Page 1 ORDINANCE NO. 90% . AN ORDINANCE TO PROVIDE FOR THE ISSUANCE - .- OF $233,000 PRINCIPAL AMOUNT OF GENERAL wos « OBLIGATION .SECURED REFUNDING BONDS AND an =* -. $340,000 PRINCIPAL AMOUNT OF GENERAL OBLI- ?.- GATION SECURED REFUNDING WARRANTS, ALL FOR 4 pete . THE PURPOSE,OF REFUNDING LIKE PRINCIPAL A- MOUNTS OF OUTSTANDING SECURITIES OF THE CITY BE If ORDAINED by the City Council of the Clty of: Prichard, Alabama, as follows: . Section 1. Definitions and Use of Phrases. (a) Definitions. The following words and phrases, in the absence of clear implication herein otherwise, shall be given the following respective interpretations where used in this ordinance: : . Additional 5 1 7 1 1 4 739 965 124 31 96.379471 parity 5 1 7 1 1 5 885 959 220 31 96.048027 securities means any securities ~ which the city may at the time of issuance be authorized to issue and for the payment of the principal of and interest on which the gross receipts tax may be pledged under the reserved right so to do contained in and in accordance with the pro~- visions of Section 12 hereof. City means the municipal corporation of Prichard in the State of Alabama and includes its successors and assigns and any municipal corporation resulting from or sur- viving any consolidation or merger to which it or its succes- sors may be a panty. Council means the governing body of the city as from time to time constituted. Coupons means those coupons issued pursuant here- to and evidencing the semiannual installments of interest on the applicable securities. Fiscal 5 1 11 1 1 2 664 1639 100 36 89.957130 year means a fiscal year of the city aa beginning on any October 1 arfiending on the next ensuing September 30. Gross 5 1 12 1 1 2 646 1778 160 31 96.567802 receipts 5 1 12 1 1 3 830 1773 77 30 91.220642 tax means the special privilege or license tax of the city referred to in Section 11 hereof insofar as the same is levied with respect to businesses conducted within the corporate limits of the city. Holder when used in conjunction with any of the securities means: the person who is in possession and the apparent owner of the designated item. Interest 5 1 14 1 1 2 712 2085 147 32 96.239281 payment: 5 1 14 1 1 3 881 2080 92 30 93.475060 date means any February 1 or August 1. ‘"vionth" means a calendar month. Newspaper means a journal or newspaper printed in the English language and customarily published not less than five days during each calendar week. Page 2 “Wherever used herein any pronoun or pronouns shall be deemed to include both singular and plural and to cover ail genders. . Section 2: Findings Respecting the Outstanding Bonds. The council has caused an investigation to be made of the obligations of the city now outstanding and, as a result of such investigation, has ascertained and found and ‘does hereby declare that there are now outstanding and un- paid the following bonds of the city: (a) Those Public Improvement Bonds, Series 1953, of the city dated October 1, 1953, numbered from 631 to 720, inclusive, and aggregating $90,000 in principal amount, which were issued under the provisions of Ordinance No. 591 of the city for the purpose of making certain sanitary sewer improvements in the city as provided for in said ordinance; and ; (b) Those Public Improvement Bonds, Series 1960, of the city dated September 1, 1960, numbered from 1 to 143, inclusive, and aggregating $143,000 in principal amount, which were issued under the provisions of Ordinance No. 872 of the city for the purpose of constructing certain sanitary sewer im~ provements in the city as provided for in said ordinance, Each of the outstanding bonds was signed in the name of and behalf of the city and the corporate seal of the city was affixed thereto and attested in the manner provided by the laws of Alabama and by the said ordinances under which they were respectively;issued, and represents a valid general obligation indebtedness of the city against which thére are no offsets or counterclaims. The improvements referred to in the said Ordinance No.991 have heretofore been completed and assessments made against the properties specially bene~ fited thereby for the purpose of paying in whole or in part the costs of such improvements, but all collections under the said assessments have heretofore been expended and there are no funds on hand derived from the said assessments which _..- will be available for the payment of the outstanding bonds at their maturity. The improvements referred to in the said Ordinance No. 872 have not been completed and no assessments have been made with respect thereto and there are no funds on hand from any such assessments. The aggregate principal amount of the outstanding bonds referred to in this section is $233,000. . Section 3. Findings Respecting the Outstanding Warrants. The council has caused an investigation to be made of the obligations of the city now outstanding and, as a result of such investigation, has ascertained and found and does hereby declare that there are now outstanding and unpaid the following warrants of the city: (a) The General Obligation Street Improve- ment Refunding Warrant of the city dated May I, 1959, which was issued under the provisions of Section 3 of Ordinance No. 817 of the city adopted and approved on May 4, 1959, is now outstanding in Page 3 the principal amount of $48,000, and was issued for the purpose of refunding a General Obligation Street Improvement Warrant’ of the city dated May 1, 1956 that had been issued to raise funds to pay costs of constructing certain street improve- ments of the city; (b) The General Obligation Refunding Warrant of the city dated May 1, 1959, which was issued under the provisions of Section 4 of Ordinance No. 817 of the city adopted and approved on May 4, 1959, is now outstanding in the principal amount of $48,000, and was issued for the purpose of refunding a General Obligation Warrant of the city dated May 1, 1956 that had been issued to raise funds to pay costs of making certain. street and sidewalk improvements ; (c) The General Obligation Capital Outlay Warrant of the city dated May 1, 1959, which, was issued under the provisions of Section 5 of Ordi- nance No. 817 of the city, is now outstanding in the principal amount of $144,000, and was issued for the purpose of raising funds to pay costs of a fire truck, the construction of a new fire station, the purchase of new fire fighting equipment, the remodeling of the existing city jail, resurfacing of existing streets, and the construction of ad- ditional sidewalks all in and for the city; and (a) The General Obligation Refunding Warrant of the city dated December 1, 1960, which was issued under the provisions of Ordinance No. 886, is now outstanding in the principal amount of $100,000, and was issued for the purpose of re- funding a note of the city issued to pay obli- + gations of the city necessary to carry on its “~~ essential governmental functions. Each of the outstanding warrants was signed in the name of and behalf of the city and the corporate seal of the city was affixed thereto and attested in the manner provided by the laws of Alabama and by the said respective ordinance under _ - which it was issued, and represents a valid general obli- — y gation indebtedness of the city against which there are no offsets or counterclaims. The aggregate principal amount of the outstanding warrants referred to in this section is , $340,000. Section 4. Findings Respecting the Desirability of Refunding the Outstanding Securities. AS a result of the Investigations referred to in Sections 2 and 3 of this Ordinance and the further investigation the council has eaused to be made for the purpose of ascertaining the needs of the city for the next few years, the council has ascertained and found that the principal amount of bonds and warrants of the city maturing in the next few years is so great in the aggregate that in order to pay the future maturities there- of the city would have to curtail certain functions and im~ provements which the council deems necessary for the proper -he Page 4 ran anne nate meant Me uAOD 42 conduct of the ‘affairs of ithe eity and for the rendition of the essential public services of the city. The coun- cil is therefore of the opinion that it would be desir~ able to refund the outstanding securities by the issuance respectively of the refunding bonds and the refunding warrants hereinafter authorized, Section 5. “Authorization of Refunding Bonds. Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Sectiors 287 and 264 of Title 37 of the Code of Alabama of 1940, as amended, and for the purpose of refunding the outstanding bonds of like principal amount, there are hereby authorized to be issued by the city, two hundred thirty three General Obligation Secured Refunding Bonds, Series 1961, of the city in the aggregate principal amount of $233,000, which shall be numbered consecutively from 1 to 233, inclusive, shall be in the denomination of $1,000 each, shall be dated August 1, 1961, and shall meture on August 1 as follows: Refunding Bond Numbers 5 1 10 1 1 3 1046 1063 181 30 91.961273 Aggregate 5 1 10 1 1 4 1251 1062 180 30 95.373085 Principal 4 1 10 1 2 0 316 1092 1165 39 -1 5 1 10 1 2 1 316 1094 97 37 92.248146 (both 5 1 10 1 2 2 435 1092 198 37 44.884205 inclisive) 5 1 10 1 2 3 677 1097 328 33 82.693146 Year. 5 1 10 1 2 4 785 1088 33 47 90.326004 of 5 1 10 1 2 5 832 1097 173 33 90.326004 ‘Maturity 5 1 10 1 2 6 1087 1096 121 26 95.954346 Amount 5 1 10 1 2 7 1230 1096 163 34 95.786713 Maturing 5 1 10 1 2 8 1472 1123 9 6 73.289429 . 4 1 10 1 3 0 376 1160 896 35 -1 5 1 10 1 3 1 376 1166 15 24 89.766167 1 5 1 10 1 3 2 414 1166 39 24 89.766167 to 5 1 10 1 3 3 477 1166 39 25 94.803162 10 5 1 10 1 3 4 610 1166 4 9 57.911201 ' 5 1 10 1 3 5 784 1161 80 33 96.680939 1964 5 1 10 1 3 6 1111 1160 17 35 92.991867 $ 5 1 10 1 3 7 1152 1165 120 30 96.178001 10,000 4 1 10 1 4 0 356 1195 916 34 -1 5 1 10 1 4 1 356 1201 35 24 93.892166 11 5 1 10 1 4 2 414 1200 39 25 93.892166 to 5 1 10 1 4 3 477 1201 39 24 95.481171 20 5 1 10 1 4 4 785 1195 77 34 96.223076 1965 5 1 10 1 4 5 1151 1199 121 30 95.651619 10,000 4 1 10 1 5 0 356 1229 916 34 -1 5 1 10 1 5 1 356 1235 36 24 95.063835 21 5 1 10 1 5 2 415 1234 38 25 95.063835 to 5 1 10 1 5 3 476 1235 40 28 96.241669 30 5 1 10 1 5 4 611 1237 23 24 0.000000 u 5 1 10 1 5 5 785 1229 79 33 96.773018 1966 5 1 10 1 5 6 1151 1233 121 30 95.229645 10,000 4 1 10 1 6 0 354 1263 918 34 -1 5 1 10 1 6 1 354 1268 38 29 95.452599 31 5 1 10 1 6 2 415 1268 38 24 92.543541 to 5 1 10 1 6 3 478 1265 38 27 88.188271 4o 5 1 10 1 6 4 610 1273 4 3 15.055504 . 5 1 10 1 6 5 785 1263 77 33 96.512978 1967 5 1 10 1 6 6 1152 1267 120 30 96.237251 10,000 4 1 10 1 7 0 356 1297 916 35 -1 5 1 10 1 7 1 356 1298 36 29 94.338737 41 5 1 10 1 7 2 415 1302 39 25 94.312607 to 5 1 10 1 7 3 477 1302 40 29 96.650253 50 5 1 10 1 7 4 785 1297 78 34 95.915047 1968 5 1 10 1 7 5 1152 1301 120 31 95.431793 10,000 4 1 10 1 8 0 356 1330 917 40 -1 5 1 10 1 8 1 356 1336 36 30 94.515732 51 5 1 10 1 8 2 415 1335 38 26 95.834152 to 5 1 10 1 8 3 479 1331 38 30 95.728142 60 5 1 10 1 8 4 641 1363 3 7 21.354942 ; 5 1 10 1 8 5 785 1330 78 35 96.850975 1969 5 1 10 1 8 6 1152 1335 121 31 95.989769 10,000 4 1 10 1 9 0 357 1365 1029 35 -1 5 1 10 1 9 1 357 1365 35 30 93.128830 61 5 1 10 1 9 2 416 1370 38 25 92.648750 to 5 1 10 1 9 3 498 1370 19 25 73.388702 7O 5 1 10 1 9 4 640 1372 5 15 1.372879 : 5 1 10 1 9 5 785 1369 79 30 96.591125 1970 5 1 10 1 9 6 1152 1369 120 31 94.507645 10,000 5 1 10 1 9 7 1352 1387 34 8 30.721626 tse 4 1 10 1 10 0 377 1403 896 36 -1 5 1 10 1 10 1 377 1404 16 25 93.521698 1 5 1 10 1 10 2 415 1403 38 26 93.521698 to 5 1 10 1 10 3 498 1404 18 25 93.627258 80 5 1 10 1 10 4 616 1434 3 5 10.238098 ; 5 1 10 1 10 5 785 1403 77 30 95.909447 1971 5 1 10 1 10 6 1152 1403 121 30 95.287766 10,000 4 1 10 1 11 0 377 1436 896 31 -1 5 1 10 1 11 1 377 1437 16 25 92.120987 1 5 1 10 1 11 2 415 1436 38 26 92.842331 to 5 1 10 1 11 3 476 1437 39 29 95.176399 95 5 1 10 1 11 4 785 1436 79 30 96.767159 1972 5 1 10 1 11 5 1152 1436 121 31 92.485809 15,000 4 1 10 1 12 0 355 1466 918 35 -1 5 1 10 1 12 1 355 1466 40 34 95.784752 96 5 1 10 1 12 2 416 1471 38 25 96.336105 to 5 1 10 1 12 3 478 1471 59 25 95.547752 110 5 1 10 1 12 4 786 1470 77 30 85.021187 1973 5 1 10 1 12 5 1153 1471 120 30 94.211952 15,000 4 1 10 1 13 0 336 1501 937 34 -1 5 1 10 1 13 1 336 1506 56 24 92.049683 111 5 1 10 1 13 2 416 1505 38 25 95.172081 to 5 1 10 1 13 3 478 1506 82 29 93.832146 125. 5 1 10 1 13 4 785 1501 79 34 96.367554 1974 5 1 10 1 13 5 1152 1505 121 30 88.350792 15,000 4 1 10 1 14 0 336 1535 937 34 -1 5 1 10 1 14 1 336 1535 59 29 96.703133 126 5 1 10 1 14 2 416 1539 38 24 93.907280 to 5 1 10 1 14 3 478 1535 59 29 95.879776 140 5 1 10 1 14 4 786 1539 77 29 96.494476 1975 5 1 10 1 14 5 974 1564 3 3 22.564232 . 5 1 10 1 14 6 1152 1539 121 30 90.540604 15,000 4 1 10 1 15 0 336 1568 937 36 -1 5 1 10 1 15 1 336 1568 57 36 94.589668 141 5 1 10 1 15 2 416 1572 38 24 95.457680 to 5 1 10 1 15 3 479 1573 57 28 96.427498 155 5 1 10 1 15 4 786 1568 79 33 96.137817 1976 5 1 10 1 15 5 1153 1573 120 30 87.221954 15,000 4 1 10 1 16 0 336 1602 937 35 -1 5 1 10 1 16 1 336 1602 60 33 95.179680 156 5 1 10 1 16 2 415 1606 39 24 95.179680 to 5 1 10 1 16 3 478 1607 60 28 95.658752 170 5 1 10 1 16 4 786 1607 77 28 84.859497 1977 5 1 10 1 16 5 1153 1606 120 31 35.944351 15,000 4 1 10 1 17 0 336 1636 1249 34 -1 5 1 10 1 17 1 336 1641 57 27 49.648495 17 5 1 10 1 17 2 416 1640 38 24 93.941406 to 5 1 10 1 17 3 479 1636 57 33 95.392670 185 5 1 10 1 17 4 786 1636 78 33 96.542664 1978 5 1 10 1 17 5 1153 1641 120 29 37.216873 15,000 5 1 10 1 17 6 1520 1637 65 21 45.414688 a 4 1 10 1 18 0 336 1670 937 35 -1 5 1 10 1 18 1 336 1670 60 28 95.574341 186 5 1 10 1 18 2 415 1674 39 25 95.911575 to 5 1 10 1 18 3 478 1675 59 24 96.741898 200 5 1 10 1 18 4 786 1674 77 29 96.272812 1979 5 1 10 1 18 5 1153 1675 120 30 68.034508 15,000 4 1 10 1 19 0 336 1704 937 35 -1 5 1 10 1 19 1 336 1708 57 25 96.091354 201 5 1 10 1 19 2 416 1708 38 25 96.091354 to 5 1 10 1 19 3 478 1709 58 28 94.260078 215 5 1 10 1 19 4 786 1704 79 33 96.709785 1980 5 1 10 1 19 5 1153 1709 120 30 93.181473 15,000 4 1 10 1 20 0 336 1738 937 34 -1 5 1 10 1 20 1 336 1738 60 28 96.354027 216 5 1 10 1 20 2 416 1742 38 24 96.354027 to 5 1 10 1 20 3 479 1742 57 29 96.637589 233 5 1 10 1 20 4 786 1738 77 32 92.172173 1981 5 1 10 1 20 5 885 1748 4 4 82.223694 - 5 1 10 1 20 6 1072 1754 3 4 8.559120 . 5 1 10 1 20 7 1153 1738 120 34 92.623909 18,000 2 1 11 0 0 0 313 1844 1120 94 -1 3 1 11 1 0 0 313 1844 1120 94 -1 4 1 11 1 1 0 313 1844 1120 31 -1 5 1 11 1 1 1 313 1846 61 23 96.416428 The 5 1 11 1 1 2 397 1845 181 30 95.930389 refunding 5 1 11 1 1 3 599 1845 101 30 96.427048 bonds 5 1 11 1 1 4 725 1845 98 24 94.477104 shall 5 1 11 1 1 5 845 1845 81 24 94.477104 bear 5 1 11 1 1 6 950 1844 158 26 96.066566 interest 5 1 11 1 1 7 1132 1844 82 31 95.664375 from 5 1 11 1 1 8 1233 1844 101 25 95.664375 their 5 1 11 1 1 9 1356 1844 77 25 96.556839 date 4 1 11 1 2 0 314 1878 1101 31 -1 5 1 11 1 2 1 314 1879 99 24 94.807236 until 5 1 11 1 2 2 438 1878 99 25 96.105820 their 5 1 11 1 2 3 560 1879 201 30 95.975716 respective 5 1 11 1 2 4 784 1878 202 30 95.799088 maturities 5 1 11 1 2 5 1009 1878 37 24 96.349861 at 5 1 11 1 2 6 1070 1878 58 25 96.460670 the 5 1 11 1 2 7 1152 1878 183 30 96.016869 following 5 1 11 1 2 8 1357 1884 58 24 97.002998 per 4 1 11 1 3 0 315 1913 238 25 -1 5 1 11 1 3 1 315 1919 102 18 96.034264 annum 5 1 11 1 3 2 437 1913 116 25 76.744156 rates: 2 1 12 0 0 0 541 1940 714 123 -1 3 1 12 1 0 0 541 1940 714 123 -1 4 1 12 1 1 0 541 1940 632 45 -1 5 1 12 1 1 1 541 1946 43 37 83.128723 4% 5 1 12 1 1 2 603 1953 203 26 95.492378 maturities 5 1 12 1 1 3 828 1948 83 36 72.560822 1964 5 1 12 1 1 4 931 1940 143 45 96.227325 through 5 1 12 1 1 5 1092 1954 81 31 95.200104 1971 4 1 12 1 2 0 541 1980 714 40 -1 5 1 12 1 2 1 541 1980 125 37 0.000000 41/8% 5 1 12 1 2 2 684 1987 202 27 96.279213 maturities 5 1 12 1 2 3 910 1987 79 32 96.279213 1972 5 1 12 1 2 4 1012 1988 143 32 96.056427 through 5 1 12 1 2 5 1173 1985 82 34 74.733795 1975 4 1 12 1 3 0 541 2015 714 48 -1 5 1 12 1 3 1 541 2015 61 32 23.239716 Hel 5 1 12 1 3 2 621 2015 45 48 1.261353 4% 5 1 12 1 3 3 684 2021 203 27 96.058403 maturities 5 1 12 1 3 4 910 2019 80 34 96.058403 1976 5 1 12 1 3 5 1012 2022 143 32 95.448357 through 5 1 12 1 3 6 1173 2019 82 34 96.660057 1981 2 1 13 0 0 0 315 2083 1160 132 -1 3 1 13 1 0 0 315 2083 1160 132 -1 4 1 13 1 1 0 315 2083 1160 30 -1 5 1 13 1 1 1 315 2083 81 25 95.255608 Such 5 1 13 1 1 2 418 2083 159 25 95.255608 interest 5 1 13 1 1 3 603 2083 97 25 95.550896 shall 5 1 13 1 1 4 722 2083 39 25 96.046158 be 5 1 13 1 1 5 785 2083 140 30 95.913818 payable 5 1 13 1 1 6 950 2083 242 30 96.012489 semiannually 5 1 13 1 1 7 1215 2089 36 19 96.714943 on 5 1 13 1 1 8 1272 2083 163 30 96.096008 February 5 1 13 1 1 9 1458 2084 17 23 93.799713 1 4 1 13 1 2 0 315 2117 1119 31 -1 5 1 13 1 2 1 315 2117 60 25 96.262497 and 5 1 13 1 2 2 395 2117 121 31 82.079773 August 5 1 13 1 2 3 541 2118 16 24 94.921661 1 5 1 13 1 2 4 581 2118 38 24 95.673065 of 5 1 13 1 2 5 642 2118 80 24 96.373779 each 5 1 13 1 2 6 743 2123 80 24 95.805725 year 5 1 13 1 2 7 845 2117 100 25 95.760986 until 5 1 13 1 2 8 968 2117 60 24 95.760986 and 5 1 13 1 2 9 1050 2117 37 25 96.292770 at 5 1 13 1 2 10 1111 2117 100 25 93.173470 their 5 1 13 1 2 11 1234 2117 200 30 82.510925 réspective 4 1 13 1 3 0 315 2151 1099 31 -1 5 1 13 1 3 1 315 2151 202 25 95.439949 maturities 5 1 13 1 3 2 540 2151 59 25 95.853668 and 5 1 13 1 3 3 624 2152 96 24 94.794601 shall 5 1 13 1 3 4 743 2152 39 24 96.696846 be 5 1 13 1 3 5 805 2151 183 25 96.193283 evidenced 5 1 13 1 3 6 1008 2152 41 30 96.782822 by 5 1 13 1 3 7 1073 2151 157 31 96.682281 separate 5 1 13 1 3 8 1256 2151 158 25 96.051468 interest 4 1 13 1 4 0 316 2185 1097 30 -1 5 1 13 1 4 1 316 2191 139 24 96.107574 coupons 5 1 13 1 4 2 476 2185 164 24 96.531937 attached 5 1 13 1 4 3 662 2185 156 26 91.168251 thereto, 5 1 13 1 4 4 864 2185 61 24 95.736015 The 5 1 13 1 4 5 948 2186 183 29 96.268478 refunding 5 1 13 1 4 6 1151 2185 100 24 96.116661 bonds 5 1 13 1 4 7 1274 2185 60 24 95.397736 and 5 1 13 1 4 8 1356 2185 57 24 95.397736 the 2 1 14 0 0 0 3 2808 1678 5 -1 3 1 14 1 0 0 3 2808 1678 5 -1 4 1 14 1 1 0 3 2808 1678 5 -1 5 1 14 1 1 1 3 2808 1678 5 95.000000 Page 5 Eel | | coupons applicable thereto shall>beay interest at the rate of 6% per annum after their respective maturities - until paid, and shall be payable in favful money of the United States of America at the principal office of The Merchants National Bank of Mobile, in the City of Mobile in the State of Alabama. Section 6, Authorization of the Refunding Warrants, Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Section 253 of Title 37 of the Code of Ala- pama of 1940, and for the purpose of refunding the out- standing warrants of like principal amount, there are hereby authorized to be issued by the city three hundred forty (340) General Obligation Secured Refunding Warrants, Series 1961, of the city in the aggregate principal amount of $340,000, numbered from 1 to 340, inclusive,*in the _principal amount of $1,000 each, all of which shall be dated August 1, 1961, and shall mature on August 1 as follows: Refunding Warrant Numbers Aggregate Principal (both inclusive) Year of Maturity Amount Maturing 1 to 20 1971 $ 20,000 21 to 40 , ° 1972 20,000 Ki to 65 . 1973 _ 25,000 66 to 90 1974 25,000 Pa 91 to 125 1975 35,000 ‘ 126 to 160: 1976 35,000 , 161 to 195 ‘ 197 35,000 196 to 230 . 197 35,000 231 to 265 1979 35,000 266 to 300 1980 35,000 301 to 340 1981 40,000 The refunding warrants shall bear interest from their date until their respective maturities at the following per ee annum rates: , Tee mateeattee maturities 1972 through 197’ 41/48 maturities 1976 through 198% Such interest shall be payable semiannually on February 1 and August 1 of each year until and at their respective maturities and shall be evidenced by separate interest coupons attached thereto, The refunding warrants and the coupons applicable thereto shall bear interest at the rate of 6% per annum after their respective maturities until paid, and shall be payable in lawful money of the - United States of America at the principal office of The Merchants National Bank of Mobile in the City of Mobile, in the State of Alabama. . Page 6 « Section 7. Optional Redemption Provisions. While the city is not in defauit in the payment of the principal of or the interest on any of the refunding se- curities, those of the refunding bonds and those of the refunding warrants having stated maturities in 1972 and thereafter shall separately be subject to redemption and payment by the city at its option on any interest payment date on or after August 1, 1971, after prior published notice given in the manner hereinafter provided, at a redemption price for each of the redeemable securities equal to its face value plus accrued interest thereon to the redemption date and a premium equal to twelve months! interest thereon, Any such redemption may be effected for refunding bonds without the necessity of redeeming any of the refunding warrants, and any such redemption may be effected for refunding warrants with~ out the necessity of redeeming any of the refunding bonds. Any such redemption may be as a whole or in part of the applicable issue, and if in part it shall be accomplished in inverse numerical order of those of the applicable issue then subject to redemption and at the time outstand- ing. Any such redemption shall be effected in the follow- ing manners (a) The council shall by resolution call for redemption on a stated date when they. are by their terms subject to redemption redeemable se- curities (either refunding bonds or refunding warrants) bearing stated numbers and shall fur- ther find and declare in such resolution that the city is not at the time in default in the payment of the principal of or interest on any of the refunding securities, ass (b) The city shall cause to be published in a newspaper published in the city of Birming- ham, Alabama, a notice stating the following: that redeemable securities bearing stated num- bers (which shall be the numbers specified in the resolution required in Section 7(a) hereof) have been called for redemption and will become due and payable on a specified redemption date ‘(which shall be the redemption date provided for such redemption in the resolution required in Section 7(a) hereof) and at the redemption price (which shall be Specified in the said notice), and that all interest thereon will cease after the redemption date. Such notice shall be pub- lished at least one time, not less than thirty days prior to the redemption date in a news- paper published in Birmingham, Alabama (c) On or prior to the redemption date the city will make available at the bank at which the refunding securities are payable the total redemption price of the redeemable securities so Page 7 -ealled for redemption, and shall further ~~ furnish to said bank a certified copy of the resolution required in Section 7({a) hereof and an appropriate affidavit showing compli- ance with the requirements of Section 7(b) hereof. Upon compliance with the foregoing requirements, and if on the redemption date the city is not then in default in payment of the principal of or interest on any of the refunding securities, the redeemable securities so called for redemption shail become due and payable on the redemp- tion date at the place at which the same shall be payable and at the redemption price specified in such notice, anything in the redeemable securities to the contrary notwithstanding, and interest shall thereafter cease to acerue on the redeemable securities so called, Neither the bank at which the redeemable securities shall be pay- able nor the city shall be required to pay any coupon maturing on the redemption date which is applicable to any redeemable security so called for redemption unless the redeemable security to which such coupon is applic~ able is also presented for payment; provided, that in the event such bank should pay any such coupon without payment of the applicable redeemable security it shall not be liable to the holder of such applicable redeem- able security or to the city or to anyone whomsoever; and provided further, that such bank shall pay such coupon out of the moneys supplied to it for such purpose by the city if the holder thereof shall present evidence satisfactory to such bank that such holder is the owner of the coupon so presented and is not the owner of the redeemable security to which such coupon is applicable, Section 8, Execution of the Refunding Bonds. The refunding bonds shall be executed in behaif of the city by the mayor whose signature shall be manually sub- seribed thereon, and by a facsimile of the signature of the city clerk imprinted thereon, A facsimile of the seal of the city shall be printed on each of the refund- ; ing bonds and the facsimile of the signature of the city - elerk imprinted thereon shall constitute attestation of said seal. The coupons applicable to the refunding bonds shall be executed with facsimiles of the signatures of the said mayor and city clerk imprinted thereon, The said facsimiles of the signatures of said officers shall be valid in all respects as if the said officers had signed said instruments in person, Section 9, Execution of the Refunding Warrants, The refunding warrants shall be executed in behalf of the city by the mayor whose signature shall be manually sub- scribed thereon. A facsimile of the official seal of the city shall be imprinted on the refunding warrants and the said seal and the said execution by the mayor shall be ate bested by a facsimilé of the signature of.the city’ clerk im- printed ‘on the refunding warrants, The coupons applicable to the: refunding warrants-shall be executed with a facsimile of Page 8 the signature of the, mayor imprinted thereon, and shall , be attested with a facsimile of the signature of the city clerk likewise imprinted thereon. The refunding warrants and the coupons applicable thereto shall be registered by the city treasurer, in the cecords maintained by her, as a claim against the city and the gross receipts tax here- inafter referred to, which registration shall be made simultaneously with respect te all the refunding warrants and the coupons applicable thereto. Said officers are hereby directed so to execute, attest and register the refunding warrants and the coupons applicable thereto, Section 10. Pledge of the Faith and Credit of the City. The indebtedness evidenced and ordered paid by the refunding securities is and shall be a general ob- ligation of the city for the payment of the principal of and interest on which the full faith and credit of the eity are hereby irrevocably pledged. . Section 11, Pledge of the Gross Receipts Tax. As additional security for payment of the principal of and interest on the refunding securities, and as a part of the contract whereunder the obligation evidenced by the refunding securities is created, there is hereby specially and irrevocably pledged, to the extent neces~- sary to pay the principal of and interest on the refund- ing securities at the respective maturities of said principal and interest, that certain special privilege and license tax of the city (together with the proceeds thereof) which was levied by Ordinance No. 880 of the city with respect to certain business activities, to the extent to which the same was levied within the corporate limits of the city; provided however, that so long as no default shall exist in the payment of the principal of or interest on the refunding securities the proceeds from the gross receipts tax shall be used to pay the said prin- cipal of and interest on the refunding securities at the respective maturities of said principal and interest, and the balance of the said proceeds remaining in each fiscal year of the city while no such default exists may be used by the city for any lawful purpose. To whatever extent, if any, the proceeds of the gross re- ceipts tax available for said purpose may not be suffi- cient to pay the principal of and interest on the refund- ing securities at the respective maturities of said principal and interest, the city agrees to use for said purpose so much of the general revenues of the city de- rived from other sources and available for said purpose as may be necessary to pay said principal and interest at their respective maturities. The city represents and warrants that upon delivery of the refunding securities as herein authorized there will be no outstanding agree- ment or pledge with respect to the gross receipts tax other than the agreements and pledge herein contained, that the said agreements and pledge herein made respect~ ing the gross receipts tax will constitute the first pledge thereof and of its proceeds, and that the agree- ments and pledge respecting the gross receipts tax and Page 9 of its proceeds herein made shall be and remain prior r and superior to any and all pledges and agreements re- specting the same that may hereafter be made’ by the city other than any parity pledge thereof which may be made for the benefit of additional parity securities which may be issued under the authority of Section 12 hereof. Section 12. Reservation of Right to Issue Ad- ditional Parity Securities. The city reserves the right Go issue at any time and from time to time additional se- curities of the city (whether in the form of bonds, war- rants, certificates, or notes) which the city may at the time of such issuance be lawfully authorized te issue, and to pledge for payment of the principal thereof and interest thereon, pro rata and on a parity with the pledge of the gross receipts tax made in Section 11 of this ordinance and pro rata and on a parity with the like pledge that may be made for the benefit of each series of the parity lien securities, so much of the gross re~ ceipts tax and the proceeds therefrom as may be necessary to pay the principal of and interest on the additional parity securities at the respective maturities of said principal and interest; provided, that in order to make such parity pledge the following conditions must exist and be complied withs (a) One-third of the aggregate proceeds received by the city. from the gross. receipts tax . during the thirty-six (36) calendar months next preceding the month in which such additional parity securities are delivered to the purchaser thereof shall be not less than two times the maximum annual principal and interest require=- ments during the then current or any subsequent fiscal year of the city with respect to the re-~ funding securities and any additional parity se- curities which shall be outstanding inmediately following the issuance of the additional parity securities so proposed to be issued. The amount of such aggregate proceeds and the amount of such maximum annual principal and interest re- . quirements and the year in which the same will be payable shali be conclusively established by a certificate signed by the city clerk and trea- surer and by the mayor certifying thereto and stating that the figures set forth in such cer- tificate were taken from the official records of the city containing the information set forth in said certificate, A copy of such certificate shall be filed in the office of the ‘clerk of the elty, : (b) Each issue of the additional parity securities shall be given a different serles designation, shall be dated the August 1 next preceding the date of issuance (unless the date of issuance of any series is on an August 1, in -10- Page 10 which event that series shall be dated the date of issuance), shall be made to mature on August 1 in the respéctive years in which the additional parity securities of that series shall mature, and shall bear interest payable - -gemiannually on.Febriary 1 -dand August 1. Any series may have provisions for redemption prior to maturity and such other provisions not in conflict with this ordinance as the council shall determine in the proceedings in which the additional parity securities of that series are authorized to be issued, (c) Contemporaneously with the issu~ ance of any additional parity securities the wv @ity will make the payments into the special fund required to be made with respect thereto in Sections 14(b) and 14(d) hereof, Section 13. Maintenance of the Gross Receipts Tax. The city agrees that so long as any of the princi- pal of or interest on the refunding securities remains unpaid, or until provision shall have 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 thereof not less than the rates presently in effect and without reduction in the aggregate annual amount of the proceeds thereof. In addition thereto, as such action should become necessary to pay the principal of and interest on the refunding securities and any addi- tional parity securities that might hereafter be issued under the provision of Section 12 hereof at the respec- tive maturities of the principal thereof and the interest thereon, the city agrees that it will levy and collect the gross receipts tax at such rate or rates as shall make available proceeds which, when added to the revenues of the city from other sources available for such pur- poses, will be sufficient to pay the reasoneple expenses of carrying on the necessary governmental functions of the city and to pay the principal of and interest on the refunding securities and any additional parity se- eurities at the respective maturities of said principal and interest, Section 14, Special Gross Receipts Tax Fund. There is hereby created a special fund, the full name of which shall be Gross 5 1 6 1 1 5 765 1850 162 29 96.392982 Receipts 5 1 6 1 1 6 947 1849 61 24 96.536293 Tax 5 1 6 1 1 7 1028 1844 118 33 96.051277 Fund, for the purpose of providing for the payment of the principal of and in- terest on the refunding securities, and any additional parity securities that may hereafter be issued, at the respective maturities of said principal and interest. The special fund shall be maintained until poth the prin- cipal of and interest on the refunding securities and any additional parity securities shail have been paid in full, The city will pay into the special fund during each successive calendar month the following: (a) There shall be paid into the special fund, simultaneously with the issuance of the -li- Page 11 refunding securities and out of the proceeds de~ rived from the-sale thereof, that portion of said ; proceeds which may be referable to the accrued interest and any premium received by the city on any such sale; : (b>) Simultaneously with the issuance of the additional parity securities of any series, the city will pay into the special fund, out of _the procéeds..derived from the sale of. the’ addi- tional parity securities of such series, that portion of said proceeds which may be referable to accrued interest and any premium received by the city on any such sales; (c) Prior to the last secular day of August 1961, and prior to the last secular day of each successive month thereafter until the principal of and interest on the refunding securi- ties and any additional parity securities which may be issued shall have been paid in full, the city will pay into the special fund, out of the proceeds from the gross receipts tax, an amount equal to 1/6th of the semiannual installment of interest on the then next succeeding interest payment date with respect to the refunding se- curities and any additional parity securities at the time outstanding, plus 1/12th of the annual installment of principal maturing dur~ ing the then next ensuing 12 months on the refunding securities and any additional parity securities then outstanding; provided, that there may be credited one time on the amount provided tb be paid into the special fund under the provisions of this subsection (b) the amount which was paid therein under the pro- visions of Section 14(a) hereof; provided fur- ther, that there also may be further credited one time on the amount required to be paid into the special fund under the provisions of this subsection, as and when any series of additional parity securities are issued, _the amount required to be paid into the special fund under the provisions of Section 14(b) hereof with respect to the additional parity securities of that series; (a4) Simultaneously with the issuance of any series of the additional parity securities the city will pay into the special fund such additional sum as, when added to (1) the sum that will be on deposit in the special fund im- mediately following such issuance, and (2) the subsequent payments that are required in this Section 14 to be paid into the special fund between the date of issuance of such series and the next succeeding interest payment date, will make available on the then next succeed~ ing interest payment date an amount equal to -12- Page 12 the interest which will mature on that date on the refunding securities and on the addi- tional parity securities at the time outstand- ing, and will also make available on the then next succeeding August 1 an amount equal to any principal which will mature on that August 1 on the refunding securities and the additional parity securities at thé time outstanding; and {e) In the event the moneys paid into the special fund for any calendar month shall be less than the amount required by the provisions of this section to be paid therein during such month, then prior to the last secular day of the next succeeding month and prior to the last day of each calendar month thereafter, until such time as the payments into the special fund are’ current, the city will pay into the special fund all receipts by the city from the gross receipts tax. The city will not in any event permit a default to occur in the payments herein provided to be made into the special fund, and if the proceeds from the gross receipts tax should at any time be insufficient to make the payments provided herein to be made into the special fund, the city will use moneys from its general funds for that purpose to such extent as may be necessary to prevent a default in the payments into the special fund. All moneys paid into the special fund shall be used only for payment of the principal of and interest on the refund- ing securities and the additional parity securities which may be issued upon or after the respective maturities of such principal and interest; provided, that if at the final maturity of the refunding securities and any addi- tional parity securities which may be issued pursuant to the provisions hereof, howsoever the same may mature, there shall be in the special fund moneys in excess of what would be required to retire the refunding securities and all ad- ditional parity securities which shall have been issued, then any such excess shall thereupon be returned to the city. When the amount of money on deposit in the special fund equals or exceeds the aggregate of the principal and interest to their respective maturities on the refunding securities and the additional parity securities at the time outstanding, no further payments need be made into the special fund except to make good the moneys paid there- in which may become lost or which may not be immediately available for withdrawal under the provisions of this sec- tion; provided, that in the event any additional parity securities should thereafter be issued, payments into the special fund shall be resumed in accordance with the applicable provisions of this section. Section 15. Depositories for Special Fund. The Merchants National Bank of Mobile, including an successor to it, is hereby designated as the depository for the special fund insofar as the special fund relates to moneys deposited therein for the payment of the principal of and interest on the refunding securities, The council re- serves the right from time to time of designating one or more other bank or banks as additional depository or de- positories for the special fund insofar as the same shall relate to the payment of the principal of and interest on any of the additional parity securities that may here- after be issued, -13- Page 13 ‘Section 16, Priority of the Pledged Tax Reve- nues, The pledge herein made of the gross receipts tax ts for the benefit of all of the refunding securities and the additional parity securities that may hereafter be issued, pro rata and without preference of one over another. While no default exists in the payment of tine principal of or interest on the refunding securities and any additional parity securities that may nereafter be issued, any part of the gross receipts tax which may not be needed to pay at their respective maturities the prin- cipal of and interest on the refunding securities and the additional parity securities that may be issued, may be used by the city for any lawful purpose. The city represents and agrees that upon issuance of tne refund- ing securities and any additional parity securities that may hereafter be issued the pledge herein made of the pledged tax revenues will be and remain prior and superior to any pledge which may hereafter be made for the benefit of or with respect to any securities which may hereafter be issued by the city or any contract which may here- after be made by the city other than additional parity securities, Section 17. Trust Nature of and Security for the Special Fund. The special fund shall be and at all Eimes remain public funds impressed with a trust for the purpose for which the special fund is herein created. Bach depository shall at all times keep the moneys so on deposit with it continuously secured for the benefit of the city and the holders of the refunding securities and the additional parity securities either a) by holding on deposit, as collateral security, direct general obligations of the United States of America or obligations the.prin- cipal of and interest on which are unconditionally guaran- teed by the United States of America, or other marketable securities eligible as security for the deposit of trust funds under regulations of the Board of Governors of the Federal Reserve System, having a market value (exclusive of accrued interest) not less than the amount of moneys on deposit in the special fund, or (ob) if the furnishing of security in the manner provided in the foregoing sub- - ~ section (ay of this section is not permitted by the then applicable law and regulations, then in such other manner as may be required or permitted by the applicable state and federal laws and regulations respecting the security for, or granting a preference in the case of, the deposit of public funds; provided, however, that it shall not be necessary for any such depository so to secure any por- tion of the moneys on deposit in the special fund that may be insured by the Federal Deposit Insurance Corpora~ tion or by any agency of the United States of America that may succeed to its functions. Section 18. Form of the Refunding Bonds. The refunding bonds and the coupons applicable thereto shall be in substantially the following forms with appropriate insertions and variations therein to conform to the pro- visions hereofs -“14- Page 14 (Form of Refunding Bond) No. $1,000 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF PRICHARD GENERAL OBLIGATION SECURED REFUNDING BOND ‘SERIES 1961 On the 1st day of August, 19, for value re- ceived, the City of Prichard, a municipal corporation in the State of Alabama, promises to pay to the bearer hereof, upon strrender hereof on. or after the maturity ‘hereof,'.: the sum of ONE THOUSAND DOLLARS with interest thereon at the rate of % per annum, payable semiannually on February 1 and August 1 in each year until and at the maturity hereof upon surrender of the appropriate annexed coupons as the same respectively mature, This bond and the interest coupons applicable hereto shall bear interest at the rate of 6% per annum after the maturity hereof and shall be payable in lawful money of the United States of America at The Merchants National Bank of Mobile, in the City of Mobile in the State of Alabama, This bond is one of an authorized issue of bonds aggregating $233,000 in principal amount consist- ing of bonds numbered from 1 to 233, inelusive, and has been issued pursuant to the provisions of Chapter 6 of _ Title 37 of the Code of Alabama of 1940, as amended, and a“ an ordinance of the city for the purpose of refunding outstanding general obligation bonds of the city in like principal amount. The indebtedness evidenced by this bond 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 and by the ordinance under which the said bonds are authorized to be issued, the city has further pledged for the benefit of the said bonds, pro rata with an issue of General Obligation Secured Refunding Warrants of the city dated August 1, 1961, the special privilege and li-~ cense tax of the city levied by Ordinance No, 80 of the city (together with the proceeds therefrom) to the. extent that the said tax is levied with respect to businesses conducted within the corporate limits of the city. In said pro~ ceédings the city reserved the privilege of issuing additional securities and, upon the existence of certain events, -15- Page 15 of pledging for the benefit thereof the said special tax, to the extent aforesaid, on a parity with the aforesaid pledge for the benefit of the said bonds and warrants, Those of the said bonds maturing in 1972 and thereafter may at the option of the city be redeemed and paid prior to their respective maturities, under the con- ditions provided in the proceedings under which they were issued, as a whole or in part and if in part then in inverse numerical order of those at the time outstanding, on any interest payment date on or after August 1, 1971, after prior notice of such redemption shall have been given by publication at least one time not less than 30 days before the date fixed for such redemption, by publi- cation in a newspaper published in Birmingham, Alabama, at a redemption price for each bond redeemed equal to its face value plus accrued interest thereon to the date fixed-for redemption and a premium equal to: =: tmelve months! interest thereon, It is hereby certified and recited that all conditions, actions and things required by the consti-~ tution or ilaws of Alabama to exist, be performed or happen precedent to or in the issuance of this bond and the creation of the indebtedness evidenced hereby do exist, have been performed, and have happened, and that the indebtedness evidenced by this bond, together with all other indebtedness of the city, was when incurred and now is within every debt and other limit prescribed by the constitution and laws of Alabama. IN WITNESS WHEREOF, the city has eaused this bond to be executed in its behalf by its mayor who” has hereunto manually subscribed his signature, and by a facsimile of the signature of the city clerk imprinted hereon, has caused a facsimile of the seal of the city to be imprinted hereon, has provided that said facsimile of the signature of the city clerk shall constitute at- testation of such seal and execution, has caused the annexed interest coupons to be executed with facsimiles of the signatures of the said mayor and city clerk, and has caused this bond to be dated August 1, 1961. CITY OF PRICHARD By Its Mayor By {ts City Clerk -16- Page 16 (Form of Coupon) No. . $ On the lst day of » 19___, the City of Prichard in the State of Alabama will pay tc the bearer hereof, at The Merchants National Bank of Mobiie, in the City of Mobile in the State of Alabama, . Dollars in lawful money of the United States of America, being six months! interest that will become due on said date on the General Obligation Secured Refunding Bond, Series 1961, of the said City of Prichard dated August 1, 1961, numbered _-- . CITY OF PRICHARD By its Mayor By. Jts City Clerk There shall te inserted in each of the refund- ing bonds having stated maturities in 1972 and thereafter, immediately following the maturity date thereof, the followings “(unless this bond shall have been duly, called for prior payment) ," i There shall be inserted in each coupon due on February 1, 1971, or thereafter, immediately following the maturity date thereof, the following: (unless 5 1 11 2 1 2 700 1540 57 25 95.636604 the 5 1 11 2 1 3 782 1539 79 25 95.636604 bond 5 1 11 2 1 4 884 1539 39 24 96.615181 to 5 1 11 2 1 5 946 1539 102 24 96.594284 which 5 1 11 2 1 6 1069 1537 78 25 96.149719 this 5 1 11 2 1 7 1173 1541 118 25 96.350479 coupon 2 1 12 0 0 0 558 1568 921 71 -1 3 1 12 1 0 0 558 1568 921 71 -1 4 1 12 1 1 0 559 1568 835 37 -1 5 1 12 1 1 1 559 1576 37 24 94.543228 is 5 1 12 1 1 2 618 1574 201 31 93.788765 applicable 5 1 12 1 1 3 846 1573 97 24 95.778397 shall 5 1 12 1 1 4 967 1573 78 24 95.870026 have 5 1 12 1 1 5 1068 1572 80 24 96.796844 been 5 1 12 1 1 6 1171 1570 80 30 96.600456 duly 5 1 12 1 1 7 1275 1568 119 25 95.864761 called 4 1 12 1 2 0 558 1602 921 37 -1 5 1 12 1 2 1 558 1609 58 24 96.727028 for 5 1 12 1 2 2 640 1609 99 30 93.022583 prior 5 1 12 1 2 3 763 1602 196 36 92.088394 payment), \ Section 19. Form of Refunding Warrants. The refunding warrants and the coupons applicable thereto and the provisions for the assignment thereof shall be in sub- stantially the following forms, with appropriate insertions and variations therein to conform to the provisions hereof: (Form of Refunding Warrant) No. a $1,000 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF PRICHARD GENERAL OBLIGATION SECURED REFUNDING WARRANT SERIES 1961 -17- Page 17 The City Treasurer of the City of Prichard (here- in called the 5 1 2 1 2 4 617 356 136 37 96.357269 city), a municipal corporation in the State of Alabama, is hereby ordered and directed to pay to Shropshire, Frazer and Co., a partnershin ; or assigns, the principal sum of ) ONE THOUSAND DOLLARS on the Ist day of August 19 » upon surrender hereof on or after said date, with interest thereon from the date hereof until the maturity hereof at the rate of % per annum, payable semiannually on February 1 and August 1 of each year upon surrender of the appropriate interest cou- pons: hereto attached as the same respectively 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 law~ ful money of the United States of America at the principal office of The Merchants National Bank of Mobile, in the City of Mobile in the State of Alabama. This warrant is one of an issue of warrants (herein. called the 5 1 5 1 2 4 725 1068 200 36 94.202995 warrants) in the authorized prin~ cipal amount of $340,000 consisting of warrants numbered from 1 to 340, 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 1940, for the purpose of vefunding a like principal amount of outstanding war- rants of the city which have been previously issued for lawful purposes, Those of the warrants having stated maturities in 1972 and thereafter are subject to redemption and payment prior to maturity, at the option of the city, on any interest payment date on or after August 1, 1971, as a whole or in part and if in part then in inverse numerical order of those at the time outstanding, after prior notice of redemption given by publication one time . in a newspaper published in Birmingham, Alabama, at least -"~ thirty days before the date fixed for redemption, ata redemption price for each warrant redeemed equal to its face value plus accrued interest thereon to the date fixed for redemption and a premium ‘equal to“twelvé months! interest thereon, . . By the execution of this warrant the city ac- knowledges that it is indebted to the payee hereof in the principal amount hereof and that it will become indebted to the holders of the interest coupons attached hereto at the respective maturities thereof and in accordance with the terms thereof, The indebtedness evidenced and ordered paid by this warrant is a general obligation of the city for the -18- Page 18 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 respective 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.extent that the said tax is levied with respect to businesses conducted within the corporate limits of the city, which pledge shall be for the pro rata benefit of the warrants and of an issue of General Obligation Secured Refunding Bonds of the city dated August 1, 1961. In said proceedings the city re- served the privilege of issuing additional securities. and, upon the existence of certain events, of pledging for the benefit thereof the said spécial tax, to the extent aforesaid, on a parity with the aforesaid pledge thereof for the said warrants and bonds, It is hereby certified and recited that the in- debtedness evidenced and ordered paid by this warrant is lawfully due without condition, abatement or offset of any description; that this warrant has been registered in the manner provided by law; that all conditions, ac- tions and things required by the constitution and laws of the State of Alabama to exist, be performed or happen precedent to and in the issuance of this warrant do ex~ ist, have been performed, and have happened; and that the indebtedness evidenced and ordered paid by this war- rant, together with al1 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 transfer- able by assignment, Each taker, owner, purchaser or holder hereof, by receiving or accepting this warrant or any in- terest coupon applicable hereto shall consent and agree and shall be estopped to deny: (1) that title to the “7 coupons hereunto appertaining may be transferred by de- livery 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 possession, is authorized to represent himself as the 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 assign- ment by the orginal payee hereof or by any subsequent -19- Page 19 assignee hereof in the chain of title to whom written as- signment is made, the city may treat any person in pos- session 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 hereunder, . IN WITNESS WHEREOF, the city has caused this warrant to be executed by its mayor who has hereunto manually subseribed his signature, has caused a facsimile of its official seal to be hereon imprinted, has caused the said execution and seal to be attested by a facsimile of the signature of its city clerk imprinted hereunder, has caused the annexed coupons to be executed and attested with facsimiles of the signatures of said officials,.and has caused this warrant to be dated August 1, 1961. s CITY OF PRICHARD By. Its Mayor Attest: City Clerk ‘ (Form of Coupon) Coupon ' No, ‘ $e On the 1st 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 a“ City of Mobile in the State of Alabama, being six months? interest then due on the General Obligation Secured Re- funding Warrant, Series 1961, of the City of Prichard,.. Alabama, dated August 1, 1961, numbered . CITY OF PRICHARD By. Mayor Attest: City Clerk -20- Page 20 (Form of Assignment) For value received, this warrant and the in- debtedness evidenced and ordered paid thereby are assigned, without recourse or warranties, to 2 Shropshire, Frazer & Co., a partnershi ye A Partner Immediately after the maturity date of each of the refunding warrants having stated maturities in 1972 and thereafter, there shall be inserted the following: (unless 5 1 7 1 1 2 696 770 80 25 96.177956 this 5 1 7 1 1 3 799 769 139 25 90.190460 warrant 5 1 7 1 1 4 965 770 97 24 95.100571 shall 5 1 7 1 1 5 1085 770 78 23 96.098473 have 5 1 7 1 1 6 1186 769 81 24 96.935242 been 4 1 7 1 2 0 553 799 648 37 -1 5 1 7 1 2 1 553 805 80 31 96.527718 duly 5 1 7 1 2 2 656 804 121 25 95.535889 called 5 1 7 1 2 3 800 805 58 24 95.714813 for 5 1 7 1 2 4 880 805 101 29 96.043274 prior 5 1 7 1 2 5 1004 799 197 36 41.836449 payment) 5 1 7 1 2 6 1167 795 39 45 41.836449 , Immediately after the maturity date of each coupon due on or after February 1, 1971, applicable to the refunding warrants, there shall be inserted the following: “(unless the warrant to which this coupon is applicable shall have been duly called for prior payment)," Section 20. Payments at Par, Each bank at which the refunding securities and the coupons shall at any time be payable, by acceptance of its duties as paying agent therefor, shall be construed to have agreed thereby with the holders of the refunding securities and the cou- pons that all payments made by 1t of the refunding securi~ ties and the coupons shall be: made in bankable funds at par and without deduction for exchange, fees or expenses. The city agrees with the holders of the refunding securi- ties and the coupons that it will pay all charges for exchange, fees or expenses which may be made by any such bank in paying in bankable funds any of the refunding securities and the coupons. Section 21, Provisions Hereof Constitute Con- tract. The provisions of this ordinance shall constitute & contract between the city and each holder of the refund- ing securities and the coupons issued hereunder, Whenever all of the refunding securities and the coupons and the interest thereon shall have been paid in full then the obligations of the city hereunder shall thereupon cease. Section 22. Provisions 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 shall not affect any other portion of this ordinance, Section 23, Sale of the Refunding Securities and Use of Proceeds Therefrom. The bid of Hugo Marx and Co., and Associates -21- Page 21 for the purchase of the refunding securities from the city at a purchase price equal to $ 573,000.00 pius accrued interest thereon to the date of delivery there- of, is hereby ascertained to be the bid received for the purchase of the refunding securities which reflects the lowest average annual net interest cost to the city for the refunding securities computed from their date to their respective maturities and to be the best bid re- ceived therefor. The ‘said bid is hereby accepted and the refunding securities are hereby sold to the said bidders, The refunding warrants shall be issued in the name of Shropshire Frazer and Co. » the nominee of the purchasers designated by them for that purpose. The city treasurer is hereby authorized and directed to de~ liver the refunding securities to the said purchasers upon payment to the city of the said purchase price. The proceeds from the sale of the refunding securities shall be applied as follows: That part of the proceeds which represents accrued interest on the refunding securities from their date to the date of payment therefor, together with any premium in excess of the face amount thereof in- cluded in the said purchase price, shall be deposited into the special fund in accordance with the requirements of Section 14(a) hereof, and shall be applied for payment of the interest which will accrue on the refunding securi- ties on the next interest payment date. The principal proceeds shail be used for the purposes for which the refunding securities are respectively authorized to be issued, Adoptdd this 17th day of July, 1961. we President “re City Council Ue Approved this [7 Zaay of July, 1961. AD 6 bogey Mayor -22-