HomeMy WebLinkAboutORD 1978-056 ORDI NANCE NO. 7�-56
' AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
GRAPEVtNE, TEXAS, AUTHOR(ZING THE ISSUANCE OF
$200,000 "CITY OF GRAPEVINE, TEXAS, GENERAL OBLIGATION
� CERTIFICATES Ot= OBLfGATION, SERI ES 1978-A," DATED
O�TOBER 1, 1978, UNDER AND PURSUANT TO THE AUTHORITY
CONTAINED IN THE CERTIFICATE OF OBLIGATION ACT OF
1971, AS AMENDED; MAKING PROVISION FOR THE PAYMENT
AND SECURITY OF SUCH OSLIGATIONS; PROVIDING FOR THE
SALE AND DELIVERY THEREOF; AND ENACTING PROVISIONS
INCIDENT AND RELATING TO THE PURPOSES AND SUBJECT
OF THIS ORDINANCE
W!-IEREAS, under the provisions of Article 2368a.1, V.A.T.C.S., the governing
body of a city is auth�rized to issue Certificates of Obligations for the purposes of
obtaining funds to pay fihe contractunl obligations to be incurred for the constructian
of a public work, to-wit: A public street and highway same being the extension of
Main Street and pc�ying all or a portion of the contractual obligations for professional
services of engineering, attorneys and financial advisors in connection wifih said pubtic
improvement and Certificates of Obligation;
WHEREAS, the City is authorized to provide that such obligations wil{ be
� " payable from and secured by the levy of a direct and continuing annual ad valorem
tax against all taxable property within the City and from the revenues of the City's
combined Waterworks and Sewer System remaining after payment of all operation and
�....� maintenance expenses thereof, and all debt service, reserve and other requirements
in connection with all of the City's revenue bonds (now and hereafter oufstanding)
which are payable from all or any part of the net revenues of the City's combined
Waterworks and Sewer System, and to sel( fihe same for cash as herein provided;
WHEREAS, the City Council has found and determined that it is necessary and
in the best interest of the City and its citizens that it issue the General Obligation
Certificates of Obligation authorized by this Ordinance;
WNEREAS, pursuant to an ordinance heretofore passed by this governing body,
Notice of Intention to Issue City of Grapevine, Texas, General Obligafiion Certificates
of Obligation, was published in a newspaper of genera( circulation in said City on the
20th day of August, 1978 and the 27th day of August, 1978, the date �f the firsfi
publicati�n of said Notice being at least fourteen (14) days prior to the date set for
the passage of this Ordinance;
WHEREAS, no petition of any kind has been filed with the City Secrefiary,
$ �any member of the Counci( or any other official of the City, protesting the issuance
of such Certificates; and '
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� WHEREAS, this Council is now authorized and empowered to proceed with
' the issuance of said Certificates of Obligation and to sell the same for cash; now,
therefore,
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CIN OF GRAPEVINE,
TEXAS:
Section 1. That for the purpose of obtdining funds to pay the contractual
obligation to be incurred for the construction of a public work, to-wit: a public
street and highway same being the extension of Main Street and paying all or a
portion of the contractual obligations for professional services of engineering,
attorneys and financial advisors in connection with said public improvement and
Certificafies of Obligation, there shall be and there is hereby ordered to be issued,
under and by virtue of the Constitution and laws of the State of Texas, particularly
Article 2368a.1, V.A.T.C.S., a Series of Certificates of Obligation of the City
of Grapevine, Texas, to be known as "CITY OF GRAPEVINE, TEXAS, GENERAL
OBLIGATION CERTIFIG4TES OF OBLIGATION, SERIES 1978-A," in the principal
amount of Two Hundred Thousand Dollars ($200,000).
Section 2. That said Certificates shall be dated October lr 1978, shr�l(
be numbered consecutively from One (1) through Forty (40), and shal( become due
and payable serially on October 1 in each of the years in accordcrnce with the
"` "` following schedule:
CERTIFICATE NUMBERS YEARS
� ry (all inclusive) (October 1) AMOUNT
1 - 10 1990 $50,000
11 - 20 i991 ' S0,000
21 - 30 1992 50,000
31 - 40 1993 50,000
PROVIDED, HOWEVER, that the City reserves the right to redeem the Certificates
of this series, in whole or in part, at any time, for a price equal to the par amount
of Certificates redeemed plus interest accrued to the date of redemption; PROVIDED,
further, that at least five (5) days prior to any date upon which any of said Certificates
are to be redeemed, notice of redemption signed by the City Secretary (specifying
fihe serial numbers and amount of Certificafies to be redeemed) shall have been filed
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,` with the Fort Worth National Bank, Fort Worth, Texas (the paying agent named
in each of said Certificates), and if by the date so fixed for redemption the City
shall have made availoble to the paying agent bank funds in amounts sufficient
� to pay the Certificates and accrued interest thereon to the dote of redemption,
pursuant to such notice, the same shall cease to bear interest from and after the
date so fixed for redemption and shall not be deemed to be outstanding for any
purpose except for the purpose of receiving such funds.
Section 3. That each of said Certificates shal) bear interest, white
outstanding, at the rate of Six and One-half per centum (6-1/2°l0) per annum
for the period beginning October 1, 1978 fio April 1, 1979, at the rate of
Seven per centum (7%) per annum for the period beginning Apri) 1, 1979 to
October 1, 1979, and at the rate of Eight per centum (8°l0) per annum for the
period beginning October 1, 1979 to the respective maturity dates�of said
Certificates. Such interest shall be evidenced by proper interesfi coupons
attached to said Certificates and payable on October 1, 1979, and semi-annual(y
thereafter on April 1 and October 1 until maturity or redemption, as aforesaid.
Both principal of and interest on this issue of Certificates shall be payable
in lawful money of the United States of America, without exchange or collection
charges to the owner or holder, at the Fort Worth Nationol Bonk, Fort Worth,
Texas, upon presentafii on ond surrender of Certi f i cates or proper coupons.
Secfiion 4. That the sea) of said City may be impressed on each of the said
Certificates or, in the altnerative, a facsimile of such seal may be printed on
� � said Certificates. The Certificates and interest coupons appurtenant thereto may
be executed by the imprinted or facsimile signatures of fihe Mayor and City Secretary
of the City, and execution in such manner shall have the same effect as if such
Certificates and coupons had been signed by fihe Mayor and City Secrefiary in
person by their manual signatures. Inasmuch as such Certificates are required to
be registered by the Comptroller of Public Accounfis for the State of Texas, only
his signature (or that of a deputy designated in writing fio act for the Comptroller)
shall be required to be manually subscribed to such Certificates in connection with
his registration certificate to appear thereon, as hereinafter provided, all in
accordance with the provisions of Article 717j-1, V.A,T.C,S.
Section 5, The Certificates shall be in substantialfy the fof lowing form:
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� UNITED STATES OF AMERICA
� STATE OF TEXAS
COUNTY OF TARRANT
��,: _�
CITY OF GRAPEVINE
GENERAL OBLIGATION CERTIFICATE OF OBLIGATION
SERIES 1978-A
The City of Grapevine, a municipal corporation of the State of Texas, certifies
and ocknowledges itself to be indebted to and For Value Received, hereby promises
to poy to bearer, on the FIRST DAY OF OCTOBER, , the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America, with.interest thereon
at the rate of Six and One-half per centum (6-1/2%) per annum for the period
beginning October 1, 1978 to April 1, 1979, at the rate of Seven per centum (7°l0}
per annum for the period beginning April 1, 1979 to October 1, 1979, and at the
rate of Eight per centum (8°l0) per annum for the period beginning October 1, 1979
to the mQturity date hereof, payable on October 1, 1979, ond semi-annua(ly there-
after on each Apri I 1 and Qcfiober 1; and i nterest fa I(i ng due on or pri or t� maturi ty
hereof is payable only upon presentation and surrender of the interest coupons attached
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hereto as they several ly become due.
The principal of this Certificate and the interest coupons attached hereto shall
be payable to bearer in Iawfu) money of the United States of America, without
� em exchange ar collection charges to the bearer, upon presentation and surrender of
this Certificate or proper infierest coupon, at the Fort Worth National Bank, Fort
Worth, Texas, which place shall be the paying agent for this series of Certificates,
THIS CERTIFICATE is one of a series of Certificates, numbered consecutively
from One (1) through Forty (40), each in denomination of Five Thousand Dollars
($5,000), aggregating the principal sum of Two Hundred Thousand Dollars ($200,000),
issued for the purpose of obtaining funds to pay the contractual obligation to be
incurred for the construction of a public work, to-wifi: a public street and highway
same being the extension of Main Street and pnyin� all or a portion of the contractual
obligations for professional services of engineering,, a�torneys and financial advisors
in connection with said public improvement and Certificates of Obligation under
and by virtue of fihe Constitution and laws of tl�e State of Texas, including Article
2368a.1, V.A.T.C.S., and in nccordance with an ordinance duly passed and adopted
by the City Council of the City of Grapevine, Texas, and of record in the minutes
of the said City Council.
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� AS SPECIFIED in the Ordinance hereinabove mentioned, the City reserves
, the right to redeem the Certificates of this series, in whole or any part, afi any
time, for a price equal to the par amount of Certificates redeemed plus interest
accrued to the date of redemption; PROVIDED, HOWEVER, thot at least five (5)
` days prior to any date upon which any of said Certificates are fio be redeemed,
notice of redemption signed by the City Secretary (specifying the serial numbers
and amounts of Certificates to be redeemed) shall have been filed with the afore-
said paying agent, and if by the date so fixed for redemption the City shall have
made available to the paying agenf bank funds in the amounts sufficient to pay fihe
Certificates called for redemption and accrued interest thereon to the date of
redempfiion, pursuant fio such nofiice, the same shall cease to bear interest from
and after the date so fixed for redemption.
IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED thqt the issuance of
fihis Certific4te and the series of which it is a part,is duly authorized by taw; that
all acts, conditions and things to be done precedent to and in the issuance of this
Certificate and the series of which ifi is a part, have been properly dane, have
happened and have been performed in regular and due time, form and manner as
required by law; that proper provisions have been made for the levy and collection
annually of taxes upon all taxable property in said City sufficient wifihin the limits
prescribed by law to pay the infieresfi on this Certificate and the series of which it is
a part as due and to provide for the payment of the principa) as fihe same matures;
, and thafi, in addition to said tax, further provision has been made for the payment
of the principa( hereof and the interest hereon, and of the series of which this
Certificafie is a port, by pledging to such purposes the revenues of the City's combined
Waterworks and Sewer System remaining after payment of all operations and maintenance
� n expenses thereof, and all debt service, reserve and other requirements in connecfiion
with al) of the City's revenue bonds (now or hereafter outstanding) which are payable
from all or any part of the net revenues of the City's combined Waterworks ond Sewer
System, all as more fully set forth in said Ordinance, said p(edge of such revenues,
however, being expressly subject and subordinate to any pledge heretofore made or
hereafter fio be made securing the payment of any bonds or other obligafiions payable
from such revenues, all as provided in said Ordinance; that when so collected, such
taxes and revenues shall be appropriated to such purposes; and that fihe total indebfiedness
of the City, including this Certificate and the series of which it is one, does not
exceed any constitutional,statutory, or other limitation.
IN TESTIMONY WHEREOF, the City Council of the City, in accordance with
the provisions of Article 7i7j-1, V.A.T.C.S., has caused the seal of said City to be
impressed or a facsimile thereof to be printed hereon, and this Certificate and ifis
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appurtenant coupons to be executed with the facsimile signatures of the Mayor
M� and Cifiy Secretary of said City, the date �f this Certificate, in conformity with
the Ordinance hereinabove mentioned, being the FIRST DAY OF OCTOBER, 197$.
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Mayor, Ci ty of Grapevi ne, Texas
COUNTERSIGNED:
City Secretary, City of Grapevine, Texas
Section 6, The form of said interest coupor�s shall be substanfiially as
fo)lows:
NO. �
ON THE FIRST DAY OF �
.� The Cifiy of Grapevine, in the Counfiy of Tarrant, Stafie of Texas, un(ess due provision
has been made for the redemption prior to maturity of the Certificate to which this
interest coupon appertains, promises to pay to bearer the amount shown on this interest
coupon, in lawfu) money of the United States of America, without exchange or
�" colleci-ion charges to the bearer, at the Fort Worfh National Bank, Fort Worth, Texas,
being interest due that day on the Certificate, bearing the number hereinafter
designoted, of that series of City of Grapevine, Texas, General Obligation
Certificafies of Obligation, Series 1978-A� dated'October 1, 1978. Cerfificafie No.
City Secretary Mayor
Section 7. That fihe following certificate shall be printed on the back of said
Certificates of Obligation:
OFFICE O� COMPTROLLER X �
X REGISTER NO,
STATE OF TEXAS X
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I HEREBY CERTIFY thafi there is on file and of record in my office a certificafie
� of the Attorney General of the State of Texas to the effect that this Certificate of
I Obligation has been examined by him as required by law, and that it is a valid and
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� binding obligafiion upon the City of Grapevine, Texas, and said Certificate has
this day been registered by me,
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WITNESS MY HAND AND THE SEAL OF MY OFFICE at Austin, Texas, .
mpfirol er of Pu lic ccounts for t e
State of Texas
[SEAL]
Secfiion 8. For all purposes of this ordinance and for clarity with respect to
the issuance of the Certificates herein aufihorized, ond the levy of taxes and
appropriation of revenues fiherefor, the following definitions are provided:
(a) "Certi f i cotes" means the Certi fi cates of Obl igati on authori zed
by this ordinance and additional certificates of obligation, if any, issued on a parity
therewith.
(b) "Cerfiificate Interest and Sinking Fund" or "Certificate Fund"
means the special fund creafied under the provisions o.f Section 9 of #his
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ordinance. . . "
(c) "Prior Lien Bonds" means any and all bonds or other obligafiions
of the City presenfily outstanding or fi afi may be hereafter issued, payable from and
�,� secured by a first lien on and pledge of the net revenues of the City's Waterworks and
Sewer System as authorized by the ordinances authorizing the City's presently out-
standing Prior Lien Bonds and Section 14(a) of this ordinance.
(d) "Surplus Revenues" means the revenues of the City's combined
Waterworks and Sewer System remaining after payr►�nt of all operational and
maintenance expenses thereof, and all debt service, reserve and other requirerrtenfis
in connection wifih the City's Prior Lien Bonds.
(e) "Surplus Revenue Obligations" means the Certificates, the Cifiy's
General Obligation Certificates of Obligation, Series 1978, dated Oetober. 1, 1978
in the aggregate principal amount of$450,000 �and any other obligations the City
may issue payable from Surplus Revenues as authorized by Section 14(b) of this
ordi nance.
Section 9. That for the purpose of paying the interesfi on and to provide a
sinking fund for the paymenfi of principal of and interest on the Certificates, there
"�'" is hereby created and established a special fund to be designated "SPECIAL CITY OF
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,� ,. GRAPEVINE, TEXAS, GENERAL 03LIGATION CERTIFICATES OF OBLIGATION
FUN D," (fihe "Certi f i cate 1 nterest and S i nk i ng Fund") and al I moni es deposi ted
fiherein shalt be used for no other purpose. This fund shall be deposified with the �
Fort Worth Nationa) Bank, Fort Worth, Texas, and said custodian of the Fund is
°1�"" hereby authorized and directed to make withdrawals from said Fund in such amounts
required to pay the principal of and interesfi on the Certificates as the same become
due and mature.
Section 10. That to provide for the payment of the debt service requirements
on the Certificates, being (i) the interest on the Certi�cates, and (ii) a sinking
fund for their payment crt maturity or a sinking fund of 2°lo per annum (whichever
amount shall be the greater), there shall be and there is hereby levied for the current
yenr and each succeeding year thereafter while the Certif'rcates or any interest
fihereon shall remain outstanding and unpaid, a sufficient tax on each one hundred
dollars' valuatian of taxable property in said Cifiy, adequate to pay such debt service
requirements, full alllowance being made for delinquencies and cosfis of collection;
said tax shall be assessed and collected each year and app(ied fio the payment of
the debt service requirements, and the same shall not be diverted to any other
purpose. The taxes so levied and collected shall be paid into the Certificafie Interest
and Sinking Fund. This governing body hereby declares its purpose and intenfi to
provide and levy a tax legally and fully sufficient to pay the said debt service
requirements, it having been defiermined that the existing and available taxing
+� authority of the City for such purpose is adequate to permit a legally sufficient tax
in "consideration of all other outstanding obligations.
,��, The amount of taxes to be provided annually for the payment of principal of
and interest on fihe Certificates shall be determined and accomplished in the following
manner:
(a) The City's annual budget shall reflecfi (i) the omounfi of debt service
requirements to become due on the Certificates in the next succeeding fiscal year
of the City, (ii) the amount on deposit in the Certificate Fund, as of the dafie such
budget is prepared (after giving effect to any payments required to be made during
the remainder af the then current fiscal year), and (iii) the amount of Surplus
Revenues estimated and budgeted to be available for the paymenfi of such debt
service requirements on the Certificdtes during the next succeeding fiscal year of
the Cifiy.
({�) The amount required to be provided in the succeeding fiscal year of
the City from ad valorem taxes shall be the omount, if any, the debt service require-
menfis to be paid on the Certificates in the next succeeding fiscal year of the City
exceed the sum of (i) the amount shown to be on deposit in the Certificate Fund afi
*��� the time the annual budget is prepared, and (ii) the Surplus Revenues shown to be
budgefied and available for payment of said debt service reqvirements after taking
into consideration the debt service requiremenfis and other fund requirements of the
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Prior Lien Bonds and other Surplus Revenue Obligations.
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(c) Following the final approval af the annual budget of the City� the
� goveming body of this Cifiy shall, by ordinance, levy an ad valorem tax at a rate
sufficient to produce taxes in the amount determined in paragraph(b), above, to
be ufiilized for purposes of paying the principal of c�nd interest on the Certificates
�, ,: in the next succeeding fisca) year of the City.
Section 11. The City hereby covenants and agrees that all the Surplus
Revenues, with the excepfiion of those in excess of the amounts required to be
deposified fio the Certi�cafie Fund as hereafter provided, are hereby irrevocably
pledged to the payment of fihe principal of and interest on the Certificates as the
same become due. After satisfying all payments required under fihe terms and
provisions of the ordinances authorizing the Prior Lien Bonds, alt Surplus Revenues
remaining shall be and are hereby pledged and the same shall be appropriated for
the following purposes and in fihe order of precedence shown, as followss
FIRST: To the "SPECIAL CtTY OF GRAPEVINE, TEXAS,
GENERAL OBLIGATt4N CERTIFICATES OF
08LIGATION FUND," to the extent as provided
in Section 12; and
SECOND: To any ofiher proper city purposes now or hereafter
permitted by law.
'°"�`" Section 12. That the City shall cause the pledged Surplus Revenues fio be
deposited in the Certificate Fund as and when the same is available until such time
as such Fund contains an amounfi equal to pay the principal of and interest on the
�� Certificotes to final maturity.
Section 13. All Funds for which fihis ordinance makes provision (except
any porfiion thereof as may be at any time properly invested) shall be secured in
the manner and to the fullesfi extent required by the laws of Texas for the security
of public funds, and such Funds shall be used for the purposes permitted by this
ord i nance.
Section 14, (a) That the City expressly reserves the righfi to issue additionat
Prior Lien Bonds in accordance with the provisions of the Ordinances authorizing
the City's presenfily outstanding Prior Lien Bonds.
(b) That the Ci ty expressl y reserves the right to issue other Certi f i cates
of Obligation or any ofiher obligafiions in any lawful amount, of any nature or kind
and for any lawful purpose which are payable from taxation and Surplus Revenues,
and any such obligations may be on a parity with the Certificates.
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,�;,, (c) That notwifihstanding any other provisions of this Ordinance, the City
expressly reserves the right to issue any obligations in any lawful amount, of any ,
nqture or kind and for any lawful purpose which are payable wholly from fiaxation
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and/or from any other revenues of the City.
Section 15. That,in addition to any other righfis and remedies provided by
the laws of the State of Texas, the City covenants and agrees that in event of
default in the payment of principal of or interest on any of the obligations
authorized and permitted hereby when due, or failure to make the payments
required into the Certificpte Fund or defaults in the observance or performance of
any of the covenants, conditions or obligations sefi forth in this Ordinance, fihe
holder or holders of any of the obligations authorized or permitted hereby shall be
entitled fio apply for a writ of mandamus to a court of proper jurisdiction for the
purpose of compelling and requiring the City and the officials-thereof to observe
and perform any covenants, obligations or conditions prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any defaulfi
shall impair any such right or power or shall be construed to be a waiver of any
such default or acquiescence therein, and every such right and power may be
exercised from time to time as often as may be deemed expedienfi. The specific
remedies provided herein shal( be cumulative of all other exisfiing remedies, and
the specification of such remedies shall not be deemed fio be exclusive.
'°�°�' Secfiion 16. It is the intention of this governing body and accordingly here
recognized and stipulated thafi any provisions, conditions and other recitals which
may be confiained in the ordinances aufihorizing Prior Lien Bonds which bear upon
,,,�� the management of the affairs of the City's Waterworks and Sewer System and
methods providing and administering its revenues shall be applicable as appropriate
to the Certificafies herein authorized but in all respects subject to the priorities
of the Prior Lien Bonds.
Section l7, That all of said Certificates, being numbered One (1) through
Forty (40)�' ,; both inclusive, are hereby sold in accordance with law and shol) be
delive�ed fio FIRST SOUTHWEST COMPANY, Dallas, Texas, for the principa) omount
thereof plus accrued interest to fihe date of delivery. Any such accrued interest
shall be deposited into the Certifrcate Interest �nd Sinking Fund. .
Section 18. That the purchasers' obligation to accepfi delivery of the
Cerfii�cates herein authorized is subject fio their being furnished a fina) opinion
of Messrs. Hutchison Price Boyle 8� Brooks, Att�rneys, Dallas, Texas, approving
such Certificdtes as to their validity, said opinion to be dated and delivered as of
the date of delivery and payment of such Certificafies. Printing of a true and
correct copy of said opinion on the reverse side of each of such Certificates, wifih
"� °" appropriafie certificafie pertaining thereto executed by facsimile signature of the
City Secretary is hereby approved and authorized.
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,� ,, Section 19. The Mayor of the City shal) be and he is hereby authorized
to take and have charge of all necessary orders and records pending investigation
by the Attorney Genera) of the State of Texas, and shall take and have charge
and control of the Certificates herein authorized pending their approval by the
�"" Attorney General, registration by the Comptroller of Public Accounts, and delivery
to the purchaser thereof,
Secfiion 20. That said' City hereby covenants that the proceeds from the
sale of said Certificates will be used as soon as practicable for the purpose for
which said Certificates are issued; that such proceeds will not be invested in any
securities or obligations except for the temporary period pending such use; and
that such proceeds will not be used direcfily or indirectly so as to cause all or any
part of sa i d bonds to be or become "arbi trage certi f i cates" wi th i n the mean i ng of
Section 103(c) of fihe Internal Revenue Code of 1954, as amended,-or any regulations
or rulings prescribed or made pursuant thereto.
Section 21. There is hereby appropriated from the available and Surplus
Revenues of the City sufficienfi and adequate funds to pay the October 1, 1979
interest payment.
PASSED AND APPROVED this the 5th day of September, 1978,
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Mayor, it of Grapevine, Texas
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ATTEST:
City Se retar i of Grapevi e Texas
D AS TO LEGALIN:
[SEAL] �
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City tforney
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