Loading...
HomeMy WebLinkAboutO-258S ORDINANCE NO. 258 AN ORDINANCE TO PROVIDE FOR THE ISSUANCE OF $210,000 PRINCIPAL AMOUNT OF WATER, SEWER AND GAS REVENUE REFUNDING WARRANTS, SERIES 19587 OF THE CITY FOR THE PURPOSE OF REFUNDING A LIKE PRINCIPAL AMOUNT OF AN OUTSTANDING WARRANT OF THE CITY, AND PROVIDING FOR A PLEDGE OR REVENUES AND MORTGAGE AND DEED OF TRUST AS SECURITY THEREFOR BE IT ORDAINED by the Mayor and City Council (herein together called "the council") of the City of Fairhope (herein called "the city") in the State of Alabama as follows: (1) Authorization of the Warrants. Pursuant to the authority contained in Section 253 of Title 37 of the Code of Alabama of 1940, and for the purpose of refunding the outstanding Water, Sewer and Gas Revenue Warrant of the city in the principal amount of $2107000 which was heretofore issued by the city under the authority of a resolution adopted by the city council of the city on December 2, 1958, there are hereby authorized to be issued by the city its Water, Sewer and Gas Revenue Refunding Warrants, Series 1958 to be dated December 1, 1958 (herein called "the warrants"j in the aggregate principal amount of $210,000, shall bear interest evidenced by semiannual interest coupons (herein called "the coupons") and shall contain the provisions as is set forth in the indenture (herein called "the indenture") referred to in Section (4) of this ordinance. (2) SOLfree of Payment of the Warrants. The princi- pal of and interest on the warrants and the coupons shall be payable solely from the revenues derived from the operation of the city's water, sewer and gas systems as presently or hereafter constituted (herein called "the systems") including all additions thereto and extensions thereof which may here- after be made. The general faith and credit of the city are not pledged to the payment of the warrants or the coupons, and they shall not be general obligations of the city. Neither this ordinance nor any of the warrants or the coupons shall be dedmed to impose upon the city any obligation to pay the principal of or the interest on the warrants or the coupons except with moneys derived from the operation of the systems as provided in the indenture, and shall not constitute an indebtedness of the city within the meaning of any state constitutional provision or statutory limitation. None of the agreements, representations or warranties made or implied in this ordinance or in the indenture or in the issuance of the warrants or the coupons shall ever impose any personal, pecuniary or general liability or charge upon the city, whether before or after any breach by the city of any such agreement, representation or warranty by the city, except with the moneys as specified in the indenture. Nothing contained in this section, however, shall relieve the city or its officers from the performance of the several agreements and representations on the part of the city contained in this ordinance so long as such performance does not impose a personal, pecuniary or general liability or charge upon the city. ,. (3) Payment at Par. All remittances of principal of and interest on the warrants and the coupons to the holders thereof shall be made at par without any deduction for exchange or other costs, fees or expenses. The bank at which the warrants and the coupons shall at any time be payable shall be donsidered, by acceptance of its duties hereunder, to have agreed that it will make or cause to be made, out of the moneys supplied to it for that purpose, remittances of the principal of and interest on the warrants and the coupons to the holders thereof in bankable funds at par without any deduction for exchange or other costs, fees or expenses. The city will pay to such bank all reasonable charges made and expenses incurred by it in making such remittances in bankable funds at par. (4) Authorization of t therein Contained. As security for payment of the principal of and interest on the warrants, pro rata and without preference or priority of one over another, the mayor of the city is hereby authorized and directed to execute the indenture, in the name and behalf of the city, covering all properties of any kind whatsoever now or hereafter constituting the systems and all extensions thereof and additions thereto hereafter made, and the city clerk is hereby authorized and directed to affix to the indenture and attest the corporate seal of the city. The indenture shall be in the form attached as Exhibit "All to the minutes of the meeting at which this ordinance is adopted, which form is hereby adopted in all respects as if set out in full in this ordinance. All of the provisions contained in the indenture, including specifically, but without limiting the generality of the said all inclusive term, the pledge of revenues from the operation of the systems contained in the indenture' -and. the' agreeme;itsl'containeo,iii_the i.nd6nture: re.: specting the- pledge, andl appx$eation:`of= revenues, fi,om the,.loper- atl6n 6f"Ahe systems'Rre hereby adopted as a part of this ordinance. (5) Sale of the Warrants,. The warrants are hereby sold to Watkins, Morrow & Co. at a purchase price equal to 97-1/2% of the face value thereof plus accrued interest thereon from their date to the date of their delivery, the said sale price being hereby ascertained and declared to be the best offer made for the warrants which the city has received therefor. The warrants shall be issued in the name of Hugh Morrow, III, the nominee designated by the purchaser for that purpose. The mayor of the city is hereby authorized and directed, upon payment to the city of the said purchase price of the warrants, to deliver the indenture and the warrants to The Merchants National Bank of Mobile, the trustee under the indenture, and to order and direct the said trustee to certify the warrants and deliver them, together with all interest coupons applicable thereto, to the said purchaser. (6) Severability. The provisions of this ordinance (including those contained in the indenture) are hereby declared to be severable and in the event any court of competent jurisdiction should hold any such provision to be invalid or unenforceable such holding shall not invalidate or render unenforceable any other provision of this ordinance. Adopted and approved this 12th day of January, 1959. Approved Mayor L ' � Attest: ., ity Clerk