42-02 O - Emergency Loan from Texas State Bank for Water Equipment ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE TOWN OF PROSPER, TEXAS, TO BORROW FROM
THE PROSPER STATE BANK OF PROPSER, TEXAS, THE SUM OF $1900 .00, WITH
WHICH TO PURCHASE FOR SAID TOWN, FROM BRIGGS-WEAVER MACHINERY COM-
PANY ONE "HI-LIFT'` PUMP AND EQUIPMENT TO BE INSTALLED AS A PART OF
THE WATER WORKS SYSTEM OF THE SAID TOWN OF PROPER AND IN PART FOR
THE DIGGING OF A WATER WELL FOR SAID TOWN, FIXING A CHARGE FOR THE
USE OF WATER METERS IN SAID TOWN, AND AUTHORIZING SAID TOWN TO ISSUE
ITS INTEREST BEARING WARRANT TO SAID BANK FOR SAID SUM, AND PROVIDING
FOR THE PAYMENT OF PRINCIPAL AND INTEREST OF SAID WARRANT IN INSTALL-
MENTS OUT OF THE REVENUES OF SAID SYSTEM, AND OF SAID METER CHARGE,
AND TO GIVE SAID BANK A PURCHASE MONEY LIEN AGAINST SUCH "HI-LIFT"
PUMP AND EQUIPMENT TO SECURE THE FIRST $1500.00 AND INTEREST MATURING
ON SAID WARRANT, AS THE SAME BECOMES DUE, AND AUTHORIZING THE SALE OF
OLD MACHINERY AND EQUIPMENT USED IN CONNECTION WITH PRESENT WELL, AND
APPLICATION OF THE PAYMENT OF THE PROCEEDS OF SUCH EQUIPMENT TO LAST
MATURING INSTALLMENT OF PRINCIPAL AND INTEREST ON SAID WARRANT AND
DECLARING AN EMERGENCY.
WHEREAS, en emergency has arisen because of failure of the
water supply of said town of Prosper, Texas, due to unforeseen damage
to the present pump, machinery, and equipment necessary to provide
water through the water works system of the town of Prosper, Texas,
iftw
the governingof said town deem it necessaryto body provide for the
immediate repair of said equipment, and purchase of Briggs-Weaver
Machinery Company, one "HI-LIFT" pump and necessary equipment, to be
installed in connection with the water works system of the said town
of Prosper, Texas, for protection of public property in said town and
for the protection of the lives and health of the citizens of said
town, and by reason of the failure of the present water well used by
said town necessitating the digging and equipping of a new water well,
and,
WIT EAS, the town of Prosper, Texas, has entered into an
agreement with the said Briggs-Weaver Machinery Company for the
purchase from it , and the installation by it, of said pump and
equipment for the purchase price of $1500.00 to be furnished by
said Prosper State Bank, and said town further proposes the digging
of sait water well conditioned upon said bank loaning to said town
$koo .00 to be used toward paying the expense of drilling said new
water well, all conditioned upon said town issuing to said bank
interest bearing warrant of said town for the principal sum so ad-
vanced by said bank, and interest thereon from date of said warrant,
payable in the manner as hereinafter set forth in installments, and
further conditioned that the said Prosper State Bank shall have a
purchase money lien upon said pump and equipment, and a lien upon
the revenues of said system, and the revenues of said meter charge,
to secure the payment of said principal and interest of said warrant,
as same accrues, and,
WHEREAS, the holders of present obligations of the town of
Prosper, Texas, secured by lien upon the water works system of the
town of Prosper, and the revenues thereof have agreed to waive their
lien to the extent and amount necessary to pay the principal and in-
terest of said warrant, as same shall accrue, in order to purchase
and install said pump and equipment.
Now, THEREFORE, be it ordained by the Board of Commissioners
of the town of Prosper, Texas :
1 . That to provide funds for the purchase, by the town of
Prosper, Texas, from Briggs-Weaver Machinery Company, of one "Hi-Lift"
pump and equipment, to be installed as a part of the water works system
of said town. of Prosper, Texas, and to secure a portion of the funds
necessary to dig a water well for said town. The town of Prosper is
authorized to borrow from the Prosper State Bank of Prosper, Texas,
the sum of $1900 .00 for purchase and installation of said pump and
equipment, and to dig said water well, and to issue to said Prosper
State Bank, to secure the repayment of said sum, Town of Prosper Water
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Works Improvement warrant 1942 in the sum of $1900 .00, said warrant
to bear date February 10th, 1942, and the principal thereof to bear
interest at the rate of 6% per annum until paid, and the principal
thereof to be payable with interest in 16 monthly installments, the
first 15 installments of principal to be $100.00 each, and the last
installment of principal to be $k00.00, the first installment to be
payable the 10th day of April, 1942, interest on the whole amount of the
indebtedness evidenced by said warrant and unpaid at the time each such
installment becomes due, shell at the time each such installment becomes
due, be paid at the rate of 6; per annum past due installments of rrin-
dipal and interest bearing interest at the rate of 6% per annum until
paid. Said warrant to be in form substantially as follows, to-wit :
TOWN OF PROSPER, TEXAS
WATER WORKS IMPROVEMENT WARRANT
1942
THE TOWN OF PROSPER, in Collin County, State of Texas, for
value received, this the 10th day of February A . D. 1942 acknowledges
itself indebted to and hereby obligates itself to pay to the Prosper
State Bank, of Prosper, Texas, at Prosper, in Collin County, Texas,
the principal sum of $1900 .00 in lawful money of the United States
of America in amount and time as follows :
$100 .00 April 10th, 1942
100 .00 May 10th, 1942
100.00 June 10th, 1942
100.00 July 10th, 1942
100.00 August 10th, 1942
100 .00 September 10th, 1942
100 .00 October 10th, 1942
100 .00 November 10th, 1942
100.00 T` ^ember 10th, 1942
100 .00 .'# nary 10th, 1943
100.06 rebruary 10th, 1943
100 .00 March 10th, 1943
100 .00 April 10th, 1943
100.00 May 10th, 1943
100 .00 June 10th, 1943
400.00 July 10th, 1943
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41111,
' with interest upon the unpaid principal balance hereof at the rate of
6% per annum from date hereof, due and payable with each installment,
past due installments of principal and interest shall bear interest at
the rate of 6% per annum.
The payment of this warrant is secured by revenues of the
water works system and proceeds of meter rent of said town of Prosper
set aside by ordinance of said town monthly hereafter in amount suffi-
cient to take care of and pay each installment of principal and interest
hereof when due, and the payment of the first fifteen installments of
principal and interest hereof is further secured by purchase money lien
held by said Prosper State Bank pursuant to terms of this ordinance of
said town of Prosper, Texas, upon one "HI-LIk°I'" pump and equipment,
to be installed as a part of the water works system of the town of
Prosper, Texas, by Briggs-Weaver Machinery Company from whom the same
is purchased by said town of Prosper, Texas, with the proceeds of the
loan to said town as made by said bank and as evidenced by this warrant.
In witness whereof, the town of Prosper, Texas, by its board
of commissioner, has caused its corporate seal to be affixed hereto
and this warrant to be signed by its mayor, countersigned by its town
clerk, and registered by the town treasurer.
Mayor Town o Pr_ iper
COUNTERSIGNED:
town Clerk Town of Prosper
REGISTERED:
Town Trey surer Town of Prosper
and said warrant shall be signed by the mayor of the town of Prosper,
110"' Texas, and countersigned by the town clerk and registered by the town
treasurer of said town and the corporate seal of said town affixed
thereon.
.r
Said warrant is authorized and directed to^the said Prosper
State Bank upon payment by it to said town of Prosper, Texas, of said
sum of $1900 .00 which is hereby authorized and directed to be paid to
said Briggs-Weaver Machinery Company as the purchase price of said
pump and equipment and of the installment thereof as a part of the
water works system of the said town af' Prosper, Texas, and said Prosper
State Bank shall have, and is hereby given and granted a purchase money
lien against said pump and equipment to secure the payment of said
warrant according to its face, terms, tenor, and effect.
2. There is hereby appropriated and set aside from the monthly
earnings of the water works system of the said town of Prosper, Texas,
hereafter a sum and amount sufficient to pay installments of princiaai
and interest upon said warrant as same accrue, which said sums are to
be deposited each month with the treasurer of said town subject only to
the payment of principal and interest upon said warrant.
3 . Hereafter there shall be charged by the town of Prosper,
Texas, to each consumer who uses a water meter furnished by said town,
a charge for meter service according to the following schedule :
For each cotton gin, a meter charge of $10.00 per annum, pay-
able on or before the 10th day of the calendar month succeeding the month
lior in which this ordinance is adopted, in advance for the year; each con-
sumer of water, other than a cotton gin, using a water meter furnished by
said town there shall be charged for the use of each such meter 250 per
month, such monthly charge to be payable on the 10th day of each calendar
month after the adoption of this ordinance, and the proceeds of such meter
charges are set aside and directed to be paid upon said warrant.
4. The machinery heretofore used in connection with the town of
Prosper' s water well and which is replaced by new pump and machinery pur-
chased hereunder shall be promptly sold by said town and the proceeds of
such sale shall be applied toward payment of the sixteenth installment
of principal, and interest of such installment, set forth in said warrant.
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5. By reason of the fact that there has been a failure of
water supply of the town of Prosper, Texas, due to unforeseen damages
to the present pump and equipment used to provide water through the
water works system of said town, the town commission considers the
passage of this ordinance necessary for the protection of public property-
in said town and for the protection and health of the citizens of said
town and it is hereby declared to be an emergency measure demanding that
the rule requiring ordinances to be read at more than one meeting of the
town commission be suspended and that this ordinance take effect immed-
iately from and after its passage, and it is so ordained.
?!!" Passed and approved this 10th day of February A. D. 1942.
Mayor Town of ' Prosper
(SEAL
ATTEST:
Town Secrete, Town of Prosper
T wn Attorney, sown of Prosper