Page 1 ORDINANCE NO. 886 An Ordinauce £o Provide For The | ASsuauce BY “ne City UL Prich- | aru ul & Generar Uougabon KerunMig Warrant ‘whe remecipat Amount OF 5100,000, Bei 11 ORDAINDD by the City Cuuncil of the City ot Prichard | in ume Scale of Asabama as fol | LUWS:? section 1. DEFINITION. The following words and phrases and ociners evidentiy intended as the equivalent tnereof shall, in the evesnce of clear implication here- ia otherwise, be given the tol- ivwing respeciive interpretations iu this ordinance: : “City” means the municipal corporation of Prichard, in the s.ave of Alabama, and any corpo- vation resulting trom any merger vr consolidation to which it or its successors may be a party. “Council” means the governing | body of the city as at any time constituted. “Gross receipts tax” means the lienese tax referred to in Section 4 hereof, “Interest payment date” means the first day of each Deember. “Outstanding note” means the General Obligation Tax Antici- pation Note of the city dated Uctober 31, 1960 which is refer- zed to in Section 2 hereof. “Special fund” means the City o: Prichard Warrant Fund of 1960 created in Section 9 hereof. “Warrant” means the warrant authorized to be issued by the «ty in Section 3 hereof. “Herein”, “hereof”, “hereunder” and other equivalent words refer ic this ordinance as a whole and not solely to the particular por- tion thereof im which any such word is used. The definitions herein set forth shall be deemed applicable wheth- er the words defined are herein used in the singular or plural. Any pronoun or pronouns, wherever used herein, shall be deemed “to include both singular aud plural and to cover all gend- ers, Section 2. FINDINGS BY THE COUNCIL. The council has caus= ed an investigation to be made of tne outstanding obligations of the city and, as,a result of such in-, vestigation, has determined and does hereby declare that ‘the fol- lowing statements are true: Act- ing pursuant to the provisions of 4 resolution adopted by the coun- cil on October 31, 1960, the city did on October 31, 1960, borrow from The Merchants National Bank of Mobile the principal sum of $100,000 for the purpose of raising funds with which to pay obligations of the city necessary to carry on the essential govern- mental functions of the city and in anticipation of the collection of taxes and of the city, all as authorized by Section 466 of Title 37 of the Code of Alabama of 1940. In evidence of the money so borrowed, the ctiy did on October 31, 1960, deliver to the said bank the General Obligation Tax Anticipation Note of the city payable to the order of the said —benison-October 31, 1961, bearing interest from its date until its maturity at the rate of 4% per annum, with the privilege re- served therein of prepaying all or any part of the principal there- of prior to its maturity, without penalty, but upon payment of the interest which shall have accrued on the then unpaid portion of the principal to the date of such pre- payment. The outstanding note was executed and the corporate seal of the city was affixed there- to by the then president of the council, acting as ex officio mayor pro tempore 6f the city who so acted during the absence of the then mayor who was unable to act because of illness, and the city clerk attested the same by ‘affixing her signature thereto, whereupon the city treasurer reg- istered the outstanding note in the records of the city maintain- ed by her as a claim against the city and the outstanding note was delivered to the said bank against payment in full thereof by the said bank. The action of the council in so authorizing the outstanding note, and the actions of the said officers in executing, sealing, attesting and delivering the same, are all hereby ratified and approved. It is her:by recog- nized and asknowledged that the outstanding note is a valid gener- al obligation of the city in the said principal amount, and that for the payment of the principal thereof and interest thereon the full’ faith and credit of the city have been validly and irrevoca- bly pledged. In the opinion of the council it would be advantageous to the city if the outstanding note should be refunded at this time by the issuance of the warrant referred to in Section 3 hereof in order ‘that the principal in- Sbtedness evidenced by the out- | standing note may be made to mature in orderly installments over a period of years within the ability of the city to pay. Section 3. AUTHORIZATION OF THE WARRANT. For the purpose of refunding the out- slanding note and acting pursuant to the authority so to do contain- ed in the applicable provisions of the constitution and laws of the State of Alabama,, including particularly Section 253 of Title 37 of the Code of Alabama of 1940, there is hereby authorized to be issued’ and delivered to The Merchants National Bank of Mo- bile one General Obligation Re- funding Warrant of the city in the principal amount of $100,000 which shall be dated December 1960, and shall mature in ten annual principal installments in the amount of $10,000 each, one of which shall be payable on December 1 in each of the years from 1961 to 1970, inclusive. The warrant shall bear interest from December 1, 1960 until its re- spective maturities. at the rate of 4% per annum payable, with respect to the unpaid balance of the principal thereof, on the first day of each December commenc- ing on December 1, 1961, and con- tinuing until and at the maturity of each such principal install- ment; and at the legal interest rate after the said respective maturities, Section 4. EXECUTION OF THE W. “rT The warrant 7 the corpo- “all be af- fixed thereto by the mayor, and the city cierk shail atest the same by afiixing her signature inereto. ‘Lhe warrant snali pe registered by the city ceasurer in the records maintasned by her as a claim against the city and against the special tax herein- aiter pledged therefor. Section 5. PLACE AND ME- DIUM OF PAYMENT OF THE WARRANT. The principal of and interest on the warrant shall be payable in lawful money of the United States of America at the Preihard Branch of The Mer- chants National Bank of Mobile, in the City of Prichard in the State of Alabama. Section 6. PREPAYMENT PRIVILEGE. The city reserves the privilege of prepaying all or part of the principal of the war- rant at any time prior to maturi- ty; -brovided, that if a portion only of the principal then remain- ing unpaid of the warrant should be paid prior to maturity then the portion of the principal so prepaid must be an amount equal to $10,000 or a multiple thereof and the portion of the principal so prepaid shall be credited on that part of the then outstanding principal having the then latest maurity; and provided, further, that all unpaid interest accrued to the date of such prepayment on the principal so prepaid prior to maturity shall be paid simul- taneously with the payment of the principal so prepaid. Section 7, GENERAL OBLIGA- TION AND SPECIAL PLEDGE. The indebtedness evidenced and ordered paid by the warrant is and shall be a general obligation of the city for thé payment of the principal of and interest on which the full faith and credit of the city are hereby irrevocably pledg- ed. In addition thereto, as securi- ty for payment of the principal of and interest on the warrant, and as_a part of the contract whereunder the money evidenced thereby is borrowed, the city a- grees to hereby levy, collect and apply, and hereby specially and irrevocably pledges, to the ex- tent necessary to pay the princi- pal of and interest on the war- rant at the respective maturities of said principal and- interest, that certain special gross re- ceipts tax levied by Ordinance No. 880 of the ¢ity with respect to certain business activities to the extent to which the same is levied within the corporate limits” of the city; provided, however, that so long as there is no default in the payment of the principal of o1 interest on the warrant the proceeds from the gross receipts tax shall be used to pay the said principal and interest at their re- spective maturities and the bal- ance of the proceeds therefrom remaining in each fiscal year of the city while no such default exists may be used by the city for any lawful purpose. To what- ever extent, if any, the proceeds of the gross receipts tax avail- able for said purpose may not be sufficient to pay the principal of and intereston the war-- rant at the respective ma- turities of said principal and in- terest, the city agrees to use for said purpose so much of the gen- eral revenues of the city derived form other sources and available for said purpose as may be nec- essary to pay said principal and interest at their respective ma- turities. The city represents and guarantees that upon delivery of the warrant as herein authorized there will be no outstanding a- greement or pladge with respect to the proceeds of the gross re- ceipts tax other than the agree- ments and pledge herein contain- ed, that the said agreements and pledge herein made respecting the gross receipts tax will constitute the first pledge thereof and of its proceeds, and that the agreements and pledge respecting the gross receipts tax and of its proceeds herein made shall be and remain prior and superior to any and all pledges and agreements re- specting the same that may here- after be made by the city. Section 8. MAINTENANCE OF THE GROSS RECEIPTS TAX. The city agrees that so long as any of the principal of or interest on the warrant 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 aggre- gate annual amount of the pro- ceeds thereof. Section 9. CREATION OF SPECIAL FUND. There is hereby created a special fund, which shall constitute a trust fund, the full name of which shall be the City of Prichard Warrant Fund of 1960. The special fund’ shall be continued so long as the prin- cipal of or interest on any of the warrant remains unpaid. The city agrees to pay into the special fund ‘during each successive month, commencing with the month of December 1960, an a- mount equal to one-twelfth of the interest plus one-twelfth of the principal payable on the war- rant on the then next ensuing December 1. The depository for the special fund is hereby au- thorized and directed to pay out of the moneys on deposit therein the installments of principal and interest on the warrant as said principal and interest respectiive- ly mature. Sectioin 10. FORM OF THE AR . The warrant and the provisions for assignment thereof shall be in substantially the fol- lowing form: “(Form of Warrant) $100,000 $100,000 UNITED STATES OF AMERICA STATE OF ALABAMA CITY OF PRICHARD GENERAL OBLIGATION . REFUNDING WARRANT The City Treasurer of the City of Prichard (herein called “the city”), a municipal corporation in the State of Alabama, is here- by ordered to pay to The Mer- chants National Bank of Mobile, or its assigns, the principal sum of ONE HUNDRED THOUSAND DOLLARS in ten annual installments of $10,000 each, payable on the Ist day of December in each of the years from 1961 to 1970, inclu- ‘the principal of . sive, with interest at the rate of 4% per annum on the then un- paid balance of principal, which interest shall be payaivpie on tae first day of each June until and at the maturity of each principal installment, Both the peincipat hereof and the interest hereon shall bear interest at the rate of 6% per annum after their re- spective maturities, and shall be payable in lawful money of the United States of America at the Prichard Branch of The Mer- chants National Bank of Mobile in the City of Prichard in tne State of Alabama. ei The city reserves the privilege of prepaying all or part of the principal of this warrant at any time prior to maturity; provided, that if a portion only of the prinicipal then remaining unpaid shall be paid prior to maturity the portion so prepaid must be an amount equal to $10,000 or a mul- tiple thereof, and the portion of the principal so prepaid shall be deemed to be that part of the then outstanding principal hav- ing the latest maturity; and pro- vided, further, that all unpaid interest on the then unpaid prin- cipal accrued to the date of such prepayment shall be paid simul- taneously wat we it of the principal so : This warrant has been issued pursuant to the applicable pro- visions of the constitution and laws of the State of Anes an cluding particularly ion of Title 37 of the Code of Ala- bama of 1940, and an ordinance of the city duly adopted by the governing body of the city, for the purpose of refunding an out- standing valid obligation of the | city in like aggregate principal amount. The indebtedness evi- denced and ordered paid by this warrant is a general obligation of the city for the payment of and interest on which the full faith and credit | of the city have been irrevocably pledged. In addition thereto, as security for the payment of said principal and interest, and as part of the contract whereunder the borrowing evidenced’ hereby was made, the city has agreed to levy, collect and apply, and has irrevocably pledged, to the ex- tent necessary to pay the said principal and interest at their re- spective maturities, that special gross receipts license tax provid- ed for and levied in Ordinance } No. 880 of the city to the extent to which the same is levied with- in the corporate limits of the city. It is hereby certified and re- cited that the indebtedness evi- denced and ordered paid by this warrant is lawfully due without condition, abatement or offset of any description; that this war- rant has been registered in the manner provided by law; that all conditions, actions and things re- quired by the constitution and laws of the State of Alabama to exist, be performed or happen precedent to and in the issuance of this Me exist, have been and that — denced and ordered paid warrant, together with all other indebtedness of the city, was at} the time the same was created and is now within every debt and other limit prescribed by the constitution and laws of the State of Alabama. | IN WITNESS WHEREOF, the city has caused this warrant to be executed and its official seal to be hereto affixed by its mayor, has caused the same to be at- tested by its city clerk, both of whom have hereunto subscribed | their signatures, and has caused this warrant to be dated Decem- ber 1, 1960. CITY OF PRICHARD Its Mayor x (Form of Assignment) For value received, this war- rant and the indebtedness there- by evidenced and ordered paid are hereby transferred and as- sgned, without recourse or war- tantly, to. See CERTIFICATE OF REGISTRATION I, the undersigned City Clerk of the City of Prichard, Alabama, hereby certify that the foregoing | warrant has been duly registered by me in the records of said city as a claim against said city and | the gross receipts license tax | pledged therefor. rr . City Clerk Section 11. ‘REA’ OF. CONTRACT. The provisions 0: this ordinance shall constitute a contract between the city and each successive holder of the warrant. - Section 12. PROVISIONS OF ORDINANCE SEVERABLE. The various provisions of this ordi- nance are hereby declared to be severable. In the event any pro- vision hereof should be held in- valid by a court of competent jurisdiction such invalidity shall not affect any other portion of this ordinance. | Section 13. DELIVERY OF THE WARRANT IN EXCHANGE FOR THE OUTSTANDING NOTE. The warrant shall be de- livered to The Mer its Nation- al Bank of Mobile exchange for and upon surrender to the city of the outstanding note. The city treasurer is hereby authoriz- ed and directed to effect such delivery and exchange and to pay to the said bank the interest ac- | crued on the outstanding war- rant to December 1, 1960, which is the date of the warrant. Upon receipt of the outstanding note ‘the same shall thereupon be can- celled and retired. Adopted this 5th day of Dec- ember, 1960. N. J. MOULYET, President of the City Council Authenticated: BERNIECE H. CENTANNE, City Clerk Approved this-5th day of Dec- ember, 1960. V. 0. “CAPPS, Mayor The Citizen. Deeember 15, 1960.