Loading...
1977-026ORDINANCE NO 77-A_~ ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the bonds and favorably voted at MAY 16, 1972, and hereinafter authorized were lawfully an election duly held in said City on WHEREAS, out of the bonds voted at said election, the following previously have been issued and delivered $3,250,000 out of a voted total of $5,275,000, for the purpose of improving and extending the City's Waterworks System, represented by part of the Series 1972 Bonds, and part of the Series 1974 Bonds, and $ 250,000 out of a voted total of $5,725,000, for the purpose of improving and extending the City's Sewer System, represented by part of the Series 1972 Bonds, and part of the Series 1974 Bonds, and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Vernon's Articles 1111 through 1118 THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS Section 1 That the said City's bonds are hereby author- ized to be issued in the aggregate principal amount of $500,000 for the purpose of providing $225,000 FOR IMPROVING ARID EXTEND- ING THE CITY'S WATERWORKS SYSTEM, and providing $275,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM Section 2 That said bonds shall be designated as the "CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1977" Section 3 That said bonds shall be dated JUNE 15, 1977, shall be in the denomination of $5,000 each, shall be number- ed consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule MATURITY DATE JULY 15 YEARS AMOUNTS YEARS 1980 $10,000 1987 1981 15,000 1988 1982 25,000 1989 1983 25,000 1990 1984 25,000 1991 1985 50,000 1992 1986 50,000 Section 4 That the bonds scheduled years, respectively, set forth below shall the following rates per annum -1- AMOUNTS $50,000 50,000 50,000 50,000 50,000 50,000 to mature during the bear interest at maturities 1980 through 19_, % maturities 19 through 19 % maturities 19 through 19_, % maturities 19 through 19_, % maturities 19 through 19 8 maturities 19 through 19 % Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance Section 5 That said bonds and interest coupons shall be issued, shall be payable, shall have the characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance Section 6 That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest cou- pons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows FORM OF BOND NO UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BOND SERIES 1977 $5,000 ON JULY 15, 19 , THE CITY OF DENTON, TEXAS, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate of 8 per annum, evidenced by interest coupons payable JANUARY 1-5,1978, and semiannually thereafter while this bond is out- standing THE PRINCIPAL of this bond and the interest coupons apper- taining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Bonds CITIBANK, N A , NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS THIS BOND is one of a Series dated as of JUNE 15, 1977, authorized, issued, and delivered in the principal amount of $500,000 for the purpose of providing $225,000 FOR IMPROVING AND EXTENDING THE CITY'S WATERWORKS SYSTEM, and providing $275,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM -2- IT IS HEREBY certified and covenanted that this bond has been duly and validly authorized, issued, and delivered, that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this bond have been performed, existed, and been done in accordance with law, that this bond is a special obligation, and that the principal of and interest on this bond, together with other revenue bonds of said City, are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System SAID CITY has reserved the right, subject to the restrictions stated, and adopted by reference, in the ordinance authorizing this Series of bonds, to issue additional parity revenue bonds which also may be made payable from, and secured by a first lien on and pledge of, the aforesaid Net Revenues THE HOLDER HEREOF shall never have the right to demand pay- ment of this obligation out of any funds raised or to be raised by taxation IN WITNESS WHEREOF, this bond and the interest coupons apper- taining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signa- ture of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile, on this bond xxxxxxxx xxxxxxxx City Secretary mayor FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO I hereby certify that this bond has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas Witness my signature and seal this xxxxxxxx Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON NO ON 15, 19 THE CITY OF DENTON, in the County of Denton, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, with- out exchange or collection charges to the bearer, upon presen- tation and surrender of this interest coupon, at CITIBANK, N A , NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, said amount being interest coming due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1977, DATED JUNE 15, 1977 The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation Bond No xxxxxxxx City Secretary xxxxxxxx Mayor -3- Section 7 (a) That the term "Outstanding Bonds," as herein- after used in this ordinance, shall mean all of said City's pres- ently outstanding bonds which are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System (b) That the bonds authorized hereby are parity "Additional Bonds" as defined in the ordinance passed on July 12, 1960, authorizing the issuance, sale, and delivery of said City's Water and Sewer System Revenue Bonds, Series 1960 (c) That Sections 9 through 25 of said ordinance are hereby adopted by reference and shall be applicable to the bonds au- thorized to be issued by this Ordinance for all purposes, except to the extent hereinafter specifically modified and supplemented The bonds authorized to be issued by this ordinance and the Out- standing Bonds are and shall be on a parity and of equal dignity in all respects, and are and shall be payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System Section 8 That, in addition to all other amounts requir- ed by the ordinances, respectively, authorizing the Outstanding Bonds, there shall be deposited into the Interest and Sinking Fund (created for the benefit of said Outstanding Bonds and all Additional Bonds) the following (a) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, as will be sufficient to pay the interest scheduled to come due on said Series 1977 Bonds on the next interest payment date, and (b) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, commencing in July, 1979, as will be sufficient to pay the next maturing prin- cipal of said Series 1977 Bonds Section 9 That the Reserve Fund heretofore created for the benefit of said Outstanding Bonds and all Additional Bonds now contains money and investments equal to the sum of $497,804 in market value No additional deposits shall be required to be made into the Reserve Fund as long as the money and invest- ments therein are at least equal to the aggregate amount of $497,804 in market value, but if and whenever the Reserve Fund is reduced below said aggregate amount, deposits shall be made into the Reserve Fund from the first available Net Revenues of the City's Water and Sewer System (after the required deposits have been made into the Interest and Sinking Fund) and contin- ued until such time as the Reserve Fund has been restored to said aggregate amount, and the City covenants to keep and main- tain said aggregate amount in the Reserve Fund The Reserve Fund shall be maintained, used, and may be invested, for the benefit of the Outstanding Bonds, the Series 1977 Bonds, and all Additional Bonds, in accordance with the procedures, as herein modified and supplemented, set forth in the ordinances, respectively, authorizing the Outstanding Bonds Section 10 That the bonds authorized by this Ordinance are and shall be special obligations of said City, and the holder or holders thereof shall never have the right to demand payment of said obligations out of any funds raised or to be raised by taxation -4- Section 11 That the Mayor of said City is hereby authorized to have control of said bonds and all necessary records and pro- ceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas Upon registration of said bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed and endorsed on each of said bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of said bonds Section 12 That the City covenants to and with the pur- chaser of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto, and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds The City further covenants that the proceeds of the bonds will not otherwise be used directly or in- directly so as to cause all or any part of the bonds to be or be- come arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto Section 13 That it is hereby officially found and deter- mined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this ordinance is passed, such emergency or urgent public necessity being that the proceeds from the sale of said bonds are required as soon as possible and without delay for necessary and urgently needed public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann Civ St Article 6252-17 Section 14 That the City Council officially finds, deter- mines, and declares that said bonds have been duly advertised for sale as required by the Home Rule Charter of said City, that sealed bids have been received at a public sale of said bonds held on May 17, 1977, that all of said bonds are hereby sold and shall be delivered to a syndicate managed or headed by being the best bidder at said public sale, for the principal amount of said bonds, and accrued interest thereon to the date of delivery, plus a premium of $ Section 15 It is further found and determined that the Official Notice of Sale for said bonds was duly published on April 13, 1977 in The Bond Buyer, New York, New York, which is a national publication regularly and primarily carrying fi- nancial news and municipal bond sale notices, and on April 11, 1977, in the Denton Record-Chronicle, which has been designat- ed as the official newspaper of the City of Denton The form and substance of said Official Notice of Sale, and the afore- said publications thereof, are hereby approved and ratified in all respects by the City Council Section 16 That it is hereby officially found, determin- ed, and declared that said bonds have been sold at public sale to the bidder offering the lowest interest cost, after receiving sealed bids pursuant to an Official Notice of Sale and Official -5- Statement dated May 3, 1977, prepared and distributed in connec- tion with the sale of said bonds Said Official Notice of Sale and Official Statement have been and are hereby approved by the City Council It is further officially found, determined, and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all material respects, to the best knowledge and be- lief of the City Council -6- GENERAL CERTIFICATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON We, the undersigned, hereby officially certify that we are the Mayor and City Secretary, respectively, of said City, and we further certify as follows 1 That said City is a duly incorporated Home Rule City, having more than 5000 inhabitants, operating and existing under the Constitution and laws of the State of Texas and the duly adopted Home Rule Charter of said City, which Charter has not been changed or amended since the passage of the ordinance au- thorizing the issuance of the City of Denton General Obligation Bonds, Series 1976, 2 That no litigation of any nature has ever been filed pertaining to, affecting, or contesting (a) the election which authorized the proposed City of Denton Water and Sewer System Revenue Bonds, Series 1977, dated June 15, 1977, in the principal amount of $500,000, (b) the issuance, delivery, payment, security, or validity of said proposed bonds, (c) the title of the present members and officers of the City Council of said City to their respective offices., or (d) the validity of the corporate existence or the Charter of said City 3 That none of the revenues or income of said City's Water and Sewer System have been pledged or encumbered to the payment of any debt or obligation of said City or said System, except in connection with the aforesaid proposed Series 1977 Bonds, and the outstanding bonds of the following issues of said City Water and Sewer Water and Sewer Water and Sewer Water and Sewer Water and Sewer Water and Sewer Water and Sewer System System System System System System System Revenue Revenue Revenue Revenue Revenue Revenue Revenue Bonds, Series 1960, Bonds, Series 1962, Bonds, series 1964, Bonds, Series 1966, Bonds, Series 1969, Bonds, Series 1972, Bonds, series 1974 4 That the Interest and Sinking Fund and the Reserve Fund, created and maintained for the benefit of the outstand- ing bonds listed above, in accordance with the ordinances, respectively, authorizing their issuance, each contains the amount now required to be on deposit therein, and the City is not in default in any of the covenants contained in the afore- said ordinances SIGNED AND SEALED this the 17th day of May, 1977 City secretary (SEAL) Mayor 7- ~h a 110 9 7 - a(, 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 said City convened in REGULAR MEETING ON THE 17TH DAY OF MAY, 1977, at the Municipal Building (City Hall), and the roll was called of the duly constituted officers and members of said City Council, to-wit Brooks Holt, City Secretary Elinor Hughes, Mayor Joe Mitchell Bill Nash Richard Stewart Mary Claude Gay and all of said persons were present, except the following absentees ' thus constituting a quorum Whereupon, among other business, the following was transacted at said Meeting a written ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS was duly introduced for the consideration of said City Council and read in full It was then duly moved and seconded that said Ordinance be passed, and, after due discussion, said mo- tion, carrying with it the passage of said Ordinance, prevail- ed and carried by the following vote AYES All 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 fore- going paragraph is attached to and follows this Certificate, that said Ordinance has been duly recorded in said City Council's minutes of said Meeting, that the above and foregoing paragraph is a true, full, and correct excerpt from said City Council's minutes of said Meeting pertaining to the passage of said Ordi- nance, that the persons named in the above and foregoing para- graph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein, that each of the officers and members of said City Council was duly and suffi- ciently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in ad- vance, to the holding of said meeting for such purpose, and that said Meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as re- quired by Vernon's Ann Civ St Article 6252-17 3 That the Mayor of said City has approved, and hereby approves, the aforesaid Ordinance, that the Mayor and the City Secretary of said City have duly signed said Ordinance, and that the Mayor and the City Secretary of said City hereby de- clare that their signing of this Certificate shall constitute the signing of the attached and following copy of said Ordinance for all purposes ;SMIGD AND SEALED the 17th day of May, 1977 G0 nn L City Secretary Mayor - (SEAL) - - - - - - - - - - - - - - - - - - - - - - - - We, the undersigned, being respectively the City Attorney and the Bond Attorneys of the City of Denton, Texas, hereby cer- tify that we prepared and approved as to legality the attached and following Ordinance prior tos_passage aforesaid city At rney Bond Attornevs CQ,. d~ti c:-.-c v no . 7 7 - 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 said City convened in REGULAR MEETING ON THE 17TH DAY OF MAY, 1977, at the Municipal Building (City Hall), and the roll was called of the duly constituted officers and members of said City Council,,to-wit: Brooks Holt, City Secretary Elinor Hughes, Mayor Joe Mitchell Bill Nash Richard Stewart Mary Claude Gay and all of said persons were present, except the following absentees: , thus constituting a quorum. Whereupon, among other business, the following was transacted at said Meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS was duly introduced for the consideration of said City Council and read in full. It was then duly moved and seconded that said ordinance be passed; and, after due discussion, said mo- tion, carrying with it the passage of said Ordinance, prevail- ed and carried by the following vote: AYES: All 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 fore- going paragraph is attached to and follows this Certificate; that said Ordinance has been duly recorded in said City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from said City Council's minutes of said Meeting pertaining to the passage of said Ordi- nance; that the persons named in the above and foregoing para- graph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein; that each of the officers and members of said City Council was duly and suffi- ciently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in ad- vance, to the holding of said Meeting for such purpose; and that said Meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as re- quired by Vernon's Ann. Civ. St. Article 6252-17. 3. That the Mayor of said City has approved, and hereby approves, the aforesaid Ordinance; that the Mayor and the City Secretary of said City have duly signed said Ordinance; and that the Mayor and the City Secretary of said City hereby de- clare that their signing of this Certificate shall constitute the signing of the attached and following copy of said Ordinance for all purposes. SIGN D AND SEALED the 17th day of May, 1977. City Secretary Mayor (SEAL) - - - - - - - - - - - - - - - - - - - - - - - - - - We, the undersigned, being respectively the City Attorney and the Bond Attorneys of the City of Denton, Texas, hereby cer- tify that we prepared and approved as to legality the attached and following Ordinance prior to its passage as aforesaid. y G C,-/,V MlkriW~,, l P,~ s ORDINANCE NO. 77-' I(o ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the bonds and favorably voted at MAY 16, 1972; and hereinafter authorized were lawfully an election duly held in said City on WHEREAS, out of the bonds voted at said election, the following previously have been issued and delivered: $3,250,000 out of a voted total of $5,275,000, for the purpose of improving and extending the City's Waterworks System, represented by part of the Series 1972 Bonds, and part of the Series 1974 Bonds, and $ 250,000 out of a voted total of $5,725,000, for the purpose of improving and extending the City's Sewer System, represented by part of the Series 1972 Bonds, and part of the Series 1974 Bonds; and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Vernon's Articles 1111 through 1118. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Section 1.That the said City's bonds are hereby author- ized to be issued in the aggregate principal amount of $500,000 for the purpose of providing $225,000 FOR IMPROVING AND EXTEND- ING THE CITY'S WATERWORKS SYSTEM, and providing $275,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM. Section 2. That said bonds shall be designated as the: "CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1977". Section 3. That said bonds shall be dated JUNE 15, 1977, shall be in the denomination of $5,000 each, shall be number- ed consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule: MATURITY DATE: JULY 15 YEARS AMOUNTS YEARS AMOUNTS 1980 $10,000 1987 $50,000 1981 15,000 1988 50,000 1982 25,000 1989 50,000 1983 25,000 1990 50,000 1984 25,000 1991 50,000 1985 50,000 1992 50,000 1986 50,000 Section 4. That the bonds scheduled to mature during the years, respectively, set forth below shall bear interest at the following rates per annum: -1- maturities 1980 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % maturities 19 through 19 % Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance. Section 5. That said bonds and interest coupons shall be issued, shall be payable, shall have the characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance. Section 6. That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest cou- pons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows: FORM OF BOND: NO. UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BOND SERIES 1977. $5,000 ON JULY 15, 19 , THE CITY OF DENTON, TEXAS, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate of % per annum, evidenced by interest coupons payable JANUARY 15, 1978, and semiannually thereafter while this bond is out- standing. THE PRINCIPAL of this bond and the interest coupons apper- taining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Bonds: CITIBANK, N.A., NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS. THIS BOND is one of a Series dated as of JUNE 15, 1977, authorized, issued, and delivered in the principal amount of $500,000 for the purpose of providing $225,000 FOR IMPROVING AND EXTENDING THE CITY'S WATERWORKS SYSTEM, and providing $275,000 FOR IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM. -2- IT IS HEREBY certified and covenanted that this bond has been duly and validly authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this bond have been performed, existed, and been done in accordance with law; that this bond is a special obligation; and that the principal of and interest on this bond, together with other revenue bonds of said City, are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System. SAID CITY has reserved the right, subject to the restrictions stated, and adopted by reference, in the Ordinance authorizing this Series of bonds, to issue additional parity revenue bonds which also may be made payable from, and secured by a first lien on and pledge of, the aforesaid Net Revenues. THE HOLDER HEREOF shall never have the right to demand pay- ment of this obligation out of any funds raised or to be raised by taxation. IN WITNESS WHEREOF, this bond and the interest coupons apper- taining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signa- ture of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile, on this bond. xxxxxxxx xxxxxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this bond has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this xxxxxxxx Comptroller of Public Accounts of the State of Texas. FORM OF INTEREST COUPON: NO. $ ON 15, 19 THE CITY OF DENTON, in the County of Denton, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, with- out exchange or collection charges to the bearer, upon presen- tation and surrender of this interest coupon, at CITIBANK, N.A., NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, said amount being interest coming due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1977, DATED JUNE 15, 1977. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Bond No. xxxxxxxx xxxxxxxx City Secretary Mayor -3- Section 7. (a) That the term "Outstanding Bonds," as herein- after used in this Ordinance, shall mean all of said City's pres- ently outstanding bonds which are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System. (b) That the bonds authorized hereby are parity "Additional Bonds" as defined in the ordinance passed on July 12, 1960, authorizing the issuance, sale, and delivery of said City's Water and Sewer System Revenue Bonds, Series 1960. (c) That Sections 9 through 25 of said ordinance are hereby adopted by reference and shall be applicable to the bonds au- thorized to be issued by this Ordinance for all purposes, except to the extent hereinafter specifically modified and supplemented. The bonds authorized to be issued by this Ordinance and the Out- standing Bonds are and shall be on a parity and of equal dignity in all respects, and are and shall be payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System. Section 8. That, in addition to all other amounts requir- ed by the ordinances, respectively, authorizing the Outstanding Bonds, there shall be deposited into the Interest and Sinking Fund (created for the benefit of said Outstanding Bonds and all Additional Bonds) the following: (a) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, as will be sufficient to pay the interest scheduled to come due on said Series 1977 Bonds on the next interest payment date; and (b) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, commencing in July, 1979, as will be sufficient to pay the next maturing prin- cipal of said Series 1977 Bonds. Section 9. That the Reserve Fund heretofore created for the benefit of said Outstanding Bonds and all Additional Bonds now contains money and investments equal to the sum of $497,804 in market value. No additional deposits shall be required to be made into the Reserve Fund as long as the money and invest- ments therein are at least equal to the aggregate amount of $497,804 in market value; but if and whenever the Reserve Fund is reduced below said aggregate amount, deposits shall be made into the Reserve Fund from the first available Net Revenues of the City's Water and Sewer System (after the required deposits have been made into the Interest and Sinking Fund) and contin- ued until such time as the Reserve Fund has been restored to said aggregate amount; and the City covenants to keep and main- tain said aggregate amount in the Reserve Fund. The Reserve Fund shall be maintained, used, and may be invested, for the benefit of the Outstanding Bonds, the Series 1977 Bonds, and all Additional Bonds, in accordance with the procedures, as herein modified and supplemented, set forth in the ordinances, respectively, authorizing the Outstanding Bonds. Section 10. That the bonds authorized by this Ordinance are and shall be special obligations of said City, and the holder or holders thereof shall never have the right to demand payment of said obligations out of any funds raised or to be raised by taxation. -4- Section 11. That the.Mayor of said City is hereby authorized to have control of said bonds and all necessary records and pro- ceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. upon registration of said bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed and endorsed on each of said bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of said bonds. Section 12. That the City covenants to and with the pur- chaser of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the bonds to be arbitrage bonds, within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the bonds will not otherwise be used directly or in- directly so as to cause all or any part of the bonds to be or be- come arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto. Section 13. That it is hereby officially found and deter- mined: that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this ordinance is passed, such emergency or urgent public necessity being that the proceeds from the sale of said bonds are required as soon as possible and without delay for necessary and urgently needed public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-17. Section 14. That the City Council officially finds, deter- mines, and declares that said bonds have been duly advertised for sale as required by the Home Rule Charter of said City; that sealed bids have been received at a public sale of said bonds held on May 17, 1977; that all of said bonds are hereby sold and shall be delivered to a syndicate managed or headed by being'the best bidder at said public sale, for the principal amount of said bonds, and accrued interest thereon to the date of delivery, plus a premium of $ Section 15. It is further found and determined that the Official Notice of Sale for said bonds was duly published on April 13, 1977 in The Bond Buyer, New York, New York, which is a national publication regularly and primarily carrying fi- nancial news and municipal bond sale notices, and on April 11, 1977, in the Denton Record-Chronicle, which has been designat- ed as the official newspaper of the City of Denton. The form and substance of said Official Notice of Sale, and the afore- said publications thereof, are hereby approved and ratified in all respects by the City Council. Section 16. That it is hereby officially found, determin- ed, and declared that said bonds have been sold at public sale to the bidder offering the lowest interest cost, after receiving sealed bids pursuant to an official Notice of Sale and official -5- Statement dated May 3, 1977, prepared and distributed in connec- tion with the sale of said bonds. Said Official Notice of Sale and Official Statement have been and are hereby approved by the City Council. It is further officially found, determined, and declared that the statements and representations contained in said Official Notice of Sale and Official Statement ore true and correct in all material respects, to the best knowledge and be- lief of the City Council. -6- GENERAL CERTIFICATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON We, the undersigned, hereby officially certify that we are the Mayor and City Secretary, respectively, of said City, and we further certify as follows: 1. That said City is a duly incorporated Home Rule City, having more than 5000 inhabitants, operating and existing under the Constitution and laws of the State of Texas and the duly adopted Home Rule Charter of said City, which Charter has not been changed or amended since the passage of the ordinance au- thorizing the issuance of the City of Denton General Obligation Bonds, Series 1976. 2. That no litigation of any nature has ever been filed pertaining to, affecting, or contesting: (a) the election which authorized the proposed City of Denton Water and Sewer System Revenue Bonds, Series 1977, dated June 15, 1977, in the principal amount of $500,000, (b) the issuance, delivery, payment, security, or validity of said proposed bonds, (c) the title of the present members and officers of the City Council of said City to their respective offices., or (d) the validity of the corporate existence or the Charter of said City. 3. That none of the revenues or income of said City's Water and Sewer System have been pledged or encumbered to the payment of any debt or obligation of said City or said System, except in connection with the aforesaid proposed Series 1977 Bonds, and the outstanding bonds of the following issues of said City: Water and Sewer Water and Sewer Water and Sewer Water and Sewer Water and Sewer Water and Sewer Water and Sewer System System System System System System System Revenue Revenue Revenue Revenue Revenue Revenue Revenue Bonds, Series 1960; Bonds, Series 1962; Bonds, Series 1964; Bonds, Series 1966; Bonds, Series 1969; Bonds, Series 1972; Bonds, Series 1974. 4. That the Interest and Sinking Fund and the Reserve Fund, created and maintained for the benefit of the outstand- ing bonds listed above, in accordance with the ordinances, respectively, authorizing their issuance, each contains the amount now required to be on deposit therein, and the City is not in default in any of the covenants contained in the afore- said ordinances. SIGNED AND SEALED this City Secretary (SEAL) the 17th day of May, 1977. ge r4,-. _ Mayor