HomeMy WebLinkAbout087 - 07/07/1981 - AUTHORIZING THE ISSUANCE OF SALES AND USE TAX REVENUE BONDS, IN THE AGGREGATE PRINCIPAL AMOUNT OF $5 ORDINANCE NO 87 1981
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
CITY OF FORT COLLINS, COLORADO, SALES AND
USE TAX REVENUE BONDS , DATED AUGUST 1 ,
1981 , IN THE AGGREGATE PRINCIPAL AMOUNT
OF $ 5 , 700 , 000 , FOR THE PURPOSE OF
ACQUIRING, CONSTRUCTING AND INSTALLING
STREET IMPROVEMENTS WITHIN THE CITY, AND
AMENDING CERTAIN PROVISIONS OF ORDINANCE
NO 58 , 1967 , AND ORDINANCE NO 140 ,
1979
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS ,
COLORADO, THAT
Section 1 Definitions and Construction
A Definitions In this Ordnance 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 c.ith Section
7B nereof
( 2 ) Average Annual Debt Service Requirements for the
Bonds , or a given issue of Parity Securities , the aggregate of all
Debt Service Requirements ( excluaing any redemption premiums) due
on the Bonds or the other given _ssue of Parity Securities in
question for all Bond Years beginning with the Bond Year in which
Debt Service Requ_rements of the Bonds or the Parity Securities
are first payable and ending with the Bond Year in which the last
of the Debt Service Requirements are payable divided by the number
of such years
( 3 ) Bonds those securities issued hereunder and
des_anated as the "City of Fort Collins , Colorado , Sales and Use
Tax Revenue Bonds ," dated August 1 , 1981 , in the aggregate
principal amount of $5 , 700, 000
( 4 ) Bond lear for the purpose of this Ordinance , the
twelve ( 12 ) months commenc_ng on the first day of August of any
calendar year ana ending on the last day of July of the next
succeeding calendar year
( 5 ) Cap_tal Pro3ects Fund the fund created by Ordinance
No 28 , 1980, and referred to in Section 5B hereof
( 6 ) Charter the Home Rule Charter of the City, as
amended
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( 7 ) LC ty the City of Fort Collins , Colorado
( 8 ) City Clerk the de jury or de facto City Clerk of the
City or his or her successor in functions , if any
( 9 ) City Council the City 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 SecuritiAs for which the computation is being made
( 11 ) Comm-rcial Bank a state or national bank or trust
company which is a member of the Federal Deposit Insuranc-
Corporation and of the Federal Reserve SystAm, which has a capital
and surplus of $1 , 000 , 000 or more , and which is located within the
United States , and such term includes , without limitation , any
Trust Bank, as herein defined
( 12 ) CorrparablA 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 , 1982 , the Comparable
Bond Year for the Bonds commences on August 1 , 1981 , and ends on
July 31 , 1982
( 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 , d-sign , inspection , fiscal , and legal
expenses , any discount on the sale of the Bonds, costs of
financial , professional , and other estimates and aavice ,
contingencies any administrative , operating , and other -xpenses
of the City prior to ano during the construction period for the
Project , as may b- determined by the City Council , and all such
other expenses as may be necessary or incident to the accuisition ,
construction and installation of the Project , or part thereof , and
the placing of th- same in public use , pro,. ision for r-serves for
replacAment AxpensAs or for payment or security of principal of or
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interest on the Bonds during or after the construct-on period as
the C_ty Council may determine
( 14 ) Coupons or coupons those obligations evidencing
interest on and pertaining to the Bonds and any othe- securities
payable from the Pledged Revenues , or such part of such securities
as may be designated
(15 ) Debt Service Reau_rements the princ_pal of , _nterest
on , and any premiums due in connection with the redemption of , the
Bonas 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 part of 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
l0A hereof
(17 ) Federal Securities bills , certificates of
indebtedness , notes , bonas 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
( 21 ) Independent Accountant any certified public
accountant , or any firm of such accountants , duly licensed to
Dractice and practicing as such under the laws of the State ,
appointed and pa-d by the City, who ( a) is , _n fact , independent
and not under the dom_nation 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) ;s not connected with the City
as a member , officer or employee of the City Council , but who may
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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 C_ty ( 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 ) Ordinance This Ordinance No 87 , 1981 , of the City,
which provides for the issuance and delivery of the Bonds
( 26 ) Ordinance No 47 Ordinance No 47 , 1980 , of the City,
which authorized the issuance of the 1980 Bonds
( 27 ) 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
( 28 ) 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
(29 ) OutstandLng or outstanding when used with reference to
the Bonds , the Additional Parity Bonds , Parity Securit_es or any
other designated securities of the City and as of any particular
gate , means all the Bonds , the Additional Parity Bonds , Parity
Securities or any such other securities payable in whole or in
part from the Pleaged Revenues , or otherw-se perta_ning to the
Project , as the case may be , in any manner theretofore and
thereupon being executed and deliverea , except the following
( a) Any Bond , Additional Parity Bond , Parity Security
or other security cancelled by the City, by the Pay_ng Agent ,
or otherwise on the City' s behalf , at or before such date ,
( b) Any Bond , Additional Parity Bond or Parity Security
held by or on behalf of the City ,
( c) Any Bond , Additional Parity Bond or Parity Security
or other security of the City for the payment or the
redemption of which moneys or Feaeral Secur_ties suff_c_ent
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to meet all of the payment requirements of the principal of ,
the interest on , and any prior reoemption premiums due in
connection with such Bond , Additional Parity Bonds or Parity
Security or other security to the date of maturing or any
reoemptlon 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 of or in substitution for which
another bond or other security shall have been executed and
delivered pursuant to this Ordinance
( 30 ) Parity Securities bonds ( including the 1980 Bonds) ,
warrants , notes , securities , leases or other contracts payable
from the Pledged Revenues equally or on a parity with the Bonds
( 31 ) 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
( 32 ) Person any inaividual , firm , partnership, corporation ,
company, association , 3oint-stock association, or body politic ,
and the term includes any trustee , receiver , assignee , or other
similar representative thereof
( 33 ) Pledged Revenues all or a portion of the Pledgeo 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
( 34 ) Pledgeo Sales ano Use Tax Revenues the Net Revenue
collected by the City from the Sales and Use Tax
( 35 ) Principal and Interest Account the special fund
created in Section 5D hereof
( 36 ) Project the acquisition , construction and installation
of street improvements within the City, for which purpose the
Bonds are issued hereunder , whether such acoulsitlon , construction
and installation are undertaken at one time or in stages
( 37 ) Purchaser , of
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and its assjc�ates , if any
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( 38 ) 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 fix-d and
designated by the City
( 39 ) R-demption Price when used with respect to a Bond or
other d-signa`_ed 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
( 40 ) Reserve for Sales and Use Tax Revenue Bonds and
Interest the Reserve for Sales and Use Tax Revenue Bonds and
Interest established pursuant to the provisions of Ordinance No
47
( 41 ) Reserve Account th- special fund created in Section 5E
hereof
( 42 ) Sales and Use Tax the sales and use tax established by
Ordinance No 58 and Ordinance No 140 upon sales and purchases of
tangible personal property at retail and storage , use ,
distribution and consumption of tangible personal property
purchas-d or acquired at retail , within the City, in such
percentages as se: forth in Ordinance No 58 and Ordinance No 140
or any supplements or amendments thereof
( 43 ) Sales and Us- Tax Fund the special fund created in
Section 5C hereof
( 44 ) s-curity or securities when used with reference to
securities of the City, any bond issued oy the City, or any other
evidence of the advancement of money to the City
( 45 ) State the State of Colorado
( 46 ) Subordinate Bonds or Subordinate Securities bonds or
securities payable from the Pledged Revenues having a lien thereon
subordinate or 3unior to the lien thereon of the Bonds
( 47 ) Superior Bonds or Superior Securities bonds or
securities payable from the Pledged Sales and Use Tax Rev-naps
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having a lien thereon superior or senior to the lien thereon of
the Bonds
( 48 ) 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
( 2 ) Words in the masculine gender include the feminine and
the neuter , and when the sense so indicates woras of the neuter
gender refer to any gender
(3 ) Articles , sections , subsections , paragraphs and
subparagraphs mentioned by number , letter , or otherwise ,
correspond to the respective articles , sections , subsections ,
paragraphs and subparagraphs of this Ordinance so numbered or
otherwise so designated
( 4 ) The titles and headlines applied to articles , sections
and subsections of this Ordinance are inserted only as a matter of
convenience and ease in reference and in no way define , or lim_t
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 street improvements within the City, including
the Project
B Authority For Bonds The City is authorized by the Colorado
Constitution and the Charter , by City Counc_1 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 Autnorizat_on The C_ty of Fort Collins , Colorado , Sales and
Use Tax Revenue Bonds , in the aggregate principal amount of
$5 , 700 , 000 , payable as to all Debt Service Requirements solely out of
Pledged Revenues are hereby authorized to be issued , pursuant to the
Colorado Constitution , the Charter ano the terms of the Ordinance , and
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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 the Cost of the Project
B Bond Details
( 1 ) Generally The Bonds shall be issued payable to bearer , and
dated as of August 1 , 1981, consisting of 1 ,140 Bonds in the
denom_nation of $5 , 000 each , numbered consecutively in regular
numerical order from 1 through 1 , 140
The Bonds shall bear one set of interest coupons ev_dencing
_nterest thereon from August 1 , 1981, to the_r respective maturity
dates , except if redeemed prior thereto , at the per annum coupon
interest rates stated below The coupon interest shall be payable
February 1 , 1982 , and semiannually thereafter on the lst day of August
and the lst day of February of each year
The Bonds shall be numbered , shall mature on the lst day of August
in the principal amounts and years , and shall bear per annum coupon
interest at the rates as shown in the following schedule
Bond Numbers Principal Per Annum Coupon
( both inclusive) Amounts Years Interest Rates
1 to 64 $320, 000 1982
65 to 134 350 , 000 1983
135 to 212 390, 000 1984
213 to 296 420 , 000 1985
297 to 389 465 , 000 1986
390 to 413 120 , 000 1987
414 to 439 130 , 000 1988
440 to 468 145 , 000 1989
469 to 499 155, 000 1990
500 to 534 175 , 000 1991
535 to 572 190 ,000 1992
573 to 614 210 , 000 1993
615 to 660 230 , 000 1994
661 to 711 255 , 000 1995
712 to 767 280, 000 1996
768 to 828 305 , 000 1997
829 to 895 335, 000 1998
896 to 969 370 , 000 1999
970 to 1 , 050 405, 000 2000
1 , 051 to 1 , 140 450 , 000 2001
Tne Debt Service Requirements of the Bonds are payable in lawful money
of the United States of America , w_thout deduction for exchange or
collection charges , upon presentat_on and surrender of the Bonds and
the interest coupons as they severally become due , at the office of
the Paying Agent
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If upon presentation at matur_ty payment of any Bond is not made
as herein provided , interest shall continue thereon at the coupon
interest rate designated in the Bond until the principal thereof is
paid in full
( 2 ) Redemption of Bonds Prior to Maturity
( a) The Bonds shall be redeemable n whole or in part at the
option of the City, in inverse numerical order , on any _nterest
payment date beginn_ng August 1, 1991 , at a redemption price equal to
101% of the principal amount thereof plus accrued interest thereon to
the Redemption Date
( b) Notice of any redemption shall be given by the C_ty Clerk in
the name of the City
( i) Publicat_on 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
published in the City, and in The Daily Bond Buyer , New York , New
York , if then in business and publish_ng , and if not , then in a
sim_lar financial newspaper publ_shed _n New York , New York, and
( i_ ) Mail By sending a copy of such not_ce by certified or
registered first-class postage prepaid ma-1 , 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 are recorded with
the City Clerk For this purpose , the Holder of any such Bond may at
any t_me furnish his name and address to the City Clerk
Such notice shall specify the number or numbers of the Bonds to be
redeemed and the date fixes for redemption and shall further state
that on the Redemption Date there will become and will oe due and
payable upon each Bond to be redeemed at the office of the Pay_ng
Agent the principal amount thereof , accrued interest on the principal
amount of eacn Bond to the Redemption Date , and any premiums payable
on prior redemption , and that from and after such pate interest will
cease to accrue Any Bongs redeemed prior to their maturity by call
for pr _or redempt_on or otherw_se shall not be re_ssued and shall be
cancelled the same as Bonds paid at or after ma+-urity
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( 3 ) Negotiable Instruments Title to any Bond or to any coupon
shall pass by delivery merely, as a negotiable instrument payable to
bearer Subject 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 amenaed , the Uniform Commercial
Cooe--Investment Securities , and each Holder or Holaers of the Bonds ,
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 14 % The actual net
effective interest rate for the Bonds of this issue is %
( 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 nave 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 oelivery 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 executea and sold , the officers of the City ar=
authorized to , and shall , deliver the Bonas to the Purchaser thereof
on receipt of the agreec purchase price
( 6 ) Lost , Destroyed or Taken Bonds If any Outstanding Bind or
coupon shall become lost , apparently destroyed , or wrongfully taken ,
it may be reissued in the form and tenor of the lost , ❑estraye❑ or
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taken Bond or coupon , upon request therefor by the owner prior to
receipt by the City of notice that such Outstanding Bond or coupon has
been acquired by a bona fide purchaser , ano upon the owner 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 ano concitions are not otherwise contrary to the provisions of
this Ordinance or the requirements of law, any Outstaneing Bond or
coupon which shall not have become lost , apparently destroyed , or
wrongfully taken
( 7 ) Recitals in Bonds Each Bond shall recite in substance that
the Bond is payablA solely from the Pledged Revenues and that the Bond
is not payablA 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 if the Charter and this
OrdlnancP
( 8 ) Form of Bonds and Coupons Sub3ect to the provisions of this
Ordinance , each Bono , and the coupons to be attached thereto , shall be
in substantially the following form , with such omissions , insertions ,
endorsements , and variations as to recitals of fact or other
provisions as may be required by the circumstances and as may be
required or permitted by this Ord nance , 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 thPre`_o
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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 Lar_mer , and State of
Colorado ( 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 August the principal
sum of
FIVE THOUSAND DOLLARS
and to pay solely from sa-d special funds interest thereon as
evidenced by interest coupons hereto attached , at the rate of
per centum ( % ) per annum from August 1 , 1981, to the maturity date
of this Bond , except if redeemed prior thereto , payable February 1 ,
1982, and sem_annually thereafter on the 1st day of August and the 1st
day of February of each year , upon presentation and surrender of this
Bond and said coupons as they severally become due If upon
presentation at maturity payment of this Bond _s not made as herein
provided , interest shall continue at the coupon interest rate
designated herein until the principal hereof is paid _n full
The principal of and interest on this Bond and any premium due in
connection with the redempt_on of this Bond ( the Debt Service
Requirements) are payable :n lawful money of the United States of
America , without deduction for exchange or collection charges , out of
the special funas hereinafter spec-flea , 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
th_s Bond as they severally become due
Th_s Bond and the Bonds of the series of wh_ch th_s _s one are
redeemable at the option of the City _n _nverse numerical order on any
_nterest payment date beginning August 1 , 1991 , at a redempt_on price
eaual to 101% of the pr :nc_pal amount thereof plus accrued interest to
the Redempt_on Date
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Redemption shall be made upon not less than thirty (30 ) days'
prior notice by publ_cat_on 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 _n 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 _n the City, and in The Daily Bond Buyer , New York, New
York, if then in business and publishing , and if not , then _n a
similar financial newspaper published _n 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 holders are
recorded with the City Clerk For this purpose , the holder of any
such Bond may at any time furnish his name and address to the C_ty
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 oue 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 an exclusive
assignment and pledge) of certain Pledged Revenues consisting of net
receipts from the C?ty' s Sales and Use Tax ( the Pledged Revenues) , as
more specifically provided in Ordinance No 87 , 1981 ( the Ordinance) ,
pursuant to which this Bond is issued This Bond and the interest
coupons appurtenant hereto are not payable _n 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 exclusively) pledged , pursuant to the Ordinance ,
tko special funds thereby created and identified as the "City of Fort
Collins , Colorado , Sales and Use Tax Revenue Bonds , Principal and
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Interest Account" and the "City of Fort Collins , Colorado , Sales and
Use Tax Revenues 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 Bonas of the series of wnich this is one and any additional
parity securities hereafter issied and payable from such rev-nues , and
to accumilate and maintain a specified reserve for sucn purposes In
additioi , 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 th- 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, oit of the amounts and revenues sp-cified 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 th- 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 nec-ssarily an
exclusive first lien) upon the Pl-agea Revenues Binds and other
types of securities , in addition to the Bonas of the series of which
this is one , subject to expressed conditions , may be issied and made
payable from the Pledged Revenues having a lien thereon subordinate
and junior to the lien of the Bonds of the series of which this is one
or , subject to additional expressed coiditions , 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 Bona , *he series of which
this Bind is one , ana the interest hereon ana thereon in anticipation
of the collection of the Pleaged Revenues
The City covenants and agrees with the holder of th_s Bond and
with each ana every person who may become the holder hereof that it
will keep ano will perform all of the covenants of this Bond and of
tho Orainance
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,
This Bond is one of a series of 1 , 140 Bonds in the aggregate
principal amount of $5 , 700 , 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 street _mprovements within the City, under the authority of
and :n full conformity with the Constitution of the State of Colorado ,
the City Charter , and all other laws of the State of Colorado
thereunto enabling , and pursuant to the Ordinance and other ordinances
of the City, duly adopted , published and made laws of the City prior
to the issuance of this Bond
Reference is hereby made to the Ordinance , and to any and all
modificat-ons and amendments thereof , for a description of the
provisions , terms and conditions , and definition of terms, upon which
the Bonds of the series of which this is one are issued and secured ,
including , without limitation , the nature and extent of the security
for the Bonds , provisions with respect to the custody and application
of the proceeds of the Bonds, the collection and a_spositLon 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 thereoy for the payment of the Debt Service Requirements , and
the manner of enforcement of said pledge , as well as the rights ,
duties , immun_ties and obligations of the City and the members of its
City Council and also the rights and remedies 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 the-eto , may be modified or amended by action of the City
taken _n the manner and subject to the cond_tions and exceptions
providea in the Ordnance The pledge of revenues and other
obligations of the C_ty under the Ordinance may be d_scharged 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
Ora_nance
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It is hereby recited , certified and warranted that all the
requirements of law have b-en 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 , ano all other laws of the State
of Colorado , and with the Ordinance and any instrument supplemental
thereto , that this Bond toes not contravene any constitutional or
statutory limitation of the State of Colorado or any limitation of the
City Charter , ano that this Bond and each of the other Bonds of the
series of which it is one are issued under the authority of the
Orainance
Fir the payment of this Bond and the interest hereon , the City
pledges the exercise of all its lawful corporate powers
IN WITNESS WHEREOF , the City Council of the City of For , 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 facsimilA 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 th- 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 cay of
August , 1981
CITY OF FORT COLLINS , COLORADO
By ( Facsimile Signature)
Mayor
( FACSIMILE)
( SEAL )
Attest
( Facsimile Signature)
City C er
Countersignea
( Manual Signature)
Finance Director
( End of Form of Bond )
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( Form of Interest Coupon)
Coupon
No $
February,
on the first day of August , the City of Fort Collins , in the
County of Lar-mer and State of Coloraao , will upon surrender of this
coupon pay to bearer the amount shown hereon -n 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 Coll-ns ,
Colorado , solely from and secured by a pledge of two specLal funds ,
created from the Pledged Revenues derived from the sources set forth
in the Bond to which this coupon pertains , beLng the interest then due
on its City of Fort Collins , Colorado , Sales and Use Tax Revenue Bona ,
dated August 1, 1981 , bearing
Bond No
( Facsimile Signature)
Mayor
City of Fort Collins , Colorado
( End of Form of Coupon)
-19-
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 herein-designated
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 the 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 pledgea for payment
of the Binds or their coupons
Section 4 Sale of Bonds
A Public Sale The City Council has heretofore by Resolution
No 81-73 authorized the publication and mailing of Official Notice of
Bond Sale with respect to the Binds and pursuant there*o has received
sealed bias for the purchase of the Bonds
B Award of Contract The contract for the purchase of the
Bonds is hereby awarded to the Purchaser , the lowest and best
responsible bidder , at the price specified in the Purchaser ' s bid and
upon the terms set forth in this Ordinance
C Preliminary Official Statement, Official Statement The City
Council has heretofore by Resolution No 81-73 authorized the
preparation and dessimination of the Preliminary Official Statement of
the City, dated May 28 , 1981 , relating to the issuance and sale of the
Bonds The contents of the Preliminary Official Statement are hereby
approved Tie ise of the Preliminary Official Statement by the
Purchaser for the reoffering of the Bonds to the public is approved ,
and the Mayjr , on behalf of the City, is authorized to sign one or
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more copies of the Preliminary Official Staterr= it and the final
Official Statement
Section 5 Funds and Accounts Adopted or Created by Ordinance
A Disposition of Bond Proceeds and Other Revenues, Security For
Bonds The pros-ed s from the sal- of the Bonds and the Pledged
Rev-nues received by the City shall be deposited by the City in the
funds described in this Section 5 , to be accounted for in the mann-r
and priority set Eorth in this Section 5
The validity of the Bonds shall not be dependent on nor 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 prose-ds of the Bonds are applied as pruvided in this
S-ction 5 and used to defray the Cost of the Project from time to
time , the proceeds of th- Bonds shall be subject to a lien thereon and
pledge thereof for the benefit of the Holders of the Bonds from time
to tim- as provided in this S-ction 5
The Pledged R-v-nu-s , and all moneys and securities paid or to be
paid to or held or to be held in any fund or account hereunder are
her=_by assigned and pledged to secure the payment of the Debt Service
Requirements of the Bonds , subject to the provisions herein relating
to the Capital Projects Fund and subj -ct to the application of the
Pledged Revenues for payment of Dent Service Requir-ments of Parity
Security-s , including the Bonds , and this assignment and pledge shall
be valid and binding from and aft-r the date of the first delivery of
the Bonds , ano the moneys , as receiv-d by the City and hereby assigned
ano pledged , shall immediately be subject to the lien of this
assig anent and pledge without any physical delivery thereof , any
filing , or firth-r act , ano the lien of this assignment and pledge and
the obligation to perform the contractual provisions herby made shall
hav- priority over any or all other obligations and liabilities of the
C_ty ( except as herein otherwise expressly provided ) , and the lien of
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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 noticA thereof
B Capital Projects Funa The proceeds of the Bonds , except the
sums requires in Sections 5D and 5E hereof to be deposited in the
Principal and Interest Account and the Reserve Accoun` , shall be
aeposited in the Capital Projects Fund and shall be used and withdrawn
only as proviaeo in this Section 5B
The proceeds of the Bonds deposited in the Capital Projects Fund ,
except as herein otherwise expressly proviaed , shall be used ana paid
out from time to time solely for the purpose of 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 ana
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 Axtent 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 accripd and to
accrue under any contracts then existing and pertaining to the
Project Any moneys so used shall be r-storpo to the Capital Projects
Find from the first Pledged Revenues thereafter received ano not
needed to meet the requirements provides in Sections 5D and 5E hereof
C Sales aid 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
tneir receipt from time to time by the City, shall be set aside and
credited immediately, and the City hereby covenants witn the Holders
of the Bonds and any interest coupons pertaining thereto to so set
-22-
aside and credit the Pledged Revenues immediately to a special
separate fund hereby created and 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
Bonas ana 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 5D,
( 2 ) Second , to the Reserve Account , in the manner set forth in
Section 5E ,
( 3 ) Third , to the payment of the Debt Service Requirements of
Subordinate Bonds or other Subordinate Securities in accordance with
Section 5G , and
( 4 ) Fourth , to be used in accordance with Section 5H
D Principal and Int=rest Account
The City shall deposit in a special separate fund he-eby 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 ana Interest Account" forthwith upon receipt
of the proceeds of the Bonds, interest accrued thereon from their date
of issue to the date of delivery thereof to the Purchaser , to apply to
the payment of interest on the Bonds as the same becimes due after
their delivery
The City shall deposit in the Principal and Interest Account and
in the General Fund fir deposit to the Reserve for Sales and Use Tax
Revenue Bonds and Interest , monthly, on or befire the last day of each
month beginning in August , 1981 , the following arroints
( 1 ) Interest Payments To the Principal ana Interest Account
one- sixth (1/6 ) of the aggregate amount of the next maturing
installment of interest in the Bonds , any Additional Parity Bonds and
any other Parity Securities ( eXCeDt the 1980 Bonds) then Outstanding ,
to the General Fund fir deposit to the Reserve for Sales ana Use Tax
-23-
Revenue Bonds and Interest the amount for interest in thA 1980 Bonds
specified in Ordinance No 47
( 2 ) Principal Payments To the Principal ana 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 1960 Bonas) then Outstanding ,
to thA General Fund for deposit to the Reserve for Sales ana 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 Securities ( except the 1980 Bonds)
then Outstanding , as such Debt Service Requirements become due , except
as othArwise provided in this Ordinance
E Reserve Account Payments The City shall deposit in a
special separate fund hereby created as a restricted account within
the Sales and Use Tax Fund and designated as the "City of Fort
Collins, Colorado , Sales and UsA Tax Revenue Bonds , Reserve Account ,"
forthwith upon receipt of the proceeds of the Bonds , the sum of
$500 ,000 Sub3ect to the payments required by Section 5D hereof ,
except as proviaed in Section 5F hereof , from and to the extent of any
moneys remaining in the Sales and Use Tax Fund , there shall be
credited as hereinafter provided and from time to time thereafter to
the Reserve Account moneys sufficient to accumulate in and maintain
the Reserve Account at an amount at least equal to the Combined
Average Annual Debt Service Requirements for all Outstanding Bonds ,
Additional Parity Bonds and other Parity Securities ( except the 1980
Bonos) , which amoant shall be maintained as a continuing reserve to
neet possible deficiencies in the Principal and Interest Accoun* 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 August 1 , 1982, and on thA same
date in each of the yAars 1983 through 1986 , inclusive No paymAnt
-24-
n-ed be made into the Reserve Account so long as the mon-ys 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
b- used , except as hereinafter provided in Sectiois 5F and 9 hereof ,
only to prevent aeficiencies in payment of the Debt Service
Requirements of th- 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 Account
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 Int=rAst Account the fill amount above stipulated , then
an amount shall be paid into the Principal and Interest Account at
such time from the Reserve Account equal to the difference between
that paid from the Pledged Revenues in the Sales and Use Tax Fund and
the full amount so stipulated The money so used shall be replaced to
the Reserve Account from the first moneys credited to the Sales and
Use Tax Fund thereafter received and not required to be otherwise
applied by Section 5D hereof
Nothing in this Orcinance shall be construeo as limiting the right
of th- City to augment the Principal and Interest Account or the
Res-rvA Account with any oth-r money which is legally available for
payment of the Debt Service Reauirements of the Bonds , Additional
Parity Bo- nos or ithAr Parity Securities
F Termination of Deposits, Us- 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 th-
Reserve Account total a sim at least equal to the entire amount of the
Outstanaing Bonds and any Outstanding Additional Parity Bonds and
Parity Securities ( except the 1980 Bonas) , as to all Debt Service
-25-
R=quirements , to their respective maturities or to any Redemption Date
or Redemption Dates on which the City shall have exercised or shall
have obligated itself to exercise its option to redeem, prior to their
respective maturities , any Bonds , any Additional Parity Bonds and any
other Parity Securities ( except the 1980 Bonds) then Outstanding , and
thereafter maturing , both accrued and not accrued (provided that ,
solely for the purpose of this Section 5F, there shall be deemed to be
a crecit to the Reserve Account of moneys , Federal S=curities 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 Reouirements) , in which case moneys in the
Principal and Interest Account and the Reserve Account in an amount ,
except for any known interest or other gain to accrue from any
investment or deposit of moneys pursuant to Section 6B hereof from the
time of any such investment or deposit to the time or respective times
the proceeds of any sich investment or deposit shall be needed for
such payment , at least equal to such Debt Service Requirements , shall
be used together %ith any such gain from such investments and deposits
solely to pay such Dpbt 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
Revenups or otherwise pertaining to the Pr03ect may be uspo in any
lawful manner determined by the City
The moneys in the Principal and Interest Account and in th=
Reserve Account snall be used solely and only for the purpose of
paying the D-ot Servicp Requirements of the Bonds , any Aoditional
Pa-sty Bonas and any other Parity Securities ( except the 1980 Bonds)
authorizpa and Outstanding from time to time, but any moneys at any
time in excess of the minimum amount required to be mairtained in the
Reserve Account may be withdrawn therefrom , and transferred from time
to time to the Principal and Interest Account and distributeo in the
same manner as other moneys in the Principal and Interest Account
G 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 Fond may be used by the
City for the payment of Deot Service Requirements of Subordinate
-26-
Securities payable from the Pledged Revenges and hereafter authorized
to be issued in accordance with this Ordinance and any other
provisions herein supplemental thereto , including reasonable reserves
for such Suoorcinate 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 pleage of the Bonds , Additional Parity
Bonds and any Parity Securities as nereln provided
H Use of Remaining Revenues After the payments hereinabove
regaired to be made by Sections 5D throigh 5G hereof are mane , 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 aeposit to the Reserve for Sales and Use Tax RevenuA 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
requirea to be deposited in those funds at that time , as herein
provided , any remaining Pledged Revenues shall be transferrea to any
fund of the City
I Budget and Appropriation of Funds ThA sums provided to make
the payments specified in this Section 5 are herAby appropriated for
said purposes , ana saia amounts for each year shall be incladed in the
annual budget and the appropriation ordinance or measures to be
adopted or passed by the City Council �n each year respectively while
any of the Bonas , Aither as to principal or interest , are Outstanding
and unpaid No provisions of any constitution , statute , charter ,
ordinance , resolution , or other order or measire 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
containea in this Ordinance so long as any of the Bonds remain
Outstanaing ana unpaid Nothing heroin shall prohibit the City
Council from appropriating other funds if the City legally available
for this purpose to the Sales and Use Tax Fared or the Principal and
Interest Account for the purpose of providing for the Deot Service
RAquirements of the Bonds
Section 6 General Administration of Funds ana Accounts
A Places and Times of Depisits Each of the special funds
referred ti in Section 5 hereof shall be maintained in a Commercial
-27-
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 or 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 or accounts Each periodic payment shall be credited to the
proper account not later than the date therefor herein designated ,
except that when any such date shall be a Saturday, a Sunday or a
legal holiday, then such payment shall be made on or before the next
preceding business day
B Investment of Funds and Accounts Any moneys in any fund or
account established by this Ordinance may be deposited , invested , or
reinvested in any manner permitted by law Securities or obligations
purchased as such an investment shall either be subject to redemption
at any time at face value by the holder thereof at the option of such
holder , or shall mature at such time or times as shall most nearly
coincide with the expected need for moneys from the fund or account in
question Securities or obligations so purchased as an investment of
moneys in any such fund or account shall be deemed at all times to be
a part of the applicable fund or account , provided that , with the
exception of the Reserve Account, the interest accruing on such
investments and any profit realized therefrom shall be credited to the
Sales and Use Tax Fund , and any loss resulting 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
soecified in Section 5E hereof , such interest and profit may be
transferred to the Principal and Interest Account and distributed in
the same manner as other moneys in the Principal and Interest Account
Any loss resulting from such investments in the Reserve Account shall
-28-
be charged to the Reserve Account The City shall present for
redemption or sal- 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 proviae
moneys to meet any requirea payment or transfer frim 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 S5 , 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 inv-stmPnt 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 officer of the City shall be
liable or responsible for any loss resulting from any investment or
reinvestment made in accordance with this Ordinance
D Character of Funds The moneys in any fund herein authorized
shall consist if lawful money of the Unitea 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 containea 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 Pleageo Pevenues
inning herein contained reouires in connection with the Pledged
-29-
Revenues received in any Fiscal Year the accumulation in any fund or
account fur 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 such Debt Service Requirements due
in such Comparable Bond Year , or in excess of any reserves required to
be accumulated ana maintained tnerefor , ano of any existing
aeficiencies , and payable from such fund or account , as the case may
be , except as may be otnerwise provided herein
Section 7 Priorities, Liens, Issuance if Additional Bonds and
Additional Securities
A First Lien on Pledged Revenues
Except as expressly provides in this Ordinance with respect to the
issuance of Additional Parity Bonas , Parity Securities or Subordinate
Securities , the Pledgea Revenues shall be and hereby are irrevocably
assigned , pledged and sot aside to pay the Debt Service Requirements
of the Bonds The Bonds constitute an irrevocable and firs* lien ( but
not necessarily an exclusive first lien) upon the Pledged Revenues
The Bonds , any Additional Parity Bends 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 bp actually issued and delivered at different times
B Issuance of Parity Bonds Nothing herein , subDect to the
limitations stated in Section 7G hereof , prevents the issuance by the
City of Additional Parity Bonds or other additional Parity Securities
payable from the Pledged Revenues and constituting a lien on the
Pledged Revenues on a parity with , but not prior or superior to , the
lien thereon of the Bonds , or prevents the issuance of bonds or other
securities refunding all or a part of the Bonds , except as provided in
Sections 7F tnrjugh 7G hereof , but before any such Additional Parity
-30-
Bonds or other additional Parity Securities are authorized or actually
issued ( excluding any parity refunding Securities permitted to be
issued 1Z 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
amounts 11 the Reserve Account on the date of issuance of the proposed
Additional Parity Bonds or other additional Parity Securities If
Saes 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 ad3usted 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 wnich 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 miiimim amount required by this Ordinance
(4 ) Requirements of Ordinance No 47 Any other or further
r=dulrements of Ordinance No 47 must have been satisfied
C Cer`ification of Revenues In the case of the computation of
the revenue tests provided in Section 7B, the specified and required
written certi `ications by the Independent Accountant that such annual
revenues are Sufficient to pay such amounts as provided in Section 7B
-31-
hereof shall be cinclusively presumed to be accurate in determining
the right of the City to authorize , issue , sell and deliver Adaitional
Parity Bonds or other additional Parity Securities on a parity witn
the Bonds and other Parity Securities
D Subordinate Securities Permitted Nothing herein , subject to
the limitations stated in Section 7G hereof , prevents the City from
issuing additional bonds or other additional securities for any lawful
purpose payable from the Pledged Revenues and having a lien thereon
subordinate , inferior and junior to the lien thereon of the Bonds
E Superior Securities Prohibited Nothing herein permits the
City to issue additional bonds or other additional securities payable
from the Pledged Revenues and having a lien thereun prior and superior
to the lien thereon of the Bonds
F Refunding Bonds At any time after the Bonds , or any part
thereof , ar- 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 rAgardless of whether the priirity if 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 ) , orovided that
the issuance of any such refuiding bonds or other refunding securities
shall be subject to the folliwing 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 Unrefinced Bonds Any such refunding
obligations payable , in whole or part , from the Pledgea Revenues may
be issiec with such details as the City may by ordinance provide so
long as there is no impairment of any contractual obligation impisea
upon the Cit} by any proceedings authorizing the issuance if the
unrefunded series of Binds or securities No such refunding
obligations payable , in whole or part , frim the Pleaged Revenues may
oe issued on a parity with the unrefunoed series of Bonds �r
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securities without the consent of the Holder or Holders of such
unrefundea Bonds or securities unless either ( 1 ) the refunding
obligations do not increase for any Fiscal Year in which the
unrefunded series of Bonds or seuurities 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 serfs of securities not
refunded or ( 2 ) such refunding bonds or refunding securities are
issued in compliance with Sections 7B and 7C
( 3 ) Limitations Upon RAfundings Any refunding bonds or
refunding securities payable from any Pledged Revenues shall be issued
with such details as the City may by instrument provide , subject to
the provisions of Section 7G hereof , ana subject to the inclusion of
the applicable rights and privileges designated in Section 7F( 2 )
G Supplemental Ordinances Additional bonds or other
additional securities payable from any Pledged Revenues shall be
issued only after authorization thereof by ordinance , supplemental
ordinance or other instrument of the City Council , in substantially
the same form as this Ordinance , stating the purpose or purposes of
the issuance of such additional securities , directing the application
of the proceeds thereof to such purpose or purposes , directing the
execution thereof , and fixing and determining the sate , principal
amount , maturity or maturities , designation and numbers thereof , the
maximum rate or rates of interest to be borne thereb} , any prior
redemption privileges of the City with respect thereto , and providing
for payments to and from thA 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 , ana
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
aocument of the City Council
Section 8 Covenants
The City hereby particularly covenants and agrees with the Holders
of the Bonds ana coupons pertaining thereto from time to time , and
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makes prov_s_ons which shall be a part of its contract with such
Holders , which covenants and provis_ons shall be kept by the City
cont_nuously until all of the Bonds ana the interest thereon , have
been fully paid and discharged , to the effect ano with the purpose
that
A Amendment of Certain Ordinances, Cont-nuance and Collection
of Taxes
( 1 ) Section 77 of Ordinance No 58 is hereby amended to read as
follows
Purpose of Tax Distribution of Proceeds The City Council
hereby declares that the purpose of the levy of the taxes imposed
by this ordnance is for the raising of funds for the payment of
the expenses of operating the C_ty and for capital improvements ,
and in accordance with these purposes , all of the proceeds of said
tax shall be placed in and become a part of the "Sales and Use Tax
Fund" of the C_ty
( 2 ) Section 1 of Ordinance No 140 _s hereby amendee to read as
follows
That there is hereby _mposed a retail sales and use tax in
the amount of one percent (1% ) , sa-d one percent to be in addition
to the one percent ( 1% ) presently _mposed by Chapter 104 of the
Code of tt+e City of Fort Collins Said tax _s to be util_ zed for
the paymer* of expenses of operating the City and for capital
improvements
( 3 ) Except as proviaed _n paragraphs ( 1 ) and (2 ) of this Section
8A, Ordinance No 58 and Ordinance No 140 , as originally adopted ,
have not been repealed or amended and are now in full force and
effect The C_ty will not repeal or amend saLd ordinances in any
manner wh_ch woula diminish the Pledged Sales and Use Tax Revenues
(4 ) The City will continue to levy , _mpose , admin_ster , 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 acqu_reo at
reta_1 , w_thin the C_ty, _n accordance with Ordnance No 58 and
Ordinance No 140 w_thout reduct_on in the percentage rate of the
Sales and Use Tax as set forth therein
( 5 ) The City shall maintain the Sales and Use Tax Fund as a fund
of the C_ty separate and d.st_nct from all other funds of the C_ty and
shall place the Pledged Sales and Use Tax Revenues therein The Sales
and Use Tax Fund shall be subject to appropriation only as authorized
by this Ordnance
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( 6 ) All of the Pledged Revenues resulting from the imposition and
collection of the Sales and Use Tax shall be subject to the payment of
the Debt Service Requirements of all securities payable from the
Pledged Revenues , including reserves therefor , as provided here_n or
in any instrument supplemental or amendatory hereto
B Defense of Legality of Pledged Revenues There _s not
pending or threatened any suit , action or proceeding against or
affecting the City before or by any court , arbitrator , adm_nistrative
agency or other governmental autho-ity which affects the validity or
legality of this Ordinance , Ordinance No 58 or Ordinance No 140, the
imposit_on and collection of the Sales and Use Tax , or any of the
City' s obligations under this Ordinance or any of the transactions
contemplated by this Ordinance , Ordinance No 58 , or Ordinance No
140
The City shall , to the extent permitted by law, defend the
validity and legality of the Sales and Use Tax and Ordinance No 58
and Ordinance No 140 , and all amendments thereto against all clams ,
suits and proceedings which would d_minish or impair the Pledged
Revenue secur _ty for the Bonds Furthermore , the City shall amend
from time to t_me the provisions of Ordinance No 58 and Ordinance No
140 , as necessary co prevent impairment of the Pledged Revenues as
required to meet the Debt Service Requirements of the Bonds when due
Except as permitted in th_s Ordinance , the City has not assigned
or pledged the Pledged Revenues in any manner which would dimin_sh the
security for payment of the Bonds
C Performance of Duties The City, acting by and through its
officers , or otherwise , shall faithfully and punctually perform, or
cause to be performed , all duties with respect to the Pledged Revenues
and the Project required by the Constitution and laws of the State ,
the Charter and the various ordinances , resolutions and contracts of
the City, including , without lim_tation , the proper segregation of the
proceeds of the Bonds and the Pledged Revenues and their applicat_on
from t_me to time to the respective funds provided therefor
D Contractual Obligations The City will perform all
contractual obligations undertaken by it under the contract w_th the
Purchaser , and any other agreements relating to the Bonds , the Pledged
Reverues or the Project
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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 , oeeds , conveyances , assignments , transfers , other
documents , and assurances as may be necessary or desirable for the
better assuring , conveying , grant, ng , assigning and conf_rming 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 off_cers , 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 Ordnance , to exist , to have happened ,
and to have been performed precedent to or in the issuance of the
Bonds shall exist , have happened and have been performed , and the
Bonas, together w_th all other obligat_ons of the City, shall not
contravene an} 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 w_11 keep proper books of record and
account , separate and apart from all other records and accounts ,
showing complete and correct entries of all transactions relating to
the funds established herein , and payments made from the Capital
Projects Fund
H Protection of Security The City, _ts officers , aqents and
employees , shall not take any action _n such manner or to such extent
as might prejudice the security for the payment of the Debt Service
Requ_rements of the Bonds and any other securities payable from the
Pledged Revenues according to the terms thereof No contract shall be
entered _nto nor any other action taken by which the rights of any
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Holder of any Bond or other security payable from Pledged Revenues
might be prejudicially and materially impaireo 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
Pleagea 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
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 ,
aid 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. and Reserve Accounts 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 ,
Aaditional Parity Bonds or other Parity Securities ( except the 1980
Bonds) subject to the provisions concerning surplus moneys in Section
5F ana subject to Section 9 hereof
L Aaditional Securities The City shall not hereafter issue
any bonds or securities payable from Pledged Revenues other than the
B3nas without compliance w,th the requirements with respect to the
issuance of Aaditional Parity Bonas jr additional Parity Securities
set forth herei^
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M Other Liens Other than as permittea nerein , 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 havLng custody
of any Pledged Revenues , or respons_ble for theLr 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 with the Holders of
the Bonds that it will make no use of proceeds of the Bonds at any
time during the term thereof which , if such 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 excludable from the gross income of a recip_ent 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 pleage and lien and all obligations hereunder shall thereby
be discharged and the Bonds shall no longer be deemed to be
Outstanding wLth_n the meaning of this Ordinance There shall be
deemed to be such due payment when the Cit1 has placed in escrow or in
trust with a Trust Bank located within or without the State , moneys or
Federal Secur _ties in an amount suffic_ent ( including the known
minimum yield available for such purpose from Federal Securities in
which such amount wholly or in part may be _nitially _nvested ) to meet
all Debt Service Requirements of the Bonds , as the same become due to
the final maturit_es of the Bonds or upon any Redemption Date as of
which the C_tv shall have exercised or shall have obligated itself to
exerc_se its prior redemption option by a call of Bonds for payment
then The Federal Securities shall become cue pr_or to the respect_ve
times at which the proceeds thereof shall be needed , in accordance
with a schedule established and agreed upon between the City and such
bank at the time of the creation of the escrow or trust , or the
Federal Securities shall be subject to redemot_on at the option of the
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holder thereof to assure such availability as so needed to meet such
schedule
Section 10 Default Provls�ons ano Remedies of Bondholaers
A Events of Default Each of the following events _s hereby
declared to be and to constitute an Event of Default
(1 ) Nonpayment of Principal or Premium Payment of the princ-pal
of any of the Bonds or any prior redemption prem-um 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
otherw-se ,
( 2 ) Nonpayment of Interest Payment of any installment of
interest is not made when the same becomes due and payable ,
( 3 ) Incapable to Perform The City for any reason _s , or is
rendered , incapable of fulfilling its obligations hereunder ,
( 4 ) Nonperformance of Duties The City shall have faded to
carry out and to perform ( or _n good faith to begin the performance
of) all acts and things lawfully required to be carried out or to be
performed by Lt under any contract relating to the Pledged Revenues ,
to the Project , or to all or any combinat-on thereof , or otherwise
including , wittiout limitat-on , 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 ) Appo-ntment of Rece-ver An order or decree is entered by a
court of competent jurisdiction , with the consent or acqu-escence of
the City, appo-nting a receiver or receivers for the Pledged Revenues
and any other moneys subject to the lien to secure the payment of the
Bonds , or if any order or decree , having been entered without the
consent or acqu-escence of the City, -s not vacated or d-scharged or
stayed on appeal with-n sixty ( 60 ) days after entry,
(6 ) Default of Any Prov-s_on The City makes any default 1n the
due and punctual performance of any other of the representations ,
covenants , conditions , agreements and other provisions contained in
the Bonds or _n this Orainance on its part to be performed , and _f
such default continues for sixty ( 60 ) aays after written notice ,
specifying such default ano requiring the same to be remedied , is
given to the Clty by the Holoers of 10% in principal amount of the
Bonds then Outstana_ng
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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
pr-ncipal amount of the Bonds then Outstanding , _nclud-ng , without
I -mitation , a trustee or trustees therefor , may proceed against the
City and its agents , officers and employees to protect and to enforce
the r-ghts of any Holder of Bonds or coupons under this Ordinance by
mandamus or by other suit , act-on , or special proceedings -n equity or
at law , _n any court of competent ] urisd_ction , either for the
appointment of a receiver or an operating trustee or for the specific
performance of any covenant or agreement contained here-n 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 en3oin any act or thing wh-ch may be unlawful or in
violat-on of any right of any Holder of any Bond , or to require the
City to act as if -t 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 -nst-tuted , had and ma-nta-ned for the equal benefit
of all Holders of the Bonds , any Parity Secur_t es , and the coupons
then Outstanding Any receiver or operating trustee appointed in any
proceedings to protect the rights of such Holders hereunder , the
consent to any such appointment being hereby expressly granted by the
City, may collect , rece-ve and apply all Pledged Revenues aris-ng
after the appointment of such receiver or operating trustee in the
same manner as the City itself m-ght do
C Rights and Privileges Cumulative Tne failure of any Holder
of any Outstanding Bond to proceed in any manner herein prov-ded shall
not relieve the C_ty, or any of its officers , agents or employees of
any 1-ability for failure to perform or carry out any duty, obligation
or other commitment Each right or priv_leae of any such Holder ( or
trustee thereof) _s in addition and is cumulat-ve to any other right
or pr _v_lege , and the exercise of any r-ght or pr_v-lege 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 priv-leges , rights and remedies provided or permitted _n
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this Ordinance and as otherwise proviaed or permitted by law or in
equity or by other statutes , except as provided in Section 12A and 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 expresses in such Bona and in the appurtenant coupons
D Duties Upon Defaults Upon the happening of any of the
Events of Default as provided in Section 10A hereof , the City, in
addition , Hill do and perform all proper acts on behalf of and for the
Holders of the Outstanding Bonds and coupons pertaining tnereto 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 paia into the
Principal and Interest Account , or , in the event of secirities
hereafter or heretofore issied and Outstanding during such period of
time on a parity with the Bonds , shall be applied as provided in
Section 5D hereof for all Parity Securities , including the Bonds , on
an eglitable and proratea 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
Bonas as hereinabove provides , and to that end any such Holders of
Outstanaing Bonds snall be slbrigated to all rights of the City under
any agreemen- or contract involving the Pledged Revenues entered into
prior to the effective date of this Ordinance or thereafter while any
of the Bongs are Outstanding Nothing herein requires the City to
proceed as provided herein if it determines in goon faith and without
a^y abuse of its 0iscretion that such action is likely to affect
Taterially and prejudicially the Holders of the Outstanding Bongs and
anv Outstanding Parity Securities
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I
E Evidence of Securityholders Any request , consent or other
instrument which this Ordinance may reou_re or may permit to be signed
and to be executed by the Holder of any Bonds or other securities may
be in one _nstrument or more than one instrument of similar tenor and
shall be signet or may be executed by each Holder in person or by his
attorney appointed _n 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 perta_n+ng thereto ,
shall be sufficient for any purpose of this Ordinance ( except as
otherwise herein expressly provided ) if made _n the following manner
(1 ) proof of Execution The fact and the date of the
execution oy 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 C_ty 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 ind_v_dual signing such request or other instrument
acknowledged to him the execution , duly sworn to before such
notary public or other officer , the authority of the individual or
_nd viduals 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 nd_vidual purporting to be the
president or vice-president of such corporation with the corporate
seal affixed and attested by an ind_vioual purporting to be its
secretary or an assistant secretary, and the authority of any
Person or Persons execut-ng any such instrument _n any f_duc_ary
or representative capacity may be established w_thou= further
proof if such instrument _s 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 _dent_ficat_on thereof , together with the date of his
holding the securities , may be proved by a certificate wh_cn need
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not be acknowledged or ver_fied , in form sat-sfactory to the City
Clerk , executed by a member of a financial f_rm or by an officer
of a bank or trust company, insurance company or financial
corporat_on or other depository satisfactory to the C_ty Clerk , or
by any notary publ-c or other officer authorized to take
acknowledgments of deeds to be recorded in the state _n wh-ch he
purports to act , showing at the date therein mentioned that such
Person exh_bited to such member , off-cer , notary publ_c or other
off_cer so authorized to take acknowledgments of deeds or had on
depos-t with such depository the secur _ties described -n such
certificate
but the City Clerk may nevertheless in his or her discret.on require
further or other proof in cases where he or she deems the same
adv_sable
F Warranty Upon Issuance of Bonas Any of the Bonds as here_n
provided , when duly executed and delivered for the purpose prov-ded
for in this Ordinance shall const_tute a warranty by and on behalf of
the C-ty for the benefit of each and every future Holaer of any of the
Bonds that the Bonds have been -ssued for a valuable consideration in
full conformity with law
G Immunities of Purchaser The Purchaser and any associate
thereof are under no obligat_on to any Holder of the Bonds for any
act-on that they may or may not take or in respect of anvth_ng that
they may or may not do by reason of any informat-on contained -n any
reports or other documents received by them under the provis_ons of
th-s Ordnance The :mmun-ties and exemption from 1 -ability of the
Purchaser and any assoc-ate thereof hereunder extend to their
partners , directors , successors , assigns , employees and agents
Sect-on 11 Amendment of Ord-nance
A Amendment of Ordinance Not Requ_ ring Consent of Holaers of
Bonas Tne City may, w_thout the consent of , or not_ce to , the
Holders of the Bonds , adopt such ordinances supplemental hereto ( wh_ch
amendments shall thereafter form a part hereof) for any one or more or
all of the follow_ng purposes
(1 ) To cure any ambigu_ty, or to cure , correct or supplement any
defect or _nconsistent prov+s_on conta_ned in th_s Ordinance , or to
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make any provision with respect to matters arising under this
Ord-nance 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 sub] ect 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 , w-thout receipt by it of
any additional consideration , but with the wr -tten consent of the
Holders of at least 66% -n aggregate principal amount of the Bonds
Outstanding at the t-me of the adopt-on 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 pr -ncipal of any Outstanding Bond or
any installment of interest thereon , or
( 2 ) Reducing Return A reduction in the print-pal amount of
any Pond , the rate of interest thereon , or any prior redemption
premium payable in connection therew-th , without the consent of
the Holder of the Bond , or
( 3 ) Prior Lien The creation of a lien upon or a pleage of
revenues ranking prior to the lien or to the pledge created by
this Ordinance , or
( 4 ) Modifying Amendment Terms A reduct-on of the principal
amount or percentages of Bonds , or any modification otherwise
affecting the description of Bonds , or otherwise chang _ng the
consent of the Holders of Bonds , which may be requi-ed herein for
any amendment hereto , or
( 5 ) Priorities Between Bonas The establishment of
pr_orities as between Bonds issued and Outstanding under the
prods-ons of this Ordinance , or
( 6) Partial Modif-cation Any modificat-ons otherwise
mater-ally and pre3udic-ally affecting the rights or privileges of
the Holders of less than all of the Bonds then Outstand-ng
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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 , _f
then in business and publishing , and if not , then in a newspaper of
general circulation published in the City, and _n The Daly Bona
Buyer , New York, New York , if then in business and publishing , and if
not , then in a similar financ-al newspaper published in New York, New
York, and by ma-1 w_thin thirty ( 30 ) days after such publication to
the 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 _nstrument or instruments executed by the Holders of at least
66% in aggregate princ_pal amount of the Bonds then Outstanding , which
instrument or instruments shall refer to the proposed amendatory
ordinance or other instrument described in such notice and shall
specifically consent to and approve the adoption of such ordinance or
other instrument , thereupon , but not otherwise , the C-ty Council may
adopt such amendatory ordnance or instrument authorized by Section
11B and such ordinance or instrument shall become effective If the
Holders of at least 66% in aggregate principal amount of the Bonds
then Outstand-ng , at the time of the adoption of such amendatory
ordinance or instrument , or the predecessors -n 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 nave any right or interest to object to the adoption of such
amendatory ord -nance or other instrument or to object to any of the
terms or pro-� is_ons therein conta_ned or to the operation thereof or
-4 5-
to en]oin or restrain the C_ty from taking any action pursuant to the
prov_sions 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 dur_ng such per _oa Such consent may be
revoked at any time after s_x (6 ) months from the complet_on of such
notice , by the Holder who gave such consent or by a successor _n
title , by f l _ng notice of such revocation w_th 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 _n such revocation
D Unanimous Consent Notwithstand _ng anything _n the foregoing
provisions contained , the terms and the provisions of th_s Ordinance ,
or of any ordinance or other _nstrument amendatory thereof and the
rights and the obligations of the City and of the Holders of the Bonds
and coupons thereunder may be modified or amended in any respect upon
the adopt-on by the City and upon the filing with the C_ty Clerk of an
instrument to that effect and with the consent of the Holders of all
the then Outstand_ng Bonds , such consent to be given in the manner
provided _n Section 11C hereof , and no notice to Holders of Bonds ,
ether by mailing or by publication , shall be requ_red as provided _n
Section 11B hereof , nor shall the time of consent be lim_ted except as
may be provided in such consent
E Exclus_on of City' s Bonds At the time of any consent or of
other act-on taken hereunder the City shall furnish to the C_ty Clerk
a certif_cate , upon wh-ch the City Clerk may rely, describing all
Bonds to be excluded for the purpose of consent or of other act-on or
of any calculat_on of Outstanding Bonds provided for hereunder , and ,
w_th respect to such excluded Bonds , the City shall rot be ent_tled or
redu_red with respect to such Bonds to give or obta_n 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 1n th_s Section 11 , or
Bonds Outstanding at the effective date of such act-on , may bear a
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I notation thereon by endorsement or otherwise _n 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 gate and upon presentation of his Bond for such purpose at
the pr_nc_pal office of the C_ty, suitable notation shall be made on
such Bond by the City Clerk as to any such action If the C_ty
Council so determines , new bonds so modified as _n 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 cost to sucl Holder for
Bonds then Outstanding upon surrender of such Outstanding Bonds witn
all unmatured coupons pertaining thereto
G Proof of Instruments and Bonds The fact and date of
execution of any _nstrument under the provisions of this Sect-on 11 ,
the amount and number of the Bonds held by any Person executing such
instrument , and the date of his hold.ng the same may be proved as
provided by Section 10E hereof
Section 12 D1_scellaneous
A Character of Agreement None of the covenants , agreements ,
representations , or warranties contained herein or in the Bonds , shall
ever impose or shall be construed as imposing any 1_abil_ty,
obligation , or charge against the City ( except for the special funds
pledged therefor ) or against the general credit of the C_ty payable
out of general funds or out of any funds derived from ad valorem
taxes
B No Pledge of Property The payment of the Bonas is not
secured by an encumbrance , mortgage or other pledge of property of the
City except for the Pledged Revenues of the C_ty No property of the
City, subject to such exception with respect to the Pledgea Revenues
pleaged for the payment of the Bonds , shall be 1-able to be forfeited
or taken _n payment of the Bonds
C Statute of Limitations No action or suit based upon any
Bond , coupon or other obligation of the City shall be commenced after
_t _s barred by any statute of 1_m_tations pertaining thereto Any
trLSt or fiduciary relat_onsn_p between the City and the Holder of any
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r
Bond or coupon or the obl_gee regarding any such obligat_on shall be
conclusively presumed to have been repud_ated 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 obligat_on is otherw_se
made before the exp_ration of the applicable lim_ tation per_od Any
moneys from whatever source der_ved rema_ning _n any account reserved ,
pledged or otherwise held for the payment of any such obl_gation ,
act-on or suit , the collect-on of which has been barred , shall revert
to the Sales ana Use Tax Fund , unless the C_ty Council shall otherwise
provide by ordinance of the City Nothing herein prevents the payment
of any such Bond , coupon , or other obligat_on after an action or suit
for _ts collect-on has been barred _f the City Council deems it _n the
best interests of the City or the publ_c so to do and orders such
payment to be made
D Delegated Dut_es The officers of the City are hereby
authorized and d_rected to enter into such agreements and take all
action necessary or appropriate to effectuate the prov_sions of this
Ordinance and to comply with the requirements of law, includ_ng ,
without 1_m_tation
( 1 ) Pr_nt;ng Bonds The pr _nting of the Bonds , _ncluding
the print_ng upon each such Bond of a copy of the legal opinion of
De Muth , Kemp & Backus , bond counsel , duly certified by the City
Clerk ,
( 2 ) Final Certificates The execut_on of such certificates
as may be reasonably required by the Purchaser , relating , _nter
alia , to
( a) The sign_ng of the Bonds,
( b) The tenure and ident_ty of the officials of the
C_ty,
( c) If _n accordance w_ th fact , the absence of
lit-cat-on , pend _ng or threatened , affecting the validity of
the Bonds,
(d ) The delivery of the Bonds and the receipt of the
Bond purchase pr_ce ,
( e) The exemption of interest on the Bonds from federal
_ncome tarat_on ,
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( f) The disclosure of information provided in any Bond
offer_ng brochure , Prel _minary Offic_al Statement , Off-c-al
Statement or offering circular for prospect_ve buyers of the
bonds
( 3 ) Information The assembly and d ssem_nation of
financial and other _nformat-on concerning the C_ty and the Bonds ,
( 4 ) Official Statement or Offer_ng C_rcular The
preparation of a Bond offer_ng brochure , Prelim-nary Offic_al
Statement , Off_cial Statement , or offering circular , for the use
of prospective buyers of the Bonds , including , without limitation ,
such use by the Purchaser and _ts associates , if any, and
(5 ) Bond Sale The eaecut_on of the Bonds and the sale ,
issuance , and delivery of the Bonds to the Purchaser pursuant to
the provisions of this Ordnance
E Successors Whenever here_n the City _s named or is referred
to , such provision shall be deemed to _nclude any successors of the
City, whether so expressed or not All of the covenants ,
stipulations , obligat_ons and agreements by or on behalf of and other
provis_ons for the benefit of the City contained here_n shall bind and
inure to the benefit of any off_cer , board , distr_ct , commission ,
authority, agency, instrumentality or other person or persons to whom
or to which there shall be transferred by or in accordance M_th 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 provis_ons hereof
F Rights and Immun_ties Except as herein otherwise expressly
provided , noth_ng herein expressed or _mpl ed is intended or shall be
construed to confer upon or to give to any Person , othe- than the
City, and the Holders from time to time of the Bonds and the coupons
thereunto pertaining , any right , remedy or clam under or by reason
hereof or any covenant , condition or stipulat_on hereof All the
covenants , stipulat_ons , promises and agreements herein conta_ned by
and on behalf of the City shall be for the sole ano exclus_ve benefit
of the City, and any Holder of any of the Bonds and the coupons
thereunto pertaining
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No recourse shall be had for the payment of the Debt Service
Requirements of the Bonds or for any clam based thereon or otherwise
upon th_s Ordnance authorizing their issuance or any other ord-nance
or instrument pertaining thereto , against any _ndivldual member , or
any off_cer or other agent of the City, past , present or future ,
either d-rectly or indirectly through the C_ ty, or otherwise , whether
by virtue of any constitut_on , statute or rule of law, Charter
provision or by the enforcement of any penalty or otherwise , all such
1 -ability, if any, be_ng by the acceptance of the Bonds and as a part
of the cons_derat on of their issuance specially waived and released
G Ratif-cation All action heretofore taken ( not inconsistent
with the provisions of this Ordinance) by the City or its officers ,
and otherwise by the City directed
( 1 ) Project Toward the Pro3ect , and
(2 ) Bonds Toward the sale and delivery of the Bonds for
that purpose , is hereby ratified , approved and confirmed
H Facs-mile Signatures Pursuant to the Uniform Facs_mile
Signature of Publ_c 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 signatures certified by them under
oath , using a suitable Facsimile Signature Certificate for said
purpose
I Ordnance Irrepealable This Ordinance is , and shall
const_tute , a leg_slat_ve measure of the C_ty and after any of the
Bonds are issued , this Ordnance shall constitute an _rrevocable
contract between the City and the Holder or Holders of the Bonds , and
th_s Ordinance , sub3ect to the prov_sions of Sections 9 and 11 hereof ,
if any Bonds are in fact issued , shall be and shall remain
irrepealable unt_1 the Bonds , as to all Debt Serv_ce Requirements ,
shall be fully pa-d , cancelled and discharged , as here-n prov_ded
J Repealer All ordinances , resolutions , bylaws , orders , and
other _nstru-nents , or parts thereof , _nconsistent herewith are hereby
repealed to the extent only of such incons-stency This repealer
shall not be construe❑ to revive any ord -nance , resolution , bylaws ,
order , or other instrument , or part thereof , heretofore repealea
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K Severability If any sect-on , subsection , paragraph , clause
or other provision of th_s Ordinance shall for any reason be held to
be invalid or unenforceable , the inval_dity or unenforceab-lity
thereof shall not affect any of the rema_ning sect_ons , subsections ,
paragraphs , clauses or provisions of this Ordinance
INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED PUBLISHED
ONCE IN FULL THIS 16th day of June , 1981
CITY OF FORT COLLINS , COLORADO
4v, 1
By ✓I
All,(CITY) Mayor
( SEAL)
ATTEST(
City Clerks—C�
The foregoing Ordnance will be presented for final passage at a
regular meeting of the Council to be held at Council Chambers , City
Hall , 300 LaPorte Avenue , Fort Coll_ns , Colorado , on Tuesday, the 7th
day of July, 1981 , at 6 30 p m
READ, FINALLY PASSED ON SECOND READING , AND ORDERED PUBLISHED ONCE
BY NUMBER AND TITLE ONLY this 7th day of July, 1981
CITY OF FORT gOLLINS , COLORADO
i
BY � ,
Mayor
( CITY)
(SEAL)
ATTEST
C_ty Clerk l
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