Loading...
HomeMy WebLinkAboutORD 1986-041 ' ORDINANCE NO. 86-41 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF CITY OF GRAPEVINE, TEXAS, GENERAL OBLIGATION BONDS, SEftIES 1986, IN THE AGGREGATE PRINCIPAL AMOUNT OF $4,145,000, FOR THE PURPOSE OF MAKING THE WITHIN DESCR.IBED PERMANENT PUBLIC IMPROVEMENTS WITHIN AND FOR THE CITY; PRESCRIBING THE FORM OF SAID BONDS; LEVYING AND REQUIRING ASSESSMENT AND COLLECTION OF AN ANNUAL AD VALOREM TAX ON ALL TAXABLE PROPERTY WITHIN THE CITY TO PAY THE INTEREST ON SUCH BONDS AND TO CREATE A SINKING FUND FOR THE PAYMENT THEREOF AT MATURITY; ACCEPTING THE BEST BIDDER THEREFORE AND AWARDING THE SALE THEREOF; APPROVING THE �"'� OFFICIAL STATEMENT; ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT; AND DECLARING AN EMERGENCY WHEREAS, the bonds hereinafter authorized were duly and favorably voted, as required by the Constitution and laws of the State of Texas, at elections held in the City of Grapevine, Texas (the "City"), on the 19th day of January, 1980, and on the 20th day of August, 1983; and WHEREAS, at said elections, the following were among the purposes and the amounts of general obligation bonds authorized and the amounts previously issued for said purposes pursuant to the voted authorizations, the amounts therefrom being issued pursuant to this Ordinance, and the respective bala.nces that remain unissued for the indicated purposes after the issuance of the bonds herein authorized, to wit: Amount Amount Election Amount Previously Being Unissued Purpose Date Voted Issued Issued Balance Fire Station & Training Facilities 1-19-80 600,000 500,000 100,000 -0- Fire Station and Training `��`�� Facilities 8-20-83 190,000 -0- 190,000 -0- Municipal Services Center 8-20-83 440,000 -0- 440,000 -0- Street Improvements 8-20-83 7,685,000 4,270,000 3,415,000 -0- WHEREAS, the City Council considers it in the best interest of the City at this time to authorize the issuance and delivery of the amounts thus reflected, all in a single issue, and all in accordance with the laws of the�State of Texas and the Charter of the City; and �,,, , �� �—��. WHEREAS, the City Council hereby finds, determines and declares that this Ordinance is an emergency measure for the immediate preservation for the public peace, health, or public welfare in order to provide funds for the construction of the improvements herein contemplated at the earliest possible date; therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: ARTICLE I � DEFINITIONS AND OTHER PR.ELIMINARY MATTERS Section 1.01. Definitions. »� � Unless otherwise expressly provided or unless the context clearly requires otherwise, in this Ordinance, the following terms shall have the meanings specified below: "Bond" means any of the Bonds. "Bond Date" means the date designated as the initial date of the Bonds by Section 3.02(a) of this Ordinance. "Bonds" means the City's direct obligation bonds authorized to be issued by Section 3.01 of this Ordinance and designated as "City of Grapevine, Texas, General Obligation Bonds, Series 1986," in the aggregate principal amount of $4,145,000. "Closing Date" means the date of the initial delivery of and payment for the Bonds. "Code" means the Internal Revenue Code of 1954, as amended, including the regulations and published rulings thereunder. "Construetion Fund" means the construction fund established by Section 7.01(a)(ii) of this Ordinance. � "Event of Default" means any Event of Default as defined in Section 10.01 of � this Ordinance. "Tnitial Bond" means the initial Bond authorized by Section 3.04(b) of this Ordinanee. "Interest and Sinking Fund" means the interest and sinking fund established by Section 7.01(a)(i) of this Ordinanee. "Interest Payment Date" means the date or dates on which interest on the Bonds is scheduled to be paid until maturity or prior redemption of such Bonds, such dates being February 1 and August l, eommencing February 1, 1987. "Owner" means the person who is the registered owner of a Bond or Bonds, as shown in the Register. 0569 D -2- � �.� �. "Paying Agent/Registrar" means initially Texas American Bank/Fort Worth, N.A., Fort Worth, Texas, or any successor thereto as provided in this Ordinanee. "Purchaser" means the initial purchaser of the Bonds, which is named in Seetion 12.01(a) of this Ordinanee. "Record Date" means the fifteenth day of the month next preceeding an Interest Payment Date. "Register" means the Register specified in Section 3.06(a) of this Ordinance. ,�,.:,,� "Special Payment Date" means the fifteenth day following a Special Record Date. "Special Record Date" means the Special Record Date as prescribed in Section 3.03(b) of this Ordinance. Section 1.02. Findin s. The declarations, determinations and findings declared, made and found in the preamble to this Ordinance are hereby adopted, restated and made a part of the operative provisions hereof. Section 1.03. Table of Contents, Titles and Heading�s. The table of contents, titles and headings of the Articles and Sections of this Ordinanee have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof and shall never be considered or given any effect in construing this Ordinance or any provision hereof or in ascertaining intent, if any question of intent should arise. Seetion 1.04. Interpretation. (a) Unless the conte� requires otherwise, words of the masculine gender sha11 be construed to include correlative words of the feminine and neuter genders and vice versa, and words of the singular number shall be construed to include correlative words of the plural number and vice versa. �'� " (b) This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein to sustain the validity of this Ordinance. ARTICLE II SECURITY FOR THE BONDS Section 2.01. Tax Lev.y for Payment of the Bonds. � (a) The City Council hereby declares and covenants that it will provide and levy a tax legally and fully sufficient for payment of the Bonds, it having been 0569 D -3- �,,,a �� _ ��—�r determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient t� in consideration of all other outstanding obligations of the City. (b) To provide for the payment of the debt service requirements on the Bonds, being (i) the interest on the Bonds, and (ii) a sinking fund for their payment at maturity or a sinking fund of 2% per annum (whichever amount shall be greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while the Bonds or interest thereon shall remain outstanding and unpaid, a tax on each one hundred dollars' valuation of taxable property in the City sufficient to pay such debt service requirements, full allowance being made for "`"'" delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the debt service requirements, and the same shall not be diverted to any other purpose. �: � ARTICLE III AUTHORIZATION; GENERAL TERMS AND PROVISIONS REGARDING THE BONDS Section 3.01. Authorization. The City's bonds to be designated "City of Grapevine, Texas, General Obligation Bonds, Series 1986," are hereby authorized to be issued and delivered in accordance with the Constitution a.nd laws of the State of Texas and the Charter of the City, the Bonds to be issued in the aggregate principal amount of $4,145,000 for the purpose of providing funds with which to make the following various permanent public improvements for and within the City and in the following amounts: (i) $100,000 for improving, acquiring and equipping fire stations and fire training facilities including sites therefor, in and for the City; (ii) $190,000 for improving, acquiring and equipping fire stations and fire training facilities including sites therefor, in and for the City; (iii) $440,000 for improving, acquiring, constructing, reconstructing, renovating and equipping a Municipal Service Center for said City, to service, maintain and store City vehicles and equipment, and acquiring any � necessary land for the e�ansion of the same; and (iv) $3,415,000 for constructing improvements to the streets in and for the City, including sidewalks, storm drainage improvements, parking faeilities, traffic eontrol and maintenance facilities �� necessary and incidental thereto. Section 3.02. Date, Denomination, Maturities, Numbers and Interest. (a) The Bonds shall be dated July 1, 1986 (the "Bond Date"). The Bonds shall be in fully registered form, without coupons, in the denomination of $5,000 or any integral multiple thereof and shall be numbered separately from one upward, exeept the Initial Bond, which shall be numbered T-l. (b) The Bonds shall mature on February 1 in the years and as to the principal amounts set forth below, and interest on each Bond shall accrue from the later of the Bond Date or the most recent Interest Payment Date to which interest has been paid or provided for at the per annum rates of interest, payable semiannually on February 1 and August 1 of each year until maturity or prior redemption eommencing February 1, 1987, all as set forth in the schedule below: 0569 D -4- � . �:� Principal Interest Principal Interest Year Amount Rate Year Amount Rate 1988 $ 90,000 % 1998 $220,000 % 1989 100,000 % 1999 235,000 % 1990 110,000 % 2000 255,000 % 1991 120,000 % 2001 275,000 % 1992 135,000 % 2002 295,000 % 1993 145,000 % 2003 320,000 % 1994 160,000 % 2004 345,000 % 1995 175,000 % 2005 370,000 % `� "` 1996 190,000 % 2006 400,000 % 1997 205,000 % �,�,� Section 3.03. Medium, Method and Place of Payment. (a) The principal of, premium, if any, and interest on the Bonds shall be paid in lawful money of the United States of America as provided in this Section. (b) Interest on the Bonds shall be payable to the Owner as shown in the Register at the close of business on the 15th day of the month next preceding such Interest Payment Date (the "Record Date"). However, in the event that interest is not paid on a scheduled Interest Payment Date and remains unpaid for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") shall be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the "Special Payment Date" which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Speeial ftecord Date by United States mail, first class, postage prepaid, to the address of each Owner of a Bond appearing on the Register at the close of business on the last business day ne� preceding the date of mailing of such notiee. (c) Interest shall be paid by check (dated as of the Interest Payment Date) and sent by the Paying Agent/Registrar, by means of first class United States mail, postage prepaid, to the Owner at the address as it appears in the Register. (d) The principal of each Bond shall be paid to the Owner on the due date �.,<T thereof (whether at the maturity date or the date of prior redemption thereof) upon presentation and surrender of such Bond at the principal corporate office of the Paying Agent/Registrar. (e) If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on whieh banking institutions in the city where the Paying Agent/Registrar is located are required or authorized by law or executive order to close, the date for such payment shall be the next succeeding day whieh is not a Saturday, Sunday, legal holiday, or day on which banking institutions are required or authorized to close, and payment on such date shall have the same foree and effect as if made on the original date payment was due. 0569 D -5- ,� � �:� ���r Section 3.04. Control, Execution and Initial Re�istration. (a) The Mayor of the City is hereby authorized to have control of the Initial Bond and all necessary records and proceedings pertaining thereto pending investigation, examination, and approval by the Attorney General of the State of Texas, registration by the Comptroller of Public Accounts of the State of Texas and registration with, and initial exchange or transfer by, the Paying Agent/Registrar. (b) Initially, a single bond (the "Initial Bond") representing the entire principal amount of the Bonds registered in the name of the Purchaser of the Bonds or its designee, shall be executed and submitted to the Attorney Genecal of the '"�"" State of Texas for his approval, and, thereupon, the Comptroller of Public Accounts of the State of Texas, or a deputy designated in writing to act on behalf of the Comptroller, will execute the Comptroller's Registration Certificate. ���. (c) If the Paying Agent/Registrar, not later than the fifth day before the Closing Date, is in receipt of written instructions from the Purchaser of the Bonds designating the names in which Bonds are to be registered, the addresses of the Owners and the maturities, interest rates and denominations with respect to each such Owner, then the Paying Agent/Registrar, upon payment of the Initial Bond, shall cancel the Initial Bond and deliver, without cost, registered Bonds pursuant to such instructions. In absence of such timely instructions, the Paying Agent/Registrar may register the Bonds in the name of the Purchaser thereof. (d) The Bonds shall be executed on behalf of the City by the Mayor and City Secretary of the City, by their manual or facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Bonds shall have the same effeet as if each of the Bonds had been signed manually and in person by each of said officers, and such facsimile seal on the Bonds shall have the same effect as if the official seal of the City had been manually impressed upon each of the Bonds. (e) In the event that any officer of the City whose manual or facsimile signature appears on the Bonds ceases to be sueh officer before the authentication of such Bonds or before the delivery thereof, such manual or facsimile signature nevertheless shall be valid and sufficient for all purposes as if such officer had ""�` remained in sueh offiee. ��� (f) No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit of this Ordinance unless and until there appears thereon either (i) the Comptroller's Registration Certificate substantially in the form provided herein, manually executed by the Comptroller of Public Accounts of the State of Texas, or by his duly authorized ag'ent, or (ii) the Certificate of Paying Agent/Registrar substantially in the form provided herein, duly authenticated by manual execution of an authorized signatory of the Paying Agent/Registrar. It shall not be required that the same authorized signatory of the Paying Agent/Registrar sign the Certificate of Paying Agent/Registrar on a11 of the Bonds. Either of such Certificates upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly eertified or registered and delivered. 0569D -6- � ��� Section 3.05. Ownership. (a) The City, the Paying Agent/Registrar and any other person may treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of making and receiving payment of the principal thereof and premium, if any, thereon, for the further purpose of making and receiving payment of the interest thereon (subject to the provisions herein that interest is to be paid to the person in whose name the Bond is registered on the Record Date or Special R,ecord Date, as applicable), and for all other purposes, whether or not such Bond is overdue, and neither the City nor the Paying Agent/Registrar shall be bound by any �,. � notice or knowledge to the contrary. (b) All payments made to the person deemed to be the owner of any Bond in accordance with this Section shall be valid and effectual and shall discharge the liability of the City and the Paying Agent/Registrar upon such Bond to the e�ent of the sums paid. Section 3.06. Re�istration, Transfer and Exchan�e. (a) So long as any Bonds remain outstanding, the City shall cause the Paying Agent/Registrar to keep at its principal corporate trust office a register (the "Register") in which, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the registration and transfer of Bonds in aceorda.nce with this Ordinance. (b) A Bond shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Paying Agent/Registrar with such endorsement or other evidence of transfer as is acceptable to the Paying Agent/Registra.r. No transfer of any Bond shall be effective until entered in the Register. (c) The Bonds shall be exchangeable upon the presentation and surrender thereof at the principal corporate trust office of the Paying Agent/Registrar for a Bond or Bonds of the same maturity and interest rate and in any authorized denomination and in an aggregate principal amount equal to the unpaid principal amount of the Bond presented for exchange. The Paying Agent/Registrar is hereby � authorized to authenticate and deliver Bonds exchanged for other Bonds in aeeordance with this Seetion. �,,..� (d) Each exchange Bond delivered in accordanee with this Section shall constitute an original additional contractual obligation of the City and shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such exchange Bond is delivered. (e) No service charge shall be made to the Owner for the initial registration or any subsequent transfer of Bonds, but the Paying Agent/Registrar will require the Owner to pay the reasonable cost incurred by the Paying Agent/Registrar in connection with the exchange of a Bond or Bonds for a different denomination where no simultaneous transfer of the Bond or Bonds to a new Owner also occurs. In addition, the Paying Agent/8egistrar may require the Owner to pay a sum sufficient to cover any tax or other governmental charge that is authorized to be imposed in connection with the registration, transfer or exchange of a Bond. 0569D -7- �..,:x �_y� �--��� • (f) Neither the City nor the Paying Agent/Registrar shall be required to issue, transfer, or exchange any Bond or portion thereof called for redemption prior to maturity within 30 days prior to the date fixed for redemption. Section 3.07. Cancellation. All Bonds paid or redeemed before scheduled maturity in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance with this Ordinance, shall be cancelled and destroyed upon the making of proper records regarding such payment, redemption, exchange or replacement. The Paying Agent/Registrar shall periodically furnish the City with certificates of destruction of such Bonds. Section 3.08. Temporar,y Bonds. �_� (a) Following the delivery and registration of the Initial Bond and pending the preparation of definitive Bonds, the City may execute and, upon the City's request, the Paying Agent/Registrar shall authenticate and deliver, one or more temporary Bonds that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any denomination, substantially of the tenor of the definitive Bonds in lieu of which they are delivered, without coupons, and with such appropriate insertions, omissions, substitutions and other variations as the officers of the City executing such temporary Bonds may determine, as evidenced by their signing of such temporary Bonds. (b) Until exchanged for Bonds in definitive form, such Bonds in temporary form shall be entitled to the benefit and security of this Ordinance. (c) The City, without unreasonable delay, shall prepare, execute and deliver to the Paying Agent/Registrar, and thereupon, upon the presentation and surrender of the Bond or Bonds in temporary form to the Paying Agent/Registrar, the Paying Agent/Registrar sha11 authenticate and deliver in exchange therefor a Bond or Bonds of the same maturity and series, in definitive form, in the authorized denomination, a.nd in the same aggregate principal amount, as the Bond or Bonds in temporary form surrendered. Such exchange shall be made without the making of any charge therefor to any Owner. � Section 3.09. Replacement Bonds. �� (a) Upon the presentation and surrender to the Paying Agent/Registrar of a mutilated Bond, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor a replacement Bond of like tenor and principal amount, bearing a number not contemporaneously outstanding. The City or the Paying Agent/ R.egistrar may require the Owner of such Bond to pay a sum sufficient to cover any tax or other governmental charge that is authorized to be imposed in connection therewith and any other expenses connected therewith. (b) In the event that any Bond is lost, apparently destroyed or wrongfully taken, the Paying Agent/Registrar, pursuant to the applicable laws of the State of Texas and in the absence of notice or lrnowledge that such Bond has been acquired by a bona fide purchaser, shall authenticate and deliver a replacement Bond of like 0569D -8- ��:;,� 3s a number not contempor�e01�1y outstanding, tenor and principal amount, bearing re uirements: provided that the Owner first complies with the following qRe .Strar satisfactory furnishes to the Paying Agen � (i) of and the circumstances of the loss, evidruction or theft of such gon hip dest � may be required by furnishes such security or indemnity (ii) to save it harmless; the Paying Agent/Registrar, a.nd acceptable to the City, �ection therewith, a s all e�e�es and charges in co �'"� (iii) P y legal fees, fees of the Paying but not limited to, printing costs, e that is authorized including, lstrar and any t� or other governmental charg Agent/Reg' ��° to be imposed; and osed by the (iv) satisfies any other reasonable requirements imp in A ent/Registrar. City a.nd the Pay g g ��h�.ser of such replacement Bond, a bona fid resents for ��� If, after the delivery lacement Bond was issued P� Shall be Af the original Bond in lieu �f he Ci y and the Paying Agent/Reg �gayment such original Bond, erson to whom it was delivered lacement Bond from the P ��haser, and shall be entitled �titled to recover suctherefrom, except a bona fide p ,�,� �y person taking or indemnity provided therefor to the e�ent t�,�.n ;t� recover upon the securitY the City or the Paying Agent/Regi '�ss, damage, cost or e�e�e incurred by �nnection therewith. �ently destroyed or lost aPP a able, the In the event that any such mutilated, ► �d� a replaeement Bond, ull taken Bond has become orOri an teaa of e s�g due an P y ��ongf Y �strar, in its discreti , ,�ying Agent/ Reg. ,��y pay such Bond. ' ation of the City and shall be h re lacement Bond delivered ill accordance with this Section �e� Eac P fits and securitY of this Ordinance to the same extent as the ;��a,ll constitute b neiginal additional contractua o , :e�titled to the laeement Bond is delivered. ""°r��nd or Bonds in lieu of which sueh rep � •� ARTICLE IV REDEMPTION OF BONDS BEFORE MATURITY Section 4.01. Limitation on Redemption. before seheduled maturity only as The Bonds sha.11 be subject to redempt�on ,�,e+�vided in this Artiele N. Section 4.02. Optional Redem tp ion• m gonds maturing on and after The City reserves the option to redee �a� 'n whole or any p�'t� before their rI Pn�tDate the eaf er t s lch - �.���.y 1, 1 9 9 7, i or on an y �t e r e s t P a y �,����, on February 1, 1996, �:ss� �s —9— �,„,:.:, �-,� .�"�_�.� redemption date or dates to be fixed by the City) at a price equal to the principal amount of the Bonds called for redemption plus accrued interest to the date fixed for redemption. (b) The City, at least 45 days before the redemption date (unless a shorter period shall be satisfactory to the Paying Agent/Registrar), shall notify the Paying Agent/Registra.r of such redemption date and of the principal amount of Bonds to be redeemed. ' Section 4.03. Partial Redemption. � (a) If less than all of the Bonds are to be redeemed, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registra.r to call by lot the Bonds, or portions thereof, �:� within such maturity or maturities and in such principal amounts, for redemption. (b) A portion of a single Bond of a denomination greater than $5,000 may be redeemed, but only in a principal amount equal to $5,000 or any integral multiple thereof. The Paying Agent/Registrar shall treat each $5,000 portion of the Bond as though it were a single Bond for purposes of selection for redemption. (c) Upon surrender of any Bond for redemption in part, the Paying Agent/Registrar, in accordance with Section 3.06 of this Ordinance, shall authenticate and deliver an exchange Bond or Bonds in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered, such exchange being without charge, notwithstanding any provision of Section 3.06 to the contrary. (d) The Paying Agent/Registrar shall promptly notify the City in writing of the principal amount to be redeemed of any Bond as to which only a portion thereof is to be redeemed. Section 4.04. Notice of Redemption to Owners. (a) The Paying Agent/Registrar shall give notice of any redemption of Bonds by sending notice by first class United States mail, postage prepaid, not less � than 30 days before the date fixed for redemption, to the Owner of each Bond (or part thereof) to be redeemed, at the address shown on the Register. (b) The notice shall state the redemption date, the redemption price, the plaee at which the Bonds are to be surrendered for payment, and, if less than a11 the Bonds outstanding are to be redeemed, an identification of the Bonds or portions thereof to be redeemed. (c) Any notice given as provided in this Section shall be conelusively presumed to have been duly given, whether or not the Owner receives sueh notiee. Section 4.05. Payment Upon Redemption. (a) Before or on each redemption date, the Paying Agent/Registrar shall make provision for the payment of the Bonds to be redeemed on such date by setting aside and holding in trust an amount from the Interest and Sinking Fund or otherwise 0569D -10- � �x� ' received by the Paying Agent/Registrar from the City sufficient to pay the principal of, premium, if any, and accrued interest on such Bonds. (b) Upon presentation and surrender of any Bond called for redemption at the principal corporate trust office of the Paying Agent/Registrar on or after the date fixed for redemption, the Paying Agent/Registrar shall pay the principal of, premium, if any, and accrued interest on such Bond to the date of redemption from the money set aside for such purpose. �..� Section 4.06. E£fect of Redemption. (a) Notice of redemption having been given as provided in Section 4.04 of this Ordinance, the Bonds or portions thereof called for redemption shall become due and payable on the date fixed for redemption and, unless the City defaults in the payment of the principal thereof, premium, if any, or accrued interest thereon, such Bonds or portions thereof shall cease to bear interest from and after the date fixed for redemption, whether or not such Bonds are presented and surrendered foc payment on such date. (b) If any Bond or portion thereof called for redemption is not so paid upon presentation and surrender of such Bond for redemption, such Bond or portion thereof shall continue to bear interest at the rate stated on the Bond until paid or until due provision is made for the payment of same. Section 4.07. Lapse of Pa.yment; Mone.y Set Aside To Be Escrowed. (a) Money set aside for the redemption of Bonds and remaining unclaimed by the Owners of such Bonds for seven years after the date of redemption shall be applied to the next payment or payments on the Bonds thereafter coming due and, to the extent any such money remains after the retirement of all outstanding Bonds, shall be paid to the City to be used for any lawful purpose. Thereafter, neither the City, the Paying Agent/Registrar nor any other person shall be liable or responsible to any Owners of such Bonds for any further payment of such unclaimed moneys or on account of any such Bonds, subjeet to any applicable �.k. n escheat law or similar law. (b) Money set aside for the redemption of Bonds and remaining ,�;� unclaimed by the Owners of such Bonds after the redemption date shall be segregated in a special escrow account and held in trust, uninvested, without interest, for the account of such Owners. ARTICLE V PAYING AGENT/REGISTRAR Section 5.01. Appointment of Initial Payin� A�ent/Re�istrar. Texas American Bank/Fort Worth, N.A., Fort Worth, Texas, is hereby appointed as the initial Paying Agent/Registra.r for the Bonds. 0569D -11- �� �� ��-�� Section 5.02. Qualifications. Each Paying Agent/R.egistrar shall be (i) a banking corporation, a banking association or a financial institution organized and doing business under the laws of the United States or of any state thereof, (ii) authorized under such laws to exercise trust powers and (iii) subject to supervision or examination by a federal or state governmental authority. Section 5.03. Maintaining� Payin� A�ent/Re�'istrar. (a) At all times while any Bonds are outstanding, the City will maintain a � Paying Agent/Registrar that is qualified under Section 5.02 of this Ordinance. The Mayor is hereby authorized and directed to execute an agreement with the Paying Agent/Registrar specifying the duties and responsibilities of the City and the Paying �:,,� Agent/Registrar. The signature of the Mayor shall be attested by the City Secretary of the City. (b) If the Paying Agent/Registrar resigns or otherwise ceases to serve as such, the City will promptly appoint a replacement. Section 5.04. Termination. The City reserves the right to terminate the appointment of any Paying Agent/Registrar by delivering to the entity whose appointment is to be terminated a certified copy of a resolution of the City (i) giving notice of the termination of the appointment and of the agreement evidencing the relationship between the City and the Paying Agent/Registrar, stating the effective date of such termination, and (ii) appointing a successor Paying Agent/Registrar. Section 5.05. Notice of Chan�e to Owners Promptly upon each change in the entity serving as Paying Agent/Registrar, the City will cause notice of the ehange to be sent to each Owner by first class United States mail, postage prepaid, at the address in the Register, stating the effective date of the change and the name and mailing address of the replacement Paying Agent/Registrar. "�"""' Section 5.06. A�reement to Perform Duties and Funetions. By aeeepting the appointment as Paying Agent/Registra.r and executing the Paying Agent/Registrar Agreement, the Paying Agent/Registra.r is deemed to have agreed to the provisions of this Ordinance and that it will perform the duties and functions of Paying Agent/Registra.r prescribed thereby. Section 5.07. Deliver.y of Records to Successor. If a Paying Agent/Registrar is replaced, such Paying Agent/Registrar, promptly upon the appointment of the successor, will deliver the Register (or a copy thereof) and all other pertinent books and records relating to the Bonds to the successor Paying Agent/Registrar. 0569D -12- � �..:.� ' ARTICLE VI FORM OF THE BONDS Section 6.01. Form Generall,y. (a) The Bonds, including the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of the Paying Agent/ Registrar, and the Assignment form to appear on each of the Bonds, (i) sha11 be substantially in the form set forth in this Article, with such appropriate insertions, �° omissions, substitutions, and other variations as are permitted or required by this Ordinance, and (ii) may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including a.ny reproduction of an opinion of eounsel) thereon as, consistently herewith, may be determined by the City or by the officers executing sueh Bonds, as evideneed by their execution thereof. (b) Any portion of the text of any Bonds may be set forth on the reverse side thereof, with an appropriate reference thereto on the face of the Bonds. (c) The definitive Bonds shall be printed, lithographed, or engraved, and may be produced by any eombination of these methods or produced in any other similar manner, all as determined by the officers executing such Bonds, as evidenced by their execution thereof. (d) The Initial Bond submitted to the Attorney General of the State of Texas may be typewritten and photocopied or otherwise reproduced. Seetion 6.02. Form of the Bonds. The form of the Bond, including the form of the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the form of Certificate of the Paying Agent/Registrar and the form of Assignment appearing on the Bonds, shall be substantially as follows: (a) Form of Bond. �,..� REGISTERED REGISTERED No. $ United States of America State of Texas COUNTY OF TARRANT CITY OF GRAPEVINE, TEXAS GENERAL OBLIGATION BOND SERIES 1986 INTEREST RATE: DUE DATE: BOND DATE: CUSIP NUMBER: July 1, 1986 0569 D -13- �-:..:,,. � ���� k The City of Grapevine (the "City"), in the County of Tarrant, State of Texas, for value received, hereby promises to pay to or registered assigns, on the due date specified above, the sum of DOLLARS unless this Bond shall have been sooner called for redemption and the payment of the principal hereof shall have been paid or provided for, and to pay interest on such principal amount from the later of the Bond Date specified above or the most recent �;, ,� interest payment date to which interest has been paid or provided for until payment of such principal amount has been paid or provided for, at the per annum rate of interest specified above, computed on the basis of a 360-day year of twelve 30-day months, such interest to be paid semiannually on February 1 and August 1 of each year, commencing February l, 1987. The principal of this Bond shall be payable without exchange or collection charges in lawful money of the United States of Ameriea upon presentation and surrender of this Bond at the principal corporate office of the Paying Agent/Registrar executing the registration certificate appearing hereon. Interest on this Bond is payable by check dated as of the interest payment date, mailed by the Paying Agent/Registrar to the registered owner at the address shown on the registration books kept by the Paying Agent/Registrar. For the purpose of the payment of interest on this Bond, the registered owner shall be the person in whose name this Bond is registered at the close of business on the "R,ecord Date," which shall be the 15th day of the month next preceding such interest payment date. However, in the event that interest is not paid on a scheduled interest payment date and remains unpaid for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") shall be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the "Special Payment Date" which shall be 15 ""� days after the Speeial Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the �� address of each Owner of a Bond appearing on the Register at the elose of business on the last business day next preceding the date of mailing of such notice. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on whieh banking institutions in the city where the Paying Agent/Registrar is located are required or authorized by law or executive order to close, the date for such payment shall be the next suceeeding day which is not a Saturday, Sunday, legal holiday, or day on which banking institutions are required or authorized to close, and payment on such date shall have the same force and effect as if made on the original date payment was due. This Bond is one of a series of fully registered bonds specified in the title hereof issued in the ag'gregate principal amount of $4,145,000 (herein referred to as the "Bonds"), issued pursuant to a certain ordinance of the City (the "Ordinance") for 0569D -14- � m .�: , � ' the purpose of providing funds with which to make various permanent public improvements for and within the City. The City has reserved the option to redeem the Bonds maturing on or after February 1, 1997, in whole or in part before their respective scheduled maturity dates, on February 1, 1996, or on any interest payment date thereafter, at a price equal to the principal amount of the Bonds so called for redemption plus aecrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direet the Paying Agent/Registrar to call by lot '"�'� the Bonds, or portions thereof, within such maturity and in such principal amounts, for redemption. Notice of such redemption or redemptions shall be given by first class mail, postage prepaid, not less than 30 days before the date fi�ced for redemption, to the registered owner of each of the Bonds to be redeemed in whole or in part. Notice having been so given, the Bonds or portions thereof designated for redemption shall beeome due and payable on the redemption date specified in such notice, and from and after such date, notwithstanding that any of the Bonds or portions thereof so called for redemption shall not have been surrendered for payment, interest on such Bonds or portions thereof shall eease to accrue. As provided in the Ordinance, and subject to certain limitations therein set forth, this Bond is transferable upon surrender of this Bond for transfer at the principal corporate trust office of the Paying Agent/Reg'istrar with such endorsement or other evidence of transfer as is acceptable to the Paying Agent/ Registrar, and, thereupon, one or more new fully registered Bonds of the same stated maturity, of authorized denominations, bearing the same rate of interest, and for the same aggregate principal amount will be issued to the designated transferee or transferees. Neither the City nor the Paying Agent/Registrar shall be required to issue, transfer or excha.nge any Bond or portion thereof called for redemption prior to maturity within 30 days prior to the date fixed for redemption. "�� ' The City, the Paying Agent/Registrar, and any other person may treat the person in whose name this Bond is registered as the owner hereof for the purpose of �z;,N, receiving payment as herein provided (exeept interest shall be paid to the person in whose name this Bond is registered on the Record Date, or Special Record Date, as applicable) and for all other purposes, whether or not this Bond be overdue, and neither the City nor the Paying Agent/ Registrar shall be affected by notice to the contrary. � IT IS HEREBY CERTIFIED AND RECITED that the issuance of this Bond and the series of which it is a part is duly authorized by law and has been authorized by a vote of the properly qualified electors of the City; that all acts, conditions and things required to be done precedent to and in the issuance of the Bonds have been properly done and performed and have happened in regular and due time, form and manner, as required by law; that sufficient and proper provision for the levy and collection of taxes has been made, which, when collected, shall be appropriated exclusively to the timely payment of the principal of, premium, if any, and interest 0569D -15- �� ••••�_� on the Bonds; and that the total indebtedness of the City, including the Bonds, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or facsimile signature of the Mayor of the City and countersigned by the manual or facsimile signature of the City Secretary, and the official seal of the City has been duly impressed or placed in facsimile on this Bond. � City Secretary, City of Grapevine, Texas Mayor, City of Grapevine, Texas �,.,� [SEAL] (b) Form of Comptroller's Registration Certificate. The following Comptroller's Registration Certificate may be deleted from the definitive Bonds if such certificate on the Initial Bonds is fully executed. OFFICE OF THE COMPTROLLER § OF PUBLIC ACCOUNTS § REGISTER NO. OF THE STATE OF TEXAS § I hereby certify that there is on file and of record in my office a certifieate of the Attorney General of the State of Texas to the effect that this Bond has been examined by him as required by law, that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding obligation of the City of Grapevine, Texas, and that this Bond has this day been registered by me. Witness my hand and seal of office at Austin, Texas, � �� Comptroller of Public Accounts of the [SEAL] State of Texas (c) Form of Certificate of Paying� A�ent/Re�istrar. The following Certificate of Paying Agent/Registrar may be deleted from the Initial Bond if the Comptroller's Registration Certificate appears thereon. CERTIFICATE OF PAYING AGENT/REGISTRAR The records of the Paying Agent/Registrar show that the Initial Bond of this series of bonds was approved by the Attorney Genera.l of the State of Texas and 0569D -16- �. .,� � registered by the Comptroller of Public Accounts of the State of Texas, and that this is one of the Bonds referred to in the within-mentioned Ordinance. TEXAS AMERICAN BANK/FORT WORTH, N.A., Fort Worth, Texas, as Paying Agent/Registrar Dated: By: Authorized Signatory (d) Form of Assignment. � ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby se1Ls, assigns, and transfers unto (print or typewrite name, address and Zip Code of transferee): (Social Security or other identifying number: ) the within Bond and all rights hereunder and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration hereof, with full power of substitution in the premises. Dated: NOTICE: The signature on this Assignment Signature Guaranteed By: must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular and °� � must be guaranteed by an officer of a federal or state bank or a member of the �,;,,� National Association of Securities Dealers. Authorized Signatory (e) The Initial Bond shall be in the form set forth in paragraphs (a) through (d) of this Section, exeept for the following altera,tions: (i) immediately under the name of the Bond, the headings "INTEREST RATE" and "DUE DATE" shall both be completed with the words "As shown below"; (ii) in the first paragraph of the Bond, the words "on the due date specified above" shall be deleted and the following will be inserted: "on February 1 in each of the years, in the prineipal amounts and bearing interest at the per annum rates in aceordance with the following schedule: 0569D -17- �..�, l�..� Principal Interest Years Amounts Rates (Information to be inserted from schedule in Section 3.02 of this Ordinance) (iii) in the second paragraph of the Bond, the words "executing the registration certificate appearing hereon" shall be deleted a.nd an additional sentence shall be added to the paragraph as follows: "The initial Paying Agent/R.egistrar is Texas American Bank/Fort Worth, N.A., Fort Worth, Texas."; and '�"' (iv) the Initial Bond shall be numbered T-1. w _.�. Section 6.03. CUSIP Registration. The City may secure identification numbers through the CUSIP Service Bureau Division of Standard & Poor's Corporation, New York, New York, and may authorize the printing of such numbers on the face of the Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the Bonds shall be of rna significance or effect as regards the legality thereof and neither the City nor the attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed on the Bonds. Section 6.04. Le�al Opinion. The approving legal opinion of Jenkens Hutchison & Gilchrist, Bond Counsel, may be printed on the back of each Bond over the certification of the City Secretary of the City, which may be executed in facsimile. ARTICLE VII CREATION OF FUNDS AND ACCOUNTS, INITIAL DEPOSITS AND APPLICATION OF MONEY � Section 7.01. Creation of Funds. (a) The City hereby establishes the following funds: (i) the City of Grapevine, Texas, General Obligation Bonds, Series 1986, Interest and Sinking Fund. (ii) the City of Grapevine, Texas, General Obligation Bonds, Series 1986, Construction Fund. (b) The Interest and Sinking Fund and the Construction Fund sha11 be mainta.ined at an official depository of the City, which must be a member of the Federal Deposit Insurance Corporation. � 0569D -I$- � �,.�� . � Section 7.02. Initial Deposits. On the Closing Date, the City shall cause the proceeds from the sale of the Bonds to be deposited as follows: (i) first, an amount equal to all accrued interest and premium, if any, on the Bonds from the Bond Date until the Closing Date shall be deposited to the credit of the Interest and Sinking Fund; and (ii) second, the remaining balance shall be deposited to the credit '�""� of the Construction Fund. Seetion 7.03. Interest and Sinking� Fund. �� (a) The taxes levied under Section 2.01 of this Ordinance shall be deposited to the eredit of the Interest and Sinking Fund at such times and in such amounts as necessary for the timely payment of the prineipal of and interest on the Bonds. (b) If the amount of money in the Interest and Sinking Fund is at least equal to the aggregate principal amount of the outstanding Bonds plus the aggregate amount of interest due and that will become due and payable on such Bonds, no further deposits to that fund need be made. In determining the aggregate principal amount of outstanding Bonds, there shall be subtracted the amou.nt of any Bonds that have been duly called for redemption and for which money has been deposited with the Paying Agent/Registrar for such redemption. (c) Money on deposit in the Interest and Sinking Fund shall be used to pay the principal of and interest on the Bonds as such become due and payable. Section 7.04. Construction Fund. The Construetion Fund shall be used for the purpose of making the permanent public improvements for which the Bonds were issued (as specified in Section 3.01 of ,� this Ordinance) and for paying e�enses incurred in connection with the issuance and delivery of the Bonds. � .� Section 7A5. Excess Bond Proceeds. (a) Upon completion of the publie improvements financed with the Bonds, if any amount (exclusive of that amount retained for the payment of costs of such improvements not then due and payable) that remains in the Construetion Fund shall be transferred to the credit of the Interest and Sinking Fund and segregated in a special escrow aeeount. (b) The money in the escrow account shall be used for the redemption of Bonds at the earliest date that the City has the option to redeem Bonds without premium or penalty. 0569D -19- �;,_.� �� ...��.r ARTICLE VIII INVESTMENTS Section 8.01. Investments. (a) Money in both the Interest and Sinking Fund and the Construetion Fund, at the option of the City, may be invested in such securities or obligations as permitted under applieable law. (b) Any securities or obligations in which money is so invested shall be *""� kept and held in trust for the benefit of the Owners and shall be sold and the proceeds of sale shall be timely applied to the making of all payments required to be made from the fund from which the investment was made. � � (c) The money in the special escrow account established uder Section 7.05 of this Ordinance shall not be invested in securities or obligations that have a "higher yield," within the meaning of Seetion 103(c) of the Code, than the yield on the Bonds. Section 8.02. Investment Income. (a) Interest and income derived from investment of the Interest and Sinking Fund shall be credited to sueh Fund. (b) Interest and income derived from investment of the Construction Fund shall be either deposited to the credit of the Interest and Sinking Fund or retained in the Construction Fund until the improvements to be financed from the Construction Fund are completed. ARTICLE IX PARTICULAR REPRESENTATIONS AND COVENANTS Section 9.01. Pa.yment of the Bonds. '"""' On or before each Interest Payment Date for the Bonds and while any of the �,,� Bonds are outstanding and unpaid, there shall be made available to the Paying Agent/Registrar, out of the Interest and Sinking Fund, money sufficient to pay such interest on and principal of the Bonds as will accrue or mature on the applicable Interest Payment Date or date of prior redemption. Section 9.02. Other R.epresentations and Covenants. (a) The City will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance and in each Bond; the City will promptly pay or cause to be paid the principal of and interest on each Bond on the dates and at the places and manner prescribed in such Bond; and the City will, at the times and in the manner prescribed by this Ordinance, deposit or cause to be deposited the amounts of money specified by this Ordinance. 0569 D -20- � .� ::� � (b) The City is duly authorized under the laws of the State of Texas to issue the Bonds; all aetion on its part for the creation and issuance of the Bonds has been duly and effectively taken; and the Bonds in the hands of the Owners thereof are and will be valid and enforceable obligations of the City in accordance with their terms. (c) The City hereby represents that the proeeeds of the Bonds are needed at this time to finance the costs of the eapital improvements for which the Bonds were issued (as specified in Section 3.01 of this Ordinance); that based on current faets, estimates, and circumstances, it is reasonably expeeted that final `���a disbursement of the proceeds of the Bonds will occur within three years after the Closing Date, that substantial binding obligations to commence such improvements will be incurred within six months after such date, and that the construction or acquisition of the improvements will proceed with due diligence to completion; that it is not reasonably expected that the proceeds of the Bonds or money deposited in the Interest and Sinking Fund will be used or invested in a manner that would cause the Bonds to be or become "arbitrage bonds," within the meaning of Section 103(c) of the Code; and that, exeept for the Interest and Sinking Fund, no other funds or accounts have been established or pledged to the payment of the Bonds. (d) The City will not take any action or fail to take any action with respect to the investment of the proceeds of the Bonds or any other funds of the City, including amounts received from the investment of any of the foregoing, that, based upon the facts, estimates, and cireumstanees known on the Closing Date, would result in constituting the Bonds "a.rbitrage bonds," within the meaning of such Section 103(c) of the Code, and the City will not take any deliberate action motivated by arbitrage that would have such result. (e) Proper officers of the City charged with the responsibility of issuing the Bonds are hereby directed to make, exeeute and deliver certifications as to facts, estimates and circumstances in existence as of the Closing Date and stating whether there are any facts, estimates or circumstances that would materially change the City's current expectations. ,�:; . (f) The covenants and representations made or required by this Section are for the benefit of the Owners and may be relied upon by the Owners and bond counsel for the City. �r.�. ARTICLE X DEFAULT AND REMEDIES Seetion 10.01. Events of Default. Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an "Event of Default," to wit: (i) the failure to make payment of the prineipal of or interest on any of the Bonds when the same becomes due a.nd payable; or 0569D -21- ,��:,;� �� `"'—__J (ii) default in the performance or observance of any other covenant, agreement or oblig�ation of the City, the failure to perform which materially and adversely affects the rights of the Owners, including but not limited to, their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any Owner to the City. Section 10.02. Remedies for Default. (a) Upon the happening of any Event of Default, then and in every case any Owner or an authorized representative thereof, including but not limited to, a � trustee or trustees therefor, may proceed against the City for the purpose of protecting and enforcing the rights of the Owners under this Ordinance, by mandamus or other suit, action or special proceeding in equity or at law, in any x, ,, court of competent jurisdiction, for any relief permitted by law, including the specific performance of any covena.nt or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the Owners hereunder or any combination of such remedies. (b) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all Owners of Bonds then outstanding. Section 10.03. Remedies Not Exclusive. (a) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Bonds or now or hereafter existing at law or in equity; provided, however, that notwithstanding any other provision of this Ordinance, the right to accelerate the debt evidenced by the Bonds shall not be available as a remedy under this Ordinance. (b) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. ARTICLE XI '"'�`" DISCHARGE � Section 11.01. Dischar�e b.y Pa.yment. When all Bonds have been paid in full as to principal and as to interest and premium, if any, or when all Bonds have become due and payable, whether at maturity or by prioc redemption or otherwise, and the City shall have provided for the payment of the whole amount due or to become due on all Bonds then outstanding, including all interest that has acerued thereon or that may accrue to the date of maturity or prior redemption, and any premium due or that may become due at maturity or prior redemption, by depositing with the Paying Agent/Registrar, for payment of the principal of such outstanding Bonds and the interest accrued thereon and a.ny premium due thereon, the entire amount due or to become due thereon, and the City shall aLso have paid or caused to be paid all sums payable under this Ordinance by the City, including the compensation due or to become due 0569D -22- � }.,.� .. � the Paying Agent/Registrar, then the Paying Agent/Registrar, upon receipt of a letter of instructions from the City requesting the same, shall discharge and release the lien of this Ordinance and execute and deliver to the City such releases or other instruments as shall be requisite to release the lien hereof. Section 11.02. Dischar�e b.y Deposit. (a) The City may discharge its obligation to pay the principal of, premium, if any, and interest on the Bonds and its obligation to pay all other sums payable or to become payable under this Ordinance by the City, including the compensation due or to become due the Paying Agent/Registrar, by the following procedures: _ (i) depositing or causing to be deposited with the Paying Agent/Registrar an amount of money that, together with the interest earned on or capital gains or profits to be realized from the investment of sueh money, will be sufficient to pay the principal of, premium, if any, and accrued interest on such Bonds to maturity or to the date fixed for prior redemption of such Bonds, and to pay such other amounts as may be reasonably estimated by the Paying Agent/Registrar to become payable under this Ordinance, including the compensation due or to become due the Paying Agent/Registra.r; and (ii) providing the Paying Agent/Registrar with an opinion of nationally recognized bond counsel acceptable to the Paying Agent/Registrar to the effect that the deposit specified in subdivision (i) of this subsection (a) will not cause the interest on the Bonds to beeome subject to federal income taxation. (b) Subject to subsection (c) of this Section, upon compliance with subsection (a) of this Section, the Bonds shall no longer be regarded as outstanding and unpaid, and the Paying Agent/Registrar, upon receipt of a letter of instructions from the City requesting the same, shall discharge and release the lien of this Ordinance and execute and deliver to the City such releases or other instruments as shall be requisite to release the lien hereof. ,�Y...,, (c) Before the discharge and release of the lien of this Ordinance . pursuant to this Section, the City shall make the following provisions with the `�""`� Paying Agent/Registrar: (i) the establishment of a separate escrow account fund with the Paying Agent/Registrar for the deposit pursuant to subsection (a)(i) of this Section; (ii) the payment to the Owners at the date of maturity or at the date fixed for prior redemption, as applicable, of the full amount to which the Owners would be entitled by way of principal, premium, if any, and interest to the date of such maturity or prior redemption; (iii) the investment of such moneys by the Paying Agent/ Registrar in securities or obligations maturing in sufficient time, in the 0569D -23- �. v �,,.w� ...—,J judgment of the Paying Agent/Registrar, to make available the moneys required for such purposes; (iv) the sending of written notice by registered or certified United States mail to the Owner of each Bond then outstanding within 30 days following the date of such deposit that such moneys are so available for such payment; and (v) the payment to the City, periodically or following final payment of the principal of, premium, if any, and interest on the Bonds, of any moneys, interest earnings, profits or capital gains over and above the amounts necessary for such purposes. & ,� ARTICLE XII AWAR,DING SALE OF THE BONDS AND APPROVAL OF OFFICIAL STATEMENT Section 12.01. Awardin� Sale of the Bonds. The Bonds have been duly advertised for public sale; bid has been received pursuant thereto, and the Bonds are hereby awarded and sold and shall be delivered to , for a price of par plus accrued interest to the Closing Date, and a premium of $ , being the best bid submitted at said public sale, bearing interest at the rates shown in Section 3.02 hereof. Section 12.02. Approval of Official Statement. (a) The Official Notice of Sale, the Official Bid Form and the Official Statement, dated May 15, 1986, prepared and distributed in connection with the sale of the Bonds are hereby approved, confirmed and adopted as official documents and statements of the City. (b) The use of such Official Statement in the reoffering of the Bonds by '� the Purchaser is hereby approved and authorized, with such appropriate variations as are approved by the City Mana.ger and the Purchaser. (c) The proper officers of the City are hereby authorized to execute and deliver a certificate pertaining to the Statement, dated as of the Closing Date, as prescribed in the Official Notice of Sale. (d) The obligation of the Purchaser to accept delivery of the Bonds is subject to such purehaser being furnished with the final, approving opiruon of Jenkens Hutchison & Gilchrist, Bond Counsel for the City, which opuuon shall be dated and delivered the Closing Date. 0569 D -24- � w,._>;� �. ARTICLE XIII MISCELLANEOUS MATTERS Section 13.01. Emer�enc,y. The public importance of this Ordinance and the fact that it is to the best interest of the City to provide funds for the purpose of constructing the permanent public improvements contemplated by this Ordinance at the earliest possible date, for the immediate preservation of the public peace, health or publie welfare of the ,�� City and its citizens creates an emergency and an imperative necessity that the rule requiring ordina.nces to be read at two meetings of the City Council be suspended, and said rule is hereby suspended and this Ordinance shall take effect and be in force from and after its passage and approval; provided the same is adopted on the fust reading by three-fourths of the members of the City Council present, otherwise this Ordinance shall become effective on second reading. FINALLY PASSED, APPROVED AND EFFECTIVE this 17th day of June, 1986. `��—� Mayor, City of rapevine, Texas ATTEST: City Secretary, City f Grapevine, Texas [SEAL] �.,.> APPROVED AS TO FORM: �■■► City Attorney, City of Gra e, xas 0569D -25- �.,a ..•—�