Page 1 eee egy PAGE -15- ORDINANSE NO, 1296 AN ORDINANCE 70 PROVIDE FOR THE ISSUANCE OF $720,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION WARRANTS, SERIES 1971, OF THE CITY OF PRICHARD, ALABAMA BE IT ORDAINED by the City Council of the City of Prichard, Alabama, as follows: Section 1, Definitions and Use of Phrases. * (a) Definitions. The follcewing 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 12 1 1 2 666 1008 118 33 96.326965 Parity 5 1 12 1 1 3 769 1005 258 36 82.265495 Securities means any securi- ties which the City mey at the time of issuance be author- ized to issue and for the payment of the principal of and interest on which the Gross Receipts Tax may be pledged un- der the reserved right so to do contained in and in accord~ ance with the provisions of Section 8 hereof. wagnuel Debt Service Requirement” means the amount of principal and interest having a stated maturity during a Fiscal Year. City means the municipal ecrporation of Prichard in the State of Alabama and includes its successors and, as- Signs and any municipal corporation resulting from or surviv- ing any consolidation or merger to which it or its successors may be a party. City 5 1 15 1 1 2 543 1687 116 38 94.317459 Clerk means the city clerk of the City. City 5 1 16 1 1 2 523 1791 217 36 63.393211 Treasurer means the city treasurer of the City. Council means the governing body of the City as from time to tine constituted. Coupons means the interest coupons provided for herein which evidence the interest on the Warrants, Financial 5 1 21 1 1 2 642 2201 158 41 95.412971 Journal means a _Journal devoted circulation among those interested in. financial matters. Fiscal 5 1 23 1 1 2 585 2369 95 36 82.707832 Year means a fiscal year of the City beginning on any October 1 and ending on the next ensu— ing September 30. Page 2 . ‘ . “ -” . . PAGE -16~ Former 5 1 2 2 1 2 603 132 100 26 44.136257 Grovs 5 1 2 2 1 3 730 136 159 27 77.931000 Receipts 5 1 2 2 1 4 914 138 80 27 49.478222 Pax means that certain privileze or Titense Us of tne Cincy le¥..cd by Ordinance No. 880 of the City adopted October 3, 1960, as amended by Ordinances ios, 577, 1607, 1182, and 1197 of the City adopted respectively on Pebruary 2, 1965, Harch 1, 1965, February 24, 1569, and April 9, 1969, on persons, corpo- rations and others engaging in the business of selling at retail tangible personal property and on the business of conducting or operating places of anusement, and meas- ured by the gross receints or gross proceeds of such busi~ nesses, to the extent that the Said tax is levied with re- spect to business conducted within the corporate limits of the City. : ed Gross 5 1 5 1 1 2 564 655 160 28 91.474411 Receints 5 1 5 1 1 3 748 658 81 27 68.433212 Tax means that certain license or privilege tax of the City levied by Sect2on 1 oF thex 1970 Gross Receipts Tax Ordinance on persons, firms or cor~ porations engaging within the City in the business of sell~ ing at retail tangible personal property and on the business of conducting or operating places of amusement or entertain~ ment, and measured by the gross receipts or gross proceeds of such businesses, . 1970 5 1 6 1 1 2 543 970 100 26 93.024193 Gross 5 1 6 1 1 3 668 974 161 28 91.764023 Receints 5 1 6 1 1 4 854 979 60 25 93.460632 Tex 5 1 6 1 1 5 938 982 205 27 81.971313 Ordinance” 5 1 6 1 1 6 1166 993 100 21 93.213654 means 5 1 6 1 1 7 1293 991 101 27 69.076447 Ordi~ 4 1 6 1 2 0 212 998 1225 58 -1 5 1 6 1 2 1 212 1001 102 21 96.538673 nance 5 1 6 1 2 2 336 998 54 27 89.383598 No. 5 1 6 1 2 3 420 1002 78 30 79.326950 1285 5 1 6 1 2 4 522 1007 39 23 76.399399 oF 5 1 6 1 2 5 584 1008 58 24 95.168831 the 5 1 6 1 2 6 668 1010 78 30 93.589966 City 5 1 6 1 2 7 771 1014 142 29 95.944206 adopted 5 1 6 1 2 8 936 1017 80 25 94.803398 June 5 1 6 1 2 9 1041 1020 36 31 94.133781 1, 5 1 6 1 2 10 1104 1022 96 32 95.119881 1970, 5 1 6 1 2 11 1229 1031 36 19 96.326523 as 5 1 6 1 2 12 1291 1030 146 26 94.225052 amended 4 1 6 1 3 0 211 1030 1156 60 -1 5 1 6 1 3 1 211 1030 40 29 96.911179 by 5 1 6 1 3 2 275 1032 179 29 96.112221 Ordinance 5 1 6 1 3 3 477 1038 55 26 65.946671 No. 5 1 6 1 3 4 562 1038 80 32 95.960609 1247 5 1 6 1 3 5 666 1045 41 23 96.025452 of 5 1 6 1 3 6 728 1046 58 24 96.146240 the 5 1 6 1 3 7 811 1048 79 30 95.922028 City 5 1 6 1 3 8 915 1052 144 29 96.591263 adopted 5 1 6 1 3 9 1081 1055 81 26 95.626328 June 5 1 6 1 3 10 1185 1055 55 35 95.459900 26, 5 1 6 1 3 11 1270 1061 97 29 87.754059 1970. 2 1 7 0 0 0 407 1116 872 51 -1 3 1 7 1 0 0 407 1116 872 51 -1 4 1 7 1 1 0 407 1116 872 51 -1 5 1 7 1 1 1 407 1116 180 40 88.291870 Interest Payment Date" means any May 1 or November 1 duving the perica beginning November 1, 1971, and continuing until and including May 1, 1980, Mayor means the mayor of the City. Month means a calendar month. ilewsvaper™ means a journal or newspaper printed in the English language and customarily published not less than five days during each calendar week, Ordinance 5 1 12 1 1 2 614 1684 58 27 83.021210 No, 5 1 12 1 1 3 702 1686 97 36 95.973083 1024 means Ordinance No. 1024 of the City adopted May 10, 1965, Ordinance 5 1 13 1 1 2 615 1806 58 58 67.813652 No. 5 1 13 1 1 3 698 1827 96 29 95.196327 1205 means Ordinance No. 1205 of the City adépted ay 19, 1969, . ve oe Ordinance 5 1 15 1 1 2 599 1951 72 50 78.417984 ‘Ho. 5 1 15 1 1 3 693 1967 96 30 95.531525 1251, 5 1 15 1 1 4 817 1975 35 18 96.321251 as 5 1 15 1 1 5 877 1971 163 36 95.443619 Amended means Ordinance No, 1251 of the City adopted July 2c, 1970, as amended by Ordinance No, 1253 of the City adopted September 8, 1970. Outstanding 5 1 17 1 1 2 645 2136 121 30 96.868828 Parity 5 1 17 1 1 3 790 2140 223 29 94.768677 Ordinances means Ordinances No. 1024, Ordinance io. 1205, and Ordinance No. 1251, as Amended, Outstanding 5 1 18 1 1 2 640 2310 121 28 96.494858 Parity 5 1 18 1 1 3 784 2315 224 28 94.813805 Securities means (a) those of the 1965 Parity Securities and the 1909 Warrants that now remain outstanding, and (b) the 1970 Warrants, Page 3 PAGE -17- Outstanding 5 1 2 1 1 2 687 265 123 45 83.231842 ilotes means the General Obligation Tax Anticipation Notes dated September 25, 1970, numbered 2 to 5, inclusive, which are referred to in Section 2(a)(1) hereof, . ‘ Outstanding 5 1 4 1 1 2 691 476 203 25 94.128014 Short-term 5 1 4 1 1 3 915 475 218 27 93.861320 Securities means the Outstanding 5 1 5 1 1 2 690 614 204 24 90.428947 Short-term 5 1 5 1 1 3 913 612 159 27 93.848778 Warrant means the General Obligation Warrant dated July 19, 1971, which is referred to in Section 2(a)(2) hereof, * Parity 5 1 6 1 1 2 587 782 220 28 95.718597 Securities means the Outstanding Parity Securities, the Warrants, and any Additional Parity Securi- ties that may hereafter be issued pursuant to the provisions of Section 8 hereof. = 1965 5 1 7 1 1 3 547 957 119 29 93.923584 Parity 5 1 7 1 1 4 688 955 219 37 96.283386 Securities means those bonds and warrants that were heretofore issued pursuant to author~ ization in Ordinance Wo. 1024, including (a) the General Obligation Secured Refunding Bonds, Series 1965, of the City dated May 1, 1965, issued in the original principal amount of $823,000, of which those numbered 81 to 823, inclusive, aggregating $743,000 in principal amount, now remain outstanding: (b) the General Obligation Secured Warrants, Series 1965, of the City dated May 1, 1965, is~ sued in the omiginal principal amount of $164,000, of which those numbered 87 to 164, inclusive, aggregating $78,000 in principaz amount, now remain outstanding; and (c) the $1,467,000 principal amount of General Obligation Secured Refunding Warrants, Series 1965A, of the City dated May 1, 1965, all of which presently remain outstanding. Pledged 5 1 9 1 1 2 604 1539 59 23 95.314980 Tax 5 1 9 1 1 3 687 1536 178 27 95.314980 Revenues means the proceeds de- rived from the Gross Receipts Tax. Resolution means a resolution duly adopted by the Council. : Secular 5 1 11 1 1 2 605 1809 76 37 94.733604 Day means any day on which business is normally transacted and does not include any Sunday or legal holiday. Special 5 1 13 1 1 2 607 1973 93 34 96.322037 Fund means the Gross Receipts Tax Fund created in Section 16 of Ordinance No. 1024, Warrants, without other qualifying language, means the General Obligation Warrants, Series 1971, herein authorized. 1969 5 1 16 1 1 2 542 2283 179 28 95.962799 Warrants means the General Obligation Se- cured Warrants, Series 1969, dated May 1, 1969, heretofore issued, pursuant to authorization in Ordinance No. 1205, in the original principal amount of $1,000,000, of which those numbered 18 to 200, inclusive, aggregating $915,000 in prin- cipal amount, now remain outstanding. Page 4 . PAGE ~18- 1970 5 1 4 1 1 2 547 277 180 36 88.876984 Warrants means the General Obligation Se- cured Refunding Warrants, Series 1970, dated May 1, 1970, heretofore issued, pursuant to authorization in Ordinance No. 1251, as Amended, in the principal amount of £500,000, all of which presently remain outstanding. (b) Use of Phrases. The following words and phrases, where used in this ordinance, shall be given the following respective interpretations: Herein, hereof, hereunder, and other equiva- lent words Yefer to this ordinance and not’ solely to any, particular portion hereof in which any such word is used, The definitions set forth in subsection (a) of this section shall be deemed applicable whether the words defined are herein used in the singular or plural. Wherever used herein any pronoun or pronouns shall be deemed to include both singular and plural and to cover ali genders. . Section 2. Findings. The Council has ascer- tained and found and does hereby declare that the fol- lowing facts are true and correct: (a) There are now outstanding and unpaid the following: (1) Four General Obligation Tax Anticipation Notes of the City aggregating $250,000 in principal amount, dated September 25, 1970, numbered 2 to 5, in- clusive, each of which has matured and is now past due, bearing interest at the rate of 6% per annum from Sep- tember 25, 1970, to its maturity payable at maturity, which were issued pursuant to authorization in a Reso- lution of the City adopted September 24, 1970, for the purpose of paying necessary governmental expenses of operating the City; (2)' She General Obligation Warrant of the City in the principal amount of $95,000, dated July 19, 1971, due August’ 1, 1971, bearing interest at the rate of 7% per annum from July 19, 1971, to its maturity payable at maturity, which was issued pursuant to au- thorization in Ordinance No. 1294 of the City adopted July 8, 1971, for the purpose of paying necessary and legitimate governmental expenses of operating the City; {(b) Each of the Outstanding Short-term Securities was signed in the name of and behalf of the City and the cor- porate seal of the City was affixed thereto; each of the Out- standing Short-term Securities was attested in the manner provided by the laws of Alabama and by the ordinance under which it was issued; no part of the principal of or interest Page 5 an PAGE ~-19- g \ on the Outstandins Short-term Securities hes been paid; each of the Outstanding Short-term Securities represents a valid general obligation indebtedness of the City against which there are no offsets or counterclaims; the interest accrued and unpaid with respect to the Outstanding Notes to August 3, 1971 (the date on which the Council plans ‘that the City will Pay and retire the Outstanding Short-term Securities), amounts to $13,083.50; and the interest accrued and unpaid with re- spect to the Outstanding Short-term Warrant to August 3, 1971, amounts to $277.08; (¢) In order to enable the City to perform its governmental and other municipal functions, it is necessary that certain equipment and other capital items be acquired, the said capital items ineluding (1) two police cars, having a combined estimated cost of $4,400; (41) fire arms, which have been recently purchased at a cost of $449.31, for use by the City's Police Department; (iii) property having an estimated cost of $38,000 for use in the disposal of garbage and other said wastes, including two garbage trucks, two trash trucks; (iv) two automobiles and a pick-up truck, to- gether having an estimated cost of $6,900, for the City's Building Inspection Department; (v) one grader, having an estimated cost of $26,000, for use by the City's Street De- partment; (vi) one pick-up truck, having an estimated cost of $2,200, for use by the City's Recreation Department; (vii) one automobile,having an estimated cost of $2,500, for use by the City's License Department; and all of the said capital items together have an estimated cost of approximately $80,449.13; : (d) Additional funds are needed by the City for payment of certain expenditures in connection with the City's Solid waste disposal program, the said expenditures being estimated at 335,000; additional funds are also needed by the City at this time for payment of governmental expenses of operating the City, the said expenses aggregating in excess of $217,390.11; it is necessary also that the City pay the ex- penses of issuing the Warrants, including the discount on the purchase price thereof, hereinafter provided for; (e) The Council has determined that it is neces— Sary, desirable and in the public interest that the City is- Sue the Warrants hereinafter authorized for the purpose of (1) refunding the principal of the Outstanding Short-term Securities and the interest accrued thereon to the date of Such payment; (i1) paying the costs of acquiring the capi- tal items referred to in the foregoing subsection (c) of this ~ section, and (iii) paying governmental operating expenses of the City and other expenditures and expenses referred to in subsection (d) of this section; (f) The proceeds received by the City from;the Former Gross Receipts Tax for the Fiscal Year that ended September 30, 1969, were $917,478.44; the proceeds received from the Former Gross Receipts Tax and from the Gross Re- ceipts Tax during the Fiscal Year that ended September 30, 1970, were $901,145.66; and the average annual proceeds de- rived from the Former Gross Receipts Tax during the said two Fiscal Years were, therefore, $909, 312.053 Page 6 4c. ak PAGE -20- (gs) The maxinun Annual Debt Service Require- ment with respect to the Outstanding Parity Securities and the Warrants is $435,514.00, being the amount of principal and interest that will mature with respect to the Outstanding Parity Securities and the Warrants during the Fiscal Year ending September 30, 1980; 1.75 times the sum of $435,514.00 (or 175% of the said sum) is $762,149.505 ft (nh) The sum of $909,312.05 is greater than the sum of $762,149.50; the average annual proceeds derived from the Former Gross Receipts Tax and the Gross Receipts Tax during the two Tiseal Years ending September 30, 1969, and September 30, 1970 (which are the two Fiscal Years next preceding the issuance of the Warrants) is, therefore, MOPC.< than 1.75 times the maximum amount of principal and interest that will mature during any succeeding Fiscal Year with re- spect to the Outstanding Parity Securities and the Warrants 5 and the Warrants. are, therefore, eligible to be issued on 4 parity with the Outstanding Parity Securities, all pursuant to and in accordance with the provisions of Section 14 of Or- dinanee No, 1024, Section 9 of Ordinance No. 1205, and Sec- tion 9 of Ordinance No. 1251, as Amended, upon the filing in. the office of the City Clerk of a certificate by the Mayor and City Treasurer setting forth the facts recited in this para- graph and in the foregoing subsections (f) and (g) of this sec- tion; and (i) The Gross Receipts Tax is in substance and effect a continuation of, and the same tax as, the Former Gross Receipts Tax; the pledges of and agreements respecting the Former Gross Receipts Tax that were heretofore made by the City in the Outstanding Parity Ordinances for the benefit of the Outstanding Parity Securities are now applicable in all respects to the Gross Receipts Tax; for all purposes of the said pledges and agreements made with respect to the For- mer Gross Receipts Tax in the Outstanding Parity Ordinances, the Former Gross Receipts Tax and the Gross Receipts Tax are to be considered as if they were the same tax; and the re- served privilege to issue additional securities secured by a pledge of the Former Gross Receipts Tax on a parity with the Outstanding Parity Securities heretofore set forth in each of the Outstanding Parity Ordinances should be deemed in all respects applicable to the Gross Receipts Tax. Section 3. Authorization of the Warrants. Pur- suant to the applicable provisions of the constitution and laws of the State of Alabama, there are hereby authorized to. be issued by the City one hundred forty-four (144) General Ob- Ligation Warrants, Series 1971, of the City in the aggregate principal amount of $720,000, which shall be in the denomina- tion of $5,000 each, shall be dated May 1, 1971; and shall mature on May 1 as follows: Warrant Numbers Year of Aggregate Principal (poth ine lusive) Maturity Amount Maturing 1 to 10 1972 $ 50,000 - AL to 22 1973 60,000 23 to 36 1974 70,000 37 to 51 1975 75,000 52 to 67 1976 80,000 68 to 84 1977 85,000 85 to 102 1978 90,000 103 to 122 1979 ° 100 ,000 123 to 144 1980 : 110,000 Page 7 - PAGE -21- Those of the Warrants numbered 1 to 72, inclusive, are hereby authorized to be issued pursuant to the provisions of the sald constitution and laws, including specifically Section 466 of Title 37 of the Code of Alabama of 1940, for the purpose of paying costs of the equipment and other capital items and the expenditures and expenses referred to in subsections (c) and (d) of Section 2 hereof; that one of the Warrants numbered 73 is hereby authorized to be issued pursuant to Sections 253 and 466 of Title 37 of the said Code, for the purpose of paying $3,360.58 of the interest on the Outstanding Notes and $1,639.42 of the said costs and expenses referred to in the said subsec- tions (ce) and (d); and those of the Warrants numbered 74 to 144, inclusive, are hereby authorized to be issued pur- suant to the said Section 253 for the purpose of refunding the principal of, and $15,000 of the interest on, the Out~ standing Short-term Securities. The Warrants shall bear interest from their date until their respective maturities at the rate of, 7% per annum, The said interest shall be payable semiannually on May 1 and November 1 of each year until and at the respec- tive maturities of the Warrants and shall be evidenced by sep- arate interest coupons attached thereto. Section 4. Interest After Maturity. Place of Payment. The Warrants and the Coupons applicable thereto shall bear interest at the rate of 8% per annum after thelr respective maturities until paid. The Warrants shall be payable in lawful money of the United States of America at the principal office of Peoples National Bank of Huntsville in the City of Huntsville in the State of Alabama. Section 5. Execution of the Warrants. The . Mayor shall cause the Warrants to be executed in the name : and behalf of-the City by a facsimile of his signature; | the official seal of the City shall be reproduced thereon in facsimile; and the City Clerk shall attest each of the Warrants by manually subscribing her signature thereon. The Coupons shall be executed with the facsimile signature of the Mayor and shall be attested with the facsimile sig- nature of the City Clerk. The facsimile signatures pro- vided for in this section shall be valid in all respects as if the Mayor had manually subscribed each of the War~ rants and as if the Mayor and City Clerk had manually signed each of the Coupons. The Warrants and the Coupons shall be registered by the City Treasurer in the records maintained by her as a claim against the City and against the Gross Receipts-Tax, and the proceeds thereof (which are hereinafter pledged therefor), which registration shall be made simultaneously with respect to all of the Warrants and the Coupons. Said officers are hereby di- ‘rected so to execute, seal, attest and register the War- rants and the Coupons. Section 6, General Obligation. The indebted~ ness evidenced and ordered paid by the Warrants is and . shall be a general obligation of the City for the payment of the principal and interest on which the full faith and eredit of the City are hereby irrevocably pledged. Page 8 “PAGE -22- Section 7. Snecial Pledse af the Gross Receipts fax. As additional ‘security ror payment >of the principal of and interest on the Warrants, and as a part of the con- tract whereunder the obligations evidenced by the Warrants are created, there is hereby specially and irrevocably pledged for payment of the principal of -and interest on the Warrants, at the respective maturities of said prin- cipal and interest, so much as may be necessary for the purpose of the Gross Receipts Tax, together with the pro- ceeds thereof, The special pledge, herein made, of the Gross Receipts Tax and its proceeds is on a parity with (1) the pledse thereof made in Ordinance No. 1024 for the benefit of the 1965 Parity Securities, (ii) the pledge . thereof made in Ordinance No. 1205 for the benefit of the 1969 Warrants, and (iii) the pledge thereof made in Ordi- nance Ho. 1251, as Amended, for the beneZit of the 1970, Warrants; and the said special nledse herein mace shall be on a parity with any pledge of the Gross Receipts Tax and its proceeds that may hereafter be made for the bene- fit of Additional Parity Securities pursuant to the pro- visions of Section 8 hereof. To whatever extent, if any; the proceeds of the Gross Receipts Tax available for said purpose may not be sufficient to pay- the principal of and interest on any Parity Securities then outstanding, 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 derived from other sources and avail-~ able for said purpose as may be necessary to pay said principal and inverest at their respective maturities. The City represents and warrants (a) that unon delivery of the warrants there will be no outstanding agreement or pledge with respect to the Gross Receipts Tax other than (1) the agreements and pledge made in Ordinance No. 1024, (2) the agreements and pledge made in Ordinance No. 1205, (3) the agreements and pledge made in Ordinance No. 1251, as amended, and (4) the agreements and pledge herein con- tained (except for a pledge of the Gross Receipts Tax for the benefit of securities for the retirement of which full provision was made by trust funds created in trust agree- ments dated May 31, 1965, and delivered on the said date and simultaneously with the issuance of the 1965 Parity Se- eurities); and (b) that the agreements and pledge respecting the Gross Receipts Tax and its vroceeds herein made shall be and remain prior and superior to any and all pledges and - agreements respecting the same that may hereafter be made by the City other than any parity pledge of the Gross Re- ceipts Tax and its proceeds that may hereafter be made for the benefit of Additional Parity Securities hereafter issued pursuant to the provisions of Section 8 hereof. While no default exists in the payment of the principal of or inter- est on the Parity Securities, any vart of the proceeds from the Gross Receipts ‘Tax that may not be needed to pay at their respective maturities the principal of and interest on the Parity Securities, may be used for any lawful purpose. Section 8, Reservation of Rirht to Issue Ad-. ditional Parity Securities. The City reserves the right o issue at any time and from time to time additional se- curities of the City (whetner in the form of bonds, war- rants, certificates, or notes) which the City may at the time of such issuance be lawfully authorized to issue, and to vledre for payment of the principal thereof and in- terest thereon (pro rata and on a parity with the pledges of the Gross Receipts Tax made in Section 13 of Ordinance No. 1024, in Section 8 of Ordinance Ho. 1205, in Section 8 of Ordinance iJo. 1251, as Amended, and in Section 7 of this ordinance and pro rata and on a parity with the like pledge that may be made for the benefit of eath series of the Addi- tional Parity Securities), so mich of the Gross Receipts Tax Page 9 PE PAGE ~23- and the proceeds therefrom as may be necessary to pay the principal of and interest on the Additional Parity Securi- ties at the respective maturities of said principal and in- terest; provided, that in order to make any such parity plenge the following conditions must exist and be complied with: (a) The average annual proceeds received by the City from the Gross Receipts Tax during the two Fiscal Years next preceding the Fiscal Year during which any such Additional Parity Se- curities are delivered to the purchaser thereof must be not less than 1.75 times the maximum An- nual Debt Service Requirement during the then cur- rent or any then succeeding Fiscal Year with re- spect to all Parity Securities that will be out- standing immediately following the issuance of the Additional Parity Securities then proposed to be issued, The amount of tHe annual proceeds received by the City from the Gross Receipts Tax during each of the said two Fiscal Years next pre- ceding the issuance of any such Additional Parity Securities shall be conclusively established by a certificate signed by the Mayor and the City Treas~ urer setting forth the said amounts, certifying the correctness of the said amounts, and stating that the-said amounts were established by and taken from the official records of the City. A copy of each such certificate shall be filed in the office of the City Clerk. (b) Each issue of the Additional Parity Securities shall be given a different series designation, shall have stated maturities of principal on May 1 of the years in which the Additional Parity Securities of that series shall mature, and shall bear interest payable semiannually on May 1 and November 1. Any se- ries may have provisions for redemption prior to maturity and such other provisions not in conflict with this ordinance as the Council shall determine advisable, and provide for, in the proceedings in which the Additional Parity Securities of that series are authorized to be issued, (c) Contemporaneously with the issuance of any Additional Parity Securities, the City will make the payments into the Special Fund that are required by the provisions of Section 11 hereof to be made at the time of such issu- ance, t N Section 9, Maintenance of the Gross Receipts Tax, The City agrees that so long as any of the princi~ pal of or interest on the Warrants remains unpaid, the City will continue the levy of and will collect the Gross Receipts Tax at rates not less than the rates presently in effect and without reduction in the aggregate annual amount of the proceeds thereof; provided, however, that Page 10 wee PAGE -24-— the City may hereafter exempt businesses from the Gross Receipts Tax if the azsregate annual proceeds from the Gross Receipts Tax following any such exemption of busi- nesses therefrom shall be not less than the aggregate an- nual proceeds from the Gross Receipts Tax during the Fis- eal Year prior to the effective date of any such exemp- tion. If such action should become necessary to provide moneys to pay the principal of and interest on the Parity Securities, at the respective maturities of such principal and interest, 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 purposes, will be sufficient to pay the reasonable expenses of carryin on the necessary governmental functions of the City and to pay the principal of and interest on the Parity Securities at the respective maturities of said principal and interest, Section 10, Special Gross Receipts Tax Fund. The Special Fund, designated the Gross 5 1 4 1 2 7 1049 960 158 28 86.768433 Receipts 5 1 4 1 2 8 1230 960 61 24 96.481361 Tax 5 1 4 1 2 9 1315 957 118 33 90.728203 Fund, which was created in Section 16 of Ordinance No. 1024, shall be maintained until the principal of and interest on the Par- ity Securities shall have been paid in full. Payments into the Special Fund shall be made as follows: (a). There shall’ be paid into the Special Fund, simultaneously with the issuance of any of the Parity Securities and out of the proceeds derived from the sale thereof, that portion of said proceeds which may be referable to the ac- crued interest and any premium received by the City on any such sale; '(b) Prior to the last Secular Day of the Month during which the Warrants shall be issued, and prior to the last Secular Day of each succes~ sive Month thereafter until the principal of and interest on the Parity Securities 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 one-sixth (1/6) of the semiannual installment of interest that will ma- ture on the then next succeeding Interest Payment Date with respect to the Parity Securities at the time outstanding, plus one-twelfth (1/12) of the principal of the Parity Securities that will ma~ ture on the then next succeeding May 1; provided, however, that (1) there shall be credited on the payment provided in this subsection (b) to be made prior to the last Secular Day of the Month during which the Warrants are issued, an amount equal to the interest accrued on the Warrants during the period from the first day of the said Month to the date of the delivery of the War. rants to the purchaser thereof; and (2) follow- ing payment into the Special Fund of any sum - out of the proceeds from Additional Parity Se- ecurities, pursuant to the provisions of subsec- tion (a) of this section, there shall be cred- ited on the amount required by this subsection Page 11 PAGE ~25- (b) to be pald into the Special Fund an amount equal to any such sum SO paid into the Special Fund pursuant to the provisions of the said sub- section (a); ‘ ; (¢) Simultaneously with the issuance of any series of the Additional Parity Securities the City will pay into the Special Fund such ad- ditional sum as, when added to (1) the sum that will be on deposit in the Special Fund immedi-~ ately following such issuance, and (2) the sub- Sequent payments that are hereinabove required May 1, an amount equal to the interest maturing on the Parity Securktiess:on the said November Ls (d) In the event the moneys paid into the Speciai Fund for any Month shall be less than The City will not in any event permit a default to occur in the payments herein provided to be made into the Spe~ cial Fund, and if the proceeds from the Gross Receipts rities, upon or after the respective maturities of such principal and interest; provided, that if at the final maturity of the Parity Securities, howsoever the same may mature, there shall be in the Special Fund moneys in ex- cess of the amount required to retire the Parity Securi-~ ties, then any such excess shall thereupon be returned to the City. When the amount of money on deposit in the Spe~- and interest to their respective maturities on the Parity Securities at the time outstanding, no further payments need be made into the Special Fund except to make good the moneys paid therein which may become lost or which may not be immediately available for withdrawal under the provi- Sions of this section; provided, that in the event any Ad~ ditional: Parity Securities should thereafter be issued, payments into the Special Fund shall be resumed in accord- ance with the applicable provisions of this section, Page 12 PAGE ~-26- In the event that any proceeds of public improve~ ment assessments (or any other moneys from any source other than those on deposit in the Special Fund) shall be applied at any time for payment of any of the principal of or inter-~ est on any of the Parity Securities, and in the event that, as a result of the application for such payment of assess- ment proceeds (or other moneys.from any source other than the Special Fund) there shall be on deposit in the Special Fund on any May 1, following payment of all principal and interest maturing on or prior to that date with respect to the Parity Securities, moneys in excess of any then unpre- — sented Parity Securities and any then unpresented interest coupons applicable to any Parity Securities, then in those events (and in those events only) there shall be credited on the amount required by the provisions of this section to be thereafter paid into the Special Fund an amount equal te the aforesaid excess amount so on deposit in the Special und, : ‘ Section 11. Remittances from State Department of Revenue. In order to facilitate the payments herein provided to be made into the Special Fund, the City hereby authorizes the State Department of Revenue to transmit directly to each of the several depositories for the Spe~ clal Fund, out of the proceeds from the Gross Receipts Tax collected by the said Department, (1) the respective amounts required under the provisions of this ordinance to be' paid monthly to each such depository, commencing with the amount required to be paid to such depository prior to the last Secular Day of September, 1971, plus (11) an additional monthly sum sufficient to pay the fees of each such deposi-~ tory for acting as paying agent in respect of the Parity Securities payable at the principal office of such deposi- tory. The City agrees with each holder of any of the War- rants that, so long as any of the Warrants shall remain un- paid, it will not revoke the authority and direction con-. tained in the next preceding sentence of this section. To carry out the provisions of this paragraph, the Mayor and the City Treasurer are hereby authorized and directed to issue to the State Department of Revenue an order authorig- ing and directing the said Department to transmit directly to each such depository each Month, out of the proceeds from the Gross Receipts Tax, the respective amounts referred to in the first sentence of this section, all to the extent, at the times, and in the manner provided herein, and to specify in the said order the dollar amount of each such payment that the State Department of Revenue is so to trans mit to each such depository each Month; provided, however, that so long as moneys from any source other than moneys in the Special Fund (such other moneys being referred to in the last paragraph of Section 10 hereof) are available in any trust fund for payment of any principal of or interest on any of the Parity Securities, moneys shall not be transmitted by the said Department in respect of the principal and inter- est for payment of which such other funds are available, and ‘ any order (or supplemental order) made hereunder to the said Department shall not include provision for payment of such . principal and interest for payment of which such other mon- eysS are available. Page 13 or Ft PAGE -27- one The Nayor and City Treasurer may, by supplemental order to the State Department of Revenue, alter and change the dollar amounts of such payments to be so transmitted by the State Department of Revenue but only under the follow- . ing conditions: . (a) If the dollar amounts specified in such original order or in any supplemental order are not sufficient to provide for the payment of the principal of and the interest on the Parity Secu- rities as such, princival and interest respectively mature (excluding, hovever, any orincipal and in- terest for payment of which other funds are then available as referred to in the proviso at the end of the first sentence of this section), and the < seid paying “arent fees as such fees hecome due ‘and payable, as contemplated and provided by Section 10 hereof? and this section, a supplemental order shall be so issued providing for transmission to the said depositories of revised dollar amounts that will te sufficient to provide for making the payments contemplated by this section; (b) If any Parity Securities are paid or re- deemed prior to the respective maturities thereof, a supplemental order may be issued providing for the transmission to the said depositories (or any of them) of revised dollar amounts; provided, that the revised dollar amounts specified in such sup~ plemental order shall be sufficient to provide for the payments herein contemplated in respect of the’ Parity Securities that will be outstanding after such payment and redemption. Each supplemental order issued to the State Department of Revenue shall contain a certificate or certificates signed on behalf of such depository, stating that the dollar amounts provided in such supplemental order to be transmitted to such depository will be sufficient to provide for payment of the principal of and the interest on the Parity Securities for which the said depository is paying agent (excluding, however, any principal and interest for payment . of which other funds are then available as referred to in the proviso at the end of the first sentence of this section), at the respective maturities of such principal and interest, and for payment of the paying asent fees of the said depository --in respect of the said Parity Securities for which the said appository is paying agent, as such fees become due and pay— ~ able, Each depository for the Special Fund shall pay in- to that portion of the Special Fund held by such depository those sums paid to it by the said Department pursuant to clause (i) of. the first sentence of this Section, and shall - deposit in a special supplemental account the sums paid to it - pursuant to clause (ii) of the first sentence of this Sec- tion, and shall apply the moneys in the said supplemental account for payment of the fees of such depository as pay— ing agent for those of the Parity Securities that are pay- able at the principal office of the said depository. ¥ Page 14 =: PAGE -28- Section 12. Depositories for Special Fund. The City confirms its designations, heretofore made in Ordinance No. 1024 and in Ordinance No. 1251, as Amended, of The Merchants National Bank of Mobile in the City of Mobile, Alabama (including any successor to the said bank), as depos- itory for the Special Fund insofar as the Special Fund re-~ lates to moneys deposited therein in respect of, and measured by, the principal of and interest on the 1965 Parity Securi- ties and the 1970 Warrants. , The City also confirms its designation, heretofore made in Ordinance No. 1205, of Exchange Security Bank ine the City of Birmingham, Alabama (including any successor to the said bank), as depository for the Special Fund insofar as the Special Fund relates to moneys deposited therein in respect of, and measured by, the principal of and interest on the 1969 Warrants. Peoples National Bank of Huntsville in the City of Huntsville, Alabama, including any successor to the said pank, is hereby designated as the depository for the Special Fund insofar as the Special Fund relates to moneys deposited therein in vespect of, and measured by, the principal of and interest on the Warrants. . The City reserves the right from time to time of designating one or more other bank or banks as additional depository or depositories 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 hereafter be issued. Section 13, Trust Nature of and Security for the Special Fund. ‘The Special Fund shail be and at all times remain public funds impressed with a trust for the purpose for which the Special Fund is herein created. Each depository for any part of the Special Fund shall at all times keep the moneys on deposit with it in the Special Fund continuously secured for the benefit of the City and the holders of the Parity Secvrities either (a) by holding on deposit, as collateral security, direct general obligations of the United States cf America or ob- ligations the principal of and interest on which are un- conditionally guaranteed by the United States of America, ~ or other marketable securities eligible as security for the deposit of trust funds under regulations of the Comp- troller of the Currency, having a market value (exclusive of accrued interest) not less than the amount of moneys on deposit in the Special Fund or (bo) if the furnishing of security in the manner provided in the foregoing sub- ’ section (a) 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 portion of the moneys on deposit in the Special Fund that may be insured by the Federal Deposit Insurance Corporation or by any agency of the United States of America that may succeed to its functions. Page 15 an “ - = 5 1 3 1 1 2 789 142 79 20 93.221176 PAGE 5 1 3 1 1 3 892 141 78 21 32.745903 -29-— 2 1 4 0 0 0 218 276 1183 168 -1 3 1 4 1 0 0 218 276 1183 168 -1 4 1 4 1 1 0 424 276 911 40 -1 5 1 4 1 1 1 424 279 140 25 95.734406 Section 5 1 4 1 1 2 588 276 52 29 89.768242 14. 5 1 4 1 1 3 687 281 85 34 94.707687 Form 5 1 4 1 1 4 790 282 40 23 96.620384 of 5 1 4 1 1 5 850 282 177 34 89.453712 Warrants. 5 1 4 1 1 6 1074 282 59 24 94.009247 The 5 1 4 1 1 7 1155 283 180 32 96.667900 Warrants, 4 1 4 1 2 0 218 313 1183 34 -1 5 1 4 1 2 1 218 313 59 24 96.373596 the 5 1 4 1 2 2 301 314 158 29 96.443520 Coupons, 5 1 4 1 2 3 486 314 58 23 96.787277 and 5 1 4 1 2 4 566 314 58 24 96.888542 the 5 1 4 1 2 5 648 315 199 29 95.884819 provisions 5 1 4 1 2 6 874 317 57 23 96.368042 for 5 1 4 1 2 7 953 318 56 22 96.368042 the 5 1 4 1 2 8 1035 317 198 30 96.261139 assignment 5 1 4 1 2 9 1258 318 143 24 96.027596 thereof 4 1 4 1 3 0 220 348 1180 36 -1 5 1 4 1 3 1 220 348 99 25 95.493416 shall 5 1 4 1 3 2 340 350 39 23 96.052307 be 5 1 4 1 3 3 404 349 38 24 96.834908 in 5 1 4 1 3 4 465 349 260 30 95.072472 substantially 5 1 4 1 3 5 749 351 57 24 96.466537 the 5 1 4 1 3 6 833 351 179 30 96.859573 following 5 1 4 1 3 7 1036 352 114 30 96.246773 forms, 5 1 4 1 3 8 1174 353 81 23 93.279510 with 5 1 4 1 3 9 1279 359 121 25 87.675079 appro- 4 1 4 1 4 0 219 381 1179 30 -1 5 1 4 1 4 1 219 381 119 30 96.360725 priate 5 1 4 1 4 2 363 382 198 25 96.456833 insertions 5 1 4 1 4 3 587 384 58 23 95.466331 and 5 1 4 1 4 4 668 384 198 24 90.020363 variations 5 1 4 1 4 5 891 384 146 26 73.919708 therein 5 1 4 1 4 6 1054 386 38 23 73.919708 to 5 1 4 1 4 7 1118 385 139 25 96.564278 conform 5 1 4 1 4 8 1279 387 40 24 96.861343 to 5 1 4 1 4 9 1339 387 59 24 96.850708 the 4 1 4 1 5 0 218 415 360 29 -1 5 1 4 1 5 1 218 415 200 29 96.037636 provisions 5 1 4 1 5 2 442 417 136 24 96.549034 hereof: 2 1 5 0 0 0 1530 2816 97 1 -1 3 1 5 1 0 0 1530 2816 97 1 -1 4 1 5 1 1 0 1530 2816 97 1 -1 5 1 5 1 1 1 1530 2816 97 1 95.000000 2 1 6 0 0 0 1628 2816 53 1 -1 3 1 6 1 0 0 1628 2816 53 1 -1 4 1 6 1 1 0 1628 2816 53 1 -1 5 1 6 1 1 1 1628 2816 53 1 95.000000 Page 16 a PAGE -30- (Form of Warrant) No. . $5,000 UNITED STATES OF AMERICA STATS OF ALABAMA CITY OF PRICHARD GENERAL OBLIGATION WARRANT . : SERIES 1971 The City Treasurer of the City of Prichard (herein called the 5 1 6 1 2 4 625 810 135 33 95.208267 city), a municipal corporation in the State of Alabama, is hereby ordered and directed to pay to Hugh Morrow, Jr. | » or asSigns, the principal sum of FIVE THOUSAND DOLLARS on the lst day of May, 19, upon surrender hereof on or after said date, with interest thereon from the date hereof until the waturity hereof at the rate of 77 per annum, payable semiannually on May 1 and November 1 in each year upon surrender of the appropriate interest coupons hereto attached as the same respectively become due, This warrant and the interest coupons applicable hereto shall bear interest at the rate of 8% per annum after their respective maturities and shall be payable in lawful money of the United States of America at the principal office of Peoples National Bank of Huntsville in the City of Huntsville in the State of Alabama. This warrant is one of an issue of warrants (herein called the 5 1 9 2 1 4 622 1628 198 30 96.053581 warrants) in the authorized princi- pal amount of $720,000, consisting of warrants numbered from 1 to 144, inclusive, and has been issued pursuant to the applicable provisions of the constitution and laws of Alabama, including particularly Sections 253 and 466 of Title 37 of the Code of Alabama of 1940, for purposes for which the city has the power to issue its warrants. 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 payment of the principal of and interest on which the full falth and credit of the city have been irrevocably pledged. Page 17 > ; PAGE =31- In addition thereto the city has, in the proceedings author-— izing the issuance of the warrants, specially and irrevo~ cably pledged for payment of said principal and interest at their respective maturities sO much as may be necessary for such purpose of the special privilege and license tax of the city levied by its Ordinance Ho, 1245, as amended, and measured by the gross receipts of certain businesses (to~ gether with the proceeds from the said tax) to the extent that the said tax is imposed with respect to businesses conducted within the corporate limits of the city (the said tax to the extent so imposed being herein called the 4 1 2 2 2 0 194 640 1179 49 -1 5 1 2 2 2 1 194 641 97 23 55.485970 Gross 5 1 2 2 2 2 317 640 158 30 94.765724 receipts 5 1 2 2 2 3 500 642 117 33 65.440231 tax); the said Special pledge of the gross receipts tax and its proceeds for the benefit of the ware rants being on a parity with special pledges thereof for * the benefit of certain outstanding securities of the city heretofore issued, ineluding (1) certain bonds and warrants dated May 1, 1965, (411) certain warrants dated May 1, 1969, and (i141) certain warrants dated May 1, 1970 (the said seu curities dated respectively on May 1, 1965, May 1, 1969, and May 1, 1970, being herein called the 5 1 2 2 10 9 1045 928 224 32 93.095673 Outstanding 5 1 2 2 10 10 1291 933 80 24 42.277908 Par- 4 1 2 2 11 0 187 943 1144 48 -1 5 1 2 2 11 1 187 943 58 29 93.575012 ity 5 1 2 2 11 2 256 944 271 33 83.575317 Securities), In said proceedings the city reserved the privilege, upon compliance with certain requirements set forth in the said proceedings, of issuing additional securities and securing them by a pledge of the gross re~- ceipts tax and its proceeds, on a parity with the afore- Said pledges thereof for the benefit of the warrants and the Outstanding Parity Securities, 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 repistered in the manner provided by law; that all conditions, actions 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 exist, have been performed, and have happened; and that the indebtedness evidenced and ordered paid by this warrant, topether with all other indebtedness of the city, was at the tine 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 coupons hereunto appertaining may be transferred by delivery with- out 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 such counon, regardless of the manner in which he shall have acquired possesSion is au- thorized 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 de~ fenses or equities or claims of ownership enforceable Page 18 2a PAGE ~32- against his tranferor or any person in the chain of title and before the naturity 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 assign- ment is made, the city may treat any person in possession of this warrant, regardless of how such possession may have been acquired and-vregardless of the genuineness or effectiveness of any assignment, as the absolute owner hereof for all pur- poses, and payment to any such person shall discharge all ob- ligations hereunder. IN WITNESS WHEREOF, the city has caused this ware rant to be executed in its behalf by a facsimile of the sig- nature of its mayor, has caused a facsimile of its official seal to be hereon imprinted, has caused the execution of this warrant and the said seal to be attested by the signature of its city clerk manually subscribed hereon, has caused the an- nexed coupons to be executed and attested with facsimiles of the signatures of said officials, and has caused this war- rant to be dated May 1, 1971. CITY OF PRICHARD By its Mayor Attest: City Clerk Page 19 PAGE +33- (Form of Coupon) Coupon No. $175.00 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 One Hundred Seventy-five and 00/100 Dollars, upon . Surrender of this coupon at the principal office of Peoples - National Bank of Huntsville in the City of Huntsville in the State of Alabama, being six months' interest then due on the General Obligation Warrant, Series 1971, of the Cxty of Prichard, Alabama, dated May 1, 1971, numbered CITY OF PRICHARD By - its Mayor Attest: City Clerk (Form of Assignment) For value received, this warrant and the indebted- ness evidenced and ordered paid thereby are assigned, with- out recourse or warranties, to Page 20 . PAGE -34- : Section 15. Provision for Payment at Par. The bank at which the Warrants and the Coupons shall at any will make, out of the funds Supplied to it for that pur-~ pose, all remittances of principal of and interest on the Warrants and the Coupons in bankable funds at par and without deduction for exchange, fees or expenses. The City agrees with the holders of the Warrants and the Cou- expenses which may be made by the said bank in the makin of remittances in bankable funds of the principal of and interest on any of the Warrants and the Coupons, Section 16. Creation of Contract. The provi- sions of this ordinance” shal1 constitute a contract bew tween the City and each holder of the Warrants and the Coupons, . Section 17. Provisions of Ordinance Severable, The various provisions of this ordinance are hereby de- clared 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 18. Sale of the Warrants. The Warrants are hereby sold to Watkins, Morrow & Cov, at the following purchase prices: Year of Percentage of Price for Aggregate Purchase Maturity Value Pepresented each Price for Warrants of of Warrant by Purchase Price Warrant Applicable Maturity 1972 99% $4,950.00 $ 49,500.00 1973 98~1/2% 4,925.00 59,100.00 1974 97~1/2% 4,875.00 68,250.00 1975 975 4,850.00 72,750.00 1976 96.20% 4,810.00 76,960.00 1977 95=1/2% 4,775.00 81,175.00 1978 95% 4750.00 85,500.00 1979 94-1/2% 4,725.00 94,500.00. . 1980 94,05909% 4,702.95 103,465.00 plus acerued int the date of the made payable to chaser of the by the said purchaser, ized and directed to deliver thereto all of the Co ment to the City of t The figures set aggregate of wy an aggregate pure Warrants and qa 2 to the sai Sity and aa expenses and attorney's Q ” allowsnes £¢ erest on the Warra delivery thereof, Hugh Morrow, Warrants, in ac The C he said ub of: nts from May 1, 1971, to The Warrants shall be Jr., the nominee of the pur~ cordance with directions given ity Treasurer ig hereby author- the Warrants, upons, to the said purchaser upon pay-= purchase price, having attached and. the Page 21 . : PAGE ~35- Section 19. Use of Proceeds from the Warrants. The proceeds from the saie of the Warrants shall be applied as follows: (a) That part of the said proceeds which represents accrued interest on the Warrants from May 1, 1971, to the date of payment there- for, shall be deposited in the Special Fund, pur- suant to the provisions of Section 10(a) hereof; and (b) The principal proceeds from the sale ~ of the Warrants shall be applied for the respec- tive purposes for which they are herein author- ized to be issued. Simultaneously with the issuance of the Warrants, the Short- term Securities shall thereupon be cancelled and retired. ADOPTED this 2nd day of August, 1971. the City Council