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38-13 O - Amending 38-12 O, Issuing Water Revenue Bondss A 1� a k �1 THE STATE OF TEXAS COUNTY OF COLLIN TOWN OF PROSPER The Town Commission of the Town of Proaner, Texas, convened in Regular Tleeting on the % day of September, 1U38, with the --wit: following members present, to U. N. Clery Mayor W. H. Field �1 V' A. E. Robison Commissioners C. W. Harner Town Clerk with the following absent: None, constituting a ouorum, at which time the following among other business was transacted, to -wit: Commissioner W. H. Field introduced a proposed ordinance. The ordinance was read in full, Commissioner A. E. Robison made a motion that the rule re- euiring ordinances to be read at more than one meeting be susnended. The motion was seconded by Commissioner W. H. Field. The motion carried by the following vote: AYES: Commissioners W. H. Field and A. E. Robison and iiayor U. N. Clary. NOES: None. Commissioner 1,11. H. Field made a motion that the ordinance be passed finally. The motion was seconded by Commissioner A. E. Robi- son. The motion carried by the following vote: AYES: Commissioners ':V. H. Field anc A. E. Robison and 1?ayor U. N. Clary. NOES: None. [� �I The Mayor announced that the ordinance had been finally passed. The ordinance is as follows: 18, AN ORDIANCE TO AMEi(D AN ORDINANCE AD^PTED B`,' T�1E TO71N C-ITMISSInN OF THE TOWN nF Pr OSP°R, TEXAS, AUGUST 15TH, 1`38, AS THE SA1r�E APPEARS OF RECORD IN BOOK 1, PAGE 101, ET SEC„ OF THE MINUTES OF SAID TO',,N COHMIS?ION SO AS TO AUTHORIZE THE ISSUANCE OF TOWN OF PROSPER, TEXAS, WATER SYSM,1 REVENUE BONDS SERIES 1938, TWELVE THOUSAND (112,000-.00) DOLLARS, BEARING FOUR k%) PER CENT INTEREST, TO SECURE FUNDS FOR PURCFAOING A WATER STORKS FLANT AND ".BAKING REPAIRS, EXTENSIONS AND IMPROVEMENTS THERETO, Iii AND FOR SAID TOWN, PRESCRIBING THE FORM OF BOND, PLEDG- I14G THE REVENUES OF SAID WATER 'WORKS SYSTE;.' TO, THE PAYMENT OF PRINCI- PAL AND INTEREST OF TFE BONDS AFTER PRCVIDIT!G FCR THE EXPENSE OF OP- ERATING SAID SYSTEii, IdAKING CEnTAIIv COVENANTS OF THE SAID TOWN IN REFERENCE TO :HE BOND FUND FRC11 ',WHICH SAID Pr.INCIPAL AND INTEREST ARE TO BE PAID; PROVIDING THAT THE HOLDER OR HOLDERS OF SAID BONDS SHALL NEVER HAVE THE RIGHT TO DEIIAND PAYP'ENT OF SAID OBT:IGATIOVS OUT OF ANY FUNDS RAISED OR TO BE RAISED BY TAXATION, REPEALING ALL ORDI- NANCES IN CONFLICT HEREWITH, AND DECLARI:,G AN & ERGEIM. WHEREAS, the Town Commission has heretofore on the 28th day of July, 1938, adopter a resolution andorder calling an election on the ouestinn of the issuance of Town of Prosner, Texas, 'Water System Rev- enue Bonds, Series 1938, in the aggregate amount of Twelve Thousand (812,000.00) dollars, bearing 4% interest, to secure funds for the nurnose of nurchasing a water works plant and making repairs, exten- sions and imnrovements thereto, in and for said town; and, WHEREAS, said election was held, Pursuant to said resolution and order, on the 13th day of August, 1938; and resulted favorably to the issuance of said revenue bonds; and WHEREAS, the Town Commission has heretofore adopted a resolution, declaring the results of said election and determining the specific authority of the Town to issue said revenue bonds; and WHEREAS, the Town has authorit, generally to mass this ordinance, L authorizing the issuance of revenue bonds for the purpose of obtaining T funds for nurchasing a water works plant and making repairs, extensions and i,,provements thereto, in and for said town, under the provisions of the Constitution and Laws of the State of Texas, including Parti- cularly; Articles 11.11 - 1118, both inclusive, of the 1925 Revised Statutes of Texas, as amended; and WHEREAS, the Town Commission of the Town of Prosoer, Texas, did heretofore on the 15th day of August, 1938, pass an ordinance, to Pro- vide funds for said nurnose, but said ordinance did not by its terms comely strictly with the terms of said order of election, and it is Gnow necessary and nroner to amend the said ordinance so Passed on Aug- ust 15th, 1938, as the sane appears in the Mnutes of said Commission, in Book 1, Page 101, at sea, so that the Town Commission may proceed with the issuance of such revenue bonds; 19 I BE IT ORDAINED BY THE TO' N COMITIISKOIi OF THE M.N OF PROSFER, TEXTS: 1. That the ordinance, which authorizes to be issued "Town of �r Proaner, Texas, Water Systei Revenue Bonds, Series 1938,11 agUregating Twelve Thousand (9)12,000.00) Dollars, heretofore adonted by the Town Commission of said Town August 15th, 1936, as the same annears of re- cord in Book 1, Page 101, et sea., of the I:iInutes of said Town Com- mission, be, and the same is hereby, amended so as hereafter to read as follows: That to provide funds for the nurchase of a water works plant and make repairs, extensions and improvements thereto, nursuant to the Con- stitution and. Statutes of the State of Texas, including narticularly Art- icles 1111 - 1118, both inclusive, of the 1925 Revised Civil Statutes of Texas, as amended; there shall be issued "rn Trn of Prosper, Texas, Water ( v System Revenue Bonds, Series 1938," aggregating Twelve Thousand(tl2,000.00) Dollars, numbered from one (1) to thirty-two (32) both inclusive, of dif- ferent denominations as follows: Bonds numbered one (1.) to ten (10) in- clusive to be each of denomination of One Hundred ($100.00) Dollars and those numbered eleven (11) to thirty-two (32) inclusive to be each of denomination of Five Hundred ($500.00) Dollars. 2. Said bonds shall be dated August let, 1938, and shall bear in- terest at the rate of four (4%) per cent per annum, payable February 1st, 1939, and semi-annually thereafter on the let day of August and the 1st day of February in each year; principal and interest of said bonds shall be sayable in suc'n funds as are, on the resnective dates of payment of the principal of and interest on the bonds, legal tender for debts due the United States of America, upon presentation and surrender of bond or proper coupon at the office of the State Treasurer, at Austin, Texas. 3. Said bonds shall mature, as follows: BOND i;U! 3ERS 1.'ATURITY DATES A;'OUN T EACH BOND 1 and 2 August 1st, 1942 $100.00 3 and 4 August 1st, 1943 $100.00 5, 6 and 7 August let, 1944 $10o.00 6, 9 and 10 Aur.ust 1st, 1945 $100,00 11 August 1st, 1946 $500,00 12 August 1st, 1147 500.00 13 August lot, 1948 500.00 14 August let, 1949 $500.00 15 August let, 1950 $500.00 4 16 August let, 1951 $500.00 17 August 1st, 1952 $500.00 18 August let, 1953 $500.00 19 August let, 1954 '500.00 20 August let, 1955 $500.00 21 August 1st, 1956 $500.00 22 August let, 1957 $5oO.0O 23 August let, 1958 $500.00 24 August let, 1959 4500.00 '20, BOND NUI,IBERS MATURITY DATES AMOUNT EACH BOND 25 and 26 August let, 1960 500.00 27 and 28 August let, 1961 500.00 29 and 30 August lst, 1962 $500.o0 31 and 32 August 1st, 1963 $500.00 4. Each of said bonds shall be signed by the Mayor, counter- signed by the Town Clerk and registered by the Town Treasurer, and the cornorate seal of the Toxin of Prosper, Texas, shall be impressed upon each of them. The facsimile signatures of the Mayor and Town Clerk may be lithogranhed, engraved or printed unoh the counons at- tached to said bonds andshall have the saTne effect as if they had been signed by said officers. 5. The Forrn of said bonds shall be substantially as follows: NO. UNITED STATES OF AMERICA STATE OF TEXAS COU14TY OF COLLIN TOWN OF PROSPER WATER SYSTEi: REVENUE BOND SERIES 1938. The Town of Prosper, in the County of Collin, in the State of Texas, for value received, hereby acknowledges itself indebted to and promises to nay to the bearer, as hereinafter stated, on the day of , 19 , the sum of 16 Dollars 3 ), in such funds as are, on said date, legal tender for debts due the United States of America, with interest thereon from date at the rate of four (4%) ner cent per annum, payable February 1st, 1939, and semi-annually thereafter on Au€;ust 1st, and February let, of each year until the principal sum shall be paid, which inter- est is nayable in such funds as are, on the resnective dates of pay- ment, legal tender for debts due the United States of America, unon the nresentation andsurrender of proper counons as they severally become due; both principal and interest being nayable at the office of the State Treasurer, in City of Austin, Texas. 4 This bond is subject to the condition and every holder hereof by accepting the same agrees with the obligor and every subseouent 21 A holder hereof that (a) the delivery of this bond to any transferee shall vest title in this bond and the interest renresented thereby in such transferee to the same extent for all purposes as would the delivery under like circumstances of any negotiable instrument pay- able to bearer; (b) the obligor andany agent of the obligor may treat the bearer of this bond, as the absolute owner hereof for all purposes and shall not be affected by any notice to the contrary; (c) the principal of and the interest on this bond will be raid, and this bond and each of the coupons anpertaining thereto are transfer- 4 able, free from and without regard to eouities between the obligor and the original or any Intermediate holder hereof or any set -offs or cross -claims; and (d) the surrender to the obligor or any agent of the obligor of this bond and of each of the co,.nons shall be a good discharge to the obligor for the sane. This bond is one of a series of bonds of like tenor and effect except as to denomination and maturity, numbered one (1) to thirty- two (32) both inclusive, in denominations, as follows; Numbered one (1) to ten (10) inclusive One Hundred (010o.o0) Dollars, each; num- bered eleven(11) to thirty-two (32) inclusive Five Hundred ($500.00) Dol'.ars, each; aggregating the sum of Twelve Thousand ($p12,000.00) Dollars, issued by the Town of Prosper, Texas, for the nurnose of securin:7 funds to purchase a water system and to construct repairs, improvements and extensions to such system in and for said Town, in accordance with the Constitution and Laws of the State of Texas, the authority of a vote of the cuallfied electors of said Town voting at an election held on the 13th day of August, 1933, and pursuant to an ordinance passed by the Town Commission, duly re- corded in the Iiinutes of the Town Commission. The date of this bond in conformity with the ordinance above mentioned is August 1st, 1936. 22 This bond and the series of which it is a part, constitute special obligations of the Town of Prosper, Texas, payable from and aecurec by an exclusive first lien on and pledge of the revenues of the Town's water system, after deduction of reasonable operation and maintenance expenses. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. And it is hereby certified that t:,e issuance of this bond., and the series of which it is a part, is duly authorized by law; that all ` acts, conditions and things reouired to exist and to be done precedent to and in the issuance of this bond to render the same lawful and valid, have been oroperly done, have happened and have been perfor!ned in regu- lar and cue time, form and manner reouired by the Constitution and the laws of the State of Texas, and the ordinance hereinabove mentioned, end that this series of revenue bonds does not exceed any constitu- tional or statutory limitations; and that provision has been made for the payment of the principal and interest of this bond and the series of which it is a part by irrevocably pledging the revenues of saidwater systen of said Town of Proaner, Texas. to IN TESTIIAO;�Y WHEREOF, the Town Commission of the Town of Prosper, Texas, has caused the seal of said Town to be hereon im- pressed and this bond to be signed by the ".;ayor of said Town, coun- tersigned by the Town Clerk and registered by the Town Treasurer and has caused the annexed coupons to be signed Icy the facsimile signa- tures of the Mayor and the Town Clerk. Mayor, Town of Prosper, Texas. Countersif-ned: Town Clerk. REGISTERED: Town Treasurer. 23 6. The form of said coupon shall be substantially as follows: NO. $ ON THE 1ST DAY OF 19_ the Torn of Prosper, Texas, will nay to the bearer, from the revenues of the Town's water system, after deduction of reasonable operation and maintenance exnenses, at the office of the State Treasurer, in the City of Austin, Texas, in the sum of DOLLARS in such funds as are on said date, legal tender f^r debts due the United States of Arerica, said sum being six months' interest due that day on "Town of Prosner, Texas, Water System Revenue Bond, Series 193811, bearinF the number hereon sneclfied, dated August 1st, 1938. The holder hereof shall never have the right to de -sand payment of this obligation out of any funds raised or to be raised by taxa- tion, Bond No. Town Clerk. PTayor. 9. Substantially the following shall be printed on the back of each bond: OFFICE OF 00:'PTRCLLER 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 recuired by law, andthat he finds that it has been issued in conformity v,ith the Constitution and laws of the State of Texas, andthat it is a valid and binding special oblis:ation of said. Town of Prosner, Texas, nay - able from the revenue pledged to its payment by and in the ordinance authorizing same, and said bond has this day been registered by me. WITNESS M.Y HAND and seal of office at Austin, Texas, this the to day of , 1938. Comptrill-r of Public Accounts of the State of Texas. 24. � e Y GB. In this ordinance the term "system" shall include and mean the water works system of said Town, together with the completed project and any additions thereto and Smnroveuents and replacements thereof. 9, The Town Commission shall at all times while any of said bonds, or any Interest thereon, are outstanding and unpaid, charge and collect for services rendered by said System rates sufficient to nay all maintenance, depreciation, replacement, betterment and in- terest charges, and for interest and Sinking Fund sufficient to nay the Interest and principal of said bonds as such princ'.nal and in- terest matures and accrues and any outstanding indebtedness against Gthe system, as is reculred by Article 1113, 1925 Revised Civil Btat- utes of Texas and amendments thereto. For the benefit of the original purchaser, and for the benefit of any and all subseouent holders of said bonds, coupons, or any part thereof, and in addition to all other nrovlsions and covenants in the laws of the State of Texas and in this ordinance, it is expressly stipulated: A. Rates: The Town shall fix and. maintain rates andcollect charges for the facilities and services afforded by the System, which will provide revenues sufficient at all times: (1) To pay for all operations, maintenance, denreciation, [ replacements and betterment charges of the System. fir' (2) To establish and maintain the Bond Fund. (3) To nay all outstanding indebtedness against the System, other than the bonds, as and omen the same becomes due. Provided also that no free aervlce of the System shall be allowed and should the Town or any of its agencies or in- strumentalities make use of the services andfacilities of the System, payment of the reasonable value thereof shall be made by the Town out of funds derived from sources other than the revenues and income of the System. B. UBE OF REVENUES. The Town will deposit as collected all revenues derived from the operation of the System into a separate account (herein called the "System Fund") which shall be kept sena- 25 Grate and apart from all other funds of the Town. The System Fund. shall be administered as follows: (1) BOPID FUND. From the funds in the Syste�a Fund, the Town shall nay into the Bond. Fund during each year beginning with the date of completion of the project, an amount equal to 100 per centum of the amount required to meet the interest and principal nayments falling due on or before the next maturity date of the bonds. In addition to such payment, the Town shall pay into the Bond Fund from the System Fund in each year 20 per centum of the above required amount until such time as there is in the Bond Fund an amount sufficient to meet the interest and principal payments falling due on or before the next maturity date of the bonds and the interest and princinal Dayments on the bonds for 2 years thereafter. The amount required to be paid into the Bond Fund in each year shall be paid in substantially equal monthly nayments from the monies in the System Fund after deductions have been made for naying the reasonable cost of the operating and iaintaininF of the System for such month. If the reve- nues of tie System in any month, after deductions for opera- . tion and maintenance, are insufficient to make the required payment Into the Bond Fund, then the amount of any deficiency in the payment shall be added to the amount otherwise required to be paid into the Bond Fund in the next month. It is the intent of this provision that the sums paid into the Bond Fund shall be in excess of the immediate requirements for payment of Interest on the principal of the bonds, until there has been accumulated in the Bond Fund, as a reserve for contin- gencies, an amount sufficient to service the bonds for two years. The monies in the Bond Fund shall be used solely for the purpose of paying interest on and princinal of the bonds until all bonds have been retired; provided, that, when the total in the Bond Fund is equal to the aggregate principal amount of the bonds outstanding plus accrued interest thereon, 26 respects to the lien of the bonds authorized in this ordinance. In no event, while any of saidbonds are outstanding, rill- tile Town mortgage or otherwise encumber the System or any Part thereof, or sell, lease or otherwise dispose of any substantial Portion of such System. These provisions shall Inure to the benefit of and be en- forceable by any holder of any of the bonds. D. Maintenance and Operation. The Town shall maintain the Sys- tem in good condition and operate the same in an effecient manner and at a reasonable cost. So long as any of the bonds are outstanding, the Tovm agrees to maintain insurance, for the benefit of the holder or holders of the bonds, on the System of a kind that in an amount which usually would be carried by Private companies engaged in a sim- ilar type of business. Nothing in this ordinance shall be construed as requiring the Town to expend any funds which are derivedfrom sources other than the operation of the System, but nothing herein shall be construed. as preventing the Town from doing so. E. Accounts and Periodic Statements. The Town shall keep proper books of records and accounts (separate from all other records and accounts) in which complete anc correct entries shall be made of all transactions relating to the System. The town shall furnish to any holder of any of the bonds, at the written request of such holder, �I not more than thirty days after the close of each six months fiscal period, complete operating and income statements of the System in reasonable detail covering such six months period, and, not more than sixty days after the close of each fiscal year, complete fi- nancial statements of the System in reasonable detail covering such fiscal year, certified by the Town's auditors. F. Inspection. Any purchaser of 25 per centum in aggregate Principal amount of the bonds at the time then outstanding or 2ny holder or holders of 25 per centum of saidamount of outstanding bonds shall have the right at all reasonable tines to inspect the GSystem and all records, accounts and Bata of the Town relating thereto. 28. G. Information. During the construction of the Project the Town will furnish to any purchaser of 25 ner centum of the bonds, such financial statements and other information and data relating to the Town, the Project and the System as any such purchaser from time to time may reasonably reculre. H. Sale of Bonds. Unon request, the Town will furnish to any purchaser of 25 per centum of the Bonds, information for the nrenara- tion of a bond circular in customary form, signed by the prover of - facial of the Town, containing such data as such purchaser may reason- ably reouest concerning the Town, the Project and the System. 10. The Mayor, Town Clerk and Town Treasurer are hereby- instructed and directed to do any and all things necessary and/or convenient in re- ference to the installing and maintaining of a complete system of records and accounts pertaining to said system and to make the monies available for the nayment of said revenue bonds in the manner provided by Chapter 122, Acts of the Regular Session of the Forth -Third Texas Legislature, effective May 1.2, 1933. In accordance nd.th the provisions of Article 1113, 1925 Revised Civil Statutes of Texas, as amended, the fiscal year. for the oneration of such System shall be January lst, to December 31st of each year. The remaining part of 1938, shall constitute a fractional ` nart of a fiscal year. follows; 11. The town further covenants by and through this ordinance as (a) That the revenue bonds authorized hereunder shall be snecial obligations of the Town, andthe holder thereof shall never have the right to demand payment thereof out of funds raised or to be raised by taxation. (b) Thrt it has the lawful power to pledge the revenue sunnort- ing this issue of bonds and has lawfully exercised said nower under the Constitution and of the State of Texas, including power ex- isting under Articles 1111 to 1118, both inclusive, 1925 Revised Civil �y Statutes of the State of Texas, with amendments ther=to, and by auth- ority of a vote of the qualified electors of said Town voting at an election heldon the 13th day of August, 1238; that the bonds issued 29 hereunder shall be ratably secured under said pledge of income, in such manner that one bond shall have no preference over any other bond of said issue. (c) That other than for the payment of the bonds herein pro- vided for, the -rents, revenues and income of said water system have not in any manner been pledged to the payment of any debt or obliga- tion of the Town, nor of said system. (d) In addition to monies to be paid into the Bond Fund from revenues produced by said system, the Town will pay into said fund the follor:ing: The balance remaining unexpended from the proceeds of the sale of the bonds, after the completion of the project, and the money represented by interest accruing on said bonds from their date to the date of delivery to the purchaser or purchasers thereof. Said funds shall be used for the nurpose of nurchasin€r outstanding bonds and/or interest coupons; provided that bonds thus purchased shall be cancelled and shall not be reissued. 12. It shall be the dut.i of the Mayor to submit the record of said bonds and the bonds to the Attorney General of the State of Texas for approval and thereafter to have them registered by the Comptroller of the State of Texas. G13. The revenue bonds, when properly executed by the Town of- ficials shall be held by the 1':ayor of ti.e Town to be delivered by the Mayor to the purchaser or purchasers thereof. The Mayor, Town Clerk and Town Treasurer are authorized and directed to do any andall things necessary and/or convenient to carry out the terms of said purchase. 14. The bonds thus authorized shall pass by delivery. 15. All ordinances and resolutions, and parts thereof, in con - flirt herewith are hereby expressly reneeledinsofar as they conflict herewith. 16. By reason of the fact that the Town Commission considers the passage of this ordinance necessary for the preservation of the public health and safety of the Town and of Ica citizens, it is hereby declaredto be an emergency measure demanding that the rule recuiring ordinances to be read at more than one meeting of the Town Commission 30; I `i LM be susnended and that this ordinance take effect immediately from and after its passage, and it is so ordained. 1938. ATTEST; PASSED AND APPROVED This t-ie S 1 k� day of September, '?� TDi^n Clerk. Mayor,Torn o' itif/r, Texas. 31 THE STATE OF TEXAS , CO'_'NTY OF COLLIST TONN OF PROSPER I, C. W. Harper, Town Clerk of the Town of Prosner, Texas, do hereby certify that the foregoing is a true and correct cony of an ordinance end the minutes relatinpto its adoption passed by the Town Commission on the_ 01'-�day of September, 1938, andths,t it has been properly enrolled, placed In the office Cof the Town Clerk andapproved by the Mayor, having been recorded. in Book 1, page /o y _ , et sec.,, of the Minutes of the Town Commission. T EXECUTED under my hand and seal of said Town, this the day of September, 1938. Tor Cle ie, fo! o' Prosner, Texas, (SEAL) 32, IL THE STATE OF TEXAS , C0*17NTY OF COLLIN TOWN OF PROSPER , We, the undersigned, Town Clerk and Torn Treasurer of the Torn of Prosper, Texas, do hereby certify that other than for the payment of the water system Revenue Bonds dated August let, 1938, numbered from 1 to 32,of the aggregate amount of g12,000.00, the water system, the rents, revenues andincome of the said water Gsystem have not in any :manner been pledged to the payment of any debt or obligation of the Town nor of said system. Witness our hands and the seal of the Town of Prosper, Texas, this the lk- 1day of September, 1938. (SEAL) _. / L wn Clerk. A- Treasurer. 33 THE STATE OF TEXAS . COUNTY OF COLLIN . TO N OF PROSPER . I, C. W. Harper, the Town Clerk of the Town of Prosner, Texas, do hereby certify that the above and foregoing is a true and correct cony of: I. (a) An ordinance authorizing the issuance of "T^wn of Pros- ner, Texas, 'Hater System Revenue Bonds, Series 1938". j as the same now appears on file and of record in my office. II. G I further certify that the resolution of the Town Commission ordering the bond election is of record on page 89, at sec, of Vol. 1, of the Minutes of the Town Commiselon, which minutes have been duly signed and approved by the Mayor. III. I further certify that the resolution canvassing the returns and declaring the results of the election appears of record on page 99, at sec., of Vol. 1, of the Minutes of the Town Commission, which minutes have been duly approved and signed by the Mayor. IV. 4. I further certify that the ordinance authorizing the issuance of the bonds was passed at &'regular meeting of the Town Commission all members thereof being present, and appears of record in Vol. 1, at pages /a , at sec., of the records of such Town, and said ordinance has Ueen duly approved and signed by the Mayor. V. I further certify that all proceedings of any character which in any way affect the bond issue authorized herein are shown herein. WITI,E my hand, and the seal of said Town of Prosper, Texas, on this 'I, 'Y day of September, A.D. 1938, (SEAL) _ om'r! �i f Prosner, 'Texas. 34.