O-87-2283 - 3/31/1987Ordinance No 2283
CERTIFICATE FOR ORDINANCE
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
CITY OF ROUND ROCK
We, the undersigned officers of said City, hereby
certify as follows:
1. The City Council of said City convened in SPECIAL
MEETING ON THE 31ST DAY OF MARCH, 1987, at the City Hall,
and the roll was called of the duly constituted officers and
members of said City Council, to -wit:
Mike Robinson, Mayor
Mike Heiligenstein, Mayor Pro Tem
Joanne Land, City Secretary
Glen T. King
Pete Correa
Trudy L. Lee
Charles Culpepper
Ronnie Jean
and all of said persons were present, except the following
absentees: (VIAE 1-1EILIcEmSTE10i 6,1EI)I1/4)1<frOc P&Th CbRkE4 thus
constituting a quorum. Whereupon, among other business, the
following was transacted at said Meeting: a written
ORDINANCE AUTHORIZING THE ISSUANCE OF BONDS,
AUTHORIZING THE EXECUTION OF A PURCHASE CONTRACT,
DIRECTING THE REDEMPTION OF BONDS,
APPROVING AN OFFICIAL STATEMENT ANIS THE
EXECUTION OF AN ESCROW AGREEMENT
was duly introduced for the consideration of said City
Council and read in full. It was then duly moved and
seconded that said Ordinance be passed; and, after due
discussion, said motion carrying with it the passage of said
Ordinance, prevailed and carried by the following vote:
AYES: All members of said City Council shown
present above voted "Aye".
NAYS: None.
2. That a true, full and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this Certifi-
cate; that said Ordinance has been duly recorded in said
City Council's minutes of said Meeting; that the above and
foregoing paragraph is a true, full and correct excerpt from
said City Council's minutes of said Meeting pertaining to
the passage of said Ordinance; that the persons named in the
above and foregoing paragraph are the duly chosen, qualified
and acting officers and members of said City Council as
indicated therein; that each of the officers and members of
said City Council was duly and sufficiently notified offi-
cially and personally, in advance, of the time, place and
purpose of the aforesaid Meeting, and that said Ordinance
•
would be introduced and considered for passage at said
Meeting, and each of said officers and members consented, in
advance, to the holding of said Meeting for such purpose,
and that said Meeting was open to the public and public
notice of the time, place and purpose of said meeting was
given, all as required by Vernon's Ann. Civ. St. Article
6252-17.
3. That the Mayor of said City has approved and hereby
approves the aforesaid Ordinance; that the Mayor and the
City Secretary of said City have duly signed said Ordinance;
and that the Mayor and the City Secretary of said City
hereby declare that their signing of this Certificate shall
constitute the signing of the attached and following copy of
said Ordinance for all purposes.
SIGNED AND SEALED the 31st day of March, 1987.
ty Secretary Mayor
SEAL
ORDINANCE AUTHORIZING THE ISSUANCE OF BONDS,
AUTHORIZING THE EXECUTION OF A PURCHASE CONTRACT,
DIRECTING THE REDEMPTION OF BONDS,
APPROVING AN OFFICIAL STATEMENT AND THE
EXECUTION OF AN ESCROW AGREEMENT
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
CITY OF ROUND ROCK
WHEREAS, there are presently outstanding the following
bonds of the following series or issues of bonds and certif-
icates of obligation of the City of Round Rock (the "Is-
suer") which are a portion of the Issuer's outstanding bonds
and certificates of obligation, as follows:
City of Round Rock, Texas General Obligation Bonds,
Series 1980-A, dated September 1, 1980, now outstanding
in the principal amount of $1,900,000 (the "Series
1980-A Bonds") maturing on August 1 of the years 1987
through 2000;
City of Round Rock, Texas General Obligation Bonds,
Series 1981-B, dated February 1, 1981, now outstanding
in the principal amount of $2,645,000 (the "Series
1981-B Bonds") maturing on August 1 of the years 1987
through 2001;
City of Round Rock, Texas Combination Tax and Revenue
Certificates of Obligation, Series 1982, dated May 1,
1982, now outstanding in the principal amount of
$560,000 (the "Series 1982 Certificates") maturing on
August 1 of the years 1987 through 1997;
City of Round Rock, Texas General Obligation Bonds,
Series 1983, dated October 1, 1983, now outstanding in
the principal amount of $2,750,000 (the "Series 1983
Bonds") maturing on August 1 of the years 1987 through
2000;
City of Round Rock, Texas General Obligation Bonds,
Series 1985, dated May 1, 1985, now outstanding in the
principal amount of $725,000 (the "Series 1985 Bonds")
maturing on August 1 of the years 1987 through 1998;
City of Round Rock, Texas Combination Tax and Revenue
Certificates of Obligation, Series 1985, dated May 1,
1985, now outstanding in the principal amount of
$7,450,000 (the "Series 1985 Certificates") maturing on
August 1 of the years 1987 through 2005;
1
City of Round Rock, Texas General Obligation Bonds,
Series 1985-A, dated November 1, 1985, now outstanding
in the principal amount of $12,150,000 (the "Series
1985-A Bonds") maturing on August 1 of the years 1987
through 2005;
WHEREAS, the Issuer now desires to refund the Series
1980-A Bonds maturing August 1 of the years 1996 through
2000, aggregating $1,125,000 in principal amount, the Series
1981-B Bonds maturing August 1 of the years 1997 through
1999, aggregating $700,000 in principal amount, the Series
1983 Bonds maturing August 1 of the years 1994 through 2000,
aggregating $2,025,000 in principal amount, the Series
1985-A Bonds maturing August 1 of the years 1996 through
2005, aggregating $8,825,000 in principal amount, the Series
1985 Bonds maturing August 1 of the years 1996 through 1998,
aggregating $250,000 in principal amount, the Series 1982
Certificates maturing August 1 of the years 1993 through
1997, aggregating $335,000 in principal amount, and the
Series 1985 Certificates maturing August 1 of the years 1996
through 2005, aggregating $5,425,000 in principal amount
(collectively the "Refunded Bonds"); and
WHEREAS, TEX. REV. CIV. STAT. ANN. art. 717k (Vernon),
as amended (hereinafter "Article 717k") authorizes the
Issuer to issue refunding bonds and to deposit the proceeds
from the sale thereof, and any other available funds or re-
sources, directly with a place of payment (paying agent) for
the Refunded Bonds, and such deposit, if made before such
payment dates, shall constitute the making of firm banking
and financial arrangements for the discharge and final
payment of the Refunded Bonds; and
WHEREAS, Article 717k further authorizes the Issuer to
enter into an escrow agreement with any paying agent for the
Refunded Bonds with respect to the safekeeping, investment,
reinvestment, administration and disposition of any such
deposit, upon such terms and conditions as the Issuer and
such paying agent may agree, provided that such deposits may
be invested and reinvested only in direct obligations of the
United States of America, including obligations the princi-
pal of and interest on which are unconditionally guaranteed
by the United States of America, and which shall mature and
bear interest payable at such times and in such amounts as
will be sufficient to provide for the scheduled payment or
prepayment of the Refunded Bonds; and
WHEREAS, MBank Round Rock or First City Bank of Dallas
are the paying agents for the Series 1980-A Bonds, Series
1981-B Bonds and Series 1982 Certificates and First City
National Bank of Austin is the paying agent for the Series
1983 Bonds, the Series 1985 Bonds, the Series 1985-A Bonds
and the Series 1985 Certificates, and the Escrow Agreement
hereinafter authorized constitutes an escrow agreement of
the kind authorized and permitted by said Article 717k; and
WHEREAS, the City Council of the Issuer deems it
advisable to refund the Refunded Bonds in order to achieve a
consolidation and restructuring of the debt service require-
ments of the Issuer and a present value savings on the debt
service requirements of the Issuer and to restructure the
Issuer's cash flow; and
WHEREAS, all the Refunded Bonds mature or are subject
to redemption prior to maturity within 20 years of the date
of the bonds hereinafter authorized; and
WHEREAS, the Issuer deems it appropriate that the
Series 1980-A Bonds be called for redemption on August 1,
1995, the Series 1981-B Bonds be called for redemption on
August 1, 1996 (except for the Series 1981-B Bonds which
mature on August 1, 2000 and August 1, 2001), the Series
1983 Bonds be called for redemption on August 1, 1993, the
Series 1985 Bonds be called for redemption on August 1,
1995, the Series 1985-A Bonds be called for redemption on
August 1, 1995, the Series 1982 Certificates be called for
redemption on August 1, 1992 and the Series 1985 Certifi-
cates be called for redemption on August 1, 1995.
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ROUND ROCK:
Section 1. AMOUNT AND PURPOSE OF THE BONDS. The bonds
of the City of Round Rock (the "Issuer") are hereby author-
ized to be issued and delivered in the aggregate principal
amount of $22,550,000 FOR THE PURPOSE OF PROVIDING FUNDS TO
REFUND PART OF THE ISSUER'S OUTSTANDING TAX BONDS AND ITS
OUTSTANDING COMBINATION TAX AND REVENUE CERTIFICATES OF
OBLIGATION (all as described in the preamble hereto).
Section 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS
AND MATURITIES OF BONDS. Each Bond issued pursuant to this
Ordinance shall be designated: "CITY OF ROUND ROCK, TEXAS
GENERAL OBLIGATION REFUNDING BONDS, SERIES 1987," and
initially there shall be issued and delivered hereunder
fully registered bonds, without interest coupons, dated
March 15, 1987, in the respective denominations and princi-
pal amounts hereinafter stated, numbered consecutively from
R-1 upward, payable to the respective initial registered
owners thereof (as designated in Section 13 hereof), or to
the registered assignee or assignees of said bonds or any
portion or portions thereof (in each case, the "Registered
Owner"), and said bonds shall mature and be payable serially
on August 1 in each of the years and in the principal
amounts, respectively as set forth in the following
schedule:
YEAR AMOUNT YEAR
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
$ 335,000
130,000
135,000
140,000
145,000
285,000
355,000
550,000
565,000
1,800,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
AMOUNT
$2,135,000
2,270,000
2,630,000
1,930,000
1,600,000
1,695,000
1,810,000
1,960,000
2,080,000
The term "Bonds" as used in this Ordinance -shall mean and
include collectively the bonds initially issued and deliv-
ered pursuant to this Ordinance and all substitute bonds ex-
changed therefor, as well as all other substitute bonds and
replacement bonds issued pursuant hereto, and the term
"Bond" shall mean any of the Bonds.
Section 3. INTEREST. The Bonds scheduled to mature
during the years, respectively, set forth below shall bear
interest from the dates specified in the FORM OF BOND set
forth in this Ordinance to their respective dates of
maturity, or redemption prior to maturity, at the following
rates per annum:
Said
the
Maturity
Maturity
Maturity
Maturity
Maturity
Maturity
Maturity
Maturity
Maturity
Maturity
1987,
1988,
1989,
1990,
1991,
1992,
1993,
1994,
1995,
1996,
4.00%
4.25%
4.50%
4.75%
5.00%
5.20%
5.40%
5.60%
5.80%
6.00%
Maturity 1997, 6.20%
Maturity 1998, 6.40%
Maturity 1999, 6.50%
Maturity 2000, 6.60%
Maturity 2001, 6.70%
Maturity 2002, 6.80%
Maturity 2003, 7.00%
Maturity 2004, 7.00%
Maturity 2005, 7.00%
interest shall be payable in the manner provided and
on
dates stated in the FORM OF BOND set forth in this
Ordinance.
Section 4. CHARACTERISTICS OF THE BONDS. Registra-
tion, Transfer, Conversion and Exchange; Authentication.
(a) The Issuer shall keep or cause to be kept at the
principal corporate trust office of MBank Austin, N.A.,
Austin, Texas (the "Paying Agent/Registrar") books or
records for the registration of the transfer, conversion and
exchange of the Bonds (the "Registration Books"), and the
Issuer hereby appoints the Paying Agent/Registrar as its
registrar and transfer agent to keep such books or records
and make such registrations of transfers, conversions and
exchanges under such reasonable regulations as the Issuer
and Paying Agent/Registrar may prescribe; and the Paying
Agent/Registrar shall make such registrations, transfers,
conversions and exchanges as herein provided. The Paying
Agent/Registrar shall obtain and record in the Registration
Books the address of the Registered Owner of each Bond to
which payments with respect to the Bonds shall be mailed, as
herein provided; but it shall be the duty of each Registered
Owner to notify the Paying Agent/Registrar in writing of the
address to which payments shall be mailed, and such interest
payments shall not be mailed unless such notice has been
given. To the extent possible and under reasonable circum-
stances, all transfers of Bonds shall be made within three
business days after request and presentation thereof. The
Issuer shall have the_ right to inspect the Registration
Books during regular business hours of the Paying Agent/Reg-
istrar, but otherwise the Paying Agent/Registrar shall keep
the Registration Books confidential and, unless otherwise
required by law, shall not permit their inspection by any
other entity; The Paying Agent/Registrar's standard or
customary fees and charges for making such registration,
transfer, conversion, exchange and delivery of a substitute
Bond or Bonds shall be paid as provided in the FORM OF BOND
set forth in this Ordinance. Registration of assignments,
transfers, conversions and exchanges of Bonds shall be made
in the manner provided and with the effect stated in the
FORM OF BOND set forth in this Ordinance. Each substitute
Bond shall bear a letter and/or number to distinguish it
from each other Bond.
An authorized representative of the Paying Agent/Regis-
trar shall, before the delivery of any such Bond, date and
manually sign the Paying Agent/Registrar's Authentication
Certificate, and no such Bond shall be deemed to be issued
or outstanding unless such Certificate is so executed. The
Paying Agent/Registrar promptly shall cancel all paid Bonds
and Bonds surrendered for conversion and exchange. No addi-
tional ordinances, orders, or resolutions need be passed or
adopted by the governing body of the Issuer or any other
body or person so as to accomplish the foregoing conversion
and exchange of any Bond or portion thereof, and the Paying
Agent/Registrar shall provide for the printing, execution,
and delivery of the substitute Bonds in the manner pre-
scribed herein, and said Bonds shall be of type composition
printed on paper with lithographed or steel engraved borders
of customary weight and strength. Pursuant to Article
717k-6, and particularly Section 6 thereof, the duty of
conversion and exchange of Bonds as aforesaid is hereby
imposed upon the Paying Agent/Registrar, and, upon the
execution of said Certificate, the converted and exchanged
Bond shall be valid, incontestable, and enforceable in the
same manner and with the same effect as the Bonds which
initially were issued and delivered pursuant to this Ordin-
ance, approved by the Attorney General, and registered by
the Comptroller of Public Accounts.
e
(b) Payment of Bonds and Interest. The Issuer hereby
further appoints the Paying Agent/Registrar to act as the
paying agent for paying the principal of and interest on the
Bonds, all as provided in this Ordinance. The Paying
Agent/Registrar shall keep proper records of all payments
made by the Issuer and the Paying Agent/Registrar with
respect to the Bonds.
(c) In General. The Bonds (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 transferred
and assigned, (iii) may be converted and exchanged for other
Bonds, (iv) shall have the characteristics; (v) shall be
signed, sealed, executed and authenticated, (vi) shall be
payable as to principal and interest, (vii) may be redeemed
prior to their scheduled maturity (notice of which shall be
given to the Paying Agent/Registrar by the Issuer at least
30 days prior to any such redemption date) and (viii) shall
be administered and the Paying Agent/Registrar and the
Issuer shall have certain duties and responsibilities with
respect to, all as provided, and in the manner and to the
effect as required or indicated, in the FORM OF BOND set
forth in this Ordinance. The Bonds initially issued and
delivered pursuant to this Ordinance are not required to be,
and shall not be, authenticated by the Paying Agent/Regis-
trar, but on each substitute Bond issued in conversion of
and exchange for any Bond or Bonds issued under this Ordi-
nance the Paying Agent/Registrar shall execute the PAYING
AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE, in the form
set forth in the FORM OF BOND.
(d) Substitute Paying Agent/Registrar. The Issuer
covenants with the Registered Owners of the Bonds that at
all times while the Bonds are outstanding the Issuer will
provide a competent and legally qualified bank, trust
company, financial institution, or other agency to act as
and perform the services of Paying Agent/Registrar for the
Bonds under this Ordinance, and that the Paying Agent/Reg-
istrar will be one entity and shall be an entity registered
with the Securities and Exchange Commission. The Issuer
reserves the right to, and may, at its option, change the
Paying Agent/Registrar upon not less than 120 days written
notice to the Paying Agent/Registrar, to be effective not
later than 60 days prior to the next principal or interest
payment date after such notice. 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 Issuer coven-
ants that promptly it will appoint a competent and legally
qualified bank, trust company, financial institution, or
other agency 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 Issuer. Upon any change in the Paying
Agent/Registrar, the Issuer 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, first-class 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.
Section 6. FORM OF BONDS. The form of the Bonds,
including the form of Paying Agent/Registrar's Authentica-
tion Certificate, the form of Assignment and the form of
Registration Certificate of the Comptroller of Public
Accounts of the State of Texas to be attached to the Bonds
initially issued and delivered pursuant to this Ordinance,
shall be, respectively, substantially as follows, with such
appropriate variations, omissions, or insertions as are
permitted or required by this Ordinance.
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WILLIAMSON
CITY OF ROUND ROCK
GENERAL OBLIGATION REFUNDING BONDS
SERIES 1987
NO. R -
PRINCIPAL
AMOUNT
INTEREST RATE MATURITY DATE ORIGINAL ISSUE CUSIP NO.
March 15, 1987
ON THE MATURITY DATE specified above, CITY OF ROUND
ROCK, in Williamson County, Texas (the "Issuer"), being a
political subdivision of the State of Texas, hereby promises
to pay to
(hereinafter called the "Registered Owner") the principal
amount of
and to pay interest thereon from March 15, 1987, on
August 1, 1987 and semiannually on each February 1 and
August 1 thereafter to the maturity date specified above at
7
the interest rate per annum specified above, or the date of
redemption prior to maturity, at the interest rate per annum
specified above; except that if this Bond is required to be
authenticated and the date of its authentication is later
than the first Record Date (hereinafter defined), such
principal amount shall bear interest from the interest
payment date next preceding the date of authentication,
unless such date of authentication is after any Record Date
but on or before the next following interest payment date,
in which case such principal amount shall bear interest from
such next following interest payment date; provided, how-
ever, that if on the date of authentication hereof the
interest on the Bond or Bonds, if any, for which this Bond
is being exchanged or converted from is due but has not been
paid, then this Bond shall bear interest from the date to
which such interest has been paid in full.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable
in lawful money of the United States of America, without
exchange or collection charges. The principal of this Bond
shall be paid to the registered owner hereof upon presenta-
tion and surrender of this Bond at maturity, at the princi-
pal corporate trust office of MBank Austin, N.A., Austin,
Texas, which is the "Paying Agent/Registrar" for this Bond.
The payment of interest on this Bond shall be made by the
Paying Agent/Registrar to the registered owner hereof on
each interest payment date by check or draft, dated as of
such interest payment date, drawn by the Paying Agent/Regis-
trar on, and payable solely from, funds of the Issuer
required by the order authorizing the issuance of the Bonds
(the "Bond Ordinance") to be on deposit with the Paying
Agent/Registrar for such purpose as hereinafter provided;
and such check or draft shall be sent by the Paying Agent/
Registrar by United States mail, first-class postage pre-
paid, on each such interest payment date, to the registered
owner hereof, at its address as it appeared on the fifteenth
day of the month next preceding each such date (the "Record
Date") on the Registration Books kept by the Paying Agent/
Registrar, as hereinafter described. Any accrued interest
due at maturity as provided herein shall be paid to the
registered owner upon presentation and surrender of this
Bond for payment at the principal corporate trust office of
the Paying Agent/Registrar. The Issuer covenants with the
registered owner of this Bond that on or before each princi-
pal payment date, interest payment date, and accrued inter-
est payment date for this Bond it will make available to the
Paying Agent/Registrar, from the "Interest and Sinking Fund"
created by the Bond Ordinance, the amounts required to
provide for the payment, in immediately available funds, of
all principal of and interest on the Bonds, when due.
IF THE DATE for any payment due on this Bond shall be a
Saturday, Sunday, a legal holiday, or a day on which banking
8
institutions in the city where the principal corporate trust
office of the Paying Agent/Registrar is located are autho-
rized by law or executive order to close, or the United
States Postal Service is not open for business, 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, or the
United States Postal Service is not open for business; 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 dated as of
March 15, 1987, authorized in accordance with the Constitu-
tion and laws of the State of Texas in the principal amount
of $22,550,000 for the purpose of providing funds to refund
part of the Issuer's outstanding City of Round Rock, Texas
General Obligation Bonds, Series 1980-A, Series 1981-B,
Series 1983, Series 1985, and Series 1985-A and City of
Round Rock, Texas Combination Tax and Revenue Certificates
of Obligation, Series 1982 and Series 1985.
ON AUGUST 1, 1997 or on any interest payment date
thereafter, the Bonds of this Series 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, and, if in part, the particular Bonds,
or portions thereof, to be redeemed shall be selected by the
Paying Agent/ Registrar and approved by the Issuer (provided
that a portion of a Bond may be redeemed only in an author-
ized denomination), at a redemption price equal to the
principal amount to be redeemed plus accrued interest to the
date fixed for redemption.
AT LEAST 30 days prior to the date fixed for any
redemption a written notice of such redemption shall be
given to the Registered Owner of each Bond or a portion
thereof being called for redemption by depositing such
notice in the United States Mail, postage prepaid, addressed
to each such Registered Owner at his address shown on the
Bond registration books of the Paying Agent/Registrar. By
the date fixed for any such redemption due provision shall
be made by the City with the Paying Agent/Registrar for the
payment of the required redemption price for the Bonds or
the portions thereof which are to be so redeemed, plus
accrued interest thereon to the date fixed for redemption.
If such written notice of redemption is given, and if due
provision for such payment 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, 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
A
Paying Agent/Registrar out of the funds provided for such
payment. 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 authorized
denomination or denominations, at the written request of the
Registered Owner, and in aggregate principal amount equal to
the unredeemed portion thereof, will be issued to the
Registered Owner upon the surrender thereof for cancella-
tion, at the expense of the Issuer, all as provided in the
Bond Ordinance.
ALL BONDS OF THIS SERIES are issuable solely as fully
registered Bonds, without interest coupons, in the denomina-
tion of any integral multiple of $5,000. Asprovidedin the
Bond Ordinance, this Bond, may, at the request of the
Registered Owner or the assignee or assignees hereof, be
assigned, transferred, converted into 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 denomination or denominations in any inte-
gral 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 for cancellation, all in accordance with the
form and procedures set forth in the Bond 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 registered. The 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 one requesting such conversion and exchange
shall pay the Paying Agent/Registrar's reasonable standard
or customary fees and charges for converting 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, conversion or exchange, as a condition precedent
to the exercise of such privilege. The foregoing notwith-
standing, in the case of the conversion and exchange of a
portion of a Bond which has been redeemed prior to maturity,
as provided herein, and in the case of the exchange of an
assigned and transferred Bond or Bonds or any portion or
portions thereof, such fees and charges of the Paying
10
Agent/Registrar will be paid by the Issuer. The Paying
Agent/Registrar shall not be required to make any such
transfer, conversion, or exchange (i) during the period
commencing with the close of business on any Record Date and
ending with the opening of business on the next following
principal or interest payment date, or, (ii) with respect to
any Bond or any portion thereof called for redemption prior
to maturity, within 30 days prior to its redemption date .
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 Bond Ordinance
that it promptly will appoint a competent and legally
qualified substitute -therefor, and cause written notice
thereof to be mailed to the Registered Owners of the Bonds.
IT IS HEREBY certified, recited, and covenanted that
this Bond has been duly and validly authorized, issued, and
delivered; that all acts, conditions, and things required or
proper to be performed, exist, and be done precedent to or
in the authorization, issuance and delivery of this Bond
have been performed, existed, and been done in accordance
with law; that this Bond is a general obligation of the
Issuer, issued on the full faith and credit thereof; and.
that ad valorem taxes sufficient to provide for the payment
of the interest on and principal of this Bond, as such
interest comes due, and as such principal matures, have been
levied and ordered to be levied against all taxable property
in the Issuer, and have been pledged for such payment,
within the limit prescribed by law.
BY BECOMING the Registered Owner of this Bond, the
Registered Owner thereby acknowledges all of the terms and
provisions of the Bond Ordinance, agrees to be bound by such
terms and provisions, acknowledges that the Bond 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 Bond Ordinance constitute a contract between
each Registered Owner hereof and the Issuer.
IN WITNESS WHEREOF, the Issuer has caused this Bond to
be signed with the facsimile signature of the Mayor of the
Issuer and countersigned with the facsimile signature of the
City Secretary of the Issuer, and has caused the official
seal of the Issuer to be duly impressed, or placed in
facsimile, on this Bond.
(facsimile signature) (facsimile signature)
City Secretary Mayor
(SEAL)
11
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR' S AUTHENTICATION CERTIFICATE
(To be executed if this Bond is not accompanied by an
executed Registration Certificate of the Comptroller
of Public Accounts of the State of Texas)
It is hereby certified that this Bond has been issued
under the provisions of the Bond Ordinance described in the
text of this Bond; and that this Bond has been issued in
conversion or replacement of, or in exchange for, a bond,
bonds, or a portion of a bond or bonds of --a Series 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
MBANK AUSTIN, N.A.
Paying Agent/Registrar
By
Authorized Representative
FORM OF ASSIGNMENT:
ASSIGNMENT
For value received, the undersigned hereby sells, assigns
and transfers unto
Please insert Social Security or Taxpayer
Identification Number of Transferee
(Please print or typewrite name and address,
including zip code of Transferee)
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney, to register the transfer of the within Bond on the
books kept for registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
12
NOTICE: Signature(s) must
be guaranteed by a member
firm of the New York Stock
Exchange or a commercial
bank or trust company.
NOTICE: The signature above
must correspond with the
name of the registered owner
as it appears upon the front
of this Bond in every par-
ticular, without alteration
or enlargement or any change
whatsoever.
FORM OF REGISTRATION CERTIFICATE OF
THE COMPTROLLER OF PUBLIC ACCOUNTS:
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
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 that this Bond has been
registered by the Comptroller of Public Accounts of the
State of Texas.
Witness my signature and seal this
Comptroller of Public Accounts
of the State of Texas
(COMPTROLLER' S SEAL)
Section 6. TAX LEVY. A special Interest and Sinking
Fund (the "Interest and Sinking Fund") is hereby created
solely for the benefit of the Bonds, and the Interest and
Sinking Fund shall be established and maintained by the
Issuer at an official depository bank of the Issuer. The
Interest and Sinking Fund shall be kept separate and apart
from all other funds and accounts of the Issuer, and shall
be used only for paying the interest on and principal of the
Bonds. All ad valorem taxes levied and collected for and on
account of the Bonds shall be deposited, as collected, to
the credit of the Interest and Sinking Fund. During each
year while any of the Bonds or interest thereon are out-
standing and unpaid, the governing body of the Issuer shall
compute and ascertain a rate and amount of ad valorem tax
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 and maintain a sinking fund
adequate to pay the principal of its Bonds as such principal
matures; and said tax shall be based on the latest approved
tax rolls of the Issuer, with full allowance being made for
tax delinquencies and the cost of tax collection. Said rate
and amount of ad valorem tax is hereby levied, and is hereby
ordered to be levied, against all taxable property in the
13
Issuer for each year while any of the Bonds or interest
thereon are outstanding and unpaid; and said 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 sufficient to provide for the payment of the
interest on and principal of the Bonds as such interest
comes due and such principal matures are hereby pledged for
such payment, within the limit prescribed by law.
Section 7. DEFEASANCE OF BONDS. (a) Any Bond and the
interest thereon shall be deemed to be paid, retired, and no
longer outstanding (a "Defeased 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 Obliga-
tions which mature as to principal and interest in such
amounts and at such times as will insure the availability,
without reinvestment, of sufficient money to provide for
such payment, and when proper arrangements have been made by
the Issuer 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 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/Reg-
istrar may at the written direction of the Issuer also be
invested in Government Obligations, maturing in the amounts
and times as hereinbefore set forth, and all income from
such Government 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 Issuer,
or deposited as directed in writing by the Issuer.
(c) The term "Government Obligations" as used in this
Section, 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 Trea-
sury obligations such as its State and Local Government
Series, which may be in book -entry form.
14
(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 Issuer
shall make proper arrangements to provide and pay for such
services as required by this Ordinance.
Section 8. DAMAGED, MUTILATED, LOST, STOLEN, OR
DESTROYED BONDS. (a) Replacement Bonds. 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 Bonds. Application
for replacement of damaged, mutilated, lost, stolen, or
destroyed Bonds shall be made by the registered owner
thereof to the Paying Agent/Registrar. In every case of
loss, theft, or destruction of a Bond, the Registered Owner
applying for a replacement bond shall furnish to the Issuer
and to the Paying Agent/Registrar such security or indemnity
as may be required by them to save each of them harmless
from any loss or damage with respect thereto. Also, in
every case of loss, theft, or destruction of a Bond, the
Registered Owner shall furnish to the Issuer and to the
Paying Agent/Registrar evidence to their satisfaction of the
loss, theft, or destruction of such Bond. In every case of
damage or mutilation of a Bond, the Registered Owner shall
surrender to the Paying Agent/Registrar for cancellation the
Bond so damaged or mutilated.
(c) No Default Occurred. Notwithstanding the fore-
going 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 or
interest on the Bond, the Issuer may authorize the payment
of the same (without surrender thereof except in the case of
a damaged or mutilated Bond) instead of issuing a replace-
ment Bond, provided security or indemnity is furnished as
above provided in this Section.
(d) Charge for Issuing Replacement Bonds. Prior to
the issuance of any replacement bond, the Paying Agent/Reg-
istrar shall charge the Registered 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 Issuer 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
15
the benefits of this Ordinance equally and proportionately
with any and all other Bonds duly issued under this
Ordinance.
(e) Authority for Issuing Replacement Bonds. In
accordance with Section 6 of Article 717k-6, this Section 9
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 Issuer or any
other body or person, and the duty of the replacement of
such bonds is hereby authorized and imposed upon the Paying
Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such Bonds in the form and manner
and with the effect, as provided in Section 4(a) of this
Ordinance for Bonds issued in conversion and exchange for
other Bonds.
Section 9. CUSTODY, APPROVAL, AND REGISTRATION OF
BONDS; BOND COUNSEL'S OPINION, AND CUSIP NUMBERS. The Mayor
of the Issuer is hereby authorized to have control of the
Bonds initially issued and delivered hereunder 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 attached to such
Bonds, and the seal of said Comptroller shall be impressed,
or placed in facsimile, on such Certificate. The approving
legal opinion of the Issuer's Bond Counsel and the assigned
CUSIP numbers may, at the option of the Issuer, be printed
on the Bonds issued and delivered under this Ordinance, but
neither shall have any legal effect, and shall be solely for
the convenience and information of the Registered Owners of
the Bonds.
Section 10. COVENANTS REGARDING TAX EXEMPTION OF
INTEREST ON THE BONDS. (a) With respect to the Bonds and
the facilities financed or refinanced with such obligations,
either the "Trade or Business Test" or the "Security Inter-
est Test" is not met, or both such tests are not met.
(1) Trade or Business Test. The Trade or Business
Test is met if more than 10 percent of the proceeds are
to be used (directly or indirectly) for any "private
business use" by any person other than a governmental
unit.
(2) Security Interest Test. The Security Interest
Test is met if the payment of the principal of, or the
interest on, more than 10 percent of the proceeds of
16
the Bonds is (under the terms of the Bonds or any
underlying arrangement) directly or indirectly -
(A) secured by any interest in -
(i) property used or to be used for a
private business use, or
(ii) payments in respect of such prop-
erty, or
(B) to be derived from payments (whether or
not to the Issuer) in respect of property, or
borrowed money, used or to be used for a private
business use.
The term "private business use" means use (directly or in-
directly) in a trade or business carried on by a person
other than a governmental unit. For purposes of the preced-
ing sentence, use as a member of the general public shall
not be taken into account and any activity carried on by a
natural person shall not be taken into account. All activi-
ties of organizations subject to section 501(c)(3) of the
Internal Revenue Code of 1986 (the "Code"), the Federal
Government (including its agencies and instrumentalities),
and other nongovernmental persons who are not natural
persons are treated as trade or business activities.
(b) For purposes of the trade or business test, a
person may be a user of bond proceeds and bond -financed
property as a result of (1) ownership or (2) actual or
beneficial use of property pursuant to a lease, a management
or incentive payment contract, or (3) any other arrangement
such as a take -or -pay or other output -type contract. Use on
the same basis as the general public (including use as an
industrial customer) is not taken into account. However,
trade or business use by all persons on a basis different
from the general public is aggregated in determining if the
10 percent limit is met.
(c) For purposes of the trade or business test, use
pursuant to management contracts not exceeding five years
(including renewal options) is not treated as private
business use if -
(1) at least 50 percent of the compensation to
any manager other than a governmental unit is on a
periodic, fixed -fee basis;
(2) no amount of compensation is based on a share
of net profits; and
17
(3) the governmental unit owning the facility may
terminate the contract (without penalty) at the end of
any three year period.
(d) For purposes of the security interest test, both
direct and indirect payments made by any person (other than
a governmental unit) who is treated as using the proceeds of
the Bonds are counted. Such payments are counted whether or
not they are formally pledged as security or are directly
used to pay debt service on the Bonds. Similarly, payments
to persons other than the Issue -r may be considered. Reve-
nues from generally applicable taxes are not treated as
payments for purposes of the"- security interest test;
however, special charges imposed on persons -satisfying the
use test (but not on members of the public generally) are so
treated if the charges are in substance fees paid for the
use of bond proceeds.
(e) No more than 5 percent of the proceeds of the
Bonds will be used for any private business use test that is
not related to any governmental use of such proceeds. For
this purpose, the term "related" means a use for a facility
that is located within or adjacent to any governmental
facility to which it is related.
(f) No more than 5 percent of the proceeds of the
Bonds will be used for any private business use that is
disproportionate to the amount of such proceeds used for a
related governmental use. The determination of whether a
private use which is related to a government use also being
financed with the bond proceeds is disproportionate to the
government use to which such private use relates is deter-
mined by comparing the amount of bond proceeds used for the
related private and government uses. The related private
use is disproportionate to the related government use to the
extent it exceeds such use in amount. Multiple, related
private use facilities for any government use are treated as
one facility for purposes of this rule.
(g) The trade or business test and security interest
test are deemed to be met where 5 percent or more of the
proceeds of the Bonds are used with respect to any output
facility (other than a facility for the furnishing of water)
and the amount of proceeds so used exceeds the excess of -
(1)
f -
(1) $15 million, over
(2) the aggregate amount of proceeds with respect
to all prior tax-exempt issues 5 percent or more of the
proceeds of which are or will be used with respect to
such output facility (or any other facility which is
part of the same project) .
18
There shall not be taken into account under subparagraph (2)
above any bond which is not outstanding at the time of the
later issue or which is to be redeemed (other than in an
advance refunding) from the net proceeds of the later issue.
(h) The amount of proceeds of the Bonds which are to
be used (directly or indirectly) to make or finance loans to
persons other than governmental units will not exceed the
lesser of (a) 5 percent of such proceeds or (b) $5 million.
(i) The Issuer will not take any action which would
adversely affect the exemption from federal income taxation
of the interest paid on the Bonds, including without limita-
tion any action that would permit any of the Bonds to be
treated as "private activity bonds" within the meaning of
section 141 of the Code, or as "federally guaranteed" within
the meaning of section 149(b) of the Code, and will take, or
require to be taken, such acts as may be reasonably within
its ability and as may from time to time be required under
applicable law or regulation to continue to exempt from
federal income taxation the interest on the Bonds, including
the preparation and filing of any statements or information
reports required to be filed by the Issuer in order to
maintain the tax-exempt status of the interest on the Bonds.
(j) The Issuer has not taken, has no present intention
of taking any action and knows of no action taken or
intended which would cause interest on the Bonds to be
includable in the gross income of any bondholders for
federal income tax purposes.
Section 11. COVENANTS REGARDING ARBITRAGE. (a) A
Rebate Fund is hereby established by the Issuer. Such Fund
shall be for the sole benefit of the United States of
America and shall not be subject to the claim of any other
person, including without limitation the Registered Owners.
The Rebate Fund is established for the purpose of compliance
with section 148 of the Code.
(b) At the close of each "Bond Year," the Issuer shall
compute the amount of "Excess Earnings," if any, for the
period beginning on the date of delivery of the Bonds and
ending at the close of such "Bond Year" and transfer an
amount equal to the difference, if any, between the amount
then in the Rebate Fund and the Excess Earnings so computed.
The term "Bond Year" means with respect to the Bonds each
one-year period ending on the anniversary of the date of
delivery of the Bonds. If, at the close of any Bond Year,
the amount in the Rebate Fund exceeds the amount that would
be required to be paid to the United States of America under
paragraph (d) below if the Bonds had been paid in full, such
excess may be transferred from the Rebate Fund and paid to
the Issuer.
19
(c) In general, "Excess Earnings" for any period of
time means the sum of
(i) the excess of --
(A) the aggregate amount earned during such
period of time on all "Nonpurpose Obligations"
(including gains on the disposition of such
Obligations) in which "Gross Proceeds" of the
issue are invested (other than amounts attributa-
ble to an excess described in this subparagraph
(c)(i)), over
(B) the amount that would have been earned
during such period of time if the "Yield" on such
Nonpurpose Obligations (other than amounts
attributable to an excess described in this
subparagraph (c)(i) had been equal to the yield on
the issue, plus
(ii) any income during such period of time attrib-
utable to the excess described in subparagraph (c)(i)
above.
"Excess Earnings" will not include amounts, if any, which
need not be taken into account under the special rules of
section 148(f)(4)(A) and (B) of the Code relating to bona
fide debt service funds and the six-month temporary invest-
ment period. The terms "Nonpurpose Obligations," "Gross
Proceeds" and "Yield" shall have the meanings prescribed by
section 148 of the Code and shall be applied in the manner
prescribed in such section.
(d) The Issuer shall pay to the United States of
America at least once every five -years an amount that
ensures that at least 90 percent of the Excess Earnings from
the date of delivery of the Bonds to the close of the period
for which the payment is being made will have been paid.
The Issuer shall pay to the United States of America not
later than 60 days after the Bonds have been paid in full
100 percent of the amount then required to be paid under
section 148(f) of the Code as a result of Excess Earnings.
(e) The Issuer shall keep such records as will enable
the Issuer to fulfill its responsibilities under this
section and section 148(f) of the Code and shall retain such
records for at least six years following the final payment
of principal and interest on the Bonds.
(f) The Issuer will not use any portion of the pro-
ceeds of the Bonds directly or indirectly to acquire "higher
yielding investments," or to replace funds which were used
directly or indirectly to acquire "higher yielding invest-
ments." The term higher yielding investments means any
20
investment property (as defined in section 148(b)(2) of the
Code) which produces a yield over the term of the issue
which is materially higher than the yield on the issuer (as
defined above). The foregoing limitation on higher yielding
investments shall not apply to --
(1) proceeds of the Bonds invested for a reason-
able temporary period of 3 years 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 if the gross earnings on such fund are less than
$100,000 in any bond year, and
(3) amounts in any reasonably required reserve or
replacement fund which are (a) funded with the proceeds
of the Bonds, and (b) not in excess of 10 percent of
the proceeds of the Bonds.
(g) The Issuer covenants to restrict the use of Bond
proceeds in such manner and to such extent, as may be
necessary, so that the Bonds will not constitute arbitrage
bonds under section 148 of the Code and, to the extent
applicable, section 149(d) of the Code (relating to advance
refundings). Any authorized representative of the Issuer
having responsibility with respect to the issuance of the
Bonds is authorized and directed, alone or in conjunction
with any other official, employee or consultant of the
Issuer to give an appropriate certificate on behalf of the
Issuer, for inclusion in the transcript of proceedings for
the Bonds, setting forth the facts, estimates and
circumstances and reasonable expectations pertaining to
section 148 of the Code and, to the extent applicable,
section 149(d) of the Code.
(h) The requirements of this Section are subject to,
and shall be interpreted in accordance with section 148 of
the Code.
Section 13. SALE OF BONDS. The Bonds are hereby sold
and shall be delivered to Prudential-Bache Capital Funding
and Texas Capital Markets Incorporated (the "Underwriters"),
at a price of $22,234,300 plus accrued interest thereon to
date of delivery, pursuant to the terms and provisions of a
Purchase Contract in substantially the form attached hereto
as Exhibit B which the Mayor of the Issuer is hereby autho-
rized and directed to execute and deliver and which the City
Secretary of the Issuer is hereby authorized and directed to
attest. It is hereby officially found, determined, and
declared that the terms of this sale are the most
advantageous reasonably obtainable. The Bonds shall
initially be registered in the name of Prudential-Bache
Capital Funding.
21
}
Section 14. PURPOSE OF REFUNDING BONDS. The Issuer
hereby finds that it is necessary to refund the Refunded
Bonds in order to achieve a consolidation and restructuring
of the debt service requirements of the Issuer and a present
value savings on the debt service requirements of the Issuer
and to restructure the Issuer's cash flow.
Section 15. APPROVAL OF OFFICIAL STATEMENT. The
Issuer hereby approves the form and content of the Official
Statement relating to the Bonds and any addenda, supplement
or amendment thereto, and approves the distribution of such
Official Statement in the reoffering of the Bonds by the
Underwriters in final form, with such changes therein or
additions thereto as the officer executing the same may deem
advisable, such determination to by conclusively evidenced
by his execution thereof.
Section 16. APPROVAL OF ESCROW AGREEMENT AND TRANSFER
OF FUNDS. The Mayor of the Issuer is hereby authorized and
Tirected to execute and deliver and the City Secretary of
the Issuer is hereby authorized and directed to attest an
Escrow Agreement in substantially the form attached hereto
as Exhibit B. In addition, the Mayor is authorized to
execute such subscriptions for the purchase of United States
Treasury Securities, State and Local Government Series, as
may be necessary for the Escrow Fund. In addition, offi-
cials of the Issuer are directed, upon delivery of the
Bonds, to transfer to First City National Bank of Austin,
Austin, Texas as Escrow Agent under the Escrow Agreement
from the funds on hand an amount necessary to purchase such
investments, which amount shall be deposited in the Escrow
Fund and used in accordance with the provisions of the
Escrow Agreement.
Section 17. NOTICE OF REDEMPTION. There is attached
to this Order as Exhibit D and made a part hereof for all
purposes a Notice of Prior Redemption of Bonds for the
Refunded Bonds to be redeemed prior to stated maturity and
such Bonds described on said Notice of Prior Redemption are
hereby called for redemption and shall be redeemed prior to
maturity on the date, place and at the price as set forth
therein.
Section 18. NOTICE TO PAYING AGENT AND REGISTERED
OWNERS AND PUBLICATION. The Refunded Bonds described in
Exhibit D attached hereto are so called for redemption and
First City National Bank of Austin, Austin, Texas is hereby
directed to make appropriate arrangements so that such
Refunded Bonds may be redeemed at said bank named in the
Notice of Redemption on the redemption date. A copy of such
Notice of Prior Redemption shall be delivered to the paying
agent bank so mentioned, and a copy of such Notice of Prior
Redemption shall be published in a financial publication
published in the City of New York, New York.
22
Section 19. SEVERABILITY. That the provisions of this
Ordinance are severable; and in case any one or more of the
provisions of this Ordinance or the application thereof to
any person or circumstance should be held to be invalid,
unconstitutional, or ineffective as to any person or circum-
stance, the remainder of this Ordinance nevertheless shall
be valid, and the application of any such invalid provision
to persons or circumstances other than those as to which it
is held invalid shall not be affected thereby.
Section 20. EFFECTIVE DATE. This Ordinance shall
become effective immediately upon passage as an emergency
ordinance.
23
EXHIBIT A
PURCHASE CONTRACT
The Purchase Contract has been omitted at this point as
it appears in executed form elsewhere in this transcript.
EXHIBIT C
ESCROW AGREEMENT
The Escrow Agreement has been omitted at this point as
it appears in executed form elsewhere in this transcript.
EXHIBIT D
NOTICE OF PRIOR REDEMPTION
NOTICE IS HEREBY GIVEN that the City of Round Rock,
Texas has called for redemption the outstanding Bonds of the
City described as follows:
City of Round Rock, Texas General Obligation Bonds,
Series 1980-A, Bonds maturing on August 1 in the years
1996 through 2000, aggregating $1,125,000 in principal
amount; call date: August 1, 1995; redeemable at par
plus accrued interest at MBank Round Rock, Round Rock,
Texas or First City Bank of Dallas, Dallas, Texas.
On August 1, 1995 interest on the bonds shall cease to
accrue and be payable.
City of Round Rock, Texas General Obligation Bonds,
Series 1981-B, Bonds maturing on August 1 in the years
1997 through 1999, aggregating $700,000 in principal
amount; call date: August 1, 1996; redeemable at par
plus accrued interest at MBank Round Rock, Round Rock,
Texas or First City Bank of Dallas, Dallas, Texas.
On August 1, 1996 interest on the bonds shall cease to
accrue and be payable.
City of Round Rock, Texas Combination Tax and Revenue
Certificates of Obligation, Series 1982, Certificates
maturing on August 1 in the years 1993 through 1997,
aggregating $335,000 in principal amount; call date:
August 1, 1992; redeemable at par plus accrued interest
at MBank Round Rock or First City Bank of Dallas,
Dallas, Texas.
On August 1, 1992 interest on the certificates shall
cease to accrue and be payable.
City of Round Rock, Texas General Obligation Bonds,
Series 1983, Bonds maturing on August 1 in the years
1994 through 2000, aggregating $2,025,000 in principal
amount; call date: August 1, 1993; redeemable at par
plus accrued interest at First City National Bank of
Austin, Austin, Texas.
On August 1, 1993 interest on the bonds shall cease to
accrue and be payable.
City of Round Rock, Texas Certificates of Obligation,
Series 1985, Certificates maturing on August 1 in the
years 1996 through 2005, aggregating $5,425,000 in
principal amount; call date: August 1, 1995; redeem-
able at par plus accrued interest at First City
National Bank of Austin, Austin, Texas.
On August 1, 1995 interest on the certificates shall
cease to accrue and be payable.
City of Round Rock, Texas General Obligation Bonds,
Series 1985-A, Bonds maturing on August 1 in the years
1996 through 2005, aggregating $8,825,000 in principal
amount; call date: August 1, 1995; redeemable at par
plus accrued interest at First City National Bank of
Austin, Austin, Texas.
On August 1, 1995 interest on the bonds shall cease to
accrue and be payable.
Mike Robinson, Mayor