HomeMy WebLinkAboutO-630ORDINANCE NO. 630
BE IT ORDAINED by the Mayor and City Council
(herein called "the Council") of the City of Fairhope,
Alabama (herein called "the City") as follows:
Section 1. The bid this day filed with the
City by 1st Nat. Bank of B'ham for the purchase from the City
of $360,000 principal amount of Water, Gas and Sewer Rev-
enue Bonds, Series 1978, dated December 1, 1978, at and
for a purchase price equal to $360,000 , plus accrued
interest thereon from the date of the said bonds to the
date of delivery thereof and payment therefor, bearing
interest at the per annum rates of
1987 6.00% 1991 6.20.
1988 _bb°I 1992 �l-
1989 T7.(77 1993l
1990 ��i. 1994 °l-
which interest shall be payable semiannually, be and the
said bid is hereby determined to be the bid received for
the said bonds which represents the lowest total net in-
terest cost therefor to the City, computed as provided in
the Official Invitation for Bids therefor.
Section 2. The Council does hereby determine
and deem it most a varltageys. to the CVf that the said
bonds be sold to e first ational Bank o irmingham
and the said bonds are hereby sold to the said
named bidders, bearing interest at the rates and for the
purchase price specified in Section 1 of this ordinance.
The said Mayor is hereby authorized to execute and de-
liver in the name of and in behalf of the City an accept-
ance of the said bid, to retain the good faith check of
the said named bidders as security for their said bid in
accordance with the provisions of the said Official In-
vitation for Bids, and to return to all other bidders the
good faith checks filed by them with their bids.
Section 3. The Council has ascertained and
does hereby find and declare that the following facts are
true and correct:
(a) The City has heretofore issued
$1,000,000 principal amount of Water, Gas and
Sewer Revenue Bonds, Series 1961, dated Decem-
ber 1, 1961, and presently outstanding in the
aggregate principal amount of $580,000 (herein
called "the Series 1961 Bonds"), and $875,000
principal amout of Water, Gas and Sewer Revenue
Bonds, Series 1972, dated December 1, 1972, and
presently outstanding in the aggregate princi-
pal amount of $740,000 (herein called "the Se-
ries 1972 Bonds");
(b) The Series 1961 Bonds were issued un-
der a Trust Indenture between the City and The
If
Merchants National Bank of Mobile (herein
called "the Trustee") dated as of December 1,
1961 (herein called "the 1961 Indenture"), and
the Series 1972 Bonds were issued under a sup-
plemental indenture between the City and the
Trustee dated as of December 1, 1972 (herein
called "the 1972 Indenture"; the 1961 Inden-
ture, as so supplemented, herein called "the
Indenture");
(c) In Article VII of the Indenture, the
City reserved the right to issue additional
bonds on a parity with the Series 1961 Bonds,
as respects the lien of the Identure, subject
to certain conditions set out therein. It is
the intention=of the City that the bonds re-
ferred to in Section 1 of this ordinance be is-
sued as additional parity bonds under said Ar-
ticle VII, and this ordinance is being adopted
by the City for the purpose, among others, of
qualifying with the provisions of Section 7.2
(c) of the Indenture;
(d) The City is not now in default under
the Indenture and no such default is imminent;
(e) The bonds referred to in Section 1 of
this ordinance are being issued to pay a por-
tion of the costs of (i) purchasing the assets
(distribution lines, etc.) of the West Baldwin
Water Authority, (ii) extending an 8" water
line north of the City to serve approximately
seventy (70) additional customers, (iii) ex-
tending 6" and 8" water lines south of the City
to serve approximately two hundred (200) ad-
ditional customers, and (iv) paying miscella-
neous expenses and engineering costs;
(f) The number and series designation of
the said bonds shall be as expressed in the
supplemental indenture hereinafter authorized;
and
(g) The presently outstanding underlying
securities (as that term is defined in the In-
denture) are $24,000 principal amount of Mort-
gage Water and Sewer Revenue Bonds, dated July
1, 1950, issued by The Water Works and Sewer
Board of the City of Fairhope (herein called
"the Board") and assumed by the City and
$85,000 principal amount of Water and Sewer
Revenue Bonds, Second Series, dated July 1,
1953, issued by the Board and assumed by the
City.
Section 4. In order to raise funds necessary
to pay the costs referred to in Section 3(e) hereof,
there are hereby authorized to be issued $360,000 princi-
pal amount of Water, Gas and Sewer Revenue Bonds, Series
1978, dated December 1, 1978 (herein called "the Series
0
p.
1978 Bonds"), all under and pursuant to the Indenture as
supplemented by the Second Supplemental Indenture pro-
vided for in Section 5 hereof. The Series 1978 Bonds and
the interest coupons applicable thereto shall bear such
date or dates, shall mature at such times and in such
manner, shall bear such rates of interest, shall be pay-
able in such place, shall be in such denomination, shall
bear such numbers and shall be in such form and contain
such provisions as are set out in the said Second Supple-
mental Indenture provided for in Section 5 hereof. All
of the provisions of the said Second Supplemental Inden-
ture and of the Series 1978 Bonds therein and herein au-
thorized and referred to are hereby adopted as a part of
this ordinance as though the same were set out in full
herein.
Section 5. Pursuant to and in accordance with
the provisions of Section 7.2(c) of the Indenture, and
for the purpose of describing the Series 1978 Bonds and
for the other purposes therein stated, the Mayor is here-
by authorized and directed to execute and deliver, for
and in the name and behalf of the City, a Second Supple-
mental Indenture to the Trustee and the City Clerk is
hereby authorized and directed to affix the corporate
seal of the City to the said Second Supplemental Inden-
ture. The said Second Supplemental Indenture shall be in
substantially the form presented to the meeting at which
this ordinance is adopted, which form shall be attached
to said minutes as Exhibit A and which is hereby adopted
in all respects as if the same were set out in full here-
in.
Section 6. Promptly following the sale and is-
suance of the Series 1978 Bonds, the City Clerk is hereby
directed to file in the office of the Judge of Probate of
Baldwin County, Alabama, a notice in accordance with the
provisions of Section 2.3 of the Indenture in order to
declare that the statutory mortgage lien created in said
Section 2.3 exists in favor of the Series 1978 Bonds, the
Series 1961 Bonds and the Series 1972 Bonds and will be
subject only, with respect to the water and sewer system,
to the lien of the underlying indentures (as that term is
defined in the Indenture) and to an agreement between the
City and Alabama Pollution Control Finance Authority
dated January 1, 1973.
ADOPTED this 9th day of January, 1979.
Attest:
t"G J�a&_
City Clerk
Mayor
A
EXHIBIT..... A......._
SECOND SUPPLEMENTAL INDENTURE
This SECOND SUPPLEMENTAL TRUST INDENTURE be-
tween the CITY OF FAIRHOPE ("the city"), a municipal cor-
poration under the laws of Alabama, party of the first
part, and THE MERCHANTS NATIONAL BANK OF MOBILE ("the
trustee"), a national banking asociation, having its
principal place of business in the City of Mobile in the
State of Alabama, party of the second part,
W I T N E S S E E T H
In consideration of the respective agreements
herein contained, it is hereby agreed by and between the
parties signatory hereto and the holders at any time of
the Series 1978 bonds hereinafter described (the said
holders having given their consent hereto by their ac-
ceptance of the Series 1978 bonds), each with each of the
others, as follows (provided, that in the performance of
any of the agreements of the city herein contained any
obligation which may be incurred for the payment of
moneys shall not be a general debt of the city but shall
be- payable solely out of the revenues from the city's
water and sewer system and the city's gas system, as
those terms are defined in the original indenture):
ARTICLE I
DEFINITIONS, USE OF PHRASES
AND RECITALS
Section 1.1 Definitions and Use of Phrases.
The definitions and the provisions for the use of phrases
set out in Article I of the original indenture herein-
after referred to, wherever used in this supplemental in-
denture, shall, in the absence of clear implication here-
in otherwise, be given the respective interpretations,
meanings and uses provided for in Section 1.1 and Section
1.2 of the said original indenture. In addition thereto,
the following words and phrases where used in this sup-
plemental indenture shall, in the absence of clear impli-
cation herein otherwise, be given the following interpre-
tations and meanings herein:
"Original indenture" means the Indenture be-
tween the city and the trustee dated June 1, 1961, under
which were issued the Series 1961 bonds and the Series
1972 bonds.
1
"Series 1972 bonds" means those of the initial
bonds bearing the designation Water, Gas and Sewer Reve-
nue Bonds, Series 1972, and dated December 1, 1972, which
were originally issued in the principal amount of
$875,000 as additional bonds pursuant to Article VII of
the original indenture and a supplemental indenture be-
tween the city and the trustee dated December 1, 1972.
"Series 1978 bonds" means those of the bonds
bearing the designation Water, Gas and Sewer Revenue
Bonds, Series 1978, provided for and described in Article
II hereof that may at any time be outstanding under the
provisions of this supplemental indenture.
"This supplemental indenture" means this sup-
plemental trust indenture.
Under the provisions of Section 7.1 of the
original indenture the city reserved the right to issue
additional bonds on a parity with the initial bonds when
the city shall have complied with the conditions set out
in Section 7.2 of the original indenture. No additional
bonds other than the Series 1972 bonds, of which $740,000
in principal amount are now outstanding and unpaid, have
heretofore been issued. The city represents that, in or-
der to pay the costs of constructing capital improvements
to the system and the costs of purchasing certain water
distribution lines, the city has by proper corporate ac-
tion and pursuant to the applicable provisions of Article
VII of the original indenture duly authorized the issu-
ance of its Series 1978 bonds, to be secured by the orig-
inal indenture on a parity with the initial bonds, and
the Series 1972 bonds and all additional bonds that may
at any time be issued pursuant to the provisions of the
said Article VII. This supplemental trust indenture is
executed in order to specify the details of the Series
1978 bonds, and to comply with the requirements of the
original indenture relating to the issuance of additional
bonds.
ARTICLE II
THE SERIES 1978 BONDS
Section 2.1 Name Date Principal Amount De-
nomination and Maturity Dates of the Series 1976 Bonds.
There are hereby authorized to be issued by the city its
Water, Gas and Sewer Revenue Bonds, Series 1978, in the
aggregate principal amount of $360,000. The Series 1978
bonds shall constitute additional bonds as that term is
defined in the original indenture and within the purview
of Article VII of the original indenture, shall be dated
December 1, 1978, shall be issued as coupon bonds in the
denomination of $5,000 each, shall be numbered from 1 to
72, and shall mature on December 1 of each year, as fol-
lows:
2
Bond
Numbers
Year of
Aggregate Principal
(both
inclusive)
Maturity
Amount Maturing
1
to 5
1987
$25,000
6
to 10
1988
259000
11
to 15
1989
25,000
16
to 22
1990
359000
23
to 32
1991
50,000
33
to 42
1992
50,000
43
to 57
1993
759000
58
to 72
1994
759000
Section 2.2 Interest Rates of Series 1978
Bonds. The Series 1978 bonds shall bear interest from
their date until their respective maturities at the fol-
lowing per anum rates:
1987 1991
1988 1992
1989 1993
1990 1994
Such interest shall be payable semianually on June 1 and
December 1 in each year until and at the respective ma-
turities of the Series 1978 bonds and shall be evidenced
by coupons attached thereto. Both the Series 1978 bonds
and the coupons applicable thereto shall bear interest at
the rate of eight per centum (8%) per annum after their
respective maturities.
Section 2.3 Places and Medium of Payment of
the Series 1978 Bonds. The Series 1,978 bonds and the
coupons applicable thereto shall be payable in lawful
money of the United States of America at the principal
office of The Merchants National Bank of Mobile in the
City of Mobile in the State of Alabama.
Section 2.4 Optional Redemption Provisions
Applicable to Series 1978 Bonds. Those of the Series
1978 bonds having stated maturities in 1988 or thereafter
may be redeemed prior to their stated maturities, at the
option of the City, on any interest payment date on or
after December 1, 1987. Any such redemption may be of
all or part of the callable Series 1978 bonds at the time
outstanding, but if the city elects to redeem a part only
then they shall be called for redemption in the inverse
order of the numbers of the callable Series 1978 bonds at
the time outstanding. Any such redemption shall be at a
redemption price for each callable Series 1978 bond re-
deemed equal to its face value plus the following premium
(expressed as a percentage of such face value): 3% if
the date fixed for redemption is in 1987 through 1989; 2%
if the date fixed for redemption is in 1990 through
1991; and 1% if the date fixed for redemption is in 1992
or thereafter. Each such call for redemption and each
such redemption shall be effected in the manner provided
in Article V of the original indenture, and the pro-
visions of this section shall be subject to the pro-
visions of the said Article V.
Section 2.5 Form of the Series 1978 Bonds.
The Series 1978 bonds, the coupons applicable thereto,
and the registration certificate and authentication cer-
tificate thereon shall be in substantially the following
respective forms with appropriate changes to conform to
the provisions hereof:
4
r
No.
( Form of Bond)
UNITED STATES OF AMERICA
STATE OF ALABAMA
CITY OF FAIRHOPE
WATER, GAS AND SEWER REVENUE BOND
SERIES 1978
$5,000
On the 1st day of December, , for value re-
ceived, the City of Fairhope (herein called "the city"),
a municipal corporation under the laws of Alabama, hereby
promises to pay to the bearer hereof solely out of the
revenues hereinafter referred to, the sum of
F I V E T H O U S A N D D O L L A R S
with interest thereon from the date hereof until the ma-
turity hereof at the rate of % per annum, payable
semiannually on June 1 and December 1 in each year until
and at the maturity hereof upon surrender of the annexed
interest coupons as they severally mature. Both the
principal hereof and the interest hereon are payable in
lawful money of the United States of America at the prin-
cipal office of The Merchants National Bank of Mobile in
the City of Mobile in the State of Alabama.
This bond is one of a duly authorized issue of
bonds of the city issuable in series, designated Water,
Gas and Sewer Revenue Bonds (herein called "the bonds")
and issued under a Trust Indenture dated as of December
1, 1961 (herein called "the 1961 indenture"), between the
city and The Merchants National Bank of Mobile (herein
called "the trustee"), of Mobile, Alabama, as supple-
mented by two supplemental indentures between the city
and the trustee dated respectively as of December 1,
1972, and as of December 1, 1978 (the 1961 indenture, as
so supplemented, being herein called "the indenture").
The bonds are not limited in aggregate principal amount
except as provided in the indenture. The principal of
and the interest on the bonds are payable solely out of
the revenues derived from the operation of the city's wa-
ter works and sanitary sewer system and its natural gas
distribution system, as they may be presently or here-
after constituted (herein together called "the sys-
tems"), and are secured, pro rata and without priority of
one bond over another, by a valid pledge of said revenues
out of which they are payable. The indenture provides,
inter alia, that in the event of default by the city in
the manner and for the time therein provided, the trustee
may declare the principal of this bond as immediately due
and payable, whereupon the same shall thereupon become
immediately due and payable and the trustee shall be en-
titled to pursue the remedies provided in the indenture.
The series of the bonds of which this is one is
designated Series 1978, is authorized to be issued in the
5
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aggregate principal amount of $360,000, and consists of
bonds numbered from 1 to 72, inclusive. Those of the
bonds of this series having stated maturities in 1988 and
thereafter are subject to redemption and payment prior to
their respective maturities, at the option of the city,
on December 1, 1987, and on any interest payment date
thereafter, as a whole or in part and if in part then in
inverse numerical order of those of the bonds of this se-
ries at the time outstanding at and for the following re-
spective redemption prices for each bond redeemed (ex-
pressed in percentages of the principal amount thereof)
plus accrued interest thereon to the date fixed for re-
demption: 103% if the date fixed for redemption is in
1987 to 1989; 102% if the date fixed for redemption is in
1990 or 1991; and 101% if the date fixed for redemption
is in 1992 or thereafter. Prior notice of each such re-
demption must be given one time, at least thirty days be-
fore the date fixed for redemption, by publication in a
financial journal published in New York, New York and in
a newspaper published in Birmingham, Alabama.
The covenants and representations herein con-
tained or contained in the indenture do not and shall
never constitute a personal or pecuniary liability or
charge against the general credit of the city, and in the
event of breach of any such covenant or representation no
personal or pecuniary liability or charge payable di-
rectly or indirectly from the general revenues of the
city shall arise therefrom. No holder of the bonds or
the coupons shall ever have the right to compel the exer-
cise of the taxing power of the city for payment of the
principal of or the interest on the bonds, and this bond
does not constitute a debt of the city within any state
constitutional provision or statutory limitation.
The bonds are issued under the provisions of
Article 5 of Chapter 81 of Title 11 the Code of Alabama
of 1975, and an ordinance of the city duly adopted in
order to raise moneys for purposes for which bonds are
authorized to be issued under said article.
It is hereby certified that all conditions,
actions and things required by the constitution and laws
of Alabama to exist, be performed and happen precedent to
or in the issuance of this bond exist, have been per-
formed and have happened in due and legal form and that
provision has been made for the deposit in a separate
fund of revenues from the operation of the systems in
amounts sufficient to pay the principal of and the inter-
est on the bonds as said principal and interest shall re-
spectively mature.
The principal of and the interest on this bond
are exempt from any and all state, county and municipal
and other taxation whatsoever under the laws of the State
of Alabama.
The city hereby covenants that it will at all
times maintain such rates for water, gas and sanitary
sewer service furnished by the systems as shall be suf-
ficient to provide for payment of the principal of and
the interest on the bonds as the said principal and in-
terest become due, to create a bond and interest redemp-
tion fund therefor, to provide for the payment of the ex-
penses of administering and operating the systems and of
maintaining them in good repair and working order, to
build up a reserve for depreciation of the systems and to
build up a reserve for improvements, betterments and ex-
tensions to the systems, other than those necessary to
maintain them in good repair and working order as herein -
above provided.
Execution by the trustee of its authentication
certificate hereon is essential to the validity hereof
and is conclusive of the due issue hereof under the in-
denture.
IN WITNESS WHEREOF, the city has caused this
bond to be executed in its behalf by the manually written
signature of its Mayor and by a facsimile of the signa-
ture of its city clerk, has caused the seal of the city
to be reproduced hereon in facsimile, the said facsimile
signature of the said city clerk hereon to constitute at-
testation of this bond and of the said seal, has caused
the annexed interest coupons to be executed with the fac-
simile signatures of said Mayor and city clerk, and has
caused this bond to be dated December 1, 1978.
Attest:
City Clerk
CITY OF FAIRHOPE
By
Its Mayor
7
r. " •
(Form of Coupon)
Coupon
No.
On the 1st day of , 19 _, the
City of Fairhope, a municipal corporation in the State of
Alabama, will pay to the bearer hereof, solely out of the
revenues derived from the operation of its water works
and sanitary sewer system and its natural gas distribu-
tion system, upon surrender hereof at the principal of-
fice of The Merchants National Bank of Mobile in the City
of Mobile, Alabama Dollars in lawful
money of the United States of America, being interest
then due on its Water, Gas and Sewer Revenue Bond, Series
1978, dated December 1, 1978, No. .
Attest:
• CITY OF FAIRHOPE
City Clerk
By
Its Mayor
(Form of Trustee's Authentication Certificate)
The within bond is one of those described in
the within mentioned Trust Indenture.
THE MERCHANTS NATIONAL BANK OF MOBILE
By
Its Authorized Officer
Following the maturity of each of the bonds
having stated maturities in 1988 or thereafter, there
shall be inserted the following:
"(unless this bond shall have been
duly called for prior payment),"
Following the maturity date of each coupon due
on and after June 1, 1988, there shall be inserted the
following:
"(unless the bond to which this coupon is
applicable shall have been duly called
for prior payment),"
Section 2.6 Delivery of Series 1978 Bonds.
The Series 1978 bonds shall be forthwith executed and de-
livered to the trustee, and shall be certified and de-
livered by the trustee, upon receipt by the trustee of an
order signed in behalf of the city by its mayor request-
ing such certification and delivery and designating the
person or persons to receive the same or any part there-
of.
Section 2.7 Use of Proceeds from Series 1978
Bonds. The proceeds from the sale of the Series 197
bonds shall be used for the following purposes only and
in the following order:
(a) Payment into the bond fund of that part of
the proceeds from the sale of the Series 1978 bonds that
is referable to accrued interest and any premium thereon
as provided in Section 9.4 of the original indenture.
(b) Application of the principal proceeds (ex-
clusive of premium, if any) from the sale of the Series
1978 bonds to payment of the costs of making improvements
to and extensions to the water and sewer system.
ARTICLE III
AGREEMENT TO CONSTRUCT CAPITAL
IMPROVEMENTS AND AGREEMENTS
INCIDENTAL THERETO
Section 3.1 Construction of the Capital Im-
provements. The city will proceed continuously and with
reasonable dispatch with construction of certain capital
improvements to the water and sewer system substantially
in accordance with plans and specifications made there-
for, or to be prepared, by Moore Engineering Company of
Fairhope, Alabama, said capital improvements to consist
of the extension of certain water lines and the purchase
of certain existing distribution lines. The city will
complete the said construction and acquisition as soon as
may be practicable after the delivery of the Series 1978
bonds to the purchaser thereof from the city, delays
incident to strikes, riots, acts of God and the public
enemy and similar acts beyond the reasonable control of
the city only excepted. The city will promptly pay, as
and when due, all expenses incurred in and about the said
construction, and it will not suffer or permit any me-
chanics' or materialmen's liens which may be filed or
otherwise claimed or established upon or against the
water and sewer system, or any part thereof, and which
might be or become a lien superior to the lien of the in-
denture, as supplemented hereby, to remain unsatisfied and
undischarged for a period exceeding thirty days after the
filing or establishment thereof; provided, that the city
may in good faith contest any such mechanics' or mate-
rialmen's claims so filed or established and, in the
event that such lien claims are so contested to remain
unsatisfied and undischarged during the period of such
contest and any appeal therefrom, irrespective of whether
such period extends beyond the thirty day period after
the filing or establishment of such liens, unless by such
9
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action the trustee shall be of the opinion that the lien
of the original indenture, as supplemented hereby, to any
part of the water and sewer system shall be materially
endangered or that the water and sewer system shall be
subject to loss or forfeiture, in which event such me-
chanics' or materialmen's liens shall be satisfied prior
to the expiration of the said thirty day period.
Section 3.2 Surety Bonds. If the city shall
enter into a contract with a contractor for the construc-
tion of any portion of the capital improvements provided
for in Section 3.1 hereof, whenever it shall enter into
such contract for any such construction the city will
cause such contractor to deposit with the trustee a sure-
ty bond or surety bonds in an amount or amounts not less
than the amount of each such contract, which surety bond
or surety bonds shall be executed by a surety company au-
thorized to do business in the State of Alabama and shall
guarantee the performance of such contract and the pay-
ment of all bills incurred thereunder for materials and
labor. Each such surety bond shall designate as the ob-
ligees thereunder the city and the trustee, as their re-
spective interest may appear; provided, that any such
surety bond may designate only the city as the obligee
thereunder as such surety bond shall be duly assigned by
the city to the trustee.
Section 3.3 Trustee Not Liable With Respect to
Construction Contract, Surety Bonds, or Construction.
Nothing contained in the original indenture or in this
supplemental indenture shall impose on the trustee any
duty or liability with respect to the appropriateness or
sufficiency of any contract for the construction provided
for in Section 3.1 hereof, or any surety bond required by
Section 3.2 hereof, or with respect to the completion of
the said construction.
ARTICLE IV
STATEMENT OF AMOUNT OF MAXIMUM
REQUIRED RESERVE AND AGREEMENTS
FOR PAYMENTS INTO THE RESERVE FUND
Section 4.1 Determination of the Maximum Re-
quired Reserve. The maximum required reserve in effect
immediately prior to the issuance of any of the Series
1978 bonds that may be issued is $145,847.50. Pursuant
to the requirements of the third sentence of Section 9.6
of the original indenture, the city has caused to be com-
puted, and the city does hereby determine, that the
amount of the maximum required reserve that will be ap-
plicable immediately following the issuance of the Series
1978 bonds will be $ , that being the maximum
amount of the annual debt service requirements with re-
spect to all of the bonds issued under the original in-
denture and authorized to be issued under this supplemen-
tal indenture that will be outstanding as of any partic-
ular time.
Section 4.2 Payments Into the Reserve Fund.
From and after the date of the delivery of the first of
10
the Series 1978 bonds that may be issued, the city agrees
to pay into the reserve fund the monthly payments re-
ferred to in the said Section 9.6 of the original inden-
ture, such payments to be made at the respective times
and in the respective amounts specified in said section.
All provisions of the said Section 9.6 of the original
indenture shall continue applicable with respect to the
reserve fund.
ARTICLE V
REPRESENTATIONS OF THE CITY AND
CONFIRMATION OF THE ORIGINAL
INDENTURE AS SUPPLEMENTED HEREBY
Section 5.1 Warranties and Representations
Respecting Title to the Systems and Outstanding Pledges
and Agreements. The city warrants its title to the water
and sewer system and the gas system as they presently
exist to be free and clear of every lien, encumbrance or
charge prior hereto, except prior pledges and agreements
with respect to revenues from the water and sewer system
that are set forth in (i) a mortgage and deed of trust
made by The Water Works and Sewer Board of the City of
Fairhope to The Merchants National Bank of Mobile dated
July 1, 1950 (defined in the original indenture as the
underlying 1950 water and sewer indenture) securing the
said Board's Water and Sewer Revenue Bonds dated July 1,
1950, assumed by the city and now outstanding in the ag-
gregate principal amount of $24,000, (ii) a mortgage and
deed of trust made by the said Board to the said bank
dated July 1, 1953 (defined in the original indenture as
the underlying 1953 indenture) securing the said Board's
Water and Sewer Revenue Bonds, Second Series, dated July
1, 1953, assumed by the city and now outstanding in the
aggregate principal amount of $85,000, and (iii) an
agreement between the city and Alabama Pollution Control
Finance Authority dated January 1, 1973.
Section 5.2 Confirmation of Original Inden-
ture. All of the terms, covenants and conditions of the
original indenture, as supplemented by the supplemental
indenture pertaining to the Series 1972 bonds and this
supplemental indenture, are hereby in all things con-
firmed, and as so supplemented they shall remain in full
force and effect.
IN WITNESS WHEREOF, the city has caused these
presents to be executed in its corporate name and in its
behalf by its mayor and has caused its corporate seal to
be hereunto affixed and attested by its city clerk, and
the trustee, in order to evidence its acceptance of the
trusts hereby created, has caused these presents to be
executed in its corporate name and in its behalf and its
corporate seal to be hereunto affixed and attested by its
11
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officers whose signatures appear hereunder, all of whom
are hereunto duly authorized by proper corporate action,
all in five counterparts, each of which shall be deemed
an original, and has caused this instrument to be dated
the 1st day of December, 1978.
Attest:
Attest:
Its
Its City Clerk
CITY OF FAIRHOPE
By
Its Mayor
THE MERCHANTS NATIONAL BANK OF MOBILE
By
Its
12
v
STATE OF ALABAMA )
COUNTY OF )
I, , a Notary Public
in and for said county in said state, hereby certify that
, whose name as Mayor of the City of
Fairhope, a municipal corporation under the laws of Ala-
bama, is signed to the foregoing instrument and who is
known to me, acknowledged before me on this day that, be-
ing informed of the contents of the said instrument, he,
as such officer and with full authority, executed the
same voluntarily for and as the act of the said corpora-
tion.
Given under my hand and official seal of office
this day of , 1978
Notary Public
STATE OF ALABAMA )
COUNTY OF )
I, , a Notary Public
in and for said county in said state, hereby certify that
, whose name as of
The Merchants National Bank of Mobile, a national banking
association, is signed to the foregoing instrument and
who is known to me, acknowledged before me on this day
that, being informed of the contents of the said instru-
ment, he, as such officer and with full authority, exe-
cuted the same voluntaily for and as the act of the said
association.
Given under my hand and official seal of office
this day of , 1978.
Notary Public
13