person and telephone number. All redemption
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payments made by the Paying Agent/Registrar to the registered
owners of the Bonds shall include a CUSIP number relating to each
amount paid to such registered owner.
5. (a) The City shall keep or cause to be kept at the
designated corporate trust office in Dallas, Texas (the "Designated
Trust Office") of Texas Commerce Bank National Association (the
"Paying Agent/Registrar"), or such other bank, trust company,
financial institution, or other agency named in accordance with the
provisions of (g) of this Section hereof, books or records of the
registration and transfer of the Bonds (the "Registration Books"),
and the City hereby appoints the Paying Agent/Registrar as its
registrar and transfer agent to keep such books or records and make
such transfers and registrations 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. The City Manager or the designee thereof is
hereby authorized to execute a "Paying Agent/Registrar Agreement"
in such form as is approved by the City Attorney. 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 at
the Designated Trust Office during regular business hours of the
Paying Agent/Registrar, but otherwise the Paying Agent/Registrar
shall keep the Registration Books confidential and, unless other-
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wise required by law, shall not permit their inspection by
any other entity. Registration of each Bond may be transferred 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 assign-
ment, 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 denomination
to the assignee or assignees thereof, and the right of such as-
signee or assignees to have such bond or any such portion thereof
registered in the name of such assignee or assignees. 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 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/Reg-
istrar 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 bond to the extent of the sum
or sums so paid.
(c) The City hereby further appoints the Paying Agent/Reg-
istrar 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 unredeemed
principal amount thereof, may, upon surrender of such bond at the
Designated 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
authorized 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 assignees, 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 denomination 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 re-
quested in writing by such registered owner or such assignee or
assignees, in an aggregate principal amount equal to the unredeemed
principal amount of any Bond or Bonds so surrendered, 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
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its scheduled maturity as provided herein, a substitute bond or
bonds having the same maturity date, bearing interest at the same
rate, in the denomination or denominations of any integral multiple
of $5,000 at the 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 surrender thereof for
cancellation. If any Bond or portion thereof is assigned and
transferred, each bond issued in exchange therefor shall have the
same maturity date and bear 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,
however, that any Bond delivered in exchange for or replacement of
another Bond prior to the first scheduled interest payment date on
the Bonds (as stated on the face thereof) shall be dated the same
date as such 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 preceding the date on which such
substitute bond is delivered, 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
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the time of delivery of any substitute bond the interest on the
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 replacement of any Bond or Bonds issued under this
Ordinance there shall be printed thereon a Paying Agent/Registrar's
Authentication 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 substi-
tute bond in the manner set forth above, and manually sign and date
such Certificate, and no such substitute 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
resolutions need be passed or adopted by the City Council or any
other body or person so as to accomplish
replacement of
Agent/Registrar
any Bond or portion
shall provide for the
delivery of the substitute
and said bonds shall be of
bonds in the
the foregoing exchange or
thereof, and the Paying
printing, execution, and
manner prescribed herein,
type composition printed on paper 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 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 Authen-
tication Certificate, the exchanged or replaced bond shall be
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valid, incontestable, and enforceable in the same manner and with
the same effect as the Bonds which originally 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/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 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 principal 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
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 registered 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
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hereby covenants 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 Ordi-
nance, 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 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 supervision or examination by federal or state authority, and
whose qualifications substantially are similar to the previous
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Paying Agent/Registrar to act as Paying Agent/Registrar under this
Ordinance. Upon any change in the Paying Agent/Registrar, the
previous Paying Agent/Registrar promptly 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/Registrar. 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.
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 appropriate variations, omissions, or
insertions as are permitted or required by this Ordinance.
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If
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT BOND
SERIES 1995-B
NO. R- $
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
December 1, 1995
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 "registered 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 September 1, 1996, and semiannually on each March 1 and
September 1 thereafter, except that if the Paying Agent/Registrar's
Authentication Certificate appearing on the face of this Bond is
dated later than September 1, 1996, such interest is payable semi-
annually on each March 1 and September 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 presentation and surrender of this
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Bond at maturity or upon the date fixed for its redemption prior to
maturity, at the designated corporate trust office in Dallas, Texas
(the "Designated Trust Office") of Texas Commerce Bank National
Association (the "Paying Agent/Registrar"). 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 registered 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 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.
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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 where the Designated
Trust Office of 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 (the "Bonds"), dated as
of the Original Issue Date specified above, authorized in
accordance with the Constitution and laws of the State of Texas,
aggregating in principal amount $9,385,000, for the purpose of
providing $835,000 for improving lands for park and recreation
facilities, including; various neighborhood parks; seawall and T -
head improvements; renovation and expansion of existing recreation
facilities; development of unimproved park land (existing acreage);
and other park improvements; and $6,570,000 for improving the
streets of the City including Waldron Road, from Compton Road to
Purdue Road, including drainage improvements; 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
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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.
*ON MARCH 1, 2005, or on any interest payment date thereafter,
the Bonds of this Series maturing on and after March 1, 2006 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 Bond may be re-
deemed 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 Bonds called for redemption at the option of the Issuer
prior to stated maturity shall be selected by the Issuer. The
Bonds or portions thereof redeemed within a maturity shall be se-
lected at random and by lot by the Paying Agent/Registrar.
*AT LEAST 30 days prior to the date fixed for any such redemp-
tion, (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
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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 Ordinance provides that the publication of notice as de-
scribed 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 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 pro-
vided 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 denomina-
tions in any integral multiple of $5,000, at the written request of
the registered owner, and in aggregate principal amount equal to
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the unredeemed portion thereof, will be issued to the registered
owner upon the surrender thereof for cancellation, at the expense
of the Issuer, all as provided in the Ordinance.
*ALL BONDS OF THIS SERIES are issuable solely as fully
registered bonds, without interest coupons, in the denomination 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 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 interest at
the same rate, in any denomination or denominations in any integral
multiple of $5,000 as requested in writing by the appropriate
registered owner, assignee, or assignees, as the case may be, upon
surrender of this Bond to the Paying Agent/Registrar at its
Designated Trust Office for cancellation, all in accordance with
the form and procedures set forth in the Ordinance. Among other
requirements for such assignment and transfer, this Bond must be
presented and surrendered to the Paying Agent/Registrar, 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
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form of Assignment 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 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 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.
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*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.
*IT IS HEREBY CERTIFIED AND RECITED that the issuance of this
Bond, and the series of which it is a part, is duly voted to the
extent required by law, 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.
IN WITNESS WHEREOF, this Bond has been signed with the manual
or facsimile signature of the Mayor of the City, attested by the
manual or facsimile signature of the City Secretary, and the
official seal of the Issuer has been duly affixed to, impressed or
placed in facsimile, on this Bond.
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ATTEST:
(signature) (signature)
City Secretary, Mayor,
City of Corpus Christi, Texas City of Corpus Christi, Texas
(SEAL)
R
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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 conversion 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 and registered by the Comptroller of
Public Accounts of the State of Texas.
Dated:
Paying Agent/Registrar
By
Authorized Representative
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* 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
kept for registration thereof, with full
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.
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within Bond on the books
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.
**
(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 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, Texas
Comptroller of Public Accounts of
the State of Texas
(SEAL)
NOTE TO PRINTER:
*¶s to be on reverse side of bond
**¶ not to be on bond
7. That a special fund or account, to be designated 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. Said Interest and Sinking Fund shall be kept
separate and 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. Any accrued interest derived for the sale of the Bonds
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if T
shall be deposited to the credit of said Interest and Sinking Fund.
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 principal of the Bonds as such principal
matures, but never less than 2°s 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.
There shall be appropriated from the General Fund to deposit into
the Interest and Sinking Fund moneys as may be necessary to pay the
first scheduled interest payment on the Bonds.
8. (a) That any Bond and the interest thereon shall be
deemed to be paid, retired, and no longer outstanding (a "Defeased
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Bond") within the meaning of this Ordinance, except to the extent
provided in subsection (d) of this Section 8, when payment of the
principal of such Bond, plus interest thereon to the due date
(whether such due date be by reason of maturity or otherwise)
either (i) shall have been made or caused to be made in accordance
with the terms thereof, or (ii) shall have been provided for on or
before such due date by irrevocably depositing with or making
available to the Paying Agent/Registrar for such payment (1) lawful
money of the United States of America sufficient to make such
payment or (2) Government Obligations which mature as to principal
and interest in such amounts and at such times as will insure the
availability, without reinvestment, or sufficient money to provide
for such payment, and when proper arrangements have been made by
the City with the Paying Agent/Registrar for the payment of its
services until all Defeased Bonds shall have become due and
payable. At such time as a Bond shall be deemed to be a Defeased
Bond hereunder, as aforesaid, such Bond and the interest thereon
shall no longer be secured by, payable from, or entitled to the
benefits of, the ad valorem taxes herein levied and the Pledged
Revenues herein pledged as provided in this Ordinance, and such
principal and interest shall be payable solely from such money or
Government Obligations.
(b) Any moneys so deposited with the Paying Agent/Registrar
may at the written direction of the City also be invested in
Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from such Government
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Obligations received by the Paying Agent/Registrar which is not
required for the payment of the Bonds and interest thereon, with
respect to which such money has been so deposited, shall be turned
over to the City, or deposited as directed in writing by the City.
(c) The term "Government Obligations" as used in this Section
8, shall mean 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, which
may be United States Treasury obligations such as its State and
Local Government Series, which may be in book -entry form.
(d) Until all Defeased Bonds shall have become due and
payable, the Paying Agent/Registrar shall perform the services of
Paying Agent/Registrar for such Defeased Bonds the same as if they
had not been defeased, and the City shall make proper arrangements
to provide and pay for such services as required by this Ordinance.
9. (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, maturity, 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 destruction of
a Bond, the applicant for a replacement bond shall furnish to the
City and to the Paying Agent/Registrar such security or indemnity
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R
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 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 fur-
nished 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.
R
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(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 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, subject to the conditions imposed by this Section
9, and the Paying Agent/Registrar shall authenticate and deliver
such bonds in the form and manner and with the effect, as provided
in Section 5(d) of this Ordinance for Bonds issued in exchange for
other Bonds.
10. That the City Manager 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 registration 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.
11. (a) That the sale of the Bonds to Merrill Lynch & Co.,
and associates (the "Purchaser"), at the price of par and accrued
interest, if any, to the date of delivery, which was the lowest and
best bid received by the City, is hereby authorized, ratified and
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confirmed. One Bond in the principal amount maturing on each
maturity date as set forth in Section 2 hereof shall be delivered
to the Purchaser, registered in the name of Merrill Lynch, Pierce,
Fenner & Smith, Inc., and the Purchaser shall have the right to
exchange such bonds as provided in Section 5 hereof without cost.
(b) That the Official Notice of Sale, the Official Bid Form
and the Official Statement prepared by the City in reference to the
sale of the Bonds, in substantially the forms attached to this
Ordinance, are hereby accepted and approved.
12. That the City Manager or the designee thereof is hereby
authorized to execute on or before the date of delivery of the
Bonds any instruments necessary to obtain a municipal bond
insurance policy in support of the Bonds, including, but not
limited to, any insurance commitment issued by a municipal bond
insurance company which agrees to issue a municipal bond new issue
insurance policy in support of the Bonds.
13. (a) Definitions. As used in this Section, the
following terms have the meanings ascribed to such terms below:
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR" means each person whom the SEC or its staff has
determined to be a nationally recognized municipal securities
information repository within the meaning of the Rule from time to
time.
"Rule" means SEC Rule 15c2-12, as amended from time to
time.
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"SEC" means the United States Securities and Exchange
Commission.
"SID" means any person designated by the State of Texas
or an authorized department, officer, or agency thereof as, and
determined by the SEC or its staff to be, a state information
depository within the meaning of the Rule from time to time.
(b) Annual Reports. (i) The City shall provide annually to
each NRMSIR and any SID, within six months after the end of each
Year ending in or after 1996, financial information and operating
data with respect to the City of the general type included in the
final Official Statement authorized by Section 11 of this
Ordinance, being the information described in Exhibit A hereto.
Any financial statements so to be provided shall be (1) prepared in
accordance with the accounting principles described in Exhibit A
hereto, or such other accounting principles as the City may be
required to employ from time to time pursuant to state law or
regulation, and (2) audited, if the City commissions an audit of
such statements and the audit is completed within the period during
which they must be provided. If the audit of such financial
statements is not complete within such period, then the City shall
provide unaudited financial statements by the required time, and
shall provide audited financial statements for the applicable
fiscal year to each NRMSIR and any SID, when and if the audit
report on such statements become available.
(ii) If the City changes its fiscal year, it will notify each
NRMSIR and any SID of the change (and of the date of the new fiscal
-32-
year end) prior to the next date by which the City otherwise would
be required to provide financial information and operating data
pursuant to this Section. The financial information and operating
data to be provided pursuant to this Section may be set forth in
full in one or more documents or may be included by specific
reference to any document (including an official statement or other
offering document, if it is available from the MSRB) that
theretofore has been provided to each NRMSIR and any
with the SEC.
(c) Material Event Notices.
and either each NRMSIR or the MSRB,
SID or
filed
The City shall notify any SID
in a timely manner, of any of
the following events with respect to the Bonds, if such event is
material within the meaning of the federal securities laws:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves
reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting
financial difficulties;
5. Substitution of credit or liquidity
their failure to perform;
providers, or
6. Adverse tax opinions or events affecting the tax-
exempt status of the Bonds;
7. Modifications to rights of holders of the Bonds;
8. Bond calls;
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9. Defeasances;
10. Release, substitution, or sale of property securing
repayment of the Bonds; and
11. Rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB,
in a timely manner, of any failure by the City to provide financial
information or operating data in accordance with subsection (b) of
this Section by the time required by such subsection.
(d) Limitations, Disclaimers, and Amendments. (i) The City
shall be obligated to observe and perform the covenants specified
in this Section for so long as, but only for so long as, the City
remains an "obligated person" with respect to the Bonds within the
meaning of the Rule, except that the City in any event will give
notice of any deposit made in accordance with this Ordinance or
applicable law that causes Bonds no longer to be outstanding.
(ii) The provisions of this Section are for the sole benefit
of the holders and beneficial owners of the Bonds, and nothing in
this Section, express or implied, shall give any benefit or any
legal or equitable right, remedy, or claim hereunder to any other
person. The City undertakes to provide only the financial
information, operating data, financial statements, and notices
which it has expressly agreed to provide pursuant to this Section
and does not hereby undertake to provide any other information that
may be relevant or material to a complete presentation of the
1 1 t
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City's financial results, condition, or prospects or hereby
undertake to update any information provided in accordance with
this Section or otherwise, except as expressly provided herein.
The City does not make any representation or warranty concerning
such information or its usefulness to a decision to invest in or
sell Bonds at any future date.
(iii) UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE
HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN
CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM
ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS
PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT
AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON
ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
(iv) No default by the City in observing or performing its
obligations under this Section shall comprise a breach of or
default under the Ordinance for purposes of any other provision of
this Ordinance. Nothing in this Section is intended or shall act
to disclaim, waive, or otherwise limit the duties of the City under
federal and state securities laws.
(v) The provisions of this Section may be amended by the City
from time to time to adapt to changed circumstances that arise from
a change in legal requirements, a change in law, or a change in the
identity, nature, status, or type of operations of the City, but
only if (1) the provisions of this Section, as so amended, would
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have permitted an underwriter to purchase or sell Bonds in the
primary offering of the Bonds in compliance with the Rule, taking
into account any amendments or interpretations of the Rule since
such offering as well as such changed circumstances and (2) either
(a) the holders of a majority in aggregate principal amount (or any
greater amount required by any other provision of this Ordinance
that authorizes such an amendment) of the outstanding Bonds consent
to such amendment or (b) a person that is unaffiliated with the
City (such as nationally recognized bond counsel) determined that
such amendment will not materially impair the interest of the
holders and beneficial owners of the Bonds. If the City so amends
the provisions of this Section, it shall include with any amended
financial information or operating data next provided in accordance
with subsection (b) of this Section an explanation, in narrative
form, of the reason for the amendment and of the impact of any
change in the type of financial information or operating data so
provided. The City may also amend or repeal
continuing disclosure agreement if the SEC
applicable provision of the Rule or a court
enters judgment that such provisions of the
the provisions of this
amends or repeals the
of final jurisdiction
Rule are invalid, but
only if and to the extent that the provisions of this sentence
would not prevent an underwriter from lawfully purchasing or
selling Bonds in the primary offering of the Bonds.
14. The City covenants to take any action to assure, or
refrain from any action which would adversely affect, the treatment
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of the Bonds as obligations described in section 103 of the
Internal Revenue Code of 1986, as amended (the "Code"), the
interest on which is not includable in the "gross income" of the
holder for purposes of federal income taxation. In furtherance
thereof, the City covenants as follows:
(a) to take any action to assure that no more than 10
percent of the proceeds of the Bonds or the projects financed
therewith (less amounts deposited to a reserve fund, if any)
are used for any "private business use," as defined in section
141(b) (6) of the Code or, if more than 10 percent of the
proceeds are so used, that amounts, whether or not received by
the City, with respect to such private business use, do not,
under the terms of this Ordinance or any underlying
arrangement, directly or indirectly, secure or provide for the
payment of more than 10 percent of the debt service on the
Bonds, in contravention of section 141(b) (2) of the Code;
(b) to take any action to assure that in the event that
the "private business use" described in subsection (a) hereof
exceeds 5 percent of the proceeds of the Bonds or the projects
financed therewith (less amounts deposited into a reserve
fund, if any) then the amount in excess of 5 percent is used
for a "private business use" which is "related" and not
"disproportionate," within the meaning of section 141(b)(3) of
the Code, to the governmental use;
(c) to take any action to assure that no amount which is
greater than the lesser of $5,000,000, or 5 percent of the
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proceeds of the Bonds (less amounts deposited into a reserve
fund, if any) is directly or indirectly used to finance loans
to persons, other than state or local governmental units, in
contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would
otherwise result in the Bonds being treated as "private
activity bonds" within the meaning of section 141(b) of the
Code;
(e) to refrain from taking any action that would result
in the Bonds being "federally guaranteed" within the meaning
of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of
the Bonds, directly or indirectly, to acquire or to replace
funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b) (2) of the
Code) which produces a materially higher yield over the term
of the Bonds, other than investment property acquired with --
(1) proceeds of the Bonds invested for a reasonable
temporary period of 3 years or less or, in the case of a
refunding bond, for a period of 30 days or less until
such proceeds are needed for the purpose for which the
bonds are issued,
(2) amounts invested in a bona fide debt service
fund, within the meaning of section 1.148-1(b) of the
Treasury Regulations, and
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(3) amounts deposited in any reasonably required
reserve or replacement fund to the extent such amounts do
not exceed 10 percent of the proceeds of the Bonds;
(g) to otherwise restrict the use of the proceeds of the
Bonds or amounts treated as proceeds of the Bonds, as may be
necessary, so that the Bonds do not otherwise contravene the
requirements of section 148 of the Code (relating to
arbitrage) and, to the extent applicable, section 149(d) of
the Code (relating to advance refundings); and
(h) to pay to the United States of America at least once
during each five-year period (beginning on the date of
delivery of the Bonds) an amount that is at least equal to 90
percent of the "Excess Earnings," within the meaning of
section 148(f) of the Code and to 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 as
a result of Excess Earnings under section 148(f) of the Code.
For purposes of the foregoing clauses (a) and (b), the City
understands that the term "proceeds" includes "disposition
proceeds" as defined in the regulations promulgated by the U.S.
Department of the Treasury and, in the case of a refunding bond,
the term proceeds includes transferred proceeds (if any) and
proceeds of the refunded bonds expended prior to the date of
issuance of the Bonds. It is the understanding of the City that
the covenants contained herein are intended to assure compliance
with the Code and any regulations or rulings promulgated by the
-39-
U.S. Department of the Treasury pursuant thereto. In the event
that regulations or ruling are hereafter promulgated which modify
or expand provisions of the Code, as applicable to the Bonds, the
City will not be required to comply with any covenant contained
herein to the extent that such failure to comply, in the opinion of
nationally -recognized bond counsel, will not adversely affect the
exemption from federal income taxation of interest on the Bonds
under section 103 of the Code. In the event that regulations or
rulings are hereafter promulgated which impose additional
requirements which are applicable to the Bonds, the City agrees to
comply with the additional requirements to the extent necessary, in
the opinion of nationally -recognized bond counsel, to preserve the
exemption from federal income taxation of interest on the Bonds
under section 103 of the Code. In furtherance of such intention,
the City hereby authorizes and directs the Mayor, the City Manager
and the Director of Finance to execute any documents, certificates
or reports required by the Code, and to make such elections on
behalf of the City which may be permitted by the Code as are
consistent with the purpose for the issuance of the Bonds.
In order
"Rebate Fund"
benefit of the
to facilitate compliance with clause (h) above, a
is hereby established by the City for the sole
United States of America, and such Fund shall not be
subject to the claim of any other person,
limitation the bondholders. The Rebate Fund is
additional purpose of compliance with section
-40-
r
including without
established for the
148 of the Code.
15. The findings and preambles set forth in this Ordinance
are hereby incorporated into this Ordinance and made a part hereof
for all purposes.
16. That all ordinances and resolutions or parts thereof in
conflict herewith are hereby repealed.
17. That this Ordinance shall take effect and be in full
force and effect from and after the date of its passage, and it is
so ordained.
18. 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 Chapter 551, Texas Government Code,
as amended.
19. That on request of the Mayor to find and declare an
emergency due to the immediate need for the efficient and effective
administration of City affairs by approving the sale and issuance
of the above-mentioned Bonds, such finding of an emergency is
hereby specifically made and declared, requiring suspension of the
Charter rule as to consideration and voting upon ordinances or
resolutions at two regular meetings so that this Ordinance be
passed and take effect upon first reading.
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PASSED AND APPROVED this 12th day of December, 1995.
Mayor, Cit Corpus Christi, Texas
ATTEST:
City "cretary, City of lorpus
Christi, Texas
APPROVED
AS TO FORM AND LEGALITY:
Cit ttorney, Ci of Corpus
Chi+isti, Texas
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022437
Exhibit A
to
Ordinance
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 13 of
this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect
to the City to be provided annually in accordance with such Section
are as specified (and included in the Appendix or under the
headings of the Official Statement referred to) below:
The information of the general type included in Appendix A to
the Official Statement under the headings "Financial Information",
"Ad Valorem Tax Rates", "Property Taxes", "General Information",
"Investments", "Budgeting and Capital Planning", "Comparative
Condensed Summary of Revenues", and "Comparative Summary of
Expenditures".
Appendix C to the Official Statement, "Combined Financial
Statements of the City of Corpus Christi, Texas for the Fiscal Year
Ended July 31, 1994".
Accounting Principles
The accounting principles referred to in such Section are
the accounting principles described in the notes to the financial
statements referred to in paragraph 1 above.
022437
T
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 12th
day of December, 1995, authorizing the issuance of General
Improvement Bonds, Series 1995-B, 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
Chapter 551, Texas Government Code.
EXECUTED UNDER MY HAND AND SEAL of said City, this the
12th day of December, 1995.
(SEAL)
AO
City Secretary, City !f Corpus
Christi, Texas
022437
CERTIFICATE FOR ORDINANCE
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
the
the
On this the 12th day of December, 1995, the City Council of
City of Corpus Christi, Texas convened in Regular Meeting, with
following members of said Council present, to -wit:
Mary Rhodes
Betty Jean Longoria,
John Longoria,
Dr. Jack Best,
Dr. David McNichols,
Melody Cooper,
Edward A. Martin,
Betty Black,
Tony Heldenfels,
Juan Garza,
James Bray,
Rosie G. Vela,
Armando Chapa,
Mayor
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 Manager Juan Garza presented for the consideration of the
Council an ordinance authorizing the sale of general improvement
bonds. The ordinance was read by the City Secretary. The motion
to suspend the Charter rule as to consideration and voting on
ordinances at two regular meetings and to pass the ordinance was
carried by the following vote.
AYES: All members of the City Council shown
present above voted "Aye", except Dr.
David McNichols.
NAYS: Dr. David McNichols.
The Mayor announced that the ordinance had been passed. The
ordinance is as follows:
T
7
022437
OFFICIAL BID FORM
$9,385,000
CITY OF CORPUS CHRISTI, TEXAS
General Improvement Bonds, Series 1995-B
The City of Corpus Christi
1201 Leopard
Corpus Christi, Texas 78401
Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement, dated
November 15, 1995, which are made a part of this proposal by references, we hereby submit
the following bid for $9,385,000 City of Corpus Christi, Texas General Improvement Bonds,
Series 1995-B, dated December 1, 1995.
For your legally issued Bonds, as described in said Official Statement, we will pay you
par and accrued interest from date of the Bonds to the date of delivery to us, plus a cash
premium of $ — — for Bonds maturing and bearing interest as follows:
$300,000 March 1, 1997 ).7.5 %
300,000 March 1, 1998 %
325,000 March 1, 1999 %
350,000 March 1, 2000 %
350,000 March 1, 2001 %
375,000 March 1, 2002 %
400,000 March 1, 2003%
425,000 March 1, 2004 4:15 %
450,000 March 1, 2005 9. i5 %
475,000 March 1, 2006 `1,50 %
$500,000 March 1, 2007 `1 90 %
525,000 March 1, 2008 5 ho%
550,000 March 1, 2009 .S 0
600,000 March 1, 2010 77715-70
625,000 March 1, 2011 5
650,000 March 1, 2012
700,000 March 1, 2013 %
725,000 March 1, 2014 .5-20 %
760,000 March 1, 2015 5 20%
Interest in accordance with the above bid is:
Gross Interest Cost
Less: Premium
Net Interest Cost
Effective Interest Rate
3u,. ZS-
-o —
3lcGS
Cashier's Check of the Frost Bank: Austin, Tx. in the
amount of $187,700 which represents our Good Faith Deposit (is attached hereto) or (has been
made available to you prior to the opening of this bid), and is submitted in accordance with the
terms as set forth in the "Official Notice of Sale". Upon delivery of the Bonds, said check shall
be returned to the Purchaser.
We are having the Bonds of the following maturities , , insured
by c at a premium of / 8.00 (excluding fees paid to
ratiCk ci$ s .
Merrill Lynch, Pierce Fenner & Smith
The initial Bonds shall be registered in the name of (Syndicate Inc.
Manager). We will advise the Dallas, Texas office of the Texas Commerce Bank National
Association, the Paying Agent/Registrar, on forms to be provided by the Paying
Agent/Registrar, of our registration instructions at least five business days prior to the date
set for initial delivery of the Bonds. We will not ask the Paying Agent/Registrar to accept any
registration instructions after this five day period.
We agree to accept delivery of and make payment for the Bonds in immediately
available funds at Texas Commerce Bank National Association, San Antonio, Texas, not later
than 10:00 a.m., San Antonio, Texas time on January 16, 1996, or thereafter on the date the
Bonds are tendered for delivery, pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute and deliver to the City, by the date of
initial delivery of the Bonds, a certificate relating to the "issue price" of the Bonds in the form
and to effect attached to or accompanying the Official Notice of Sale, with such changes
thereto as may be acceptable to the City.
We agree to provide in writing the initial reoffering price to the Financial Advisor not
later than the close of the next business day following award of the Bonds.
Respectively submitted,
Merrill Lynch & Co.
(SEE ATTACHED LIST OF MEMBERS)
By
�I la, OfI
"1
ACCEPTANCE CLA E
(Authorized Repr sentative)
The above and foregoing bid is hereby in all things accepted by the City of Corpus Christi,
Texas, subject to and in accordance with the Official Notice of Sale and Official Bid Form, this
the 12th day of December, 1995.
ATTEST:
1, 1/
City Secretary, City of Corpus C �isti, Texas
�1�
ayor, ty o us Christi, Texas
Return Good Faith Check is hereby acknowledged: Firm:
By:
Date: