HomeMy WebLinkAboutORD 1993-038 CITY OF GRAPEVINE
ORDINANCE NO. 93-38
BOND ORDINANCE
$17 , 100, 000
CITY OF GR.APEVINE, TEXAS
GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS, SERIES 1993
Dated: September l, 1993
Adopted: September 7, 1993
�., .z
�..: .:
VLH-HBBF.026-2 •
MINUTES AND CERTIFICATION PERTAINING TO
PASSAGE OF AN ORDINANCE
THE STATE OF TEXAS §
f COUNTIES OF TARRANT, §
DALLAS AND DENTON §
CITY OF GRAPEVINE §
On the 7th day of September, 1993, the City Council of the
City of Grapevine, Texas, convened in a Regular Meeting at the
regular meeting place thereof, the meeting being open to the public
and notice of said meeting, giving the date, place and subject
thereof, having been posted as prescribed by Vernon's Texas Revised
Civil Statutes Annotated, Article 6252-17, as amended, and the roll
was called of the duly constituted officers and members of the City
Council, which officers and members are as follows:
William D. Tate, Mayor C. Shane Wilbanks )
Ted R. Ware, Mayor Pro Tem Sharron Spencer )
Will Wickman ) Members of
Jerry L. Pittman ) the Council
Gil Traverse )
and all of said persons were present, except the following
� absentees: None ,
thus constituting a quorum. Whereupon, among other business, a
written ordinance bearing the following caption was introduced:
� ' An Ordinance Providing for the Issuance of City of
Grapevine, Texas, General Obligation Refunding and
Improvement Bonds, Series 1993, in the Aggregate
Principal Amount of $17, 100, 000; Levying a Tax in Payment
Thereof; Approving the Execution and Distribution of an
Official Statement; Calling Certain Obligations of the
City for Redemption; Enacting Other Provisions Relating
Thereto; and Declaring an Emergency
The Ordinance, a full, true and correct copy of which is
attached hereto, was read and reviewed by the City Council.
Thereupon, it was moved and seconded that the Ordinance be
passed and adopted. The Presiding Officer put the motion to a vote
of the members of the City Council, and the Ordinance was finally
passed and adopted by the following vote:
AYES: Tate, Ware, Spencer, Wiibanks, Traverse, Pittman �: Wickman
NOES: None >
� ° ABSTENTIONS: None
�.,.,�
VLH-HBBF.029-2
MINUTES P.PPROVED AND CERTIFIED TO BE TRUE AND CORRECT, and to
correctly reflect the duly constituted officers and members of the
City Council of said City, and the attached and following copy of
said Ordinance is hereby certified to be a true and correct copy of
an official copy thereof on file among the official records of the
City, all on this the 7th day of September, 1993 .
. ��
Mayor, City of Grapevine, Texas
ATTEST:
Cit Secre ary, y of Grapevine,
exas
[s�z]
�. .w
VLH-HBBF.029-2
-2-
TABLE OF CONTENTS
Page
�:: ,
Recitals . . . . . . . . . . . . . . . . . . . . . . . . . 1
ARTICLE I
. DEFINITIONS AND OTHER PRELIMINARY MATTERS
Section 1. 01. Definitions . . . . . . . . . . . . . . . . 3
Section 1. 02 . Findings . . . . . . . . . . . . . . . . . 4
Section 1. 03 . Table of Contents, Titles and Headings . . . 4
Section 1. 04. Interpretation . . . . . . . . . . . . . . . 4
ARTICLE II
SECURITY FOR THE BONDS; INTEREST AND SINKING FUND
Section 2 . O1. Tax Levy . . . . . . . . . . . . . . . . . . • 5
ARTICLE III
AUTHORIZATION; GENERAL TERMS AND PROVISIONS
REGARDING THE BONDS
Section 3 .01. Authorization . . . . . . . . . . . . . 6
Section 3 . 02 . Date, Denomination, Maturities and Interest 6
�Section 3 . Q3 . Medium, Method and Place of Payment . . . . 7
Section 3 . 04 . Execution and Registration of Bonds . . . . 8
�,, v Section 3 . 05. Ownership . . . . . . . . . . . . . . . . . 9
Section 3 . 06. Registration, Transfer and Exchange . . . . 9
Section 3 . 07. Cancellation . . . . . . . . . . . . . . . . 10
Section 3 . 08 . Temporary Bonds . . . . . . . . . . . . . . 10
Section 3 .09 . Replacement Bonds . . . . . . . . . . . . . il
Section 3 . 10. Book-Entry Only System . . . . . . . . . . 12
Section 3.11. Successor Securities Depository; Transfer Outside
Book-Entry Only System . . . . . . . . . . 13
Section 3 . 12 . Payments to Cede & Co . . . . . . . . . . . 13
ARTICLE IV
REDEMPTION OF BONDS BEFORE MATURZTY
Section 4. 01. Limitation on Redemption . . . . . . . . . . 14
Section 4. 02. Optional Redemption . . . . . . . . . . . . 14
Section 4.03. Partial Redemption . . . . . . . . . . . . 14
Section 4. 04 . Notice of Redemption to Owners . . . . . . . 15
Section 4.05. Payment Upon Redemption . . . . . . . . . . 15
Section 4 . 06. Effect of Redemption . . . . . . . . . . . . 15
�..
�,:,,.
VLH-HBBF.�26-2
(1�
ARTICLE V
PAYING AGENT/REGISTRAR
Section 5. 01. Appointment of Initial Paying Agent/Registrar 16
Section 5. 02 . Qualifications . . . . . . . . . . . . . . 16
Section 5. 03 . Maintaining Paying Agent/Registrar . . . . . 16
Section 5. 04 . Termination . . . . . . . . . . . . . . . . 16
Section 5. 05 . Notice of Change to Owners . . . . . . . . . 16
Section 5.`06. Agreement to Perform Duties and Functions . 17
Section 5. 07 . Delivery of Records to Successor . . . . . . 17
ARTICLE VI
FORM OF THE BONDS
Section 6. 01. _ Form Generally . . . . . . . . . . . . . . . 17
Section 6. 02 . Form of the Bonds . . . . . . . . . . . . . 18
Section 6. 03 . CUSIP Registration . . . . . . . . . . . . . 23
Section 6. 04 . Legal Opinion . . . . . . . . . . . . . . . 23
Section 6. 05. Statement of Insurance . . . . . . . . . . . 23
ARTICLE VII
SALE AND DELIVERY OF BONDS, DEPOSIT OF PROCEEDS
� Section 7 . 01. Sale of Bonds, Official Statement . . . . . 23
Section 7. 02 . Control and Delivery of Bonds . . . . . . . 24
Section 7. 03 . Creation of Funds . . . . . . . . . . . . . 24
t Section 7. 04 . Deposit of Proceeds . . . . . . . . . . . . 25
Section 7 . 05. Interest and Sinking Fund . . . . . . . . . 25
Section 7 . 06. Construction Fund . . . . . . . . . . . . . 26
Section 7 . 07 . Excess Bond Proceeds . . . . . . . . . . . . 26
Section 7 . 08 . Purchase of Securities for Escrow Fund . . . 26
Section 7 . 09 . Approval of Escrow Agreement . . . . . . . . 26
Section 7. 10. Redemption of Refunded Bonds . . . . . . . . 26
ARTICLE VIII
INVESTMENTS
Section 8. 01. Investments . . . . . . . . . . . . . . . . 27
Section 8 . 02 . Investment Income . . . . . . . . . . . . . 27
ARTICLE IX
PARTICULAR REPRESENTATIONS AND COVENANTS
Section 9. 01. Payment of the Bonds . . . . . . . . . . . . 27
Section 9 . 02 . Other Representations and Covenants . . . . 28
VLH-HBBF.026-2 '
(11)
�,
ARTICLE X
DEFAULT AND REMEDIES
Y= Section 10. 01. Events of Default . . . . . . . . . . . . . 29
Section 10. 02 . Remedies for Default . . . . . . . . . . . 29
Section 10. 03 . Remedies Not Exclusive . . . . . . . . . . 30
ARTICLE XI
DISCHARGE -
Section 11.01. Discharge by Payment . . . . . . . . . . . 30
Section 11. 02 . Discharge by Deposit . . . . . . . . . . . 31
ARTICLE XII
MUNICIPAL BOND GUARANTY INSURANCE
Section 12 . 01. Application of this Article . . . . . . . . 32
Section 12. 02 . Information to be Provided to Insurer . . . 32
ARTICLE XIII
EMERGENCY
� . Section 13 . 01. Declaring an Emergency . . . . . . . . . . 33
EXECUTION . . . . . . . . . . . . . . . . . . . . . . . . . 3 4
;�., �
�,,,
�..a
VLH-HBBF.O7b-2
(111�
ORDINANCE NO. 93-38
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF CITY OF GRAPEVINE,
° TEXAS, GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS,
SERIES 1993 , IN THE AGGREGATE PRINCIPAL AMOUNT OF $17, 100, 000;
LEVYING A TAX IN PAYMENT THEREOF; APPROVING THE EXECUTION AND
�- � DISTRIBUTION OF AN OFFICIAL STATEMENT; CALLING CERTAIN
OBLIGATIONS OF THE CITY FOR REDEMPTION; ENACTING OTHER
PROVISIONS RELATING THERETO; AND DECLARING AN EMERGENCY
WHEREAS, in accordance with the Constitution and the laws of
the State of Texas, a bond election was held in the City of
Grapevine, Texas (the "City") , on December 3, 1988, wherein bonds
for permanent improvements were duly and favorably voted; and
WHEREAS, at said election, the following were among the
purposes and amounts of general obligation bonds authorized; the
amounts previously issued for said purposes pursuant to the voted
authorizations; the amounts therefrom being issued pursuant to this
Ordinance (the "Ordinance") ; and the respective balances that
remain unissued for the indicated purposes after the issuance of
the bonds herein authorized, to-wit:
Amount Amount
Election Amount Previously Being Unissued
n Purpose Date Voted Issued Issued Balance
� . :_
Streets 12/3/88 $22 , 570, 000 $17,415, 000 $2 , 040, 000 $3, 115, 000
WFiEREAS, the City of Grapevine, Texas (the "City") is by this
Ordinance authorizing the issuance of its refunding bonds for the
purpose of refunding a portion of its outstanding bonds, as
follows:
City of Grapevine, Texas General Obligation Bonds, Series
1989, dated May 1, 1989, maturing in the years 2000
through 2009 , both inclusive, outstanding in the
principal amount of $4,425, 000, to be redeemed on
February 15, 1999 (the "Series 1989 Bonds") ;
City of Grapevine, Texas General Obligation Bonds, Series
1991, dated March 1, 1991, maturing in the years 2002 through
2011, both inclusive, outstanding in the principal amount of
$6, 020, 000, to be redeemed on February 15, 2001 (the "Series
1991 Bonds") ; and
City of Grapevine, Texas, General Obligation Improvement
Bonds, Series 1992-A, dated January 15, 1992 , maturing in the
�._:,� years 2002 through 2012 , both inclusive, outstanding in the
principal amount of $2, 840, 000, to be redeemed on February 1,
2001 (the "Series 1992-A Bonds") ;
�,:.�
VLH-HBBF.026-2 '
(collectively, the "Refunded Bonds") ; and
WHEREAS, under the provisions of TEX.REV.CIV.STAT.ANN. art.
717k, as amended, the City is authorized to issue bonds for the
� purpose specified in this Ordinance; and
WHEREAS, the City Council hereby finds, determines and
declares that the refunding of the Refunded Bonds is necessary and
required to restructure the debt of the City, thereby resulting in
a debt service savings to the City, and the City Council
additionally finds, determines and declares that it is necessary
and in the best interests of the City and its citizens that it
authorize by this Ordinance the issuance and delivery of bonds for
the construction of the improvements contemplated herein at the
earliest date; and
WHEREAS, the meeting at which this Ordinance is considered is
open to the public as required by law, and the public notice of the
time, place and purpose of said meeting was given as required by
Article 6252-17, Vernon's Texas Civil Statutes, as amended;
therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS:
�,,. .,
VLH-HBBR026-2
2
ARTICLE I
DEFINITIONS AND OTHER PRELIMINARY 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 date of the Bonds
by Section 3 . 02 (a) of this Ordinance.
"Bonds" means the City's bonds authorized to be issued by
Section 3 .01 of this Ordinance and designated as "City of
Grapevine, Texas, General Obligation Refunding and Improvement
Bonds, Series 1993 , " in the aggregate principal amount authorized
in Section 3 . 01 hereof.
"Closing Date" means the date of the initial delivery of and
payment for the Bonds.
."Code" means the Internal Revenue Code of 1986, as amended,
,_ including applicable regulations, published rulings and court
decisions.
"DTC" shall mean The Depository Trust Company of New York, New
� York, or any successor securities depository.
"DTC Participant" shall mean brokers and dealers, banks, trust
companies, clearing corporations and certain other organizations on
whose behalf DTC was created to hold securities to facilitate the
clearance and settlement of securities transactions among DTC
Participants.
"Escraw Agent" means Bank One, Texas, N.A. , Fort Worth, Texas.
"Escrow Agreement" means the escrow agreement, dated as of
September 7, 1943 , by and between the City and the Escrow Agent.
"Event nf Default" means any event of default as defined in
Section 10.Q2 of this Ordinance.
"Initial Bond" means the Bond authorized by Section 3 . 04 of
this Ordinarice.
"Interest and Sinking Fund" means; the interest and sinking
fund estahl�shed by Section 2 . 02 of this Ordinance.
� "Interest Payment Date" means the date or dates on which
interest an the Bonds is scheduled to be paid until their
��;,..,
VLH-HBBF.026-2 .
3
respective dates of maturity or prior redemption, such dates being
February 15 and August 15, commencing February 15, 1994 .
"Maturity Date" means the date specified in Section 3 . 02
� hereof on which the principal of the Bonds is due and payable.
"Owner" means the person who is the registered owner of a Bond
or Bonds, as shown in the Register.
"Paying Agent/Registrar" means initially Bank One, Texas,
N.A. , Fort Worth, Texas, or any successor thereto as provided in
this Ordinance.
"Record Date" means the last business day of the month next
preceding an Interest Payment Date.
"Register" means the Register specified in Section 3 . 06 (a) of
this Ordinance.
"Special Record Date" means that special record date
established pursuant to Section 3 . 03 (f) hereof.
"Unclaimed Payments" means money deposited with the Paying
Agent/Registrar for the payment of principal of or interest on the
Bonds as the same come due and payable and remaining unclaimed by
the Owners of such Bonds for ninety (90) days after the applicable
payment or redemption date.
Section 1. 02 . Findincrs.
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 Headincts.
The table of contents, titles and headings of the Articles and
Sections of this Ordinance 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.
Section 1. 04 . Interpretation.
(a) Unless the context requires otherwise, words of the
masculine gender shall 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
t - the plural number and vice versa.
�.._
VLH-HBBF.026-2 '
4
(b) This Ordinance and all the terms and provisions hereof
„ shall be liberally construed to effectuate the purposes set forth
herein.
� ,.�
ARTICLE II
SECURITY FOR THE BONDS; INTEREST AND SINKING FUND
Section 2 . 01. Tax Lew.
(a) Pursuant to the authority granted by the Texas
Constitution and the laws of the State of Texas, there shall be
levied and there is hereby levied for the current year and for each
succeeding year hereafter while any of the Bonds or any interest
thereon is outstanding and unpaid, an ad valorem tax on each one
hundred dollars valuation of taxable property within the City, at
a rate sufficient, within the limit prescribed by law, to pay the
debt service requirements of the Bonds, being (i) the interest on
the Bonds,. and (ii) a sinking fund for their redemption at maturity
or a sinking fund of two percent (2�) per annum (whichever amount
is greater) , when due and payable, full allowance being made for
delinquencies and costs of collection.
(b) The ad valorem tax thus levied shall be assessed and
collected each year against all property appearing on the tax rolls
of the City most recently approved in accordance with law and the
money thus collected shall be deposited as collected to the
Interest and Sinking Fund.
�,, ;
(c) Said ad valorem tax, the collections therefrom, and all
amounts on deposit in or required hereby to be deposited to the
Interest and Sinking Fund are hereby pledged and committed
irrevocably to the payment of the principal of and interest on the
Bonds when and as due and payable in accordance with their terms
and this Ordinance.
(d) If the lien and provisions of this Ordinance shall be
released in a manner permitted by Article XI hereof, then the
collection of such ad valorem tax may be suspended or appropriately
reduced, as the facts may permit, and further deposits to the
Interest and Sinking Fund �may be suspended or appropriately
reduced, as the facts may permit. In determining the aggregate
principal amount of outstanding Bonds, there shall be subtracted
the amount 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.
�..:�
VLH-HBBF.026•2
5
ARTICLE III
AUTHORIZATION; GENERAL TERMS AND PROVISIONS
REGARDING THE BONDS �
�,. .a
Section 3 . 01. Authorization.
The City' s bonds to be designated "City of Grapevine, Texas,
General Obligation Refunding and Improvement Bonds, Series 1993, "
are hereby authorized to be issued and delivered in accordance with
the Constitution and laws of the State of Texas, including
specifically Psticle 1175 and Article 717k, V.A.T.C.S. , as amended,
and the Charter of the City. The Bonds shall be issued in the
aggregate original principal amount of $17, 100, 000, for the
purposes of providing funds (i) in the amount of $2, 040, 000 to
construct permanent public improvements, to wit: constructing and
improving streets in and for the City including sidewalks,
landscaping, storm drainage improvements, parking facilities,
traffic control and maintenance necessary and incidental thereto;
(ii) to refund the Refunded Bonds and (iii) for payment of the
costs of issuing the Bonds.
Section 3 . 02 . Date Denomination Maturities and Interest.
_(a) The Bonds shall be dated September 1, 1993 , 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, except the Bond, which shall be
�. .
numbered T-l.
(b) The Bonds shall mature on February 15 in the years and in
the principal amounts and shall bear interest as set forth in the
following schedule:
Principal Interest
Years Installments Rates
1994 $310, 000 2 . 50$
1995 205, 000 3 . 20$
1996 210, 000 3 .55�
1997 220, 000 3 .85�
1998 225, 000 4 . 05�
1999 235, 000 4.20$
2000 550, 000 4. 30�
2001 575, 000 4.40$
2002 1, 215, 000 4.50$
2003 1, 270, 000 4. 60�
2004 1, 335, 000 4 .70$
2005 1, 405, 000 4 .80�
2006 1, 475, 000 ' 4 .90$
'�` " 2007 1, 565, 000 5. 00�
2008 1, 640, 000 5. 10$
2009 1, 730, 000 5. 10$
�; -�
2010 1, 190, 000 5. 10%
VLH•HBBF.026-2 6 .
2011 $1, 260, 000 5. 10$
2012 485, 000 5. 10�
(c) Interest shall accrue and be paid on each Bond
respectively until its maturity or prior redemption, 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 rates per annum for
each respective maturity specified in the schedule contained in
subsection (b) above. Such interest shall be payable semiannually
commencing on February 15, 1994, and on each February 25 and August
15 thereafter until maturity or prior redemption. Interest on the
Bonds shall be calculated on the basis of a 360-day year composed
of 12 months of 30 days each.
Section 3 . 03 . Medium Method and PZace of Pavment.
(a) The principal of and interest on the Bonds shall be paid
in lawful money of the United States of America.
(b) Interest on the Bonds shall be payable to the Owners as
shown in the Register at the close of business on the Record Date.
(c) Interest on the Bonds shall be paid by check, dated as of
the Interest Payment Date, and sent by the Paying Agent/Registrar
to each Owner, first class United States mail, postage prepaid, to
the address of each Owner as it appears in the Register, or by such
�' " other customary banking arrangement acceptable to the Paying
Agent/Registrar and the Owner; provided, however, the Owner shall
bear all risk and expense of such other banking arrangement.
� (d) The principal of each Bond shall be paid to the Owner
thereof on the due date (whether at the Maturity Date or the date
of prior redemption thereof) upon presentation and surrender of
such Bond at the designated 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, legal holiday,
or day on which 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 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 and no
additional interest shall be due by reason of nonpayment on the
date on which such payment is otherwise stated to be due and
payable.
(f) In the event of a nonpayment of interest on a scheduled
payment date, and f or thirty (3 0) days tYiereafter,a new record date
����
for such interest payment (a "Special Record Date") will be
established by the Paying Agent/Registrar, if and when funds or
the payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date
�,,.y
VLH-HBBF.026-2
7
of the past due interest (the "Special Payment Date, " which shall
be fifteen (15) days after the Special Record Date) shall be sent
at least five (5) business days prior to the Special Record Date by
United States mail, first class, postage prepaid, to the address of
each Owner appearing on the books of the Paying Agent/Registrar at
� the close of business on the last business day next preceding the
date of mailing of such notice.
(g) Unclaimed Payments shall be segregated in a special
account and held in trust, uninvested by the Paying
Agent/Registrar, for the account of the Owner of the Bonds to which
the Unclaimed Payments pertain. Subject to any escheat, abandoned
property or similar law, Unclaimed Payments remaining unclaimed by
the Owners entitled thereto for four (4) years after the applicable
payment or redemption date 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 holders of such
Bonds for any further payment of such unclaimed moneys or on
account of any such Bonds, subject to any applicable escheat law or
similar law.
Section 3 . 04 . Execution and Reqistration of Bonds.
` (a) The Bonds shall be executed on behalf of the City by the
Mayor and the City Secretary, 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 effect 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.
(b) In the event that any officer of the City whose manual or
facsimile signature appears on the Bonds ceases to be such 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 such office.
(c) Except as provided below, 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
the Certificate of Paying Agent/Registrar substantially in the form
provided herein, duly authenticated by manual execution by an
officer or�duly authorized signatory of the Paying Agent/Registrar.
It shall not be reguired that the sa�►e officer or authori2ed
signatory of the Paying Agent/Registrar sign the Certificate of
� 4 Paying Agent/Registrar on all of the Bonds. In lieu of the
executed Certificate of Paying Agent/Registrar described above, the
Initial Bonds delivered at the Closing Date shall have attached
�µ �
VLH-HBBF.026-2 8 .
thereto 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
agent, which Certificate shall be evidence that the Bond has been
�-. duly approved by the Attorney General of the State of Texas and
that it is a valid and binding obligation of the City, and has been
registered by the Comptroller of Public Accounts of the State of
Texas.
(d) On the Closing Date, one (1) initial Bond, being a single
Initial Bond representing the entire principal amount of the Bonds,
payable in stated installments to the Purchaser or its designee,
executed with the manual or facsimile signature of the Mayor and
City Secretary of the City, approved by the Attorney General, and
registered and manually signed by the Comptroller of Public
Accounts, will be delivered to the initial purchaser or its
designee. Upon payment for the Initial Bond, the Paying
Agent/Registrar shall cancel the Initial Bond and deliver one Bond
for each maturity, in the aggregate principal of all Bonds for such
maturity, registered in the name of Cede & Co. , as nominee for DTC,
to DTC on behalf of the initial purchaser.
Section 3 . 05. Ownership.
_(a) The City, the Paying Agent/Registrar and any other person
„ e 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 redemption premium, if any,
thereon, for the further purpose of making and receiving payment of
�° � the interest thereon (subject to the provisions herein that for the
Bonds interest is to be paid to the person in whose name the Bond
is registered on the Record Date or the Special Record 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 Owner of a Bond shall be valid
and effectual and shall discharge the liability of the City and the
Paying Agent/Registrar upon such Bond to the extent of the sums
paid.
Section 3 . 06. RecListration Transfer and Exchanqe.
(a) So long as any Bonds remain outstanding, the City shall
cause the Paying Agent/Registrar to keep at its designated office
a 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 accordance with this
Ordinance.
,� ,� (b) The ownership of a Bond may be transferred only upon the
presentation and surrender of the Bond at the designated office of
the Paying Agent/Registrar with such endorsement or other evidence
� ,;�
of transfer as is acceptable to the Paying Agent/Registrar. No
VLH-HBBF.026-2
9
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 designated office of the Paying
Agent/Registrar for a Bond or Bonds of the same maturity and
interest rate and in authorized denominations and in an aggregate
principal amount egual to the unpaid principal amount of Bonds
presented for exchange. The Paying Agent/ Registrar is hereby
authorized to authenticate and deliver Bonds exchanged for other
Bonds in accordance with this Section.
(d) Each exchange Bond delivered by the Paying Agent/
Registrar in accordance with this Section shall constitute an
original 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, subsequent transfer, or exchange for any
different denomination of any of the Bonds. The Paying
Agent/Registrar, however, 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.
(f) Neither the City nor the Paying Agent/Registrar shall be
required to issue, transfer, or exchange any Bond called for
� redemption, in whole or in part, where such redemption is scheduled
to occur within 45 calendar days after the transfer or exchange
date; provided, however, such limitation shall not be applicable to
an exchange by the Owner of the uncalled principal balance of a
Bond.
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 proper
records shall be made regarding such payment, redemption, exchange
or replacement. The Paying Agent/Registrar shall then return such
cancelled Bonds to the City or may in accordance with law destroy
such cancelled Bonds and periodically furnish the City with
certificates of destruction of such Bonds. •
Section 3 . 08 . TemAOrary Bonds.
(a) Following the delivery and registration of the Initial
_ Bond and pending the preparation of definitive Bonds, the proper
officers of 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,
VLH-HBBF.026-2 '
10
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 the Bonds in
definitive form; thereupon, upon the presentation and surrender of
the Bonds in temporary form to the Paying Agent/Registrar, the
Paying Agent/Registrar shall cancel the Bonds in temporary form and
shall authenticate and deliver in exchange therefor Bonds of the
same maturity and series, in definitive form, in authorized
denominations, and in the same aggregate principal amount as the
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/Registrar 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 knowledge that such Bond has been acquired by a bona fide
purchaser, shall authenticate and deliver a replacement Bond of
like tenor and principal amount, bearing a number not
contemporaneously outstanding, provided that the Owner first:
(i) furnishes to the Paying Agent/Registrar
satisfactory evidence of his or her ownership of and the
circumstances of the loss, destruction or theft of such Bond;
(ii) furnishes such security or indemnity as may be
required by the Paying Agent/Registrar to save it and the City
harmless;
�,, �, (iii) pays all expenses and charges in connection
therewith, including, but not limited to, printing costs,
legal fees, fees of the Paying Agent/Registrar and any tax or
�,--:-.
VLH-HBBF.026-2 11
other governmental charge that is authorized to be imposed;
" and
(iv) satisfies any other reasonable requirementS
� imposed by the City and the Paying Agent/Registrar.
(c) If, after the delivery of such replacement Bond, a bona
fide purchaser of the original Bond in lieu of which such
replacement Bond was issued presents for payment such original
Bond, the City and the Paying Agent/Registrar shall be entitled to
recover such replacement Bond from the person to whom it was
delivered or any person taking therefrom, except a bona fide
purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the City or the Paying Agent/Registrar in
connection therewith.
(d) In the event that any such mutilated, lost, apparently
destroyed or wrongfully taken Bond has become or is about to become
due and payable, the Paying Agent/Registrar, in its discretion,
instead of issuing a replacement Bond, may pay such Bond if it has
become due and payable or may pay such Bond when it becomes due and
payable.
(e) Each replacement Bond delivered in accordance 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 replacement Bond is delivered.
Section 3 . 10. Book-Entry Only Svstem.
Notwithstanding any other provision hereof, upon initial
issuance of the Bonds, the Bonds shall be registered in the name of
Cede & Co. , as nominee of DTC. The definitive Bonds shall be
initially issued in the form of a single separate bond for each of
the maturities thereof.
With respect to Bonds registered in the name of Cede & Co. , as
nominee of DTC, the City and the Paying Agent/ Registrar shall have
no responsibility or obligation to any DTC Participant or to any
person on behalf of whom such a DTC Participant holds an interest
in the Bonds. Without limiting the immediately preceding sentence,
the City and the Paying Agent/Registrar shall have no
responsibility or obligation with respect to (i) the accuracy of
the records of DTC, Cede & Co. or any DTC Participant with respect
to any ownership interest in the Bonds, (ii) the delivery to any
DTC Participant or any other person, other than a Bondholder, as
shown on the Register, of any notice with respect to the Bonds,
including any notice of redemption, or (iii) the payment to any DTC
�:...� Participant or any other person, other than a Bondholder, as shown
in the Register, of any amount with respect to principal of,
premium, if any, or interest on the Bonds. Notwithstanding any
�..�
other provision of this Ordinance to the contrary, the City and the
VL.H-HBBF.026-2
12
Paying Agent/Registrar shall be entitled to treat and consider the
° person in whose name each Bond is registered in the Register as the
absolute owner of such Bond for the purpose of payment of principal
of, premium, if any, and interest on the Bonds, for the purpose of
�., . all matters with respect to such Bond, for the purpose of
registering transfer with respect to such Bond, and for all other
purposes whatsoever. The Paying Agent/Registrar shall pay all
principal of, premium, if any, and interest on the Bonds only to or
upon the order of the respective owners, as shown in the Register
as provided in this Ordinance, or their respective attorneys duly
authorized in writing, and all such payments shall be valid and
effe�tive to fully satisfy and discharge the City's obligations
with respect to payment of, premium, if any, and interest on the
Bonds to the extent of the sum or sums so paid. No person other
than an owner, as shown in the Register, shall receive a Bond
certificate evidencing the obligation of the City to make payments
of amounts due pursuant to this Ordinance. Upon delivery by DTC to
the Paying Agent/Registrar of written notice to the effect that DTC
has determined to substitute a new nominee in place of Cede & Co. ,
the word "Cede & Co. " in this Ordinance shal l ref er to such new
nominee of DTC.
Section 3 . 11. Successor Securities Depositorv: Transfer
Outside Book-Entry Onlv Svstem.
_In the event that the City or the Paying Agent/Registrar
determines that DTC is incapable of discharging its
responsibilities described herein and in the representation letter
of the City to DTC, and that it is in the best interest of the
� beneficial owners of the Bonds that they be able to obtain
certificated Bonds, or in the event DTC discontinues the services
described herein, the City or the Paying Agent/Registrar shall (i)
appoint a successor securities depository, qualified to act as such
under Section 17 (a) of the Securities and Exchange Act of 1934, as
amended, notify DTC and DTC Participants of the appointment of such
successor securities depository and transfer one or more separate
Bonds to such successor securities depository or (ii) notify DTC
and DTC Participants of the availability through DTC of Bonds and
transfer one or more separate Bonds to DTC Participants having
Bonds credited to their DTC accounts. In such event, the Bonds
shall no longer be restricted to being registered in the Register
in the name of Cede & Co. , as nominee of DTC, but may be registered
in the name of the successor securities depository, or its nominee,
or in whatever name or names Bondholders transferring or exchanging
Bonds shall designate, in accordance with the provisions of this
Ordinance.
Section 3 . 12 . Payments to Cede & Co.
Notwithstanding any other provision of this Ordinance to the
�,,, a contrary, so long as any Bonds are registered in the name of Cede
& Co. , as nominee of DTC, all payments with respect to principal
of, premium, if any, and interest on such Bonds, and all notices
�,.m�
with respect to such Bonds, shall be made and given, respectively,
VLH-HBBF.026-2
• 13
in the manner provided in the representation letter of the City to
DTC.
ARTICLE IV
REDII�TION OF BONDS BEFORE MATURITY
Section 4 . 01. Limitation on Redemption.
The Bonds shall be subject to redemption before scheduled
maturity only as provided in this Article IV.
Section 4 . 02 . Optional Redemption.
(a) The City reserves the option to redeem the Bonds maturing
on and after February 15, 2004, in whole or any part, before their
respective scheduled maturity dates, on February 15, 2003 , or on
any date thereafter, such redemption date or dates to be fixed by
the City, at a price equal to the principal amount thereof called
for redemption plus accrued interest to the date fixed for
redemption.
(b) The City, at least forty-five (45) days before the
redemption date, unless a shorter period shall be satisfactory to
b the Paying Agent/Registrar, shall notify the Paying Agent/Registrar
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/Registrar
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
$S, 000 may be redeemed, but only in a principal amount equal to
$5, 000 or any integral multiple thereof. If such a Bond is to be
partially redeemed, 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.
� � (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.
�.>,>
VLH-HBBF.026-2 14
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 thirty (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 at
the close of business on the business day next preceding the date
of mailing such notice.
(b) The notice shall state the redemption date, the
redemption price, the place at which the Bonds are to be
surrendered for payment, and, if less than all 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
conclusively presumed to have been duly given, whether or not the
Owner receives such notice.
Section 4 . 05. Payment Upon Redemption.
(a) Before or on each redemption date, the City shall deposit
with the Paying Agent/Registrar money sufficient to pay all amounts
due on the redemption date and 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 such amounts as are
received by the Paying Agent/Registrar from the City and shall use
such funds solely for the purpose of paying the principal of,
" redemption premium, if any, and accrued interest on the Bonds being
redeemed.
(b) Upon presentation and surrender of any Bond called for
redemption at the designated office of the Paying Agent/Registrar
on or after the date fixed for redemption, the Paying
Agent/Registrar shall pay the principal of, redemption 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. Effect 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 its
obligation to make provision for the payment of the principal
thereof, redemption 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 for payment on such date.
(b) If the City shall fail to make provision for payment of
�;,,, �
all sums due on a redemption date, then any Bond or portion thereof
VLFi-HBBF.026-2 .
15
called for redemption shall continue to bear interest at the rate
' stated on the Bond until due provision is made for the payment of
same by the City.
ARTICLE V
PAYING AGENT/REGISTRAR
Section 5. 01. Appointment of Initial Payina Acrent/ReQistrar.
Bank One, Texas, N.A. , Fort Worth, Texas, is hereby appointed
as the initial Paying Agent/Registrar for the Bonds.
Section 5. 02 . 4ualifications.
Each Paying Agent/Registrar shall be a commercial bank, a
trust company organized under the laws of the State of Texas, or
any other entity duly qualified and legally authorized to serve as
and perform the duties and services of paying agent and registrar
for the Bonds.
Section 5. 03 . Maintaining Payincr Actent/Reqistrar.
_(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, upon not less than sixty (60) days notice, reserves
the right to terminate the appointment of any Paying Agent/
Registrar by delivering to the entity whose appointment is to be
terminated written notice of such termination.
Section 5. 05. Notice of Chanc�e to Owners.
Promptly upon each change in the entity serving as Paying
Agent/Registrar, the City will cause notice of the change 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.
,�...,�
�;r:�
VLH-HBBF.026-2
16
Section 5 . 06 . Aareement to Perform Duties and Functions.
By accepting the appointment as Paying Agent/Registrar and
executing the Paying Agent/Registrar Agreement, the Paying
��°� Agent/Registrar is deemed to have agreed to the provisions of this
Ordinance and that it w�ll perform the duties and functions of
Paying Agent/Registrar prescribed thereby.
Section 5. 07 . Deliverv 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.
ARTICLE VI
FORM OF THE BONDS
Section 6. 01. Form Generallv.
(a) The Bonds, 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) shall 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 any reproduction of an
opinion of counsel) thereon as, consistently herewith, may be
determined by the City or by the officers executing such Bonds, as
evidenced 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 typewritten, printed,
lithographed, or engraved, and may be produced by any combination
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.
�, ,s
VLH-HSBF.026-2 • 1,7
Section 6 . 02 . Form of the Bonds.
The form of the Bonds, 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
COUNTIES OF TARRANT, DALLAS AND DENTON
CITY OF GRAPEVINE, TEXAS
GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BOND
SERIES 1993
INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP NO. :
September 1, 1993
The City of Grapevine, Texas (the "City") , in the Counties of
- Tarrant, Dallas and Denton, State of Texas, for value received,
hereby promises to pay to
�, _.
or registered assigns, on the Maturity 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 15 and August 15 of each year,
commencing February 15, 1994. •
The principal of this Bond shall be payable without exchange
or collection charges in lawful money_ of the United States of
America upon presentation and surrender of this Bond at the
� � designated 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, and will
,��,,� be mailed by the Paying Agent/Registrar to the registered owner at
VLH-HBBF.02b•Z 1 H
� ,, the address shown on the registration books kept by the Paying
Agent/Registrar or by such other customary banking arrangement
acceptable to the Paying Agent/Registrar and the registered owner;
provided, however, such registered owner shall bear all risk and
�=°� expense of such other banking arrangement. 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 "Record Date, " which shall be the last business day
of the month next preceding such interest payment date. In the
event of a nonpayment of interest on a scheduled payment date, and
for thirty (30) days thereafter,a new record date for such interest
payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest
have been 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 fifteen (15) days after
the Special Record Date) shall be sent at least five (5) business
days prior to the Special Record Date by United States mail, f irst
class, postage prepaid, to the address of each Owner appearing on
the books of the Paying Agent/Registrar at the close 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
this Bond shall be a Saturday, Sunday, legal holiday, or day on
� ,, which 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 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 and no
additional interest shall be due by reason of nonpayment on the
date on which such payment is otherwise stated to be due and
payable.
This Bond is one of a series of fully registered bonds
specified in the title hereof issued in the aggregate principal
amount of $17, 100, 000 (herein referred to as the "Bonds") , issued
pursuant to a certain ordinance of the City (the "Ordinance") for
the purposes of providing funds with which to (i) make various
permanent public improvements for and within the City, (ii) to
refund certain of the City' s outstanding general obligation bonds
and (iii) pay the costs of issuing the Bonds.
The City has reserved the option to redeem the Bonds maturing
on or after February 15, 2004 , in whole or in part before their
respective scheduled maturity dates, on February 15, 2003, or on
any date thereafter, at a price equal to the principal amount of
the Bonds so called for redemption plus accrued interest to the
� a 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 direct the Paying
�,, <.
VLH-HBBF.026-2 •
19
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 thirty (30) days
before the date fixed 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 become due and payable on the redemption date
specified in such notice; 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 cease 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 designated office of the
Paying Agent/Registrar with such endorsement or other evidence of
transfer as is acceptable to the Paying Agent/Registrar; 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 exchange any Bond called for
redemption where such redemption is scheduled to occur within 45
calendar days of the transfer or exchange date; provided, however,
such limitation shall not be applicable to an exchange by the
registered owner of the uncalled principal balance of a Bond.
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 receiving payment as herein provided
(except interest shall be paid to the person in whose name this
Bond is registered on the Record Date) 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; 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; and that ad valorem taxes upon all
taxable property in the City have been levied for and pledged to
the payment of the debt service requirements of the Bonds, within
the limit prescribed by law.
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 of the City, and the official seal of the City has
�:,,� been duly impressed or placed in facsimile on this Bond.
VLH-HBBF.026-2
2�
� City Secretary, City of Mayor, City of Grapevine, Texas
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 Bond is fully executed.
OFFICE OF THE COMPTROLLER §
OF PUBLIC ACCOUNTS § REGISTER NO.
OF THE STATE OF TEXAS §
I hereby certify that there is on f ile and of record in my
office a certificate 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 State of Texas
[SEAL]
(c) Form of Certificate of Paying Agent/Registrar.
The following Certificate of Paying Agent/Registrar may be
deleted fro.m the Initial Bond if the Comptroller' s Registration
Certificate appears thereon.
CERTIFICATE OF PAYING AGENT/REGISTR.AR
The records of the Paying Agent/Registrar show that the
Initial Bond of this series of bonds was approved by the Attorney
General of the State of Texas and 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.
BANK ONE, � TEXAS, N.A. , Fort Worth,
��' '° as Paying Agent/Registrar
Dated: BY�
,�.TM,.� Authorized Signatory
VLH-HBBF.026-2 �
21
(d) Form of Assignment.
ASSIGNMENT '
FOR VALUE RECEIVED, the undersigned hereby sells, 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 must correspond with the
Signature Guaranteed By: 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 Securi-
Authorized Signatory ties Dealers.
(e) The Initial Bond shall be in the form set forth in
paragraphs (a) through (d) of this Section, except for the
following alterations:
(i) immediately under the name of the Bond, the headings
"INTEREST RATE" and "MATURITY DATE" shall both be completed
with the words "As shown below" ;
(ii) in the first paragraph of the Initial Bond, the
words "on the Maturity Date specified above" shall be deleted
and the following will be inserted: "on February 15 in each of
the years, in the principal installments and bearing interest
at the per annum rates in accordance with the following
schedule:
Principal Interest
Years Installments Rates "
(Information to be inserted� from schedule
� -° in Section 3 . 02 of this Ordinance)
(iii) in the second paragraph of the Initial Bond,
�,.6 the words "executing the registration certificate appearing
VLH-HBBF.026-2 2 2
_ hereon" shall be deleted and an additional sentence shall be
added to the paragraph as follows: "The initial Paying
Agent/Registrar is Bank One, Texas, N.A. , Fort Worth, Texas. ";
and �
�;, .,
(iv) the Initial Bond shall be numbered T-1.
Section 6. 03 . CUSIP Reqistration.
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 no
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 . Lectal Opinion.
The approving legal opinion of Hutchison Boyle Brooks &
Fisher, A Professional Corporation, Bond Counsel, may be printed on
the reverse side of each Bond over the certification of the City
Secretary of the City, which may be executed in facsimile.
Section 6. 05 . Statement of Insurance.
A statement relating to a municipal bond insurance policy, if
� � any, to be issued for the Bonds may be printed on or attached to
each Bond.
ARTICLE VII
SALE AND DELIVERY OF BONDS, DEPOSIT OF PROCEEDS
Section 7 . 01. Sale of Bonds . Official Statement.
(a) The Bonds are hereby officially sold and awarded to
Dillon, Read & Co. , Inc. , Estrada, Hinojosa & Co. , Inc. and
PaineWebber Incorporated (the "Purchasers") in accordance with the
terms and provisions of that certain Bond Purchase Agreement (the
"Purchase Contract") relating to the Bonds between the City and the
Purchasers and dated the date of the passage of this Ordinance.
The Mayor of the City is hereby authorized and directed to execute
and deliver, and the City Secretary of the City is hereby
authorized and directed to attest, the Purchase Contract. It is
hereby officially found, determined and declared that the terms of
this sale are the most advantageous reasonably obtainable. The
' Bonds shall initially be registered in the name of Dillon, Read &
Co. , Inc. , or its designee.
�,,:,
VLH-HBBF.026-2 '
23
�. (b) The form and substance of the Preliminary Official
Statement, dated August 13 , 1993, and any addenda, supplement or
amendment thereto, and the final Official Statement (the "Official
Statement") presented to and considered at this meeting, are hereby
�h° n in all respects approved and adopted and is hereby deemed final as
of its date within the meaning and for the purposes of paragraph
(b) (1) of Rule 15c2-12 under the Securities Exchange Act of 1934,
as amended. The Mayor and City Secretary of the City are hereby
authorized and directed to execute the same and deliver appropriate
numbers of executed copies thereof to the Purchasers of the Bonds.
The Official Statement as thus approved, executed and delivered,
with such appropriate variations as shall be approved by the Mayor
of the City and the Purchaser of the Bonds, may be used by the
Purchasers in the public offering and sale thereof. The City
Secretary is hereby authorized and directed to include and maintain
a copy of the Official Statement and any addenda, supplement or
amendment thereto thus approved among the permanent records of this
meeting. The use and distribution of the Preliminary Official
Statement, and the preliminary public offering of the Bonds by the
Purchaser is hereby ratified, approved and confirmed.
(c) All officers of the City are authorized to execute such
documents, certificates and receipts as they may deem appropriate
in order to consummate the delivery of the Bonds in accordance with
the Purchase Contract therefor.
(d) The obligation of the Purchaser to accept delivery of the
Bonds is subject to such Purchaser being furnished with the final,
approving opinion of Hutchison Boyle Brooks & Fisher, A
� Professional Corporation, Dallas, Texas, Bond Counsel for the City,
which opinion shall be dated and delivered the Closing Date.
Section 7 . 02 . Control and Delivery of Bonds.
(a) The Mayor of the City is hereby authorized to have
control of the Initial Bonds and all necessary recards and
proceedings pertaining thereto pending investigation, examination
and approval of the Attorney General of the State, registration by
the Comptroller of Public Accounts of the State and registration
with, and initial exchange or transfer by, the Paying
Agent/Registrar.
(b) After registration by the Comptroller of Public Accounts,
. delivery of the Bonds shall be made to the Purchaser under and
subject to the general supervision and direction of the Mayor,
against receipt by the City of all amounts due to the City under
the terms of sale.
Section 7 . 03 . Creation of Funds.
�� - (a) The City hereby establishes the following funds:
��-,,;»
VLH-HBBF.026-2 �
24
> (i) the City of Grapevine, Texas, General
Obligation Refunding and Improvement Bonds, Series 1993 ,
Interest and Sinking Fund; and
� ` (ii) the City of Grapevine, Texas General Obligation
Refunding and Improvement Bonds, Series 1993 , Construction
Fund.
(b) The Interest and Sinking Fund and the Construction Fund
shall be maintained at an official depository of the City, which
must be a member of the Federal Deposit Insurance Corporation.
Section 7. 04 . Deposit of Proceeds.
(a) All amounts received on the Closing Date as accrued
interest on the Bonds from the Bond Date to the Closing Date shall
be deposited to the Interest and Sinking Fund.
(b) The sum of $14, 569, 655.99, shall be deposited to the
Escrow Fund, which sum shall be applied as provided in the Escrow
Agreement.
(c) The sum of $2 , 040, 000, shall be deposited to the credit
of the Construction Fund.
° (d) The sum of $116, 003 . 07 shall be deposited as directed by
the Director of Finance and used to pay the costs and expenses
pertaining to the issuance of the Bonds. To the extent any of such
� sum is not used for such purpose, such excess shall be deposited to
the Interest and Sinking Fund.
(e) The sum of $75,998 .74 shall be paid as an insurance
premium on the Closing Date.
(f) To the extent necessary to accomplish fully the purposes
of this Ordinance, the Director of Finance is authorized to
reallocate the funds directed to be used for the purposes specified
above.
Section 7. 05. Interest and SinkinQ Fund.
(a) The taxes levied under Section 2 . 01 of this Ordinance
shall be deposited to the credit of the Interest and Sinking Fund
at such times and in such amounts as necessary for the timely
payment of the principal 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 the outstanding Bonds, there shall be subtracted the
amount of any Bonds that have been duly called for redemption and
�,,.,�.
VLH-HBBF.026-2
25
for which money has been deposited with the Paying Agent/Registrar
for such redemption.
(c) Money on deposit in or required by this Ordinance to be
� deposited to the Interest and Sinking Fund shall be used solely for
the purpose of paying the interest on and principal of the Bonds
when and as due and payable in accordance with their terms and this
Ordinance.
Section 7 . 06 . Construction Fund.
The Construction Fund shall be used for the purposes of making
the permanent public improvements specified in Section 3 . 01 of this
Ordinance.
Section 7 . 07 . Excess Bond Proceeds.
(a) Upon completion of the public improvements financed with
the Bonds, any amount (exclusive of that amount retained for the
payment of costs of such improvements not then due and payable)
that remains in the Construction Fund shall be transferred to the
credit of the Interest and Sinking Fund segregated in a special
escrow account.
_(b) The money in such special escrow account shall be used
for the redemption of Bonds at the earliest date that the City has
the option to redeem Bonds without penalty or premium.
Section 7 . 08 . Purchase of Securities for Escrow Fund.
The Mayor is authorized to execute subscriptions for the
purchase of such United States Treasury Securities - State and
Local Government Series, as may be necessary for the Escrow Fund.
In addition to or in lieu of such securities, the City may use
proceeds of the sale of the Bonds to purchase for investment in the
Escrow Fund such obligations of the United States of America, or
any of its agencies, or such obligations fully guaranteed by the
United States of America, that will be appropriate open market
investments for the Escrow Fund.
Section 7 . 09 . Approval of Escrow Agreement.
The Escrow Agreement in substantially the form presented at
the meeting at which this Ordinance is adopted, and its execution
and delivery by the Mayor of the City, are hereby authorized and
approved. The signature of the Mayor shall be attested by the City
Secretary of the City.
Section 7 . 10. Redemption of Refunded Bonds.
�,.,:�
(a) The Refunded Bonds defined in the preambles hereof are
hereby called for redemption prior to their maturity on the
� ,j respective dates set forth in the preambles hereof at a redemption
VLH•HBSF.026-2 •
26
. price equal to the principal amount thereof plus interest accrued
to the date of redemption.
(b) The City Secretary is hereby directed to notify the
g � respective paying agents for the Refunded Bonds of such redemption
in accordance with the respective ordinances authorizing the
issuance of the Refunded Bonds. The respective paying agents for
the Refunded Bonds are hereby authorized and directed to give
notice of such redemption to the owners thereof pursuant to such
ordinances authorizing the issuance thereof.
ARTICLE VIII
INVESTMENTS
Section 8 . 01. Investments.
(a) Money in each fund created by this Ordinance, at the
option of the City, may be invested in such securities or
obligations as permitted under applicable law; provided that money
in the Escrow Fund shall be invested and applied only in accordance
with the provisions of the Escrow Agreement.
.(b} Any securities or obligations in which money from the
Interest and Sinking Fund and the Construction Fund 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.
Section 8 . 02 . Investment Income.
(a) Interest and income derived from investment of the
Interest and Sinking Fund shall be credited to such 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
PARTICUI,AR REPRESENTATIONS AND COVENANTS .
Section 9 . 01. Pavment of the Bonds.
On or before each Interest Payment Date and each Maturity 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
VLH-HBBF.026-2
2�
s° will accrue or mature on the applicable Interest Payment Date,
Maturity Date or date of prior redemption.
�:: .
Section 9 . 02 . Other Representations and Covenants. �
(a) The City will faithfully perfortn 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.
, (b) The City is duly authorized under the laws of the State
of Texas to issue the Bonds; all action 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 proceeds of the Bonds
are needed at this time to finance the costs of the capital
improvements for which the Bonds were issued (as specified in
Secti-on 3 . 01 of this Ordinance) , to refund the Refunded Bonds and
� to pay the costs of issuance associated with the Bonds; that, based
on current facts, estimates and circumstances it is reasonably
expected that final disbursement of the proceeds of the Bonds will
�_ _, occur within three years after the Closing Date, that substantially
binding obligations to commence the improvements to be financed
with a portion of the proceeds of the Bonds 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 148 of the
Code; and that, except for the Interest and Sinking Fund to the
Construction 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 circumstances known on the Closing Date, would
result in constituting the Bonds "arbitrage bonds, " within the
meaning of such Section 148 of the Code or "federally guaranteed"
within the meaning of Section 149 (d) . �he City will not take any
deliberate action after the Closing Date that would cause the Bonds
� � to be treated as arbitrage bonds. The City will otherwise comply
with all the requirements of Sections 148 and 149 (d) of the Code.
�;:-,z
VLH-HBBF.026-2 �
28
° (e) Proper officers of the City charged with the
responsibility of issuing the Bonds are hereby directed to make,
execute and deliver certifications as to facts, estimates and
circumstances in existence as of the Closing Date and stating
� R whether there are any facts, estimates or circumstances that would
materially change the City' s current expectations.
(f) The City hereby represents that all moneys which were
sales proceeds of the Refunded Bonds and were initially deposited
into the re`spective construction funds created by the ordinances
authorizing the issuance of the Refunded Bonds, plus all interest
earnings thereon, have been spent prior to the Closing Date.
(g) The City will not take any action or fail to take any
action which would result in the Bonds being treated as "private
activity bonds, " within the meaning of Section 141 (a) of the Code.
(h) The City will comply with the provisions of Section
148 (f) of the Code, and the regulations promulgated thereunder,
relating to paying certain excess earnings of investments of
proceeds of the Bonds to the United States of America, including
any applicable rebate payments, rebate penalties and yield
reduction payments.
-(i) 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.
�,;
ARTICLE X
DEFAULT AND REMEDIES
Section 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:
(i) the failure to make payment of the principal of or
interest on any of the Bonds when the same becomes due and
payable; or
(ii) default in the performance or observance of any
other covenant, agreement or obligation of the City, which
default 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 any
�� _� Owner or an authorized representative thereof, including but not
VLH-HBBF.026-2
29
° 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 court of competent
jurisdiction, for any relief permitted by law, including the
specific performance of any covenant 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.
�M , .
ARTICLE XI
DISCHARGE
Section 11. 01. Discharge by Payment.
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 prior 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 accrued 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 any
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 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.
VLH-HBBF.O?b-2 '
30
Section 11. 02 . Discharqe bv Deposit.
(a) The City may discharge its obligation to pay the
�, � principal of, premium, if any, and interest on all or any portion
of the Bonds and its obligation to pay 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, in
accordance with 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 such 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 with respect to the Bonds
being provided for, including the compensation due or to
become due the Paying Agent/Registrar; 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 any of the Bonds to become subject to federal
income taxation.
� (b) Subject to subsection (c) of this Section, upon
compliance with subsection (a) of this Section, the Bonds the
payment for which provision is thus made 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 as
to such Bonds and shall execute and deliver to the City such
releases or other instruments as shall be requisite to release the
lien hereof.
(c) Before the discharge and release of any portion 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 of the
� , appropriate Bonds would be entitled by way of principal,
premium, if any, and interest to the date of such maturity or
prior redemption;
�.;.�
VI�i-HBBF.026-2
31
(iii) the investment of such moneys by the Paying
Agent/Registrar in direct obligations of the United States of
America, including obligations, the principal of and interest
� � on which are unconditionally guaranteed by the United States
of America, and which may be in book entry form, maturing
and/or bearing interest payable at such times and in such
amaunts as will be sufficient to provide for the scheduled
pay'ment and/or redemption of such Bonds in securities or
obligations maturing in sufficient time, in the judgment of
the Paying Agent/Registrar, to make available the moneys
reguired for such purposes;
(iv) the sending of written notice by registered or
certified United States mail to the Owner of each appropriate
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 appropriate Bonds, of any moneys, interest
earnings, profits or capital gains over and above the amounts
necessary for such purposes.
ARTICLE XII
MUNICIPAL BOND GUARANTY INSUR.ANCE
Section 12 . 01. Application of this Article.
The provisions of this Article XII shall be applicable so long
as the municipal bond guaranty insurance policy issued by Financial
Guaranty Insurance Company (the "Insurer") f or the Bonds is in full
force and the Insurer is not in default thereunder.
Section 12 . 02 . Information to be Provided to Insurer.
(a) The City shall provide the Insurer with the following:
(i) The City' s budget for each year and annual
audited financial statements, within 120 days after the end of
the City' s fiscal year;
(ii) Official Statement, if any, prepared in
conneciton with the issuance of additional debt by� the City;
-(iii) Notice of the redemption, other than mandatory
sinking fund redemption, of any of; the Bonds; and
(iv) Such additional information as the Insurer may
reasonably request from time to time.
vt.x-xBaF.oz6-2
32
� (b) The Mayor or the Director of Finance may execute a
certificate or letter to the Insurer with regard to the City's
agreement herein to provide the information in subsection (a) .
ARTICLE XIII
EMERGENCY
Section 13 . 01. DeclarinQ an Emergency.
That the public importance of this Ordinance and the fact that
it is in the best interest of the City to provide (i) for the
construction of the permanent public improvements herein
contemplated at the earliest possible date and (ii) for refunding
of the Refunded Bonds at the earliest possible date and thereby
reduce the debt service requirements of the City' s indebtedness
constitutes an emergency and creates a necessit� for the immediate
preservation of the public peace, property, health and safety of
the citizens of the City, requiring that this Ordinance be passed
and take effect from and after its passage and approval in
accordance with the Charter of the City.
�,-
�,,_-„
+�,,,.;«
VI.H-HBBF.026-2
33
FINALLY PASSED, APPROVED AND EFFECTIVE this 7th day of
September, 1993 .
�, __—
ATTEST• Mayor, City of Grapevine, Texas
ai
Ci Secre�ary, y of
Grapevine, Texas
[SEAL]
APPROVED AS TO FORM:
City Attorney, City of
Grapevine, Texas
� p
�,.,.m
�,�„ ..
�; r�
VLH-HBBF.026-2
34