Page 1 wd 1242 — , ; ORDINANCE NO. a4 aoe ' ———e my AN ORDINANCE AUTHORIZING THE BORROWING BY THE CITY OF PRICHARD, ALABAMA, OF $250,000 AND THE ISSUANCE IN EVIDENCE THEREOF OF THE CITY'S GENERAL OBLIGA- TION WARRANT IN THE PRINCIPAL AMOUNT OF $250,000 BE IT ORDAINED by the City Council (herein called the 5 1 6 1 2 3 456 790 172 29 95.927330 Council) of the City of Prichard, Alabama (herein called the 5 1 6 1 3 4 617 824 133 32 94.720505 City), as follows: Section 1, Findings. The Council has deter- mined and hereby finds and declares as follows: In or- der to provide adequate fire protection for the City and its inhabitants, it is necessary that an additional fire Station be constructed in the City; it will also be advan-~ tageous to the City and its inhabitants and in the public interest that the City acquire, provide and construct a building to be used by the City and its inhabitants as a public library and for public recreational purposes; the cost to the City of acquiring, providing and constructing the said fire station and the said library and recreational building (herein together called the 5 1 7 1 12 6 977 1294 237 33 95.120506 Buildings), as the said cost is presently estimated by the Council, will be in - excess of $250,000; the City does not have available from its current funds moneys sufficient to pay the cost of ace quiring, providing and constructing the Buildings; and it . is necessary, desirable, and advantageous to the City that it borrow temporarily the sum of $250,000 on its general faith and credit for the purpose of paying the said costs and that the City issue the warrant hereinafter authorized in evidence of such borrowing. Section 2, Authorization of Warrant. Pursuant to the applicable provisions of the constitution and laws of the State of Alabama, including particularly Section 466 of Title 37 of the Code of Alabama of 1940, and for the purpose of raising funds with which to pay costs of acquiring, providing and constructing the Buildings, the City is hereby authorized to borrow from The Merchants National Bank of Mobile (herein called the 5 1 10 1 8 8 1096 1936 113 29 88.817345 Bank) the principal sum of $250,000 and in evidence of the money so borrowed, the City is hereby authorized to issue and. deliver to-the Bank at the time of the borrowing one Gen- eral Obligation Warrant (herein called the 5 1 10 1 12 7 1096 2068 174 31 95.912941 warrant) of the City in the principal amount of $250,000. The-warrant shall be drawn on the city treasurer, shall be dated May 1, 1970, shall be payable July 15, 1970, shall bear interest from the date of its delivery until its maturity at the rate of 6% per anniim payable at maturity, shall be made payable to the Bank or its assigns, and shall be payable at the principal office of the Bank in the City of Mobile, Alabama. be fretad i PAgs wont Fe Ps ¥ Page 2 enone Section 3. Prepayment Privilege. The City re- serves and shall have the privilege of prepaying the war- rant at any time prior to its maturity, without penalty or premium and without any prior notice, by paying to the holder of the warrant the principal of the warrant and the interest accrued thereon to the date of such payment. _ Section 4, Execution and Registration. ‘The war- rant shall be executed and the corporate seal of the City shall be affixed thereto by the mayor of the City, and the eity clerk shall attest the warrant by subscribing his sig- nature thereon. The warrant shall be registered in the records maintained by the city treasurer as a claim against the City and the taxes and revenues hereinafter specially pledged therefor. The said officers are hereby authorized and directed so to execute and attest the warrant and affix the said seal thereto and make such registration. Section 5, General Obligations; Special Pledge. The indebtedness evidenced and ordered paid by the warrant is and shall be a general obligation of the City for payment of the principal of and interest on which the full faith and credit of the City are hereby irrevocably pledged. In addi-« tion thereto, and as a part of the contract whereunder the money evidenced and ordered paid by the warrant is borrowed and the said loan is made, the City does hereby agree with the holder of the warrant that the City will levy, collect and apply to payment of the principal of and the interest on such warrant, so long as any part thereof remains unpaid, and the City does hereby specially and irrevocably pledge for such payment so much as may be necessary for such payment of the proceeds from that certain special privilege or license tax of the City levied by Ordinance No. 880 of the City adopted October 3, 1960, as amended by Ordinances Nos. 977, 1007, 1182, and 1197 of the City adopted respectively on February 2, 1965, March 1, 1965, February 24, 1969, and April 9, 1969, on persons, corporations and others engaging in the business of selling at retail tangible personal property and on the business of conducting or operating places of amusement, to the extent that the said tax is levied with respect to business conducted within the corporate limits of the City (the proceeds from the said tax, to the extent levied with respect to business conducted within the corporate limits of the City, being herein called the 5 1 9 1 9 8 991 1862 96 23 96.429604 Gross 5 1 9 1 9 9 1112 1862 157 29 95.861328 Receipts 5 1 9 1 9 10 1294 1863 56 22 96.458168 Tax 4 1 9 1 10 0 227 1894 1141 31 -1 5 1 9 1 10 1 227 1894 213 29 86.371704 Proceeds). The pledge herein made of the Gross Receipts Tax Proceeds is subject to all lawful prior charges on the Gross Receipts Tax Proceeds. The City represents that it has no presently outstanding agreements or pledges with respect to the Gross Receipts Tax Proceeds except (a) pledgés and agreements with respect to certain warrants of the City for retirement of which full provision has ‘ been made ‘by irrevocable trust agreements executed and delivered on May 31, 1965; (b) pledges and agreements set forth in the City’s Ordinance Mo. 1024 adopted May 10, 1965, whereunder the City's $823,000 principal amount of General Obligation Secured Refunding Warrants, Series 1965, its Page 3 “$164,000 principal amount of General Obligation Secured Warrants, Series 1965, and its $1,467,000 principal amount of General Obligation Secured Refunding Warrants, Series 1965A, all dated May 1, 1965 (herein called the 5 1 2 1 4 10 1222 448 77 30 91.583542 1965 5 1 2 1 4 11 1323 452 57 23 82.992966 Se- 4 1 2 1 5 0 233 468 1065 41 -1 5 1 2 1 5 1 233 468 213 32 91.060150 curities), were authorized to be issued; and (c): the pledge and agreements set forth in the City's Ordinance No. 1205 whereunder the City's $1,000,000 principal amount of General Obligation Secured Warrants, Series 1969, dated May 1, 1969 (herein called the 5 1 2 1 9 7 873 614 118 24 96.814873 Series 5 1 2 1 9 8 1016 614 76 29 95.697975 1969 5 1 2 1 9 9 1116 617 217 32 95.141800 warrants), were authorized to be issued. The City represents and agrees that the pledge herein made of the Gross Receipts Tax Proceeds shall be and remain prior and superior to any pledges and agree- ments respecting the Gross Receipts Tax Proceeds that may hereafter be made by the City, and that any pledges and agreements that may hereafter be made by the City with re- spect to the Gross Receipts Tax Proceeds shall at all times be and remain subordinate and inferior to the pledge herein made, To that end, the City agrees that, so long as the warrant remains outstanding, the City will not issue any se- curities under the provisions of the said Ordinances Nos. 1024 and 1205 permitting the issuance of additional securi- ties on a parity, as to a pledge of the Gross Receipts Tax Proceeds, with the 1965 securities and the Series 1969 war- rants; provided, however, that the provisions of this sen- tence shall not prevent the issuance by the City of such ad~ ditional parity securities for the purpose of refunding the warrant. & The City further agrees that it will continue the levy of the said special previlege or license tax, at the rates and on the subjects of taxation provided for in the Said Ordinance No, 880, as heretofore amended as aforesaid, so long as any of the principal of or interest on the war- rant remains unpaid. Section 6. Form of Warrant. , The warrant shall ~ be in substantially the following form: