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ORDINANCE NO. 637-9-85
AN ORDINANCE authorizing the issuance of "CITY OF
ALLEN, TEXAS, WATERWORKS AND SEWER SYSTEM
REVENUE BONDS, SERIES 1985"; specifying the
terms and features of said Bonds; pledging
the net revenues of the City's combined
Waterworks and Sanitary.Sewer System to the
payment of the principal of and interest on
said Bonds; enacting provisions incident and
related to the issuance, payment, security
and delivery of said Bonds, including the
approval and distribution of an Official
Statement pertaining thereto; and providing
an effective date.
WHEREAS, pursuant to elections held within the City of
Allen on June 30, 1979, and June 22, 1985, revenue bonds pay-
able from and secured by a pledge of the net revenues of the
City's Waterworks and Sanitary Sewer" System were approved and
authorized to be issued by the City Council, a summary of the
amount or revenue bonds voted, the respective purposes for
which the same can be issued, amounts heretofore issued and
amounts remaining to be issued being as follows:
AND WHEREAS, this Council hereby finds and determines
that revenue bonds in the total principal amount of $2,800,000
should be issued and sold at this time for the purpose of mak-
ing permanent public improvements, to wit: $2,780,000 for
constructing improvements and extensions to the City's
Waterworks System; and $20,000 for constructing improvements
and extensions to the City's Sanitary Sewer System; and
WHEREAS, this Council further finds and determines
that the revenue bonds authorized herein can be issued on a
parity with the City's outstanding and unpaid revenue bonds
payable from and secured by a first lien on and pledge of the
net revenues of the City's combined Waterworks and Sanitary
Sewer System (hereinafter referred to and defined as "previ-
ously issued bonds") in that (i) the City is not now in default
as to any covenant, condition or obligation prescribed in the
AMOUNTS
AMOUNT
DATE
AMOUNT
HERETOFORE
BEING
UNISSUED
AUTHORIZED
AUTHORIZED
PURPOSE
ISSUED
ISSUED
BALANCE
6/30/79
$2,300,000
Water
Imp.
$1,100,000
$1,200,000
$ 0
& Ext.
6/30/79
700,000
Sewer
Imp.
298,000
20,000
382,000
& Ext.
6/22/85
3,840,000
Water
Imp.
0
1,580,000
2,260,000
0
& Ext.
6/22/85
900,000
Sewer
Imp.
0
0
900,000
& Ext.
AND WHEREAS, this Council hereby finds and determines
that revenue bonds in the total principal amount of $2,800,000
should be issued and sold at this time for the purpose of mak-
ing permanent public improvements, to wit: $2,780,000 for
constructing improvements and extensions to the City's
Waterworks System; and $20,000 for constructing improvements
and extensions to the City's Sanitary Sewer System; and
WHEREAS, this Council further finds and determines
that the revenue bonds authorized herein can be issued on a
parity with the City's outstanding and unpaid revenue bonds
payable from and secured by a first lien on and pledge of the
net revenues of the City's combined Waterworks and Sanitary
Sewer System (hereinafter referred to and defined as "previ-
ously issued bonds") in that (i) the City is not now in default
as to any covenant, condition or obligation prescribed in the
Ordinance No. 637-9-85 '
ordinances authorizing the issuance of the previously issued
bonds, (ii) each of the special Funds created for the payment
and security of the previously issued bonds contains the amount
of money now required to be on deposit therein, (iii) the City
can obtain a report of an accountant showing the net earnings
of the City's Waterworks and Sewer System for the 12 months'
period next preceding the adoption of this ordinance are equal
to at least 1 - 1/4 times the average annual principal and
interest requirement of all bonds to be secured by a first lien
on and pledge of the net revenues of said System after giving
effect to the issuance of the bonds herein authorized, (iv) the
bonds herein authorized shall mature on June 1 in each year and
(v) this ordinance shall provide for deposits to be made in the
special Funds created for the payment and security of the pre-
viously issued bonds and additional bonds issued on a parity
therewith of amounts sufficient to pay the principal of and
interest on the bonds herein authorized and to accumulate and
maintain a reserve equal to not less than the average annual
requirement for the payment of principal of and interest on all
bonds to be secured by a first lien on and pledge of the net
revenues of said System after giving effect to the issuance of
the bonds herein authorized to be issued and the additional
reserve amount required shall be accumulated within five years
and one month from the date of the adoption of this ordinance;
now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ALLEN, TEXAS:
SECTION 1: Authorization -Designation -Principal
Amount -Purpose. Revenue bonds of the City shall be and are
hereby authorized to be issued in the aggregate principal
amount of $2,800,000 to be designated and bear the title "City
of Allen, Texas, Waterworks and Sewer System Revenue Bonds,
Series 1985" (hereinafter referred to as the "Bonds"), for the
purpose of making permanent public improvements, to wit:
$2,780,000 for constructing improvements and extensions to the
City's Waterworks System; and $20,000 for constructing improve-
ments and extensions to the City's Sanitary Sewer System; in
conformity with the Constitution and laws of the State of
Texas, including Article 1111, et seq., V.A.T.C.S; and in ac-
cordance with authority conferred at the aforesaid elections.
SECTION 2: Fully Registered Obligations - Bond
Date - Authorized Denominations - Stated Maturities - Interest
Rates. The Bonds shall be issued as fully registered obliga-
tions only, shall be dated September 1, 1985 (the "Bond Date"),
shall be in denominations of $5,000 or any integral multiple
thereof (within a Stated Maturity), and shall become due and
payable on June 1 in each of the years and in principal amounts
(the "Stated Maturities") and bear interest at the rate(s) per
annum in accordance with the following schedule:
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Ordinance No. 637-9-85
Year of
Principal
Interest
Stated Maturity
Amount
Rate(s)
1987
$ 90,000
11.25 %
1988
105,000
11.25 %
1989
120,000
11.25 %
1990
130,000
11.25 %
1991
150,000
11.25 %
1992
155,000
11.25 %
1993
170,000
10.75 %
1994
195,000
8.80 %
1995
205,000
8.90 %
1996
235,000
9.00 %
1997
265,000
9.15 %
1998
295,000
9.30 %
1999
325,000
9.40 %
2000
360,000
9.00 %
The Bonds shall bear interest on the unpaid principal
amounts from the Bond Date at the rate(s) per annum shown above
in this Section (calculated on the basis of a 360 -day year of
twelve 30 -day months). Interest on the Bonds shall be payable
on June 1 and December 1 in each year, commencing June 1, 1986.
SECTION 3: Terms of Payment -Paying Agent/Registrar.
The principal of, premium, if any, and the interest on the
Bonds, due and payable by reason of maturity, redemption or
otherwise, shall be payable only to registered owners or hol-
ders of the Bonds (hereinafter called the "Holders") appearing
on the registration and transfer books (the "Security
Register") maintained by the Paying Agent/Registrar and the
payment thereof shall be in any coin or currency of the United
States of America, which at the time of payment is legal tender
for the payment of public and private debts, and shall be with-
out exchange or collection charges to the Holders.
The selection and appointment of MBank Dallas, N.A.,
Dallas, Texas,.to serve as Paying Agent/Registrar for the Bonds
is hereby approved and confirmed. The City covenants to main-
tain and provide a Paying Agent/Registrar at all times until
the Bonds are paid and discharged, and any successor Paying
Agent/Registrar shall be a bank, trust company, financial in-
stitution or other entity duly qualified and legally authorized
to serve as and perform the duties and services of Paying
Agent/Registrar. Upon any change in the Paying Agent/Registrar
for the Bonds, the City agrees to promptly cause a written
notice thereof to be sent to each Holder by United States Mail,
first class postage prepaid, which notice shall also give the
address of the new Paying Agent/Registrar.
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Ordinance No. 637-9-85
Principal of and premium, if any, on the Bonds, shall
be payable at the Stated Maturities or the redemption thereof,
only upon presentation and surrender of the Bonds to the Paying
Agent/Registrar at its principal office. Interest on the Bonds
shall be paid to the Holder whose name appears in the Security
Register at the close of business on the Record Date (the 15th
day of the month next preceding each interest payment date) and
shall be paid by the Paying Agent/Registrar (i) by check sent
United States Mail, first class postage prepaid, to the address
of the Holder recorded in the Security Register or (ii) by such
other method, acceptable to the Paying Agent/Registrar, re-
quested by, and at the risk and expense of, the Holder. If the
date for the payment of the principal of or interest on the
Bonds shall be a Saturday, Sunday, a legal holiday, or a day on
which banking institutions in the City where the Paying Agent/
Registrar is located are authorized by law or executive order
to close, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal
holiday, or day on which banking institutions are authorized to
close; and payment on such date shall have the same force and
effect as if made on the original date payment was due.
In the event of a non-payment of interest on a sched-
uled payment date, and for thirty (30) days thereafter, a new
record date for such interest payment (a "Special Record Date")
will be established by the Paying Agent/Registrar, if and when
funds for the payment of such interest have been received from
the City. Notice of the Special Record Date and of the sched-
uled payment date of the past due interest (which shall be 15
days after the Special Record Date) shall be sent at least five
(5) business days prior to the Special Record Date by United
States Mail, first class postage prepaid, to the address of
each Holder appearing on the Security Register at the close of
business on the last business day next preceding the date of
mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption.
The Bonds having Stated Maturities on and after June 1, 1996,
shall be subject to redemption prior to maturity, at the option
of the City, in whole or in part in principal amounts of $5,000
or any integral multiple thereof (and if within a Stated
Maturity by lot by the Paying Agent/Registrar), on June 1, 1995
or on any interest payment date thereafter, at the redemption
price of par plus accrued interest to the date of redemption.
(b) Exercise of Redemption Option. At least forty-
five (45) days prior to a redemption date for the Bonds (unless
a shorter notification period shall be satisfactory to the
Paying Agent/Registrar), the City shall notify the. Paying
Agent/Registrar of the decision to redeem Bonds, the principal
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Ordinance No. 637-9-85
amount of each Stated Maturity to be redeemed, and the date of
the redemption therefor. The decision of the City to exercise
the right to redeem Bonds shall be entered in the minutes of
the governing body of the City.
(c) Selection of Bonds for Redemption. If less than
all Outstanding Bonds of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/Registrar shall
select by lot the Bonds to be redeemed. If less than the en-
tire principal amount of a Stated Maturity is to be redeemed,
and there are multiple Holders of Bonds representing such
Stated Maturity, the Paying Agent/Registrar shall treat such
Bonds as representing the number of Bonds Outstanding which is
obtained by dividing the principal amount of such Bond by
$5,000.
(d) Notice of Redemption. Not less than thirty (30)
days prior to a redemption date for the Bonds, a notice of
redemption shall be sent by United States Mail, first class
postage prepaid, in the name of the City and at the City's
expense, to each Holder of a Bond to be redeemed in whole or in
part at the address of the Holder appearing on the Security
Register at the close of business on the business day next
preceding the date of mailing such notice, and any notice of
redemption so mailed shall be conclusively presumed to have
been duly given irrespective of whether received by the
Bondholder.
All notices of redemption shall (i) specify the date
of redemption for the Bonds, (ii) identify the Bonds to be
redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be redeemed,
(iii) state the redemption price, (iv) state that the Bonds, or
the portion of the principal amount thereof to be redeemed,
shall become due and payable on the redemption date specified,
and the interest thereon, or on the portion of the principal
amount thereof to be redeemed, shall cease to accrue from and
after the redemption date, and (v) specify that payment of the
redemption price for the Bonds, or the principal amount thereof
to be redeemed, shall be made at the principal office of the
Paying Agent/Registrar only upon presentation and surrender
thereof by the Bondholder. If a Bond is subject by its terms
to prior redemption and has been called for redemption and
notice of redemption thereof has been duly given or waived as
herein provided, such Bond (or the principal amount thereof to
be redeemed) shall become due and payable, and interest thereon
shall cease to accrue from and after the redemption date there-
for, provided moneys sufficient for the payment of such Bonds
(or of the principal amount thereof to be redeemed) at the then
applicable redemption price are held for the purpose of such
payment by the Paying Agent/Registrar.
Ordiance No. 637-9-85
SECTION.5: Registration - Transfer - Exchange of
Bonds - Predecessor Bonds. A Security Register relating to the
registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the
principal office of the Paying Agent/Registrar, as provided
herein and in accordance with the provisions of an agreement
with the Paying Agent/Registrar and such rules and regulations
as the Paying Agent/Registrar and the City may prescribe. The
Paying Agent/Registrar shall obtain, record, and maintain in
the Security Register the name and address of each and every
owner of the Bonds issued under and pursuant to the provisions
of this Ordinance, or if appropriate, the nominee thereof. Any
Bond may be transferred or exchanged for Bonds of other autho-
rized denominations by the Holder, in person or by his duly
authorized agent, upon surrender of such Bond to the Paying
Agent/Registrar for cancellation, accompanied by a written
instrument of transfer or request for exchange duly executed by
the Holder or by his duly authorized agent, in form satisfac-
tory to the Paying Agent/Registrar.
Upon surrender for transfer of any Bond at the princi-
pal office of the Paying Agent/Registrar, the Paying Agent/
Registrar shall register and deliver, in the name of the desig-
nated transferee or transferees, one or more new Bonds of
authorized denominations and having the same Stated Maturity
and of a like aggregate principal amount as the Bond or Bonds
surrendered for transfer.
At the option of the Holder, Bonds may be exchanged
for other Bonds of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like
aggregate principal amount as the Bonds surrendered for ex-
change, upon surrender of the Bonds to be exchanged at the
principal office of the Paying Agent/Registrar. Whenever any
Bonds are surrendered for exchange, the Paying Agent/Registrar
shall register and deliver new Bonds to the Holder requesting
the exchange.
All Bonds issued in any transfer or exchange of Bonds
shall be delivered to the Holders at the principal office of
the Paying Agent/Registrar, or sent by United States Mail,
first class postage prepaid to the Holders and, upon the deliv-
ery thereof, the same shall be valid obligations of the City,
evidencing the same obligation to pay, and entitled to the same
benefits under this Ordinance, as the Bonds surrendered in such
transfer or exchange.
All transfers or exchanges of Bonds pursuant to this
Section shall be made without expense or service charge to the
Holders, except as otherwise herein provided, and except that
Ordinance No. 637-9-85
the Paying Agent/Registrar shall require
requesting such transfer or exchange of
ernmental charges required to be paid
transfer or exchange.
payment by the Holders
any tax or other gov-
with respect to such
Bonds cancelled by reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Bonds," evidencing all or a portion, as the case
may be, of the same obligation to pay evidenced by the new Bond
or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term "Predecessor Bonds" shall
include any mutilated, lost, destroyed, or stolen Bond for
which a replacement Bond has been issued, registered and deliv-
ered in lieu thereof pursuant to Section 28 hereof and such new
replacement Bond shall be deemed to evidence the same obliga-
tion as the mutilated, lost, destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall
be required to issue or transfer to an assignee of a Holder any
Bond called for redemption, in whole or in part, within 45 days
of the date fixed for redemption of such Bond; provided, how-
ever, such limitation on transferability shall not be appli-
cable to an exchange by the Holder of an unredeemed balance of
a Bond called for redemption in part.
SECTION 6: Execution - Registration. The Bonds
shall be executed on behalf of the City by the Mayor under its
seal reproduced or impressed thereon and countersigned by the
City Secretary. The signature of said officers on the Bonds
may be manual or facsimile. Bonds bearing the manual or fac-
simile signatures of individuals who are or were the proper
officers of the City on the Bond Date shall be deemed to be
duly executed on behalf of the City, notwithstanding that such
individuals or either of them shall cease to hold such offices
at the time of delivery of the Bonds to the initial pur-
chaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in the
Bond Procedures Act of 1981, as amended.
No Bond shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any pur-
pose, unless there appears on such Bond either a certificate of
registration substantially in the form provided in Section 8C,
manually executed by the Comptroller of Public Accounts of the
State of Texas or his duly authorized agent, or a certificate
of registration substantially in the form provided in Section
8D, manually executed by an authorized officer, employee or
representative of the Paying Agent/Registrar, and either such
certificate upon any Bond duly signed shall be conclusive evi-
dence, and the only evidence, that such Bond has been duly
certified, registered and delivered.
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Ordinance No. 637-9-85
SECTION 7: Initial Bond(s). The Bonds herein
authorized shall be initially issued either (i) as a single
fully registered bond in the total principal amount of
$2,800,000 with principal installments to become due and pay-
able as provided in Section 2 hereof and numbered T-1, or (ii)
as fourteen (14) fully registered bonds, being one bond for
each year of maturity in the applicable principal amount and
denomination and to be numbered consecutively from T-1 and
upward (hereinafter called the "Initial Bond(s)") and, in
either case, the Initial Bond(s) shall be registered in the
name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds submitted to the Office of
the Attorney General of the State of Texas for approval, certi-
fied and registered -by the Office of the Comptroller of Public
Accounts of the State of Texas and delivered to the initial
purchaser(s). Any time after the delivery of the Initial
Bond(s), the Paying Agent/Registrar, pursuant to written in-
structions from the initial purchaser(s), or the designee
thereof, shall cancel the Initial Bond(s) delivered hereunder
and exchange therefor definitive Bonds of authorized denomina-
tions, Stated Maturities, principal amounts and bearing appli-
cable interest rates for transfer and delivery to the Holders
named at the addresses identified therefor; all pursuant to and
in accordance with such written instructions from the initial
purchaser(s), or the designee thereof, and such other informa-
tion and documentation as the Paying Agent/Registrar may rea-
sonably require.
SECTION 8: Forms. A. Forms Generally. The
Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Certificate of
Registration, and the form of Assignment to be printed on each
of the Bonds, shall be substantially in the forms set forth in
this Section with such appropriate insertions, omissions, sub-
stitutions, and other variations as are permitted or required
by this Ordinance and may have such letters, numbers, or other
marks of identification (including identifying numbers and
letters of the Committee on Uniform Securities Identification
Procedures of the American Bankers Association) and such leg-
ends and endorsements (including any reproduction of an opinion
of counsel) thereon as may, consistently herewith, be estab-
lished by the City or determined by the officers executing such
Bonds as evidenced by their execution. Any portion of the text
of any Bonds may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Bond.
The definitive Bonds shall be printed, lithographed,
or engraved or produced in any other similar manner, all as
determined by the officers executing such Bonds as evidenced by
their execution, but the Initial Bond(s) submitted to the
Attorney General of Texas may be typewritten or photocopied or
otherwise reproduced.
Ordinance No. 637-9-85
B.
REGISTERED
NO.
Form of Definitive Bond.
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF ALLEN, TEXAS, WATERWORKS AND SEWER
SYSTEM REVENUE BOND,
SERIES 1985
Bond Date:
September 1,
1985
Registered Owner:
Principal Amount:
REGISTERED
Interest Rate: Stated Maturity: CUSIP NO:
DOLLARS
The City of Allen (hereinafter referred to as the
"City"), a body corporate and political subdivision in the
County of Collin, State of Texas, for value received, hereby
promises to pay to the order of the Registered Owner named
above (herein referred to as the "Holder"), or the registered
assigns thereof, solely from the revenues hereinafter identi-
fied, on the Stated Maturity date specified above the Principal
Amount stated above (or so much thereof as shall not have been
paid upon prior redemption) and to pay interest on the unpaid
Principal Amount hereof from the Bond Date at the per annum
rate of interest specified above calculated on the basis of a
360 -day year of twelve 30 -day months; such interest being pay-
able on June 1 and December 1 of each year, commencing June 1,
1986. Principal of this Bond shall be payable to the Holder
hereof, upon presentation and surrender, at the principal of-
fice of the Paying Agent/Registrar executing the registration
certificate appearing hereon, or its successor. Interest shall
be payable to the Holder of this Bond (or one or more
Predecessor Bonds, as defined in the Ordinance hereinafter
referenced) whose name appears on the "Security Register" main-
tained by the Paying Agent/Registrar at the close of business
on the "Record Date", which is the 15th day of the month next
preceding each interest payment date. All payments of princi-
pal of, premium, if any, and interest on this Bond shall be in
any coin or currency of the United States of America which at
the time of payment is legal tender for the payment of public
and private debts and interest shall be paid by the Paying
Agent/Registrar by check sent United States Mail, first class
postage prepaid, to the address of the Holder recorded in the
Security Register or by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and ex-
pense of, the Holder.
Ordinance No. 637-9-85
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $2,800,000 (herein
referred to as the "Bonds") for the purpose of making permanent
public improvements, to wit: $2,780,000 for constructing im-
provements and extensions to the City's Waterworks System; and
$20,000 for constructing improvements and extensions to the
City's Sanitary Sewer System; under and in strict conformity
with the Constitution and laws of the State of Texas, including
Article 1111 et seq. V.A.T.C.S., and pursuant to an Ordinance
adopted by the governing body of the City (herein referred to
as the "Ordinance").
The Bonds maturing on and after June 1, 1996, may be
redeemed prior to their Stated Maturities, at the option of the
City, in whole or in part in principal amounts of $5,000 or any
integral multiple thereof (and if within a Stated Maturity by
lot by the Paying Agent/ Registrar), on June 1, 1995, or on any
interest payment date thereafter, at the redemption price of
par, together with accrued interest to the date of redemption,
and upon 30 days prior written notice being given by United
States Mail, first class postage prepaid, to Holders of the
Bonds to be redeemed, and subject to the terms and provisions
relating thereto contained in the Ordinance. If this Bond (or
any portion of the principal sum hereof) shall have been duly
called for redemption and notice of such redemption duly given,
then upon such redemption date this Bond (or the portion of the
principal sum hereof to be redeemed) shall become due and pay-
able, and interest thereon shall cease to accrue from and after
the redemption date therefor; provided moneys for the payment
of the redemption price and the interest on the principal
amount to be redeemed to the date of redemption are held for
the purpose of such payment by the Paying Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Bond, payment of the redemption price of such
principal amount shall be made to the Holder only upon presen-
tation and surrender of this Bond to the Paying Agent/Registrar
at its principal office and, there shall be issued, without
charge therefor, to the Holder hereof, a new Bond or Bonds of
like maturity and interest rate in any authorized denominations
provided in the Ordinance for the then unredeemed balance of
the principal sum hereof. If this Bond is called for redemp-
tion, in whole or in part, the City or the Paying Agent/
Registrar shall not be required to transfer this Bond to an
assignee of the Holder within 45 days of the redemption date
therefor; provided, however, such limitation on transferability
shall not be applicable to an exchange by the Holder of the
unredeemed balance hereof in the event of its redemption in
part.
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Ordinance No. 637-9-85
The Bonds are special obligations of the City, and,
together with the outstanding Previously Issued Bonds (identi-
fied and defined in the Ordinance), are payable solely from and
equally and ratably secured by a first lien on and pledge of
the Net Revenues (as defined in the Ordinance) of the City's
combined Waterworks and Sanitary Sewer System (the "System").
The Bonds do not constitute a legal or equitable pledge,
charge, lien or encumbrance upon any property of the City or
the System, except with respect to the Net Revenues. The
Holder hereof shall never have the right to demand payment of
this obligation out of any funds raised or to be raised by
taxation.
Subject to satisfying the terms and conditions pre-
scribed therefor, the City has reserved the right to issue
additional revenue obligations payable from and equally and
ratably secured by a parity lien on and pledge of the Net
Revenues of the System, in the same manner and to the same
extent as the Bonds.
Reference is hereby made to the Ordinance, a copy of
which is on file in the principal office of the Paying Agent/
Registrar, and to all of the provisions of which the Holder by
the acceptance hereof hereby assents, for definitions of terms;
the description of and the nature and extent of the security
for the payment of the Bonds; the properties constituting the
System; the Net Revenues pledged to the payment of the princi-
pal of and interest on the Bonds; the nature and extent and
manner of enforcement of the lien and pledge securing the pay-
ment of the Bonds; the terms and conditions for the issuance of
additional revenue obligations; the terms and conditions relat-
ing to the transfer or exchange of this Bond; the conditions
upon which the Ordinance may be amended or supplemented with or
without the consent of the Holders; the rights, duties, and
obligations of the City and the Paying Agent/Registrar; the
terms and provisions upon which the liens, pledges, charges and
covenants made therein may be discharged at or prior to the
maturity or redemption of this Bond, and this Bond deemed to be
no longer Outstanding thereunder; and for the other terms and
provisions contained therein. Capitalized terms used herein
have the same meanings assigned in the Ordinance.
This Bond, subject to certain limitations contained in
the Ordinance, may be transferred on the Security Register only
upon its presentation and surrender at the principal office of
the Paying Agent/Registrar, with the Assignment hereon duly
endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Paying Agent/Registrar duly exe-
cuted by, the Holder hereof, or his duly authorized agent.
When a transfer on the Security Register occurs, one or more
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Ordinance No. 637-9-85
new fully registered Bonds of the same Stated Maturity, of
authorized denominations, bearing the same rate of interest,
and of the same aggregate principal amount will be issued by
the Paying Agent/Registrar to the designated transferee or
transferees.
The City and the Paying Agent/Registrar, and any agent
of either, may treat the Holder hereof whose name appears on
the Security Register (i) on the Record Date as the owner en-
titled to payment of interest hereon, (ii) on the date of sur-
render of this Bond as the owner entitled to payment of princi-
pal hereof at its Stated Maturity or its redemption, in whole
or in part, and (iii) on any other date as the owner for all
other purposes, and neither the City nor the Paying Agent/
Registrar, or any agent of either, shall be affected by notice
to the contrary. In the event of non-payment of interest on a
scheduled payment date and for thirty (30) days thereafter, a
new record date for such interest payment (a "Special Record
Date") will be established by the Paying Agent/Registrar, if
and when funds for the payment of such interest have been re-
ceived from the City. Notice of the Special Record Date and of
the scheduled payment date of the past due interest (which
shall be 15 days after the Special Record Date) shall be sent
at least five (5) business days prior to the Special Record
Date by United States Mail, first class postage prepaid, to the
address of each Holder appearing on the Security Register at
the close of business on the last business day next preceding
the date of mailing of such notice.
It is hereby certified, recited, represented and cove-
nanted that the City is a body corporate and political subdivi-
sion duly organized and legally existing under and by virtue of
the Constitution and laws of the State of Texas; that the issu-
ance of the Bonds is duly authorized by law; that all acts,
conditions and things required to exist and be done precedent
to and in the issuance of the Bonds to render the same lawful
and valid obligations of the City have been properly done, have
happened and have been performed in regular and due time, form
and manner as required by the Constitution and laws of the
State of Texas, and the Ordinance; that the Bonds do not exceed
any constitutional or statutory limitation; and that due provi-
sion has been made for the payment of the principal of and
interest on the Bonds by a pledge of the Net Revenues of the
System as aforestated. In case any provision in this Bond or
any application thereof shall be invalid, illegal, or unen-
forceable, the validity, legality, and enforceability of the
remaining provisions and applications shall not in any way be
affected or impaired thereby. The terms and provisions of this
Bond and the Ordinance shall be construed in accordance with
and shall be governed by the laws of the State of Texas.
-12-
Ordinance No. 637-9-85
IN WITNESS WHEREOF, the City Council of the City has
caused this Bond to be duly executed under the official seal of
the City as of the Bond Date.
City of Allen, Texas
COUNTERSIGNED: Mayor
City Secretary
(SEAL)
C. * Form of Registration Certificate of Comptroller
of Public Accounts to Appear on Initial Bond only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER §
OF PUBLIC ACCOUNTS §
§ REGISTER NO.
THE STATE OF TEXAS §
I HEREBY CERTIFY that this Bond has been examined,
certified as to validity and approved by the Attorney General
of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office
this
Comptroller of Public Accounts
(SEAL) of the State of Texas
*NOTE TO PRINTER: Do not print on Definitive Bonds
-13-
Ordinance No. 637-9-85
D. Form of Certificate of Paying Agent/Registrar to
Appear on Definitive Bonds only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued and registered in the
name of the Registered Owner shown above under the provisions
of the within -mentioned Ordinance; the bond or bonds of the
above entitled and designated series originally delivered hav-
ing been approved by the Attorney General of the State of Texas
and registered by the Comptroller of Public Accounts, as shown
by the records of the Paying Agent/Registrar.
MBank Dallas, N.R., Dallas, Texas,
as Paying Agent/Registrar
Registration Date:
By
Authorized Signature
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, as-
signs, and transfers unto (Print or typewrite name, address,
and zip code of transferee:) ..............................
............................................................
............................................................
(Social Security or other identifying number: .............
................) the within Bond and all rights thereunder,
and hereby irrevocably constitutes and appoints ...........
............................................................
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED:
NOTICE: The signature on this
Signature guaranteed: assignment must correspond with
the name of the registered owner
.......................... as it appears on the face of the
within Bond in every particular.
F. The Initial Bond(s) shall be in the form set forth in
paragraph B of this Section, except that the form of a single
fullv reaistered Initial Bond shall be modified as follows:
-14-
Ordinance No. 637-9-85
(i) immediately under the name of the bond the headings
"Interest Rate " and "Stated Maturity is
shall both be completed "as shown below;"
(ii) Paragraph one shall read as follows:
The City of Allen (hereinafter referred to as the
"City"), a body corporate and political subdivision in the
County of Collin, State of Texas, for value received, hereby
promises to pay to the order of the Registered Owner named
above (herein referred to as the "Holder"), or the registered
assigns thereof, solely from the revenues hereinafter identi-
fied, on June 1 in each of the years and in principal amounts
and bearing interest at per annum rates in accordance with the
following schedule:
PRINCIPAL INTEREST
YEAR INSTALLMENTS RATE
(Information to be inserted from
schedule in Section 2 hereof).
(or so much thereof as shall not have been prepaid prior to
maturity) and to pay interest on the unpaid principal amounts
hereof from the Bond Date at the per annum rates of interest
specified above calculated on the basis of a 360 -day year of
twelve 30 -day months; such interest being payable on June 1 and
December 1 of each year, commencing June 1, 1986. Principal of
this Bond shall be payable to the Holder hereof, upon presenta-
tion and surrender, at the principal office of MBank Dallas,
N.A., Dallas, Texas (the "Paying Agent/ Registrar"). Interest
shall be payable to the Holder of this- Bond whose name appears
on the "Security Register" maintained by the Paying Agent/
Registrar at the close of business on the "Record Date", which
is the 15th day of the month next preceding each interest pay-
ment date. All payments of principal of, premium, if any, and
interest on this Bond shall be in any coin or currency of the
United States of America which at the time of payment is legal
tender for the payment of public and private debts and interest
shall be paid by the Paying Agent/ Registrar by check sent
United States Mail, first class postage prepaid, to the address
of Holder recorded in the Security Register or by such other
method, acceptable to the Paying Agent/Registrar, requested by,
and at the risk and expense of, the Holder.
SECTION 9: Definitions. For all purposes of this
Ordinance and in particular for clarity with respect to the
issuance of the Bonds herein authorized and the pledge and
appropriation of revenues to the payment of the Bonds, the
following definitions are provided:
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Ordinance No. 637-9-85
"Additional Bonds" - Additional parity revenue
bonds issued in accordance with the terms and conditions
precribed in Section 19 hereof.
"Bonds" - The "City of Allen, Texas, Waterworks
and Sewer System Revenue Bonds, Series 1985", dated
September 1, 1985, authorized by this Ordinance.
"Bonds Similarly Secured" - All bonds issued by
the City which are secured by and payable from a first lien
on and pledge of the Net Revenues of the System.
"City" - The City of Allen located in the County
of Collin, Texas.
"Fiscal Year" - The twelve month period ending
June 30 of each year; provided, however, at such time as
all the "City of Allen, Texas, Waterworks and Sewer System
Revenue Bonds, Series 1972," dated June 1, 1972, have been
fully paid as to principal and interest or refunded, the
City Council by ordinance duly passed and adopted may
change the fiscal year to another twelve-month period.
"Government Obligations" - 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 United
States Treasury obligations such as its State and Local
Government Series in book -entry form.
"Net Revenues" - The gross revenues of the
System, less the expense of operation and maintenance,
including all salaries, labor, materials, repairs and ex-
tensions necessary to render efficient service; provided,
however, that only such repairs and extensions, as in the
judgment of the City Council, reasonably and fairly exer-
cised, are necessary to keep the System in operation and
render adequate service to the City and the inhabitants
thereof, or such as might be necessary to meet some physi-
cal accident or condition which would otherwise impair
obligations payable from Net Revenues shall be deducted in
determining "Net Revenues".
"Outstanding" - When used in this Ordinance with
respect to Bonds means, as of the date of determination,
all Bonds theretofore issued and delivered under this
Ordinance, except:
(1) those Bonds cancelled by the Paying Agent/
Registrar or delivered to the Paying Agent/Registrar for
cancellation;
-16-
Ordinance No. 637-9-85
(2) those Bonds deemed to be paid by the City in
accordance with the provisions of Section 26 hereof by the
irrevocable deposit with the Paying Agent/Registrar, or an
authorized escrow agent, of money or Government
Obligations, or both, in the amount necessary to fully pay
the principal of, premium, if any, and interest thereon to
maturity or redemption, as the case may be, provided that,
if such Bonds are to be redeemed, notice of redemption
thereof shall have been duly given pursuant to this
Ordinance or irrevocably provided to be given to the satis-
faction of the Paying Agent/Registrar, or waived; and
(3) those Bonds that have been mutilated, de-
stroyed, lost, or stolen and replacement Bonds have been
registered and delivered in lieu thereof as provided in
Section 30 hereof.
"Previously Issued Bonds" - The outstanding and
unpaid revenue bonds described as follows:
(i) "City of Allen, Texas, Waterworks and
Sewer System Revenue Bonds, Series 1972," dated
June 1, 1972, and originally issued in the aggre-
gate principal amount of $1,500,000;
(ii) "City of Allen, Texas, Waterworks and
Sewer System Revenue Bonds, Series 1979," dated
August 1, 1979, and originally issued in the
aggregate principal amount of $1,300,000; and
(iii) "City of Allen, Texas, Waterworks and
Sewer System Revenue Bonds, Series 1981," dated
June 1, 1981, and originally issued in the aggre-
gate principal amount of $500,000.
"System" - The City's combined Waterworks and
Sanitary Sewer System, including all present and future
additions, extensions, replacements and improvements in any
wise appertaining thereto, whether situated within or with-
out the limits of said City.
SECTION 10: Pledge. That the City hereby covenants
and agrees that all of the Net Revenues of the System, with the
exception of those in excess of the amounts required to estab-
lish and maintain the special funds created for the payment and
security of the Bonds Similarly Secured, are hereby irrevocably
pledged, for the payment of the Previously Issued Bonds, the
Bonds and Additional Bonds, if issued, and the interest there-
on, and it is hereby ordained that the Previously Issued Bonds,
the Bonds, and Additional Bonds, if issued, and the interest
thereon, shall constitute a first lien on the Net Revenues of
the System.
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Ordinance No. 637-9-85
SECTION 11: Reaffirmation of Special Funds. The
City hereby reaffirms its covenant and agreement that all reve-
nues derived from the operation of the System shall be kept
separate and apart from all other revenues of the City and the
following special funds heretofore created and established are
hereby reaffirmed to wit:
(a) City of Allen Waterworks and Sewer System Fund
(hereinafter called "System Fund") which Fund is and shall
continue to be maintained at the City's depository bank.
(b) City of Allen Waterworks and Sewer System Revenue
Bond Interest and Sinking Fund, hereinafter called "Interest
and Sinking Fund." This Fund is and shall continue to be main-
tained at MBank Dallas, N.A., Dallas, Texas, as Trustee of the
pledged revenues, and moneys deposited therein shall be used
solely for the purpose of paying the principal of and interest
on the Bonds Similarly Secured as the same become due.
(c) City of Allen Waterworks and Sewer System Revenue
Bond Reserve Fund, hereinafter called "Reserve Fund." This
Fund is and shall continue to be maintained at MBank Dallas,
N.A., Dallas, Texas, Trustee, and moneys deposited therein
shall be used only for the purpose of paying principal of and
interest on Bonds Similarly Secured when there is insufficient
money available for such purpose in the Interest and Sinking
Fund on an interest and/or principal payment date.
._SECTION 12: Flow of Funds. The City hereby reaf-
firms its prior covenant and agrees that all revenues of every
nature received from the operation of the System shall be
deposited from day to day as collected into the System Fund,
and the reasonable and proper expenses of operating and main-
taining the System, as set forth in the definition of Net
Revenues in Section 9 hereof, shall be paid therefrom upon
approval of the City Council. All revenues of the System not
actually required to pay expenses and costs incurred as per-
mitted by this Section shall be deposited in the other Funds
created for the payment and security of the Bonds Similarly
Secured to the extent and in the manner required by the ordi-
nances authorizing the issuance of the Previously Issued Bonds
and this ordinance.
SECTION 13: Interest and Sinking Fund. In addition
to the amounts required to be deposited in the Interest and
Sinking Fund from the Net Revenues in the System Fund to pay
the principal of and interest on the Previously Issued Bonds as
the same becomes due, the City hereby agrees to make monthly
deposits to said Fund to pay the principal of and interest on
the Bonds herein authorized as follows:
Ordinance No. 637-9-85
Beginning on or before November 15, 1985, and on
or before the 15th day of each month thereafter to and
including May 15, 1986, an amount equal to not less
than one-seventh (1/7) of the installment of interest
to become due on the Bonds on June 1, 1986; and on or
before June 15, 1986, and on or before the 15th day of
each month thereafter, an amount equal to not less
than one-sixth (1/6) of the next semiannual install-
ment of interest to become due on the Bonds; and, in
addition, beginning on or before June 15, 1986 and on
or before the 15th day of each month thereafter, an
amount equal to not less than one -twelfth (1/12) of
the next annual principal payment to become due on the
Bonds.
The monthly deposits to the Interest and Sinking Fund
for the payment of principal and interest on the Bonds shall
continue to be made as hereinabove provided until such time as
(i) the total amount on deposit in the Interest and Sinking
Fund is equal to the amount required to pay all outstanding
Bonds Similarly Secured or (ii) the Bonds are no longer out-
standing.
Accrued interest and premium, if any, received from
the purchaser of the Bonds, as well as any proceeds of the
Bonds not required to complete the improvements and extensions
to the System, shall be deposited in the Interest and Sinking
Fund, and may be taken into consideration and reduce the amount
of the monthly deposits hereinabove provided which would other-
wise be required to be deposited in the Interest and Sinking
Fund from the Net Revenues of the System for the Bonds.
SECTION 14: Reserve Fund. That the City hereby
reaffirms its prior covenant and agrees that there shall be
accumulated, and when accumulated, continuously maintained in
the Reserve Fund an amount equal to not less than the average
principal and interest requirements for all outstanding Bonds
Similarly Secured (calculated on a fiscal year basis as of the
date of the bonds of the last series of Bonds Similarly Secured
then outstanding). The amount to be accumulated and maintained
in the Reserve Fund by virtue of the issuance of the Bonds is
hereby determined to be
In accordance with the ordinances authorizing the
issuance of the Previously Issued Bonds, there is currently on
deposit in the Reserve Fund the sum of not less than $31�'ta�j .
Beginning on or before November 15, 1985, and on or before the
15th day of each following month, there shall be deposited in
the Reserve Fund an amount equal to not less than $ 'a, 9 4 0
until the amount of cash and investments in said Fund totals
-19-
Ordinance No. 637-9-85
not less than When the total amount now required
to be deposited in the Reserve Fund has been fully accumulated,
said monthly payments to said Fund may be terminated; provided,
however, should the amount on deposit in said Fund be reduced
below $ U °1 D, al's , after the same has been accumulated, monthly
deposits to the Reserve Fund in the amount of $ ;�.gLAf_� shall
be resumed and continued to be made on or before the 15th day
of each month until the amount required to be deposited therein
has been fully restored.
Money in the Reserve Fund may be, at the option of the
City, invested or reinvested from time to time in direct obli-
gations of or obligations, the principal and interest of which
are guaranteed by the United States of America or invested in
direct obligations of or participation certificates guaranteed
by the Federal Intermediate Credit Banks, Federal Land Banks,
Federal National Mortgage Association, Federal Home Loan Banks,
Banks for Cooperatives, and in certificates of deposit of any
bank or trust company the deposits of which are fully secured
by a pledge of securities of any of the kinds hereinabove spe-
cified, such obligations or securities to mature in not more
than ten years from the date of such investments or not later
than the final maturity of the then outstanding Bonds Similarly
Secured, whichever period is shorter. Any obligations in which
money is so invested shall be kept in escrow with the custodian
of said Fund, and shall be promptly sold and the proceeds of
sale applied to the making of payments required to be made from
the Reserve Fund whenever such payments are necessary to be
made under Section 11 (c). During the time said Fund contains
the full amount required to be on deposit, any interest income
or increment by reason of such investments shall be transferred
to the System Fund. The deposits required to be made into this
Fund shall be subordinate to those required to be made into the
Interest and Sinking Fund.
SECTION 15: Deficiencies in Funds. If in any month
the City shall, for any reason, fail to pay into the Interest
and Sinking Fund and Reserve Fund the full amounts above stipu-
lated, amounts equivalent to such deficiencies shall be set
apart and paid into said special Funds from the first available
and unallocated Net Revenues of the System in the following
month or months and such payments shall be in addition to the
amounts hereinabove provided to be otherwise paid into said
Funds during such month or months.
SECTION 16: Excess Revenues. Any revenues in ex-
cess of those required to fully establish and maintain the
special Funds created for the payment and security of the Bonds
Similarly Secured may be used for the redemption of the Bonds
Similarly Secured, or may be transferred to the general fund of
the City and used for general or special purposes.
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Ordinance No. 637-9-85
SECTION 17: Security for Funds. All moneys depos-
ited in the special Funds for which this ordinance makes provi-
sion (except any portions thereof as may be at any time proper-
ly invested) shall be secured in the manner and to the fullest
extent required by the laws of Texas for the security of public
funds, and moneys on deposit in such Funds shall be used only
for the purposes permitted by this ordinance.
SECTION 18: Payment of Bonds. While any of the
Bonds are Outstanding, the City's Director of Finance shall
cause to be transferred to the Paying Agent therefor, from
funds on deposit in the Interest and Sinking Fund, and, if
necessary, in the Reserve Fund, amounts sufficient to fully pay
and discharge promptly as each installment of interest and
principal of the Bonds as it accrues or matures or comes due by
reason of redemption prior to maturity; such transfer of funds
to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agent for the Bonds at
the close of the business day next preceding the date of pay-
ment for the Bonds.
SECTION 19: Issuance of Additional Bonds. In addi-
tion to the right to issue bonds of inferior lien as authorized
by the laws of this State, the City reserves the right to here-
after issued additional parity bonds which shall be payable
from and secured by a first lien on and pledge of the Net
Revenues of the System in the same manner and to the same ex-
tent as the Previously Issued Bonds and the Bonds, and the
Previously Issued Bonds, the Bonds and Additional Bonds shall
in all respects be of equal dignity. The Additional Bonds may
be issued in one or more installments, provided, however, that
none shall be issued unless and until the following conditions
have been met:
(a) The City is not then in default as to any cove-
nant, condition or obligation prescribed by an ordinance autho-
rizing the issuance of the then outstanding Bonds Similarly
Secured.
(b) That each of the Funds created for the payment
and security of the Bonds Similarly Secured contains the amount
of money then required to be on deposit therein.
(c) The net earnings of the System for (1) the City's
completed Fiscal Year next preceding the adoption of the ordi-
nance authorizing the issuance of the proposed Additional Bonds
or (2) the twelve (12) months next preceding the adoption of
such ordinance are equal to at least one and one-fourth (1-1/4)
times the average annual principal and interest requirements of
all the bonds to be secured by a first lien on and pledge of
Ordinance No. ;637-9-85
the Net Revenues of the System after giving effect to the issu-
ance of the proposed Additional Bonds, as such net earnings are
shown by a report of a Certified Public Accountant or Licensed
Public Accountant. The term "net earnings" as used in this
Section 19 shall mean the gross revenues after deducting the
expense of operation and maintenance, but not deducting depre-
ciation or expenditures which, under standard accounting prac-
tice, should be charged to capital expenditures.
(d) The Additional Bonds are made to mature on June 1
in each of the years in which they are scheduled to mature.
(e) The ordinance authorizing the issuance of the
Additional Bonds provides for the accumulation in the Interest
and Sinking Fund of amounts sufficient to pay the principal of
and interest on such Additional Bonds as same mature.
(f) The ordinance authorizing the issuance of the
Additional Bonds provides that the amount to be accumulated and
maintained in the Reserve Fund shall be an amount equal to not
less than the average annual requirement for the payment of
principal and interest on all bonds to be secured by a first
lien on and pledge of the Net Revenues of the System after
giving effect to the issuance of the proposed Additional Bonds,
and provides that any additional Reserve Fund amount which may
thus be required shall be accumulated within not more than five
years and one month from the date of the passage of the ordi-
nance authorizing the issuance of the proposed Additional Bonds.
Bonds Similarly Secured may be refunded (pursuant to
any law then available) upon such terms and conditions as the
governing body of the City may deem to the best interest of the
City and its inhabitants, and, if less than all such outstand-
ing revenue bonds are refunded, the proposed refunding bonds
shall be considered as Additional Bonds under the provisions of
this Section and the report required in subdivision (c) shall
give effect to the issuance of the proposed refunding bonds
(and shall not give effect to the bonds being refunded follow-
ing their cancellation or provisions being made for their
payment).
SECTION 20. Maintenance and Operation - Insurance.
The City shall maintain the System in good condition and oper-
ate the same in an efficient manner and at reasonable cost. So
long as any of the Bonds are Outstanding, the City agrees to
maintain insurance for the benefit of the Holder or Holders of
the Bonds on the System of a kind and in an amount which usu-
ally would be carried by municipal corporations of the State of
Texas engaged in a similar type of business. Nothing in this
Section shall be construed as requiring the City to expend any
-22-
Ordinance No. 637-9-85
funds which are derived from sources other than the operation
of the System but nothing herein shall be construed as prevent-
ing the City from doing so.
SECTION 21. Records and Accounts. The City hereby
covenants and agrees that so long as any of the Bonds or any
interest thereon remain Outstanding and unpaid, it will keep
and maintain a proper and complete system of records and ac-
counts pertaining to the operation of the System (separate and
apart from all other records and accounts) in which complete
and correct entries shall be made of all transactions relating
to said System, as provided in Article 1113, V.A.T.C.S., and
that the Holder or Holders of any of such Bonds or any duly
authorized agent or agents of such Holders shall have the right
at all reasonable times to inspect all such records, accounts
and data relating thereto, and to inspect the System and all
properties comprising same. The City further agrees that as
soon as possible following the close of each Fiscal Year, it
will cause an audit of such books and accounts to be made by an
independent firm of Certified Public Accountants or Licensed
Public Accountants. Each such audit, in addition to whatever
other matters may be thought proper by the Accountant, shall
particularly include the following:
(a) A detailed statement of the income and expendi-
tures of the System for such Fiscal Year;
(b) A balance sheet as of the end of such Fiscal Year;
(c) The Accountant's comments regarding the manner in
which the City has carried out the requirements of this ordi-
nance and his recommendations for any changes or improvements
in the operation, records and accounts of the System;
(d) A list of the insurance policies in force at the
end of the Fiscal Year on the System properties, setting out as
to each policy the amount thereof, the risk covered, the name
of the insurer, and the policy's expiration date;
(e) A list of the securities which have been on
deposit as security for the money in the Interest and Sinking
Fund throughout the Fiscal Year, a list of the securities, if
any, in which the Reserve Fund has been invested, and a state-
ment of the manner in which money in the System Fund has been
secured in such Fiscal Year;
System.
(f) The number of properties connected with the
-23-
Ordinance No. 637-9-85
Expenses incurred in making the audits above refer-
enced to are to be regarded as maintenance and operating ex-
penses and paid as such. Copies of the aforesaid annual audit
shall be immediately furnished to the Executive Director of the
Municipal Advisory Council of Texas at his office in Austin,
Texas, to the original purchaser of the Bonds, and, upon writ-
ten request, to any subsequent Holder of the Bonds. Any Holder
shall have the right to discuss with the Accountant making the
annual audit the contents thereof and to ask for such addi-
tional information as he may reasonably require.
SECTION 22. Remedy in Event of Default. In addi-
tion to all the rights and remedies provided by the laws of the
State of Texas, the City covenants and agrees particularly that
in the event the City (a) defaults in payments to be made to
the Interest and Sinking Fund or Reserve Fund, or (b) defaults
in the observance or performance of any other of the covenants,
conditions or obligations set forth in this ordinance, the
Holder or Holders of any of the Bonds shall be entitled to a
writ of mandamus issued by a court of proper jurisdiction com-
pelling and requiring the City Council and other officers of
the City to observe and perform any covenant, condition or
obligation prescribed in the Bond ordinance.
No delay or ommission to exercise any right or power
accruing upon any default shall impair any such right or power,
or shall be construed to be a waiver of any such default or
acquiescence therein, and every such right and power may be
exercised from time to time and as often as may be deemed ex-
pedient. The specific remedies herein provided shall be cumu-
lative of all other existing remedies and the specification of
such remedies shall not be deemed to be exclusive.
SECTION 23. Special Covenants. The City hereby
further covenants as follows:
(a) That it has the lawful power to pledge the reve-
nues supporting this issue of Bonds and has lawfully exercised
said power under the Constitution and laws of the State of
Texas, including said power existing under Article 1111 et
seq., V.A.T.C.S.; that the Previously Issued Bonds and the
Bonds shall be ratably secured under said pledge of income in
such manner that one bond shall have no preference over any
other bond of said issues.
(b) That other than for the payment of the Previously
Issued Bonds and the Bonds, the Net Revenues of the System have
not in any manner been pledged to the payment of any debt or
obligation of the City or of the System.
-24-
Ordinance No. 637-9-85
(c) That, so long as any of the Bonds, or any inter-
est thereon, remain Outstanding, the City will not sell, lease
or encumber the System or any substantial part thereof, pro-
vided that this shall not be construed to prohibit the sale of
such machinery, or other properties or equipment which has
become obsolete or otherwise unsuited to the efficient opera-
tion of the System; also, with the exception of the Additional
Bonds expressly permitted by this ordinance to be issued, it
will not encumber the Net Revenues thereof unless such encum-
brance is made junior and subordinate to all of the provisions
of this ordinance.
(d) That no free service of the System shall be al-
lowed, and should the City or any of its agencies or instrumen-
talities make use of the services and facilities of the System,
payment of the reasonable value thereof shall be made by the
City out of funds from sources other than the revenues and
income of the System.
(e) To the extent that it legally may, the City fur-
ther covenants and agrees that, so long As any of the Bonds, or
any interest thereon are Outstanding, no franchise shall be
granted for the installation or operation of any waterworks or
sanitary sewer systems other than those owned by the City, and
the operation of any such system by anyone other than the City
is hereby prohibited.
SECTION 24: Rates and Charges. That, for the bene-
fit of the Holders of the Bonds Similarly Secured and in addi-
tion to all provisions and covenants in the laws of the State
of Texas and in this ordinance, the City hereby expressly stip-
ulates and agrees, while any of the Bonds are Outstanding, to
establish and maintain rates and charges for facilities and
services afforded by the System that are reasonably expected,
on the basis of available information and experience and with
due allowance for contingencies, to produce gross revenues in
each Fiscal Year sufficient:
(1) To pay maintenance and operating expenses,
depreciation charges and replacement and betterment
costs,
(2) To produce Net Revenues sufficient to pay
the principal of and interest on the Bonds Similarly
Secured and the amounts required to be deposited in
any reserve or contingency fund created for the pay-
ment and security of the Bonds Similarly Secured, and
other obligations or evidences of indebtedness issued
or incurred that are payable only from and secured
solely by a lien on and pledge of the Net Revenues of
the System, and
-25-
Ordinance No. 637-9-85
(3) To produce Net Revenues equal to at least
1.20 times the debt service due and payable on the
outstanding Bonds Similarly Secured.
SECTION 25: Special Obligations. The Bonds are
special obligations of the City payable from the pledged Net
Revenues of the System and the Holders of the Bonds shall never
have the right to demand payment thereof out of funds raised or
to be raised by taxation.
SECTION 26: Satisfaction of Obligation of City. If
the City shall pay or cause to be paid, or there shall other-
wise be paid to the Holders, the principal of, premium, if any,
and interest on the Bonds, at the times and in the manner stip-
ulated in this ordinance, then the pledge of the Net Revenues
of the System under this ordinance and all other obligations of
the City to the Holders shall thereupon cease, terminate, and
become void and be discharged and satisfied.
Bonds or any principal amount(s) thereof shall be
deemed to have been paid within the meaning and with the effect
expressed above in this Section when (i) money sufficient to
pay in full such Bonds or the principal amount(s) thereof at
maturity or to the redemption date therefor, together with all
interest due thereon, shall have been irrevocably deposited
with and held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, or (ii) Government Obligations shall
have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which
Government Obligations have been certified by an independent
accounting firm to mature as to principal and interest in such
amounts and at such times as will insure the availability,
without reinvestment, of sufficient money, together with any
moneys deposited therewith, if any, to pay when due the princi-
pal of and interest on such Bonds, or the principal amount(s)
thereof, on and prior to the Stated Maturity thereof or (if
notice of redemption has been duly given or waived or if irre-
vocable arrangements therefor acceptable to the Paying Agent/
Registrar have been made) the redemption date thereof. The
City covenants that no deposit of moneys or Government
Obligations will be made under this Section and no use made of
any such deposit which would cause the Bonds to be treated as
"arbitrage bonds" within the meaning of Section 103(c) of the
Internal Revenue Code of 1954, as amended, or regulations
adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/
Registrar, or an authorized escrow agent, and all income from
Government Obligations held in trust by the Paying Agent/
Registrar or an authorized escrow agent, pursuant to this
-26-
Ordinance No. 637-9-85
Section which is not required for the payment of the Bonds, or
any principal amount(s) thereof, or interest thereon with re-
spect to which such moneys have been so deposited shall be
remitted to the City or deposited as directed by the City.
Furthermore, any money held by the Paying Agent/Registrar for
the payment of the principal of and interest on the Bonds and
remaining unclaimed for a period of four (4) years after the
Stated Maturity, or applicable redemption date, of the Bonds
such moneys were deposited and are held in trust to pay shall,
upon the request of the City, be remitted to the City against a
written receipt therefor.
SECTION 27: Ordinance a Contract - Amendments.
This ordinance shall constitute a contract with the Holders
from time to time, be binding on the City, and shall not be
amended or repealed by the City so long as any Bond remains
Outstanding except as permitted in this Section. The City,
may, without the consent of or notice to any Holders, from time
to time and at any time, amend this ordinance in any manner not
detrimental to the interests of the Holders, including the
curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the City may, with the written
consent of Holders holding a majority in aggregate principal
amount of the Bonds Similarly Secured then Outstanding affected
thereby, amend, add to, or rescind any of the provisions of
this ordinance; provided that, without the consent of all
Holders of Outstanding Bonds, no such amendment, addition, or
rescission shall (1) extend the time or times of payment of the
principal of, premium, if any, and interest on the Bonds, re-
duce the principal amount thereof, the redemption price there-
for, or the rate of interest thereon, or in any other way mod-
ify the terms of payment of the principal of, premium, if any,
or interest on the Bonds, (2) give any preference to any Bond
over any other Bond, or (3) reduce the aggregate principal
amount of Bonds required to be held by Holders for consent to
any such amendment, addition, or rescission.
SECTION 28: Mutilated - Destroyed - Lost and Stolen
Bonds. If (1) any mutilated Bond is surrendered to the Paying
Agent/Registrar, or the City and the Paying Agent/Registrar
receive evidence to their satisfaction of the destruction,
loss, or theft of any Bond, and (2) there is delivered to the
City and the Paying Agent/Registrar such security or indemnity
as may be required to save each of them harmless, then, in the
absence of notice to the City or the Paying Agent/Registrar
that such Bond has been acquired by a bona fide purchaser, the
City shall execute and, upon its request, the Paying Agent/
Registrar shall register and deliver, in exchange for or in
lieu of any such mutilated,, destroyed, lost, or stolen Bond, a
new Bond of the same Stated Maturity and of like tenor and
principal amount, bearing a number not contemporaneously
outstanding.
-27-
Ordinance No. 637-9-85
In case any such mutilated, destroyed, lost, or stolen
Bond has become or is about to become due and payable, the City
in its discretion may, instead of issuing a new Bond, pay such
Bond.
Upon the issuance of any new Bond under this Section,
the City may require payment by the Holder of a sum sufficient
to cover any tax or other governmental charge imposed in rela-
tion thereto and any other expenses (including the fees and
expenses of the Paying Agent/Registrar) connected therewith.
Every new Bond issued pursuant to this Section in lieu
of any mutilated, destroyed, lost, or stolen Bond shall consti-
tute a replacement of the prior obligation of the City, whether
or not the mutilated, destroyed, lost, or stolen Bond shall be
at any time enforceable by anyone, and shall be entitled to all
the benefits of this Ordinance equally and ratably with all
other Outstanding Bonds.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated, de-
stroyed, lost, or stolen Bonds.
SECTION 29: No -Arbitrage Certification. The City
certifies that based on facts, estimates, and circumstances
expected to exist on the date of the issue of the Bonds it is
not reasonable to anticipate that the proceeds thereof will be
used in a manner which would cause them to be "arbitrage bonds"
within the meaning of Section 103(c) of the Internal Revenue
Code of 1954, as amended, or regulations thereunder applicable
thereto, and the City covenants not to make any use of the
proceeds of the Bonds or investment income therefrom which
would cause the Bonds to become "arbitrage bonds" within the
meaning of Section 103(c) of such Code. The covenants herein
made and the certifications herein authorized are for the bene-
fit of the Holders from time to time and may be relied upon by
said Holders and bond counsel for the City.
SECTION 30: Sale of the Bonds. That the Bonds
authorized by this ordinance have been and are hereby sold
to
(the "Purchasers") at the price of
$ per $1,000 par value and accrued interest to the
date of delivery. Delivery of said Bonds shall be made to said
Purchaser(s) as soon as may be after adoption of this
Ordinance, upon payment therefor in accordance with the terms
of sale.
Ordinance No. 637-9-85
SECTION 31: Control and Custody of Bonds. The
Mayor of the City shall be and is hereby authorized to take and
have charge of all necessary orders and records pending in-
vestigation by the Attorney General of the State of Texas,
including the printing and supply of definitive Bonds, and
shall take and have charge and control of the Initial Bond
pending its approval by the Attorney General, the registration
thereof by the Comptroller of Public Accounts and the delivery
thereof to the Purchaser(s).
Furthermore, the Mayor and City Secretary of the City
and Director of Finance, any one or more of said officials, are
hereby authorized and directed to furnish and execute such
documents relating to the City and its financial affairs as may
be necessary for the issuance of the Bonds, the approval of the
Attorney General and their registration by the Comptroller of
Public Accounts and, together with the City's financial ad-
visor, bond counsel and the Paying Agent/Registrar, make the
necessary arrangements for the delivery of the Initial Bond to
the Purchaser(s) and the initial exchange thereof for defini-
tive Bonds.
SECTION 32: Official Statement. The Official
Statement prepared in the initial offering and sale of the
Bonds by the City, together with all addendas, supplements and
amandments thereto issued on behalf of the City, is hereby
approved as to form and content, and the City Council hereby
finds that the information and data contained in said Official
Statement pertaining to the City and its financial affairs is
true and correct in all material respects and no material facts
have been omitted therefrom which are necessary to make the
statements therein, in light of the circumstances under which
they were made, not misleading. The use of such Official
Statement in the reoffering of the Bonds by the Purchasers is
hereby approved and authorized.
SECTION 33: Notices to Holders -Waiver. Wherever
this Ordinance provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise here-
in expressly provided) if in writing and sent by United States
Mail, first class postage prepaid, to the address of each
Holder as it appears in the Security Register.
In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holder, nor any defect in any notice so mailed, shall affect
the sufficiency of such notice with respect to all other
Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Holder entitled to
receive such notice, either before or after the event with
-29-
Ordinance No. 637-9-85
respect to which such notice is given, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Paying Agent/Registrar, but such filing
shall not be a condition precedent to the validity of any ac-
tion taken in reliance upon such waiver.
SECTION 34: Cancellation. All Bonds surrendered
for payment, redemption, transfer, exchange, or replacement, if
surrendered to the Paying Agent/Registrar, shall be promptly
cancelled by it and, if surrendered to the City, shall be
delivered to the Paying Agent/Registrar and, if not already
cancelled, shall be promptly cancelled by the Paying Agent/
Registrar. The City may at any time deliver to the Paying
Agent/Registrar for cancellation any Bonds previously certified
or registered and delivered which the City may have acquired in
any manner whatsoever, and all Bonds so delivered shall be
promptly cancelled by the Paying Agent/Registrar. All can-
celled Bonds held by the Paying Agent/Registrar shall be de-
stroyed as directed by the City.
SECTION 35: Printed Opinion. The Purchaser's(s')
obligation to accept delivery of the Bonds is subject to its
being furnished a final opinion of Dumas, Huguenin, Boothman &
Morrow, Attorneys, Dallas, Texas, approving such Bonds as to
their validity, said opinion to be dated and delivered a,s of
the date of delivery and payment for such Bonds. Printing of a
true and correct reproduction of said opinion on the reverse
side of each of said Bonds is hereby approved and authorized.
SECTION 36: CUSIP Numbers. CUSIP numbers may be
printed or typed on the definitive Bonds. It is expressly
provided, however, that the presence or absence of CUSIP num-
bers on the definitive Bonds shall be of no significance or
effect as regards the legality thereof and neither the City
nor attorneys approving said Bonds as to legality are to be
held responsible for CUSIP numbers incorrectly printed or typed
on the definitive Bonds.
SECTION 37: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be con-
strued to confer upon any person other than the City, the
Paying Agent/Registrar and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance
or any provision hereof, this Ordinance and all its provisions
being intended to be and being for the sole and exclusive bene-
fit of the City, the Paying Agent/Registrar and the Holders.
SECTION 38: Inconsistent Provisions. All ordi-
nances, orders or resolutions, or parts thereof, which are in
conflict or inconsistent with any provision of this Ordinance,
-30-
Ordinance No. 637-9-85
are hereby repealed and cancelled and the provisions of this
Ordinance shall supercede and control as to the matters con-
tained herein.
SECTION 39: Construction of Terms. If appropriate
in the context of this Ordinance, words of the singular number
shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words
of the masculine, feminine or neuter gender shall be considered
to include the other genders.
SECTION 40: Governing Law. This Ordinance shall be
construed and enforced in accordance with the laws of the State
of Texas and the United States of America.
SECTION 41: Severability. If any provision of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless
be valid, and this governing body hereby declares that this
Ordinance would have been enacted without such invalid
provision.
SECTION 42: Public Meeting. It is officially
found, determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice
of the time, place, and subject matter of the public business
to be considered at such meeting, including this Ordinance, was
given, all as required by Article 6252-17, Vernon's Texas Civil
Statutes, as amended.
SECTION 43. Effective Date: This ordinance shall
take effect immediately upon its passage and adoption on the
date shown below.
PASSED AND ADOPTED, this September 30, 1985.
ATTEST:
City Secretar
(City Seal)
CITY OF ALLEN, TEXAS
-31-
AFFIDAVIT'AND PROOF OF PUBLICATION
THE STATE OF TEXAS
COUNTY OF COLLIN
Cha rle , Jr.
BEFORE ME, the undersigned authority, on this day personally appeared who having been
by me duly sworn, on oath deposes and says:
That he is publisher of THE ALLEN AMERICAN, a newspaper published in Collin County, Texas, not less fre-
quently than once a week, having a general circulation in said county, and having been published regularly and con-
tinuously for more than twelve months prior to publishing
Puhlic Notice - Ordinance #637-9-85
of which the attached is a true and written copy, and which was published in THE ALLEN AMERICAN on
October 6 & 9, 1985
and which was issued on 10-6-85 , by City o f A L l e n
of Collin County, Texas. A printed copy of said publication is att he reto.
SUBSCRIBED AND SWORN to before me this 18th day of November , A.D. 19 8 5
Notary Puba Pub'in and for Collin County, Texas
Publisher's Fee $ 38. 40
r' CITY OF ALLEN
PUBLIC NOTICE I
�Oji9 Notice is hereby given.
that the !4 lien City Coun• l
cll adoptM the following I
ordinance in a called -
special aassion held on
Mondays October. 14,
1985 (Titlo§'only):
ORDIrj'ANCE NO.
637.9.85: , n Ordinance)
�Authorizibb the Issuance
of "CITY OF ALLEN,
EXAS, WATERWORKS
AND; SEWER SYSTEM
REVENU BONDS,
SERIES 19851"
; Specify-
ing- the -,Terms and,
Features of Said Bonds;
Pledglnp, the Net
Revenues .�6f the City's'
Combined-+' Waterwbrks
and Sanitary, Seweri
$ystem ,to the Payment.
of the.Principal of and In•�
terest • on Said nd;
Enacting ProvisiBosonIncsi-r
dent and Related to.the
Issuance,- Payment,
Security. and Delivery of
Said Bonds, Including
the Apbroval - and
Distribution- of an Of-
ficial Statement Pertain-
ing Thereto; and . Pro-
viding An Effective Date.
ORDINANCE NO.
6390,85: An Oidinanc
Authorizing the Issuance
of ,City of Allen, Texass,
General Obligation
Bonds, Series 1985";
Specifying_ ;the- ,Terms
and Features of Said
Bonds; Levying a Conti•
nuing Direct Annual Ad
Valorem Tax for the Pay
ment of Said Bonds; and
Resolving Other.Matters
Incident.,and Related to
the Issuance,: Sale, Pay-'
ment and 'Delivery of
Said Bonds, 'Including'
the Approval anck
Distribution 'of an Of-
ficial Statement Pertain-
ing Thereto; and Pro-
viding an Effective Date.
Copies, of , these, or-
dinances niay be. read or
purchased In the office
of the City Secretary,
Allen Municipal Annex,
One Butler Circle, Allen,
Texas.
Marty Hendrix,
City Secretary
(To be published In the
Allen American on Sun-
day, Octd'e,' 1985 and .
Wednesday?rOctober 9,1
19861 1
\o%,
CITY -OF ALLEN
PUBLI.Q NOTICE ,
Notice is trLgeby given
that tfie Allen City Coun-
cil adopted the following
ordinances- in •a• called =
special session held on
Monday, Octoberjr14,
1985 (Titles only):
ORDINANCE NO.
637-9-85: An Ordinance
Authorizing the Issuance
of "'CITY OF ALLEN,
TEXAS, WATERWORKS,
AND SEWER SYSTEMt
REVENUE BONDS,)
SERIES 1985"; Specify-
ing the Terms sand,
Features of Said Bonds;
Pledging the Net
Revenues of the City's
'Combined Waterworks
and Sanitary Sewer
System to the Payment
'of the Principal of and In-
terest on Said Bonds;
Enacting Provisions Inti-"
dent and Related to the
Issuance, Paymen'tj
Security and Delivery oil
Said Bonds, Including
the Approval and
Distribution of an Of!
ficial, Statement Pertain!
Ing Thereto; and Pro
viding An Effective Date
ORDINANCE NO
639-9-85: An Ordinance
Authorizing the Issuance
of "City of Allen, Texass
I General Obligatio
[ Bonds. Series 1985'
6pecirying -the Terms
nd Features of Said
onds; Levying a Conti-
nuing Direct Annual Ad
Valorem Tax for the Pay-
ment of Said Bonds; and
Resolving, Other Matters
Incident and Related to]
the Issuance, Sale, Pay-
ment and'" Delivery of�
Said A Bonds; Including
the 1 Approval — and
-Disthbution- of an -Of:
ficial Statement Pertain)
ing Thereto; .and Pro-
viding an Effective Date
_ Copies 'of these ori
dinances may be read ol.
purchase"Ahe Dffis�
of the City Secretary,
Allen Municipal Annex
One Butler Circle, Allen
Texas. +I
Marty Hendrix,
City Secretary',
(To be published in the
Allen American on Sunf
day, October 6, 1985 an
Wednesday, October 9