Page 1 “———~ ~—si19 WRDINAWCE NO. 12h) Ai] ORDINANCE AUTHORIZING HE BORROWING BY THE CITY OF PRICHARD, ALABAMA, OF $250,000 AND THE ISSUANCE IN EVIDENCE * THEREOF OF THE CITY'S GE!'ERAL OBLIGA- TIO! WARRANT IN THE PRINCIPAL AMOUNT OF $250,000 BE IT ORDAINED by the City Council (herein called “the Council") of the City of Prichard, Alabama (herein called the 5 1 6 1 3 4 651 736 133 31 95.903877 City), as follows: Section 1. Findines. The Council has deter- mined and hereby finds 2nd declares as follows: In or- der to provide adeauate fire protection for the City and its inhabitants, it is necessary that an additional fire station be constructed in the City and that additional fire fighting equipment, consisting of a fire truck and the appurtenances thereto, be purchased by the City for use by its fire department; it will also be advantageous | to the City and its inhabitants and in the public inter-~ est that the City acquire, provide and construct a build- ing to be used by the City and its inhabitants as a pub- lic library and for public recreational purnoses; the cost to the City of acquiring, providing and constructing the said fire station and the said library and recrea- tional buildins (herein together called “the Buildings"), as the said cost is presently estimated by the Council, and the purchase price of the said fire fighting equip- ment, will together be in excess of $250,000; the City does not have available from its current funds moneys sufficient to pay the cost of acquirins-the said fire fighting equinment and acquiring, providing, and construct-— ing the Buildings; and it is necessary, desirable, and ad- vantageous to the City that it borrow temporarily the sum 7 of $250,000 on its general faith and credit for the pur- pose of paying the said costs and that the City issue the warrant hereinafter authorized in evidence of such borrow- ing. Section 2. Authorization of Warrant. Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Section 466 of Title 27 of the Code of Alabama of 1940, and for the purpose of raising funds with which to pay costs of acquiring the said fire fishting equipment and of acquir- ing, providing and constructing the Buildings, the City is hereby authorized to borrow from The Merchants National Bank of Ilobile (herein called the 5 1 8 1 9 7 964 2080 112 28 95.827667 Bank) the principal sum of $250,000 and in evidence of the money so ‘borrowed, the City is hereby authorized to issue ana deliver to the Bank at the time of the borrowing one General Obligation Warrant (herein called the 5 1 8 1 13 5 821 2213 176 28 93.839958 warrant) of the City in the — principal amount of 5250,000. The warrant shall be drawn on the city treasurer, shall be dated May 1, 1970, shall be payable August 1, 1970, shall bear interest from the date of its delivery until its maturity at the rate of 6% per annum payable at maturity, shali be made payable to the Rank or its assigns, and shall be payable at the prin- . cipal office of tne Bank in the City of Mobile, Alabama. ry a NS Page 2 C} (~ pareve Section 3, Prepayment Privilege. The City re- serves and shall have the privilege of prepaying the war- rant at any time prior to its maturity, without penalty or premium and without any prior notice, by paying to the holder of the warrant the principal of the warrant and the interest acerued thereon to the date of such payment. Section 4, Execution and Registration. The war- rant shall be executed and the corporate seal of the City 7 shall be affixed thereto by the mayor of the City, and the eity clerk shall attest the warrant by subscribing his sig- nature thereon, The warrant shall be registered in the records maintained by the city treasurer as a claim against the City and the taxes and revenues hereinafter specially Pledged therefor. The said officers are hereby authorized and directed so to execute and attest the warrant and affix the said seal thereto and make such registration, Section 5, General Obligations; Special Pledge. The indebtedness evidenced and ordered paid by the warrant is and shall be a general obligation of the City for payment of the principal of and interest on which the full faith and credit of the City are hereby irrevocably pledged. In addi- tion thereto, and as a part of the contract whereunder the money evidencer and ordered paid by the warrant is borrowed and the said loan is made, the City does hereby agree with the holder of the warrant that the City will levy, collect and apply to payment of the principal of and the interest on such warrant, so long as any part thereof remains unpaid, and the City does hereby specially and irrevocably pledge for such payment so much as may be necessary for such payment of the proceeds from that certain special privilere or license tax of the City levied by Ordinance No. 880 of the City adopted October 3, 1960, as amended by Ordinances Nos. 977, 1007, 1182, and 1197 of the City adopted respectively on February 25 1965, March 1, 1965, February 24, 1969, and April 9, 1969, on persons, corporations and others engaging in the business of selling at retail tangible personal property and on the business of conducting or operating places of amusement, to the extent that the said tax is levied with respect to business conducted within the corporate limits of the City (the proceeds from the said tax, to the extent levied with respect to business conducted within the corporate limits of the City, being herein called the 5 1 9 6 1 8 1021 1791 96 23 93.232819 Gross 5 1 9 6 1 9 1142 1792 158 28 91.575668 Receints 5 1 9 6 1 10 1326 1792 56 24 96.609535 Tax 4 1 9 6 2 0 253 1816 1147 38 -1 5 1 9 6 2 1 253 1816 214 29 93.123505 Proceeds). ‘The pledge herein made of the Gross Receipts Tax Proceeds is subject to all lawful prior charges on the Gross Receipts Tax Proceeds. The City represents that it has no presently outstanding agreements or pledges with respect to the Gross Receipts Tax Proceeds except (a) pledges and agreements with respect to certain warrants of the City for retirement of which full provision has been-made by irrevocable trust agreements executed and delivered on May 31, 1965; (b) pledges and agreements set forth in'’the City's Ordinance Ho. 1024 adopted May 10, 1965, “whéréunder-the City's $823,000 principal amount of General Obligation Secured Refunding Warrants, Series “19655- 448, t Page 3 * a“ ed $164,000 principal amount of General Cbligation Secured Warrants, Series 1965, and its $1,467,090 principal amount of General Oblimzation Secured Refunding Warrants, Series 1LO65A, all dated May 1, 1965 (herein called “the 1965 Se- curities"),*were authorized to be issued; and (c) the pledge and agreements set forth in the City's Ordinance No. 1205 whereunder the City's $1,000,000 principal amount . of General Obligation Secured Warrants, Series 1969, dated May 1, 1969 (herein called the 5 1 5 2 3 7 872 552 117 23 95.244431 Series 5 1 5 2 3 8 1015 548 76 29 96.094933 1969 5 1 5 2 3 9 1114 545 219 31 83.109711 warrants), were authorized to be issued. The City represents and agrees that the pledge herein made of the Gross Receipts Tax Proceeds shall be and remain prior and superior to any pledges and agree- ments respecting the Gross Receipts Tax Proceeds that may hereafter be made by the City, and that any pledges and agreements that may hereafter be made by the City with re- spect to the Gross Receipts Tax Proceeds shall at all times be and remain subordinate and inferior to the pledge herein made. To that end, the City agrees that, so long as the warrant remains outstanding, the City will not issue any se- curities under the provisions of the said Ordinances Nos. 1024 and 1205 permitting the issuance of additional securi- ties on a parity, as to a pledge of the Gross Receipts Tax Proceeds, with the 1965 securities and the Series 1969 war- rants; provided, however, that the provisions of this sen- tence shall not prevent the issuance by the City of such ad- ditional parity securities for the purpose of refunding the warrant. The City further agrees that it will continue the levy of the said special previlege or license tax, at the rates and on the subjects of taxation provided for in the said Ordinance No. 880, as heretofore amended as aforesaid, so long as any of the principal of or interest on the war- rant remains unpaid. Section 5. Form of Warrant. ‘The warrant shail pe in substantially the following form: ee ne we 7 ow,