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ORDINANCE 153
VIIIEREAS, at a regular meeting of the Town Council of
the Town of Fairhope, Alabama, (which town is herein referred
to as "the town") held on January 13, 1941, an ordinance was
duly adopted calling an election to be held on February 18,
1941, in the town for the purpose of submitting to the qualified
electors of the town the question of whether or not the town shall
issue on its credit, its General Obligation Bonds in the aggregate
principal amount of w33,000 for the purpose of providing funds
for the payment of certain notes heretofore issued by the tom in
the acquisition of and which are secured by mortgages on units of
the municipal light plant of the town; and
WHOR,AS, notice was given of said election in the form
and manner provided in said ordinance by publication in The
Fairhope Courier, a newspaper of general circulation in and pub-
lished in the totim in the issues of said newspaper published on
January 16, 1941, January 23, 1941, and January 30, 1941; and
XCMEAS, such election wFLs called, notice thereof was
given and the same was held in strict accordance with law and the
provisions of said ordinance on the 18th day of February, 1941,
and the ballot used at said election was in the form provided in
said ordinance, and on February 19, 1941, which was the day fol-
lowing the date on which said election was held, the toi-,rn council
of the town met as a board of canvassers to canvass the returns
of said election, and then and there canvassed the said returns
and found that a total of forty-seven votes were cast at said
election, of which forty-five votes were cast in favor of the
issuance of said bonds and two votes were cast against the issu-
ance thereof, being a majority of forty-three votes cast in favor
of said bonds; and
VMHEAS, the town council of the toim has ascertained and
determined that said bonds should be issued in the said aggregate
principal amount of33,000, and it has been determined and is here-
by ascertained that the period of usefulness of the portions of the
municipal light plant of the town acquired with the proceeds of the
aforesaid notes will extend over a period of not less than ten (10)
years from the date hereof;
14071 THLkLIUEE, be it ordained by the Town Council of the
Town of Fairhope, Alabama, as follows:
Section 1. The recitals set out in the foreCoina pre-
ambles are hereby found and declared to be true.
Section 2. Pursuant to the provisions of the Municipal
Bond Code of Alabama, as amended, there is hereby authorized to be
issued and sold $33,000 principal amount of General Obligation
Bonds of the town for the purpose of providing funds to pay certain
5 ;o mortgage notes heretofore, issued by the totim dated June 1,
1937, and January 1, 1940, in the acquisition of land which secured
by mortgages on units of the municipal light plant of the toi•m.
Said bonds shall be thirty-three in number, shall be numbered con-
secutively from 1 to 33, inclusive, shall be in the denomination
of w1,000 each, shall be dated January 1, 1941, and shall mature as
follows:
Numbers
Principal
both
Amount
inclusive
I,:aturity
Date
I.Iaturing
1 to 5
January 1,
194 2
4'5,000
6 to 10
January 1,
1943
52000
11 to 15
January 1,
1944
5,000
-2-
slumbers
Principal
both
Amount
inclusive
Maturity
Date
Laturing
16 to 21
January 1,
19456,000
22 to 27
January 1,
1946
6,000
23 to 33
January 1,
1947
61000
Said bonds shall bear interest from their date at such
rate as•may be hereafter fixed by ordinance of the town but not
exceeding; the rate of 3% per annum, which interest shall be pay-
able semiannually on July 1 and January 1 of each year until
their respective maturities as shall be evidenced by semiannual
interest coupons attached to said bonds. Said bonds and interest
coupons shall be payable in lawful money of the United States of
America at the principal office of The First National Bank of
Mobile, in the City of Mobile in the State of Alabama.
Section 3. Said bonds shall be signed in behalf of the
town by the mayor of the toxin and by the treasurer of the town,
and the corporate seal of the town shall be affixed to each there-
of. The said interest coupons shall bear the facsimile signatures
of the said mayor and the said treasurer, which said facsimilie
signatures shall be valid in all respects as if the said officers
had signed the said coupons in person. Said officers are hereby
directed so to execute said bonds and affix the seal of the town
thereto.
Section 4. Said bonds shall be general obligations of
the town and for the payment of the principal thereof and interest
thereon the full faith, credit, taxing powers and resources of the
town are hereby irrevocably pledged, and there is hereby appropri-
ated and ordered to be set aside annually out of the general reve-
nues of the town, so long as any of the said bonds are outstanding,
a sufficient sum to pay the principal of and interest on said bonds
as and when said principal and interest shall respectively mature.
Such appropriation shall not be used for any other purpose.
Section 5. Each of said bonds and interest coupons ap-
plicable thereto shall be in substantially the following form,
with appropriate changes therein for the numbers and maturity dates
thereof and with the interest rate and amount inserted in the
spaces provided therefor:
(FOM,1 OF BONDS)
No. .;?1, 000
UNITED STATES OF AI,�:RICA
STATE OF ALABIIIA
T0'4-11 OF FAIRHOPE
GENERAL OBLIGATION BOND
On the 1st day of January, 194 , for value received,
the Town of Fairhope, a municipal corporation of the State of
Alabama, promises to pay to the bearer hereof the sum of
ONE THOUSA:TD DCLLARS
s
°3-
with interest thereon meanwhile at the rate of ;'a per annum,
payable semi-annually on the first days of July and January
upon surrender of the annexed interest coupons therefore as they
severally become due. Both the principal hereof and the interest
hereon are payable in lawful money of the United States of
America at the principal office of The First National Bank of
Mobile, in the City of Mobile in the State of Alabama.
The indebtedness evidenced by this bond is a general ob-
ligation of said town for the payment of the principal of and in-
terest on which the full faith, credit, taxing powers and resources
of the town have been irrevocably pledged. This bond has been is-
sued pursuant to the Municipal Bond Code of Alabama, as amended,
and an election duly called and held in s id town on February 18,
1941, and ordinances of said town duly an legally adopted for the
purpose of providing funds for the. payment of certain notes of
said town issued in the acquisition of units of the municipal light
plant of said town.
It is hereby certified and recited that all conditions,
actions and things required by the constitution or laws of Alabama
to exist, be performed or happen precedent to or in the issuance
of this bond and the creation of the indebtedness evidenced here-
by exist, have been performed and have happened, and that the in-
debtedness evidenced by this bond, together with all other indebted-
ness of the town, was when incurred and now is within every debt
and other limit prescribed by the constitution and laws of Alabama.
III .�'ZTIIESS 71HIMEOF, said town hds caused this bond to be
executed in its name by its mayor and towwn treasurer, and its cor-
porate seal to be hereunto affixed, and the annexed interest cou-
pons to be executed frith the facsimilie signatures of its said
mayor and torn treasurer, and this bond to be dated January 1, 1941.
I.:ayo r
Coupon
No.
(FOM OF COUPON)
Town Treasurer
w
On the 1st day of 194 , the Town of
Fairhope in the State of :Alabama promises to pay to the bearer
hereof, at the principal office of The First national Bank of
I.1obile, in the City of I.Iobile in the State of Alabama,
Dollars in lawful money of the United :States of
America, being six months' interest then due on the General
Obligation Bond of said town dated January 1,-1941, and numbered
LIayor Town Treasurer
-4-
Section 6. The provisions of this ordinance shall con-
stitute a contract between the town and every holder of said bonds
issued hereunder or of any coupons appertaining thereto. IThenever
all of said bonds anC the interest thereon shall have been paid in
full, and all of the agreements on the part of the town herein con-
tained have been performed, then upon the happening of such events
the obligations of the town hereunder shall thereupon cease.
Section 7. The baa.1-ink inutiti•.tion or institutions at
which said bonds shall at any time be payable by their acceptance
of their duties hereunder, shall be construed to have agreed there-
by with the holders of said bonds that they will rial.e all remit-
tances of principal of and interest on the stoic: bonds in bankable
funds at par and without deductions for exchange, fees or expenses.
The town i-rees with the holders of said bones that it will pay
all charges for exchange, fees or expenses which may be made by
any such banding institution in the making of remittances of prin-
cipal of or interest on any of said bonds so that said principal
and interest will be paid in bankable funds at par.
Section 8. The various provisions of this ordinance are
hereby declared to be severable. In the event any provision of
this ordinance shall be held invalid by a court of competent juris-
diction, such invalidity shall not affect any other portion of this
ordinance.
Approved:
Howard Rube,
Mayor