HomeMy WebLinkAbout06-28-1937 Regular MeetingSTATE OF ALABAMA
COUNTY OF BALDWIN
The Town Council of the Town of Fairhope, County of B
Baldwin,, Alabama, met in regular session at the Town Hall at
7:30 o'clock r. M. , on the 28th day of June-, 19379 when and
where the following members were present, to -wit: Howard Ruge,
Mayor, M. 0. Berglin, Sam Dyson, C. A. Gaston, H. F. Pamper
and-J. 0. Stimpson, the same constituting the full membership
of the !own C ounc i lrt.--.
The minutes of the previous meeting, held June 14th ,
1937, were need.
A motion was made by Councilman C. A. Gaston, seconded
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by Councilman J. 0 Stimpson, that the minutes of the previous
meeting be corrected to read and show the Fuel Oil Supply Co.
of Fairhope, quoted a price of 5.15 per gallon on -:'the 32 - 36
gravity oil now in use and of the 419 on 28 - 30 gravity and
that the gulf Coast Oil Company of De Funiak Springs, Fla.
quoted a price of 5.225 on the 32 - 36 gravity.
Motion carried.
The following resolution was introduced by Councilman
C. A. Gaston, who moved its adoption, the same being read. The
Motion was seconded b,5 Councilman M. 0. Berglin. The resolution
being put upon its passage, was unanimously adopted.
WHEREAS, under Ordinance No. 144 the Mayor and Clerk
of this Town were authorized and directed to executeda trust
deed substantially in the form set out in the said Ordinance
No. 144, and to meet the approval of the purposed purchases of t.
the notes and of the trust therein, the Kayor and the Clerk
executed said trust deed in substantially the form set out in
the said ordinance, adding thereto in the part of the said deed
of trust providing that, in the event of foreclosure, notice of
foreclosure shall be published in any newspaper published in
Baldwin County, Alabama, the following; " In any newspaper
published in the Town of Fairhope, and if none, then in any
newspaper published in Baldwin County, Alabama" , so that in
�l event of forecolsure, the notice of such foreclosure would
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be required to be published in a newspaper published in the
Town of Fairhope, if any, and if none, then the said notice might
be published in any newspaper published in Baldwin County,
Alabama; and they, also, in that paragraph providing that the
rights and remedies conferred upon or reserved to the Trustee
or note holders by the said trust deed were intended to be cum -
ulative and not exclusive and in addition to the rights of such
parties under the existing laws of Alabama, added thereto " any
note holders right to foreclosure " after the words " in addition
to " and before the words " and to every other remedy or right ;
sn
so as to thereby expressly reserve tbethe note holders the
right of foreclosure by action or otherwise without calling upon
the Trustee to nerform such action; and, also, in that papa -
graph of said trust deed providing that the Trustee should not
be answerable for any default or misconduct of any agent or
attorney employed by it in and about the execution of the said
trust, if such agent or attorney should have been selected
with reasonable care, they added before the words " said Trustee"
the following: " Except as to moneys deposited with it hereunder",
so as to clarify the said trust deed and to expressly state that
the said Trustee should be answerable for moneys deposited with
it, and also by adding before the words " for anything whatever
in connection with this trust, except willful misconduct or
gross neglience, itself or its employes or attorneys the words
" subject to above exception ", so as to further clarify that
the said Trustee was not contracting against its liability for
moneys deposited with it.
The said trust deed as finally agreed upon and delivered
being substantially in the form perscribed by the aforesaid ordin -
ance No. 144 and being in the following words and figures:
KNOW ALL MEN BY THESE PRE SENT , that the Town of Fairhope
has, under authority of an ordinance duly adopted by the Town
Council of the Town of Fairhope on the 24th day of May, 1937, and
numbered 144, issued forty ( 40 notes, each in the sum of Five
Hundred Fifty Dollars ( $550.00 , numbered 1 to 40, both inclus -
ive., dated the first day of june, 1937, payable to beater at the
First National Bank of Mobile, Alabama, with interest at 5o per
annum, interest payable on the 1st day of December, 1937, and
semi-annually thereafter on the first day of June and December
of each year, with coupons attached thereto, evidencing the inter -
est on the said notes,which said notes are in the following form:
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r 550.00
Fairhope, Ala„ June 1, 1937
On or before 1st day of June, 19 , after date, with -
out 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 frost date at the rate of 5% per annum, interest pay -
able on the lst day of December, 1937, and semi-annually there -
after on the first day of June and December of each year thereafter,
interest evidenced by coupon hereto attached, payable at the.First
National Sank of Mobile.
The parties to this instrument, wheather 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 sec -
uring, or attempting to collect or secure this note, including a
reasonable attorney's fee, wheather the same be collected or dec -
ured by suit or otherwise. And the maker, endorser, surety or
guarantor, of this note, severally waives demand. presentment, pro -
test, notice of protest, suit and all other requirements necessary
to hold them, and they agree that the time of payment may be ex -
tended without notice to them of such extension. The'Bank at which
this note is payable is hereby authorized to apply on or after the
maturity to the payment of this debt, any funds in said bank be -
longing 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 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 Ma.y, 1937, for the purpose of defraying the cost of purchasing
installation and housing electric light and power generating equip -
ment and i.s secured equally without preference one ever the other
by a first mortgage on the s&&l property execdTied and delivered by
the Town of Faiehope to the First National Bank. of Mobi:14, as Trustee,
for the benefit of the holders of the said notes, and is payable
only, but equally without preference one ever the other, out of the
net earnings from the said generating equipment and also only, but L
equally without preference one over the 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,
ATTEST:
Its Clerk.
No.
TOVTN RHO.E ,
Its Mayor
On the day of _ _, 19__, the Town of
Fairhope will pay to the 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 Sank 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.fi'
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mortgage to the First National Bank of Mobile, as Trustee, under the
aforesaid ordinance:.
Mayor
Ane which said notes are nubbered and mature in amounts as
follows:
Notes
1,.2,:3,4,. each
in
the
sum
of
$5500.009
due
It
5,617980 if
It
to
It
"
$550.009
it
"
9,10911,12,"
If
if
it
n
$550.009
It
to
13,14915,169"
"
to
It
"
$550.001,
"
it
l791a,19,20,"
It
to
it
It
$550.00,
"
"
21,22,23,24,"
if
to
it
550.00,
"
n
25,26,27,28,"
n
n
n
n
$550.00,
of
of
29,30,31,32,'r
If
of
n
n
$550.00,
it
"'
33,34935,369"
to
to
of
If$
550.009
It
If
37,38,39940,"
it
"
to
It
$550.00,
"
and that the Town of Fairhope desires to secure
on
June
11
1938;
"
June
19,
1939;
of
June
1,
1940;
"
June
1,
1941;
"
June
1,
1942;
of
June
19,
1943;
"
June
1,
1944;
"
June
1,
1945;
"
June
1,
1946;
"
June
1,
1947;
the
same;
NOW THEREFORE, in consideration of the premises and of
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 Lo,t 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, on Septrmber 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
Wiest line of the said bulding 24 feet to the Northwest
corner of said building; thence: East 2M f t. for a be -
ginning�corner' thence{'Bast'14ft.; thence'N6rth'28• ft.
32 in. ; thence: West 14 ft.; thence S'outh 28f t 32 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 Mobileicas 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 gist
it has a good right to sell and convey the same as aforesaid; that
it is"Bhe quite and peaceable possession of the same; that it
will and its successors and assigns, -'shall warrant and defend the
same to the First National Sank of Mobile, as trustee, its success -
ors, and assigns, forever, against the lawful claims of all per -
sons.
The intent and purpose of this instrument is to secure
the payment of the notes above described equally without preference
one ever 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 1
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 saidtFirst
National Bank of Mobile, as Trustee, for the benefit of the holders
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of the aforesaid notes, and that it will also keep the sadi roperty
insured against storm in a sum not less than fifty per cent 9F50%)
of the value thereof, with the loss if any payable to the 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, with the hiblders
of the said notes, that it will keep the earnings from the proper -
ty herein described and conveyed seperate 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 Fairhope
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 become necessary to
make up any deficit from the 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 any special
fund raised by taxes or otherwise for specific putposes, shall ever
be chargeable with the payment of the notes above described, or with
any expense or disbursements incurred or made by the said Trustee, or
any holder or holders of any of Laid notes, pursuant or incident to
any of the provisions hereof, it being the intent and purpose, agree -
ment and understanding between the Town of Fairhopem the First Nation-
al Bank of Mobile, as Trustee, and the holders of the said notes that
the same shall be paid olny 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 raid only out of the net earnings of
the light and power system owned ~by the Tiwn 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 w&ll 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 thees--id Town of Fairhope shall be and be -
come in default in the payment of the said notesnor 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
Bank of mobile:, as Trustee, to sell the property hereinabove de -
scribed at public outery, for cabh, to the highest bidder, durning
the legal hours of sale, in frount of the Court House Door of Bald 0
win County, Alabama, after giving notice of the time, lace and
terms of sale, by publication once a week for eight (8� consecutive
weeks in any newspaper published in the town of Fairhope and if
none, then in any newspaper published in Baldwin County, Alabama, and
the proceeds to apply, first, to the costs of sale, including a reason-b
able attorney's fee, then to the notes hereby secured equally and
pro -ratably without ppeference- one over the other, rheather the same
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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 attorney,
is authorized to conduct any sale held hereunder and to make con -
veyance to the purchases in the name of the Town of Fairhope, as
its attorney in fact, and in any and all things lawfully done in the
premises the Town of Fairhope here ratifies and confirms. The
said Frist 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 hotrbe-necessary'-torhdVe the--afore.said property
at the place of sale.
If at any time before the actual sale of the proparty 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 he 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 hereinabove
described under the powers herein given, but in the event insurence
shall be taken out and policy delivered to the First National 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 cdnfere.ed,upon or resertbd 'to theeTtust'ee or
note holders is intended to be exclusive of any other right or remedy,
but each and every right or remedy shall be cumulative and shall be
in addition to any note holders right of foreclosure and 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 accuring on default shall impair any such right or remedy,
or shall be construed to be a waiver of any such default or acquies
cence therein, nor shall it affect any subsequent default of the
same of whatever nature, but every such remedy or right may be ex -
ercised from timt to time and as often as deemed expedient by the
holder of the notes secured hereby. In case of any suit or pro -
ceeding in any way affecting or realting to the property herein
conveyed, wherein the Trustee or note holders shall be a party or
parties, reasonable costs and charges, including attorney's fees,
in about said suit or prodeeding shall be allowed to the Trustee
and note holders and chf.rged as cost in such proceedings, and shall
be a further charge and lien upon the aforesaid property and secured
hereby.
The Trustee shall be under no obligation to. recognize any
person, firm or corporation as holder or owner of any of the notes
secured hereby unless and untill the note claimed to be owned is pro -
duced to the trustee. Except as to moneys deposited with it hereunder
said Trustee shall not be answerable for any default or misconduct
of any agent of attorney employed by it in and about the execution
of this trust, is such agent or attorney shall have been selected with
reasonable care, or subject to above exception, for anything whatever
in connection with this trust, except willful misconduct or gross
negligence, itself or its emplayes 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 in it any expense or liability, unless one or more of the
holders of the notes hereby secured shall, as often as requested by
the Trustee, pay said Trustee such expense or the am:-�unt of such
liability, or fmrnish 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 satis
factory 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
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the discharge of this trust, or in defense of any suit or proceed -
ing brought against at 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 reasonable
attorney's 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.
The First National Bank of mobile, as Trustee, will re -
ceive such funds as the Town of Fairhope is required hereunder to
deposit withiit for the payment of the aforesaid notes, principal
and interest, and will apply the same to the payment to the said
notes, principal and interest, when and as the same shall becomes;,
due, but it shall be in no manner held liable beyond the funds so
deposed with it, it being expressly understood and agreed that it
shall hot -be responsible fbr .the,, failure' bn thetpart `bf :thenToft 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 W. Morgan, its Glerk, and its corporate seal to he hereto at -
tached, on this the lst day of June, 1937.
TOWN OF FAIRH0PE, ALABAMA,
By
is Mayor.
ATTE
AVLJ
Its Clerk
NOW THEREOFRE, BE IT RESOLVED, that the aforesaid changes
in the form as perscribed by the said trust deed be and the same are
hereby in all things ratified and comfirmed. and the aforesaid deed
of trust as set out in this resolution as finally executed and deliv -
ered be and the same is hereby in all things ratified and comfirmed.
It was moved by Councilman C. A. Gaston that the quotation
submitted by the Fuel Oil Supply Company for 28 - 30 gravity of 4,3/4
cents per gallon and of 5 cents per gallon on 32-36 gravity he filed.
The Town already being supplied by Forster & sons. This motion was
seconded by Councilman J. 0. Stimpson.
Motion carried.
It was then moved by Councilman C. A. Gaston and seconded
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by Councilman M. 0. Berglin, that the Mayor be aythorized to
issue a certificate of approval of Chhs. Burkel's application to the
Alabama Alcoholic Beverage Control Board for Resturant Liquor
Liannee for his Magnolia Beach Pavillion.
t
Motion carried.
It was moved and duly seconded that the meeting adjourn.
By__
TTTES
Clerk
--Wz---� cp�� ��
Mayor
0
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