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O-80-772 - 8/25/1980CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS IhE 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 25TH DAY OF AUGUST, 1980, at•the City Hall, and the roll was called of the duly constituted officers and members of said City Council, to -wit: Larry L. Tonn, Mayor Mike Robinson, Mayor Pro -Tem Joanne Land, City Secretary Graham Howell Pete Correa Joe Baker Lawrence "Hank" Hester Trudy L. Lee and all of said persons were present, except the following absentees: thus constituting a quorum. Whereupon, among other business, the following was transacted at said Meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS 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". NOES: 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 Certificate; 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 ;j notified officially 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 '4 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 25th day of Au V2ML/ y Secretary ' '""ayor SEAL ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS nit, STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK WHEREAS, the bonds hereinafter authorized were lawfully and favorably voted at elections duly held in said City on November 2, 1974, December 2, 1978, and November 6, 1979; and WHEREAS, out of bonds aggregating in the amount of $400,000 voted at the City's election held on November 2, 1974, the City has duly issued $330,000 thereof, represented by the City's bonds designated as Series 1975; and WHEREAS, out of bonds aggregating in the amount of $5,000,000 voted at the City's election held on December 2, • 1978, the City has duly issued $1,950,000 thereof, represented by the City's bonds designated as Series 1979, to -wit: $980,000 for constructing and improving the City's streets and purchasing right of way therefor, $95,000 for improving and permanently equipping the City's parks, $170,000 for acquiring a site for a sewer treatment plant, providing $550,00 for constructing and permanently equipping a municipal library building and providing $155,000 for acquiring, constructing and equipping a fire station; and WHEREAS, out of bonds aggregating in the amount of $500,000 voted at the City's election held on November 6, 1979, the City has duly issued $375,000 thereof, represented by the City's bonds designated as Series 1980, to -wit: $25,000 for constructing and improving the City's streets and purchasing right of way therefor, and $350,000 for improving and extending the Waterworks System; and WHEREAS, it is necessary and advisable to authorize, issue and deliver an installment or series of said bonds; and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Art. 1175 V.A.T.C.S. ROCK: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND Section 1. That said City's bonds are hereby authorized to be issued in the aggregate principal amount of $2,000,000 for the purpose of providing $70,000 for constructing bridge improvements for the Georgetown Street Bridge, providing $1,200,000 for constructing and improving the City's streets and purchasing right of way, providing $80,000 for improving and permanently equipping the City's parks, providing $500,000 for acquiring, and permanently equipping a fire station, and providing $150,000 for constructing street drainage improve- ments of said City. Section 2. That said bonds shall be designated as the CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1980-A. Section 3. That said bonds shall be dated September 1, 1980, shall be in the denomination of $5,000 each, shall be numbered consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule: MATURITY DATE: AUGUST 1 YEARS AMOUNTS YEARS AMOUNTS 1983 $25,000 1992 $125,000 1984 25,000 1993 125,000 1985 25,000 1994 125,000 1986 25,000 1995 200,000 1987 25,000 1996 200,000 1988 25,000 1997 225,000 1989 25,000 1998 225,000 1990 25,000 1999 225,000 1991 100,000 2000 250,000 Section 4. That the bonds scheduled to mature during the years, respectively, set forth below shall bear interest at the following rates per annum: maturities 1982 through 19 , maturities 19 through 19_, maturities 19 through 19, maturities 19 through 19 , maturities 19 through 19 maturities 19 through 19, maturities 19 through 19_, maturities 19 through 19 , maturities 19_ through 19, Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in the Ordinance. Section 5. That said bonds and interest coupons shall be issued, shall be payable, may be redeemed prior to their scheduled maturities, shall have the characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance. Section 6. That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows: NO. FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BOND SERIES 1980-A $5,000 ON AUGUST 1, , THE CITY OF ROUND ROCK, COUNTY OF WILLIAMSON, STATE OF TEXAS, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate of % per annum, evidenced by interest coupons payable on February 1, 1982, and semiannually thereafter while this bond is outstanding. THE PRINCIPAL of this bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at the following, which shall constitute and be defined as the Paying Agent for this Series of bonds: FARMERS STATE BANK, ROUND ROCK, TEXAS, or, at the option of the holder, at FIRST CITY BANK OF DALLAS, DALLAS, TEXAS THIS BOND is one of a Series dated as of September 1, 1980, authorized, issued and delivered in the principal amount of $2,000,000 for the purpose of providing $70,000 for constructing bridge improvements for the Georgetown Street Bridge, providing $1,200,000 for constructing and improving the City's streets and purchasing right of way, providing $80,000 for improving and permanently equipping the City's parks, providing $500,000 for acquiring, and permanently equipping a fire station, and providing $150,000 for constructing street drainage improvements of said City. ON AUGUST 1, 1995, or on any interest payment date thereafter, any outstanding bonds of this Series may be redeemed prior to their scheduled maturities, at the option of said City, in whole, or in part, for the principal amount thereof and accrued interest thereon to the date fixed for redemption. At least thirty days prior to the date fixed for any such redemption said City shall cause a written notice of such redemption to be published at least once in a financial publication published in the City of New York, New York. By the date fixed for any such redemption due provision shall be made with the Paying Agent for the payment of the principal amount of the bonds which are to be so redeemed and accrued interest thereon to the date fixed for redemption. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the bonds which are to be so redeemed thereby automatic- ally shall be redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstand- ing except for the right of the bearer to receive the redemp- tion price from the Paying Agent out of the funds provided for such payment. IT IS HEREBY certified, recited and covenanted that this bond has been duly and validly voted, 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 voting, authorizaton, 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 said City, issued on the full faith and credit thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this bond, as such interest comes due and such prinicpal matures, have been levied and ordered to be levied against all taxable property in said City, and have been pledged irrevocably for such payment, within the limit prescribed by law. IT WITNESS WHEREOF, this bond and the interest coupons apppertaining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile, on this bond. xxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE 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. NO. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON ON THE CITY OF ROUND ROCK, COUNTY OF WILLIAMSON, STATE OF TEXAS, promises to pay to bearer hereof the amount shown of this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer hereof, unless due provision has been made for the redemption prior to scheduled maturity of the bonds to which the interest coupon appertains, upon presentation and surren- der of this interest coupon, at the FARMERS STATE BANK, ROUND ROCK, TEXAS, or, at the option of the holder, at FIRST CITY BANK OF DALLAS, DALLAS, TEXAS, said amount being interest coming due that day on the bond, bearing the number herein- after designated, of that issue of CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1980-A, dated September 1, 1980. Bond No. XXXXX xxXXX City Secretary Mayor Section 7. That a special "Interest and Sinking Fund" is hereby created solely for the benefit of said bonds, and said Interest and Sinking Fund shall be established and maintained by said City at an official depository bank of said City. Said Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of said City, and shall be used only for paying the interest on and principal of said bonds. All ad valorem taxes levied and collected for and on account of said bonds shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid, the governing body of said City 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 said bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of such bonds as such principal matures (but never less than 2% of the original amount of said bonds as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of said City, 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 said City for each year while any of said bonds or interest coupons appertaining thereto 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 said bonds, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit prescribed by law. Section 8. That the Mayor of said City is hereby authorized to have control of said bonds and all necessary records and proceedings pertaining to said 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 registraton of said 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 printed and endorsed on each of said bonds, and the seal of said Comptroller shall be placed in facsimile, on each of said bonds. Section 9. That the City covenants to and with the purchasers of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the require- ments of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the bonds will not otherwise be used directly or indirectly so as to cause all or any part of the bonds to be or become arbitrage bonds within the meaning of the afore- said Section 103(c), or any regulations or ruling pertaining thereto. Section 10. That it is hereby officially found and determined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necessity being that the proceeds from the sale of said bonds are required as soon as possible and without delay for necessary and urgently needed public improvements; 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, as amended. Section 11. That said bonds are hereby sold and shall be delivered to for cash for the par value thereof and accrued interest thereon to the date of delivery, plus a premium of $ —0— . It is hereby officially found, deter- mined and declared that said purchaser is the highest and best bidder for for said bonds and that said bonds have been sold at public sale to the bidder offering the lowest net interest cost after receiving bids pursuant to an Official Notice of Sale and Official Statement, dated July 24, 1980, prepared and distributed in connection with the sale of the bonds. Said Official Notice of Sale and Official Statement have been and are hereby approved by the City Council. It is further officially found, determined and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all material respects, to the best knowledge and belief of the City Council. Section 12. That this Ordinance shall become effective upon its passage, since this is an authorization for borrowing for capital improvements. GENERAL CERTIFICATE THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK We, the undersigned officers of said City, hereby certify as follows: 1. That this certificate is executed for and on behalf of said City with reference to the issuance of the proposed CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1980-A, dated September 1, 1980, in the principal amount of 1 $2,000,000. 2. That said Cit is dulyincorporated Y a Home Rule City, having more than 5000 inhabitants, operating and existing under the Constitution and laws of the State of Texas and the duly adopted Home Rule Charter of said City, which Charter has not been changed or amended since its adoption on August 13, 1977. 3. That no litigation of any nature has ever been filed pertaining to, affecting, questioning, or contesting: (a) the ordinance which authorized said City's proposed bonds described in paragraph 1 of this certificate; (b) the issuance, execution, delivery, payment, security or validity of said proposed bonds, (c) the authority of the City Council and the officers of said City to issue, execute and deliver said bonds, (d) the validity of the corporate existence of said City, or (e) the current tax rolls of said City; and that no litigation is pending pertaining, affecting, questioning, or contesting the current boundaries of said City. 4. That attached to this certificate and marked Exhibit A is a true, full and correct schedule and statement of the aforesaid proposed bonds, and of all presently outstanding bonds of said City. 5. That in all matters relating to ordering, giving a notice, and holding the election at which the proposed bonds were authorized, the City complied with the Federal Voting Rights Act of 1975, and the applicable parts of the Texas Election Code, including particularly Section 1.08 of the Texas Election Code pertaining to bilingual requirements. 6. That the currently effective ad valorem tax rolls of said City are those for the year 1979, being the most recently approved tax rolls of said City; that said City has caused the taxable property in said City to be assessed as required by law; that the Board of Equalization of said City has equalized and approved the valuation of taxable property in said City for said year; that the tax assessor of said City has duly verified the aforesaid tax rolls, and said Board of Equalization has finally approved the same; and that the assessed value of taxable property in said City upon which the annual ad valorem tax of said City actually has been or will be levied (after deducting the amount of all exemptions, if any, under Section 1-b(b), and Section 2(b) of Article 8 of the Texas Constitution, and Article 7150h, V.A.T.C.S.), according to the aforesaid tax rolls for said year, as delivered to the City Secretary of said City, and finally approved and recorded by the City Council of said City, is $127,212,478. SIGNED AND SEALED this the 25th day of°ugust, 1980. y Secretary ayor SEAL EXHIBIT A General Obligation Bonds, Series 1980-A, dated September 1, 1980, to be outstanding in the principal amount of $2,000,000, bearing interest and maturing in the amounts and on the dates as stated in the ordinance authorizing said bonds. General Obligation Bonds, Series 1980, dated 5/1/80, now outstand- ing in the principal amount of $375,000, bearing interest and ma- turing in the amounts on August 1 of the years as follows: 10.50%: 30M-82/83 10.00%: 35M-84/85 9.25%: 40M-86 9.00%: 45M-87; 50M-88; 55M-89/90 General Obligation Bonds, Series 1970, dated 9/1/70, now outstanding in the principal amount of $17,000, bearing interest and maturing in the amounts on December 15 of the years as follows: 6.00%: 6M-80-81; 5M-82 General Obligation Bonds, Series 1975, dated 8/1/75, now outstanding in the principal amount of $319,000, bearing interest and maturing in the amounts on August 1 of the years as follows: 5.00%; 3M-81/83; 6.50%: 1OM-84 5.00%: 10M-85/90; 15M-91/99; 20M-2000/02; 25M-03; 20M-04 Certificates of Obligation, Series 1975, dated 8/1/75, now outstanding in the principal .amount of $59,000, bearing interest and maturing in the amounts on August 1 of the years as follows: 5.00%: 2M-81/2002; 3M-2003/07 Certificates of Obligation, Series 1976, dated 7/15/76, now outstanding in the principal amount of $35,000, bearing interest and maturing in the amounts on July 15 of the years as follows: 5.00%: 5M-81/87 Certificates of Obligation, Series 1978, dated 9/1/78, now outstanding in the principal amount of $295,000, bearing interest and maturing in the amounts on February 1 of the years as follows: 5.65%: 5M-81-82; 10M-83-84; 20M-84/87; 25M-88; 30M-89/94 General Obligation Bonds, Series 1979, dated 5/1/79, now outstanding in the principal amount of $1,950,000, bearing interest and maturing in the amounts on July 1 of the years as follows: 7.90%: 25M-81/83; 50M-84/86; 6.90%: 50M-87 5.40%: 50M--88; 75M-89-90 5.45%: 75M-91 5.50%: 75M-92 5.55%: 100M-93 5.60%: 100M-94 5.70%: 100M-95 5.80%: 100M-96 5.90%: 100M-97 6.00%: 125M-98 6.10%: 125M-99 6.20%: 125M-2000 6.25%: 150M-01/03 Certificates of Obligation, Series 1979, dated December 1, 1979, now outstanding in the principal amount of $270,000, bearing interest and maturing in the amounts on July 1 of the years as follows: 8.00°/,: 15M-82/85; 20M-86-87 6.75%: 20M-88 6.80%: 20M-89 6.90%: 25M-90 7.00%: 25M-91-92; 30M-94 AFFIDAVIT OF POSTING THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK BEFORE ME, a notary public in and for the above named County, on this day personally appeared the Affiant whose name is subscribed below, who, having been duly sworn says upon oath that on 8-19 , 1980, a true and correct copy of the attached and following NOTICE OF ELECTION was duly posted in the above named City at each of the public places as follows: City Hall Farmer State Bank First National Bank SUBSCRIBED AND SWORN TO BEFORE ME on Sept. 8 , 1980. N•�tary Public M Commission expires: -Z5 , 19801 NOTARY PUBLIC SEAL NO -ARBITRAGE CERTIFICATE THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK The undersigned, being the duly chosen and qualified Mayor and City Manager, respectively, of the City of Round Rock (the "City"), hereby certify with respect to that issue of City of Round Rock, Texas General Obligation Bonds, Series 1980-A, dated September 1, 1980, in the principal amount of $2,000,000 (the "bonds") as follows: 1. That we, along with other officers, are charged with the responsibility of issuing the bonds and expending the proceeds of the bonds. 2. that this certificate and covenant are made pur- suant to Sections 1.103-13, 1.103-14, and 1.103-15 of the Income Tax Regulations (the "Regulations") of the Internal Revenue Service with respect to arbitrage bonds as described in Section 103(c) of the Internal Revenue Code of 1954, as amended (the "Code"), and the words and phrases used herein have the same meanings as defined and used in the Regulations. 3. that this certificate is based on facts, estimates, and circumstances in existence on the date of this certi- ficate, which is the date of issue of the bonds, and on such basis it is reasonably expected that the following will occur with respect to the bonds, and, to the best knowledge and belief of the undersigned, such expectations are reason- able: (a) that the bonds are issued for the purpose of constructing and improving the City's streets, improving and permanently equipping the City's parks, acquiring, constructing and permanently equipping a fire station, constructing street drainage improvements and for constructing bridge improvements; (b) that the City will incur, within six months after the date of issue of the bonds, binding obli- gations to commence each of the projects, respectively, to be financed by the bonds, either by entering into contracts for the construction of such projects to be financed by the bonds, or by entering into contracts for architectural or engineering services for such projects, or contracts for land acquisition, site development, purchase of construction materials, or purchase of equipment, for such projects, or in case of services, will commit itself to make an equivalent expenditure for similar services by employees of the City, with the amount to be paid under each such con- tract and commitment with respect to each such project, respectively, to be in excess of two and one-half percent of the portion of the amounts received from the sale of the bonds allocated to each such project, respectively (with the aggregate amounts to be paid under all of such contracts to be in excess of two and one-half percent of all of the amounts received from the sale of the bonds); (c) that after entering into said contracts or making such commitments, work on all of such projects will proceed promptly with due diligence to completion; (d) that all of the amounts received from the sale of the bonds will be expended for the purposes of the bonds by the end of the three-year period beginning on the date of issue of the bonds; (e) that none of the amounts received from the sale of the bonds will be placed in a reserve or replace- ment fund, and, except as provided in (f) and (g), below, none of the amounts received from the sale of the bonds and none of the proceeds of the bonds of any kind will either (i) be placed in a reserve or replace- ment fund, or (ii) be used directly or indirectly to acquire any securities or obligations of any kind; (f) that a separate and special "Interest and Sinking Fund" has been created and established solely to pay the principal of and interest on the bonds, with a portion of such fund constituting a bona fide debt service fund for the bonds, and money deposited into the "Interest and Sinking Fund" for the bonds will not be invested except during the thirteen month period beginning on the date of each such deposit of money, and the amounts received from the investment of money in the "Interest and Sinking Fund" will not be invested except during the one year period beginning on the date of receipt of such amounts; provided, however, and except that, if any money so deposited, and any amounts received from the investment thereof, are accumulated in the "Interest and Sinking Fund" and remain on hand in the "Interest and Sinking Fund" after thirteen months from the date of deposit of any such money or one year after the receipt of any such amounts from the investment thereof, such money and amounts, to the extent of an aggregate not exceeding 15% of the original face amount of the bonds (with the bonds having been sold at face value or par) , shall constitute a reasonably required debt service reserve fund for the bonds, and may be invested, and will not be subject to investment yield restrictions, and shall constitute a separate portion of the "Interest and Sinking Fund"; " (g) that it is expected that a portion of the Interest and Sinking Fund" will be used primarily to achieve a proper matching of tax revenues collected for the bonds and debt service on the bonds within each bond year, and it is expected that such portion of the "Interest and Sinking Fund" will be depleted once a year on a first in - first out basis, except for a possible carryover amount which will not exceed the greater of one year's earnings on such fund or 1/12 of annual debt service payable from such fund, but any money and amounts which may be accumulated in the "Interest and Sinking Fund", to constitute a debt service reserve fund for the bonds as described in (f), above, shall constitute a separate portion of the "Interest and Sinking Fund", and will not be depleted annually, and will not be subject to yield restrictions; provided that in no event will such debt service reserve fund portion of the "Interest and Sinking Fund" ever exceed 15% of the original face amount of the bonds; (h) That except as provided in (f) and (g), above, no money or amounts will be held or accumulated in or invested from any sinking fund, debt service fund, redemption fund, reserve fund, replacement fund, or similar fund which is reasonably expected to be used to pay principal or interest on the bonds; (i) That none of the projects to be financed by the bonds will be sold or otherwise disposed of, in whole or in part, prior to the final maturity of the bonds; (j) That the amounts received from the sale of the bonds will not exceed the amounts necessary for the governmental purposes of the bonds; (k) that the City has not been notified of any listing of it by the Internal Revenue Service as an issuer that may not certify its bond. 4. that it is not expected that the proceeds of the bonds will be used in any manner that would cause such obligations to be arbitrage bonds under Section 103(c) of the Code and the Regulations prescribed under that Section, and it is further specifically covenanted that the proceeds of the bonds will not be used directly or indirectly so as to cause all or any part of the bonds to be or become arbitrage bonds within the meaning of that Section or the Regulations presecribed by that Section. 5. that to our best knowledge and belief there are no other facts, estimates, or circumstances that would materially change the foregoing conclusions or statements. EXECUTED this City Manager, C Round Rock (SEAL) SIGNATURE IDENTIFICATION AND NO -LITIGATION CERTIFICATE THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK We, the undersigned, hereby certify as follows : (a) That this certificate is executed and delivered with reference to that issue of CITY OF ROUND ROCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1980—A, clated September 1, 1980, in the principal amount of $2,000,000. (b) That we officially executed and signed said Bonds and the interest coupons attached thereto by causing facsimiles of our manual signatures to be imprinted or lithographed on each of said Bonds and interest coupons, and we hereby adopt said facsimile signatures as our own, respectively, and declare that said facsimile signatures constitute our signatures the same as if we had manually signed each of said Bonds and interest coupons. (c) That said Bonds and interest coupons are substantially in the form, and have been duly ex- ecuted and signed in the manner, prescribed in the order, resolution, or ordinance authorizing the issu- ance of said Bonds and interest coupons. (d) That at the time we so executed and signed said Bonds and interest coupons we were, and at the time of executing this certificate we are, the duly chosen, qualified, and acting officers indicated therein, and authorized to execute the same. (e) That no litigation of any nature has been filed or is now pending to restrain or enjoin the issu- ance or delivery of said Bonds or interest coupons, or which would affect the provision made for their payment or seeurity, or in any manner questioning the proceedings or authority concerning the issu- ance of said Bonds and interest coupons, and that so far as we know and believe no such litigation is threatened. (f) That neither the corporate existence nor boundaries of said issuer is being contested, that no litigation has been filed or is now pending which would affect the authority of the officers of said issuer to issue, execute, and deliver said Bonds and interest coupons, and that no authority or proceedings for the issuance of said Bonds and interest coupons have been repealed, revoked, or rescinded. (g) That we have caused the official seal of said issuer to be impressed, or printed, or lithographed on each of said Bonds ; and said seal on said Bonds has been duly adopted as, and is hereby declared to be, the official seal of said issuer. EXECUTED and delivered this iNUAL SI NA RES OFFICIAL TITLES /2-/A, (BANK SEAL) Mayor City Secretary The signatures of the officers subscribed above are hereby certified to be true and genuine. First Natio Bank of Round Rock Authorized Officer LAW OFFICES McCall, Parkhurst & Horton 1400 Mercantile Bank Building Dallas, Texas 75201