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HomeMy WebLinkAboutO-317ORDINANCs NO. � ! L AN ORDINANCB TO AUTHORIZE = ISSUANCZ OF 4135,000 PRINCIPAL AMOUNT Or GENERAL OBLIGATION PUBLIC IMPROVEMM WARRAIM TO PAT THE COSTS OF IMPROVIM STREETS IN THE CITY BE IT ORDAINED by the Mayor and City Council (herein together called "the governing body") of the City of Fairhope, Alabama (herein called "the city"), as fol- lowst Section 1. Findings Respecting I rovements. The governing body of the city has heretorore authorIzed the construction of certain street improvements (the said street improvements being herein together called "the improvements") under the provisions of the cityts.Improve- ment Ordinance No. 305 adopted and approved on June 10, 1963, as confirmed by a resolution adopted by the govern- ing body on July 8, 1963 (said Improvement Ordinance No. 305 as so confirmed being herein called "the improvement ordinance"). The governing body of the city has determined and does hereby find and declare that the improvements have not been completed; that the estimated cost to the city of constructing the improvements will be in excess of #135,000; that the estimated life of the improvements will be in excess of ten years from the completion there- of; that no securities have heretofore been issued by the city to pay the cost of constructring the improvements or any part thereof; and that it will be necessary for the city to sell and issue the warrants hereinafter referred to for the purpose of paying the costs of constructing the improvements. Section 2. Authorization of Warrants. Pursuant to the applicable provisions of the constitu on and laws of the State of Alabama, including particularly Section 466 of Title 37 of the Code of Alabama of 1940, as amended, and for the purpose of providing funds with which to pay the costs of constructing the improvements, there are hereby authorized to be issued by the city one hundred thirty-five (135) General Obligation Public Improvement Warrants (herein called "the warrants") of the city in the aggregate principal amount of $135,000, numbered from 1 to 135, inclusive, in the denomination of $1,000 each, which shall be dated December 1, 1963, and shall mature on December 1 in the following aggregate principal amounts and yearst - 2 - Warrant Numbers Aggregate Principal (both inclusive) Year of Maturity Amount Maturing 1000 $13,000 14 to26 1965 27 to 39 1966 13,000 50 to 65 19�68 13,000 J 13,000 6 80 to to 79 1969 1970 14,000 14,000 94 108 to to 107 121 1971 1972 14,000 122 to 135 1973 14,000 The warrants shall bear interest from their date until their respective maturities at the rate of 3-1/2% per an- num. Such interest shall be payable semiannually On June 1 and December 1 of each year until and at the respective maturities of the warrants and shall be evidenced b? semi- annual interest coupons (herein called "the coupons ) at- tached to the warrants. The warrants and the coupons shall bear interest after their respective maturities at the rate of 6% per annum and shall be payable in lawful money of the United States of America at the principal office of First National Bank of Fairhope, Fairhope, Ala- bama. Section 3. 0 tioaa1 Redem tion Provisions. The warrants shall be subject o r emp on and paymen , prior to their respective maturities, at the option of the city, while the city is not in default in-p4.yment of the prin- cipal of or the interest on any of the warrants, on June 1, 1964, and on any interest payment date thereafter, in their inverse numerical order, at and for a redemption price, with respect to each such warrant redeemed, equal to the face value thereof plus accrued interest thereon to _the date fixed for redemption, provided however, that no more than $27,000 priacipal amount of warrants may be so redeemed on any int0l"t payment date. Any such re- demption shall be effected in the following cancers (a) The city by resolution of its govern- ing body shall call for redemption on a s to ted date when they are by their terms subject to redemption warrants bearing stated numbers and shall recite in said resolution that the city is not in default in payment of the principal of or the interest on any of the warrants. (b) The city shall cause to be published one tine in a daily newspaper printed in the English language and customarily published not less than six days during each calendar nook in the City of Nobilo, Alaba=, a notice stat- ing the nuobora of the warrants so called for redemption, stating that the warrants bearing such numbers will become due and payable on the date specified at the redemption price herein. provided for (which shall be specified in said notice) and that all interest thereon will case after said date. In the event there is no such daily newspaper published in said City of Mobile on the date on which such notice is directed in such resolution to be given, then such notice shall be so published one time in either a daily newspaper printed in the English language or a financial journal having general circulation and published in the City of Now York, Now York. Any such notice shall be published not less than thirty days prior to the date fixed for such re- demption. (c) on or prior to the date fixed for re- demption the city shall notify the bank at which the Warrants are payable of the cityls compli- ance with the requirements of paragraphs (a) and (b) of this section and shall make available at such bank the total redemption price of the war- rants so called. Won compliance with the foregoing requirements on its part contained in this section, and if the city is not on the date fixed for any such redemption in default in payment of the principal of or the interest on any of the warrants, the warrants so called for redemption shall become due and payable on the date so fixed for their redemption, and interest thereon shall thereafter cease. No bank at which the warrants are payable shall be required to pay any cou- pon maturing on the redemption date which in applicable to any warrant so called for redemption on such date unless the warrant to which such coupon is applicable is also pre- sented for paymentj provided, that in the event any such bank should pay any'such coupon without payment of the ap- plicable warrant it shall not be liable to the holder of such applicable warrant or to the city or to anyone whom- soeverj and provided further, that each such bank shall pay such coupon out of the moneys supplied to it by the city for such purpose if the holder thereof shall present evi- dence satisfactory to such bank that such holder le the own- er of the coupon presented and is not the owner of the war- rant to which such coupon is applicable. Section 4. Execution pad RggA tratia oS In - rants. The warrants shall be execu Eby the mayor, who shall cause the corpora to seal of the city to be affixed thereto, and the city clerk sbgl1 attest the same by affixing her signature thereto. The coupons shall be executed with a facsimile of the sigwe tare of the mayor and shall be attested with a facsimile cT the signature of the city clerk, whose facsimile signatures stall be valid in all respects an if they had signed the oeupcns in person: The warrants and the coupons shall be rcSistorod by the city treasurer, in the records =intaind by her,, as claims against the city and the assesscents specially pledged therofor, which registration Mall be =do alcnll- tanoously with respect to all the rarrants ad the coupcn3. - 4 - Section 5. General Obligation and Special Pledge. The warrants shall be-generalobligations of the a y, and the full faith and credit of the city are hereby irrevocably pledged for payment of the principal thereof and the interest thereon. As additional security for pay- ment of the principal of and the interest on the warrants, there are further hereby specially and irrevocably pledged therefor all assessments that may hereafter be spade against the properties specially benefited by the improvements, together with the proceeds from all such assessments, in- cluding the proceeds from the sale or redemption of any of said properties which may be sold by the city in en- forcement of the liens of any such assessments, and all liens which the city may at any time have on the properties specially benefited by the improvements arising from the levy of said assessments are hereby transferred and assigned for the benefit of the holders of the warrants and the cou- pons with power to enforce the same either at law or in equity. Section 6. Conletion of Improvements and Col- lection of Assessments. e c y w 1 complete i a -con- struction of the-rm-provements pursuant to the provisions of the improvement ordinance as promptly as may be feas- ible hereafter. Upon completion of the improvements, the city will take such proceedings as may be necessary or appropriate to cause valid assessments to be made against the properties specially benefited by the improvements, all in the manner and to the extent provided by the im- provement ordinance and the laws of Alabama. The city will undertake to collect all assessments hereafter made pursuant to the provisions of the improvement ordinance and, in cases where the owner of any property subject to any such assessment shall elect to pay such assessment in installments in the manner authorized by the laws of Alabama, the city agrees to collect any such installments promptly as and when such installments become due and payable. In the event that any such assessment or any installment thereof shall remain unpaid for a s lflpg a s one year after the same shall become due and payable, the city thereupon will take all steps necessary to en- force the lien of such assessment by sale of the property against which such assessment was made. All proceeds col- lected from the assessments hereafter made pursuant to the improvement ordinance, including the proceeds of the sale or redemption of any property that may be sold by the city in enforcement of the lien of any of said assess- ments, shall be deposited by the city from time to time as collected in a special fund separate and apart from all other funds of the city. Said special fund shall con- stitute a trust fund for the benefit of the holders of the warrants and the coupons and shall be used solely for the payment thereof. Section 7. Pa went at Par. Each banking insti- tution at which any of the warrants -shall at any time be payable, by acceptance of its duties as a paying agent therefor, shall be considered to have a®roed thereby with the holders of the warrants and the coupons that, out of the moneys supplied to it for that purpose, it will =ke - 5 - all payments of the warrants and the coupons in bankable funds at par and without deduction for exchange, fees or expenses. The city agrees with the holders of the war- rants and the coupons and with each such banking insti- tution that it will pay all charges for exchange, fees or expenses which may be made by any such paying agent in the making of such payments at par in bankable funds. Section 8. This Ordinance a Contract. The provisions of this ordinance shall constitute a contract between the city and each holder of the warrants and the coupons. Section 9. Severability. The various provisions of this ordinance are hereby declared to be severable. In the event any provisions hereof shall be held invalid by a court of competent jurisdiction such invalidity shall not affect any other portion of this ordinance. Section 10. Form of Warrants and Coupons. The warrants and the coupons and the provisions for assignment thereof shall be in substantially the following forms with appropriate insertions and variations therein to conform to the provisions hereof: [Form of Warrant] No. $1,000 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF FA IRROPB GENERAL OBLIGATION PT BLIC IKPROV'SMM WARRANT The City of Fairhope, a municipal corpora tioa in the State of Alabama (herein called "the city") , hereby acknowledges that it is indebted to First National M n!z of Fairhope in the principal sum of O N E T H O U S A N D D O L L A R S and hereby orders and directs its city treasurer to pay said principal sum to said First national Hank of Fairhope, - 6 - I or assigns, on the 1st day of December, 19 (unless this warrant has been duly called for redemption , upon sur- render hereof, with interest thereon from the date hereof until the maturity hereof at the rate of 3-1/2% per annum, payable semiannually on June 1 and December 1 of each year until and at the maturity hereof upon presentation and surrender of the appropriate interest coupons hereto attached, as the same respectively become due. Both this warrant and the said coupons shall be payable in lawful money of the United States of America at the principal of- fice of First National Bank of Fairhope, Fairhope, Alabama. This warrant is one of a series in the aggregate principal amount of $135,000, of like tenor except for their numbers and maturity dates, issued pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Section 466 of Title 37 of the Code of Alabama of 1940 and an ordinance duly and legally adopted by the governing body of the city, for the purpose of paying the costs of constructing certain street improvements in and for the city. The in- debtedness evidenced and ordered paid by this warrant and the coupons applicable hereto is a general obligation of the city for payment of the principal of and the interest on which the full faith and credit of the city have been irrevocably pledged. The warrants are subject to redemption and pay- ment prior to their respective maturities at the option of the city after notice published at least one time not less than thirty days prior to the date fixed for redemp- tion, in their inverse numerical order, on June 1, 1964, and on any interest payment date thereafter, at and for a redemption price, with respect to each such warrant re- deemed, equal to the face value thereof plus accrued in- terest thereon, provided however, that no more than $27,000 principal amount of warrants may be so redeemed on any interest payment date. It is hereby certified and recited that the in- debtedness evidenced and ordered paid by this warrant is lawfully due without condition, abatement or offset of any description; that this warrant has been registered in the manner provided by law; that all conditions, ac- tions and things required by the constitution and laws of the State of Alabama to exist, be performed or happen pre- cedent to and in the issuance of this warrant exist, have been performed and have happened; and that the indebtedness evidenced and ordered paid by this warrant, together with all other indebtedness of the city, was at the time the same was created and is now within every debt and other limit prescribed by the constitution and laws of the State of Alabama. This warrant is nonnegotiable but is transfer- able by assignment. Each taker, owner, purchaser or holder hereof, by receiving or accepting this warrant or any in- terest coupon, shall consent and agree and shall be eatopped - 7 - to deny: (1) that title to the coupons hereunto appertain- ing way be transferred by delivery without the necessity of a written assignment and that any person making such delivery shall be deemed to havg transferred to the per- son to whom such delivery is made all his equities or rights in the coupons so delivered; (2) Mat any person in possession of any such coupon, regardless of the man- ner in which he shall have acquired such possession, is authorized to represent himself as the absolute owner thereof and has the power and authority to transfer abso- lute title thereto by delivery thereof to a bona fide pur- chaser for value (present or antecedent) without notice of prior defenses or equities or claims of ownership en- forceable against his transferor or any person in the chain of title and before the maturity thereof; and (3) that whenever and so long as this warrant is assigned in blank by written assignment by the original payee hereof or by any subsequent assignee hereof in the chain of title to whom written assignment is made, the city may treat any person in possession of this warrant, regard- less of how such possession may have been acquired and regardless of the genuineness or effectiveness of any assignment, as the absolute owner nereof for all pur- poses, and payment to any such person shall discharge all obligations hereunder. IN WITNESS WHEREOF, the city has caused this warrant to be executed and its official seal to be here- to affixed by its mayor and has caused the same to be attested by its city clerk, both of whoa have hereunto sub- scribed their signatures, has caused the annexed interest coupons to be executed and attested with facsimiles of the signatures of said officers, and has caused this war- rant to be dated December 1, 1963. CITY OF FAIRHOPE I / By L s yo AttQst: City Clerk [Form of Coupon ] Coupon No. $17.50 On the 1st day of 1 the City Treasurer of the city9 ordered and directed to pay to the bearerhereofsum of Seventeen and 50/100 Dollars upon presentation and surrender of this coupon at the principal office of First National Bank of Fairhope, Fairhope, Alabama. This cou- pon represents six months' interest that will become due on said date on, and is a part of and subject to the pro- visions contained in, the General Obligation Public Im- provement Warrant of the City of Fairhope, Alabama, dated December 1, 1963, No. r Attest: v mayor i ty er [Form of Assignment] For value received, this warrant and the moneys ordered paid thereby are hereby transferred and assigned, without recourse or warranties, to the matueach and after Dece©berg1, 1964, theredate shallfbe insertedntheo on following: (unless the warrant to which this cou- pon is applicable shall have been duly called for prior payment)," Section 11. Sale of Warrants. The warrants shall be and hereby are sold and awarded to First National Bank of Fairhope at and for a purchase price equal to $135,000 plus accrued interest on the warrants to the date of their delivery. The mayor and the city treasurer are hereby authorized and directed to deliver the warrants to said purchaser upon payment to the city of the said pur- chase price therefor. The proceeds from the sale of the warrants shall be used only for the purpose for which they are herein authorized to be issued. Adopted and approved this 9th day of December, 1963. Mayor Authenticated: City Clerk ,7 Alderman ai L� moved that unanimous consent be given for immediate consideration of and action on said ordinance, which motion was seconded by Alderman and, upon the motion being put to vote, the following vote was recorded: Yeas: Mayor Schneider and Aldermen Boone, Gaston, Nelson, Poser and Spader; Nays: None. The mayor thereupon declared that the motion for unanimous consent for the immediate consideration of and action on said ordi- nance had been unanimously carried. Alderman1.(-L, +-K thereupon moved that the said ordinance be finally adopted, which motion was seconded by Alderman �#itc,�^+ , and, upon the ►potion being put to vote, the following vote was recorded: Yens: Kayor Schneider and Aldermen Boone, Ga:,ton, Uolson, Poser and Spader; Nays: None. The cayor tnerounm n.inourced that the motion for adoption of said ordinance -rd been u.nnnimoualy carried. - 1C --