HomeMy WebLinkAbout05-24-1937 Regular MeetingSTATE OF ALAABAMA . )
COUNTY OF BALDWIN. )
The Town Council of the Town of Fairhope, County of
Baldwin, Alabama, met in regular session at the Town Hall in the
Town of Fairhope, Alabama, at 7 otclock P. M., on the 24th day of
May, 1937, when and where the following members were present;
Howard Ruge, Mayor; C. A. Gaston, H. P. Kamper, Sam Dyson, J. 0.
Stimpson, M. 0. Berglin, Councilmen, the same constituting the
full membership of the Town Council.
The following Ordinance No. 144 and entitled;
"AN ORDINANCE TO AUTHORIZE THE ISSUANCE AND SALE OF
TWENTY-TWO THOUSAND DOLLARS ($22,000.00) OF NOTES
OF THE TOWN OF FAIRHOPW FOR THE PURPOSE OF PAYING
THE COST OF PURCHASE AND INSTALLATION OF ONE 225
HP FAIRBANKS-NDRSE MODEL 32E14 DIESEL GENERATING
SET AND EQUIPMENT, AND TO AUTHORIZE THE EXECUTION
AND DELIVERY OF A MORTGAGE ON THE SAID EQUIPM;NT
AND BUILDINGS HOUSING THE SAME TO THE FIRST NATION-
AL BANK OF MOBILE, AS TRUSTEE, TO SECURE PAYMENT OF
THE SAID NOTES AND TO PLEDGE THE NET EARNINGS OF
THE SAID EQUIPMENT FOR THE PAYMENT OF THE SAID
NOTES, PRINCIPAL AND INTEREST, WHEN AND AS THE SAME
SHALL BECOME DUE, AND IF SUCH NET REVENUE SHALL NOT
BE SUFFICIENT TO PAY THE SAME, 'THEN TO PLEDGE A
SUFFICIENT AUNT OF THE NET EARNINGS OF THE FAIR -
HOPE ELECTRIC LIGHT & POWER SYSTEM PREVIOUSLY OWNED
TO THE PAYMENT OF THE SAID NOTES, PRINCIPAL AND IN-
TEREST, WHEN AND AS THE SAME SHALL BECOME DUE."
was introduced by C. A. Gaston, read in full by the Clerk and con-
sidered by the Council, said ordinance being as follows;
i
ORDINANCE NO. 144
AN ORDINANCE TO AUTHORIZE THE ISSUANCE AND SALE OF
TWENTY-TWO THOUSAND DOLLARS ($22,000.00) OF NOTES
OF THE TOWN OF FAIRHOPE FOR THE PURPOSE OF PAYING
THE COST OF PURCHASE AND INSTALLATION OF ONE 225
EP FAIRBANKS-MORSE MODEL 32E14 DIESEL GENERATING
SET AND EQUIPMENT, AND TO AUTHORIZE THE EXECUTION
AND DELIVERY OF A MORTGAGE ON THE SAID EQUIPMENT .
AND BUILDINGS HOUSING THE SAME TO THE FIRST NATION-
AL BANK OF NOBILB, AS TRUSTEE, TO SECURE PAYMENT OF
THE SAID NOTES AND TO PLEDGE THE NET EARNINGS OF
THE SAID EQUIPMENT FOR THE PAYMENT OF THE SAID
NOTES, PRINCIPAL AND INTEREST, WHEN AND AS THE SAME
SHALL BECOME DUE, AIM IF SUCH NET REVENUE SHALL NOT
BE SUFFICIENT TO PAY THE SAME, THEN TO PLEDGE A
SUFFICIENT AMOUNT OF THE NET EARNINGS OF THE FAIR -
HOPE ELECTRIC LIGHT & POWER SYSTEM PREVIOUSLY OWNED
TO THE PAYMENT OF THE SAID NOTES, PRINCIPAL AND IN-
TEREST, WHEN AND AS THE SAME SHALL BECOME DUE.
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF FAIT
HOPE AS FOLLOWS;
2
2
Section 1. That the generating equipment of the munici-
pal light and power system of the Town of Fairhope being inadequate
for the demands thereon, said Town of Fairhope, acting through and
by its duly constituted officers, did heretofore purchase equipment
for the same from the Fairbanks -Morse Company, and did enter into a
contract with them to pay therefor the sum of $18,896.00, and did
also incur expenses in the installation and housing of the said
equipment in the sum of $3,104,009 the said additional equipment
consisting of the following described machinery:
One 225 HP Fairbanks -Morse Model 32E14 Diesel Generating
Set and equipment.
The said equipment having been installed and housed in such manner
as to constitute a complete separate unit from the other generating
equipment previously owned by the said Town of Fairhope, so that the
same can and will be operated as a separate unit in the production of
electric energy and so that the earnings from the said unit can and
will be kept separate from the earnings from the equipment previously
owned by the Town of Fairhope, the Town of Fairhope is authorized and
empowered to borrow money for the purpose of paying for the said
equipment and the said installation and housing and to secure the
same by a mortgage on the said property and to pledge the net re-
ceipts from the operation of the said property and to pledge separ-
ately the net receipts from the operation of that part of the said
system previously owned by said town. The town, after the issuance
of the notes hereinafter authorized, being well within its consti-
tutional debt limit.
Section 2. That for the purpose of defraying the cost of
the purchase, installation and housing of the aforesaid generating
equipment purchased from Fairbanks -Morse Company as aforesaid, there
be and is hereby authorized to be issued and sold forty (40) notes
of the Town of Fairhope, each in the sum of $550,00, payable to
bearer,,and to bear interest at the rate of 5% per annum, payable
on the lst day of December, 1937, and semi-annually thereafter on
the lst day of June and December of each year, and to be numbered
and maturing in amounts as follows:
Notes 1.2.3.40 each in the sum of 550,009 due on June 1, 1938;
" 59697,8, ++ " " ++ +' 1550.009 " " June 1, 1939;
++ 99109119129 " +' " " " 550,000 " " June 191940;
n 13,14,159161 " " " " " 550,009 " " June 1, 1941;
" 17,18,19920, " " " +' +' 550.00, " " .Tune 19 1942;
+* 21,229230249 " " " +' " 550,009 " " June 19 1943;
" 25926927,289 " +' " " " 550.009 +' " June 10 19";
" 29930,319329 " " " " " 550,009 " " June 19 1945;
n 33,349359360 " " " " " 550.00, +' " June 19 1946;
+� 379389399409 " " " " " 1550,000 " " June 19 1947.
That such notes shall be executed by the Mayor in the name of the
Town of Fairhope and shall be attested by the Clerk of the Town of
Fairhope and shall bear the seal of the Town of Fairhope. There
shall be attached to each note, coupons bearing the fac simile sig-
nature of the Mayor for the interest on the said notes. The said
note and the coupon attached thereto shall be substantially in
words and figures as follows:
$550.00 Fairhope, Ala., June 1, 1937.
On or before lst day of June, 194• , after date, without
grace, the Town of Fairhope promises to pay to the order of bearer
the sum of Five Hundred Fifty Dollars ($550.00) for value received,
in any coin or currency which on the date of payment hereof is le-
gal tender for the payment of public and private debts, with inter-
est from date at the rate of 5% per annum, interest payable on the
lst day of December, 1937, and semi-annually thereafter on the lst
day of June and December of each year thereafter, interest evidenced
� g�
3
by coupon hereto attached, payable at the First National Bank of
Mobile.
The parties to this instrument, whether maker, endorser,
surety or guarantor, each for himself, hereby severally waive as to
this debt or any renewal thereof, all right to exemption under the
Constitution and Laws of Alabama, as to personal property, and they
each severally agree to pay all costs of collecting, or securing, or
attempting to collect or secure this note, including a reasonable
attorneys fee, whether the same be collected or secured by suit or
otherwise. And the maker, endorser, surety or guarantor, of this
note, severally waives demand, presentment, protest, notice of pro-
test, suit and all other requirements necessary to hold them, and
they agree that time of payment may be extended without notice to
them of such extension. The bank at which this note is payable is
hereby authorized to apply on or after maturity, to the payment of
this debt any funds in said bank belonging to the maker, surety,
endorser, guarantor, or any one of them, deposited therein for the
purpose of paying this note.
This note is one of a series of fort (40) notes, each in
the sum of Five Hundred Fifty Dollars ($550.00T, this day issued by
the Town of Fairhope under Ordinance No. 144 adopted on the 24th day
of May, 1937, for the purpose of defraying the cost of purchasing,
installation and housing electric light and power generating equip-
ment and is secured equally without preference one over the other
by a first mortgage on the said property executed and delivered by
the Town of Fairhope to the First National Bank of Mobile, as Trus-
tee, for the benefit of the holders of the said notes, and is pay-
able only, but equally without preference one over the other, out
of the net earnings from the said generating equipment, and also
only, but equally without preference one over the other, out of
the net earnings from the entire Fairhope electric light and power
system owned prior to the date of this instrument.
In Witness Whereof, the Town of Fairhope has caused these
presents to be executed in its name by the Mayor of the Town of Fair -
hope, and the same to be attested by the Clerk of the said Town, and
the corporate seal of the Town of Fairhope to be hereto affixed, on
this the 1st day of June, 1937,
TOWN OF FAIRHOPE, ALABAMA,
Att e By
sMayor*
. GyyL/
s er
No.
On the day of 19 , the Town of
Fairhope will pay to bearer the sum of ;teen and 75/100 Dollars
($13.75) in any coin or currency which is then legal tender for the
payment of public and private debts, at the First National Bank in
Mobile, Alabama, out of the special fund set up under Ordinance No.
144 adopted by the Town of Fairhope on the 24th day of May, 1937,
being interest then due on note No. issued under authority
of the said ordinance and secured by a rst mortgage to the First
National Bank of Mobile, as Trustee, under the aforesaid ordinance.
Mayor*
Section 3. That to secure the aforesaid notes there is
hereby authorized to be executed and delivered to the First National
Bank of Mobile, as Trustee, a first mortgage on the property herein-
after described, which said mortgage shall be dated the 1st day of
June, 1937, and executed by the Mayor in the name of the Town of
Fairhope, attested by the Clerk of the Town of Fairhope, and shall
be substantially in words and figures as follows:
N
KNOW ALL MEN BY THESE PRESENTS, that the Town of Fair -
hope has, under authority of an ordinance duly adopted by the Town
Council of the Town of Fairhope on the 24th day of May, 1937s and
numbered 144, issued forty (40) notes, each in the sum of Five Hund-
red Fifty Dollars ($550.00), numbered 1 to 40, both inclusive, dat-
ed the lst day of June, 1937, payable to bearer at the First Nation-
al Bank of Mobile, Mobile, Alabama, with interest at 5% per annum,
interest payable on the lst day of December, 1937, and semi-annually
thereafter on the lst day of June and December of each year, with
coupons attached thereto, evidencing the interest on the said notes,
which said notes are in the following form;
550.00 Fairhope, Ala., June 1, 1937s
On or before lst day of June, 19..,, after date, without
grace, the Town of Fairhope promises to pay to the order of bearer -
the sum of Five Hundred Fifty Dollars ($550.00) for value received,
in any coin or currency which on the date of payment hereof is legal
tender for the payment of public and private debts, with interest
from date at the rate of 5% per annum, interest payable on the lst
day of December, 1937, and semi-annually thereafter on the lst day
of June and December of each year thereafter, interest evidenced by
coupon hereto attached, payable at the First National Bank of Mobile.
The parties to this instrument, whether maker, endorser,
surety or guarantor, each for himself, hereby severally waive us to
this debt, or any renewal thereof, all right to exemption under the
Constitution and haws of Alabama, as to personal property, and they
each severally agree to pay all costs of collecting, or securing, or
attempting to collect or secure this note, including a reasonable
attorney's fee, whether the same be collected or secured by suit or
otherwise. And the maker, endorser, surety or guarantor, of this
note, severally waives demand, presentment, protest, notice of pro-
test, suit and all other requirements necessary to hold them, and
they agree that time of payment may be extended without notice to
them of -such extension. The bank at which this note is payable is
hereby authorized to apply on or after maturity, to the payment of
this debt, any funds in said bank belonging to the maker, surety,
endorser, guarantor, or any one of them, deposited therein for the
purpose of paying this note.
This note is one of a series oP forty (40) notes, each
in the sum of Five Hundred Fifty Dollars ($550.00), this day issued
by the Town of Fairhope under Ordinance No. 144 adopted on the 24th
day of May, 1937, for the purpose of defraying the cost of purchas-
ing, installation and housing electric light and power generating
equipment and is secured equally without preference one over the
other by a first mortgage on the said property executed and de-
livered by the Town of Fairhope to the First National Bank of Mo-
bile, as Trustee, for the benefit of the holders of the said notes,
and is payable only, but equally without preference one over the
other, out of the net earnings from the said generating equipment
and also only, but equally without preference one over the other,
out of the net earnings from the entire Fairhope electric light
and power system owned prior to the date of this instrument.
In'Witness Whereof, the Town of Fairhope has caused these
presents to be executed in its name by the Mayor of the Town of
Fairhope, and the same to be attested by the Clerk of the said Town,
and the corporate seal of the Town of Fairhope to be hereto affixed,
on this the lst day of June, 1937.
Attest
a W
IsClerk;-
TORN OF FAIRHOPE9 ALABAMA,
By
sMayor*
5
No.
On the day of , 19 , the Town of
Fairhope will pay to bearer the sum of Thirteen and 75/100 Dollars
($13.75) in any coin or currency which is then legal tender for the
payment of public and private debts, at the First National Bank in
Mobile, Alabama, out of the special fund set up under Ordinance No.
1" adopted by the Town of Fairhope on the 24th day of My, 19379
being interest then due on note No, issued under authority
of the said ordinance and secured by`a rst mortgage to the First
National Bank of Mobile, as Trustee, under the aforesaid ordinance.
Mayor.
And which said notes are numbered and mature in amounts as follows:
Notes 1.2.3.4. each in the sum of 50.00, due on June 1, 1938;
It5,6,7,8, � " It � a r50.00, " t' June 1, 1939;
9,10,11,12, It50.00, It June 10 1940;
a 139149159160 Ita It550.00, n It June 10 1941;
It17,18,19,20, "' Itn n n 550.00, Itn June 19 1942;
� 219220239249 " It 550.00, It It June 10 1943;
n 259260279289 " It It " 550.009 It It June 19 1944;
� 29,30931,32, It a n it n 550.009 IN+' June 19 1945;
n 33934,35,369 n It It n n 550.000 It It June 10 1946;
n 37938,399409 n 550.00, � It Tune 19 1947;
and that the Town of Fairhope desires to secure the same;
NOW THEREFORE, in consideration of the premises and of
the sum of Five Dollars ($5.00) to it in hand paid by the First
National Bank of Mobile, as Trustee, the Town of Fairhope does
hereby GRANT, BARGAIN, SELL and CONVEY unto the FIRST NATIONAL
BANK of Mobile, as Trustee, the following described property, to -
wit:
One 225 HP Fairbanks -Morse Model 32E14 Diesel Generating
Set and equipment;
Commencing at the Southwest corner of Lot 4 in Block 5
of Division 4 of the Fairhope Single Tax Corporation
property in the Town of Fairhope, as per plat thereof
filed for record in the office of the Judge of Probate
of Baldwin County, Alabama, do September 13, 1911; run
thence East along the South line of the said lot 10 feet
to the East side of Section Street, as now constructed
and maintained; thence East along the said South line of
said lot 16.8 feet to the Southwest corner of building
owned by the Town of Fairhope; thence North along the
West line of the said building 24 feet to the Northwest
corner of said building; thence East 23* ft. for a be -
corner; thence East 14 ft.; thence North 28 ft,
3 in.; thence West 14 ft.; thence South 28 ft. 4 in.
to the point of beginning.
TO HAVE AND TO HOLD unto the said FIRST NATIONAL BANK of
Mobile, as Trustee, its successors and assigns. And the said Town
of Fairhope does for itself, its successors,and assigns, covenant
with the said First National Bank of Mobile, as Trustee, its suc-
cessors and assigns, that it is lawfully seized in fee simple of
said premises; that they are free from all encumbrances and that
it has a good right to sell and convey the same as aforesaid; that
it is in the quiet and peaceable possession of the same; that it
will and its successors and assigns, shall warrant and defend the
same to the said First National Bank of Mobile, us Trustee, its
successors and assigns, forever, against the lawful claims of all
persons.
r
R
The intent and purpose of this instrument is to secure
the payment of the notes above described equally without preference
one over the other when and as the same shall become due, principal
and interest, and the said Town of Fairhope does hereby covenant and
agree with the said First National Bank of Mobile, Trustee, and with
the holders of the aforesaid notes, that it will keep the aforesaid
property insured against loss or damage by fire for the full insur-
able value thereof, with loss, if any, payable to the said First
National Bank of Mobile, as Trustee, for the benefit of the holders
of the aforesaid notes, and that it will also keep the said property
insured against storm in a sum not less than fifty per cent. (50%)
of the value thereof, with loss, if any, payable to the said First
National Bank of Mobile, as Trustee, for the benefit of the holders
of the said notes.
The Town of Fairhope does further contract and agree with
the said First National Bank of Mobile, as Trustee, and with the hold-
ers of the said notes, that it will keep the earnings from the proper-
ty herein described and conveyed separate from the earnings of the
electric light and power system owned prior to the acquisition of
the aforesaid property, and after deducting the cost of operating,
maintaining and repairing the same, will apply such net earnings to
the payment of the aforesaid notes, principal and interest, equally
without preference one over the other, and for this purpose will de-
posit the same in the First National Bank of Mobile, as Trustee, for
the purpose of paying the said notes, principal and interest, as
aforesaid, when and as the same shall become due, and this instrument
does hereby authorize the said First National Bank of Mobile to pay
the said notes, principal and interest, when and as the same shall
become due out of and only out of any funds deposited with it for the
purpose of paying the aforesaid notes, principal and interest.
In the event the net earnings from the aforesaid property
shall be insufficient to pay the said notes, principal and interest,
when and as the same shall become due, then the said Town of Fair -
hope does further contract and agree that it will apply so much of
the net earnings from the light and power system owned previous to
the purchase of the aforesaid property as shall be necessary to make
up any such deficit from the net earnings of the property hereinabove
described.
It is expressly understood and agreed, however, that no part
of the general fund of the Town of Fairhope, or of any special fund
raised by taxes or otherwise for specific purposes, shall ever be
chargeable with the payment of the notes above described, or with any
expenses or disbursements incurred or made by said Trustee, or any
holder or holders of any of said notes, pursuant or incident to any
of the provisions hereof, it being the intent and purpose, agreement
and understanding between the Town of Fairhope, the First National
Bank of Mobile, as Trustee, and the holders of the said notes that
the same shall be paid only out of the net earnings from the property
hereinabove described if the net earnings shall be sufficient to pay
the same, and if the net earnings shall not -be sufficient to pay the
same, then any deficit shall be paid only out of the net earnings of
the light and power system owned by the Town of Fairhope prior to the
acquisition of the aforesaid property.
PROVIDED ALWAYS, and these presents are upon the express
condition that if the said Town of Fairhope shall well and truly pay
the aforesaid notes, principal and interest, when and as the same
shall become due, then these presents shall cease, determine and be
null and void, otherwise to remain in full force and effect.
But in the event the said Town of Fairhope shall be and be-
come in default in the payment of the said notes, or any one'of them,
principal or interest, for the period of ninety (90) days, then the
owner or holder of the said notes so in default may at his option,
by written request addressed to the First National Bank of Mobile,
as Trustee, and to the Town of Fairhope, require the First National
7
Bank of Mobile, as Trustee, to sell the property hereinabove de-
scribed at public outcry, for cash, to the highest bidder, during
the legal hours of sale, in front of the court house door of Bald-
win County, Alabama, after giving notice of the time, place and
terms of sale, by publication once a week for eight (8) consecutive
weeks in any newspaper published in Baldwin County, Alabama, and the
proceeds to apply, first, to the costs of sale, including a reason-
able attorneys s fee, then to the notes hereby secured equally and
pro -ratably without preference one over the other, whether the same
be due or not, and any balance to pay over to the Town of Fairhope,
The First National Bank of Mobile, as Trustee, its agent or attor-
ney, is authorized to conduct any sale held hereunder and to make
conveyance to the purchaser in the name of the Town of Fairhope, as
its attorney in fact, and any and all things lawfully done in the
premises the Town of Fairhope hereby ratifies and confirms. The
said First National Bank of Mobile, individually or as Trustee, or
all or any one or more of the holders of the said notes may bid and
purchase at any sale held hereunder as though a stranger to this in-
strument. It shall not be necessary to have the aforesaid property
at the place of sale,
If at any time before the actual sale of the property un-
der the powers above given the Town of Fairhope shall pay the note.
or notes in default, principal and interest, then such foreclosure
proceedings shall thereby be stayed, but a foreclosure may be had
for any subsequent default or defaults.
If the town shall not insure the property as herein pro-
vided, the said First National Bank of Mobile, as Trustee, at the
request of the holder of any one of the said notes, shall, without
notice to the Town of Fairhope, proceed to sell the property herein -
above described under the powers herein given, but in the event in-
surance shall be taken out and policy delivered to the First Nation-
al Bank, as Trustee, before the date of sale, then the sale shall
be stayed.
Except as herein expressly provided to the contrary, no
remedy or right herein conferred upon or reserved to the Trustee or
note holders is intended to be exclusive of any other right or remedy,
but each and every right or remedy shall be emulative and shall be
in addition to every other remedy or right given hereunder and now
or hereafter existing in law or in equity. No delay or omission
to exercise any remedy or right accruing on default shall impair
any such right or remedy, or shall be construed to be a waiver of
any such default or acquiescence therein, nor shall it affect any
subsequent default of the same oll whatever nature, but every such
remedy or right may be exercised from time to time and as often us
deemed expedient by the holder of the notes secured hereby. In case
of any suit or proceeding in any way affecting or relating to the
property herein conveyed, wherein the Trustee or note holders shall
be a party or parties, reasonable costs and charges, including at-
torneyss fees, in and about said suit or proceeding shall be allowed
to the Trustee and note holders and charged as cost in such proceed-
ings, and shall be a further charge and lien upon the aforesaid prop-
erty and secured hereby.
The Trustee shall be under no obligation to recognize any
person, firm or corporation as a holder or owner of any of the notes
secured hereby unless and until the note claimed to be owned is pro-
duced to the Trustee. Said Trustee shall not be answerable for any
default or misconduct of any agent or attorney employed by it in and
about the execution of this trust, if such agent or attorney shall
have been selected with reasonable care, or for anything whatever
in connection with this trust, except wilful misconduct or gross
negligence, itself or its employee or attorneys. It shall be under
no obligation to take any action toward the execution or enforcement
of any trust hereby created, which in its opinion shall be likely to
involve it in any expense or liability, unless one or more of the
ff
holders of the notes hereby secured shall, as often as requested by
the Trustee, pay said Trustee such expenses or the amount of such
liability, or furnish it satisfactory indemnity against such expense
or liability, nor to defend any suit or proceeding brought against it
by reason of its being Trustee hereunder unless indemnity satisfactory
to it is furnished by the Town of Fairhope or the holders of the notes
secured hereby.
The Trustee shall be entitled to be reimbursed for any
and all proper outlay of every sort and nature by it incurred in
the discharge of this trust, or in defense of any suit or proceed-
ing brought against it as Trustee hereunder, and to receive a reas-
onable compensation for any duty that it may perform at any time in
the discharge of this trust, or in the defense of such proceedings,
and all such fees, compensation and disbursements, including reason-
able attorneys fees, shall constitute a first lien on the property
above described and secured hereby. In every case in which notice
or request is required by this instrument to be given, such notice
or request, if addressed to the party to whom notice is required to
be given, shall be sufficient.
x The First National Bank of Mobile, as Trustee, will re-
ceive such funds as the Town of Fairhope is required hereunder to
deposit with it for the payment of the aforesaid notes, principal
and interest, and will apply the same to the payment of the said
notes, principal and interest, when and as the same shall become
due, but it shall be in no manner held liable beyond the funds so
deposited with it, it being expressly understood and agreed that it
shall not be responsible for the failure on the part of the Town of
Fairhope to deposit any funds with it.
IN WITNESS WHEREOF, the Town of Fairhope has caused these
presents to be executed by Howard Ruge, its Mayor, and attested by
George Morgans, its Clerk, and its corporate seal to be hereto at-
tached, on this the 1st day of June, 1937.
TO RHOPE, ALABAMk*
By
Its Mayor,
1,
And shall be acknowledged in the form prescribed by law.
..Section 4. That the Town of Fairhope will and its of-
ficers and employes are hereby directed and required to keep the
net earnings from the property herein described separate from the
net earnings of the municipal light and power system owned by the
town previous to the acquisition of the property described in this
ordinance, and to apply the same to the payment of the notes issued
under authority of this ordinance, principal �,nd interest, when and
as the same shall become due, and for this purpose shall deposit the
same from time to time with the First National Bank of Mobile, as
Trustee.
Section 5. That in the event the net earnings from the
property described in this ordinance shall be insufficient to pay
the notes issued hereunder when and as the same shall become due,
principal and interest, then the said Town of Fairhope hereby
pledges that it will apply to the payment of said notes out of the
net earnings of the municipal light and power system owned by the
Town prior to the acquisition of the property described in this or-
dinance, such sum as shall be necessary to make up any such deficit
in the payment of said notes, principal and interest.
Section 6. The Mayor and the Town Clerk are authorized,
empowered and directed to execute the notes and mortgage securing
the same herein provided for, and to sell the aforesaid notes at
not less than par, and to apply the proceeds thereof to the payment
of the purchase price of the aforesaid property and to the cost of
installation and housing of the same, and to the cost of drafting,
printing, issuing and selling said notes, and if there shall remain
any surplus over and above the amount necessary to pay the purchase
price, installation and housing, such surplus shall be deposited in
the First National Bank of Mobile, as Trustee, to be used in the pay-
ment of the said notes, principal and interest, when and as the same
shall become due.
Section 7. The sections and provisions of this ordinance
are severable, and if any section or provision of this ordinance or
of the instruments issued hereunder shall be held invalid, it shall
not invalidate the remaining sections and provisions if sufficient
thereof shall remain to effect the purpose of this ordinance.
Section S. The Town of Fairhope covenants and agrees
with the holders of the notes issued hereunder that it will operate
the said generating equipment described in the mortgage authorized
to be executed hereby in an efficient and economic manner, and that
it will charge such rates for the energy thereby generated that the
net earnings therefrom will be sufficient to pay the said notes when
and as they shall become due. In the event it shall not so oper-
ate the same and charge such rates, the holder of any one of said
notes in default may apply to a court of competent jurisdiction for
the appointment of a receiver, who shall take over the same and oper-
ate such generating equipment for the benefit of the holders of said
notes until such time as the same shall be paid in full. The pro-
visions of this section shall not be construed to give any such re-
ceiver possession, authority or jurisdiction over any property or
equipment not covered by said mortgage,
Section 9. This ordinance shall be known and may be
cited as "GENERATING EQUIPMENT PURCHASE WRTGAGE ORDINANCE NO, 1449
APPROVED MAY 249 1937".
Approved this May 24, 1937.
Att
�U ,lid Mayor. -
C er
It was moved by Sam Dyson and seconded by H. P. Kamper,
that all rules of the Town Council of the Town of Fairhope, Alabama,
and of the statutes made and provided, which might prevent, unless
suspended, the final passage and adoption of said ordinance at this
meeting, be and the same are hereby suspended for the purpose of per.
mitting the final passage and adoption of said ordinance at this
meeting.
The question being upon the adoption of said motion and
the suspension of such rules, the roll was called with the follow-
ing results:
AYES: Howard Ruge, Mayor; C. A. Gaston, H. P. Kamper, Sam
Dyson, 1. 0. Stimpson, M. 0. Berglin, Councilmen,
NAYS: None.
10
The Mayor declared said motion carried and such rules
suspended.
Councilman C. A. Gaston then moved that the said ordinance
be now placed upon its final passage. Councilman J. 0. Stimpson
seconded the motion.
The question being put upon the placing of said ordin-
ance upo# its final passage, the roll was called with the following
results:
AYES: Howard Ruge, Mayor; C. A. Gaston, H. P. Kamper, Sam
Dyson, J. 0. Stimpson, M. 0. Berglin, Councilmen.
NAYS: None.
The Mayor declared the motion carried.
Councilman M. 0. Berglin thereupon moved that the said
ordinance be finally passed and adopted as introduced. Councilman
Sam Dyson seconded the motion.
The question being put upon the final passage and adop-
tion of said ordinance, the roll was called with the following re -
cults:
AYES: Howard Ruge, Mayor; C. A. Gaston, H. P. Kamper, Sam
Dyson, J. 0. Stimpson, M. 0. Berglin, Councilmen,
NAYS: None,
The Mayor thereupon declared said motion carried and the
ordinance finally passed and adopted.
thereof.
read.
The Mayor thereupon signed said ordinance in approval
The minutes of the previous meeting were approved as
It was moved by M. 0. Berglin and seconded by H. P.
Ka.mper that the Town Hall Office. close at noon durning the months
of June, July, and August on Thursday. Motion carried.
It was moved by C. A. Gaston seconded by J. 0. Stimpson
r
that the application made, by Thos.. P. King to erect a summer s
house in the park opposite the Cobb Recreation House be denied.
Motion carried.
lI
It was moved by C.A.Gaston that Sheldon Keller be hired
at $ 65.00 per month as assistant lineman. It was seconded by
Sam Dyson. Motion Carried.
It was moved by M. 0. Berglin and seconded by H. P. Kamper
that E. D. Swift salary be $ 55.00 per month commencing 15th of
May. Motion carried.
Meeting adjourned.
Atie : Mayor
G�✓t�
C l e
27`{