Page 1 wy + foe tht ORDINANCE NO. _ 960 as : ad ORDINANCE TO PROVIDZ #or THE ISSUANCE oW 2 “D500 PRINCIPAL AMOUNT oF : SSNSRAL OBLIGATION REFUNDING SANITARY SEWsR #aRKANTS SBATES 19634 a ~ ena SEES 10634 ? SE IT ORDAINZD by the City Couneil 2" the City or Prichard, : alabama, as follows: ; Section 1, Definitions and Use of Phrases, (a) Definitions, ‘Tie follo: and phrases, in the pee + : * sf. : &bsence of clear inplic:: sion herein Ovaisrwise, shall be given the +Ollowing “espective interpretations where used in this Ordinance; Additional 5 1 11 1 12 2 602 830 121 29 96.421677 Parity 5 1 11 1 12 3 746 844 220 29 90.496094 Securities seans any securities which the “ity may ar the time of issuance be authorized to issue and the sayment of the Principal of and interest on whier the gro: pts tax i.ay be pledged under the reserved Tleht so to go contained tion 12 “2 the open eng Ordinance, 7 . . * Callable 5 1 11 1 18 4 548 1032 180 35 92.206757 warrants means thosa 1° she reusing woprants eR ps a My ce Stated maturities in 1969 ana thereafter, City meang ‘the municival corsoration of Prienara in the State Se wie ae ny eee enemy jg ne ‘ ’ e ra . ‘ woe . wide . a 4 ’ 4 ’ . 4 ae TTS i Page 2 Councd 5 1 2 1 1 2 494 246 40 48 11.208771 i ceans me colstituted. Monta rn: endar mocih, WNewspaver" means a fournal or newspayer iat Lv sanguaye anc customarily pudiished not Less than talengar week, vy tne warrants sax revenues" means ross recei whieh ar’ leiged for warrants. she. Jenne + 668° 3 ar ebruar: English each Page 3 (0) Use of whrases. The followins usad in this ordinance +terpretations: nee ei refer to this ordi which any such wor >» hereunder, ang not solely to anv The deficitions set forth Seemed annlicable w { wv plursi. Wherever used hiireia any pro “elude both singular and plural and > 2 Oovoos a : ni now cutstanding me € n oO ~ stv ji the nt rf “ne city in the : r NG OL “as issued under the “authorise containe vhe couneil and approy-d by che na outstandiny F warrant was issued by the 2 iu. at acquire, yfovide and construct sanitary sewers wy, and (b) te refund a note of she city ut vhe e outstanding & eda loan rade 5b eds uD which were used to retires gation ineurred P ing it} construsting ganitar: Sewers the city, . warrant was signed in the nane of and behalf she city rate seal if the city was affixed thereto und attested in the ad by the laws of alabama and py ihe = Ordinance No. 915 una was issued, and epresents a valid seneral obligation insehte city against whic! there are no offsets or counterclaiis. 2 council in. aqopting the caid Ordinance N G15 at Sak PF cld on february 12% 2962, ané the action of the - lig the said res oiution, and the ietions u gw tne official seal of the city 4 &@ the suetior the city clerk i ercasi in delivering ot QQ for 4a said Q ne weed for . borrowing and issuance of rrantse Tuc on investizstion $. be 7. lL affairs of - rsault of such investiget is of the facts cvhereby, 3 ascertained nd é nereby dacelure 2ng statenents are true: outstsicin arrant vererred « mereof bsars interest 2 “1/230 per aacum. 2 aanually, and is subject yy cho ity et vt ctl face valuc ed intwrest therssn to 3 he city hac 22°09 with which to say 7,000 }Fincivel . v oF the « arrant i tions in the soney marke+ nie {> Ciual * Pperund the remain Page 4 warrant, at a subs Tesult” in a net isaving ‘tothe city of.’ f ae. gs ; RA OD VAATI Tag tantially lower interest cost to the eity that wil ‘Pes in Ly xe approximately B12,000° after p “of the costs of such refunding. In order to effect redenption of ¢ outstanding warrant, it will be necessary, and also advantageous to city, for the city to issue the refunding warrants »rovided for in Section 5 hereof. « .-.., nh , - ve a Section 4. Findings Respecting the Gross Receipts Tax and the special rund. Under the provisions of the open end ordinance the city authorized the issuance of, and did thereafter issue, certain securities uf the city that are now outstanding. By Ordinance No. $86 5f che city adopted by the council and apnroved on October 3, 1960, the city levied a special privilege and licénse cax ured by the gross proceeds of sales vr gross receipts of the businesses with ressect to which the levy was made. In the open end ordinance the eity ged the sross receipts CaX, vo the extent to which the sans was levied within the corporate limits of vne city, for the benefit of certain securities chat vere issued under she open end ordinance. In Section 12 of the open end ordinance the city reserved the vower of piedszing the gross receints tax for the benefit of additional securities of the city upon compliance with the rejulirements set out in said Section 12. The proceeds of the gross receints tax tave veen sufficient to enable the city to issue the authorized warrants and to make the parity pledge hereinafter nade for the benefit thereof uncer “he said reserved power so to do contained in said 3eetion 12 of the open end ordinance. Section 5, Authorization of the Refunding Ww. rrants. Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly the authority contained in Section 253 of Title 37 of the Code of Alabama of 1940 in order to raise the sum of $200,000 for the purpose of refunding a like principal amount of the outstanding warrant, there are hereby authorized to be issued by the city two hundred General Obligation Refunding Sanitary Sewer Warrants, Series 1963A, of the city in the ageTegate principal amount of 32°0,000, to be numbered from 1 to 40, inclusive, to be in the principal axount of $5,000 each, to be dated August 1, 1963, and to mature on August i as follows: ca Warrant Numbers Agsregate Principal (both inclusive) Year of Maturity Amount Maturing 1 to 5 1965 e 25,090 6 to id 1966 25,006 11 to 15 1967 25,096 “16 to 20 1968 21 to 25 1969 26 to 30 1970 31 to 35 1971 36 to +0 1972 The refunding warrants shall dear interest from tneir date until their respective maturities at the following ver annum rates: 2 1/8% on those maturing in the years from 1965 to 1966, inclusive; 3.30% on those maturing in the vears from 1967 to 1970, inclusive; and 3; on those . maturing in 1971 and 1972. Such interest shall »b payable on February 1, 1964 and thereafter senlannually con August 1 and ornary 1 of each vear until and at the respective maturities of the re fing warrants, and shall Page 5 of snall be vayable jpincizal offices f£ Mobile abama, > ote int br liv is ioial, ‘seal of thevcity s 1 94 eiunding warrants and the said 322 mayor shall be attested by a facsimile of printed or otherwise rep on the ref anglieuble to the revun shall of che sicnatnre of the iors and shall be attested wixewise j and the eccupons treasurer, in-the and tne gross shall be nade simul and the coupons apniieadle Titneton tO execute, attest and register the applicable therato. svered py a clain a a hy . ection 7. Pieize of the Faith ana “he ingebteiness evidenced and sreeres valid oy and shal: ne a general obligation of the eity for ~rincipal of and interest on which the full Feith and eradin oz are hersby irrevocuiiy pledged. Section & P security for apvment of che princips a ana warrants, and as a part of the contract + aT evidenzed bv the refunding warrants is oreat and irrevceably pledged, to the extent : : of and interest on the Tetuadin= war: ants at said principal and interest, that certain Bt or vilege ans tus of the city (together h the proceeds thereo*) whi : Ordinance No, 88° of the e with ressect to certain to the extent to which the said act Livities are conduct corporate limits of the city: provided, Lowever, that default shall exist in the vayment of the orinel refund ing warrants and any other securities 2f th may De secured by a vledse of the zross rec eivts pisdze thereof rude for the vanerit af the retund ‘of the said oroceeds remaining in each fi purpose may be used by the city for any, ! ? extent, if any, the proceeds of the gross recsis vax availa ourgose mar not be sufficient tc at _ vheir Tesorotive mate principal of and interest on the nn “he re naturities of said. principal and inter 23 te ssid purvose so much of the - other sources and available said. princi pal and interes t S fe Page 6 stax and itsinroceed$ ma . the % @ and’ renain®prior and superior’ to* ; ents respecting the gross renelints tax that ; uy, the city other than anv oarity pledge thereof , the bérefit of alditional parity securities that nz authority of Section 12 of the opentend oriinance, e ssecifically declares that the refunding warrants co titute additional securities of the city for the Denefit of which the city reserved in Section 12 of the open end ordinance the right to sledge the fross Teceipts tax on a parity with the pledee sale in the oper end ordinance fur the benefit of the securities issued thereunder, and that she pied-e - oF the cross receints tax mate in tris section is so made in the exercise cf the reserved power so ts do contained in said Section 12 of the open end ordinance. a 2 O82 nade nade’ for, under the rj Section 9, Reservation of Richt to Issue Additiona? o fhe : s ~ sarpyeas tre pio ne ona. Securities, The city reserves the right to 8 3 3 § 2558@ at anv time time to time additional parity securities (whether in the fora of nds, warrants, certificates, or notes) whieh the City may at the tt: such issuance be lawfully authorized to j for of the -rineipal thereof and interes*+ ft! qdoan vy wit.. the vledze ot the Bross receipts tax made in Section 11 or : end erdinanve and in Section 9 of this ordinance, and pro rata 2 perity with the like pledze that may oe made for the benefit of each series of “he adiitional parity securities, so much of the Pross Teceicts tax and “he proceeds therefron as may be necessary to pay the princival of and interest on the additional narity securities at the res: tive maturities of said zrincipal and interest; provited, that so such parity oisdze may be sade unless the conditions get out in subsections (a), (o}, and (e) of Section 12 of the cpen end orfinance are complied with. Section 10, Mainterance of the Gross Receipvts Tax, the city agrees that so long as any of the principal of or interest on the refunding warrants remains unpaid, or until provision shall fave been made for full payment of said principal and interest, the city will continue | the levy of and will collect the gross receipts tax at the rates tneredt not jess than the rates presently in effret and without duction in the nesregate annual amount of the proceeds thereof, In addition thereto, as such action should become necessary to ray at their respective maturities the principal of and interest on the refunding warrants and all other securities of the city that mizht at anv time be entitled tc share in the proceeds of the gross receipts tax on a parity with the refunding warrants, the city agrees that it will levy and collect the ErOSS reesints tax at such rate or rates as shall make availavie proceeds which, when added to the revenues of the city from other sources availabie far such pur. oses, will be sufficient to bay the reasonable axsenses of carrying on t! necessary governmental functions of the city anc to vay at their ras maturities the principal of and interest on tiie refunding warrants and all other securities of the city that might at any time be entitied t+ share in the proceeds of the BPOss Ticeipts tax on a parity with the refunding warrants. Section 11. Maintenance of Sross Receipts Tax Fund. The ecial fund called the gross receipts tax fund created in S2:2tion 1% of e open end ordinance shall be continued and maintained until both the of 2 neipal of and interest on the refunding warrants shall have been paid full, and the city will make payments into the special fund, during terme mt ty S48 od Page 7 im ne fy - each successive calendar month, of all payments required to be made! therein under the provisions of said Section th‘of the™oben end ordifianée. All provisions respecting the special fund, the depositories therefor, the trust nature thereof, and security therefor, which are contained ~ respectively in Section ey 19 and 17 of the open end ordinance, are’ hereby adopted by reference as a part of this ordinance to the extent to which they are herein applicable. ee fs Section 12. Priority of the Pledged Tax Revenues. The pledge herein made of the gross receipts tax is for the benefit of ali of the refunding warrants’, pro rata and without preference of one over another or any other securities of the city at any time entitled to share in the proceeds of the gross receipts tax on a parity of lien with the refunding warrants. While no Gefault exists in the Payment of the principal of or interest on the refunding warrants or on any other of on a parity with the refunding warrants, any part of the gross receipts tax that may not be needed to pay at their respective maturities the principal of and interest on the refunding warrants and all other securities at any time outstanding entitled to share in the gross receints tax on a parity with the refunding warrants may be used py the city for any lawful purpose. Section 13. Form of the Refunding Warrants. The refunding warrants and the counons applicable thereto and the provisions for the assignment thereof shall be in substantially the following forms, with appropriate insertions" and variations therein to conform to the provisions hereof; ) t al (Form of Warrants) No. $5,000 UNITED STATES OF AMERICA STATE OF ALABAMA en CITY OF PRICHARD GENERAL OBLIGATION REFUNDING SANITARY SEWER WARRANT SERTES 19634 ‘The City Treasurer of the City of Prichard ("the city"), a uunicipal corporation in the State of Alabama, is hereby ordered and directed to pay to Walter Jacobs, or assigns, the principal sum of FIVE THOUSAND DOLLARS oh the ist day oF August, 19___, upon surrender hereof on or after said . cate, with interest thereon from the date hereof until the maturity hereof at the rate of % per annum, payable semiannually on February 1 and sugust 1 of each year upon surrender of the appropriate interest coupons liereto attached as the same Tesvectively become due. This warrant and the interest coupons applicable hereto shall bear interest at the rate of 6% per annum after their respective maturities and shall be payable in lawful money of the United States of America at the principal office of - Page 8 . of Alabama..; in . 20 - Pega 8... weber « we gt es 5 « 2 tee? aoe a RE oe et ' ae -y Thay wo ate * Fe ty Fen at Rey - ° we ; ‘The Merchants National Bank of Mobile, in the City of Mobile in the State ae Ce hen : This warrant is one of an issue of warrants ("the warrants") in the authorized principal amount of $200,000 consisting of warrants numbered from 1 to 40, inclusive, and has been issued pursuant to the applicable provisions to the constitution and laws of Alabama, including particularly Section 253 of Title 37 of the Code of Alabama of 19k0, for the purpose of refunding an outstanding warrant of the city evidencing indebtedness incurred to acquire, provide and construct sanitary sewers in the city. , ~ : wha The indebtedness evidenced and ordered paid by this warrant is a general obligation of the city for the payment of the principal of and interest on which the full faith and credit of the city have been irrevocably pledged. In addition thereto, in the Proceedings under which the warrants were issued there was irrevocably pledged for payment of said principal and interest at their Tespective maturities so much as may be necessary for said purpose of the special privilege and license tax of the city levied by Ordinance No. 880 of the city, together with the proceeds therefrom, to the extént that the said tax is levied with respect to businesses conducted within the corporate limits of the city, which pledge is on a parity with pledges of said tax and the sroceeds thereof for the benefit of certain other bonds and warrants of the city. In said proceedings the city reserved the privilege of issuing additional securities and, upon the existence of certain events, of pledging for the benefit of said additional securities the said special tax, to the extent aforesaid, ona parity with the aforesaid pledge thereof for the warrants and the said other bonds and warrants. It is hereby certified and recited that the indebtedness ~ evidenced and ordered paid by this warrant is lawfully due without condition, abatement or offset of any descriptions that this warrant has been registered in the manner provided by law; that ali conditions, actions and things required by the constitution and laws of the State of Alabama to exist, be performed or happen srecedent to and in the issuance of this warrant do exist, have been performed, and have nappened; and that the indebtedness evidenced and ordered paid by this warrant, together with all other indebtedness of the city, was at the time the same was created and is now within every debt and other limit prescribed by the constitution and laws of the State of Alabama. This warrant is nonnegotiable but is transferable by assignment, Each taker, owner, purchaser or holder hereof, by receiving or accepting this warrant or any interest coupon applicable hereto shall consent and agree and shall be estopped to deny: (1) that title to the coupons here- unto appertaining may be transferred by delivery without the necessity of a’written assignment, and any person making such delivery shall be deemed to have transferred to the person to’whom such delivery is made all of his equities or rights in the coupons so delivered; (2) that any person in possession of any such coupon, regardless of the manner in which he shall have acquired possessior, ts authorized to represent himself as the Page 9 Pease . 22. oo. ’ absolute owner thereof and has the power and authority to transfer absolute title thereto by delivery thereof to a bona fide purchaser for value (present or antecedent) without notice of prior defenses or equities or claims of ownership enforceable against his transferor or any person in the chain of title and before the maturity thereof; and (3) that whenever and so long as this warrant may be assigned in blank by written assignment by the original payee hereof or by any subsequent assignee hereof in the chain of title to whom written assignment is made, the city may treat any person in possession of this warrant, regardless of how such possession may have been acquired and regardless of the genuineness or effectiveness of any assignment, as the absolute owner hereof for all purposes, and payment to any such person shall discharge all obligations ereunder, IN WITNESS WHERBOF, the city has caused this warrant to be executed by its mayor who has hereunto manually subscribed his signature, has caused a facsimile of its official seal to be printed or otherwise reproduced hereon, has caused the said execution and seal ta be attested by a facsimile of the signature of its city clerk printed or otherwise reproduced hereunder, has caused the annexed coupons to be executed and attested with facsimiles of the signatures of said officials printed or otherwise reproduced thereon, and has caused this warrant to be dated August 1, 1963.. CITY OF PRICHARD By i Its Mayor vase Attest: City Clerk (Form of Coupon) ; Coupon No. | On the Ist day of 19__, the City Treasurer of the City of Prichard, in the State of Alabama, is ordered and directed to pay to the bearer hereof the sum of Dollars, upon surrender of this coupon at the principal office of The Merchants National Bank of Mobile, in the City of Mobile in the state of Alabama, being six months! interest then due on the General Obligation Refunding Sanitary Sewer Warrant, Series 1963A, of the City of Prichard, Alabama, dated August 1, 1963, numbered . CITY OF PRICHARD By Its Mayor Attests Clty Clerk Page 10 OF a a Se, EEE DE SS a ee oe Page 10. . 222, we ’ (Porm of Assignment) ; For value Peceived, this warrant and tha indebtedness evidenced and ordered paid thereby are assigned, without recourse or warranties, to . ee —_ eee Section 14. Payments at Par. Hach bank at which the refunding warrants and the coupons shall at any time be payable, by acceptance of its duties as paying agent therefor, shall ve construed to have agreed thereby with the holders of the refunding warrants and the coupons that all payments made by it of the refunding warrants and the coupons shall be made in bankable funds at par without deduction for exchange, fees or expenses, The city agrees with the holders of the refunding warrants and the coupons that it will pay all charges for exchange, fees or expenses which may be made by any such bank in pahing in banzable funds any of the refunding warrants and the couvons, Section 15, Provisions Hereof Constitute Contract. The provisions of this ordinance shall constitute a contract between the city and each holder of the refunding warrants and the coupons issued hereunder. Whenever all of the refunding warrants and the coupons and the interest thereon shall have been paid in full then the obligations of the city hereunder shall thereupon cease, Section 16. Ptovisions Hereof Severable. The various provisions of this ordinance are hereby declared to be severable. In the event any provision hereof shall be held invalid by a court of competent Jurisdiction, such invalidity shail not affect any other portion of this ordinance, . Section 17. S3ale of the Refunting Warrants an Use of Proceeds fherefrom. The offer of The First National Bank of Memphis for the ... ~~ purchase of the refunding warrants from the city at a purchase price equal to $200,002.25 plus accrued interest on the refunding warrants to the date of delivery thereof, is hereby accepted and the refunding warrants are hereby sold to the said bank. The refunding warrants shall be issued in the name of Walter Jacobs, the nominee of the said bank desienated by it for that purpose, The city treasurer is hereby authorized and directed to deliver the refunding warrants to the said bank upon payment to the elity of the said purchase price, The proceeds from the sale of the refunding | warrants shall be applied as follows: (a) that part of the proceeds which represents accrued interest on the refunding warrants from their date to the date of payment therefor, together with the premium in excess of the face amount thereof included in the said purchase price, shali be deposited into the special fund in accordance with the requirements of Section 14% (a) of the open end ordinance, and shall be applied for payment of the interest which will accrue on the refunding warrants on the next interest payment date; and (b) the principal proceeds shall be used to refund and retire $200,000 principal amount of the outstanding warrant. Simultaneously with the delivery of the outstanding warrant the city shall upply moneys derived from other sources sufficient to pay the remaining $7,000 principal amount of the outstanding warrant not so refunded together with all interest that shall have then accrued on the outstanding warrant, Page 11 Page 11. 22.> whereupon the outstanding warrant shall be ca neellad by verforation and shall not again be reissued. Adonted this 16th day of December, 1963. AA, Presfdent of the] City Council Authenticated: City Clerk Approved this 16th day of December, 1963.