HomeMy WebLinkAbout137 - 11/23/1982 - AUTHORIZING THE ISSUANCE OF SALES AND USE TAX REVENUE BONDS, DATED DECEMBER 1, 1982, IN THE AGGREGAT ORDINANCE NO. 137, 1982
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS , COLORADO, SALES AND USE TAX REVENUE BONDS,
DATED DECEMBER 1, 1982, IN THE AGGREGATE PRINCIPAL
AMOUNT OF $1,215,000, FOR THE PURPOSE OF DEFRAYING, IN
WHOLE OR IN PART, THE COST OF ACQUIRING, CONSTRUCTING
AND INSTALLING LAND AND PARKING IMPROVEMENTS WITHIN
THE CITY.
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
(1) Additional Parity 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 Bonas 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
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(3) Bonds those securities issued hereunder and
designated as the "City of Fort Collins, Colorado, Sales
and Use Tax Revenue Bonds, " dated December 1, 1982, in the
aggregate principal amount of $1,215, 000
(4) 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.
(5) Capital Projects Fund the fund created by
Ordinance No 28, 1980, and referred to in Section 5A
hereof
(6) Charter the Home Rule Charter of the City, as
amended
(7) City the City of Fort Collins, Colorado
(8) City Clerk the de jure or de facto City Clerk
of the City or his or her successor in functions, if any
(9) City Council the Council of the City or any
successor in functions thereto
(10) Combined Average Annual Debt Service
Requirements the sum of the Average Annual Debt Service
Requirements for all issues of Parity Securities for which
the computation is being made
(11) 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
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includes, without limitation, any Trust Bank, as herein
defined
(12) 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 ,
1983 , the Comparable Bond Year for the Bonds commences on
December 1, 1982, and ends on November 30, 1983
(13) 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
(14) Coupons or coupons those obligations evidencing
interest on and pertaining to the Bonds and any other
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e
securities payable from the Pledged Revenues, or such part
of such securities as may be designated
(15) 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
(16) Event of Default each of the events stated in
Section 10A hereof
(17) 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.
(18) 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
(19) General Fund the General Fund of the City
(20) Holder when used in con3unction with any
coupons, any Bonds, or any other designated securities, the
Person in possession and the apparent owner of the
designated item
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(21) 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
(22) Mayor the de jure or de facto Mayor of the City
or his or her successor in functions, if any
(23) 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) .
(24) 1980 Bonds the City of Fort Collins, Colorado,
Sales and Use Tax Revenue Bonds , dated May 1, 1980, in the
original principal amount of $1, 035, 000.
(25) 1981 Bonds the City of Fort Collins, Colorado,
Sales and Use Tax Revenue Bonds, dated August 1, 1981, in
the original principal amount of $5,700 ,000.
(26) 1982 Bonds the City of Fort Collins, Colorado,
Sales and Use Tax Revenue Bonds , dated October 1, 1982, in
the original principal amount of $3,360, 000
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(27) Ordinance this Ordinance No. 137, 1982, of the
City, which provides for the issuance and delivery of the
Bonds
(28) Ordinance No 47 Ordinance No. 47, 1980, of the
City, which authorized the issuance of the 1980 Bonds.
(29) Ordinance No 58 Ordinance No 58, 1967, of the
City which provides for the imposition of the initial one
percent (1%) Sales and Use Tax within the City
(30) Ordinance No. 87 Ordinance No 87, 1981, of the
City, which authorized the issuance of the 1981 Bonds
(31) Ordinance No 89 Ordinance No. 89, 1982, of the
City, which authorizes the issuance of the 1982 Bonds
(32) Ordinance No. 113 Ordinance No 113, 1982, of
the City, which provides for the imposition of the
additional seventy-five hundreds percent ( 75%) Sales and
Use Tax within the City
(33) Ordinance No 140 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
(34) Ordinance No 149 Ordinance No 149, 1981, of
the City, which provides for the imposition of the
additional one-quarter percent ( 25%) Sales and Use Tax
within the City
(35) Outstanding or outstanding when used with
reference to the Bonds , the Additional Parity Bonds, Parity
Securities or any other designated securities of the City
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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 ProDect,
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 oefore 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
(d) Any lost, apparently destroyed, or
wrongfully taken Bond, Additional Parity Bond or
Parity Security or other security of the City in lieu
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of or in substitution for which another bond or other
security shall have been executed and delivered
pursuant to this Ordinance
(36) 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.
(37) Paying Agent First Interstate Bank of Fort
Collins, N.A. , Fort Collins, Colorado, which is the agent
of the City for the payment of the Bonds
(38) 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
(39) 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
(40) Pledged Sales and Use Tax Revenues the Net
Revenue collected by the City from the Sales and Use Tax
(41) Principal and Interest Account the special fund
created by Ordinance No 87 and referred to in Section 5C
hereof.
(42) Project the acquisition, construction and
installation of land and parking improvements within the
City, for which purpose the Bonds are issued hereunder,
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whether such acquisition, construction and installation are
undertaken at one time or in stages
(43) Purchaser Boettcher & Company, of Denver,
Colorado, and its associates, if any
(44) 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
(45) 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
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
(46) Reserve for Sales and Use Tax Revenue and
Interest the Reserve for Sales and Use Tax Revenue Bonds
and Interest established pursuant to the provisions of
Ordinance No 47
(47) Reserve Account the special fund created by
Ordinance No 87 and referred to in Section 5D hereof.
(48) Sales and Use Tax the sales and use tax
establishea by Ordinance No 58, Ordinance No 113,
Ordinance No. 140, and Ordinance No 149 upon sales and
purchases of tangible personal property at retail and
storage, use, distribution and consumption of tangible
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personal property purchased or acquired at retail, within
the City, in such percentages as set forth in Ordinance
No. 58, Ordinance No 113 , Ordinance No. 140 , and Ordinance
No 149 or any supplements or amendments thereof.
(49) Sales and Use Tax Fund the special fund created
by Ordinance No. 87 and referred to in Section 5B hereof
(50) 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.
(51) State the State of Colorado
(52) 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
(53) 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.
(54) 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 numberea or otherwise so designated
(4) The titles and headlines applied to articles,
sections ana 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 install land and parking improvements
within the City, including the Pro]ect
B. Authority For Bonds Tne City is authorized by the
Coloraao 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 December 1, 1982, in the
aggregate principal amount of $1,215, 000, payable as to all
Debt Service Requirements solely out of Pledged Revenues are
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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
B Bond Details
(1) Generally. The Bonds shall be issued payable to
bearer , and dated as of December 1 , 1982, consisting of 243
Bonds in the denomination of $5, 000 each, numbered
consecutively in regular numerical order from 1 through 243
The Bonds shall bear one set of interest coupons
evidencing interest thereon from December 1, 1982, to their
respective maturity dates, except if redeemed prior thereto, at
the per annum coupon interest rates stated below. The coupon
interest shall be payable June 1, 1983, and semiannually
thereafter on the 1st day of December and the 1st day of June
of each year.
The Bonds shall be numbered, shall mature on the 1st
day of December in the principal amounts and years , and shall
bear per annum coupon interest at the rates as shown in the
following schedule
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Bond Numbers Principal Per Annum Coupon
(both inclusive) Amounts Years Interest Rates
1 to 16 $ 80,000 1983 10 00%
17 to 32 80,000 1984 10.00%
33 to 48 80,000 1985 10 00%
49 to 64 80,000 1986 10 00%
65 to 80 80,000 1987 10 00%
81 to 96 80,000 1988 9 75%
97 to 112 80 ,000 1989 9 25%
113 to 128 80,000 1990 8 75%
129 to 144 80,000 1991 9 00%
145 to 160 80, 000 1992 9.20%
161 to 176 80,000 1993 9.40%
177 to 192 80,000 1994 9.60%
193 to 209 85,000 1995 9 80%
210 to 226 85, 000 1996 10 00%
227 to 243 85,000 1997 10 00%
The Debt Service Requirements of the Bonds are payable in
lawful money of the United States of America, without deduction
for exchange or collection charges, upon presentation and
surrender of the Bonds and the interest coupons as they
severally become due, at the office of the Paying Agent
If upon presentation at maturity payment of any Bond
is not made as herein provided, interest shall continue thereon
at the coupon interest rate specified in the Bond until the
principal thereof is paid in full.
(2) Redemption of Bonds Prior to Maturity.
(a) Bonds maturing in the years 1983 through 1994 are
not redeemable prior to their respective maturity dates
Bonds of this issue maturing in the year 1995 and
thereafter are redeemable prior to their respective
maturity dates, at the option of the City, in inverse
numerical order, on December 1, 1994 , and on any interest
payment date thereafter, at a redemption price equal to
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100% of the principal amount thereof plus accrued interest
thereon to the Redemption Date
(b) Notice of any redemption shall be given by the
City Clerk in the name of the City
(i) Publication. By publication of such notice at
least one (1) time by one (1) publication, such publication
being not less than thirty (30) days prior to the
Reaemption Date specified in such notice in The Coloradoan,
Fort Collins, Colorado, if then in business and publishing ,
and if not, then in a newspaper of general circulation
published in the City, and in The Bond Buyer, New York, New
York, if then in business and publishing, and if not, then
in a similar financial newspaper published in New York, New
York, and
(ii) Mail By sending 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
the Holder of each of the Bonds being redeemed, if the
names and addresses of the Holders and the numbers of their
Bonds are recorded with the City Clerk. For this purpose ,
the Holder of any such Bond may at any time furnish his
name and address and the number or numbers of his Bond or
Bonds to the City Clerk
Such notice shall specify the number or numbers of the
Bonds to be redeemed and the date fixed for redemption and
shall further state that on the Redemption Date there will
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become and will be due and payable upon each Bond to be
redeemed at the office of the Paying Agent the principal
amount thereof, accrued interest on the principal amount of
each Bond to the Redemption Date, and any premiums payable
on prior redemption, and that from and after such date
interest will cease to accrue Any Bonds redeemed prior to
their maturity 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) Negotiable Instruments. Title to any Bond or to
any coupon shall pass by delivery merely, as a negotiable
instrument payable to bearer Sub3ect to the provisions
expressly made or necessarily implied herein, the Bonds and
the coupons pertaining thereto shall be fully negotiable
and shall have all the qualities of negotiable paper within
the meaning and for all the purposes of investment
securities under the provisions of part 1 of article 8 of
title 4 , Colorado Revised Statutes 1973, as amended, the
Uniform Commercial Code--Investment Securities, and each
Holder of any Bond, by accepting the same, shall be
conclusively deemed to have agreed that the Bonds, except
as otherwise provided, are and shall be fully negotiable
within the meaning and for all purposes of investment
securities pursuant to said statute.
(4) Interest Rates. The maximum net effective
interest rate specified for the Bonds of this issue is 15%
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per annum. The actual net effective interest rate for the
Bonds of this issue is 9 6093% per annum.
(5) Execution and Delivery The Bonds shall be
signed 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 signed and attested with the
facsimile signature of the City Clerk, and shall be
countersigned with the manual signature of the City Finance
Director , and each of the Bonds shall have attached thereto
coupons bearing the facsimile signature of the Mayor,
securing the payment of the interest accruing thereon as it
falls due Should any officer whose manual or facsimile
signature appears on the Bonds or the coupons thereto
attached 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
The Mayor and the City Clerk are hereby authorized and
directed to prepare and to execute the Bonds as herein
provided When the Bonds have been duly executed, the
officers of the City are authorized to, and shall, deliver
the Bonds to the Purchaser on receipt of the agreed
purchase price.
(6) Lost, Destroyed or Taken Bonds. If any
Outstanding Bond or coupon shall become lost, apparently
destroyed, or wrongfully taken, it may be reissued in the
form and tenor of the lost, destroyed or taken Bond or
coupon, upon request therefor by the owner prior to receipt
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by the City of notice that such Outstanding Bond or coupon
has been acquired by a bona fide purchaser, and upon the
owner ' s furnishing , to the satisfaction of the City
Council (a) proof of ownership, (b) proof of loss or
destruction, (c) a surety bond in twice the amount of the
securities in question, including any unmatured coupons
appertaining thereto, and (d) payment of the cost of
preparing and issuing the new security Nothing contained
in the provisions of this paragraph ( 6) prohibits the City
from reissuing, upon such terms and conditions as the City
Council may determine, and provided that such terms and
conaitions are not otherwise contrary to the provisions of
this Ordinance or the requirements of law, any Outstanding
Bond or coupon which shall not have become lost, apparently
destroyed, or wrongfully taken
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(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 and Coupons Subject to the
provisions of this Ordinance , each Bond, and the coupons to
be attached thereto, shall be in substantially the
following form, with such omissions, insertions,
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endorsements , and variations as to recitals of fact or
other provisions as may be required by the circumstances
and as may oe required or permitted by this Ordinance , and
as may be necessary or appropriate to conform to the rules
and requirements of any governmental authority or to any
usage or requirement of law with respect thereto
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(Form of Bond)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
SALES AND USE TAX REVENUE BOND
No $5, 000
The City of Fort Collins, in the County of Larimer, and
State of Coloraao (the City) , for value received , hereby
promises to pay to the bearer hereof, solely from the special
funds provided therefor , as hereinafter set forth, on the 1st
day of December, 19_, the principal sum of
FIVE THOUSAND DOLLARS
and to pay solely from said special funds interest hereon as
evidenced by interest coupons hereto attached, at the rate
of and hundredths per
centum (_ _8) per annum from December 1, 1982, to the
maturity date of this Bond, except if redeemed prior thereto,
payable June 1, 1983, and semiannually thereafter on the lst
day of December and the 1st day of June of each year, upon
presentation ana surrender of this Bond and said coupons as
they severally become due If upon presentation at maturity
payment of this Bond is not made as herein provided, interest
shall continue hereon at the coupon interest rate specified
herein until the principal hereof is paid in full.
The principal of and interest on this Bond (the Debt
Service Requirements) are payable in lawful money of the United
States of America , without deduction for exchange or collection
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charges, out of the special funds hereinafter specified, but
not otherwise, at First Interstate Bank of Fort Collins, N A ,
in Fort Collins, Colorado (the Paying Agent) , upon presentation
and surrender of said coupons and this Bond as they severally
become due
Bonds of this issue maturing in the years 1983 through 1994
are not redeemable prior to their respective maturity dates.
Bonds of this issue maturing in the year 1995 and thereafter
are redeemable at the option of the City, in inverse numerical
oraer , on December 1, 1994, and on any interest payment date
thereafter , at a redemption price equal to 100% of the
principal amount thereof plus accrued interest to the
Redemption Date
Redemption shall be made upon not less than thirty (30)
days ' prior notice by publication of such notice at least one
(1) time by one (1) publication, such publication being not
less than thirty (30) days prior to the Redemption Date
specified in such notice, in The Coloradoan, Fort Collins,
Colorado, if then in business and publishing , and if not, then
in a newspaper of general circulation publishea in the City,
and in The Bond Buyer , New York , New York , if then in business
and publishing , and if not, then in a similar financial
newspaper published in New York , New York , and by sending a
copy of such notice by certified or registered first-class
postage prepaid mail, at least thirty (30) days prior to the
Redemption Date specified in such notice to the holders of each
of the Bonds being redeemed, if the names and addresses of the
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holders and the numbers of their Bonds are recorded with the
City Clerk For this purpose, the holder of any such Bond may
at any time furnish his name and address and the number or
numbers of his Bond or Bonds to the City Clerk If this Bond
shall have been duly called for redemption and if on or before
the Redemption Date there shall have been deposited with the
Paying Agent funds sufficient to pay this Bond at the
Redemption Date, then this Bond shall become due and payable
upon such Redemption Date, and interest shall cease to accrue
hereon after the Redemption Date
This Bond and the Bonds of the series of which this is one
are limited and special obligations of the City payable solely
out of and secured by an irrevocable assignment and pledge (but
not necessarily an exclusive assignment and pledge) of certain
Pledged Revenues consisting of net receipts from the City ' s
Sales and Use Tax (the Pledged Revenues) , as more specifically
provided in Ordinance No. 137, 1982 (the Ordinance) , pursuant
to which this Bond is issued This Bond and the interest
coupons appurtenant hereto 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 to pay the principal of or
interest on this Bond.
Payment of the Debt Service Requirements of this Bond shall
be made solely from, and as security for such payment there are
irrevocably (but not necessarily exclusively) pledged, pursuant
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to the Ordinance, two special funds identified as the "City of
Fort Collins, Colorado, Sales and Use Tax Revenue Bonds,
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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 the Pledged Revenues sums sufficient to
pay when due the Debt Service Requirements 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 referred to above authorizing the
issuance of this Bond , 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 the series of which this is one , sub3ect to
expressed conditions, may be issued and made payable from the
Pledged Revenues having a lien thereon subordinate and Dunior
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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 holder of this Bond
and with each and every person who may become the holder hereof
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 of 243 Bonds in the aggregate
principal amount of $1,215 ,000 , of like tenor and date , except
as to number and interest rate, issued and authorized for the
purpose of defraying , in whole or in part, the cost of
acquiring, constructing and installing land and parking
improvements within 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 ana 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 , and definitions of terms,
upon which the Bonds of the s-eries of which this is one are
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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 Debt
Service Requirements of the Bonds, the terms and conditions on
which the Bonds are issued, a description of said special funds
referred to above and the nature and extent of the security and
pledge afforded thereby for the payment of the Debt Service
Requirements, 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
remeaies of the holders 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 sub3ect
to 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 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 of the State of Colorado, the City Charter, and
all other laws of the State of Colorado, and with the Ordinance
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and any instrument supplemental thereto , that this Bond does
not contravene any constitutional 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 it 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
IN WITNESS WHEREOF, the Council of the City of Fort
Collins, Colorado, has caused this Bond to be signed 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 be countersigned with the
manual signature of the Finance Director of the City, and has
caused the attached coupons to be signed with the facsimile
signature of the Mayor of the City, all as of the 1st day of
December , 1982
CITY OF FORT COLLINS, COLORADO
By (Facsimile Signature)
Mayor
(FACSIMILE)
( SEAL )
Attest
(Facsimile Signature)
City Clerk
Countersigned
By (Manual Signature)
Finance Director
(End of Form of Bond)
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(Form of Interest Coupon)
Coupon
No.
June,
On the first day of December, 19_, unless the Bond to
which this coupon is attached, if redeemable, has been called
for prior redemption, the City of Fort Collins, in the County
of Larimer and State of Colorado, will upon surrender of this
coupon pay to bearer the amount shown hereon in lawful money of
the United States of America, without deduction for exchange or
collection charges, at First Interstate Bank of Fort Collins,
N.A. , Fort Collins, Colorado, solely from and secured by a
pledge of two special funds, created from the Pledged Revenues
derived from the sources set forth in the Bond to which this
coupon pertains, being the interest then due on its City of
Fort Collins, Colorado, Sales and Use Tax Revenue Bond, dated
December 1, 1982, bearing
Bond No.
By (Facsimile Signature)
Mayor
City of Fort Collins, Colorado
(End of Form of Interest Coupon)
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C. Bonds Equally 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 Holders
of any and all of the Bonds and the coupons pertaining thereto,
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 or coupons 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 Holder or Holders
of any of the Bonds or coupons 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 and coupons 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 or their coupons.
Section 4. Sale of Bonds
A Purchaser ' s Proposal The City Council has heretofore
received from the Purchaser a proposal for the purchase of the
Bonds upon terms favorable to the City
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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 proposal 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 Holder 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 a lien thereon and pledge thereof for the benefit of
the Holders 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
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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 witharawn only as provided in this Section 5A
The proceecs 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
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paying the Cost of the Project and are hereby pledged
therefor Any surplus proceeds of the Bonds remaining in the
Capital Projects Fund after completion of the Project 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 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 Holders of the Bonds and any interest
coupons pertaining thereto to so set aside and credit the
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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 5D,
(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
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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, 1982,
the following amounts
(1) Interest Payments. To the Principal and Interest
Account one-sixth (1/6) 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
Bonas) 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.
(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
Such interest and principal shall be promptly paid 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
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Securities (except the 1980 Bonds) then Outstanding, as such
Debt Service Requirements become due, except as otherwise
provided in this Ordinance.
D Reserve 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, Reserve Account, " forthwith upon receipt of the proceeds
of the Bonds, the sum of $158,000 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
proviaed 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, 1983, and on the
same date in each of the years 1984 through 1987, inclusive.
No payment need be made into the Reserve Account so long as the
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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 creditea to the Sales and Use Tax Fund
thereafter received and not required to be otherwise applied by
Section 5C hereof.
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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
I
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
paying the Debt Service Requirements) , in which case moneys in
the Principal and Interest Account and the Reserve Account in
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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 Payment of Additional Subordinate Securities
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
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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
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,
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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
-40-
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 ooligations purchased as such an investment shall
either be suoject 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 expectea need for moneys from the fund or account in
question Securities or ooligations 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 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
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manner as other moneys in the Principal and Interest Account
Anj 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 BO hereof
C No Liability for Losses Incurred in Performing Terms
of Ordinance. Neither the City nor any ofticer of the City
shall be liable or responsible for any loss resulting from any
investment or reinvestment made in accordance with this
Ordinance
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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 Payments 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 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.
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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, sub]ect 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
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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.
(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 less
any amount in the Reserve Account on the date of issuance of
the proposed Additional Parity Bonds or other additional Parity
Securities. If sales and use taxes in excess of those
authorized as of the date hereof have been established during
such Fiscal Year, the amount of such Pledged Revenues may be
-45-
ad]usted by applying the 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 issued must provide 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) Requirements of Other Ordinances. Any other or
further requirements of Ordinance No 47, Ordinance No. 87, and
Ordinance No. 89 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,
sub3ect 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
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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
F. Refunding Bonds. At any time after the Bonds, or any
part thereof, are issued 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) No Partial Refunding. The City may not refund in part
the Outstanding Bonds of this series or the Outstanding
securities of a given series of securities
(2) Protection of Unrefunded Bonds Any such refunaing
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
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authorizing the issuance of the unrefunded series of 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 series of Bonds or securities without the
consent of the Holder or Holders of such unrefunded Bonds or
securities unless either (1) the refunding obligations do not
increase for any Fiscal Year in which the unrefunded series of
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 series of securities not
refunaed 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,
sub]ect to the provisions of Section 7G hereof, and sub]ect 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 such purpose or purposes, directing the execution thereof,
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and fixing and aeterming 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
proviaing 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 be fixed by ordinance , instrument or other document of
the City Council.
Section 8. Covenants.
The City hereby particularly covenants ana agrees with the
Holders of the Bonds and coupons pertaining thereto from time
to time, and makes provisions which shall be a part of its
contract with such Holders , which covenants and provisions
shall be kept Dy 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 SA of Ordinance No 87,
Ordinance No 58, Ordinance No. 113 , Ordinance No 140, and
Ordinance No. 149, 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 Pleaged Sales and Use Tax Revenues
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(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, Ordinance No 113, Ordinance No 140,
and Ordinance No. 149 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 subDect
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
sub]ect 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
B Defense of Legality 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, Ordinance No 113, Ordinance No 140 , or Ordinance No.
149, the imposition and collection of the Sales and Use Tax, or
any of the City ' s obligations under this Ordinance or any of
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the transactions contemplated by this Ordinance, Ordinance
No 58, Ordinance No 113, Ordinance No 140, or Ordinance
No 149.
The City shall, to the extent permitted by law, defend the
validity and legality of the Sales and Use Tax and Ordinance
No 58, Ordinance No 113, Ordinance No 140, and Ordinance
No. 149 , and all amendments thereto against all claims, suits
and proceeaings 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,
Ordinance No. 113, Ordinance No 140 , and Ordinance No 149, 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 Pledgea Revenues and the Pro]ect 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.
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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 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 Holder 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
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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 re.Lating 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 terms thereof. No contract shall be entered into nor any
other action taken by which the rights of any Holder 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 coupons or 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
coupon or 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 coupons or other claims for
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interest. If the time for the payment of any such coupons or
of any other such installment of interest is extended in
contravention of the foregoing provisions, such coupon or
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 or coupons 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 dates, and in the manner specified herein and in the Bonds
and in the coupons thereto pertaining according to the true
intent and meaning hereof.
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 SE and subject to Section 9 hereof
L. Additional Securities The City shall not hereafter
issue any bonds or securities payable from Pledged Revenues
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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.
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
0. 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, unless, under any provision of law
hereafter enacted, the interest paid on the Bonds (a) shall be
excludible from the gross income of a recipient thereof for
federal income tax purposes without regard to whether or not
the Bonds are arbitrage bonds, or (b) shall be exempt from all
income taxation
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
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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 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 subDect to redemption at the option of the
holder thereof to assure such availability as so needed to meet
such schedule
Section 10 Default Provisions and Remedies of Bondholders.
A Events of Default. Each of the following events is
hereby declared to be and to constitute an Event of Default
(1) Nonpayment of Principal or Premium Payment of the
principal of any of 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,
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(2) Nonpayment of Interest. Payment of any installment of
interest is not made when the same becomes due and payable,
(3) Inca anle 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 Pro3ect, or to
all or any combination thereof, or otherwise including, without
limitation, this Ordinance , and such failure shall continue for
sixty (60) days after receipt of notice from the Holders 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 3urisdiction, with the consent
or acquiescence of the City, appointing a receiver or receivers
for the Pledged Revenues and any other moneys subDect 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
Holders 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 Holder or
Holders 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 Holder of Bonds or coupons under this Ordinance by mandamus
or by other suit, action, or special proceedings in equity or
at law, in any court of competent 3urisdiction, 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
Holder or Holders may deem most effectual to protect and to
enforce the rights aforesaid, or thereby to enDoin any act or
thing which may be unlawful or in violation of any right of any
Holder 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 Holders of the Bonds , any Parity Securities, and
the coupons then Outstanding Any receiver or operating
trustee appointed in any proceedings to protect the rights of
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such Holaers 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
Holder 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 outy, obligation or other commitment Each right
or privilege of any such Holder (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
Holder shall not be deemed a waiver of any other right or
privilege thereof. Each Holder 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
permittea 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 Holder 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 Holder thereof at the time and
the place expressea in such Bond and in the appurtenant coupons.
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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 aadition, will do and perform all proper acts on
behalf of and for the Holders of the Outstanding Bonds and
coupons pertaining thereto to protect and to preserve the
security created for the payment of their Bonds and coupons 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 or coupons , 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 securit.Les
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 proceed as in this Section 10D provided, the Holder
or Holders of 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 Holders of the Bonds
as hereinabove provided, and to that end any such Holders 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
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determines in good faith and without any abuse of its
discretion that such action is likely to affect materially and
prejudicially the Holders of the Outstanding Bonds and any
Outstanding Parity Securities.
E Evidence of Securityholders. Any request, consent or
other instrument which this Ordinance may require or may permit
to be signed and to be executed by the Holder 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 Holder 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 holding
by any Person of the securities or coupons pertaining thereto,
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 Holder 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
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,
individual or individuals executing any such instrument on
behalf of a corporate holder 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 Holdings. The amount of Bonds or other
securities transferable by delivery held by any Person
executing any instrument as a holder of securities, and the
numbers, date and other identification thereof, togetner
with the date of his holding the securities, 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
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authorized to take acknowledgments of deeds or had on
deposit with such depository the securities described in
such certificate,
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 delivered for the
purpose provided for in this Ordinance shall constitute a
warranty by and on behalf of the City for the benefit of each
and every future Holder 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 Holder of the
Bonds for any action that they may or 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
Section 11. Amendment of Ordinance
A Amendment of Ordinance Not Requiring Consent of
Holders of Bonds The City may, without the consent of, or
notice to, the Holders of the Bonds , adopt such ordinances
supplemental hereto (which amendments shall thereafter form a
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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 Holders of the Bonds and
coupons, or
(2) To sub3ect to this Ordinance additional revenues,
properties or collateral.
B Amendment of Ordinance Requiring Consent of Holders of
Bonds. This Ordinance may be amended or modified by ordinances
or other instruments duly adopted by the City Council, without
receipt by it of any additional consideration, but with the
written consent of the Holders of at least 66% in aggregate
principal amount of the Bonds Outstanding at the time of the
adoption of such amendatory ordinance or other instrument,
including any Outstanding refunding securities as may be issued
for the purpose of refunding any of the Bonds, provided that no
such amendatory or modifying instrument 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
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prior redemption premium payable in connection therewith,
without the consent of the Holder 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) Modifying Amendment Terms A reduction of the
principal amount or percentages of Bonds , or any
modification otherwise affecting the description of Bonds,
or otherwise changing the consent of the Holders 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
(6) Partial Modification Any modifications
otherwise materially and preDudicially affecting the rights
or privileges of the Holders 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 publication at least
one (1) time by one (1) publication, in The Coloradoan, Fort
Collins, Colorado, if then in business and publishing, and if
not, then in a newspaper of general circulation published in
the City, and in The Bond Buyer , New York, New York, if then in
business and publishing , and if not, then in a similar
financial newspaper published in New York, New York, and by
mail within thirty (30) days after such publication to the
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t
Purchaser of the Bonds, or to any successor thereof known to
the City Clerk and to all such Holders of Bonds as have
furnished their names and addresses to the City Clerk pursuant
to Section 3B (2) (b) hereof. Such notice shall briefly set
forth 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 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 Holders of at least 66% in aggregate principal amount of
the Bonds then Outstanding , which instrument or instruments
shall refer to the proposd 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 authorized by
Section 11B hereof and such ordinance or instrument shall
become effective If the Holders of at least 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 Holders, shall have consented to
and approved the adoption thereof as herein provided, no Holder
of any Bond whether or not such Holder shall have consented to
or shall have revoked any consent as herein provided shall have
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any right or interest to ob3ect to the adoption of such
amendatory ordinance or other instrument or to ob3ect to any of
the terms or provisions therein contained or to the operation
thereof or to en3oin or restrain the City from taking any
action pursuant to the provisions thereof Any consent given
by the Holder of a Bond pursuant to the provisions hereof 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 Holders 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
Holder 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 Holders of 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.
D. Unanimous Consent Notwithstanding anything in the
foregoing provisions contained , the terms and the provisions of
this Ordinance, or of any ordinance of the City and of the
Holders of the Bonds and coupons thereunder 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 Holders of all the then Outstanding
Bonds, such consent to be given in the manner provided in
Section 11C hereof, and no notice to Holders of Bonds, either
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by mailing or by publication, 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 City's 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 City Clerk may
rely, describing all Bonds to be excluded for the purpose of
consent or of other action or of 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 this
Section 11, 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 Bond so authenticated and delivered after such
effective date does not bear such notation, then upon demand of
the Holder 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, authenticated and delivered, and upon demand of the
Holder of any Bond then Outstanding , shall be exchanged without
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a
cost to such Holder for Bonds then Outstanding upon surrender
of such Outstanding Bonds with all unmatured coupons pertaining
thereto.
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 Bonds held by any Person
executing such instrument, and the date of his holding 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 Bonas, 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 credit of the City payable out of general funds or out
of any funds derived from ad valorem taxes.
B No Pledge of Property. The payment of the Bonds is
not secured by an encumbrance, mortgage or other pledge of
proeprty 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 or taken in payment of
the Bonds
C Statute of Limtations No action or suit based upon
any Bond, coupon or other obligation of the City shall be
commenced after it is barred by any statute of limitation
pertaining thereto. Any trust or fiduciary relationship
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e
between the City and the Holder of any Bond of coupon 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 or coupon 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 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 of the City Nothing herein prevents the
payment of any such Bond, coupon, 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 Bonds. The printing of the Bonds,
including the printing upon each Bond of a copy of the
legal opinion of Ballard, Spahr, Andrews & Ingersoll, bond
counsel, duly certified by the City Clerk,
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(2) Final 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 delivery of the Bonds and the receipt of
the Bond purchase price,
(e) The exemption of interest on the Bonds from
federal income taxation,
(f) The disclosure of information provided in
any Bond offering brochure , Preliminary Official
Statement, Official Statement or offering circular for
prospective buyers of the bonds.
(3) Information The assembly and dissemination of
financial and other information concerning the City and the
Bonds,
(4) Official Statement or Offering Circular The
preparation of a Bond offering brochure , Preliminary
Official Statement, Official Statement, or offering
circular , for the use of prospective buyers of the Bonds,
including , without limitation, such use by the Purchaser
and its associates, if any, and
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2
(5) Bond Sale. The execution of the Bonds and the
sale, issuance, and delivery of the Bonds to the Purchaser
pursuant to the provisions of this Ordinance
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 Holders from time to time
of the Bonds and the coupons thereunto pertaining , 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 contained by and
on behalf of the City shall be for the sole and exclusive
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benefit of the City , and any Holder of any of the Bonds and the
coupons thereunto pertaining
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, Charter provision 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 heretofore taken (not
inconsistent with he provisions of this Ordinance) by the City
or its officers , and otherwise by the City directed
(1) Pro]ect. Toward the Pro3ect, and
(2) Bonds Toward the sale and delivery of the Bonds
for that purpose , is hereby 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 1973, 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
thereof, file with the Colorado Secretary of State their manual
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signatures certified by them under oath, using a suitable
Facsimile Signature Certificate for said purpose.
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 Holder or Holders
of the Bonds, and this Ordinance, subject to the provisions of
Section 9 and Section 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, bylaws, 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 unenforceability thereof shall not affect any of the
remaining sections, subsections, paragraphs, clauses or
provisions of this Ordinance
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Y
L Covenants and Representations Regarding Ordinance
No 113 On November 16 , 1982, petitions protesting the
effectiveness of Ordinance No 113 and requiring reconsidera-
tion thereof and/or submission thereof to referendum were
presented to the Council Unless and until said petitions
are dismissed or Ordinance No 113 is submitted to and
approved by the electors of the City, all covenants and
representations relating in any way to Ordinance No 113
or to the additional seventy-five hundredths percent ( 75%)
Sales and Use Tax imposed thereby shall not become effective,
provided that if said petitions are dismissed, said covenants
and representations shall be effective as of the effective
date of Ordinance No 113
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t
INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED
PUBLISHED ONCE IN FULL THIS 9th day of November, 1982
CITY OF FORT COLLINS, COLORADO
By
_C3
(CITY) Ma
(SEAL)
ATTEST
A . � -
City Clerk
The foregoing Ordinance will be presented for final passage
at the continuation of the Council' s ad3ourned regular meeting
of November 16, 1982, to be held at Council Chambers, City Hall,
300 LaPorte Avenue, Fort Collins, Colorado, on Tuesday, the 23rd
day of November, 1982, at 5 30 p m.
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READ, FINALLY PASSED ON SECOND READING, AND ORDERED
PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 23rd day of
November , 1982.
CITY OF FORT COLLINS, COLORADO
By
(CITY) Mayor
(SEAL)
ATTEST
�" S"
City er
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