HomeMy WebLinkAboutORD 1992-003 ORDINANCE NO. 92-03
�.;
BOND ORDINANCE
$8,549 , 939 . 80
� CITY OF GRAPEVINE, TEXAS
� GENERAL OBLIGATION REFUNDING BONDS, SERIES 1992
�`"��' Dated: January 15, 19 9 2
Adopted: January 21, 1992
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TABLE OF CONTENTS
Page
Recitals 1
ARTICLE I
Definitions and Other Preliminary Matters
Section 1 . 01. Definitions 2
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 . 01 . Tax Levy 4
Section 2 . 02 . Interest and Sinking Fund 5
ARTICLE III
Authorization; General Terms and Provisions
Regarding the Bonds
Section 3 . 01. Authorization 5
Section 3 . 02 . Date, Denomination, Maturities
and Interest 6
Section 3 . 03 . Medium, Method and Place of Payment 7
�"`" Section 3 . 04 . Execution and Registration of Bonds 9
Section 3 . 05 . Ownership 10
Section 3 . 06 . Registration, Transfer and Exchange 10
Section 3 . 07 . Cancellation 11
Section 3 . 08 . Temporary Bonds 11
Section 3 . 09 . Replacement Bonds 12
Section 3 . 10 . Book-Entry Only System 13
Section 3 . 11. Successor Securities Depository; 14
Transfer of Book-Entry Only System
Section 3 . 12 . Payments to Cede & Co. 15
ARTICLE IV
Redemption of Bonds Before Maturity
Section 4 . 01 . Limitation on Redemption 15
Section 4 . 02 . Optional Redemption 15
Section 4 . 03 . Partial Redemption 15
Section 4 . 04 . Notice of Redemption to Owners 16
Section 4 . 05 . Payment Upon Redemption 16
Section 4 . 06 . Effect of Redemption 17
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ARTICLE V
Paying Agent�Registrar
Section 5 . 01. Appointment of Initial Paying
_ Agent/Registrar 17
Section 5 . 02 . Qualifications 17
Section 5 . 03 . Maintaining Paying Agent/Registrar 18
Section 5 . 04 . Termination 18
Section 5 . 05 . Notice of Change to Owners 18
Section 5 . 06 . Agreement to Perform Duties and
Functions 18
Section 5 . 07 . Delivery of Records to Successor 18
ARTICLE VI
Form of the Bonds
Section 6 . 01. Form Generally 18
Section 6 . 02 . Form of the Current Interest Bonds 19
Section 6 . 03 . Form of the Capital Appreciation Bonds 25
Section 6 . 04 . CUSIP Registration 31
Section 6 . 05 . Legal Opinion 31
Section 6 . 06 . Statement of Insurance 31
Section 6 . 07 . Table of Accreted Values 31
ARTICLE VII
�, ,.„ Sale and Delivery of Bonds; Deposit of Proceeds
Section 7 . 01 . Sale of Bonds, Official Statement 31
Section 7 . 02 . Control and Delivery of Bonds 32
""�' Section 7 . 03 . Deposit of Proceeds 33
Section 7 . 04 . Purchase of 5ecurities for Escrow Fund 33
Section 7 . 05 . Approval of Escrow Agreement 33
Section 7 . 06 . Redemption of Refunded Bonds 33
ARTICLE VIII
Investments
Section 8 . 01. Investments 34
Section 8 . 02 . Investment Income 34
ARTICLE IX
Particular Representations and Covenants
Section 9 . 01 . Payment of the Bonds 34
Section 9 . 02 . Other Representations and Covenants 35
ARTICLE X
Default and Remedies
Section 10 . 01 . Events of Default 36
�� Section 10 . 02 . Remedies for Default 36
Section 10 . 03 . Remedies Not Exclusive 37
(ii)
ARTICLE XI
Discharge
Section 11. 01 . Discharge by Payment 37
- Section 11 . 02 . Discharge by Deposit 38
ARTICLE XII
Emergency
Section 12 . 01 . Declaring an Emergency 39
EXECUTION 40
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(iii)
�y AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
CITY OF GRAPEVINE, TEXAS, GENERAL OBLIGATION
REFUNDING BONDS, SERIES 1992, IN THE
�< AGGREGATE PRINCIPAL AMOUNT OF $8,549 , 939 . 80;
LEVYING A TAX IN PAYMENT THEREOF; ENACTING
OTHER PROVISIONS RELATING THERETO; AND
DECLARING AN EMERGENCY
WHEREAS, 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
Refunding and Improvement Bonds, Series
1985, dated September 1, 1985, maturing in
the years 2000 through 2005, both inclusive,
outstanding in the principal amount of
$5, 630,000, to be redeemed on February l,
1995 (the "Series 1985 Bonds " ) ; and
City of Grapevine, Texas General Obligation
„, . Bonds, Series 1986 , dated July 1, 1986,
maturing in the years 1997 through 2006,
both inclusive, outstanding in the principal
amount of $2,920,000, to be redeemed on
"°�'"' February 1, 1996 (the "Series 1986 Bonds " ) ;
(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
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:
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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 Bonds, Series
1992 , " in the aggregate principal amount authorized in Section
3 . 01 hereof.
"Capital Appreciation Bonds " means the Bonds specifically
described in Section 3 . 02 (e) hereof, with respect to which
interest is compounded semiannually and is payable only at
maturity, as provided in Section 3 . 02 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 .
"Current Interest Bonds " means the Bonds described in
Section 3 . 02 (b) hereof, with respect to which interest is
payable semiannually on a current basis, as provided in Section
3 . 02 hereof.
"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 .
"Escrow Agent" means Team Bank, Fort Worth, Texas .
"Escrow Agreement" means the escrow agreement, dated as
� � of January 15, 1992, by and between the City and the Escrow
Agent.
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"Event of Default" means any event of default as defined
' in Section 10 . 01 of this Ordinance.
"Initial Bonds" means the Initial Current Interest Bond
� and the Initial Capital Appreciation Bond authorized by Section
3 . 04 of this Ordinance.
"Interest and Sinking Fund" means the interest and
sinking fund established by Section 2 . 02 of this Ordinance.
"Interest Payment Date" means the date or dates on which
interest on the Current Interest Bonds is scheduled to be paid
until their respective dates of maturity or prior redemption,
such dates being February 1 and August l, commencing August l,
1992 .
"Maturity Amount" means the amount payable on the
respective Maturity Dates of the Capital Appreciation Bonds,
which amount represents the original principal amount of the
Capital Appreciation Bonds, plus the initial premium, if any,
paid therefor and interest accrued and compounded thereon as
set forth in Section 3 . 02 hereof.
"Maturity Date" means the date specified in Section 3 . 02
hereof on which the principal of the Current Interest Bonds and
, the Maturity Amount of the Capital Appreciation 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 Team Bank, Fort
Worth, Texas, or any successor thereto as provided in this
Ordinance.
"Record Date" means the fifteenth calendar 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.
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Section 1. 02 . Findinas .
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 Headinas .
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 the plural number and vice versa.
k (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 Levv.
(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.
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(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
�x- : 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.
Section 2 . 02 . Interest and Sinking Fund.
� (a) The City hereby establishes a special fund or
account, to be designated the "City of Grapevine, Texas,
General Obligation Refunding Bonds, Series 1992, Interest and
� ^ Sinking Fund, " said fund to be maintained at an official
depository bank of the City separate and apart from all other
funds and accounts of the City.
(b) 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.
ARTICLE III
AUTHORIZATION; GENERAL TERMS AND PROVISIONS
REGARDING THE BONDS
Section 3 . 01 . Authorization.
The City' s bonds to be designated "City of Grapevine,
Texas, General Obligation Refunding Bonds, Series 1992, " are
hereby authorized to be issued and delivered in accordance with
�' � the Constitution and laws of the State of Texas, including
specifically Article 717k, V.A.T.C.S. , as amended, and Section
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9 . 26 of the Charter of the City. The Bonds shall be issued in
the aggregate original principal amount of $8,549, 939 . 80, for
the purpose of providing funds to refund the Refunded Bonds and
for payment of the costs of issuing the Bonds .
� Section 3 . 02 . Date, Denomination. Maturities and
Interest.
(a) The Current Interest Bonds shall be dated January
15, 1992, 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
Initial Current Interest Bond, which shall be numbered T-1 .
(b) The Current Interest Bonds shall mature on
February 1 in the years and in the principal amounts and shall
bear interest as set forth in the following schedule:
Principal Interest
Years Installments Rates
1993 $ 215, 000 3 . 80$
1994 230, 000 4 .20$
1995 235, 000 4 . 50�
1996 250,000 4 . 75�
�, ., 1997 460, 000 5 . 00�
1998 485, 000 5 . 20�
2001 1, 360,000 5 . 70�
2002 1,435,000 5 . 80�
"�``°� 2003 1, 180, 000 5 . 95�
2004 1,250,000 6 . 00�
2005 980,000 6 . 10�
2006 330,000 6 . 15�
(c) Interest shall accrue and be paid on each Current
Interest 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 August 1, 1992, and on each February 1 and August 1
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.
(d) The Capital Appreciation Bonds shall be dated
January 15, 1992, shall be in fully registered form, without
coupons, in the Maturity Amounts of $5, 000 or any integral
multiple thereof and shall be numbered separately from CR-1
� ° upward, except the Initial Capital Appreciation Bond, which
shall be numbered TCR-1.
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(e) The Capital Appreciation Bonds shall be issued in
the original principal amounts, and shall accrue interest from
� the Closing Date at the respective interest rates compounded
semiannually on February 1 and August 1 of each year,
commencing August 1, 1992, until the respective Maturity Dates
therefor in accordance with the following schedule:
Original Stated
Principal Interest Maturity
Year Amount Rate Amount
1999 $42,787 . 80 38 . 620� $ 495, 000
2000 $97, 152 . 00 38 . 620� $1, 600, 000
The term "Accreted Value, " as used in this Ordinance with
respect to the Capital Appreciation Bonds, shall mean the
original principal amount of a Capital Appreciation Bond plus
the initial premium, if any, paid therefor, plus all interest
accrued and compounded to the particular date of calculation as
set forth in Schedule I hereto. For any day other than a
February 1 or August 1, the Accreted Value of a Capital
M, Appreciation Bond shall be determined by a straight-line
interpolation between the values for the applicable semiannual
compounding dates, based on 30-day months .
Section 3 . 03 . Medium, Method and Place of Payment.
(a) The principal of and interest on the Current
Interest Bonds and the Maturity Amount of the Capital
Appreciation Bonds shall be paid in lawful money of the United
States of America.
(b) Interest on the Current Interest 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 Current Interest 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
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Owner; provided, however, the Owner shall bear all risk and
° expense of such other banking arrangement.
(d) The principal of each Current Interest Bond and
$:, , the Maturity Amount of the Capital Appreciation Bonds 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 Current Interest Bonds or the Maturity Amount
of the Capital Appreciation 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
� ,Q 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, 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
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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 Registration 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 required that the same
officer or authorized signatory of the Paying Agent/Registrar
sign the Certificate of 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 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, two (2) initial Bonds, being
(i) a single Initial Current Interest Bond representing the
entire principal amount of the Current Interest Bonds, payable
in stated installments to the Purchaser or its designee, and
(ii) a single Initial ,Capital Appreciation Bond representing
�� the aggregate Maturity Amount of the Capital Appreciation
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Bonds, representing the entire principal amount of all Bonds,
payable in stated installments to the initial purchaser, or its
designee, executed with the manual or facsimile signature of
the Mayor and City 5ecretary 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 Bonds, the Paying Agent/Registrar shall cancel the
Initial Bonds and deliver one Bond for each maturity, in the
aggregate principal or Maturity Amount 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 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 or Maturity
Amount 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 Current
Interest Bonds interest is to be paid to the person in whose
name the Current Interest 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.
�°"m (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 . Registration, Transfer and ExchanQe.
(a) So long as any Bonds remain outstanding, the City
shall cause the Paying Aqent/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 transfer of any Bond shall be
effective until entered in the Register.
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(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 equal to the unpaid principal
amount of Current Interest Bonds or Maturity Amount of Capital
Appreciation 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 . Temporary 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,
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lithographed, typewritten, mimeographed or otherwise produced,
� in any denomination, substantially of the tenor of the
definitive Bonds in lieu of which they are delivered, without
coupons, and with such appropriate insertions, omissions,
� - substitutions and other variations as the officers of the City
executing such temporary Bonds may determine, as evidenced by
their signing of such temporary Bonds .
(b) Until exchanged for Bonds in definitive form, such
Bonds in temporary form shall be entitled to the benefit and
security of this Ordinance.
(c) The City, without unreasonable delay, shall
prepare, execute and deliver to the Paying Agent/Registrar 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 or Maturity Amount, as applicable,
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 or Maturity
Amount, as applicable, 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
or Maturity Amount, as applicable, 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;
� -12-
1388B
(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 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 System.
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
���
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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 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 effective 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 shall refer to such new nominee of DTC.
Section 3 . 11. Successor Securities De�ository; Transfer
Outside Book-Entry Only System.
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
�
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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 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 with respect to such Bonds, shall be made and
given, respectively, in the manner provided in the
representation letter of the City to DTC.
ARTICLE IV
REDEMPTION OF BONDS BEFORE MATURITY
Section 4 . 01 . Limitation on Redemption.
(a) The Current Interest Bonds shall be subject to
redemption before scheduled maturity only as provided in this
Article IV.
(b) The Capital Appreciation Bonds shall not be
� ;�
subject to redemption prior to the Maturity Dates thereof .
Section 4 . 02 . Optional Redemption.
(a) The City reserves the option to redeem the Current
Interest Bonds maturing on and after February l, 2002 , in whole
or any part, before their respective scheduled maturity dates,
on February 1, 2001, 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 the Paying Agent/Registrar, shall notify the Paying
Agent�Registrar of such redemption date and of the principal
amount of Current Interest Bonds to be redeemed.
Section 4 . 03 . Partial Redemption.
(a) If less than all of the Current Interest 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 Current
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Interest Bonds, or portions thereof, within such maturity or
` maturities and in such principal amounts for redemption.
(b) A portion of a single Current Interest Bond of a
� denomination greater than $5, 000 may be redeemed, but only in a
principal amount equal to $5, 000 or any integral multiple
thereof. If such a Current Interest Bond is to be partially
redeemed, the Paying Agent/Registrar shall treat each $5, 000
portion of the Current Interest Bond as though it were a single
Current Interest Bond for purposes of selection for redemption.
(c) Upon surrender of any Current Interest Bond for
redemption in part, the Paying Agent/Registrar, in accordance
with Section 3 . 06 of this Ordinance, shall authenticate and
deliver an exchange Current Interest Bond or Bonds in an
aggregate principal amount equal to the unredeemed portion of
the Current Interest 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.
Section 4 . 04 . Notice of Redemption to Owners .
rr (a) The Paying Agent/Registrar shall give notice of
any redemption of Current Interest 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 Current Interest 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 Current Interest Bonds
are to be surrendered for payment, and, if less than all the
Current Interest Bonds outstanding are to be redeemed, an
identification of the Current Interest 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 Current
Interest Bonds to be redeemed on such date by setting aside and
holding in trust such amounts as are received by the Paying
�„��
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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 Current Interest Bonds
being redeemed.
(b) Upon presentation and surrender of any Current
Interest 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 Current Interest 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 Current
Interest Bond or portion thereof called for redemption shall
� " continue to bear interest at the rate stated on the Current
Interest 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 Paying Agent/
Registrar.
Team Bank, Fort Worth, Texas, is hereby appointed as the
initial Paying Agent�Registrar for the Bonds .
Section 5 . 02 . Qualifications .
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 .
� -17-
1388B
Section 5 . 03 . Maintainin� Paying AgentfRegistrar.
(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 Change 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.
�
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 will perform the duties and
functions of Paying Agent/Registrar prescribed thereby.
Section 5 . 07 . Delivery 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
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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.
� ..
Section 6 . 02 . Form of the Current Interest Bonds .
The form of the Current Interest 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 Current Interest Bonds, shall be substantially
as follows :
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� (a) Form of Current Interest Bond.
REGISTERED REGISTERED
�u. . No. $
United States of America
State of Texas
COUNTIES OF TARRANT, DALLAS AND DENTON
CITY OF GRAPEVINE, TEXAS
GENERAL OBLIGATION REFUNDING BOND
SERIES 1992
CURRENT INTEREST BOND
INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP NO. :
January 15, 1992
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,
�.,m
the sum of
DOLLARS
unless this Bond shall have been sooner called for redemption
and the payment of the principal hereof shall have been paid or
provided for, and to pay interest on such principal amount from
the later of the Bond Date specified above or the most recent
interest payment date to which interest has been paid or
provided for until payment of such principal amount has been
paid or provided for, at the per annum rate of interest
specified above, computed on the basis of a 360-day year of
twelve 30-day months, such interest to be paid semiannually on
February 1 and August 1 of each year, commencing August 1, 1992 .
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 the address shown on
� -20-
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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, 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.
If the date for the payment of the principal of or
f 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 $8,549 , 939 . 80 (herein referred to as the "Bonds" ) ,
issued pursuant to a certain ordinance of the City (the
"Ordinance" ) for the purpose of providing funds with which to
refund certain of the City' s outstanding general obligation
bonds and to pay the costs of issuing the Bonds . The Bonds are
issued in part (i) as "Current Interest Bonds, " which total
$8,410, 000 in principal amount and pay accrued interest at
stated intervals to the registered owners thereof, and (ii) as
"Capital Appreciation Bonds, " which total $139,939 . 80 in
original principal amount and pay interest only at stated
maturity. This Bond is a Current Interest Bond payable as to
� principal and interest as herein provided.
� -21-
13886
The City has reserved the option to redeem the Current
Interest Bonds maturing on or after February 1, 2002, in whole
or in part before their respective scheduled maturity dates, on
February 1, 2001, or on any date thereafter, at a price equal
to the princip�l amount of the Current Interest Bonds so called
for redemption plus accrued interest to the date fixed for
redemption. If less than all of the Current Interest 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 Current
Interest 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 Current Interest Bonds to be redeemed in
whole or in part. Notice having been so given, the Current
Interest 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 Current Interest Bonds or portions thereof so called
for redemption shall not have been surrendered for payment,
interest on such Current Interest Bonds or portions thereof
shall cease to accrue.
The Capital Appreciation Bonds are not subject to
redemption prior to their stated maturity date.
� - 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
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13886
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.
> 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 Current Interest Bond is fully executed.
OFFICE OF THE COMPTROLLER §
OF PUBLIC ACCOUNTS § REGISTER N0.
OF THE STATE OF TEXAS §
I hereby certify that there is an file 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.
�;:�
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13886
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 from the Initial Current Interest Bond if the
Comptroller ' s Registration Certificate appears thereon.
CERTIFICATE OF PAYING AGENT�REGISTRAR
The records of the Paying Agent/Registrar show that the
Initial Current Interest 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.
TEAM BANK, Fort Worth, as Paying
� Agent/Registrar
� Dated: By:
Authorized Signatory
(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 .
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1388B
' Dated:
NOTICE: The signature on this
Assignment must correspond with
° Signature Guaranteed By: the name of the registered
owner as it appears on the face
of the within Bond in every
particular and must be guar-
anteed by an officer of a
federal or state bank or a
member of the National Associa-
tion of Securities Dealers .
Authorized Signatory
(e) The Initial Current Interest 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
Current Interest Bond, the words "on the Maturity Date
specified above" shall be deleted and the following will
' be inserted: "on February 1 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
Current Interest Bond, the words "executing the
registration certificate appearing hereon shall be
deleted and an additional sentence shall be added to the
paragraph as follows : "The initial Paying
Agent/Registrar is Team Bank, Fort Worth, Texas . " ; and
(iv) the Initial Current Interest Bond shall be
numbered T-1 .
Section 6 . 03 . Form of the Capital Appreciation Bonds .
The form of the Capital Appreciation Bond, including the
form of the Registration Certificate of the Comptroller of
�'� Public Accounts of the State of Texas, the form of Certificate
,�;� -25-
1388B
of the Paying Agent/ Registrar and the form of Assignment
s appearing on the Capital Appreciation Bonds, shall be
substantially as follows :
� (a) Form of Capital Appreciation Bond.
REGISTERED REGISTERED
MATURITY AMOUNT
No. CR- $
United States of America
State of Texas
COUNTIES OF TARRANT, DALLAS AND DENTON
CITY OF GRAPEVINE, TEXAS
GENERAL OBLIGATION REFUNDING BOND
SERIES 1992
CAPITAL APPRECIATION BOND
INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP NO. :
January 15, 1992
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 Maturity Amount of
DOLLARS
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.
The Maturity Amount represents the total of the original
principal amount hereof plus any premium paid therefor plus
interest accrued thereon compounded semiannually on each
February 1 and August 1 commencing August 1, 1992 . The term
"Accreted Value, " as used herein, means the original principal
amount of this Bond plus the initial premium, if any, paid
herefor with interest thereon compounded semiannually to the
�'� next February 1 or August 1 next preceding the date of such
�, -26-
13886
calculation (or the date of calculation, if such calculation is
made on February 1 or August 1) at the compounding rate stated
therefor in the Table of Accreted Value printed on or affixed
to this Bond. For any date other than a February 1 or August
` 1, the Accreted Value of this Bond shall be determined by a
straight-line interpolation between the values for the
applicable semiannual compounding dates, based on 30-day months .
If the date for the payment of the Maturity Amount of
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 $8,549 ,939 . 80 (herein referred to as the "Bonds" ) ,
issued pursuant to a certain ordinance of the City (the
"Ordinance" ) for the purpose of providing funds with which to
refund certain of the City' s outstanding general obligation
bonds and to pay the costs of issuing the Bonds . The Bonds are
issued in part (i) as "Current Interest Bonds, " which total
$8,410, 000 in principal amount and pay accrued interest at
stated intervals to the registered owners thereof, and (ii) as
"Capital Appreciation Bonds, " which total $139, 939 . 80 in
original principal amount and pay interest only at stated
maturity. This Bond is a Capital Appreciation Bond payable as
to principal and interest as herein provided.
The Capital Appreciation Bonds are not subject to
redemption prior to their Maturity.
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
Maturity Amount will be issued to the designated transferee or
transferees .
�"�" The City, the Paying Agent/Registrar, and any other
person may treat the person in whose name this Bond is
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1388B
registered as the owner hereof for the purpose of receiving
� payment as herein provided 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.
£ 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 Capital Appreciation Bond is fully executed.
OFFICE OF THE COMPTROLLER �
OF PUBLIC ACCOUNTS � REGISTER N0.
OF THE STATE OF TEXAS §
I hereby certify that there is on file 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
�;, .
� -28-
1388B
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,
f=
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 from the Initial Capital Appreciation Bond if the
Comptroller' s Registration Certificate appears thereon.
CERTIFICATE OF PAYING AGENT�REGISTRAR
The records of the Paying Agent/Registrar show that the
Initial Capital Appreciation 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
M within-mentioned Ordinance.
TEAM BANK, FORT WORTH, Texas,
��
as Paying Agent/Registrar
Dated: By:
Authorized Signatory
(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
� -29-
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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
Signature Guaranteed By: the name of the registered
owner as it appears on the face
of the within Bond in every
particular and must be guar-
anteed by an officer of a
federal or state bank or a
member of the National Associa-
tion of Securities Dealers .
Authorized Signatory
(e) The Initial Capital Appreciation 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 "STATED YIELD" and "MATURITY DATE" shall both be
completed with the words "As shown below" ;
(ii) in the first paragraph of the Capital
� `' Appreciation Bond, the words "on the Maturity Date
specified above the Maturity Amount of this Bond" shall
be deleted and the following will be inserted: "on
February 1 in each of the years, in the installments of
Maturity Amounts set forth in the following schedule:
Original
Principal Interest Maturity
Year Amounts Rates Amounts "
( Information to be inserted from
schedule in Section 3 . 02 (e) of this Ordinance)
(iii) in the first paragraph of the Capital
Appreciation Bond, the words "executing the registration
certificate appearing hereon" shall be deleted and an
additional sentence shall be added to the paragraph as
follows: "The initial Paying Agent/Registrar is Team
Bank, Fort Worth, Texas . " ; and
(iv) the Initial Capital Appreciation Bond shall
�* � be numbered TCR-1 .
,,,�, -3 0-
1388B
Section 6 . 04 . CUSIP Registration.
The City may secure identification numbers through the
CUSIP Service Bureau Division of Standard & Poor' s Corporation,
New York, New York, and may authorize the printing of such
numbers on the face of the Bonds . It is expressly provided,
however, that the presence or absence of CUSIP numbers on the
Bonds shall be of 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 . 05 . Legal 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 . 06 . 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.
Section 6 . 07 . Table of Accreted Values .
The Accreted Values of the Capital Appreciation Bonds
contained on Schedule I to this Ordinance shall be printed on
or affixed to the Capital Appreciation Bonds .
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 PaineWebber Incorporated (the "Purchaser" ) 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 Purchaser 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 PaineWebber
Incorporated, or its designee.
�;ti,,� -31-
13886
(b) The form and substance of the Preliminary Official
' Statement, dated January 7 , 1992, and any addenda, supplement
or amendment thereto, and the final Official Statement (the
"Official Statement" ) presented to and considered at this
�,. meeting, are hereby 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 Purchaser 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
Purchaser 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 records 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.
�;>„
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Section 7 . 03 . Deposit of Proceeds .
(a) All amounts received on the Closing Date as
accrued interest on the Current Interest Bonds from the Bond
� Date to the Closing Date shall be deposited to the Interest and
Sinking Fund.
(b) The sum of $9 ,473,350 . 00, shall be deposited to
the Escrow Fund, which sum shall be applied as provided in the
Escrow Agreement.
(c) The sum of $107,579 . 72 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.
(d) The sum of $66 , 884 . 74 shall be paid as an
insurance premium on the Closing Date.
(e) 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.
x. Section 7 . 04 . 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.
Officials of the City are hereby authorized and directed to
transfer to the Escrow Fund the sum of $ -0- from the
interest and sinking fund for the Refunded Bonds, such amount
to be applied to the payment of the principal of and interest
on the Refunded Bonds pursuant to the Escrow Agreement.
Section 7 . 05 . 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 . 06 . Redemption of Refunded Bonds .
(a) The Refunded Bonds defined in the preambles hereof
� � are hereby called for redemption prior to their maturity on the
respective dates set forth in the preambles hereof at a
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13886
redemption 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 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 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 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.
Interest and income derived from investment of the
Interest and Sinking Fund shall be credited to such Fund.
ARTICLE IX
PARTICULAR REPRESENTATIONS AND COVENANTS
Section 9 . 01. Payment 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 or Maturity
Amount, as applicable, of the Bonds as will accrue or mature on
the applicable Interest Payment Date, Maturity Date or date of
� prior redemption.
�:.,�.
-34-
1388B
Section 9 . 02 . Other Representations and Covenants .
(a) The City will faithfully perform at all times any
and all covenants, undertakings, stipulations, and provisions
� contained in this Ordinance and in each Bond; the City will
promptly pay or cause to be paid the principal of and interest
on or Maturity Amount of, as applicable, 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 refund the Refunded Bonds;
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, 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) .
The 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.
(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 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 Series 1986 Bonds and were initially
deposited into the respective construction funds created by the
�- .
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13886
ordinances authorizing the issuance of the Series 1986 Bonds,
plus all interest earnings thereon, have been spent prior to
the Closing Date.
� q (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.
(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 or Maturity Amount of 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 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
�,,,:.
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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.
� 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, and as to Maturity Amount,
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, or the Maturity Amount,
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, and the
Maturity Amount, 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
�,,:.:
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13886
letter of instructions from the City requesting the same, shall
discharge and release the lien of this Ordinance and execute
and deliver to the City such releases or other instruments as
shall be requisite to release the lien hereof .
Section 11. 02 . Discharge by Deposit.
(a) The City may discharge its obligation to pay the
principal of, premium, if any, and interest on and Maturity
Amount of 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 and Maturity Amount of 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:
�� -38-
13886
(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 and Maturity Amount on the
Maturity Date;
(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 amounts as will be sufficient to
provide for the scheduled payment 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 required
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 and Maturity Amount of the
appropriate Bonds, of any moneys, interest earnings,
profits or capital gains over and above the amounts
necessary for such purposes .
ARTICLE XII
EMERGENCY
Section 12 . 01 . Declaring an Emergency.
That the public importance of this Ordinance and the fact
that it is in the best interest of the City to provide 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 necessity
- for the immediate preservation of the public peace, property,
health and safety of the citizens of the City, requiring that
�.:�
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1388B
this Ordinance be passed and take effect from and after its
passage and approval in accordance with the Charter of the City.
FINALLY PASSED, APPROVED AND EFFECTIVE this 21st day of
January, 1992 .
�. �
r
�--�.\ _/`��—�--�--�
.�J� :�'Gf
ATTEST: Mayor, City of Grapevine, Texas
Secretary, y of
Grapevine, Texas
[SEAL]
APPROVED AS TO FORM:
--�� -�-� -
City Attorney, City f
Grapevine, Texas
�. .
-40-
�<.. ,.
1388B
SCF�DULE I
Sc6edule of Accreted Values of
Premium Cacital Anoreciation Bonds
Per 55.000 ?Naturit� Amount
�
VALUE OF VALUE OF
02/01/99 02101/2000
DATE MATUFiITY MATUR(TY
-------- ------------- -------------
0?l25/92 53,318.60 33,104.10
08/Ot/92 3,a0a.76 3,186.03
02/01/93 3,506.90 3,283.2t
08/01/93 3,612.t t 3,383.34
02/01/94 3,720.47 3,466.54
08/01/94 3,832.08 3,592.87
02J01/95 3,947.05 3,702.46
08/01/95 4,065.46 3,815.38
02/01/96 4,t87.42 3,931.75
08/Ot/9E 4,313.04 4,051.67
02J01/97 4,442.44 4,t75.25
08/Ot/97 4,575.7� 4,302.59
02JOi/98 4,7t2.9R 4,433.82
08/0�/98 4,85�.37 4,569.05
0210t/99 S,OOO.00 4,708.41 �
08/Ot/99 4,852.01
02I01/200G 5,000.00
�•:,,
�:,.�
MTNUTFS AND CERTIFICATION PERTAINING TO
PASSAGE OF AN ORDINANCE
THE STATE OF TEXAS �
COUNTIES OF TARR.ANT, �
fi DALLAS AND DENTON �
CITY OF GR.APEVINE �
On the 21st day of January, 1992 , 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 : '
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 Bonds , Series 1992 , in the
Aggregate Principal Amount of $8 , 549 , 939 . 80 ,
Levying a Tax in Payment Thereof , Er_acting
Other Provisions Relating Thereto, and
Declaring an Emergency
The Ordinance, a full, true and correct copy of which is
dttdChed 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 Counci�, and the Ordinance
was finally passed and adopted by the following vote:
AYES :
NOES :
ABSTENTIONS :
13576/4
,y. .
MINUTES APPROVED 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 �
Fl the official records of the City, all on this the 21st day of
January, 1992 .
'�
�T`=����
�
Nayor, City of Grapevine, Texas �� s�
ATTEST:
City Secretary, City of Granevine,
Texas
[SEAL]
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1367B/5