HomeMy WebLinkAbout157 - 11/20/1984 - AUTHORIZING THE ISSUANCE OF SALES AND USE TAX REVENUE BONDS DATED NOVEMBER 1, 1984 IN THE AGGREGATE CERTIFIED RECORD
OF
PROCEEDINGS OF THE COUNCIL OF
THE CITY OF FORT COLLINS , COLORADO
RELATING TO AN ORDINANCE
AUTHORIZING THE ISSUANCE OF ITS
SALES AND USE TAX REVENUE BONDS
DATED NOVEMBER 1 , 1984
IN THE AGGREGATE PRINCIPAL AMOUNT OF $11 , 750, 000
y,
10
TABLE OF CONTENTS
(Not a part of the Ordinance)
Page
SECTION 1. DEFINITIONS AND CONSTRUCTION. . . . . . . . . . . . . . . . . 2
A. Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
B. Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
SECTION 2. RECITALS ; AUTHORITY. . . . . . . . . . . . . . . . . . . . . . . . . . 8
A. Necessity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
B. Authority For Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . 8
SECTION3. THE BONDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
A. Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
B. Bond Details . . . . 8
C. Bonds Equally Secured. . . . . . . . . . . . . . . . . . . . . . . . 23
D. Special Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . 23
SECTION 4 . SALE OF BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
A. Public Sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
B. Award of Contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
SECTION 5. DISPOSITION OF BOND PROCEEDS AND OTHER
REVENUES ; FUNDS AND ACCOUNTS ADOPTED OR
CREATED BY ORDINANCE ; SECURITY FOR BONDS. . . 23
A. Capital Projects Fund. . . . . . . . . . . . . . . . . . . . . . . . 24
B. Sales and Use Tax Fund Deposits. . . . . . . . . . . . . . 25
C. Principal and Interest Account Payments. . . . . . 25
D. Reserve Account Payments. . . . . . . . . . . . . . . . . 26
E. Termination of Deposits ; Use of Moneys in
Principal and Interest Account and
Reserve Account. . . . . . . . . . . . . . . . . . . . . . . 27
F. Payment of Additional Subordinate
Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
G . Use of Remaining Revenues. . . . . . . . . . . . . . . . . 28
H. Budget and Appropriation of Sums. . . . . . . . . . . . . 29
SECTION 6. GENERAL ADMINISTRATION OF FUNDS AND ACCOUNTS. 29
A. Places and Times of Deposits. . . . . . . . . . . . . . . . . 29
B. Investment of Funds and Accounts. . . . . . . . . . . . . 29
C. No Liability For Losses Incurred In
Performing Terms of Ordinance. . . . . . . . . . . . . . 30
D. Character of Funds. . . . . . . . . . . . . . . . . . . . . . . . 30
E. Accelerated Payments Optional. . . . . . . . . . . . . . . . 30
' (i
r .
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SECTION 7. PRIORITIES ; LIENS ; ISSUANCE OF ADDITIONAL
BONDS AND ADDITIONAL SECURITIES. . . . . . . . . . . . 31
A. First Lien on Pledged Revenues. . . . . . . . . . . . . . . 31
B. Issuance of Parity Bonds. . . . . . . . . . . . . . . . . . . . . 31
C. Certification of Revenues. . . . . . . . . . . . . . . 32
D. Subordinate Securities Permitted. . . . . . . . . . . . . 32
E. Superior Securities Prohibited. . . . . . . . . . . . . . . 32
F. Refunding Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
G. Supplemental Ordinances. . . . . . . . . . . . . . . . . . . . . . 33
SECTION 8. COVENANTS. . . . . . . . . . . . . . . . . . . . . . . . . . 34
A. Continuance and Collection of Taxes. . . . . . . . . . 34
B. Defense of Legality of Pledged Revenues. . . . . . 35
C. Performance of Duties. . . . . . . . . . . . . . . . . . . . . . . . 35
D. Contractual Obligations. . . . . . . . . . . . . . . . . . . . . . 35
E. Further Assurances. . . . . . . . . . . . . . . . . . . . . . . . . . . 35
F. Conditions Precedent. . . . . . . . . . . . . . . . . . . . . . . . . 36
G. Records. . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . 36
H. Protection of Security. . . . . . . . . . . . . . . . . . . . 36
I . Accumulation of Interest Claims . . . . . . . . . . . . . . 36
J. Prompt Payment of Bonds. . . . . . . . . . . . . . . . . . . . . . 36
K. Use of Principal and Interest Account and
Reserve Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
L. Additional Securities . . . . . . . . . . . . . . . . . . . . . . . . 37
M . Other Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
N. Surety Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
O. Arbitrage Covenant. . . . . . . . . . . . . . . . . . . . . . . . . . . 37
SECTION 9. DEFEASANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
SECTIO14 10. DEFAULT PROVISIONS AND REMEDIES OF
BONDOWNERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
A. Events of Default. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
B. Remedies for Defaults. . . . . . . . . . . . . . . . . . . . . . . . 39
C. Rights and Privileges Cumulative. . . . . . . . . . . . . 39
D. Duties Upon Defaults. . . . . . . . . . . . . . . . . . . . . . . . . 40
E. Evidence of Security Owners. . . . . . . . . . . . . . . . . . 40
F. Warranty Upon Issuance of Bonds. . . . . . . . . . . . . . 41
G. Immunities of Purchaser. . . . . . . . . . . . . . . . . . . . . . 41
SECTION 11 . AMENDMENT OF ORDINANCE. . . . . . . . . . . . . . . . . . . . . . . 42
A. Amendment of Ordinance Not Requiring Consent
ofBond Owners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
B. Amendment of Ordinance Requiring Consent
of Bond Owners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
C. Time for and Consent to Amendment. . . . . . . . . . . . 43
D. Unanimous Consent. . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
E. Exclusion of Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . 44
F. Notation on Bonds. . . . . . . . . . . . . . . . . . . . 44
G. Proof of Instruments and Bonds. . . . . . . . . . . . . . . 44
(ii)
Page
SECTION 12. MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
A. Character of Agreement. . . . . . . . . . . . . . . . . . . . . . . 44
B. No Pledge of Property. . . . . . . . . . . . . . . . . . . . . . . . 45
C. Statute of Limitations. . . . . . . . . . . . . . . . . . . . . . . 45
D. Delegated Duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
E. Successors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
F. Rights and Immunities. . . . . . . . . . . . . . . . . . . . . . . . 46
G. Ratification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
H. Facsimile Signatures . . . . . . . . . . . . . . . . . . . . . . . . . 47
I . Ordinance Irrepealable. . . . . . . . . . . . . . . . . . . . . . . 47
J. Repealer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
K. Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
( iii)
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins , Colorado,
reconvened its adjourned regular meeting of October 16, 1984 at
Council Chambers , City Hall, 300 LaPorte Avenue, Fort Collins ,
Colorado, on Tuesday, the 30th day of October , 1984 , at the hour
of 5: 30 p.m.
The following persons were present :
Council Members : Gerald C. Horak , Mayor
E. John Clarke, Assistant Mayor
William Elliott
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
City Manager : John E. Arnold
City Clerk : Wanda M. Krajicek
The following persons were absent:
None
Council Member Stoner introduced the
following Ordinance, which was read by title , copies of the full
Ordinance having been available in the office of the City Clerk
at least forty-eight (48) hours prior to the time said Ordinance
was introduced for each Council Member and for inspection and
copying by the general public :
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ORDINANCE NO. 157 , 1984
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS , COLORADO, SALES AND USE TAX REVENUE BONDS ,
DATED NOVEMBER 1 , 1984, IN THE AGGREGATE PRINCIPAL
AMOUNT OF $11, 750, 000 , FOR THE PURPOSE OF DEFRAYING , IN
WHOLE OR IN PART, THE COST OF ACQUIRING , CONSTRUCTING
AND IMPROVING STREETS AND HIGHWAYS FOR THE CITY AND OF
PAYING THE PRINCIPAL OF, INTEREST ON, AND ANY
COMMITMENT FEE DUE IN CONNECTION WITH THE CITY' S BOND
ANTICIPATION NOTE, SERIES FEBRUARY 1 , 1983, DATED
FEBRUARY 1 , 1983 , IN THE PRINCIPAL AMOUNT OF NOT MORE
THAN $25, 000 , 000.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS ,
COLORADO THAT:
Section 1. Definitions and Construction .
A. Definitions . In this Ordinance the following terms
have the following respective meanings unless the context hereof
clearly requires otherwise :
q
(1) Additional Paritv Bonds : any bonds of the City
issued after the date hereof , pursuant to and in accordance
with Section 7B hereof.
( 2) Average Annual Debt Service Requirements : for the
Bonds , or a given issue of Parity Securities , the aggregate
of all Debt Service Requirements (excluding any redemption
premiums) due on the Bonds or the other given issue of
Parity Securities in question for all Bond Years beginning
with the Bond Year in which Debt Service Requirements of the
Bonds or the Parity Securities are first payable and ending
with the Bond Year in which the last of the Debt Service
Requirements are payable divided by the number of such years .
(3) Bonds : those securities issued hereunder and
designated as the "City of Fort Collins , Colorado , Sales and
Use Tax Revenue Bonds ," dated November 1, 1984 , in the
aggregate principal amount of $11 , 750, 000.
(4) Bond Anticipation Note : the City ' s Bond
Anticipation Note , Series February 1 , 1983, dated
February 1, 1983, in the principal amount of not more than
$25 , 000 , 000.
(5) Bond Year : for the purpose of this Ordinance, the
twelve (12) months commencing on the first day of December
of any calendar year and ending on the last day of November
of the next succeeding calendar year.
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(6) Capital Pro ' ects Fund : the fund created by
Ordinance No. 8 , 1980, and referred to in Section 5A hereof.
(7) Charter : the Home Rule Charter of the City, as
amended.
(8) City: the City of Fort Collins , Colorado.
(9) Combined Avera e Annual Debt Service
Requirements : t e sum o the Average AnnualDe t Service
Requirements for all issues of Parity Securities for which
the computation is being made.
(10) Commercial Bank : a state or national bank or
trust company which is a member of the Federal Deposit
Insurance Corporation and of the Federal Reserve System,
which has a capital and surplus of $1 , 000, 000 or more, and
which is located within the United States ; and such term
includes , without limitation, any Trust Bank , as herein
defined.
(11) Comparable Bond Year : in connection with any
Fiscal Year , the Bond Year which ends in such Fiscal Year.
For example, for the Fiscal Year commencing on January 1 ,
1985 , the Comparable Bond Year for the Bonds commences on
December 1 , 1984, and ends on November 30, 1985.
(12) Cost of the Project : all or any part of the cost
of acquiring , constructing and installing the Project
including, without limitation, all costs and estimated costs
of the issuance of the Bonds ; all surveying , design ,
inspection, fiscal , and legal expenses ; any discount on the
sale of the Bonds ; costs of financial , professional, and
other estimates and advice ; contingencies ; any
administrative, operating , and other expenses of the City
prior to and during the construction period for the Project ,
as may be determined by the City Council ; and all such other
expenses as may be necessary or incident to the acquisition,
construction and installation of the Project , or part
thereof , and the placing of the same in public use ;
provision for reserves for replacement expenses or for
payment or security of principal of or interest on the Bonds
during or after the construction period as the City Council
may determine.
(13) Debt Service Requirements : the principal of ,
interest on , and any premiums due in connection with the
redemption of the Bonds and any Additional Parity Bonds ,
Parity Securities and any other securities payable from the
Pledged Revenues and heretofore or hereafter issued , if any,
or such securities as may be designated , as such principal ,
interest and premiums become due.
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(14) Event of Default : each of the events stated in
Section 10A hereof.
(15) Federal Securities : bills , certificates of
indebtedness , notes , bonds or similar securities which are
direct obligations of , or the principal and interest of
which obligations are unconditionally guaranteed by, the
United States of America .
(16) Fiscal Year : the twelve (12) months commencing on
the first day of January of any calendar year and ending on
the thirty-first day of December of such calendar year or
such other twelve (12) month period as may from time to time
be designated by the City Council as the Fiscal Year of the
City.
(17) General Fund : the General Fund of the City.
(18) Independent Accountant : any certified public
accountant , or any firm of such accountants , duly licensed
to practice and practicing as such under the laws of the
State, appointed and paid by the City, who (a) is , in fact ,
independent and not under the domination of the City or the
City Council , (b) does not have any substantial interest ,
direct or indirect, in any of the affairs of the City, and
(c) is not connected with the City as a member , officer or
employee of the City Council , but who may be regularly
retained to make annual or similar audits of any books or
records of the City.
(19) Net Revenue (from the Sales and Use Tax) : the
amount of Sales and Use Tax collected by the City (after
deduction by the retailer or vendor of the 3% collection
expense allowance) .
( 20) 1980 Bonds : the City of Fort Collins , Colorado ,
Sales and Use Tax Revenue Bonds , dated May 1, 1980 , in the
original aggregate principal amount of $1, 035, 000 authorized
pursuant to Ordinance No. 47, 1980 , of the City.
(21) 1981 Bonds: the City of Fort Collins , Colorado ,
Sales and Use Tax Revenue Bonds , dated August 1, 1981, in
the original aggregate principal amount of $5, 700 , 000
authorized pursuant to Ordinance No. 87, 1981 , of the City.
( 22) 1982 Bonds : the City of Fort Collins, Colorado,
Sales and Use Tax Revenue Bonds , dated October 1, 1982 , in
the original aggregate principal amount of $3, 360, 000 and
the City of Fort Collins , Colorado , Sales and Use Tax
Revenue Bonds , dated December 1, 1982 , in the original
aggregate principal amount of $1 , 215, 000 authorized pursuant
to Ordinance No. 89, 1982 , and Ordinance No. 137, 1982, of
the City, respectively.
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(23) Ordinance : this Ordinance No. 157, 1984 , of the
City, which provides for the issuance and delivery of the
Bonds.
(24) Ordinance No. 58, 1967 : Ordinance No. 58, 1967,
of the City which provides for the imposition of the initial
one percent (18) Sales and Use Tax within the City.
(25) Ordinance No. 63, 1984 : Ordinance No. 63, 1984 ,
of the City, which provides for the imposition of the
additional twenty-five hundredths percent ( . 25%) Sales and
Use Tax within the City.
( 26) Ordinance No. 140 , 1979 : Ordinance No. 140, 1979,
of the City, which provides for the imposition of the
additional one percent (1%) Sales and Use Tax within the
City.
(27) Ordinance No. 149 , 1981 : Ordinance No. 149, 1981 ,
of the City, which provides for the imposition of the
additional twenty-five hundredths percent ( . 25%) Sales and
Use Tax within the City.
( 28) Outstanding or outstanding : when used with
reference to the Bonds, the Additional Parity Bonds , Parity
Securities or any other designated securities of the City
and as of any particular date, means all the Bonds , the
Additional Parity Bonds , Parity Securities or any such other
securities payable in whole or in part from the Pledged
Revenues , or otherwise pertaining to the Project, as the
case may be, in any manner theretofore and thereupon being
executed and delivered, except the following :
(a) Any Bond , Additional Parity Bond, Parity
Security or other security cancelled by the City, by
the Paying Agent , or otherwise on the City' s behalf, at
or before such date ;
(b) Any Bond , Additional Parity Bond or Parity
Security held by or on behalf of the City;
(c) Any Bond, Additional Parity Bond or Parity
Security or other security of the City for the payment
or the redemption of which moneys or Federal Securities
sufficient to meet all of the payment requirements of
the principal of, the interest on, and any prior
redemption premiums due in connection with such Bond ,
Additional Parity Bonds or Parity Security or other
security to the date of maturing or any redemption date
thereof, shall have theretofore been deposited in
escrow or in trust with a Trust Bank for that purpose ,
as provided in and required by Section 9 hereof; and
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(d) Any lost , apparently destroyed, or wrongfully
taken Bond, Additional Parity Bond or Parity Security
or other security of the City in lieu of or in
substitution for which another bond or other security
shall have been executed and delivered.
(29) Owner : when used in conjunction with any Bond, or
any other designated security, the holder of any bearer
instrument or registered owner of any registered instrument.
(30) Parity Securities : bonds - - (including the 1980
Bonds , the 1981 Bonds , and the 1982 Bonds) , warrants, notes ,
securities leases or other contracts payable from the
Pledged Revenues equally or on a parity with the Bonds.
( 31) Person: any individual , firm, partnership ,
corporation, company, association, joint-stock association ,
or body politic; and the term includes any trustee,
receiver , assignee, or other similar representative thereof.
(32) Pledged Revenues : all or a portion of the Pledged
Sales and Use Tax Revenues. The designated term indicates a
source of revenues and does not necessarily indicate all or
any portion or other part of such revenues in the absence of
further qualification.
( 33) Pledged Sales and Use Tax Revenues : the Net
Revenue collected by the City from the Sales and Use Tax.
( 34) Principal and Interest Account : the special fund
created by Ordinance No. 87, 1981 , of the City and referred
to in Section 5C hereof.
(35) Project : the acquisition, construction and
improvement of streets and highways for the City, for which
purpose the Bonds are issued hereunder , whether such
acquisition , construction and improvement are undertaken at
one time or in stages.
( 36) Purchaser : Boettcher & Company, Inc. , of Denver ,
Colorado , and its associates , if any.
( 37) Redemption Date : the date fixed for the
redemption prior to their maturity of any Bonds or other
designated securities payable from the Pledged Revenues in
any notice of prior redemption authorized by the City, or
otherwise fixed and designated by the City.
(38) Redemption Price : when used with respect to a
Bond or other designated security payable from the Pledged
Revenues , the principal amount thereof plus the applicable
premium, if any, payable upon the redemption thereof prior
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to the stated maturity date of such Bond or other security
on a Redemption Date in the manner contemplated in
accordance with the terms of the Bond or other security.
( 39) Reserve for Sales and Use Tax Revenue and
Interest : the Reserve tor Sales and Use Tax Revenue Bonds
and Interest established pursuant to the provisions of
Ordinance No. 47, 1980, of the City.
(40) Reserve Account : the special fund created by
Ordinance No. 87, 1981, of the City and referred to in
Section 5D hereof.
(41) Sales and Use Tax : the sales and use tax
established by Ordinance No. 58 , 1967, Ordinance No. 140 ,
1979, Ordinance No. 149, 1981 and Ordinance No. 63, 1984
upon sales and purchases of tangible personal property at
retail and storage , use, distribution and consumption of
tangible personal property purchased or acquired at retail,
within the City, in such percentages as set forth in such
Ordinances or any supplements or amendments thereof.
(42) Sales and Use Tax Fund : the special fund created
by Ordinance No. 87, 1981, of the City and referred to in
Section 5B hereof.
(43) Security or securities : when used with reference
to securities of the City, any bond issued by the City, or
any other evidence of the advancement of money to the City.
(44) State: the State of Colorado.
(45) Subordinate Bonds or Subordinate Securities :
bonds or securities payable from the Pledged Revenues having
a lien thereon subordinate or junior to the lien thereon of
the Bonds.
(46) Superior Bonds or Superior Securities : bonds or
securities payable from the Pledged Sales and Use Tax
Revenues having a lien thereon superior or senior to the
lien thereon of the Bonds.
( 47) Trust Bank : a Commercial Bank which is authorized
to exercise and is exercising trust powers.
B. Construction. This Ordinance , except where the context
by clear implication herein otherwise requires , shall be
construed as follows :
(1) Words in the singular number include the plural,
and words in the plural include the singular .
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(2) Words in the masculine gender include the feminine
and the neuter , and when the sense so indicates words of the
neuter gender refer to any gender.
( 3) Articles , sections , subsections , paragraphs and
subparagraphs mentioned by number , letter , or otherwise,
correspond to the respective articles , sections ,
subsections , paragraphs and subparagraphs of this Ordinance
so numbered or otherwise so designated.
(4) The titles and headlines applied to articles ,
sections and subsections of this Ordinance are inserted only
as a matter of convenience and ease in reference and in no
way define , or limit the scope or intent of , any provisions
of this Ordinance.
Section 2 . Recitals ; Authority.
A. Necessity. The City has need for and desires to
acquire , construct and improve streets and highways for the
City, including the Project , and to pay the principal of ,
interest on , and any commitment fee due in connection with the
Bond Anticipation Note.
B. Authority For Bonds . The City is authorized by the
Colorado Constitution and the Charter , by City Council action
and without an election , to issue securities made payable solely
from the proceeds of any sales tax, use tax , or other excise
tax, including without limitation the Sales and Use Tax.
Section 3. The Bonds.
A. Authorization . The City of Fort Collins , Colorado ,
Sales and Use Tax Revenue Bonds , dated November 1 , 1984 , in the
aggregate principal amount of $11, 750, 000 , payable as to all
Debt Service Requirements solely out of Pledged Revenues are
hereby authorized to be issued , pursuant to the Colorado
Constitution , the Charter and the terms of the Ordinance , and
the City assigns and pledges irrevocably, but not necessarily
exclusively, the Pledged Sales and Use Tax Revenues to the
payment of the Debt Service Requirements for the Bonds , the
proceeds of the Bonds authorized herein to be used solely to
defray, in whole or in part , the Cost of the Project and to pay
the principal of , interest on, and any commitment fee due in
connection with the Bond Anticipation Note.
B. Bond Details.
(1) Generally. The Bonds shall be issued in fully
registered form in denominations of $5, 000 or any integral
multiple thereof , provided that no Bond shall be issued in any
denomination larger than the aggregate principal amount maturing
on the maturity date of such Bond.
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Pursuant to the recommendations of the Committee on Uniform
Security Identification Procedures , CUSIP numbers may be printed
on the Bonds.
The Bonds shall mature on December 1 in each of the
following years and principal amounts and shall bear per annum
interest from December 1 , 1984, or the interest payment date to
which interest has been paid next preceding their respective
dates , whichever is later , to their respective maturity dates ,
except if redeemed prior thereto , at the following interest
rates :
Principal Per Annum
Years Amounts Interest Rate
1988 $190, 000 7. 75%
1989 200, 000 8. 00
1990 215, 000 8. 30
1991 235, 000 8. 60
1992 250, 000 8. 80
1993 270, 000 9. 00
1994 295, 000 9. 20
1995 320, 000 9. 40
1996 350, 000 9. 60
2004 4, 350, 000 10. 20
2009 5, 075, 000 10. 30
Said interest shall be payable on June 1 , 1985 , and semiannually
thereafter on the lst day of December and the 1st day of June of
each year . If upon presentation at maturity the principal of
any Bond is not paid as provided herein, interest shall continue
thereon at the same interest rate until the principal is paid in
full.
The Debt Service Requirements of the Bonds shall be payable
in lawful money of the United States of America , to the
registered Owners of the Bonds by the Finance Director of the
City, who is hereby designated the paying agent for the Bonds.
The principal and the final interest shall be payable to the
registered Owner of each Bond upon presentation and surrender of
the Bond at maturity or upon prior redemption. Except as
heretofore and hereinafter provided , the interest shall be
payable to the registered Owner of each Bond determined as of
the close of business on the regular record date , which shall be
the fifteenth (15th) day of the calendar month next preceding
the interest payment date, irrespective of any transfer of
ownership of the Bond subsequent to the regular record date and
prior to such interest payment date , by check or draft mailed to
such registered Owner at the address appearing on the
registration books of the City maintained by the City Clerk , who
is hereby designated the registrar for the Bonds. Any interest
not paid when due and any interest accruing after maturity shall
be payable to the registered Owner of each Bond entitled to
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receive such interest determined as of the close of business on
the special record date, which shall be fixed by the City for
such purpose , irrespective of any transfer of ownership of the
Bond subsequent to such special record date and prior to the
su q p
date fixed by the City for the payment of such interest , by
check or draft mailed as aforesaid. Notice of the special
record date and of the date fixed for the payment of such
interest shall be given by sending a copy thereof by certified
or registered first-class , postage prepaid mail , at least ten
(10) days prior to the special record date , to the Purchaser and
to the registered Owner of each Bond upon which interest will be
paid determined as of the close of business on the day preceding
such mailing at the address appearing on the registration books
of the City. Any premium shall be payable to the registered
Owner upon presentation and surrender of this Bond upon prior
redemption.
If the paying aqent or registrar initially appointed
hereunder shall resign , or if the City shall reasonably
determine that said paying aqent or registrar has become
incapable of fulfilling his or her duties hereunder , the City
may, upon notice mailed to each registered Owner of bonds at the
address last shown on the registration books , appoint a
successor paving agent or registrar , or both. Every such
successor paying agent or registrar shall be a Commercial Bank.
It shall not be required that the same institution serve as both
paying agent and registrar hereunder , but the City shall have
the right to have the same institution serve as both paying
agent and registrar hereunder.
(2) Redemption of Bonds Prior to Maturity. Bonds maturing
in the years 1995 , 1996 , 2004 , and 2009 shall be subject to
optional redemption prior to their respective maturity dates , in
whole or in part , in inverse order of maturity and by lot within
a maturity, on December 1 , 1994 , and on any interest payment
date thereafter , at a price equal to the principal amount of
each Bond so redeemed plus accrued interest thereon to the
Redemption Date plus a premium expressed as a percentage of the
principal amount of each Bond so redeemed , depending on the
Date,ate, as follows :
Redemption Date Premium
December 1 , 1994 and June 1 , 1995 2. 5%
December 1 , 1995 and June 1 , 1996 2. 0%
December 1 , 1996 and June 1, 1997 1. 5%
December 1 , 1997 and June 1 , 1998 1. 0%
December 1 , 1998 and June 1, 1999 0. 5%
December 1 , 1999 and Thereafter None
Bonds maturing in the year 2004 shall also be subject to
mandatory sinking fund redemption prior to their maturity date ,
by lot , on the dates specified below at a price equal to the
principal amount of each Bond so redeemed plus accrued interest
thereon to the Redemption Date. Such Bonds shall be redeemed on
-10-
December 1 in each of the following years in each of the
following aggregate principal amounts :
Years Principal Amounts
1997 $380, 000
1998 420, 000
1999 460, 000
2000 505, 000
2001 555, 000
2002 610, 000
2003 675, 000
2004 745, 000
Bonds maturing in the year 2009 shall also be subject to
mandatory sinking fund redemption prior to their maturity date,
by lot , on the dates specified below at a price equal to the
principal amount of each Bond so redeemed plus accrued interest
thereon to the Redemption Date. Such Bonds shall be redeemed on
December 1 in each of the following years in each of the
following aggregate principal amounts:
Years Principal Amounts
2005 $ 820, 000
2006 910, 000
2007 1, 005 , 000
2008 1 ,110, 000
2009 1, 230 , 000
The Bonds shall also be subject to extraordinary redemption
prior to their respective maturity dates if the City determines
that there is no longer a need for all or a portion of the
Project and if the City has sufficient funds available to effect
such redemption , in whole or in part by calling as nearly as
practicable a pro rata share of the Bonds due on each maturity
date by lot within such maturity, on December 1, 1987, at a
price equal to the principal amount of each Bond so redeemed
plus accrued interest thereon to the Redemption Date. In the
case of an extraordinary redemption in hart , the amounts of the
mandatory sinking fund installments due with respect to Bonds
maturing in the years 2004 and 2009 shall be reduced as nearly
as practicable on a pro rata basis.
Bonds issued in denominations which are integral multiples
of $5, 000 may be redeemed in part. Such Bonds shall be treated
as representing a corresponding number of separate Bonds in the
denomination of $5, 000 each. Any such Bond to be redeemed in
part shall be surrendered for partial redemption in the manner
hereinafter provided for transfers of ownership. Upon payment
of the redemption price of any such Bond redeemed in part the
registered Owner thereof shall receive a new Bond or Bonds of
authorized denominations in aggregate principal amount equal to
the unredeemed portion of the Bond surrendered.
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• Notice of redemption shall be given by the Finance Director
of the City in the name of the City by sending a copy thereof by
certified or registered first-class postage prepaid mail , at
least thirty ( 30) days prior to the redemption date, to the
Purchaser and to the registered Owner of each of the Bonds being
redeemed , determined as of the close of business on the day
preceding the first mailing of such notice, at the address
appearing on the registration books of the City. Such notice
shall specify the number or numbers of the Bonds to be redeemed ,
whether in whole or in part , and the date fixed for redemption
and shall further state that on the redemption date there will
be due and payable upon each Bond or part thereof so to be
redeemed the principal amount or part thereof plus accrued
interest thereon to the redemption date plus any premium due ,
and that from and after such date interest will cease to
accrue. Failure to mail any notice as aforesaid or any defect
in any notice so mailed with respect to any Bond shall not
affect the validity of the redemption proceedings with respect
to any other Bond . Any Bonds redeemed prior to their respective
maturity dates by call for prior redemption or otherwise shall
not be reissued and shall be cancelled the same as Bonds paid at
or after maturity.
( 3) Interest Rates . The maximum net effective interest
rate authorized for the Bonds is 15% per annum, and the actual
net effective interest rate for the Bonds is 10. 28370% per annum.
(4) Execution. The Bonds shall be executed by and on
behalf of the City with the facsimile signature of the Mayor ,
shall bear a facsimile of the seal of the City, shall be
attested with the facsimile signature of the City Clerk , and
shall be countersigned with the manual signature of the Finance
Director of the City. Should any officer whose manual or
facsimile signature appears on the Bonds cease to be such
officer before delivery of the Bonds to the Purchaser , such
manual or facsimile signature shall nevertheless be valid and
sufficient for all purposes .
( 5) Registration , Transfer and Exchange of Bonds. Upon
their execution and prior to their delivery the Bonds shall be
registered for the purpose of payment of principal and interest
in the office of the City Clerk, who is hereby designated as the
transfer agent for the Bonds. Thereafter , the Bonds shall be
transferable only upon the registration books of the City at the
office of the City Clerk or a successor transfer agent at the
request of the registered Owner thereof or his or its duly
authorized attorney-in-fact or legal representative. The City
Clerk shall accept a Bond for registration or transfer only if
the registered Owner is to be an individual , a corporation, a
partnership, or a trust. A Bond may be transferred upon
surrender thereof together with a written instrument of transfer
duly executed by the registered Owner or his or its duly
authorized attorney-in-fact or legal representative with
-12-
+ guaranty of signature satisfactory to the City Clerk , containing
written instructions as to the details of the transfer , along
with the social security number or federal employer
identification number of the transferee and, if the transferee
is a trust , the names and social security numbers of the settlor
and the beneficiary of the trust. Transfers shall be made
without charge, except that the City Clerk may also require
payment of a sum sufficient to defray any tax or other
governmental charge that may hereafter be imposed in connection
with any transfer of Bonds. No registration or transfer of any
Bond shall be effective until entered on the registration books
of the City maintained by the Clerk. The City Clerk shall
deliver to the new registered Owner a new Bond or Bonds of the
same aggregate principal amount , maturing in the same year , and
bearing interest at the same per annum rate as the Bond or Bonds
surrendered. Such Bond or Bonds shall be dated as of their date
of execution by the Finance Director of the City. The City
Clerk shall not be required to transfer ownership of any Bond
during the fifteen (15) days prior to the first mailing of any
notice of redemption or to transfer ownership of any Bond
selected for redemption on or after the date of such mailing.
The registered Owner of any Bond or Bonds may also exchange such
Bond or Bonds for another Bond or Bonds of authorized
denominations . New Bonds delivered upon any transfer or
exchange shall be valid obligations of the City, evidencing the
same obligation as the Bonds surrendered , shall be secured by
this Ordinance , and shall be entitled to all of the security and
benefits hereof to the same extent as the Bonds surrendered.
The City may deem and treat the person in whose name any Bond is
last registered upon the books of the City as the absolute Owner
thereof for the purpose of receiving payment of the principal of
and interest on such Bond and for all other purposes , and all
such payments so made to such person or upon his order shall be
valid and effective to satisfy and discharge the liability of
the City upon such Bond to the extent of the sum or sums so
paid , and the City shall not be affected by any notice to the
contrary.
(6) Lost Bonds. If any Bond shall have been lost ,
destroyed or wrongfully taken, the City shall provide for the
replacement thereof in the manner set forth and upon receipt of
the evidence, indemnity bond and reimbursement for expenses
provided in Ordinance No. 80, 1984, adopted by the City Council
on July 17, 1984.
(7) Recitals in Bonds. Each Bond shall recite in substance
that the Bond is payable solely from the Pledged Revenues and
that the Bond is not payable in whole or in part from ad valorem
taxes of the City and that the full faith and credit of the City
is not pledged to pay the principal of or interest on such
Bond . Each Bond shall further recite that it is issued under
the authority of the Charter and this Ordinance.
(8) Form of Bonds . The Bonds shall be in substantially the
following form:
-13-
(Form of Bond]
(Text of Face)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
SALES AND USE TAX REVENUE BOND
No. R- $
Interest Maturity Original
Rate Date Date CUSIP
December 1 , November 1 , 1984
REGISTERED OWNER:
PRINCIPAL SUM :
The City of Fort Collins , in the County of Larimer and State
of Colorado , for value received, hereby promises to pay to the
Registered Owner (specified above) , or registered assigns ,
solely from the special funds provided therefor , as hereinafter
set forth, the Principal Sum ( specified above) , in lawful money
of the United States of America , on the Maturity Date (specified
above) , with interest thereon from November 1 , 1984, or the
interest payment date to which interest has been paid next
preceding the date hereof, whichever is later , to the Maturity
Date , except if redeemed prior thereto, at the per annum
Interest Rate (specified above) , payable semiannually on the 1st
day of June and the 1st day of December of each year, commencing
on June 1 , 1985, or the first such date after the date hereof ,
whichever is later , in the manner provided herein. If upon
presentation at maturity payment of the Principal Sum of this
Bond is not made as provided herein, interest shall continue at
the Interest Rate until the Principal Sum is paid in full.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON THE REVERSE HEREOF.
This Bond and the Bonds of the series of which this is one
are special and limited obligations of the City payable solely
-14-
out of and secured by an irrevocable assignment and pledge (but
not necessarily an exclusive assignment and pledge) of the
Pledged Revenues , as more specifically provided in the
Ordinance. This Bond does not constitute a debt or an
indebtedness of the City within the meaning of any
constitutional , statutory or City charter provision or
limitation of the State of Colorado. This Bond is not payable
in whole or in part from ad valorem taxes of the City, and the
full faith and credit of the City is not pledged for the payment
of the principal of or interest on this Bond.
IN WITNESS WHEREOF, the City Council of the City of Fort
Collins , Colorado , has caused this Bond to be executed in its
name and on its behalf with the facsimile signature of the Mayor
of the City, to be sealed with a facsimile seal of the City, to
be signed and attested with the facsimile signature of the City
Clerk of the City and to he countersigned with the manual
signature of the Finance Director of the City.
CITY OF FORT COLLINS , COLORADO
(FACSIMILE) By : (Facsimile Siqnature)
( SEAL ) Mayor
ATTEST:
(Facsimile Sianature)
City Clerk Countersigned :
(Manual Sianature)
Finance Director
DATED:
ABBREVIATIONS
The following abbreviations , when used in the inscription on
the face of this Bond , shall be construed as though they were
written out in full according to applicable laws or regulations .
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with the right of
survivorship and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Gust) (Minor)
under Uniform Gift to Minors Act
(State)
Additional abbreviations may also be used
though not on the above list.
-15-
(Text of Reverse)
Bonds of this issue maturing in the years 1995, 1996, 2004 ,
and 2009 are subject to optional redemption prior to their
respective maturity dates , in whole or in part , in inverse order
of maturity and by lot within a maturity, on December 1, 1994,
and on any interest payment date thereafter , at a price equal to
the principal amount of each Bond so redeemed plus accrued
interest thereon to the redemption date , plus a premium
expressed as a percentage of the principal amount of each Bond
so redeemed, depending on the redemption date , as follows :
Redemption Date Premium
December 1 , 1994 and June 1 , 1995 2. 5%
December 1 , 1995 and June 1, 1996 2. 0%
December 1 , 1996 and June 1, 1997 1. 5%
December 1 , 1997 and June 1 , 1998 1. 0%
December 1 , 1998 and June 1 , 1999 0. 5%
December 1 , 1999 and Thereafter None
Bonds of this issue maturing in the year 2004 are also
subject to mandatory sinking fund redemption prior to their
maturity date , by lot , on the dates specified below at a price
equal to the principal amount of each Bond so redeemed plus
accrued interest thereon to the redemption date. Such Bonds are
to be redeemed on December 1 in each of the following years in
each of the following aggregate principal amounts :
Years Principal Amounts
1997 $380, 000
1998 420, 000
1999 460 , 000
2000 505, 000
2001 555, 000
2002 610 , 000
2003 675 , 000
2004 745, 000
Bonds of this issue maturing in the year 2009 are also subject
to mandatory sinking fund redemption prior to their maturity
date, by lot , on the dates specified below at a price equal to
the principal amount of each Bond so redeemed plus accrued
interest thereon to the redemption date. Such Bonds are to be
redeemed on December 1 in each of the following years in each of
the following aggregate principal amounts :
Years Principal Amounts
2005 $ 820, 000
2006 910, 000
2007 1, 005 , 000
2008 1 ,110, 000
2009 1, 230, 000
-16-
The Bonds of this issue are also subject to extraordinary
redemption prior to their respective maturity dates if the City
determines that there is no longer a need for all or a portion
of the financed facilities and if the City has sufficient funds
available to effect such redemption, in whole or in part by
calling as nearly as practicable a pro rata share of the Bonds
due on each maturity date by lot within such maturity, on
December 1, 1987, at a price equal to the principal amount of
each Bond so redeemed plus accrued interest thereon to the
redemption date. In the case of an extraordinary redemption in
part , the amounts of the mandatory sinking fund installments due
with respect to Bonds maturing in the years 2004 and 2009 are to
be reduced as nearly as practicable on a pro rata basis.
This Bond may be redeemed in part if issued in a
denomination which is an integral multiple of $5, 000. In such
case this Bond shall be surrendered in the manner provided for
transfer of ownership . Upon payment of the redemption price the
Registered Owner shall receive a new Bond or Bonds of authorized
denominations in aggregate principal amount equal to the
unredeemed portion of this Bond.
The principal of, interest on, and any premium due in
connection with the redemption of this Bond are payable to the
Registered Owner by the Finance Director of the City, as paying
agent . The principal and the final interest are payable to the
Registered Owner upon presentation and surrender of this Bond at
maturity or upon prior redemption . Except as heretofore and
hereinafter provided , the interest is payable to the Registered
Owner determined as of the close of business on the regular
record date, which shall be the fifteenth (15th) day of the
calendar month next preceding the interest payment date,
irrespective of any transfer of ownership hereof subsequent to
the regular record date and prior to such interest payment date,
by check or draft mailed to the Registered Owner at the address
appearing on the registration books of the City. Any interest
hereon not paid when due and any interest hereon accruing after
maturity is payable to the Registered Owner determined as of the
close of business on the special record date , which shall be
fixed by the City for such purpose , irrespective of any transfer
of ownership of this Bond subsequent to such special record date
and prior to the date fixed by the City for the payment of such
interest , by check or draft mailed as aforesaid. Notice of the
special record date and of the date fixed for the payment of
such interest shall be given by sending a copy thereof by
certified or registered first-class postage prepaid mail , at
least ten (10) days prior to the special record date, to
Boettcher & Company, Inc. , Denver , Colorado , and to the
registered owner of each Bond upon which interest will be paid
determined as of the close of business on the day preceding such
mailing , at the address appearing on the registration books of
the City. Any premium is payable to the Registered Owner upon
presentation and surrender of this Bond upon prior redemption.
-17-
Notice of redemption of any Bonds shall be given by the
Finance Director of the City in the name of the City by sendinq
a copy of such notice by certified or registered first-class
postage prepaid mail, at least thirty ( 30) days prior to the
redemption date, to Boettcher & Company, Inc. , Denver, Colorado,
and to the Registered Owner of each of the Bonds being redeemed,
determined as of the close of business on the day preceding the
first mailing of such notice , at the address appearing on the
registration books of the City. Such notice shall specify the
number or numbers of the Bonds to be redeemed , whether in whole
or in part , and the date fixed for redemption and shall further
state that on the redemption date there will be due and payable
upon each Bond or part thereof so to be redeemed the principal
amount or part thereof plus accrued interest thereon to the
redemption date plus any premium due , and that from and after
such date interest will cease to accrue. Failure to mail any
notice as aforesaid or any defect in any notice so mailed with
respect to any Bond shall not affect the validity of the
redemption proceedings with respect to any other Bond.
Payment of the principal of and interest on this Bond shall
be made solely from, and as security for such payment there are
irrevocably (but not necessarily exclusively) pledged , pursuant
to the Ordinance, two special funds identified as the "City of
Fort Collins , Colorado, Sales and Use Tax Revenue Bonds ,
Principal and Interest Account" and the "City of Fort Collins,
Colorado , Sales and Use Tax Revenue Bonds , Reserve Account" ,
into which funds the City has covenanted in the Ordinance to
pay, respectively, from certain revenues consisting of net
receipts from the City' s sales and use tax (the Pledged
Revenues) sums sufficient to pay when due the principal of,
interest on , and any premium due in connection with the
redemption of the Bonds of the series of which this is one and
any additional parity securities heretofore or hereafter issued
and payable from such revenues , and to accumulate and maintain a
specified reserve for such purposes . In addition, the City may
at its option augment such funds with any other moneys of the
City legally available for expenditure for the purposes thereof
as provided in the Ordinance.
It is hereby recited , certified and warranted that for the
payment of this Bond and of the interest hereon, the City has
created and will maintain said special funds and will deposit
the Pledged Revenues therein , out of the amounts and revenues
specified in the Ordinance and out of said special funds , as an
irrevocable charge thereon, will pay this Bond and the interest
hereon, in the manner provided by the Ordinance.
The Bonds of the series of which this is one are equitably
and ratably secured by a lien on the Pledged Revenues , and such
Bonds constitute an irrevocable and first lien (but not
necessarily an exclusive first lien) upon the Pledged Revenues.
Bonds and other types of securities , in addition to the Bonds of
-18-
the series of which this is one, subject to expressed
conditions , may be issued and made payable from the Pledged
Revenues having a lien thereon subordinate and junior to the
lien of the Bonds of the series of which this is one or , subject
to additional expressed conditions , having a lien thereon on a
parity with the lien of such Bonds in accordance with the
provisions of the Ordinance. Except as otherwise expressly
provided in this Bond and the Ordinance , the Pledged Revenues
are assigned , pledged and set aside to the payment of this Bond,
the series of which this Bond is one , and the interest hereon
and thereon in anticipation of the collection of the Pledged
Revenues.
The City covenants and agrees with the Registered Owner of
this Bond that it will keep and will perform all of the
covenants of this Bond and of the Ordinance.
This Bond is one of a series authorized and issued for the
purpose of defraying , in whole or in part , the cost of
acquiring , constructing and improving certain streets and
highways for the City and paying the principal of , interest on,
and any commitment fee due in connection with a valid and
outstanding bond anticipation note of the City, under the
authority of and in full conformity with the Constitution of the
State of Colorado , the City Charter , and all other laws of the
State of Colorado thereunto enabling, and pursuant to the
Ordinance and other ordinances of the City duly adopted ,
published and made laws of the City prior to the issuance of
this Bond.
Reference is hereby made to the Ordinance, and to any and
all modifications and amendments thereof , for a description of
the provisions , terms and conditions upon which the Bonds of the
series of which this is one are issued and secured , including ,
without limitation , the nature and extent of the security for
the Bonds , provisions with respect to the custody and
application of the proceeds of the Bonds , the collection and
disposition of the revenues and moneys charged with and pledged
to the payment of the principal of , interest on, and premium due
in connection with the redemption of the Bonds , the terms and
conditions on which the Bonds are issued , a description of the
special funds referred to above and the nature and extent of the
security and pledge afforded thereby for the payment of the
principal of, interest on , and premium due in connection with
the redemption of the Bonds , and the manner of enforcement of
said pledge , as well as the rights , duties , immunities and
obligations of the City and the members of its Council and also
the rights and remedies of the registered owners of the Bonds.
To the extent and in the respects permitted by the
Ordinance , the provisions of the Ordinance , or any instrument
amendatory thereof or supplemental thereto, may be modified or
amended by action of the City taken in the manner and subject to
-19-
the conditions and exceptions provided in the Ordinance. The
pledge of revenues and other obligations of the City under the
Ordinance may be discharged at or prior to the maturity or prior
redemption of the Bonds upon the making of provision for the
payment of the Bonds on the terms and conditions set forth in
the Ordinance.
It is hereby recited , certified and warranted that all the
requirements of law have been fully complied with by the proper
officers of the City in the issuance of this Bond; that it is
issued pursuant to and in strict conformity with the
Constitution and all other laws of the State of Colorado,
including the home rule charter of the City, and with the
Ordinance and any instrument supplemental thereto ; that this
Bond does not contravene any constitutional, charter or
statutory limitation of the State of Colorado or any limitation
of the City Charter ; and that this Bond and each of the other
Bonds of the series of which this is one are issued under the
authority of the Ordinance.
For the payment of this Bond and the interest hereon , the
City pledges the exercise of all its lawful corporate powers.
This Bond is transferable only upon the registration books
of the City at the office of the City Clerk or a successor
registrar , at the request of the Registered Owner or his or its
duly authorized attorney-in-fact or legal representative , upon
surrender hereof together with a written instrument of transfer
duly executed by the Registered Owner or his or its duly
authorized attorney-in-fact or legal representative with
guaranty of signature satisfactory to the City Clerk , containing
written instructions as to the details of the transfer , along
with the social security number or federal employer
identification number of the transferee and , if the transferee
is a trust , the names and social security numbers of the settlor
and beneficiary of the trust. Transfers shall be made without
charge , except that the City Clerk may also require payment of a
sum sufficient to defray any tax or other governmental charge
that may hereafter be imposed in connection with any transfer of
Bonds. No registration or transfer of this Bond shall be
effective until entered on the registration books of the City.
The City Clerk shall deliver to the new registered Owner a new
Bond or Bonds of the same aggregate principal amount , maturing
in the same year , and bearing interest at the same per annum
rate as the Bond or Bonds surrendered. Such Bond shall be dated
its date of execution by the Finance Director of the City. The
City Clerk shall not be required to transfer ownership of this
Bond during the fifteen (15) days prior to the first mailing of
any notice of redemption or to transfer ownership of any Bond
selected for redemption on or after the date of such mailing .
The Registered Owner may also exchange this Bond for another
Bond or Bonds of authorized denominations. The City may deem
and treat the person in whose name this Bond is last registered
-20-
upon the books of the City as the absolute Owner hereof for the
purposeof receiving payment of the principal of and interest on
9
this Bond and for all other purposes , and all such payments so
made to such person or upon his order shall be valid and
effective to satisfy and discharge the liability of the City
upon this Bond to the extent of the sum or sums so paid , and the
City shall not be affected by any notice to the contrary.
-21-
(Assignment)
ASSIGNMENT
FOR VALUE RECEIVED , the undersigned sells , assigns and
transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Name and Address of Assignee)
the attached Bond and does hereby irrevocably constitute and
appoint r I , or its
successor , to transfer said Bond on the books kept for
registration thereof.
Dated :
Signature guaranteed:
(Bank , Trust Company or Firm)
NOTICE: The signature to this
assignment must correspond with
the name of the Registered
Owner as it appears upon the
face of the attached Bond in
every particular without
alteration or enlargement or
any change whatever.
(End of Form of Bond]
-22-
C. Bonds Ec_ually Secured. The covenants and agreements
herein set forth to be performed on behalf of the City shall be
for the equal benefit, protection and security of the Owners of
any and all of the Bonds , all of which, regardless of the time
or times of their maturity, shall be of equal rank without
preference , priority or distinction of any of the Bonds over any
other thereof, except as otherwise expressly provided in or
pursuant to this Ordinance.
D. Special Obligations . All of the Bonds , as to all Debt
Service Requirements thereof , shall be payable and collectible
solely out of the Pledged Revenues , which revenues are hereby so
assigned and pledged for that purpose ; the Owner or Owners of
any of the Bonds may not look to any general or other fund of
the City for the payment of the Debt Service Requirements ,
except the special funds pledged therefor , and the Bonds shall
not be considered or held to be general obligations of the City
but shall constitute special and limited obligations of the
City. The Bonds are not payable in whole or in part from ad
valorem taxes of the City, and the full faith and credit of the
City is not pledged for payment of the Bonds.
Section 4 . Sale of Bonds .
A. Public Sale. The City has heretofore mailed Official
Notice of Bond Sale for the Bonds. Sealed bids for the Bonds
were received and opened by the Finance Director on October 30 ,
1984 , and it was determined that the Purchaser was the lowest
and best bidder therefor .
B. Award of Contract . The contract for the purchase of
the Bonds is hereby awarded to the Purchaser at the price
specified in the Purchaser ' s bid and upon the terms set forth in
this Ordinance.
Section 5. Disposition of Bond Proceeds and Other Revenues ;
Funds and Accounts Adopted or Created by Ordinance ; Security For
Bonds. The proceeds from the sale of the Bonds and the Pledged
Revenues received by the City shall be deposited by the City in
the funds described in this Section 5, to be accounted for in
the manner and priority set forth in this Section 5.
The validity of the Bonds shall not be dependent on or
be affected by the validity or regularity of any proceedings
relating to the Project or any part thereof. The Purchaser of
the Bonds , any associate thereof , and any subsequent Owner of
any Bonds shall in no manner be responsible for the application
or disposal by the City or by any of its officers , agents and
employees of the moneys derived from the sale of the Bonds or of
any other moneys designated in this Section 5.
Until the proceeds of the Bonds are applied as provided
in this Section 5, the proceeds of the Bonds shall be subject to
-23-
a lien thereon and pledge thereof for the benefit of the Owners
of the Bonds from time to time as provided in this Section 5.
The Pledged Revenues , and all moneys and securities
paid or to be paid to or held or to be held in any fund or
account hereunder are hereby assigned and pledged to secure the
payment of the Debt Service Requirements of the Bonds , subject
to the provisions herein relating to the Capital Projects Fund
and subject to the application of the Pledged Revenues for
payment of Debt Service Requirements of Parity Securities ,
including the Bonds ; and this assignment and pledge shall be
valid and binding from and after the date of the first delivery
of the Bonds , and the moneys , as received by the City and hereby
assigned and pledged , shall immediately be subject to the lien
of this assignment and pledge without any physical delivery
thereof , any filing , or further act, and the lien of this
assignment and pledge and the obligation to perform the
contractual provisions hereby made shall have priority over any
or all other obligations and liabilities of the City (except as
herein otherwise expressly provided) , and the lien of this
assignment and pledge shall be valid and binding as against all
parties having claims of any kind in tort , contract or otherwise
against the City (except as herein otherwise expressly
provided) , irrespective of whether such parties have notice
thereof.
A. Capital Projects Fund. The proceeds of the Bonds ,
except the sums required in Sections 5C and 5D hereof to be
deposited in the Principal and Interest Account and the Reserve
Account , shall be deposited in the Capital Projects Fund and
shall be used and withdrawn only as provided in this Section 5A.
The proceeds of the Bonds deposited in the Capital Projects
Fund , except as herein otherwise expressly provided, shall be
used and paid out from time to time solely for the purpose of
paying the Cost of the Project and of paying the principal of ,
interest on , and any commitment fee due in connection with the
Bond Anticipation Note and are hereby pledged therefor . Any
surplus proceeds of the Bonds remaining in the Capital Projects
Fund after completion of the Project and payment of the Bond
Anticipation Note may be transferred to the Principal and
Interest Account and used for the purposes of the Principal and
Interest Account , may be used to the extent feasible to call and
redeem the Bonds in advance of maturity or may be used to pay
the costs of other public improvements in the City. The City
shall transfer any proceeds of the Bonds credited to the Capital
Projects Fund, without further order , to the Principal and
Interest Account to pay the Debt Service Requirements of the
Bonds as the same become due whenever and to the extent moneys
in the Principal and Interest Account and the Reserve Account or
moneys otherwise available therefor are insufficient for that
purpose , unless such proceeds shall be needed to defray
obligations accrued and to accrue under any contracts then
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existing and pertaining to the Project . Any moneys so used
shall be restored to the Capital Projects Fund from the first
Pledged Revenues thereafter received and not needed to meet the
requirements provided in Sections 5C and 5D hereof.
B. Sales and Use Tax Fund Deposits . For so long as any of
the Bonds shall be Outstanding , as to any Debt Service
Requirements , except as otherwise provided herein, the entire
Pledged Revenues , upon their receipt from time to time by the
City, shall be set aside and credited immediately, and the City
hereby covenants with the Owners of the Bonds to so set aside
and credit the Pledged Revenues immediately, to a special
separate fund designated as the City of Fort Collins , Colorado ,
Sales and Use Tax Fund. " For so long as any of the Bonds shall
be Outstanding as to any Debt Service Requirements , the Sales
and Use Tax Fund shall be accumulated and administered, and the
moneys on deposit therein shall be applied , in the following
order of priority:
(1) First , to the Principal and Interest Account and to the
General Fund for deposit to the Reserve for Sales and Use Tax
Revenue Bonds and Interest to pay the Debt Service Requirements
of the Bonds , the Additional Parity Bonds and any other Parity
Securities then Outstanding in the manner set forth in
Section 5C;
(2) Second , to the Reserve Account , in the manner set forth
in Section 50;
( 3) Third, to the payment of the Debt Service Requirements
of Subordinate Bonds or other Subordinate Securities in
accordance with Section 5F; and
(4) Fourth, to be used in accordance with Section 5G.
C. Principal and Interest Account Payments . The City
shall deposit in a special separate fund heretofore created as a
restricted account within the Sales and Use Tax Fund and
designated as the "City of Fort Collins , Colorado , Sales and Use
Tax Revenue Bonds, Principal and Interest Account" forthwith
upon receipt of the proceeds of the Bonds , interest accrued
thereon from their date of issue to the date of delivery thereof
to the Purchaser , to apply to the payment of interest on the
Bonds as the same becomes due after their delivery.
The City shall deposit in the Principal and Interest Account
and in the General Fund for deposit to the Reserve for Sales and
Use Tax Revenue Bonds and Interest , monthly, on or before the
last day of each month beginning in December , 1984, the
following amounts :
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( 1) Interest Pa ments . To the Principal and Interest
Account one-sixt 1 of the aggregate amount of the next
maturing installment of interest on the Bonds , any Additional
Parity Bonds and any other Parity Securities (except the 1980
Bonds) then Outstanding ; to the General Fund for deposit to the
Reserve for Sales and Use Tax Revenue Bonds and Interest the
amount for interest on the 1980 Bonds specified in Ordinance
No. 47 , 1980, of the City.
( 2 ) Principal Payments . To the Principal and Interest
Account one-twelfth (1/12) of the aggregate amount of the next
maturing installment of principal of the Bonds , any Additional
Parity Bonds and any other Parity Securities (except the 1980
Bonds) then Outstanding; to the General Fund for deposit to the
Reserve for Sales and Use Tax Revenue Bonds and Interest the
amount for principal on the 1980 Bonds specified in Ordinance
No . 47, 1980 , of the City.
Such interest and principal shall be promptly naid when due.
The moneys credited to the Principal and Interest Account
shall be used to pay the Debt Service Requirements of the Bonds ,
any Additional Parity Bonds and any other Parity Securities
(except the 1980 Bonds) then Outstanding , as such Debt Service
Requirements become due , except as otherwise provided in this
Ordinance. The Principal and Interest Account shall be
maintained as a sinking fund for the mandatory redemption of
Bonds maturing in the years 2004 and 2009. Any mandatory
sinking fund redemption shall be treated as a maturity for
purposes of this Section 5C.
D. Reserve Account Pavments. The City shall deposit in a
special separate fund heretofore created as a restricted account
within the Sales and Use Tax Fund and designated as the "City of
Fort Collins , Colorado, Sales and Use Tax Revenue Bonds , Reserve
Account , " forthwith upon receipt of the proceeds of the Bonds ,
the sum of $1 , 380, 000. Subject to the payments required by
Section 5C hereof, except as provided in Section 5E hereof , from
and to the extent of any moneys remaining in the Sales and Use
Tax Fund , there shall be credited as hereinafter provided and
from time to time thereafter to the Reserve Account moneys
sufficient to accumulate in and maintain the Reserve Account at
an amount at least equal to the Combined Average Annual Debt
Service Requirements for all Outstanding Bonds , Additional
Parity Bonds and other Parity Securities (except the 1980
Bonds) , which amount shall be maintained as a continuing reserve
to meet possible deficiencies in the Principal and Interest
Account . The amount by which the Combined Average Annual Debt
Service Requirements exceed the sum deposited to the Reserve
Account on the date of issuance of the Bonds shall be
accumulated by depositing such difference to the Reserve Account
in five approximately equal annual installments payable no later
than December 1 , 1985 , and on the same date in each of the years
1986 through 1989, inclusive. No payment need be made into the
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Reserve Account so long as the moneys therein shall equal not
less than said amount. In the event that the amount of the
Reserve Account falls below the minimum amount required to be
maintained therein, then the City will credit to the Reserve
Account that sum of money needed to accumulate or reaccumulate
the amount therein so that at all times the amount of the
Reserve Account equals said minimum amount. The moneys in the
Reserve Account shall be set aside, accumulated , and, if
necessary, reaccumulated as provided herein, from time to time ,
and maintained as a continuing reserve to be used , except as
hereinafter provided in Section 5E and Section 9 hereof , only to
prevent deficiencies in payment of the Debt Service Requirements
of the Bonds , Additional Parity Bonds and any other Parity
Securities (except the 1980 Bonds) then Outstanding , resulting
from failure to deposit into the Principal and Interest Fund
sufficient funds to pay such Debt Service Requirements as the
same accrue.
If at any time the City shall for any reason fail to pay
into the Principal and Interest Account the full amount above
stipulated, then an amount shall be paid into the Principal and
Interest Account at such time from the Reserve Account equal to
the difference between that paid from the Pledged Revenues in
the Sales and Use Tax Fund and the full amount so stipulated.
The money so used shall be replaced to the Reserve Account from
the first moneys credited to the Sales and Use Tax Fund
thereafter received and not required to be otherwise applied by
Section 5C hereof.
Nothing in this Ordinance shall be construed as limiting the
right of the City to augment the Principal and Interest Account
or the Reserve Account with any other money which is legally
available for payment of the Debt Service Requirements of the
Bonds , Additional Parity Bonds or other Parity Securities.
E. Termination of Deposits ; Use of Moneys in Principal and
Interest Account and Reserve Account . No payment need be made
into the Principal and Interest Account or the Reserve Account ,
or both, if the amount in the Principal and Interest Account and
the amount in the Reserve Account total a sum at least equal to
the entire amount of the Outstanding Bonds and any Outstanding
Additional Parity Bonds and Parity Securities (except the 1980
Bonds) , as to all Debt Service Requirements , to their respective
maturities or to any Redemption Date or Redemption Dates on
which the City shall have exercised or shall have obligated
itself to exercise its option to redeem, prior to their
respective maturities, any Bonds , any Additional Parity Bonds
and any other Parity Securities (except the 1980 Bonds) then
Outstanding , and thereafter maturing , both accrued and not
accrued (provided that , solely for the purpose of this
Section 5E , there shall be deemed to be a credit to the Reserve
Account of moneys, Federal Securities and bank deposits , or any
combination thereof , accounted for in any other account or
accounts of the City and restricted solely for the purpose of
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' paying the Debt Service Requirements) , in which case moneys in
the Principal and Interest Account and the Reserve Account in an
amount , except for any known interest or other gain to accrue
from any investment or deposit of moneys pursuant to Section 6B
hereof from the time of any such investment or deposit to the
time or respective times the proceeds of any such investment or
deposit shall be needed for such payment , at least equal to such
Debt Service Requirements , shall be used together with any such
gain from such investments and deposits solely to pay such Debt
Service Requirements as the same become due ; and any moneys in
excess thereof in the Principal and Interest Account and the
Reserve Account and any other moneys derived from the Pledged
Revenues or otherwise pertaining to the Project may be used in
any lawful manner determined by the City.
The moneys in the Principal and Interest Account and in the
Reserve Account shall be used solely and only for the purpose of
paying the Debt Service Requirements of the Bonds , any
Additional Parity Bonds and any other Parity Securities (except
the 1980 Bonds) authorized and Outstanding from time to time ;
but any moneys at any time in excess of the minimum amount
required to be maintained in the Reserve Account may be
withdrawn therefrom and transferred from time to time to the
Principal and Interest Account and distributed in the same
manner as other moneys in the Principal and Interest Account.
f Add Subordinate Securities.F. Payment o Additional es.
Subsequent to the payments required by the foregoing provisions
of this Section 5 , any moneys remaining in the Sales and Use Tax
Fund may be used by the City for the payment of Debt Service
Requirements of Subordinate Securities payable from the Pledged
Revenues and hereafter authorized to be issued in accordance
with this Ordinance and any other provisions herein supplemental
thereto , including reasonable reserves for such Subordinate
Securities , as the same accrue ; but the lien of such Subordinate
Securities on the Pledged Revenues and the pledge thereof for
the payment of such Subordinate Securities shall be subordinate
to the lien and pledge of the Bonds , Additional Parity Bonds and
any Parity Securities as herein provided.
G. Use of Remaining Revenues . After the payments
hereinabove required to be made by Sections 5C through 5F hereof
are made , at the end of any month, or whenever in any month
there shall have been credited to the Principal and Interest
Account and to the General Fund for deposit to the Reserve for
Sales and Use Tax Revenue Bonds and Interest , and to the Reserve
Account , for the payment of the Bonds and any other securities
payable from the Pledged Revenues all amounts required to be
deposited in those funds at that time , as herein provided, any
remaining Pledged Revenues shall be transferred to any fund of
the City.
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H. Budget and Appropriation of Sums. The sums provided to
make the payments specified in this Section 5 are hereby
appropriated for said purposes , and said amounts for each year
shall be included in the annual budget and the appropriation
ordinance or measures to be adopted or passed by the City
Council in each year respectively while any of the Bonds , either
as to principal or interest, are Outstanding and unpaid. No
provisions of any constitution , statute , charter , ordinance ,
resolution , or other order or measure enacted after the issuance
of the Bonds shall in any manner be construed as limiting or
impairing the obligation of the City to keep and perform the
covenants contained in this Ordinance so long as any of the
Bonds remain Outstanding and unpaid. Nothing herein shall
prohibit the City Council from appropriating other funds of the
City legally available for this purpose to the Sales and Use Tax
Fund or the Principal and Interest Account for the purpose of
providing for the Debt Service Requirements of the Bonds.
Section 6. General Administration of Funds and Accounts.
A. Places and Times of Deposits. Each of the special
funds referred to in Section 5 hereof shall be maintained in a
Commercial Bank and kept separate and apart from all other
accounts or funds of the City as trust accounts solely for the
purposes herein designated therefor . For purposes of investment
of moneys , nothing herein prevents the commingling of moneys
accounted for in any two or more such accounts pertaining to the
Pledged Revenues or to such fund and any other funds of the City
to be established under this Ordinance. Such account shall be
continuously secured to the fullest extent required and
permitted by the laws of the State for the securing of public
funds and shall be irrevocable and not withdrawable by anyone
for any purpose other than the respective designated purposes of
such funds and accounts. Each periodic payment shall be
credited to the proper account not later than the date therefor
herein designated, except that when any such date shall be a
Saturday, a Sunday or a legal holiday, then such payment shall
be made on or before the next preceding business day.
B. Investment of Funds and Accounts . Any moneys in any
fund or account established by this Ordinance may be deposited ,
invested , or reinvested in any manner permitted by law.
Securities or obligations purchased as such an investment shall
either be subject to redemption at any time at face value by the
holder thereof at the option of such holder , or shall mature at
such time or times as shall most nearly coincide with the
expected need for moneys from the fund or account in question.
Securities or obligations so purchased as an investment of
moneys in any such fund or account shall be deemed at all times
to be a part of the applicable fund or account ; provided that ,
with the exception of the Reserve Account, the interest accruing
on such investments and any profit realized therefrom shall be
credited to the Sales and Use Tax Fund , and any loss resulting
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from such investments shall be charged to the particular fund or
account in question. Interest and profit realized from
investments in the Reserve Account shall be credited to the
Reserve Account , provided that, so long as the amount in the
Reserve Account equals at least the minimum amount specified in
Section 5D hereof , such interest and profit may be transferred
to the Principal and Interest Account and distributed in the
same manner as other moneys in the Principal and Interest
Account . Any loss resulting from such investments in the
Reserve Account shall be charged to the Reserve Account. The
City shall present for redemption or sale on the prevailing
market any securities or obligations so purchased as an
investment of moneys in a given fund or account whenever it
shall be necessary to do so in order to provide moneys to meet
any required payment or transfer from such fund or account. The
City shall have no obligation to make any investment or
reinvestment hereunder, unless any moneys on hand and accounted
for in any one account exceeds $5, 000 and at least $5, 000
therein will not be needed for a period of not less than sixty
(60) days . In such event the City shall invest or reinvest not
less than substantially all of the amount which will not be
needed during such sixty (60) day period , except for any moneys
on deposit in an interest bearing account in a Commercial Bank ,
without regard to whether such moneys are evidenced by a
certificate of deposit or otherwise, pursuant to this Section 6B
and Section 6D hereof ; but the City is not required to invest ,
or so to invest in such a manner , any moneys accounted for
hereunder if any such investment would contravene the covenant
concerning arbitrage in Section 80 hereof.
C. No Liability for Losses Incurred in Performinq Terms of
Ordinance. Neither the City nor any officer of the City shall
be liable or responsible for any loss resulting from any
investment or reinvestment made in accordance with this
Ordinance.
D. Character of Funds . The moneys in any fund herein
authorized shall consist of lawful money of the United States or
investments permitted by Section 6B hereof or both such money
and such investments . Moneys deposited in a demand or time
deposit account in or evidenced by a certificate of deposit of a
Commercial Bank pursuant to Sections 6A and 6B hereof ,
appropriately secured according to the laws of the State, shall
be deemed lawful money of the United States.
E. Accelerated Pavments Optional . Nothing contained
herein prevents the accumulation in any fund herein designated
of any monetary requirements at a faster rate than the rate or
minimum rate, as the case may be , provided therefor , but no
payment shall be so accelerated if such acceleration shall cause
a default in the payment of any obligation of the City
pertaining to the Pledged Revenues. Nothing herein contained
requires in connection with the Pledged Revenues received in any
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Fiscal Year the accumulation in any fund or account for the
payment in the Comparable Bond Year of Debt Service Requirements
due in connection with any series of bonds or other securities
payable from the Pledged Revenues and heretofore , herein or
hereafter authorized , in excess of any reserves required to be
accumulated and maintained therefor , and of any existing
deficiencies , and payable from such fund or account , as the case
may be , except as may be otherwise provided herein.
Section 7. Priorities ; Liens ; Issuance of Additional Bonds
and Additional Securities .
A. First Lien on Pledged Revenues . Except as expressly
provided in this Ordinance with respect to the issuance of
Additional Parity Bonds , Parity Securities or Subordinate
Securities , the Pledged Revenues shall be and hereby are
irrevocably assigned, pledged and set aside to pay the Debt
Service Requirements of the Bonds. The Bonds constitute an
irrevocable and first lien (but not necessarily an exclusive
first lien) upon the Pledged Revenues. The Bonds , any
Additional Parity Bonds and any other Parity Securities
authorized to be issued and from time to time Outstanding are
equitably and ratably secured by a lien on the Pledged Revenues
and shall not be entitled to any priority one over the other in
the application of the Pledged Revenues regardless of the time
or times of the issuance of the Bonds , any Additional Parity
Bonds and any other Parity Securities , it being the intention of
the City Council that there shall be no priority among the
Bonds , any Additional Parity Bonds and any other Parity
Securities , regardless of the fact that they may be actually
issued and delivered at different times.
B. Issuance Of Parity Bonds. Nothing herein, subject to
the limitations stated in Section 7G hereof , prevents the
issuance by the City of Additional Parity Bonds or other
additional Parity Securities payable from the Pledged Revenues
and constituting a lien on the Pledged Revenues on a parity
with , but not prior or superior to , the lien thereon of the
Bonds , or prevents the issuance of bonds or other securities
refunding all or part of the Bonds , except as provided in
Sections 7F through 7G hereof ; but before any such Additional
Parity Bonds or other additional Parity Securities are
authorized or actually issued (excluding any parity refunding
securities permitted to be issued in accordance with Section 7F
hereof) the following provisions must first be satisfied :
(1) Absence of Default . At the time of the adoption of the
supplemental ordinance or other instrument authorizing the
issuance of the Additional Parity Bonds as provided in
Section 7G hereof, the City shall not be in default in making
any payments required by Section 5 hereof.
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! (2) Historic Revenues Test. The Pledged Revenues , as
certified by an Independent Accountant , derived in the last
complete Fiscal Year immediately preceding the date of the
issuance of such Additional Parity Bonds or other additional
Parity Securities, shall have been sufficient to pay an amount
at least equal to 150% of the Average Annual Debt Service
Requirements for the Outstanding Bonds , Additional Parity Bonds ,
Parity Securities and the Additional Parity Bonds or other
additional Parity Securities proposed to be issued. If sales
and use taxes in excess of those authorized as of the date
hereof have been established during such Fiscal Year , the amount
nt
of- such Pledged Revenues may be adjusted by applying
additional sales and use tax as if it had been in effect during
the entire period during such Fiscal Year .
(3) Adequate Reserves . The proceedings under which any
such Additional Parity Bonds or other additional Parity
Securities
are is P sued must pr
ovide for the deposits of moneys to
the Reserve Account from any source legally available to the
City, and contain a covenant by the City to maintain the Reserve
Account , in an amount at least equal to the minimum amount
required by this Ordinance.
( 4 ) Re uirements of Other Ordinances . Any other or further
requirements of Ordinance No. T , 1980 , Ordinance No. 87 , 1981 ,
and Ordinance No. 137 , 1982, of the City
Ordinance No. 89 , 1982 ,
must have been satisfied.
C. Certification of Revenues . In the case of the
computation of the revenue tests provided in Section 7B , the
specified and required written certifications by the Independent
Accountant that such annual revenues are sufficient to pay such
amounts as provided in Section 7B hereof shall be conclusively
presumed to be accurate in determining the right of the City to
authorize , issue, sell and deliver Additional Parity Bonds or
other additional Parity Securities on a parity with the Bonds
and other Parity Securities .
D. Subordinate Securities Permitted . Nothing herein,
subject to the limitations stated in Section 7G hereof , prevents
the City from issuing additional bonds or other additional
securities for any lawful purpose payable from the Pledged
Revenues and having a lien thereon subordinate , inferior and
junior to the lien thereon of the Bonds.
E. Superior Securities Prohibited . Nothing herein permits
the City to issue additional bonds or other additional
securities payable from the Pledged Revenues and having a lien
thereon prior and superior to the lien thereon of the Bonds.
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F. Refunding Bons . At any time after the Bonds , or any
part thereof , are issuded and remain Outstanding , if the City
Council shall find it desirable to refund any Outstanding Bonds ,
or other Outstanding securities payable from and constituting a
lien upon any Pledged Revenues , such Bonds or other securities ,
or any part thereof , may be refunded regardless of whether the
priority of the lien for the payment of the refunding securities
on the Pledged Revenues is different from the priority of the
lien for the payment of the refunded securities (except as
provided in Section 7E) ; provided that the issuance of any such
refunding bonds or other refunding securities shall be subject
to the following additional requirements and conditions :
( 1) Partial Refundings. Notwithstanding the provisions of
any other ordinance of the City authorizing the issuance of any
series of securities payable from the Pledged Revenues other
than the Bonds , the City may refund in part the Outstanding
Bonds . Any restrictions on partial refundings contained in such
other ordinances shall continue to apply to the Outstanding
securities of such other series of securities.
(2) Protection of Unrefunded Bonds . Any such refunding
obligations payable, in whole or part , from the Pledged Revenues
may be issued with such details as the City may by ordinance
provide so long as there is no impairment of any contractual
obligation imposed upon the City by any proceedings authorizing
the issuance of the unrefunded Bonds or securities. No such
refunding obligations payable, in whole or part , from the
Pledged Revenues may be issued on a parity with the unrefunded
Bonds or securities without the consent of the Owner or Owners
of such unrefunded Bonds or securities unless either (1) the
refunding obligations do not increase for any Fiscal Year in
which the unrefunded Bonds or securities will be Outstanding , by
more than $5, 000, the aggregate Debt Service Requirements
(excluding redemption premiums) for such year evidenced by such
refunding obligations and by the Outstanding Bonds or securities
not refunded or (2) such refunding bonds or refunding securities
are issued in compliance with Sections 7B and 7C.
(3) Limitations Upon Refundings . Any refunding bonds or
refunding securities payable from any Pledged Revenues shall be
issued with such details as the City may by instrument provide ,
subject to the provisions of Section 7G hereof , and subject to
the inclusion of the applicable rights and privileges designated
in Section 7F (2) .
G. Supplemental Ordinances . Additional bonds or other
additional securities payable from any Pledged Revenues shall be
issued only after authorization thereof by ordinance ,
supplemental ordinance or other instrument of the City Council ,
in substantially the same form as this Ordinance, stating the
purpose or purposes of the issuance of such additional
securities , directing the application of the proceeds thereof to
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such purpose or purposes , directing the execution thereof , and
fixing and determining the date, principal amount , maturity or
maturities , designation and numbers thereof , the maximum rate or
rates of interest to be borne thereby, any prior redemption
privileges of the City with respect thereto, and providing for
payments to and from the Sales and Use Tax Fund in accordance
with this Ordinance. All additional securities shall bear such
date , shall be payable at such place or places , may be subject
to redemption prior to maturity on such terms and conditions , as
may be provided, and shall bear interest at such rate or at such
different or varying rates per annum, all as may he fixed by
ordinance, instrument or other document of the City Council .
Section 8. Covenants.
The City hereby particularly covenants and agrees with the
Owners of the Bonds from time to time , and makes provisions
which shall be a part of its contract with such Owners , which
covenants and provisions shall be kept by the City continuously
until all of the Bonds and the interest thereon , have been fully
paid and discharged , to the effect and with the purpose that :
A. Continuance and Collection of Taxes .
(1) Except as provided in Section 8A of Ordinance No. 87 ,
lg81 , Ordinance No. 58 , 1967 , Ordinance No. 140 , 1979, Ordinance
No. 149 , 1981 and Ordinance No. 63, 1984 as originally adopted ,
have not been repealed or amended and are now in full force and
effect . The City will not repeal or amend said ordinances in
any manner which would diminish the Pledged Sales and Use Tax
Revenues.
(2) The City will continue to levy, impose, administer ,
enforce and collect the Sales and Use Tax on sales and purchases
of tangible personal property at retail and storage, use,
distribution and consumption of tangible personal property
purchased or acquired at retail, within the City, in accordance
with Ordinance No. 58 , 1967, Ordinance No. 140 , 1979, Ordinance
No. 149 , 1981 and Ordinance No. 63, 1984 without reduction in
the percentage rate of the Sales and Use Tax as set forth
therein.
(3) The City shall maintain the Sales and Use Tax Fund as a
fund of the City separate and distinct from all other funds of
the City and shall place the Pledged Sales and Use Tax Revenues
therein. The Sales and Use Tax Fund shall be subject to
appropriation only as authorized by this Ordinance.
(4) All of the Pledged Revenues resulting from the
imposition and collection of the Sales and Use Tax shall be
subject to the payment of the Debt Service Requirements of all
securities payable from the Pledged Revenues , including reserves
therefor , as provided herein or in any instrument supplemental
or amendatory hereto.
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i
B. Defense of Le4alit of Pledged Revenues. There is not
pending or threatened any suit , action or proceeding against or
affecting the City before or by any court , arbitrator ,
administrative agency or other governmental authority which
affects the validity or legality of this Ordinance , Ordinance
No. 58 , 1967, Ordinance No. 140 , 1979 , Ordinance No. 149, 1981
or Ordinance No. 63 , 1984 , the imposition and collection of the
Sales and Use Tax, or any of the City' s obligations under such
Ordinances.
The City shall , to the extent permitted by law, defend the
validity and legality of the Sales and Use Tax and Ordinance
No. 58 , 1967, Ordinance No. 140 , 1979 , Ordinance No. 149, 1981
and Ordinance No. 63 , 1984 , and all amendments thereto against
all claims , suits and proceedings which would diminish or impair
the Pledged Revenues security for the Bonds. Furthermore, the
City shall amend from time to time the provisions of Ordinance
No. 58 , 1967, Ordinance No. 140 , 1979 , Ordinance No. 149 , 1981
and Ordinance No. 63, 1984 , as necessary to prevent impairment
of the Pledged Revenues as required to meet the Debt Service
Requirements of the Bonds when due.
Except as permitted in this Ordinance, the City has not
assigned or pledged the Pledged Revenues in any manner which
would diminish the security for payment of the Bonds .
C. Performance of Duties . The City, acting and through
its officers , or otherwise, shall faithfully and punctually
perform, or cause to be performed , all duties with respect to
the Pledged Revenues and the Project required by the
Constitution and laws of the State, the Charter and the various
ordinances , resolutions and contracts of the City, including ,
without limitation, the proper segregation of the proceeds of
the Bonds and the Pledged Revenues and their application from
time to time to the respective funds provided therefor.
D. Contractual Obligations . The City will perform all
contractual obligations undertaken by it under the contract with
the Purchaser , and any other agreements relating to the Bonds
and the Pledged Revenues and to the Project.
E. Further Assurances . At any and all times the City
shall , so far as it may be authorized by law, pass , make, do,
execute, acknowledge, deliver , and file or record all and every
such further instruments , acts , deeds , conveyances , assignments ,
transfers , other documents, and assurances as may be necessary
or desirable for the better assuring , conveying , granting ,
assigning and confirming all and singular the rights , the
Pledged Revenues and other funds and accounts hereby pledged or
assigned , or intended so to be, or which the City may hereafter
become bound to pledge or to assign, or as may be reasonable and
required to carry out the purposes of this Ordinance. The City,
acting by and through its officers , or otherwise , shall at all
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times , to the extent permitted by law, defend , preserve and
protect the pledge of the Pledged Revenues and other funds and
accounts pledged hereunder and all the rights of every Owner of
any of the Bonds against all claims and demands of all Persons
whomsoever .
F. Conditions Precedent . Upon the date of issuance of any
of the Bonds, all conditions , acts and things required by the
Constitution or laws of the United States , the Constitution or
laws of the State, the Charter, or this Ordinance , to exist , to
have happened , and to have been performed precedent to or in the
issuance of the Bonds shall exist, have happened and have been
performed , and the Bonds , together with all other obligations of
the City, shall not contravene any debt or other limitation
prescribed by the Constitution or laws of the United States , the
Constitution or laws of the State or the Charter.
G. Records. The City will keep proper books of record and
account , separate and apart from all other records and accounts ,
showing complete and correct entries of all transactions
relating to the funds referred to herein , and payments made from
the Capital Projects Fund.
H. Protection of Security. The City, its officers , agents
and employees, shall not take any action in such manner or to
such extent as might prejudice the security for the payment of
the Debt Service Requirements of the Bonds and any other
securities payable from the Pledged Revenues according to the
t
terms thereof . No contract shall be entered into nor any other
action taken by which the rights of any Owner of any Bond or
other security payable from Pledged Revenues might be
prejudicially and materially impaired or diminished.
I. Accumulation of Interest Claims . In order to prevent
any accumulation of claims for interest after maturity, the City
shall not directly or indirectly extend or assent to the
extension of the time for the payment of any claim for interest
on any of the Bonds or any other securities payable from Pledged
Revenues ; and the City shall not directly or indirectly be a
party to or approve any arrangements for any such extension or
for the purpose of keeping alive any of such other claims for
interest. If the time for the payment of any such installment
of interest is extended in contravention of the foregoing
provisions , such installment or installments of interest after
such extension or arrangement shall not be entitled in case of
default hereunder to the benefit or the security of this
Ordinance , except upon the prior payment in full of the
principal of all of the Bonds and any such securities the
payment of which has not been extended.
J. Prompt Payment of Bonds. The City shall promptly pay
the Debt Service Requirements of every Bond at the places , on
the manner specified he the Bonds d in rein and in a on s
the dates , an p
according to the true intent and meaning hereof.
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K. Use Of Principal and Interest Account and Reserve
Account. The Principal and Interest Account and the Reserve
Account shall be used solely and only, and the moneys credited
to such accounts are hereby pledged , for the purpose of paying
the Debt Service Requirements of the Bonds , Additional Parity
Bonds or other Parity Securities (except the 1980 Bonds) to
their respective maturities or any Redemption Date or Redemption
Dates on which the City is obligated to redeem Bonds , Additional
Parity Bonds or other Parity Securities (except the 1980 Bonds)
subject to the provisions concerning surplus moneys in Section
5E and subject to Section 9 hereof.
L. Additional Securities . The City shall not hereafter
issue any bonds or securities payable from Pledged Revenues
other than the Bonds without compliance with the requirements
with respect to the issuance of Additional Parity Bonds or
additional Parity Securities set forth herein to the extent
applicable.
M. Other Liens. Other than as permitted herein, there are
no liens or encumbrances of any nature whatsoever on or against
the Pledged Revenues derived or to be derived.
N. Surety Bonds . Each official or other person having
custody of any Pledged Revenues , or responsible for their
handling , shall be fully bonded at all times , which bond shall
be conditioned upon the proper application of said moneys.
O. Arbitrage Covenant . The City covenants that it will
make no investment or other use of proceeds of the Bonds at any
time during the term thereof which, if such investment or other
use had been reasonably expected on the date the Bonds are
issued, 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.
Section 9 . Defeasance.
When all Debt Service Requirements of the Bonds have been
duly paid , the pledge and lien and all obligations hereunder
shall thereby be discharged and the Bonds shall no longer be
deemed to be Outstanding within the meaning of this Ordinance.
There shall be deemed to be such due payment when the City has
placed in escrow or in trust with a Trust Bank located within or
without the State, moneys or Federal Securities in an amount
sufficient (including the known minimum yield available for such
purpose from Federal Securities in which such amount wholly or
in part may be initially invested) to meet all Debt Service
Requirements of the Bonds , as the same become due to the final
maturities of the Bonds or upon any Redemption Date as of which
the City shall have exercised or shall have obligated itself to
exercise its prior redemption option by a call of Bonds for
payment then. The Federal Securities shall become due prior to
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the respective times at which the proceeds thereof shall be
needed , in accordance with a schedule established and agreed
upon between the City and such bank at the time of the creation
of the escrow or trust , or the Federal Securities shall be
subject to redemption at the option of the Owner thereof to
assure such availability as so needed to meet such schedule.
Nothing herein shall be construed to prohibit a partial
defeasance of the Outstanding Bonds in accordance with the
provisions of this Section 9.
Section 10. Default Provisions and Remedies of Bond Owners.
A. Events of Default. Each of the following events is
hereby declared to be an to constitute an Event of Default :
(1) Nonpayment of Principal or Premium. Payment of the
principal of any o the Bonds or any prior redemption premium
due in connection therewith, or both, is not made when the same
becomes due and payable , either at maturity or by proceedings
for prior redemption , or otherwise ;
(2) Nonpavment of Interest. Payment of any installment of
interest is not made when the same becomes due and payable ;
(3) Incapable to Perform . The City for any reason is , or
is rendered , incapable of fulfilling its obligations hereunder ;
(4) Nonperformance of Duties . The City shall have failed
to carry out and to perform (or in good faith to begin the
performance of) all acts and things lawfully required to be
carried out to be performed by it under any contract relating to
the Bonds or the Pledged Revenues or to the Project , or to all
tion thereof, or otherwise including , without
or an combination , 9
Y
limitation , this Ordinance, and such failure shall continue for
sixty (60) days after receipt of notice from the Owners of 10%
in principal amount of the Bonds then Outstanding ;
(5) Appointment of Receiver . An order or decree is entered
by a court of competent Jurisdiction , with the consent or
acquiescence of the City, appointing a receiver or receivers for
the Pledged Revenues and any other moneys subject to the lien to
secure the payment of the Bonds , or if any order or decree ,
having been entered without the consent or acquiescence of the
City, is not vacated or discharged or stayed on appeal within
sixty (60) days after entry;
(6) Default of Any Provision. The City makes any default
in the due and punctual performance of any other of the
representations , covenants , conditions , agreements and other
provisions contained in the Bonds or in this Ordinance on its
part to be performed , and if such default continues for sixty
(60) days after written notice , specifying such default and
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requiring the same to be remedied , is given to the City by the
Owners of 10% in principal amount of the Bonds then Outstanding.
B. Remedies for Defaults . Upon the happening and
continuance of any of the Events of Default , as provided in
Section 10A hereof, then and in every case the Owner or Owners
of not less than 10% in principal amount of the Bonds then
Outstanding , including , without limitation , a trustee or
trustees therefor , may proceed against the City and its agents ,
officers and employees to protect and to enforce the rights of
any Owner of Bonds under this Ordinance by mandatory injunction
or by other suit , action, or special proceedings in equity or at
law, in any court of competent jurisdiction, either for the
appointment of a receiver or an operating trustee or for the
specific performance of any covenant or agreement contained
herein or for any proper legal or equitable remedy as such Owner
or Owners may deem most effectual to protect and to enforce the
rights aforesaid, or thereby to enjoin any act or thing which
may be unlawful or in violation of any right of any Owner of any
Bond, or to require the City to act as if it were the trustee of
an expressed trust , or any combination of such remedies , or as
otherwise may be authorized by any statute or other provision of
law. All such proceedings at law or in equity shall be
instituted , had and maintained for the equal benefit of all
Owners of the Bonds , and any Parity Securities then
Outstanding . Any receiver or operating trustee appointed in any
proceedings to protect the rights of such Owners hereunder , the
consent to any such appointment being hereby expressly granted
by the City, may collect , receive and apply all Pledged Revenues
arising after the appointment of such receiver or operating
trustee in the same manner as the City itself might do.
C. Rights and Privileges Cumulative. The failure of any
Owner of any Outstanding Bond to proceed in any manner herein
provided shall not relieve the City, or any of its officers ,
agents or employees of any liability for failure to perform or
carry out any duty, obligation or other commitment. Each right
or privilege of any such Owner (or trustee thereof) is in
addition and is cumulative to any other right or privilege, and
the exercise of any right or privilege by or on behalf of any
Owner shall not be deemed a waiver of any other right or
privilege thereof. Each Owner of any Bond shall be entitled to
all of the privileges , rights , and remedies provided or
permitted in this Ordinance and as otherwise provided or
permitted by law or in equity or by other statutes , except as
provided in Section 12A and Section 12B hereof , and subject to
the applicable provisions concerning the Pledged Revenues and
the proceeds of the Bonds. Nothing herein affects or impairs
the right of any Owner of any Bond to enforce the payment of the
Debt Service Requirements due in connection with his Bond or the
obligation of the City to pay the Debt Service Requirements of
each Bond to the Owner thereof at the time and the place
expressed in such Bond.
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D. Duties Upon Defaults . Upon the happening of any of the
Events of Default as provided in Section 10A hereof, the City,
in addition , will do and perform all proper acts on behalf of
and for the Owners of the Outstanding Bonds to protect and to
preserve the security created for the payment of their Bonds and
to insure the payment of the Debt Service Requirements promptly
as the same become due . During any period of default , so long
as any of the Bonds , as to any Debt Service Requirements , are
Outstanding , except to the extent it may be unlawful to do so ,
all Pledged Revenues shall be paid into the Principal and
Interest Account , or , in the event of securities hereafter or
heretofore issued and Outstanding during such period of time on
a parity with the Bonds , shall be applied as provided in
Section 5C hereof for all Parity Securities , including the
Bonds , on an equitable and prorated basis , and used for the
purposes therein provided. If the City fails or refuses to
this Section 10D provided , the Owner or Owners of
proceed as in
not less than 10% in principal amount of the Bonds then
Outstanding , after demand in writing, may proceed to protect and
to enforce the rights of the Owners of the Bonds as hereinabove
provided ; and to that end any such Owners of Outstanding Bonds
shall be subrogated to all rights of the City under any
agreement or contract involving the Pledged Revenues entered
into prior to the effective date of this Ordinance or thereafter
while any of the Bonds are Outstanding . Nothing herein requires
the City to proceed as provided herein if it determines in good
faith and without any abuse of its discretion that such action
is likely to affect materially and prejudicially the Owners of
the Outstanding Bonds and any Outstanding Parity Securities.
E. Evidence of Security Owners . Any request , consent or
other instrument which this Ordinance may require or may permit
to be signed and to be executed by the Owner of any Bonds or
other securities may be in one instrument or more than one
instrument of similar tenor and shall be signed or may be
executed by each Owner in person or by his attorney appointed in
writing. Proof of the execution of any such instrument or of
any instrument appointing any such attorney, or the ownership by
any Person of the securities , shall be sufficient for any
purpose of this Ordinance (except as otherwise herein expressly
provided) if made in the following manner :
( 1) Proof of Execution. The fact and the date of the
execution by any Owner of any Bonds or other securities or his
attorney of such instrument may be proved by the certificate ,
which need not be acknowledged or verified , of any officer of a
bank or trust company satisfactory to the City Clerk or of any
notary public or other officer authorized to take
acknowledgments of deeds to be recorded in the state in which he
purports to act , that the individual signing such request or
other instrument acknowledged to him the execution, duly sworn
to before such notary public or other officer ; the authority of
the individual or individuals executing any such instrument on
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behalf of a corporate Owner of any securities may be established
without further proof if such instrument is signed by an
individual purporting to be the president or vice-president of
such corporation with the corporate seal affixed and attested by
an individual purporting to be its secretary or an assistant
secretary; and the authority of any Person or Persons executing
any such instrument in any fiduciary or representative capacity
may be established without further proof if such instrument is
signed by a Person or Persons purporting to act in such
fiduciary or representative capacity; and
(2) Proof of Ownership. The amount of Bonds owned by
any Person executing any instrument as an Owner of Bonds , and
the numbers , date and other identification thereof , together
with the date of his ownership of the Bonds , shall be determined
from the registration books of the City. The amount of other
securities , if applicable, owned by any Person executing any
instrument as an owner of such securities , and the numbers , date
and other identification thereof , together with the date of his
ownership, if in bearer form, may be proved by a certificate
which need not be acknowledged or verified , in form satisfactory
to the City Clerk, executed by a member of a financial firm or
by an officer of a bank or trust company, insurance company or
financial corporation or other depository satisfactory to the
City Clerk , or by any notary public or other officer authorized
to take acknowledgments of deeds to be recorded in the state in
which he purports to act , showing at the date therein mentioned
that such Person exhibited to such member , officer , notary
public or other officer so authorized to take acknowledgments of
deeds or had on deposit with such depository the securities
described in such certificate or if in registered form shall be
determined from the related registration books ; but the City
Clerk may nevertheless in his or her discretion require further
or other proof in cases where he or she deems the same advisable.
F. Warranty Upon Issuance of Bonds . Any of the Bonds as
herein provided , when duly executed and registered for the
purposes provided for in this Ordinance , shall constitute a
warranty by and on behalf of the City for the benefit of each
and every future Owner of any of the Bonds that the Bonds have
been issued for a valuable consideration in full conformity with
law.
G. Immunities of Purchaser . The Purchaser and any
associate thereof are under no obligation to any Owner of the
Bonds for any action that they may not take or in respect of
anything that they may or may not do by reason of any
information contained in any reports or other documents received
by them under the provisions of this Ordinance. The immunities
and exemption from liability of the Purchaser and any associate
thereof hereunder extend to their partners , directors ,
successors , assigns , employees and agents.
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Section 11 . Amendment of Ordinance .
A. Amendment of Ordinance Not Requirinq Consent of Bond
Owners. The City may, without the consent of , or notice to, the
Owners of the Bonds , adopt such ordinances supplemental hereto
(which amendments shall thereafter form a part hereof) for any
one or more or all of the following purposes :
(1) To cure any ambiguity, or to cure, correct or
supplement any defect or inconsistent provision contained in
this Ordinance , or to make any provision with respect to matters
arising under this Ordinance or for any other purpose if such
provisions are necessary or desirable and do not adversely
affect the interests of the Owners of the Bonds ; or
(2) To subject to this Ordinance additional revenues ,
properties or collateral.
B. Amendment of Ordinance Requiring Consent of Bond
Owners. Exclusive of the amendatory ordinances covered by
Section 11A hereof , this Ordinance may be amended or modified by
ordinances or other instruments duly adopted by the City
Council , without receipt by it or any additional consideration ,
but with the written consent of the Owners of sixty-six percent
(66%) in aggregate principal amount of the Bonds and Outstanding
at the time of the adoption of such amendatory ordinance ,
including any Outstanding refunding securities as may be issued
for the purpose of refunding any of the Bonds , provided that no
such amendatory resolution shall permit :
(1) Changing Payment . A change in the maturity or in
the terms of redemption of the principal of any Outstanding Bond
or any installment of interest thereon ; or
(2) Reducing Return. A reduction in the principal
amount of any Bond, the rate of interest thereon , or any premium
payable in connection with the redemption thereof , without the
consent of the Owner of the Bond; or
(3) Prior Lien. The creation of a lien upon or a
pledge of revenues ranking prior to the lien or to the pledge
created by this Ordinance ; or
(4) Modifvinq Amendment Terms . A reduction of the
principal amount or percentages of Bonds , or any modification
otherwise affecting the description of Bonds , otherwise changing
the consent of the Owners of Bonds , which may be required herein
for any amendment hereto ; or
(5) Priorities Between Bonds. The establishment of
priorities as between Bonds issued and Outstanding under the
provisions of this Ordinance ; or
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t '
(6) Partial Modification. Any modifications otherwise
materially and prejudicially a ecting the rights or privileges
of the Owners of less than all of the Bonds then Outstanding.
Whenever the City Council proposes to amend or modify this
Ordinance under the provisions of this Section 11B it shall give
notice of the proposed amendment by mailing such notice to the
Purchaser of the Bonds , or to any successor thereof known to the
City Clerk and to all registered Owners of Bonds on the
registration books of the City. Such notice shall briefly set
forth the the nature of the proposed amendment and shall state
that a copy of the proposed amendatory ordinance or other
instrument is on file in the office of the City Clerk for public
inspection.
C. Time for and Consent to Amendment. Whenever at any
time within one (1) year from the date of the completion of the
notice required to be given by Section 11B hereof there shall be
filed in the office of the City Clerk an instrument or
instruments executed by the Owners of at least sixty-six percent
(66%) in aggregate principal amount of the Bonds then
Outstanding , which instrument or instruments shall refer to the
proposed amendatory ordinance or other instrument described in
such notice and shall specifically consent to and approve the
adoption of such ordinance or other instrument , thereupon , but
not otherwise, the City Council may adopt such amendatory
ordinance or instrument and such ordinance or instrument shall
become effective. If the Owners of at least sixty-six percent
(66%) in aggregate principal amount of the Bonds then
Outstanding , at the time of the adoption of such amendatory
ordinance or instrument, or the predecessors in title of such
Owners , shall have consented to and approved the adoption
thereof as herein provided, no Owner of any Bond whether or not
such Owner shall have consented to or shall have revoked any
consent as herein provided shall have any right or interest to
object to the adoption of such amendatory ordinance or other
instrument or to object to any of the terms or provisions
therein contained or to the operation thereof or to enjoin or
restrain the City from taking any action pursuant to the
provisions thereof. Any consent given by the Owner of a Bond
pursuant to the provisions thereof shall be irrevocable for a
period of six (6) months from the date of the completion of the
notice above provided for and shall be conclusive and binding
upon all future Owners of the same Bond during such period .
Such consent may be revoked at any time after six (6) months
from the completion of such notice , by the Owner who gave such
consent or by a successor in title , by filing notice of such
revocation with the City Clerk , but such revocation shall not be
effective if the Owners of sixty-six percent (66%) in aggregate
principal amount of the Bonds Outstanding as herein provided,
prior to the attempted revocation , shall have consented to and
approved the amendatory instrument referred to in such
revocation.
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D. Unanimous Consent. Notwithstanding anything in the
foregoing provisions contained , the terms and the provisions of
this Ordinance , or of any ordinance or instrument amendatory
thereof , and the rights and the obligations of the City and of
the Owners of the Bonds may be modified or amended in any
respect upon the adoption by the City and upon the filing with
the City Clerk of an instrument to that effect and with the
consent of the Owners of all the then Outstanding Bonds, such
consent to be given in the manner provided in Section 11C
hereof ; and no notice to Owners of Bonds shall be required as
provided in Section 11B hereof , nor shall the time of consent be
limited except as may be provided in such consent.
E. Exclusion of Bonds. At the time of any consent or of
other action taken hereunder the City shall furnish to the City
Clerk a certificate , upon which the Clerk may rely, describing
all Bonds to be excluded for the purpose of consent or of other
action or or any calculation of Outstanding Bonds provided for
hereunder , and , with respect to such excluded Bonds , the City
shall not be entitled or required with respect to such Bonds to
give or obtain any consent or to take any other action provided
for hereunder.
F. Notation on Bonds . Any of the Bonds delivered after
the effective date of any action taken as provided in Section
11B , or Bonds Outstanding at the effective date of such action ,
may bear a notation thereon by endorsement or otherwise in form
approved by the City Council as to such action ; and if any such
Bonds so delivered after such date does not bear such notation,
then upon demand of the Owner of any Bond Outstanding at such
effective date and upon presentation of his Bond for such
purpose at the principal office of the City, suitable notation
shall be made on such Bond by the City Clerk as to any such
action. If the City Council so determines , new Bonds so
modified as in the opinion of the City Council to conform to
such action shall be prepared , executed and delivered; and upon
demand of the Owner of any Bond then Outstanding , shall be
exchanged without cost to such Owner for Bonds then Outstanding
upon surrender of such Outstanding Bonds.
G. Proof of Instruments and Bonds . The fact and date of
execution of any instrument under the provisions of this Section
11 , the amount and number of the Bonds owned by any Person
executing such instrument , and the date of his registering the
same may be proved as provided by Section 10E hereof.
Section 12. Miscellaneous.
A. Character of Agreement . None of the covenants ,
agreements , representations , or warranties contained herein or
in the Bonds shall ever impose or shall be construed as imposing
any liability, obligation , or charge against the City (except
for the special funds pledged therefor) or against the general
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credit of the City payable out of general funds or out of any
funds derived from general property taxes.
B. No Pledge of Property. The payment of the Bonds is not
secured by an encumbrance, mortgage or other pledge of property
of the City except for the Pledged Revenues of the City. No
property of the City, subject to such exception with respect to
the Pledged Revenues , pledged for the payment of the Bonds ,
shall be liable to be forfeited to taken in payment of the Bonds.
C. Statute of Limitations . No action or suit based upon
any Bond or other obligation of the City shall be commenced
after it is barred by any statute of limitations pertaining
thereto. Any trust or fiduciary relationship between the City
and the Owner of any Bond or the obligee regarding any such
obligation shall be conclusively presumed to have been
repudiated on the maturity date or other due date thereof unless
the Bond is presented for payment or demand for payment of such
other obligation is otherwise made before the expiration of the
applicable limitation period. Any moneys from whatever source
derived remaining in any fund or account reserved, pledged or
otherwise held for the payment of any such obligation , action or
suit , the collection of which has been barred , shall revert to
the Sales and Use Tax Fund, unless the City Council shall
otherwise provide by ordinance. Nothing herein prevents the
payment of any such Bond or other obligation after an action or
suit for its collection has been barred if the City Council
deems it in the best interests of the City or the public so to
do and orders such payment to be made.
D. Delegated Duties. The officers of the City are hereby
authorized and directed to enter into such agreements and take
all action necessary or appropriate to effectuate the provisions
of this Ordinance and to comply with the requirements of law,
including , without limitation :
(1) Printing of Bonds. The printing of the Bonds ,
including the printing upon each such Bond of a copy of the
approving legal opinion of Ballard , Spahr , Andrews & Ingersoll ,
bond counsel , duly certified by the City Clerk , and, if
necessary or desirable pending delivery of printed Bonds , the
preparation of one or more temporary typewritten Bonds in an
aggregate principal amount equal to that of the Bonds , otherwise
in substantially the same form and bearing the same terms , to be
delivered to the Purchaser and thereafter to be exchanged by the
Purchaser for printed Bonds when the same are received by the
City;
(2) Execution , Registration and Delivery of Bonds .
The execution and registration of the Bonds and the delivery of
the Bonds to the Purchaser pursuant to the provisions of this
Ordinance;
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(3) Information. The assembly and dissemination of
financial and other information concerning the City and the
Bonds ;
(4) Official Statement. The preparation of a final
official statement for the use of prospective buyers of the
Bonds , including , without limitation, the Purchaser and its
associates , if any; and
(5) Closing Certificates . The execution of such
certificates as may be reasonably required by the Purchaser,
relating , inter alia , to :
(a) The signing of the Bonds ;
(b) The tenure and identity of the officials of the
City;
(c) If in accordance with fact , the absence of
litigation , pending or threatened , affecting the validity of the
Bonds ;
(d) The exemption of interest on the Bonds from
federal and State income taxation ;
(e) The delivery of the Bonds and the receipt of the
Bond purchase price ;
(f) The accuracy and adequacy of information provided
in the preliminary official statement and official statement
prepared for prospective buyers of the Bonds .
E. Successors . whenever herein the City is named or is
referred to , such provision shall be deemed to include any
successors of the City, whether so expressed or not. All of the
covenants , stipulations , obligations and agreements by or on
behalf of and other provisions for the benefit of the City
contained herein shall bind and inure to the benefit of any
officer , board , district , commission, authority, agency,
instrumentality or other Person or Persons to whom or to which
there shall be transferred by or in accordance with law any
right , power or duty of the City or of its respective
successors , if any, the possession of which is necessary or
appropriate in order to comply with any such covenants ,
stipulations , obligations , agreements or other provisions hereof.
F. Rights and Immunities. Except as herein otherwise
expressly provided, nothing herein expressed or implied is
intended or shall be construed to confer upon or to give to any
Person , other than the City, and the Owners from time to time of
the Bonds , any right , remedy or claim under or by reason hereof
or any covenant , condition or stipulation hereof. All the
covenants , stipulations , promises and agreements herein
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contained by and on behalf of the City shall be for the sole and
exclusive benefit of the City, and any Owner of any of the Bonds.
No recourse shall be had for the payment of the Debt Service
Requirements of the Bonds or for any claim based thereon or
otherwise upon this Ordinance authorizing their issuance or any
other ordinance or instrument pertaining thereto , against any
individual member of the City Council, or any officer or other
agent of the City, past , present or future , either directly or
indirectly through the City, or otherwise , whether by virtue of
any constitution, statute or rule of law or by the enforcement
of any penalty or otherwise , all such liability, if any, being
by the acceptance of the Bonds and as a part of the
consideration of their issuance specially waived and released.
G. Ratification. All action not inconsistent with the
provisions of this Ordinance heretofore taken by the City or its
officers , and otherwise by the City directed:
(1) Project. Toward the Project , and
(2) Bonds. Toward the sale and delivery of the Bonds
for that purpose , be , and the same hereby is , ratified , approved
and confirmed.
H. Facsimile Signatures . Pursuant to the uniform
Facsimile Signature of Public Officials Act , part 1 of
article 55 of title 11 , Colorado Revised Statutes , as amended ,
the Mayor and the City Clerk shall forthwith , and in any event
prior to the time the Bonds are delivered to the Purchaser , file
with the Colorado Secretary of State their manual signatures
certified by them under oath.
I . Ordinance Irrepealable. This Ordinance is , and shall
constitute, a legislative measure of the City and after any of
the Bonds are issued, this Ordinance shall constitute an
irrevocable contract between the City and the Owner or Owners of
the Bonds ; and this Ordinance , subject to the provisions of
Sections 9 and 11 hereof, if any Bonds are in fact issued, shall
be and shall remain irrepealable until the Bonds , as to all Debt
Service Requirements , shall be fully paid , cancelled and
discharged, as herein provided .
J. Repealer . All ordinances , resolutions , bylaws , orders ,
and other instruments , or parts thereof , inconsistent herewith
are hereby repealed to the extent only of such inconsistency.
This repealer shall not be construed to revive any ordinance,
resolution , bylaw, order , or other instrument , or part thereof ,
heretofore repealed.
K. Severability. If any section, subsection, paragraph ,
clause or other provision of this Ordinance shall for any reason
be held to be invalid or unenforceable, the invalidity or
-47-
unenforceability thereof shall not affect any of the remaining
sections , subsections , paragraphs , clauses or provisions of this
Ordinance.
INTRODUCED, READ, APPROVED ON FIRST READING , AND ORDERED
PUBLISHED ONCE IN FULL THIS 30th day of October , 1984.
CITY OF FORT COLLINS , COLORADO
By:
(CITY) ao r
(SEAL)
ATTEST:
LFuy`Uus' ` 1_l�,
City Clerk
The foregoing Ordinance will be presented for final passage
9 9
at the City Council ' s regular meeting , to be held at Council
Chambers , City Hall , 300 LaPorte Avenue , Fort Collins , Colorado,
on Tuesday, the 20th day of November , 1984 , at 5 : 30 p.m.
-48-
READ, FINALLY PASSED ON SECOND READING, AND ORDERED
PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 20th day of
November , 1984 .
CITY OF FORT COLLINS , COLORADO
By:
(CITY) Mayor
(SEAL) 61
ATTEST:
ILu .
City Cle
rk
erk
-49-
Council Member Stoner moved that the foregoing
Ordinance heretofore introduced and read by title be approved on
first reading . Council Member Elliott seconded the motion.
The question being upon the approval on first reading of the
Ordinance , the roll was called with the following results :
Council Members voting "AYE" : Gerald C. Horak
E. John Clarke
William Elliott
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
Council Members voting "NAY" : None
The Mayor thereupon declared that , a majority of the Council
Members present having voted in favor thereof , the motion was
carried and the Ordinance duly approved on first reading .
Thereupon the Mayor ordered said Ordinance published once in
full together with a n giving notice ivin the date when said
Ordinance
will be presented for final passage in The Coloradoan, a
newspaper of general circulation published in the City , at least
seven ( 7) days before presentation for final passage.
After consideration of other business to come before the
Council , the meeting was adjourned.
Mayor
(CITY) City Fort Collins , Colorado
(SEAL)
ATTEST:
i City Clerk
City of Fort Collins , Colorado
-50-
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins , Colorado , held a
regular meeting at Council Chambers , City Hall , 300 LaPorte
Avenue , Fort Collins , Colorado , on Tuesday, the 20th day of
November , 1984 , at the hour of 5 : 30 p.m.
The following persons were present :
Council Members : Gerald C. Horak , Mayor
E. John Clarke, Assistant Mayor
3WQXI)®'Iffi1i AXIgU(fl(9S
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
City Manager : John E. Arnold
City Clerk : Wanda M. Krajicek
The following persons were absent :
William F11iott. Councilmember
The Mayor informed the Council that Ordinance No. 157, 1984 ,
which was introduced , approved on first reading , and ordered
published once in full at the continuation of the Council ' s
adjourned regular meeting of October 16, 1984 , held on
October 30 , 1984, was duly published in The Coloradoan , a
newspaper of general circulation published in the City, in its
issue of November 4 , 1984.
Council Member Knezovich then read said Ordinance by
its title.
Thereupon , Council Member Knezovich moved the final
passage of Ordinance No. 157, 1984 . Council Member Ohlson
seconded the motion, and the question being upon the'final
passage of said Ordinance, the roll was called with the
following result :
Council Members voting "AYE" : Gerald C. Horak
E. John Clarke
X�il4X4(X�`(Xdf X g�YoKrX�
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
-51-
• Council Members voting "NAY" : None
The Mayor thereupon declared that a majority of the Council
Members present having voted in favor thereof , the motion was
carried and the Ordinance finally passed.
Thereupon the Mayor ordered said Ordinance published by
number and title only together with a notice of the final
passage of the Ordinance in The Coloradoan , a newspaper of
general circulation published in the City, within five (5) days
after said final passage.
After consideration of other business to come before the
Council the meeting was adjourned.
-"&� &:a
Mayor
City of Fort Collins , Colorado
(CITY)
(SEAL)
ATTEST:
City Clerk
City of Fort Collins , Colorado
-52-
' STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
I , Wanda M . Krajicek , City Clerk of the City of Fort
Collins , Colorado , do hereby certify that the attached copy of
Ordinance No. 157, 1984, is a true and correct copy; that said
Ordinance was introduced and approved on' first reading by the
Council of the City of Fort Collins , Colorado , at the
continuation of its adjourned regular meeting of October 16,
1984, held at Council Chambers , City Hall, 300 LaPorte Avenue ,
Fort Collins , Colorado, the regular meeting place thereof, on
Tuesday, the 30th day of October , 1984 ; that said Ordinance was
finally passed on second reading by said Council at its regular
meeting , held at Council Chambers , City Hall , 300 LaPorte
Avenue , Fort Collins , Colorado , the regular meeting place
thereof , on Tuesday, the 20th day of November , 1984 ; that a true
copy of said Ordinance has been authenticated by the signatures
of the Mayor of said City and myself as City Clerk thereof ,
sealed with the seal of the City, and numbered and recorded in a
book marked "Ordinance Record" kept for that purpose in my
office ; and that said Ordinance was duly published once in full
together with a notice giving the date when said Ordinance would
be presented for final passage and once by number and title only
together with a notice of the final passage thereof in The
Coloradoan, a newspaper of general circulation published in the
City, in its issues of November 4 , 1984, and November 26 , 1984,
as evidenced by the certificates of the publisher attached
hereto at pages 54 and 55. I further certify that the foregoing
pages 1 through 52 , inclusive, constitute a true and correct
copy of the record of the proceedings of said Council at its
aforesaid meetings , insofar as said proceedings relate to said
Ordinance ; that said proceedings were duly had and taken , that
the meetings were duly held ; and that the persons were present
at said meetings as therein shown.
IN WITNESS WHEREOF, I have hereunto set my hand and the seal
of the City of Fort Collins , Colorado , this day of November ,
1984.
�7t1� c�� cf�i-n
(CITY) City Clerk p
(SEAL) City of Fort Collins, Colorado
-53-
3 � �
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
(Attach affidavit of publication in full of Ordinance and
notice giving date when Ordinance to be presented for final
passage. )
-54-
The Coloradoan _
STATE OF COLORADO )
)ss. AFFIDAVIT OF PUBLICATION
COUNTY OF LARIMER )
T e r e s e R. Anderson being first duly sworn upon oath, deposes
and says: That said is the Legal Clerk of The Coloradoan;
that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan
is a public daily newspaper of general circulation, having its principal office and place of
business situated in said County of Larimer; that said Coloradoan is printed and published
1 daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth
within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado
Revised Statutes 1973, anh any amendment thereof passed prior to the date hereof; that
said newspaper had, prior to January 1, 1936, and has ever since said date been admitted to
the United States Mails as second class matter under the provisions of the Act of March 3,
1874, and any amendments thereof, that said newspaper is printed in whole in said County
of Larimer and has a general circulation therein; that said newspaper has been so printed
and published as a public daily newspaper of general circulation in said County of Lar-
imer, uninterruptedly and continuously, during the period of more than fifty-two consecu-
tive weeks next prior to the first issue thereof containing the annexed legal notice of
advertisement; that said annexed legal notice or advertisement was published in the
regular and entire editions of said newspaper for
_ 1 successive weelfs-err day a€eaolrsueeessi-ve-week; that the
first publication of said legal notice or advertisement was in the regular and entire edition
of said newspaper on the 4th day of November , A.D. 19 84; that the last
publication of said legal notice or advertisement was in the regular and entire edition of
said newspaper on the 4th day of November , A.D. 1984, and that
copies of each number of said paper in which said notice or advertisement was published
were delivered by carriers or transmitted by mail to each of the subscribers of said paper,
according to the accustomed mode of business in this office.
A-01
Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado
this day of A.D. 19_ A#Th y AlnvnmNnr _84._
rliy Co m,':ission L>xp res ,, ^;1st 15, 1987
111 i erside, Fo oI ios, C0 89524
My commission expires
Notary Public
City Clerk
Delivered to _ —
STATE OF COLORADO )
)
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
(Attach affidavit of publication of Ordinance by number and
title only and notice of final passage thereof. )
-55-
i
The Coloradoan
STATE OF COLORADO -
NOTICE IS HEREBY GIVEN'
)ss. AFFIDAVIT OF PUBLICATION ICat l he Fort Collins City C9UnCiI,
Tile) o " Y. Noe bef 90, 984,
COUNTY OF LARIMER nSadntdTneny,n9ootonces on second reading
ORDINANCE NO. 150, 1984 OF
Terese R . Anderson being first duly sworn upon oath, deposes T HE COUNCI L OF THE CITY OF
FORT COLLINS VACATING ALL,
and says: That said is the i Qga._I—C_L e_r.k of The Coloradoan; EASEMENTS AND RIGHTS OF
that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan vRVNG CREEIK,SECOND FO N
is a public daily newspaper of general circulation, having its principal office and place of ING
ORDINANCE NO. 151. 198a OF
business situated in said County of Larimer; that said Coloradoan is printed and published THE COUNCILOF THE CITY OF
FORT COLLINS, AMENDING,
daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth SECTIONS 231AND2 35OF THE.
CODE OF THE CITY OF FORT'
within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado FFlLLINS SELATI PENSON FOUNDE.
Revised Statutes 1973, and any amendment thereof passed prior to the date hereof; that ORDINANCE NO. 153, 198A OF
said newspaper had, prior to January 1, 1936, and has ever since said date been admitted to THE OQNCiL F THE CITY OF
FORT AN.
the United States Mails as second class matter under the provisions of the Act of March 3, ORDINANCE
RDIAN P OeNG
UNANTICIPATED APPROPRIATING
1879, and anv amendments thereof, that said newspaper is printed in whole in said County FROM
A NEW REVENUE
of Larimer and has a general circulation therein; that said newspaper has been so printed ORDINANCE NO. 15a, 1984 OF
and published as a public daily newspaper of general circulation in said County Of Lar- THE COUNCIL OF THE CITY OF
FORT COLLINS AUTHORIZING
met, uninterruptedly and continuously, during the period of more than fifty-two consecu- ENTER iNTON MANAGER AMENDMENOT
live weeks next prior to the first issue thereof containing the annexed legal notice of TO THE LEASE WITH MERIT FINANCIAL
DR
advertisement; that said annexed legal notice or advertisement was published in the PURCHIASEON FOR OF TA HE
P CKUP
regular and entire editions of said newspaper for TRUCK WITH CREW CAB FOR
SURVEYORS
ORDINANCE NO. 156, 1984 OF
THE COUNCIL OF THE CITY OF
FORT COLLINS APPROPRIAT
ING PRIOR YEAR RESERVES
IN THE CAPITAL PROJECTS
FUND AND AUTHORIZING THE
successive OLPA 'lkX day dlfxevAKx:>34LIc�'A9i**KNYe fx that the TONS TRANSFER BETWEENPC CARIA
PITAL
first publication of said le a not cc or advertl'Sement was in the regular and entire edition PROJECTS
of said newspaper on the g �6ttt day of November A.D. 19 84; that the last ANO ORINANCE DNANCE O. 157,1984
AUTHORIZ
ING THE ISSUANCE OF CITY
publication of said legal notice or advertisement was in the regular and entire edition of OF FORT COLLINS, COLD
RADO, SALES AND USE TAX
said newspaper on the 96th day Of No_yember A.D. 198¢_, and that REVENUE BONDS, DATED
copies of each number of said paper in which said notice or advertisement was published NNAGGREGATEOVEMBER 1, 1984, IN THE
were delivered by carriers or transmitted by mail to each of the subscribers of said paper, THE AMOUNT PURPOSEIO FDDEFRA V
ING. IN WHOLE OR IN PART,
according to the accustomed mode of business in this office. THE COST OF ACQUIRING,
A-90 NGSTREETS CONSTRUCTING
AND HIGHWAYS
FOR THE CITY AND OF PAY-
ING THE PRINCIPAL OF,
INTEREST ON.AND ANY COM
MITMENT FEE DUE IN CONWITH THE
-
_ BONDIOANTICIPATON NIOTE,
T� SERIES FEBRUARY 1, 1983,
DATED FEBRUARY 1, 1983, IN
THE PRINCIPAL AMOUNT OF
NOT MORE THAN S25,000.000.
ORDINANCE NO. 158,1984
AN ORDINANCE AUTHORIZ
Subscribed and sworn to before me, at and within the County of Larimer. State of Colorado OF IN THE FORTISSUANCE
DANCES,OF
cCIT
November , A.D. 19_84_. RADO, SEWER REVENUE
OLO
this __ 26th day Of (� — ] BONDS, SERIES 1984, DATEC
IN THE
'YI�y C✓��i:i:is;�n L:r'.f�s ,''-�'�=' 1J, 1 "J• AGGRENOVEMBGATER E 1PRINCIPAL
AMOUNT OF 111,1Xq,000.
My commission expires
12 Riverside, t
Notary PubjiLIl
Delivered to City CIerk _ _ "'r r-j"
•' • ORDINANCE NO. 157, 1984
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY
OF FORT COLLINS , COLORADO , SALES AND USE TAX
REVENUE BONDS , DATED NOVEMBER 1 , 1984, IN THE
AGGREGATE PRINCIPAL AMOUNT OF $11, 750, 000 , FOR
THE PURPOSE OF DEFRAYING , IN WHOLE OR IN PART,
THE COST OF ACQUIRING, CONSTRUCTING AND
IMPROVING STREETS AND HIGHWAYS FOR THE CITY AND
OF PAYING THE PRINCIPAL OF, INTEREST ON, AND
ANY COMMITMENT FEE DUE IN CONNECTION WITH THE
CITY' S BOND ANTICIPATION NOTE , SERIES
FEBRUARY 1, 1983, DATED FEBRUARY 1 , 1983, IN
THE PRINCIPAL AMOUNT OF NOT MORE THAN
$25, 000 , 000.
READ , ADOPTED ON SECOND READING , AND ORDERED PUBLISHED ONCE
BY NUMBER AND TITLE ONLY this 20th day November ,
of e er , 1984 .
CITY OF FORT COLLINS , COLORADO
04
(CITY) Mayor
(SEAL)
ATTEST:
�
IOL4 u� _
City Clerk
-56-