1987-069ORDINANCE NO 87-069
ORDINANCE
AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF
DENTON GENERAL OBLIGATION BONDS, SERIES 1987, LEVYING THE
TAX TO PAY SAME, AND APPROVING AND AUTHORIZING INSTRUMENTS
AND PROCEDURES RELATING THERETO
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
hereinafter authorized were lawfully
said City on
WHEREAS, the bonds
and favorably voted at an election duly held in
DECEMBER 13, 1986; and
WHEREAS, it is necessary and advisable to authorize,
issue, and deliver part of said bonds, and
WHEREAS, the bonds hereinafter authorized and designated
were voted and are to be issued, sold, and delivered pursuant
to Vernon's Ann Tex Civ St Articles 823 and 1175, and the
City's Home Rule Charter
THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY
ORDAINS THAT
Section 1 AMOUNT AND PURPOSE OF THE BONDS The bond or
bonds of the City of Denton, Texas (the "Issuer") are hereby
authorized to be issued and delivered in the aggregate princi-
pal amount of $3,500,000, FOR THE PURPOSE OF THE ACQUISITION OF
PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC PURPOSES IN SAID
CITY, TO-WIT $1,175,000 FOR STREET AND TRAFFIC CONTROL IM-
PROVEMENTS; $890,000 FOR DRAINAGE IMPROVEMENTS, $185,000 FOR
EXPANSION OF THE CITY ANIMAL CONTROL CENTER, and $1,250,000 FOR
PARK IMPROVEMENTS, INCLUDING ATHLETIC FIELDS AND NEIGHBORHOOD
AND SENIOR CITIZENS COMMUNITY CENTERS
Section 2 DESIGNATION OF THE BONDS Each bond issued
pursuant to this Ordinance shall be designated "CITY OF DENTON
GENERAL OBLIGATION BOND, SERIES 1987", and initially there
shall be issued, sold, and delivered hereunder a single fully
registered bond, without interest coupons, payable in Install-
ments of principal (the "Initial Bond"), but the Initial Bond
may be assigned and transferred and/or converted into and
exchanged for a like aggregate principal amount of fully
registered bonds, without interest coupons, having serial
maturities, and in the denomination or denominations of $5,000
or any integral multiple of $5,000, all in the manner herein-
after provided The term "Bonds" as used in this Ordinance
shall mean and include collectively the Initial Bond and all
substitute bonds exchanged therefor, as well as all other
substitute bonds and replacement bonds ~ssued pursuant hereto,
and the term "Bonds" shall mean any of the Bonds
Section 3 INITIAL DATE, DENOMINATION, NUMBER, MATURI-
TIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE
INITIAL BOND
(a) The Inat~al Bond is hereby authorized to be ~ssued,
sold, and delivered hereunder as a sangle fully registered
Bond, w~thout ~nterest coupons, dated APRIL 1, 1987, an the
denomination and aggregate principal amount of $3,500,000,
numbered R-i, payable in annual ~nstallments of pr~nclpal to
the initial registered owner thereof, to-w~t
L M W G &CO ,
or to the registered assignee or asslgnees of sa~d Bond or any
portion or portions thereof (~n each case, the "registered
owner"), with the annual ~nstallments of principal of the
In~tial Bond to be payable on the dates, respectively, and an
the principal amounts, respectively, stated an the FORM OF
INITIAL BOND set forth in th~s Ordinance
(b) The Initial Bond (~) may be prepaid or redeemed prior
to the respective scheduled due dates of ~nstallments of
principal thereof, (~) may be assigned and transferred, (~)
may be converted and exchanged for other Bonds, (~v) shall have
the characteristics, and (v) shall be slgned and sealed, and
the principal of and interest on the Initial Bond shall be
payable, all as provided, and ~n the manner required or ~nd~-
cated, ~n the FORM OF INITIAL BOND set forth ~n this Ordinance
Section 4 INTEREST The unpaid principal balance of the
Initial Bond shall bear ~nterest from the date of the In~tlal
Bond to the respective scheduled due dates, or to the respec-
tive dates of prepayment or redemption, of the ~nstallments of
principal of the Initial Bond, and sa~d ~nterest shall be
payable, all in the manner provided and at the rates and on the
dates stated ~n the FORM OF INITIAL BOND set forth ~n th~s
Ordinance
Section 5 FORM OF INITIAL BOND The form of the Initial
Bond, including the form of Registration Bond of the Comptrol-
ler of Public Accounts of the State of Texas to be endorsed on
the Initial Bond, shall be substantially as follows
2
FORM OF INITIAL BOND
NO R-1
$3,500,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON GENERAL OBLIGATION BOND
SERIES 1987
THE CITY OF DENTON, in Denton County, Texas (the
"Issuer"), being a political subdivision of the State of Texas,
hereby promises to pay to
L M W G &CO ,
or to the registered assignee or assignees
portion or portions hereof (in each case,
owner") the aggregate principal amount of
of this Bond or any
the "registered
$3,500,000
(THREE MILLION FIVE HUNDRED THOUSAND DOLLARS)
in annual installments of principal due and payable on JULY 1
in each of the years, and in the respective principal amounts,
as set forth in the following schedule
PRINCIPAL PRINCIPAL
YEAR AMOUNT YEAR AMOUNT
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
$175 000
175 000
175 000
175 000
175,000
175000
175,000
175,000
175,000
175,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
$175000
175 000
175,000
175000
175,000
175,000
175 000
175,000
175 000
175 000
and to pay interest, from the date of this Bond hereinafter
stated, on the balance of each such installment of principal,
respectively, from time to time remaining unpaid, at the rates
as follows
3
9 40% per annum on the above installment due in 1988
9 40% per annum on the above installment due in 1989
9 40% per annum on the above installment due in 1990
9 40% per annum on the above installment due in 1991
9 40% per annum on the above installment due in 1992
9 40% per annum on the above installment due in 1993
9 40% per annum on the above installment due in 1994
9 20% per annum on the above installment due 1n 1995
8 00% per annum on the above installment due in 1996
8 00% per annum on the above installment due ~n 1997
8 00% per annum on the above installment due in 1998
7 60% per annum on the above installment due in 1999
7 70% per annum on the above installment due in 2000
7 80% per annum on the above installment due in 2001
7 90% per annum on the above installment due in 2002
8 00% per annum on the above installment due in 2003
8 00% per annum on the above installment due in 2004
8 00% per annum on the above installment due in 2005
6 40% per annum on the above installment due in 2006
6 40% per annum on the above ~nstallment due ~n 2007
with said lnterest being payable on JANUARY 1, 1988, and semi-
annually on each JULY 1 and JANUARY 1 thereafter whale this
Bond or any portion hereof is outstanding and unpaid
THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this
Bond are payable in lawful money of the United States of
America, without exchange or collection charges The install-
ments of principal and the interest on this Bond are payable to
the registered owner hereof through the services of MBANK
DALLAS, NATIONAL ASSOCIATION, DALLAS, TEXAS, which is the
"Paying Agent/Registrar" for this Bond Payment of all princi-
pal of and interest on this Bond shall be made by the Paying
Agent/Registrar to the registered owner hereof on each princI-
pal and/or ~nterest payment date by check, dated as of such
date, drawn by the Paying Agent/Registrar on, and payable
solely from, funds of the Issuer required by the ordinance
authorizlng the issuance of this Bond (the "Bond Ordinance") to
be on deposit with the Paying Agent/Registrar for such purpose
as hereinafter provided, and such check shall be sent by the
Paying Agent/Registrar by United States mall, first-class
postage prepaid, on each such principal and/or interest payment
date, to the registered owner hereof, at the address of the
registered owner, as it appeared on the 15th day of the month
next preceding each such date (the "Record Date") on the
Registration Books kept by the Paying Agent/Registrar, as
hereinafter described The Issuer covenants with the regis-
tered owner of this Bond that on or before each principal
and/or interest payment date for this Bond it will make avail-
able to the Paying Agent/Registrar, from the "Interest and
Sinking Fund" created by the Bond Ordlnance, the amounts
required to provide for the payment, ~n ~mmed~ately available
funds, of all principal of and ~nterest on th~s Bond, when due
IF THE DATE for the payment of the principal of or lnter-
est on thls Bond shall be a Saturday, Sunday, a legal hollday,
or a day on which banking ~nst~tutlons in the C~ty where the
Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall
be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking ~nstltut~ons are
authorized to close, and payment on such date shall have the
same force and effect as ~f made on the original date payment
was due
THIS BOND has been authorlzed ~n accordance w~th the
Constitution and laws of the State of Texas FOR THE PURPOSE OF
THE ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC
PURPOSES IN SAID CITY, TO-WIT $1,175,000 FOR STREET AND
TRAFFIC CONTROL IMPROVEMENTS, $890,000 FOR DRAINAGE IMPROVE-
MENTS, $185,000 FOR EXPANSION OF THE CITY ANIMAL CONTROL
CENTER, and $1,250,000 FOR PARK IMPROVEMENTS, INCLUDING
ATHLETIC FIELDS AND NEIGHBORHOOD AND SENIOR CITIZENS COMMUNITY
CENTERS
ON JULY 1, 1997, or on any ~nterest payment date there-
after, the unpaid ~nstallments of principal of thls Bond may be
prepaid or redeemed prior to their scheduled due dates, at the
option of the Issuer, with funds derived from any available
source, as a whole, or in part, and, if ~n part, the particular
port~on of th~s Bond to be prepaid or redeemed shall be se-
lected and designated by the Issuer (provided that a port~on of
th~s Bond may be redeemed only in an ~ntegral multiple of
$5,000), at the prepayment or redemption price of the par or
principal amount thereof, plus accrued ~nterest to the date
f~xed for prepayment or redemption
AT LEAST 30 days prior to the date f~xed for any such
prepayment or redemption a written not~ce of such prepayment or
redemption shall be ma~led by the Paying Agent/Registrar to the
registered owner hereof By the date f~xed for any such
prepayment or redemption due provision shall be made by the
Issuer w~th the Paying Agent/Registrar for the payment of the
reqm~red prepayment or redemption price for th~s Bond or the
port~on hereof which is to be so prepaid or redeemed, plus
accrued ~nterest thereon to the date fixed for prepayment or
redemption If such written not~ce of prepayment or redemptlon
Ks given, and ~f due provision for such payment ls made, all as
provided above, this Bond, or the port~on thereof which ~s to
be so prepaid or redeemed, thereby automatically shall be
5
treated as prepaid or redeemed prior to 1ts scheduled due date,
and shall not bear ~nterest after the date flxed for lts
prepayment or redemption, and shall not be regarded as being
outstandlng except for the r~ght of the registered owner to
receive the prepayment or redemptlon price plus accrued 1nter-
est to the date f~xed for prepayment or redemptlon from the
Paying Agent/Reglstrar out of the funds provlded for such
payment The Paylng Agent/Reglstrar shall record ~n the
Registration Books all such prepayments or redemptions of
pr~nclpal of th~s Bond or any port~on hereof
THIS BOND, to the extent of the unpaid or unredeemed
principal balance hereof, or any unpaid and unredeemed portion
hereof in any ~ntegral multiple of $5,000, may be assigned by
the 1nltlal registered owner hereof and shall be transferred
only in the Registration Books of the Issuer kept by the Paying
Agent/Registrar acting in the capaclty of regIstrar for the
Bonds, upon the terms and conditions set forth in the Bond
Ordinance Among other requirements for such transfer, th~s
Bond must be presented and surrendered to the Paying Agent/
Registrar for cancellation, together with proper instruments of
assignment, in form and wlth guarantee of signatures satisfac-
tory to the Paying Agent/Registrar, evidencing assignment by
the ~nltial registered owner of this Bond, or any portlon or
portions hereof in any integral multiple of $5,000, to the
assignee or assignees in whose name or names th~s Bond or any
such portlon or port~ons hereof ls or are to be transferred and
registered Any instrument or ~nstruments of assignment
satlsfactory to the Paying Agent/Registrar may be used to
evidence the assignment of th~s Bond or any such portlon or
portions hereof by the initial registered owner hereof A new
bond or bonds payable to such assignee or assignees (whlch then
will be the new registered owner or owners of such new Bond or
Bonds) or to the initial registered owner as to any portion of
th~s Bond which 1s not being assigned and transferred by the
· nit~al registered owner, shall be delivered by the Paylng
Agent/Registrar ~n conversion of and exchange for th~s Bond or
any port~on or portlons hereof, but solely ~n the form and
manner as provided in the next paragraph hereof for the conver-
sion and exchange of this Bond or any port~on hereof The
registered owner of this Bond shall be deemed and treated by
the Issuer and the Paying Agent/Registrar as the absolute owner
hereof for all purposes, including payment and discharge of
liability upon this Bond to the extent of such payment, and the
Issuer and the Paying Agent/Registrar shall not be affected by
any notlce to the contrary
AS PROVIDED above and in the Bond Ordinance, this Bond,
the extent of the unpaid or unredeemed principal balance
hereof, may be converted ~nto and exchanged for a l~ke
to
aggregate pranc~pal amount of fully registered bonds, w~thout
interest coupons, payable to the assagnee or assagnees duly
desagnated ~n wrat~ng by the anat~al registered owner hereof,
or to the ~n~t~al registered owner as to any portaon of thas
Bond whach ~s not being assigned and transferred by the lnat~al
registered owner, in any denom~nataon or denomanatlons in any
integral multaple of $5,000 (subject to the requirement here-
lnafter stated that each substatute bond ~ssued ~n exchange for
any portion of th~s Bond shall have a single stated principal
maturity date), upon surrender of thas Bond to the Paying
Agent/Reglstrar for cancellation, all ~n accordance wath the
form and procedures set forth in the Bond Ordanance If thas
Bond or any portion hereof as assagned and transferred or
converted each bond ~ssued ~n exchange for any portlon hereof
shall have a s~ngle stated prlncapal maturity date correspond-
· ng to the due date of the anstallment of pranc~pal of thls
Bond or port~on hereof for which the substitute bond ~s belng
exchanged, and shall bear anterest at the rate applicable to
and borne by such installment of principal or port~on thereof
Such bonds, respectively, shall be subject to redemption prior
to maturity on the same dates and for the same prices as the
corresponding installment of principal of this Bond or portion
hereof for which they are beang exchanged No such bond shall
be payable an installments, but shall have only one stated
principal maturity date AS PROVIDED IN THE BOND ORDINANCE,
THIS BOND IN ITS PRESENT FORM MAY BE ASSIGNED AND TRANSFERRED
OR CONVERTED ONCE ONLY, and to one or more assagnees, but the
bonds lssued and dellvered in exchange for th~s Bond or any
portion hereof may be assigned and transferred, and converted,
subsequently, as provided in the Bond Ordinance The Issuer
shall pay the Paying Agent/Reglstrar's standard or customary
fees and charges for transferring, convertang, and exchanging
this Bond or any portion thereof, but the one requesting such
transfer, conversion, and exchange shall pay any taxes or
governmental charges required to be paid wath respect thereto
The Paying Agent/Registrar shall not be required to make any
such assignment, conversion, or exchange (1) during the peraod
commencing w~th the close of business on any Record Date and
ending with the opening of business on the next following
principal or Interest payment date, or, (la) wath respect to
any Bond or portlon thereof called for prepayment or redemptaon
prior to maturity, wlthln 45 days prior to 1ts prepayment or
redemption date
IN THE EVENT any Paying Agent/Registrar for th~s Bond is
changed by the Issuer, resigns, or otherwise ceases to act as
such, the Issuer has covenanted in the Bond Ordinance that at
promptly will appoint a competent and legally qualified sub-
stltute therefor, and promptly will cause written notice
thereof to be malled to the registered owner of this Bond
IT IS HEREBY certified, recited, and covenanted that th~s
Bond has been duly and vat~dly voted, authorlzed, lssued, sold,
and delivered, that all acts, conditions, and th~ngs required
or proper to be performed, ex~st, and be done precedent to or
· n the authorization, ~ssuance, and delivery of th~s Bond have
been performed, exlsted, and been done ~n accordance wlth law,
that th~s Bond ~s a general obllgatlon of the Issuer, ~ssued on
the full faith and credit thereof, and that annual ad valorem
taxes sufficient to provide for the payment of the ~nterest on
and principal of th~s Bond, as such ~nterest comes due and such
principal matures, have been lev~ed and ordered to be lev~ed
against all taxable property ~n the Issuer, and have been
pledged ~rrevocably for such payment, wlth~n the l~m~t pre-
scribed by law
BY BECOMING the registered owner of th~s Bond, the regis-
tered owner thereby acknowledges all of the terms and provi-
sions of the Bond 0rdlnance, agrees to be bound by such terms
and provisions, acknowledges that the Bond Ordlnance ~s duly
recorded and available for ~nspect~on ~n the official minutes
and records of the governing body of the Issuer, and agrees
that the terms and provisions of th~s Bond and the Bond Ordi-
nance constitute a contract between the registered owner hereof
and the Issuer
IN WITNESS WHEREOF, the Issuer has caused thls Bond to be
s~gned w~th the manual s~gnature of the Mayor of the Issuer and
countersigned w~th the manual s~gnature of the C~ty Secretary
of the Issuer, has caused the official seal of the Issuer to be
duly ~mpressed on th~s Bond, and has caused thls Bond to be
dated APRIL 1, 1987
C~ty Secretary,
C~ty of Denton, Texas
(CITY
SEAL)
fled
Mayor,
Czty of Denton, Texas
FORM OF REGISTRATION CERTIFICATE OF THE
COMPTROLLER OF PUBLIC ACCOUNTS
COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO
I hereby certzfy that th~s Bond has been examined, cert~-
as to validity, and approved by the Attorney General of
the State of Texas, and that th~s Bond has been regzstered by
the Comptroller of Public Accounts of the State of Texas
8
W~tness my signature and seal this
Comptroller of Public Accounts
of the State of Texas
(COMPTROLLER'S SEAL)
Section 6 ADDITIONAL CHARACTERISTICS OF THE BONDS
Re~stratlon and Transfer (a) The Issuer shall keep or cause
to be kept at the principal corporate trust off~ce of MBANK
DALLAS, NATIONAL ASSOCIATION, DALLAS, TEXAS (the "Paying
Agent/Registrar") books or records of the reglstrat~on and
transfer of the Bonds (the "Registration Books"), and the
Issuer hereby appoints the Paying Agent/Registrar as lts
registrar and transfer agent to keep such books or records and
make such transfers and registrations under such reasonable
regulations as the Issuer and Paying Agent/Registrar may
prescribe, and the Paying Agent/ Registrar shall make such
transfers and registrations as here~n provided The Paying
Agent/Registrar shall obtain and record ~n the Registration
Books the address of the registered owner of each Bond to whlch
payments with respect to the Bonds shall be malled, as herein
provided, but ~t shall be the duty of each registered owner to
not~fy the Paying Agent/Registrar ~n writing of the address to
which payments shall be mailed, and such lnterest payments
shall not be ma~led unless such not~ce has been g~ven The
Issuer shall have the r~ght to ~nspect the Registration Books
during regular bus~ness hours of the Paying Agent/Registrar,
but otherwise the Paying Agent/Registrar shall keep the Regis-
tration Books confidential and, unless otherwise required by
law, shall not permlt their ~nspect~on by any other entity
Registration of each Bond may be transferred ~n the Registra-
tion Books only upon presentation and surrender of such Bond to
the Paying Agent/Registrar for transfer of registration and
cancellation, together w~th proper written ~nstruments of
assignment, in form and w~th guarantee of s~gnatures sat~s-
factory to the Paylng Agent/Registrar, (~) ev~denclng the
assignment of the Bond, or any port~on thereof in any ~ntegral
multiple of $5,000, to the assignee or assignees thereof, and
(~l) the r~ght of such assignee or assignees to have the Bond
or any such portion thereof registered ~n the name of such
assignee or assignees Upon the assignment and transfer of any
Bond or any port,on thereof, a new substitute Bond or Bonds
shall be ~ssued ~n conversion and exchange therefor in the
manner here~n provided The Initial Bond, to the extent of the
unpaid or unredeemed principal balance thereof, may be asslgned
and transferred by the ~n~t~al registered owner thereof once
only, and to one or more assignees designated ~n wr~tlng by the
· n~t~al registered owner thereof All Bonds ~ssued and
9
delivered in conversion of and exchange for the Initial Bond
shall be in any denomination or denominations of any integral
multiple of $5,000 (subject to the requirement hereinafter
stated that each substitute Bond shall have a single stated
principal maturity date), shall be in the form prescribed in
the FORM OF SUBSTITUTE BOND set forth in this Ordinance, and
shall have the characteristics, and may be assigned, trans-
ferred, and converted as hereinafter provided If the Initial
Bond or any portion thereof is assigned and transferred or
converted the Initial Bond must be surrendered to the Paying
Agent/Registrar for cancellation, and each Bond issued in
exchange for any portion of the Initial Bond shall have a
single stated principal maturity date, and shall not be payable
in installments, and each such Bond shall have a principal
maturity date corresponding to the due date of the Installment
of principal or portion thereof for which the substitute Bond
is being exchanged, and each such Bond shall bear interest at
the single rate applicable to and borne by such installment of
principal or portion thereof for which at is being exchanged
If only a portion of the Initial Bond is assigned and trans-
ferred, there shall be delivered to and registered in the name
of the initial registered owner substitute Bonds in exchange
for the unassigned balance of the Initial Bond in the same
manner as if the initial registered owner were the assignee
thereof If any Bond or portion thereof other than the Initial
Bond is assigned and transferred or converted each Bond issued
in exchange therefor shall have the same principal maturity
date and bear interest at the same rate as the Bond for which
it is exchanged A form of assignment shall be printed or
endorsed on each Bond, excepting the Initial Bond, which shall
be executed by the registered owner or its duly authorized
attorney or representative to evidence an assignment thereof
Upon surrender of any Bonds or any portion or portions thereof
for transfer of registration, an authorized representative of
the Paying Agent/Registrar shall make such transfer in the
Registration Books, and shall deliver a new fully registered
substitute Bond or Bonds, having the characteristics herein
described, payable to such assignee or assignees (which then
will be the registered owner or owners of such new Bond or
Bonds), or to the previous registered owner in case only a
portion of a Bond is being assigned and transferred, all an
conversion of and exchange for said assigned Bond or Bonds or
any portion or portions thereof, in the same form and manner,
and with the same effect, as provided in Section 6{d), below,
for the conversion and exchange of Bonds by any registered
owner of a Bond The Issuer shall pay the Paying Agent/Regls-
trar's standard or customary fees and charges for making such
transfer and delivery of a substitute Bond or Bonds, but the
one requesting such transfer shall pay any taxes or other
governmental charges required to be paid with respect thereto
10
The Paying Agent/Registrar shall not be requlred to make
transfers of registration of any Bond or any portion thereof
(~) during the perlod commencing w~th the close of bus~ness on
any Record Date and ending wlth the opening of buslness on the
next following principal or ~nterest payment date, or, (~)
wlth respect to any Bond or any portion thereof called for
redemption prior to maturity, wlthln 45 days prlor to ~ts
redemption date
(b) Ownership of Bonds The entlty in whose name any
Bond shall be registered ~n the Reg~stratlon Books at any t~me
shall be deemed and treated as the absolute owner thereof for
all purposes of th~s Ordlnance, whether or not such Bond shall
be overdue, and the Issuer and the Paying Agent/Registrar shall
not be affected by any notlce to the contrary, and payment of,
or on account of, the principal of, premium, ~f any, and
~nterest on any such Bond shall be made only to such registered
owner Ail such payments shall be valid and effectual to
satisfy and d~scharge the liablllty upon such Bond to the
extent of the sum or sums so pa~d
(c) Payment of Bonds and Interest The Issuer hereby
further aPPoints the Paying Agent/Registrar to act as the
paying agent for paying the principal of and ~nterest on the
Bonds, and to act as ~ts agent to convert and exchange or
replace Bonds, all as provided ~n th~s Ordinance The Paylng
Agent/Registrar shall keep proper records of all payments made
by the Issuer and the Paying Agent/Registrar wlth respect to
the Bonds, and of all conversions and exchanges of Bonds, and
all replacements of Bonds, as provided ~n th~s Ordinance
(d) Conversion and Exchange or Replacement~ Authent~-
Each Bond issued and delivered pursuant to this
cat~on
Ordinance, to the extent of the unpaid or unredeemed principal
balance or principal amount thereof, may, upon surrender of
such Bond at the principal corporate trust offlce of the Paying
Agent/Registrar, together with a written request therefor duly
executed by the registered owner or the assignee or assignees
thereof, or ~ts or their duly authorized attorneys or represen-
tatives, w~th guarantee of signatures satisfactory to the
Paying Agent/Registrar, may, at the optlon of the registered
owner or such assignee or assignees, as appropriate, be con-
verted ~nto and exchanged for fully registered bonds, w~thout
~nterest coupons, in the form prescribed ~n the FORM OF SUBSTI-
TUTE BOND set forth in th~s Ordlnance, in the denomination of
$5,000, or any integral multlple of $5,000 (subject to the
requirement hereinafter stated that each substitute Bond shall
have a s~ngle stated maturity date), as requested ~n wr~tlng by
such registered owner or such asslgnee or assignees, ~n an
aggregate principal amount equal to the unpaid or unredeemed
11
prlncapal balance or pranc~pal amount of any Bond or Bonds so
surrendered, and payable to the approprlate regastered owner,
assignee, or assagnees, as the case may be If the In~taal
Bond as assigned and transferred or converted each substatute
Bond lssued in exchange for any portion of the In~taal Bond
shall have a s~ngle stated prancapal maturlty date, and shall
not be payable ~n ~nstallments, and each such Bond shall have a
prlnc~pal maturaty date correspondlng to the due date of the
anstallment of prlncapal or portaon thereof for whach the
substatute Bond as beang exchanged, and each such Bond shall
bear ~nterest at the s~ngle rate applacable to and borne by
such ~nstallment of prlnclpal or port~on thereof for whach it
as being exchanged If a portion of any Bond (other than the
In~taal Bond) shall be redeemed prior to ~ts scheduled maturity
as provaded herein, a substltute Bond or Bonds having the same
maturaty date, bearlng anterest at the same rate, in the
denom~nataon or denominations of any antegral multiple of
$5,000 at the request of the registered owner, and ~n aggregate
prlncapal amount equal to the unredeemed port~on thereof, w~ll
be assued to the regastered owner upon surrender thereof for
cancellataon If any Bond or port~on thereof (other than the
Initial Bond) ~s assigned and transferred or converted, each
Bond ~ssued an exchange therefor shall have the same pr~ncapal
maturity date and bear ~nterest at the same rate as the Bond
for which it ~s beang exchanged Each substitute Bond shall
bear a letter and/or number to d~st~nguash at from each other
Bond The Paying Agent/Registrar shall convert and exchange or
replace Bonds as provided herean, and each fully registered
bond delivered in conversaon of and exchange for or replacement
of any Bond or portaon thereof as permatted or requlred by any
provas~on of th~s Ordanance shall constitute one of the Bonds
for all purposes of th~s Ordinance, and may agaln be converted
and exchanged or replaced It as specafacally provaded that
any Bond authenticated an conversion of and exchange for or
replacement of another Bond on or prlor to the f~rst scheduled
Record Date for the In~taal Bond shall bear ~nterest from the
date of the In~taal Bond, but each substatute Bond so authenti-
cated after such farst scheduled Record Date shall bear ~nter-
est from the interest payment date next precedlng the date on
whlch such substitute Bond was so authentacated, unless such
Bond ~s authentlcated after any Record Date but on or before
the next following interest payment date, an whlch case ~t
shall bear anterest from such next followang ~nterest payment
date, provaded, however, that ~f at the t~me of delivery of any
substitute Bond the interest on the Bond for whach ~t ~s being
exchanged as due but has not been pald, then such Bond shall
bear lnterest from the date to whach such ~nterest has been
paad ~n full THE INITIAL BOND ~ssued and delavered pursuant
to thas Ordanance ~s not required to be, and shall not be,
authentacated by the Paying Agent/Registrar, but on each
12
substitute Bond Issued in conversion of and exchange for or
replacement of any Bond or Bonds issued under this Ordinance
there shall be printed a bond, in the form substantially as
follows
"PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It ls hereby certified that this Bond has been issued
under the provisions of the Bond Ordinance described in this
Bond, and that this Bond has been issued in conversion of and
exchange for or replacement of a bond, bonds, or a portion of a
bond or bonds of an issue which originally was approved by the
Attorney General of the State of Texas and registered by the
Comptroller of Public Accounts of the State of Texas
MBANK DALLAS, NATIONAL ASSOCIATION,
DALLAS, TEXAS
Paying Agent/Registrar
Dated
By
Authorized Representative"
An authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such Bond, date and manually
sign the above Bond, and no such Bond shall be deemed to be
issued or outstanding unless such Bond is so executed The
Paying Agent/Registrar promptly shall cancel all Bonds surren-
dered for conversion and exchange or replacement No addition-
al ordinances, orders, or resolutions need be passed or adopted
by the governing body of the Issuer or any other body or person
so as to accomplish the foregoing conversion and exchange or
replacement of any Bond or portion thereof, and the Paying
Agent/Registrar shall provide for the printing, execution, and
delivery of the substitute Bonds in the manner prescribed
herein, and said Bonds shall be of type composition printed on
paper with llthographed or steel engraved borders of customary
weight and strength Pursuant to Vernon's Ann Tex Clv St
Art 717k-6, and particularly Section 6 thereof, the duty of
conversion and exchange or replacement of Bonds as aforesaid ~s
hereby imposed upon the Paying Agent/Registrar, and, upon the
execution of the above Paying Agent/Reglstrar's Authentication
Certificate, the converted and exchanged or replaced Bond shall
be valid, incontestable, and enforceable in the same manner and
with the same effect as the Initial Bond which originally was
issued pursuant to this Ordinance, approved by the Attorney
General, and registered by the Comptroller of Public Accounts
The Issuer shall pay the Paying Agent/Reglstrar's standard or
customary fees and charges for transferring, converting, and
exchanging any Bond or any portion thereof, but the one re-
questing any such transfer, conversion, and exchange shall pay
13
any taxes or governmental charges required to be paid w~th
respect thereto as a condat~on precedent to the exercase of
such prlv~lege of conversion and exchange The Paying Agent/
Registrar shall not be required to make any such conversion and
exchange or replacement of Bonds or any portion thereof (~)
during the per~od commencing with the close of bus~ness on any
Record Date and ending wath the opening of bus~ness on the next
followang pranclpal or anterest payment date, or, (~) wlth
respect to any Bond or portlon thereof called for redemption
prior to maturity, w~thin 45 days prior to ats redemptaon date
(e) In General Ail Bonds issued ~n converslon and
exchange or replacement of any other Bond or port~on thereof,
(~) shall be issued an fully registered form, without ~nterest
coupons, w~th the principal of and ~nterest on such Bonds to be
payable only to the registered owners thereof, (~) may be
redeemed prior to their scheduled maturataes, (l~a) may be
transferred and assagned, (iv) may be converted and exchanged
for other Bonds, (v) shall have the characterastlcs, (v~) shall
be sagned and sealed, and (v~) the principal of and interest
on the Bonds shall be payable, all as provided, and ~n the
manner required or indicated, ~n the FORM OF SUBSTITUTE BOND
set forth ~n th~s Ordinance
(f) Payment of Fees and Charges The Issuer hereby
covenants w~th the registered owners of the Bonds that It will
(~) pay the standard or customary fees and charges of the
Paying Agent/Regastrar for ars services w~th respect to the
payment of the prancapal of and interest on the Bonds, when
due, and (aa) pay the fees and charges of the Paylng Agent/
Registrar for services w~th respect to the transfer of regls-
trataon of Bonds, and w~th respect to the conversion and
exchange of Bonds solely to the extent above provlded ~n thls
Ordanance
(g) Substatute Pa~ang A~ent/Re~astrar The Issuer
covenants with the registered owners of the Bonds that at all
times while the Bonds are outstanding the Issuer w~ll provide a
competent and legally qualafaed bank, trust company, fananc~al
· nstitut~on, or other agency to act as and perform the services
of Paying Agent/Registrar for the Bonds under th~s Ordinance,
and that the Payang Agent/Registrar w~ll be one entity The
Issuer reserves the right to, and may, at lts option, change
the Payang Agent/Regastrar upon not less than 120 days wratten
not~ce to the Paying Agent/Regastrar, to be effectave not later
than 60 days prior to the next princapal or interest payment
date after such notice In the event that the entity at any
tame acting as Paying Agent/Registrar (or ~ts successor by
merger, acquasition, or other method) should resagn or other-
w~se cease to act as such, the Issuer covenants that promptly
14
it will appoint a competent and legally qualified bank, trust
company, financial institution, or other agency to act as
Paying Agent/Registrar under this Ordinance Upon any change
in the Paying Agent/Registrar, the previous Paying Agent/Regis-
trar promptly shall transfer and deliver the Registration Books
(or a copy thereof), along with all other pertinent books and
records relating to the Bonds, to the new Paying Agent/Regis-
trar designated and appointed by the Issuer Upon any change
in the Paying Agent/Registrar, the Issuer promptly will cause a
written notice thereof to be sent by the new Paying Agent/Regi-
strar to each registered owner of the Bonds, by United States
mall, first-class postage prepaid, which notice also shall give
the address of the new Paying Agent/Registrar By accepting
the position and performing as such, each Paying Agent/Regis-
trar shall be deemed to have agreed to the provisions of this
Ordinance, and a certified copy of this Ordinance shall be
delivered to each Paying Agent/Registrar
Section 7 FORM OF SUBSTITUTE BONDS The form of all
Bonds issued in conversion and exchange or replacement of any
other Bond or portion thereof, including the form of Paying
Agent/Reglstrar's Bond to be printed on each of such Bonds, and
the Form of Assignment to be printed on each of the Bonds,
shall be, respectively, substantially as follows, with such
appropriate variations, omissions, or insertions as are per-
mltted or required by this Ordinance
FORM OF SUBSTITUTE BOND
NO
UNITED STATES OF AMERICA PRINCIPAL AMOUNT
STATE OF TEXAS $
COUNTY OF DENTON
CITY OF DENTON GENERAL OBLIGATION BOND
SERIES 1987
INTEREST RATE
MATURITY DATE
CUSIP NO
ON THE MATURITY DATE specified above the CITY OF DENTON,
· n Denton County, Texas (the "Issuer"), being a a political
subdivision of the State of Texas, hereby promises to pay to
or to the registered assignee hereof (either being hereinafter
called the "registered owner") the principal amount of
and to pay interest thereon from APRIL 1, 1987, to the maturity
date specified above, or the date of redemption prior to
15
maturity, at the interest rate per annum specified above, with
~nterest being payable on JANUARY 1, 1988, and semlannually on
each JULY 1 and JANUARY 1 thereafter, except that if the date
of authentication of th~s Bond is later than DECEMBER 15, 1987,
such principal amount shall bear ~nterest from the interest
payment date next preceding the date of authentication, unless
such date of authentlcatlon is after any Record Date (herein-
after defined) but on or before the next following interest
payment date, in which case such principal amount shall bear
~nterest from such next following interest payment date
THE PRINCIPAL OF AND INTEREST ON thls Bond are payable in
lawful money of the Un,ted States of America, without exchange
or collection charges The principal of this Bond shall be
paid to the registered owner hereof upon presentation and
surrender of thls Bond at maturity or upon the date f~xed for
its redemption prior to maturity, at the principal corporate
trust office of MBANK DALLAS, NATIONAL ASSOCIATION, DALLAS,
TEXAS, which is the "Paying Agent/Registrar" for this Bond
The payment of ~nterest on this Bond shall be made by the
Paying Agent/Registrar to the registered owner hereof on each
interest paymer~t date by check, dated as of such ~nterest
payment date, drawn by the Paying Agent/Reglstrar on, and
payable solely from, funds of the Issuer required by the
resolution author~zlng the ~ssuance of the Bonds (the "Bond
Ordinance") to be on deposit wlth the Paying Agent/Registrar
for such purpose as hereinafter provided, and such check shall
be sent by the Paying Agent/Registrar by United States mall,
f~rst-class postage prepaid, on each such ~nterest payment
date, to the registered owner hereof, at the address of the
registered owner, as it appeared on the 15th of the month next
preceding each such date (the "Record Date") on the Reglstra-
tlon Books kept by the Paying Agent/Reglstrar, as hereinafter
described Any accrued interest due upon the redemption of
this Bond prior to maturity as provided herein shall be paid to
the registered owner at the principal corporate trust office of
the Paying Agent/Registrar upon presentation and surrender of
th~s Bond for redemption and payment at the principal corporate
trust off~ce of the Paying Agent/Registrar The Issuer cove-
nants with the registered owner of th~s Bond that on or before
each principal payment date, interest payment date, and accrued
lnterest payment date for th~s Bond ~t w~ll make available to
the Paying Agent/Registrar, from the "Interest and S~nklng
Fund" created by the Bond Ordinance, the amounts required to
provide for the payment, in immediately avallable funds, of all
principal of and interest on the Bonds, when due
IF THE DATE for the payment of the principal of or inter~
est on th~s Bond shall be a Saturday, Sunday, a legal holiday,
16
or a day on which banking institutions in the City where the
Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall
be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking institutions are
authorized to close, and payment on such date shall have the
same force and effect as if made on the original date payment
was due
THIS BOND is one of an issue of Bonds initially dated
APRIL 1, 1987, authorized an accordance w~th the Constitution
and laws of the State of Texas in the principal amount of
$3,500,000, FOR THE PURPOSE OF THE ACQUISITION OF PROPERTY AND
MAKING IMPROVEMENTS FOR PUBLIC PURPOSES IN SAID CITY, TO-WIT
$1,175,000 FOR STREET AND TRAFFIC CONTROL IMPROVEMENTS,
$890,000 FOR DRAINAGE IMPROVEMENTS, $185,000 FOR EXPANSION OF
THE CITY ANIMAL CONTROL CENTER, and $1,250,000 FOR PARK IM-
PROVEMENTS, INCLUDING ATHLETIC FIELDS AND NEIGHBORHOOD AND
SENIOR CITIZENS COMMUNITY CENTERS
ON JULY 1, 1997, or on any interest payment date there-
after, the Bonds of this Series may be redeemed prior to their
scheduled maturities, at the option of the Issuer, with funds
derived from any available and lawful source, as a whole, or in
part, and, if in part, the particular Bonds, or portions
thereof, to be redeemed shall be selected and designated by the
Issuer (provided that a portion of a Bond may be redeemed only
in an Integral multiple of $5,000), at the redemption price of
the par or principal amount thereof, plus accrued interest to
the date fixed for redemption
AT LEAST 30 days prior to the date fixed for any redemp-
tion of Bonds or portions thereof prior to maturity a written
notice of such redemption shall be published once in a finan-
cial publication, journal, or reporter of general circulation
among securities dealers in The City of New York, New York
(including, but not limited to, The Bond Buyer and The Wall
Street Journal), or in the State of Texas (including, but not
limited to, The Texas Bond Reporter) Such notice also shall
be sent by the Paying Agent/Registrar by United States mall,
first-class postage prepaid, not less than 30 days prior to the
date fixed for any such redemption, to the registered owner of
each Bond to be redeemed at its address as it appeared on the
45th day prior to such redemption date, provided, however, that
the failure to send, mall, or receive such notice, or any
defect therein or in the sending or mailing thereof, shall not
affect the validity or effectiveness of the proceedings for the
redemption of any Bond, and it is hereby specifically provided
that the publication of such notice as required above shall be
the only notice actually required in connection with or as a
17
prerequisite to the redemption of any Bonds or portions there-
of By the date fixed for any such redemption due provision
shall be made with the Paying Agent/Registrar for the payment
of the required redemption price for the Bonds or portions
thereof which are to be so redeemed, plus accrued interest
thereon to the date flxed for redemption If such written
notice of redemption is published and if due provision for such
payment is made, all as provided above, the Bonds or portions
thereof which are to be so redeemed thereby automatically shall
be treated as redeemed prlor to their scheduled maturities, and
they shall not bear Interest after the date fixed for redemp-
tion, and they shall not be regarded as being outstanding
except for the right of the registered owner to receive the
redemption price plus accrued interest from the Paying Agent/
Registrar out of the funds provided for such payment If a
portion of any Bond shall be redeemed a substitute Bond or
Bonds having the same maturity date, bearing interest at the
same rate, in any denomination or denominations in any integral
multiple of $5,000, at the written request of the registered
owner, and in aggregate prlnclpal amount equal to the unre-
deemed portion thereof, wall be issued to the registered owner
upon the surrender thereof for cancellation, at the expense of
the Issuer, all as provided in the Bond Ordinance
THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTE-
GRAL MULTIPLE OF $5,000 may be assigned and shall be trans-
ferred only in the Registration Books of the Issuer kept by the
Paying Agent/Registrar acting in the capacity of registrar for
the Bonds, upon the terms and conditions set forth in the Bond
Ordinance Among other requirements for such assignment and
transfer, this Bond must be presented and surrendered to the
Paying Agent/Registrar, together with proper instruments of
asslgnment, in form and with guarantee of signatures satisfac-
tory to the Paying Agent/Reglstrar, evidencing assignment of
thls Bond or any portion or portions hereof in any integral
multiple of $5,000 to the assignee or assignees in whose name
or names this Bond or any such portion or portions hereof is or
are to be transferred and registered The form of Assignment
printed or endorsed on this Bond shall be executed by the
reglstered owner or lts duly authorized attorney or representa-
tive,to evidence the assignment hereof A new Bond or Bonds
payable to such assignee or assignees (which then will be the
new registered owner or owners of such new Bond or Bonds), or
to the previous registered owner in the case of the assignment
and transfer of only a portion of this Bond, may be delivered
by the Paying Agent/Registrar in conversion of and exchange for
this Bond, all in the form and manner as provided in the next
paragraph hereof for the conversion and exchange of other
Bonds The Issuer shall pay the Paying Agent/Reglstrar's
standard or customary fees and charges for making such
18
transfer, but the one requesting such transfer shall pay any
taxes or other governmental charges required to be paid with
respect thereto The Paying Agent/Registrar shall not be
required to make transfers of registration of this Bond or any
portion hereof (1) during the period commencing with the close
of business on any Record Date and ending w~th the opening of
business on the next following principal or interest payment
date, or, (il) with respect to any Bond or any portion thereof
called for redemption prior to maturity, within 45 days prior
to its redemption date The registered owner of this Bond
shall be deemed and treated by the Issuer and the Paying
Agent/Registrar as the absolute owner hereof for all purposes,
Including payment and discharge of liability upon this Bond to
the extent of such payment, and the Issuer and the Paying
Agent/Registrar shall not be affected by any notice to the
contrary
ALL BONDS OF THIS SERIES are ~ssuable solely as fully
registered bonds, without interest coupons, in the denomination
of any integral multiple of $5,000 As provided in the Bond
Ordinance, this Bond, or any unredeemed portion hereof, may, at
the request of the registered owner or the assignee or as-
signees hereof, be converted into and exchanged for a like
aggregate principal amount of fully registered bonds, without
interest coupons, payable to the appropriate regIstered owner,
assignee, or assignees, as the case may be, having the same
maturity date, and bearing interest at the same rate, in any
denomination or denominations in any integral multiple of
$5,000 as requested in writing by the appropriate registered
owner, assignee, or assignees, as the case may be, upon sur-
render of this Bond to the Paying Agent/Registrar for cancella-
tion, all in accordance with the form and procedures set forth
in the Bond Ordinance The Issuer shall pay the Paying Agent/
Reglstrar's standard or customary fees and charges for trans-
ferring, converting, and exchanging any Bond or any portion
thereof, but the one requesting such transfer, conversion, and
exchange shall pay any taxes or governmental charges required
to be paid with respect thereto as a condition precedent to the
exercise of such privilege of conversion and exchange The
Paying Agent/Registrar shall not be required to make any such
conversion and exchange (1) during the period commencing with
the close of business on any Record Date and ending with the
opening of business on the next following principal or interest
payment date, or, (ii) with respect to any Bond or portion
thereof called for redemption prior to maturity, within 45 days
prior to its redemption date
IN THE EVENT any Paying Agent/Registrar for the Bonds is
changed by the Issuer, resigns, or otherwise ceases to act as
such, the Issuer has covenanted in the Bond Ordinance that it
19
promptly will appoint a competent and legally qualified substi-
tute therefor, and promptly w~ll cause written notlce thereof
to be mailed to the registered owners of the Bonds
against all taxable
pledged irrevocably
scribed by law
IT IS HEREBY certified, recited, and covenanted that thls
Bond has been duly and validly voted, authorized, ~ssued, sold,
and delivered, that all acts, conditions, and th~ngs required
or proper to be performed, ex~st, and be done precedent to or
~n the authorization, issuance, and delivery of this Bond have
been performed, existed, and been done ~n accordance w~th law,
that th~s Bond lsa general obl~gatlon of the Issuer, issued on
the full faith and credit thereof, and that annual ad valorem
taxes sufficient to provide for the payment of the ~nterest on
and principal of th~s Bond, as such ~nterest comes due and such
prlnc~pal matures, have been lev~ed and ordered to be lev~ed
property an the Issuer, and have been
for such payment, within the l~m~t pre-
BY BECOMING the registered owner of th~s Bond, the regis-
tered owner thereby acknowledges all of the terms and provi-
sions of the Bond Ordinance, agrees to be bound by such terms
and provisions, acknowledges that the Bond Ordinance ~s duly
recorded and available for inspection ~n the official m~nutes
and records of the governing body of the Issuer, and agrees
that the terms and provisions of this Bond and the Bond Ordi-
nance constitute a contract between each registered owner
hereof and the Issuer
IN WITNESS WHEREOF, the Issuer has caused th~s Bond to be
s~gned with the facsimile slgnature of the Mayor of the Issuer
and countersigned with the facsimile s~gnature of the Clty
Secretary of the Issuer, and has caused the official seal of
the Issuer to be duly ~mpressed, or placed ~n facsimile, on
th~s Bond
(facsimile signature)
City Secretary,
C~ty of Denton, Texas
(facsimile s~nature)
Mayor,
Clty of Denton, Texas
(CITY SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It ~s hereby certified that th~s Bond has been issued
under the provisions of the Bond Ordinance described in thls
Bond, and that this Bond has been ~ssued ~n conversion of and
exchange for or replacement of a bond, bonds, or a port~on of a
20
bond or bonds of an assue whach oraganally was approved by the
Attorney General of the State of Texas and regastered by the
Comptroller of Publac Accounts of the State of Texas
MBANK DALLAS, NATIONAL ASSOCIATION,
DALLAS, TEXAS
Payang Agent/Regastrar
Dated By
Authorized Representative
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersagned regastered owner of
thas Bond, or duly authorazed representatave or attorney
thereof, hereby assagns this Bond to
! !
(Assignee's Social (prant or typewrate Assagnee's name and
Security or Taxpayer address, lncludang zap code)
Identaflcataon Number)
and hereby irrevocably constitutes and appoints
attorney to transfer the registration of this Bond on the
Payang Agent/Regastrar's Registration Books wath full power of
substltutaon an the premises
Dated
Sagnature Guaranteed
NOTICE Thas sagnature must bu
guaranteed by a member of the
New York Stock Exchange or a
commercaal bank or trust
company
Regastered Owner
NOTICE Thas sagnature must
correspond with the name of
the Regastered Owner appear-
lng on the face of thas Bond
Section 8 TAX LEVY A specaal Interest and S~nkang Fund
(the "Interest and Sinkang Fund") as hereby created solely for
the beneflt of the Bonds, and the Interest and Sanklng Fund
shall be established and maintaaned by the Issuer at an offi-
cial deposltory bank of the Issuer The Interest and Slnkang
Fund shall be kept separate and apart from all other funds and
21
accounts of the Issuer, and shall be used only for paying the
interest on and principal of the Bonds All ad valorem taxes
levied and collected for and on account of the Bonds shall be
deposited, as collected, to the credit of the Interest and
Sinking Fund During each year while any of the Bonds or
interest thereon are outstanding and unpaid, the governing
body of the Issuer shall compute and ascertain a rate and
amount of ad valorem tax which will be sufficient to raise and
produce the money required to pay the interest on the Bonds as
such interest becomes due, and to provide and maintain a
sinking fund adequate to pay the principal of its Bonds as such
principal matures (but never less than 2% of the original
principal amount of the Bonds as a sinking fund each year), and
said tax shall be based on the latest approved tax rolls of the
Issuer, with full allowance being made for tax delinquencies
and the cost of tax collection Said rate and amount of ad
valorem tax is hereby levied, and is hereby ordered to be
levied, against all taxable property in the Issuer for each
year while any of the Bonds or interest thereon are outstanding
and unpaid, and said tax shall be assessed and collected each
such year and deposited to the credit of the aforesaid Interest
and Sinking Fund Said ad valorem taxes sufficient to provide
for the payment of the interest on and principal of the Bonds,
as such interest comes due and such principal matures, are
hereby pledged for such payment, within the limit prescribed by
law
Section 10 DEFEASANCE OF BONDS (a) Any Bond and the
interest thereon shall be deemed to be paid, retired, and no
longer outstanding (a "Defeased Bond") within the meaning of
this Ordinance, except to the extent provided in subsection (d)
of this Section, when payment of the principal of such Bond,
plus interest thereon to the due date (whether such due date be
by reason of maturity, upon redemption, or otherwise) either
(1) shall have been made or caused to be made in accordance
with the terms thereof (including the giving of any required
notice of redemption), or (11) shall have been provided for on
or before such due date by irrevocably depositing with or
making available to the Paying Agent/Registrar for such payment
(1) lawful money of the United States of America sufficient to
make such payment or (2) Government Obligations which mature as
to principal and Interest in such amounts and at such times as
will insure the availability, without relnvestment, of suffi-
cient money to provide for such payment, and when proper
arrangements have been made by the Issuer with the Paying
Agent/Registrar for the payment of its services until all
Defeased Bonds shall have become due and payable At such time
as a Bond shall be deemed to be a Defeased Bond hereunder, as
aforesaid, such Bond and the interest thereon shall no longer
be secured by, payable from, or entitled to the benefits of,
22
the ad valorem taxes herein levied and pledged as provided in
this Ordinance, and such principal and interest shall be
payable solely from such money or Government Obligations
(b) Any moneys so deposited with the Paying Agent/Regis-
trar may at the written direction of the Issuer also be in-
vested in Government Obligations, maturing in the amounts and
times as hereinbefore set forth, and all income from such
Government Obligations received by the Paying Agent/Registrar
which is not required for the payment of the Bonds and interest
thereon, with respect to which such money has been so de-
posited, shall be turned over to the Issuer, or deposited as
directed in writing by the Issuer
(c) The term "Government Obligations" as used in this
Section shall mean direct obligations of the United States of
America, including obligations the principal of and interest on
which are unconditionally guaranteed by the United States of
America, which may be United States Treasury obligations such
as its State and Local Government Series, which may be in
book-entry form
(d) Until all Defeased Bonds shall have become due and
payable, the Paying Agent/Registrar shall perform the services
of Paying Agent/Registrar for such Defeased Bonds the same as
if they had not been defeased, and the Issuer shall make proper
arrangements to provide and pay for such services as required
by this Ordinance
Section 11 DAMAGED, MUTILATED, LOST, STOLEN, OR DE-
STROYED BONDS (a) Replacement Bonds In the event any
outstanding Bond is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be
printed, executed, and delivered, a new bond of the same
principal amount, maturity, and interest rate, as the damaged,
mutilated, lost, stolen, or destroyed Bond, ~n replacement for
such Bond in the manner hereinafter provided
(b) Application for R~placement Bonds Application for
replacement of damaged, mutilated, lost, stolen, or destroyed
Bonds shall be made by the registered owner thereof to the
Paying Agent/Registrar In every case of loss, theft, or
destruction of a Bond, the registered owner applying for a
replacement bond shall furnish to the Issuer and to the Paying
Agent/Registrar such security or indemnity as may be required
by them to save each of them harmless from any loss or damage
with respect thereto Also, in every case of loss, theft, or
destruction of a Bond, the registered owner shall furnish to
the Issuer and the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of such Bond,
23
as the case may be In every case of damage or mutilation of a
Bond, the registered owner shall surrender to the Paying
Agent/Registrar for cancellatlon the Bond so damaged or muti-
lated
(c) No Default Occurred Notwithstanding the foregoing
prov~slons of th~s Section, in the event of any such Bond shall
have matured, and no default has occurred whlch ls then con-
t~nu~ng in the payment of the prlnclpal of, redemption premlum,
~f any, or ~nterest on the Bond, the Issuer may authorlze the
payment of the same (w~thout surrender thereof except ~n the
case of a damaged or mutilated Bond) ~nstead of ~ssu~ng a
replacement Bond, provided security or ~ndemnlty ~s furnished
as above provided ~n th~s Section
(d) Charge for Issuing Replacement Bonds Prlor to the
~ssuance of any replacement bond, the Paying Agent/Registrar
shall charge the registered owner of such Bond w~th all legal,
printing, and other expenses ~n connection therewith Every
replacement bond ~ssued pursuant to the provisions of th~s
Section by v~rtue of the fact that any Bond ls lost, stolen, or
destroyed shall constitute a contractual obllgat~on of the
Issuer whether or not the lost, stolen, or destroyed Bond shall
be found at any time, or be enforceable by anyone, and shall be
entitled to all the beneflts of thls Ordinance equally and
proportionately wlth any and all other Bonds duly ~ssued under
th~s Ordinance
(e) Authority for Issulng Replacement Bonds In accor-
dance with Section 6 of Vernon's Ann Tex C~v St Art
717k-6, thls Section of th~s Ordinance shall constitute author-
~ty for the ~ssuance of any such replacement bond w~thout
necessity of further action by the governing body of the Issuer
or any other body or person, and the duty of the replacement of
such bonds ~s hereby authorized and ~mposed upon the Paying
Agent/Registrar, and the Paying Agent/Registrar shall authen-
ticate and deliver such Bonds in the form and manner and w~th
the effect, as provided in Sectlon 6(d) of th~s Ordinance for
Bonds ~ssued ~n conversion and exchange for other Bonds
Section 12 COVENANTS REGARDING TAX-EXEMPT STATUS OF
BONDS The Issuer hereby covenants to take such action o£
re~a~n from such action necessary to ensure the status of the
Bonds as obligations described ~n section 103 of the Internal
Revenue Code of 1986 or any predecessor thereof In partlcu-
lar, but not by way of l~m~tatlon, the Issuer covenants as
follows
(a) None of the proceeds of the Bonds (lnclud~ng
~nvestment earnings thereon) w~ll be used, d~rectly or
24
~nd~rectly, ~n the trade or buslness of a person, other
than the Issuer For purposes of the foregoing, any use
of such proceeds in any manner contrary to the guldel~nes
set forth ~n Revenue Procedures 82-14 and 82-15, 1982-1
C B 459, 460, or any amendments, revls~ons or supplements
thereto, shall constltute the use of such proceeds ~n the
trade or bus~ness of such person,
(b) None of the proceeds of the Bonds (~nclud~ng
~nvestment earnings thereon) w~ll be used, d~rectly or
~nd~rectly, to f~nance loans to any persons,
(c) Not by way of l~m~tatlon, the Issuer w~ll take
such action or will refraln from any actlon which would
adversely affect the exemption from federal lncome taxa-
t~on of the ~nterest pa~d on the Bonds, ~nclud~ng without
l~m~tat~on any action that would permit any of the Bonds
to be treated as "private actlv~ty bonds" w~thin the
meaning of section 141 of the Code or as "federally
guaranteed" within the meaning of sectlon 149(b) of the
Code, and w~ll take, or require to be taken, such acts as
may be reasonably w~thln ~ts ability and as may from t~me
to t~me be required under applicable law or regulation to
continue to cause ~nterest on the Bonds to be excludable
from gross ~ncome of the holder, ~nclud~ng the preparation
and f~l~ng of any statements or ~nformat~on reports
required to be filed by the Issuer ~n order to maintain
the tax-exempt status of the ~nterest on the Bonds, and
(d) The Issuer has not taken, has no present ~nten-
t~on of taking any action and knows of no action taken or
~ntended which would cause interest on the Bonds to be
~ncludable ~n the gross ~ncome of any bondholders for
federal ~ncome tax purposes
Section 13 COVENANTS REGARDING ARBITRAGE (a) A Rebate
Fund ~s hereby established by the Issuer Such Fund shall be
for the benefit of the United States of America The Rebate
Fund Ks established for the purpose of compliance w~th section
148 of the Internal Revenue Code of 1986 (the Code")
(b) At the close of each "Bond Year," the Issuer shall
compute the amount of "Excess Earnings," ~f any, for the per~od
beginning on the date of delivery of the Initial Bond and
end,lng at the close of such "Bond Year" and transfer to the
Rebete Fund an amount equal to the d~fference, ~f any, between
the amount then in the Rebate Fund and the Excess Earnings so
computed The term "Bond Year" means w~th respect to the Bonds
each one-year period ending on the annlversary of the date of
delivery of the Initial Bond If, at the close of any Bond
25
Year, the amount in the Rebate Fund exceeds the amount that
would be required to be paid to the United States of America
under paragraph (d) below ~f the Bonds had been paid ~n full,
such excess may be transferred from the Rebate Fund and paid to
the Issuer
(c) In general, "Excess Earnings" for any per~od of time
means the sum of
(1) the excess of --
(A) the aggregate amount earned during such
period of time on all "Nonpurpose Oblzgatlons"
(including gains on the dzsposltzon of such Obll-
gatlons) in whzch "Gross Proceeds" of the issue are
invested (other than amounts attrmbutable to an
excess descrlbed in this subparagraph (c) (1)), over
(B) the amount that would have been earned
during such period of t~me if the "Yield" on such
Nonpurpose Obligations (other than amounts attrib-
utable to an excess described ~n this subparagraph
(c) (1)) had been equal to the yield on the issue,
plus
(1~) any zncome during such period of time attrib-
utable to the excess described in subparagraph (c) (1)
above
"Excess Earnings" will not include amounts, if any, which need
not be taken into account under the speczal rules of section
148(f) (4) (A) and (B) of the Code relating to bona fide debt
service funds and the slx-month temporary investment perzod
The terms "Nonpurpose Obligations," "Gross Proceeds" and
"Yield" shall have the meanings prescrzbed by section 148 of
the Code and shall be applied in the manner prescrlbed in such
section
(d) The Issuer shall pay to the Un~ted States of America
at least once every five-years an amount that ensures that at
least 90 percent of the Excess Earnings from the date of
delivery of the Bonds to the close of the period for which the
payment ls being made w~ll have been pald The Issuer shall
pay to the United States of America not later than 60 days
after the Bonds have been pa~d in full 100 percent of the
amount then required to be paid under section 148(f) of the
Code as a result of Excess Earnings
(e) The Issuer shall keep such records as will enable the
Issuer to fulfill zts responslbll~tzes under this section and
26
section 148(f) of the Code and shall retain such records for at
least slx years following the final payment of principal and
interest on the Bonds
(f) The Issuer will not use any portion of the proceeds
of the Bonds directly or indirectly to acquire "higher y~eldlng
investmentS," or to replace funds which were used directly or
~ndlrectly to acquire "higher yielding investments" The term
higher y~eldlng investments means any investment property (as
defzned in section 148(b) (2) of the Code) which produces a
yield over the term of the issue which is materially higher
than the yield on the issue (as defined above) The foregoing
limitation on higher yielding investments shall not apply to --
(1) proceeds of the Bonds invested for a reasonable
temporary period of 3 years or less until such proceeds
are needed for the purpose for which the bonds are issued,
or
(2) amounts invested in a bona fide debt service
fund if the gross earnings on such fund are less than
$100,000 in any bond year
(g) The Issuer covenants to restrict the use of Initial
Bond proceeds in such manner and to such extent, as may be
necessary, so that the Bonds will not constitute arbitrage
bonds under section 148 of the Code Any authorized represen-
tative of the Issuer having responsibility with respect to the
issuance of the Bonds is authorized and directed, alone or in
con]unction with any other official, employee or consultant of
the Issuer to give an appropriate certificate on behalf of the
Issuer, for inclusion in the transcript of proceedings for the
Bonds, setting forth the facts, estimates and circumstances and
reasonable expectations pertaining to section 148 of the Code
and, to the extent applicable, section 149(d) of the Code
(h) The requirements of this Section are subject to, and
shall be interpreted in accordance with section 148 of the
Code
Section 14 CUSTODY, APPROVAL, AND REGISTRATION OF BONDS,
BOND COUNSEL'S OPINION, AND CUSIP NUMBERS The Mayor of the
Issuer is hereby authorized to have control of the Initial Bond
issued hereunder and all necessary records and proceedings
pertaining to the Initial Bond pending its delivery and lts
investigation, examination, and approval by the Attorney
General of the State of Texas, and 1ts registration by the
Comptroller of Public Accounts of the State of Texas Upon
registration of the Initial Bond said Comptroller of Public
Accounts (or a deputy designated in writing to act for said
27
Comptroller) shall manually sagn the Comptroller's Registration
Certificate on the InKtlal Bond, and the seal of said
Comptroller shall be impressed, or placed Kn facsKmKle, on the
InltKal Bond The approvKng legal oplnKon of the Issuer's Bond
Counsel and the assigned CUSIP numbers may, at the optKon of
the Issuer, be printed on the Inltaal Bond or on any Bonds
assued and delivered Kn conversion of and exchange or replace-
ment of any Bond, but neither shall have any legal effect, and
shall be solely for the convenience and Knformatlon of the
registered owners of the Bonds
SectKon 15 SALE OF INITIAL BOND
hereby sold and shall be delKvered to
GarrKson, for cash for the par value
The Initial Bond
Lovett M~tchell Webb
thereof and accrued
~nterest thereon to date of delavery It is hereby offKc~ally
found, determKned, and declared that the Inltlal Bond has been
sold at public sale to the b~dder offering the lowest lnterest
cost, after receiving sealed bKds pursuant to an Off~cKal
NotKce of Sale and BKddKng InstructKons and Offlcaal Statement
dated March 31, 1987, prepared and dKstributed an connectaon
wKth the sale of the InKtKal Bond Sa~d OffKclal Notace of
Sale and B~dding InstructKons and OffKcKal Statement, and any
addenda, supplement, or amendment thereto have been and are
hereby approved by the Issuer, and their use ~n the offer and
sale of the Bonds Ks hereby approved It Ks further offKc~ally
found, determKned, and declared that the statements and repre-
sentations contained Kn saKd Official Not~ce of Sale and
OffKcial Statement are true and correct Kn all materKal re-
spects, to the best knowledge and belief of the C~ty Council
and the Issuer
SectKon 14 FURTHER PROCEDURES The Mayor of the Issuer,
the CKty Secretary Secretary of the Issuer, and all other
offKcers, employees, and agents of the Issuer, and each of
them, shall be and they are hereby expressly authorized,
empowered, and directed from t~me to t~me and at any t~me to do
and perform all such acts and things and to execute, acknowl-
edge, and deliver in the na~e and under the corporate seal and
on behalf of the Issuer all such ~nstruments, whether or not
hereKn mentKoned, as may be necessary or desirable ~n order to
carry out the terms and provisKons of thKs Bond OrdKnance, the
Bonds, the sale of the Bonds, and the NotKce of Sale and
Official Statement In case any officer whose sKgnature shall
appear on any Bond shall cease to be such officer before the
delKvery of such Bond, such s~gnature shall nevertheless be
valKd and sufficKent for all purposes the same as Kf such
officer had remained in offKce untK1 such delivery
28
GENERAL CERTIFICATE
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of the C~ty of Denton, Texas
(the "Issuer") hereby certify as follows
1 That th~s certificate ~s executed for and on behalf of
sa~d Issuer w~th reference to the ~ssuance of the proposed Clty
of Denton General Obligation Bonds, Ser~es 1987, dated April 1,
1987, in the aggregate principal amount of $3,500,000, author-
~zed by ordinance of the C~ty Councll on April 21, 1987,
ln~t~ally ~ssued and delivered as a s~ngle fully registered
bond payable ~n lnstallments to the reglstered owner, but
convertible into fully registered bonds ~n any multiple of
$5,000 (the "Bonds")
2 That sa~d Issuer ~s a duly ~ncorporated Home Rule
C~ty, having more than 5000 ~nhab~tants, operating and ex~st~ng
under the Constitution and laws of the State of Texas and the
duly adopted Home Rule Charter of sa~d C~ty, which Charter has
not been changed or amended s~nce the passage of the ordinance
authorizing the ~ssuance of the Certificates of obligation,
Ser~es 1987, dated January 1, 1987
3 That no l~t~gat~on of any nature has ever been f~led
pertaining to, affecting, questioning, or contestlng (a) the
elect~on which authorized the Bonds described ~n paragraph 1 of
this certificate, (b) the ~ssuance, execution, dellvery,
payment, security, or validity of the Bonds, (c) the authorlty
of the governing body and the officers of sa~d Issuer to ~ssue,
execute, and deliver the Bonds, (d) the validity of the corpor-
ate existence of sa~d Issuer, (e) the current Tax Rolls of sa~d
Issuer, or (f) the Home Rule Charter of sa~d Issuer, and that
no l~tlgat~on ~s pending pertaining to, affecting, questioning,
or contesting the current boundaries of sald Issuer
4 That ~n all matters relating to ordering, glv~ng
not~ce, and holding the elect~on at whlch the proposed bonds
were authorized, the City compiled w~th the Federal Voting
R~ghts Act of 1975 and the applicable parts of the Texas
Elect~on code, including particularly Section 1 0Sa of the
Texas Elect~on Code pertaining to b~l~ngual requirements
5 That attached to th~s certificate and marked "Exhibit
A" ~s a true, full, and correct schedule and statement of the
aforesaid proposed Bonds, and of all presently outstanding tax
~ndebtedness of sa~d Issuer
6 That the currently effective ad valorem tax appraisal
roll of said Issuer (the "Tax Roll") ~s the Tax Roll prepared
and approved during the calendar year 1986, being the most
recently approved Tax Roll of said Issuer, that the taxable
property ~n said Issuer has been appraised, assessed, and
valued as requlred and provlded by the Texas Const~tutlon and
Property Tax Code (collectively, "Texas law"), that the Tax
Roll for sa~d year has been submitted to the C~ty Council of
sa~d Issuer as requlred by Texas law, and has been approved and
recorded by said C~ty Councll, and accordlng to the Tax Roll
for sa~d year the net aggregate taxable value of taxable
property ~n said Issuer (after deducting the amount of all
applicable exemptions required or authorized under Texas law),
upon which the annual ad valorem tax of sald Issuer has been
~mposed and levied, ~s $1,820,463,940
7 That
statements and
dated March 31,
to the best of our knowledge and belief the
~nformation set forth in the Official Statement
1987, pertaining to the Bonds and the Clty, are
true and correct
SIGNED AND SEALED the
~i~y ~ec~etary
(SEAL)
day of , 1987
"EXHIBIT A"
General Obligation Bonds, Series 1987, dated 4/1/87, bearang
anterest, and maturang as set forth an the Ordanance authoraz-
ang said Bonds
General Oblagatlon Refundang Bonds, Seraes 1985, dated 11/1/85,
now outstandang an the prancapal amount of $22,866,730, bearang
anterest, and maturang an the amounts on February 15 of the
years, as follows
(CURRENT INTEREST BONDS, $21,430,000)
6 30% 1,910M-88,
6 60% 2 365M-89
6 90% t 760M-90
7 10% 1 755M-91
7 30% 1 745M-92
7 50% 1 765M-93
7 70% 1 820M-94
7 90% 1 740M-95
8 00% 1 825M-96
8 10% 1 745M-97,
8 20% 1 480M-98,
8 30% 1,520M-99
(CAPITAL APPRECIATION BONDS, $1,436,730 25)
8 70% $450,807 70 - 2000
8 80% 326,699 60 - 2001
9 00% 273,727 95 - 2002
9 10% 232,457 50 - 2003
9 10% 153,037 50 - 2004
Certaflcates of Oblagation, Seraes 1987, dated January 1, 1987,
now outstandang In the prancapal amount of $500,000, bearang
anterest, and maturlng ~n the amounts on July 1 of the years,
as follows
9
8
6
6
6
6
6
6
6
6
7
6
00% 25M-88/92,
00% 25M-93
20% 25M-94
30% 25M-95
40% 25M-96
50% 25M-97
60% 25M-98
70% 25M-99
80% 25M-2000,
90% 25M-01,
00% 25M-02/06,
00% 25M-07
Total outstandlng General Oblagataon Indebtedness -
$23,366,730 25
CERTIFICATE FOR
ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF
CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1987,
LEVYING TEE TAX TO PAY SANE, AND APPROVING AND AUTHORIZING
INSTRUMENTS AND PROCEDURES RELATING THERETO
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, hereby certify
as follows
1 The City Council of sa~d C~ty convened ~n
REGULAR MEETING ON THE 21ST DAY OF APRIL, 1987,
at the Municipal Building (City Hall), and the roll was called
of the duly constituted officers and members of said City
Council, to-wit
Jennifer K Walters,
J~m Alexander
Llnnie McAdams
Jane Hopkins
City Secretary
Ray Stephens, Mayor
Bob Gorton
Randall Boyd
Hugh Ayer
and all of said persons were present, except the following
absentees , thus constI-
tuting a quorum Whereupon, among other business, the follow-
lng was transacted at said Meeting a written
ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF
CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1987,
LEVYING THE TAX TO PAY SANE, AND APPROVING AND AUTHORIZING
INSTRUMENTS AND PROCEDURES RELATING THERETO
was duly introduced for the consideration of sald City Council
and duly read It was then duly moved and seconded that sald
Ordinance be passed; and, after due dIscussion, said motlon,
carrying with it the passage of said Ordinance, prevailed and
carrled by the following vote
AYES
Ail members of said City Council
shown present above voted "Aye"
NOES None
2 That a true, full, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this
Certificate; that said Ordlnance has been duly recorded in said
Clty Council's minutes of said Meetlng, that the above and
foregoing paragraph lsa true, full, and correct excerpt from
sald City Council's m~nutes of sa~d Meeting pertaining to the
passage of sa~d Ordlnance, that the persons named an the above
and foregoing paragraph are the duly chosen, quallf~ed, and
acting officers and members of sald City Council as lnd~cated
there~n, that each of the officers and members of sald City
Council was duly and sufficiently notlfled offlclally and
personally, ~n advance, of the t~me, place, and purpose of the
aforesaid Meetlng, and that sa~d Ordinance would be ~ntroduced
and considered for passage at sa~d Meeting, and that sa~d
Meeting was open to the public, and public not~ce of the t~me,
place, and purpose of sa~d meeting was given, all as required
by Vernon's Ann Civ St Article 6252-17
3 That the Mayor of sa~d C~ty has approved, and hereby
approves, the aforesaid Ordinance, that the Mayor and the C~ty
Secretary of said City have duly s~gned sa~d Ordinance, and
that the Mayor and the Clty Secretary of sa~d C~ty hereby de-
clare that their slgning of th~s Certificate shall constitute
the signing of the attached and following copy of sa~d
Ordinance for all purposes
SIGNED AND SEALED the 21st day of April, 1987
-~ity Secretary ~
(SEAL)
We, the undersigned, being respectlvely the C~ty Attorney
and the Bond Attorneys of the C~ty of Denton, Texas, hereby
certify that we prepared and approved as to legality the
attached and following Ordinance prlor to ~ts passage as
aforesaid
Clty Attor~y
Bond Attorneys