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78-04 O - Authorizing the Issuance of General Obligation Bonds '. I 0.i ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS THE STATE OF TEXAS COUNTY OF COLLIN TOWN OF PROSPER WHEREAS , the bonds hereinafter authorized were lawfully and favorably voted at an election duly held in said Town on August 28 , 1976 ; and WHEREAS, none of the general obligation bonds voted at sa id election has been authorized, issued or delivered; and WHEREAS , it is necessary and advisable to authorize , issue and deliver an installment or series of said bonds ; and WHEREAS , the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Art. 823 V.A.T .C .S . III THEREFORE , BE IT ORDAINED BY THE TOWN COUNCIL OF THE ' TOWN OF PROSPER, TEXAS : Section 1. That said Town ' s bonds are hereby authorized to be issued in the aggregate principal amount of $100 , 000 , for the purpose of improving and extending said Town ' s Sewer System. Section 2. That said bonds shall be designated as the TOWN OF PROSPER, TEXAS SEWER SYSTEM GENERAL OBLIGATION BONDS , SERIES 1978. Section 3. That said bonds shall be dated March 10 , 1978 , shall be in the denomination of $1,000 each, shall be numbered consecutively from one upward, and shall mature serially on the , maturity date , in each of the years , and in the amounts , respec- tively , as set forth in the following schedule : MATURITY DATE : JANUARY 10 • YEARS AMOUNTS 1986 $ 6 ,000 1987 6 ,000 1988 6 ,000 1989 6 ,000 1990 7 ,000 1991 7 , 000 1992 7 ,000 1993 7 ,000 1994 8 ,000 1995 8 ,000 1996 8 ,000 1997 8 , 000 1998 8 ,000 1999 8, 000 Section 4. That the bonds shall bear interest at the rate of 5. 50% per annum. Said interest shall be evidenced by interest coupons which shall appertain to said bonds , and which shall be payable in the manner provided and on the dates stated in the 411 FORM OF BOND set forth in this Ordinance. 1 • Section 5. That said bonds and interest coupons shall be issued, shall be payable , may be redeemed prior to their scheduled maturities , shall have the characteristics , and shall , 411 be signed and executed (and said bonds shall be sealed) , all as provided, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance. Section 6. That the form of said bonds , including the form of Registration Certificate of the Comproller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds , and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said bonds , shall be, respectively, substantially as follows : FORM OF BOND NO. $1,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF COLLIN TOWN OF PROSPER, TEXAS SEWER SYSTEM GENERAL OBLIGATION BOND SERIES 1978 41/ ON JANUARY 10 , 19 , THE TOWN OF PROSPER, IN THE COUNTY OF COLLIN, STATE OF TEXAS , hereby promises to pay to bearer hereof the principal amount of ONE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate of 5. 50% per annum, evidenced by interest coupons payable on January 10 , 1979 , and semiannually thereafter while this bond is outstanding. THE PRINCIPAL of this bond and the interest coupons apper- taining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon , at the following, which shall constitute and be defined as the paying agent for this Series of bonds : MERCANTILE NATIONAL BANK AT DALLAS , DALLAS, TEXAS • THIS BOND is one of a Series dated as of March 10 , 1978 , authorized, issued and delivered in the principal amount of $100 ,000 , for the purpose of improving and extending said Town' s Sewer System. ON JANUARY 10 , 1998 , or on any interest payment date thereafter, any outstanding bonds of this Series may be redeemed prior to their scheduled maturities , at the option of said Town , in whole, or in part, for the principal amount thereof and accrued interest thereon to the date fixed for redemption. At least thirty days prior to the date fixed for any such redemption, said Town shall cause a written notice of such redemption to be published at least once in a financial publication published in the City of New York, New York. By the date fixed for any such redemption due provision shall be made with the Paying Agent for the payment of the principal amount of the bonds which are to be so redeemed and accrued interest thereon to the date fixed for redemption. If such written notice of redemption is publish- ed and if due provision for such payment is made, all as provided above , the bonds which are to be so redeemed thereby automatical-, • ly shall be redeemed prior to their scheduled maturities , and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the bearer to receive the redemption price from the Paying Agent out of the funds provided for such payment. • • br IT IS HEREBY certified, recited and covenanted that this bond has been duly and validly voted, authorized, issued and delivered; that all acts , conditions and things required or proper to be performed, exist, and be done precedent to 411 or in the voting, authorization, issuance and delivery of this bond have been performed, existed, and been done in accordance with law; that this bond is a general obligation of said Town, issued on the full faith and credit thereof; and. that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this bond, as such interest comes due and such principal matures , have been levied and ordered to be levied against all taxable property in said Town, and have been pledged irrevocably for such payment, within the limit prescribed by law. IN WITNESS WHEREOF, this bond and the interest coupons appertaining hereto have been signed with the facsimile sig- nature of the Mayor of said Town and countersigned with the facsimile signature of the Town Secretary of said Town , and the official seal of said Town has been duly impressed, or placed in facsimile, on this bond. xxx xxx Town Secretary Mayor S FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE : REGISTER NO. I hereby certify that this bond has been examined, cer- tified as to validity, and approved by the Attorney General of the State of Texas , and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON NO. $ • ON , THE TOWN OF PROSPER, IN THE COUNTY OF COLLIN, STATE OF TEXAS , promises to pay to bearer hereof the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer hereof, unless due provision has been made for the redemption prior to scheduled maturity of the bonds to which the interest coupon appertains , upon presentation and surrender of this interest coupon , at the Mercantile National Bank at Dallas , Dallas , Texas , said amount being interest coming due that day on the bond, bearing the number hereinafter designated, of that issue of TOWN OF PROSPER, TEXAS SEWER SYSTEM GENERAL 1OBLIGATION BONDS , SERIES 1978 , dated March 10 , 1978. Bond No. xxx xxx ", Town Secretary Mayor 411 r ` • Section 7. That a special "Interest and Sinking Fund" is hereby created solely for the benefit of said bonds , and said Interest and Sinking Fund shall be established and main- tained by said Town at an official depository bank of said Town. • Said Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of said Town , and shall be used only for paying the interest on and principal of said bonds. All ad valorem taxes levied and collected for and on account of said bonds shall be deposited, as collected, to the credit of said Interest and Sinking Fund. During each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid, the governing body of said Town shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on said bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of such bonds as such principal matures (but never less than 2% of the original amount of said bonds as a sinking fund each year) ; and said tax shall be based on the latest approved tax rolls of said Town , with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in said Town for each year while any of said bonds or interest coupons appertaining thereto are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said bonds , as such interest comes due and such principal matures , are hereby pledged irrevocably for such payment, within the limit prescribed' by law. Section 8. That the Mayor of said Town is hereby author- ized to have control of said bonds and all necessary records and proceedings pertaining to said bonds pending their delivery and their investigation , examination, and approval by the Attorney General of the State of Texas , and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of said bonds , said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller' s Registration Certificate printed and endorsed on each of said bonds , and the seal of said Comptroller shall be placed in facsimile, . on each of said bonds. • Section 9. That the Town covenants to and with the pur- chasers of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers , would have caused the bonds to be arbitrage bonds within the meaning of Section 103 (c) of the Internal Revenue Code of 1954 , as amended, or any regulations or rulings pertaining thereto; and by this covenant the Town is obligated to comply with the requirements of the aforesaid Section 103 (c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The Town further covenants that the proceeds of the bonds will not otherwise be used directly or indirectly so as to cause all or any part of the bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103 (c) , or any regulations or rulings pertaining thereto. • I • Section 10. That it is hereby officially found and deter- mined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necessity being that the proceeds from the sale of said bonds are required as soon as possible and without delay for necessary and urgently needed public improvements ; and that said meeting was open to the public , and public notice of the time , place and purpose of said meeting was given, all as required by Vernon ' s Ann. Civ. St. Article 6252-17. Section 11. That said bonds are hereby sold and shall be delivered to the Texas Water Development Board for cash for the par value thereof and accrued interest thereon to date of de- livery, plus a premium or a discount in an amount necessary to adjust the interest rate borne by the bonds to the statutory lending rate of the Texas Water Development Board, pursuant to Section 17. 174 of Chapter 5 , Title 2 of the Texas Water Code. Section 12. That the Town shall render a final accounting to the Texas Water Development Board of the total cost incurred in connection with the project for improvements and extensions to the Town' s Sewer System upon completion of same. 11/ Section 13. That any surplus bond proceeds from the sale of the bonds after completion of this project shall be used to redeem the bonds prior to maturity as directed by the Texas Water Development Board. • -•cf ca. CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS THE STATE OF TEXAS : COUNTY OF COLLIN : TOWN OF PROSPER • We, the undersigned officers of said Town, hereby certify as follows : 1. The Town Council of said Town convened in SPECIAL MEETING ON THE 7TH DAY OF MARCH , 1978 , at the City Hall , and the roll was called of the duly constituted officers and members of said Town Council , to-wit: Roy Skelton, Mayor Vera Clary Mattie Bridges, Town Secretary Danny Webb Morris Jackson Tommy Bailey R. L. Dalton, Sr. and all of said persons were present, except the following absentees : thus constituting a quorum. Whereupon, among other business, 411 the following was transacted at said Meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS was duly introduced for the consideration of said Town Council and read in full. It was then duly moved and seconded that said Ordinance be passed; and, after due discussion, said motion, carrying with it the passage of said Ordinance, prevailed and I carried by the following vote: AYES: All members of said Town Council shown present above voted "Aye" . NOES: None. 2. That a true, full and correct copy of the aforesaid Ordinance passed at the Meeting described in the above and fore- going paragraph is attached to and follows this Certificate; that said Ordinance has been duly recorded in said Town Council minutes of said Meeting; that the above and foregoing paragraph is a true, full and correct excerpt from said Town Council ' s minutes of said Meeting pertaining to the passage of said Ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of said Town Council as indicated therein; that each of the officers and members of said Town Council was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in advance, to the holding of said Meeting for such purpose; and that said Meeting was open to the public , and public notice of the time, place and purpose of said meeting. was given, all as required by Vernon' s Ann. Civ. St. Article 6252-17 . 3 . That the Mayor of Town has approved and hereby approves the aforesaid Ordinance; that the Mayor and the Town Secretary 111 of said Town have duly signed said Ordinance; and that the Mayor and Town Secretary of said Town hereby declare that their sign- ing of this Certificate shall constitute the signing of the attached and following copy of said Ordinance for all purposes. SIGNED AND SEALED the 7th day of M rch , 1 78. Town Secretary !ay r evnr.