HomeMy WebLinkAboutOrdinance No. 79-20 .
� �,,, •
� � , . �
---- ' � , � . .
�� 7�a �
AN ORDINANCE
AUTHORIZING THE ISSUANCE OF $385 ,000 GENERAL OBLIGATION BONDS
* * * * * * * * * * *
WHEREAS, heretofore on the 7th day of April, 1979 , an election
was duly and legally held in the City of Friendswood, Texas , at which
election the following propositions were submitted to the resident
qualified electo�s of said City, to-wit:
.—�
�
)
•� , �_._ , , '
. . ' '.
PROPOSITION NO. 1
"Shall the City Council of the City of Friendswood, Texas, be authorized
to issue bonds in the principal amount of $100,000, for the purpose of
constructing permanent additions, extensions, and improvements to the
City' s existinq Waterworks System, said bonds to mature serially or
otherwise, as may be determined by the City Council of said City, the
maximum maturity being not more than ' twenty (20) years from their date;
and any issue or series of bonds to bear interest per annum (payable
annually or semi-annually) at any rate or rates to be determined with-
in the discretion of the City Council of said City, provided that sucli
rate or rates shall not exceed the maximum rate per annum authorized
by law at the time of the issuance of any issue or series of said bonds;
and shall the City Council be authorized to levy an annual ad valorem
tax on all taxable, property in said City sufficient ta pay the interest
on said bonds as the same accrues and to create a sinking fund suffi-
cient to pay the principal thereof as the same matures, ae authorized
by the Constitution and laws of the State of Texas?"
PROPOSITION NO. 2
"Shall the City Council of the City of Friendswood, Texas, be authorized
to issue bonds in the principal amount of $100, 000, for the purpose of
purchasing land to be used as a site to construct a municipal complex
for said City; said bonds to mature serially or otherwise, as may be
determined by the City Council of said City, the maximum maturity being
not more than twenty (20) years from their date; and any issue or series
of bonds to bear interest per annum (payable annually or semi-annually)
at any rate or rates to be determined within the discretion of the City
Council of said City, provided that such rate or rates shall not exceed
the maximum rate per annum authorized by law at the time of the issu-
ance of any issue or series of said bonds; and ghall the City Council
be authorized to levy an annual ad valorem tax on all taxable property
in said City sufficient to pay the interest on said bonds as the same
accrues and to create a sinking fund sufficient to pay the principal
thereof as the same matures, as authorized by the Cons''titution and
laws of the State of Texas?"
. , _.. . ,., '
. • ' ' .
PROPOSITION NO. 3
"Shall the City Council of the City of Friendswood, Texas, be authorized
to issue bonds in the principal amount of $50, 000, for the purpose of
" purchasing land to be used as public parks in said City; said bonds to
mature seria.Lly or otherwise, as may be determined by�•the City Council
of said City, the maximum maturity being not more than twenty (20)
years from their date; and any issue 'or series of bonds to bear interest
per annum (payable annually or semi-annually) at any rate or rates to
be determined within the discretion of the City Council of said City,
provided that such rate or rates shall not exceed the maximum rate
per annum authorized by law at the time of the issuance of any issue
or series of said bonds; and shall the City Council be authorized to
levy an annual ad valorem tax on all taxable property in said City
sufficient to pay the interest on said bonds as the same accrues and
to create a sinkin� fund sufficient to pay the principal thereof as
the same matures, as authorized by the Co stitution and laws of the
State of Texas?"
, I,
PROPOSITION NO. 4
"Shall the City Council of the City of Friendswood, Texas, be authorized
to issue bonds in the principal amount of $50, 040, for the purpose of
constructing permanent improvements to public parks in said City; said
bonds to mature serially or otherwise, as may be determined by the
City Council of said City, the maximum maturity being not more than
twenty (20) years from their date; and any issue or series of bonds to
bear interest per annum (payable annually or semi-annually) at any rate
or rates to be determined within the discretion of the City Council of
said City, provided that such rate or rates shall not exceed the maxi-
mum rate per annum authorized by law at the time of the issuance of any
issue or series of said bonds; and shall the City Council be authorized
to levy an annual ad valorem tax on all taxable property in said City
sufficient to pay the interest on said bonds as the same accrues and to
create a sinking fund sufficient to pay the �,:r.incipal thereof as the
same matures, as authorized by the Constitution and laws of the State
of Texas?"
PROPOSITION NU. 5
"Shall the City Council of the City of Friendswood, Texas, be authorized
to issue bonds in the principal amount of $250, 000, for the purpose of
� constructing permanent park improvements, to-wit: A swimming pool, £or
said City; said bonds to mature serially or otherwise, as may be deter-
mined by the City Council of said City, the maximum maturity being not
more than twenty (20) years from their date; and any issue or series
of bonds to bear interest per annum (payable annually or semi-annually)
at any rate or rates to be determined within the discretion of the City
Council of said City, provided that such rate or rates shall not exceed
the maximum rate per annum authorized by law at the time of the issu-
ance of any issue or series of said bonds; and shall the City Council
be autharized to levy an annual ad valorem tax on all taxable property
in said City sufficient to pay the interest on said bonds as the same
accrues and to create a sinking fund sufficient to pay the principal
thereaf as the same matures, as authorized by the Constitution and
laws of the State of Texas?"
,� . . , , _�
. , . .
PROPOSITION NO. 6
"Shall the City Council of the City of Friendswood, Texas, be authorized
; to issue bonds in the principal amount of $75,000, for the purpose of
constructing a permanent public building to be uaed as a fire station
in. said City;� said bonds� to mature serially or otherwise, as may be
determinec3 by the City Council of said City, the maximum maturity
being not more than twenty (20) years from their date; and any issue
or series of bonds to bear interest per annum (payable annually or
semi-annually) at any rate or rates to be determined within the dis-
cretion of the City Council of said City, provided that such rate or
rates shall not exceed the maximum rate per annum authorized by law at
the time of the issuance of any issue or series of said bonds; and
shall the City Council be authorized to levy an annual ad valorem tax
on all taxable property in said City sufficient to pay the interest on
said bonds as the same accrues and to create a sinking fund sufficient
to pay the principal thereof as the same matures, as authorized by the
Constitution and laws of the State of Texars?"
PROPOSITION NO. 7
"Shall the City Council of the City of Friendswood, Texas, be authorized
to issue bonds in the principal amount of $30, 000, for the purpose of
constructing permanent street improvements in said City; said bonds to
mature serially or otherwise, as may be determined by the City �ouncil
of said City, the maximum maturity being not more than twenty (20)
years from their date; and any issue or series of bonds to bear interest
per annum (payable annually or semi-annually) at any rate or rates to
be determined within the discretion of the City Council of said City,
provided that such rate or rates shall not exceed the maximum rate per
annum authorized by law at the time of the issuance of any issue or
series of said bonds; and shall the City Council be authorized to levy an
annual ad valorem tax on all taxable property in said City sufficient to
pay the interest on said bonds as the same accrues and to create a sink-
ing fund sufficient to pay the principal thereof as the same matures, as
authorized by the Constitution and laws of the State of Texas?"
PROPOSITION NO. 8
"Shall the City Council of the City of Friendswood, Texas, be authorized
to 'issue bonds in the principal amount of $180, 000, for the purpose of
• constructing improvements and additions to the present public Library;
said bonds to mature serially or otherwise, as may be determined by the
City Council of said City, the maximum maturity being not more than
twenty (20) years from their date; and any issue or series of bonds to
bear interest per annum (payable annually or semi-annually) at any rate
or rates to be determined within the discretion of the City Council of
said City, provided that such rate or rates shall not exceed the maximum
� rate per annum authorized by law at the time of the issuance of any
issue or series of said bonds; and shall the City Council be authorized
to levy an annual ad valorem tax on all taxable property in said City
sufficient to pay the interest on said bonds as the same accrues and to
create a sinking fund sufficient to pay the principal thereof as the
same matures, as authorized by the Constitution and laws of the State
of Texas?°
WHEREAS, the returns of said election were duly certified and
returned to the City Council of said City by the judge and clerks
of said election; and
6VHEREAS, the returns of said election were duly canvassed by
the City Council of said City and said City Council did affirmatively
find that a majority of the duly qualified electors of said City had
cast their votes "FOR" Propositions Nos. 1,6, 7 and 8 and "AGAINST"
Propositions Nos. 2, 3,4 and 5 , and said City Council thereupon by
ordinance duly passed and approved, declared that said Propositions
Nos. 1, 6, 7 and 8 were sustained and adopted and that the City Council
of said City was accordingly authorized to issue the bonds pursuant
to the authority granted by said propositions; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FRIENDSWOOD, STATE OF TEXAS
I.
That the bonds of said City, to be known as $385 ,000 CITY OF
FRIENDSWOOD, TEXAS GENERAL OBLIGATION BONDS, SERIES 1979 , shall be
issued under and in strict conformity with the Constitution and laws
of the State of Texas , and particularly Article 823, Vernon 's Revised
Civil Statutes of Texas, in the total principal amount of Three
Hundred Eighty-Five Thousand Dollars ($385,000) , of whieh funds
$100,000 shall be used for the purpose of constructing permanent
additions , extensions and improvements to the City' s existing waterworks
system, $75, 000 shall be used for the purpose of constructing a fire
station, $30, 000 shall be used for making street improvements and
$180, 000 shall be used for constructing improvements and additions
to the City' s public library.
" II
That said bonds shall be numbered consecutively from One (1)
to Seventy-Seven (77) , both inclusive, in the denomination of FIVE
THOUSAND DOLLARS ($5,000) each, aggregating the principal sum of
Three Hundred Eighty-Five Thousand Dollars ($385 ,000) .
III
That said bonds shall be dated August l, 1979, and shall become
due and payable serially as follows, to-wit:
BOND NOS. DATE OF ��,�i�l:
(Both Incl. ) MATURITY AMOUNT
1 - 3 March l, 1980 $ 15 ,000
4 - 6 March l, 1981 15, 000
7 - 9 March 1, 1982 15, 000
10 - 12 March 1, 1983 15, 000
13 - 15 March l, 1984 15,000
16 - 19 March 1, 1985 20, 000
20 - 23 March 1 , 1986 20, 000
24 - 27 March 1, 1987 20, 000
28 - 31 March 1, 1988 20, 000
32 - 35 March 1, 1989 20,000
36 - 40 March 1, 1990 25, 000
41 - 45 March 1, 1991 25 , 000
46 - 50 March l, 1992 25,000
51 - 55 March l, 1993 25, 000
56 - 60 March l, 1994 25, 000
61 - 65 March 1, 1995 25, 000
66 - 71 March 1, 1996 30 ,000
72 - 77 March l, 1997 30,000
That with the exception of Bonds Nos. One (1) to Forty-Five
(45) , both inclusive, which mature on or prior to March l, 1991, the
• City of Friendswood, Texas, reserves the right to redeem before their
stated maturity all or any of the remaining bonds of this issue , to-wit:
Bonds Nos. Forty-Six (46) to Seventy-Seven (77) , both inclusive, on
March 1, 1991, or any interest payment date thereafter, IN WHOLE OR IN
PART, by paying the principal and accrued interest therefor, to the
interest payment date fixed for redemption; and in case any of said
Bonds Nos. Forty-Six (46) through Seventy-Seven (77) , both inclusive,
shall be called for redemption prior to maturity, notice thereof
IV
That said bonds shall bear interest per annum from their date
until paid at the following rates, respectively:
Bonds No�. 1 to 3, both inclusive, maturing in the year
1980 at the rate of 5. 50% per annum;
Bonds Nos. 4 to 28, both inclusive, maturing in the years
1981 to 1987, both inclusive, at the rate of 7.00% per
annum;
Bonds Nos. 29 to 31, both inclusive, maturing in the year
1988 at the rate of 6.30% per annum;
Bonds Nos. 32 to 40, both inclusive, maturing in the years
1989 to 1990, both inclusive, at the rate of 5.55/ per annum;
Bonds Nos. 41 to 45, both inclusive, maturing in the year
1991 at the rate of 5.60% per annum;
Bonds Nos. 46 to 50, both inclusive, maturing in the year
1992 at the rate of 5.65/ per annum;
Bonds Nos. 51 to 55, both inclusive, maturing in the year
1993 at the rate of 5.70/ per annum;
Bonds Nos. 56 to 60, both inclusive, maturing in the year
1994 at the rate of 5.80% per annum;
Bonds Nos. 61 to 65, both inclusive, maturing in the year
1995 at the rate of 5. 90% per annum;
Bonds Nos. 66 to 77, both inclusive, maturing in the years
1996 to 1997, both inclusive, at the rate of 6.00/ per annum.
said interest being payable on March 1, 1980, and semi-annually
thereafter on September 1 and March 1 in each year while said bonds
or any of them are outstanding, which interest shall be evidenced
by coupons attached to each of said bonds.
shall be given in writing to the Friendswood Bank, Friendswood,
= Texas, at least thirty (30) days prior to the interest payment date
fixed for redemption, and written notice of such redemption shall
be published at least once in a financial journal of general
circulation in the State of Texas, and should such bond or bonds not
be presented for redemption after the same have been duly called
and notice given, as aforesaid, and provisions for payment and
redemption duly made, the same shall cease to bear interest from and
after the interest payment date so fixed for redemption.
IV
That said bonds shall bear interest per annum from their date
until paid at the following rates , respectively:
Bonds Nos. 1 to , both inclusive, maturing in the
years to , both inclusive, at the rate of $
per annum;
Bonds Nos. to , both inclusive, maturing in the
years to , both inclusive, at the rate of �
per annum;
Bonds Nos. to , both inclusive, maturing in the
years to , both inclusive, at the rate of $
per annum;
Bonds Nos. to , both inclusiv, maturing in the
years to , both inclusive, at the rate of $
per annum.
said interest being payable on March 1 , 1980, and semi-annually
thereafter on September 1 and March 1 in each year while said bonds
- or any of them are outstanding, which interest shall be evidenced
by coupons attached to each of said bonds.
V.
That the principal and interest on said bonds shall be payable
without exchange or collection charges, to the holder at the
Friendswood Bank, Friendswood, Texas , in lawful money of the IInited
States of America, upon presentation and surrender of bonds ar properly
annexed interest coupons as they severally mature.
VI
� That in accordance with the provisions of Article 717j-1,
Vernon' s Revised Civil Statutes of Texas , as amended, each of said
bonds shall be executed by the imprinted facsimile signature of the
Mayor and countersigned by the imprinted facsimile signature of the
City Secretary of the City of Friendswood, Texas; and each of the
interest coupons annexed to such bonds shall be executed by the
imprinted facs�mile signature of said Mayor and said City Secretary;
that such imprinted facsimile signatures shall have the same effect
as if each such bond and interest coupon had been manually signed by
each of said officials; that the City Secretary of the City of�
Friendswood, Texas, is hereby authorized to cause the seal of said
City to be imprinted or impressed in facsimile on each of said bonds ;
and that the imprinting or impression of the seal of the City in
facsimile on each of said bonds shall have the same legal effect as
the imprinting or impression of the seal of said City on each of
said bonds. That the registration certificate of the Comptroller of
Public Accounts of the State of Texas (which certificate is to be
printed on the back of each of said bonds as provided for hereinafter
in Section X of this ordinance) shall be manually signed by said
Comptroller or by a Deputy designated in writing to act for said
Comptroller.
VII
That the form of each of said bonds shall be substantially as
follows , to-wit:
NO. $5,000
UNITED STATES OF AAlERICA
STATE OF TEXAS
COUNTY OF GALVESTON •
CITY OF FRIENDSWOOD
GENERAL OBLIGATION BOND,
SERIES 1979
* * * * * * * * * * *
KNOW ALL MEN BY THESE PRESENTS : That the City of Friendswood,
Texas, a municipal corporation duly incorporated under the laws of
the State of Texas , FOR VALUE RECEIVED, acknowledges itself indebted
to and hereby promises to pay to bearer
FIVE THOUSAND DOLLARS
($5, 000) in lawtul money of the United States of America, on the
lst day of March, , with interest thereon from date hereof at
the rate of PERCENT ( $) per
annum; interest payable on March 1 , 1980, and semi-annually thereafter
on September 1 and March 1 of each year, upon presentation of bond or
•
proper annexed interest coupon as they severally mature.
BOTH PRINCIPAL OF and INTEREST ON this bond are hereby made
payable without exchange or collection charges to the holder at the
Friendswood Bank, Friendswood, Texas , and for the prompt payment of
the interest on this bond and the principal thereof at maturity, the
full faith,credit and resources of the City of Friendswood, Texas, are
hereby irrevocably pledged.
(NOTE TO PRINTER: Insert here in Bonds Nos. 46 to 77 , both inclusive ,
the redemption paragraph which is 5ection VIII hereof. )
THIS B4ND is one of a series of Seventy-Seven (77) bonds of like
tenar and effect (except as to number, maturity, interest rate, and
right of prior redemption) , numbered consecutively from One (1) to
i
Seventy-Seven (77) , both inclusive, in the denomination of Five
Thousand Dollars ($5,000) aggregating the principal sum of Three
Hundred Eighty-Five Thousand Dollars ($385 ,000) , of which sum
$100, 000 will be used to construct additions , extensions and
improvements to the City' s existing waterworks system, $75 ,000 will be
used to canstruct a fire sta�ion, $30 ,000 will be used to make street
improvements and $180 ,000 will be used to construct improvements and
additions to the City' s public library.
THE DATE of this bond, in conformity with the ordinance above
referred to is AOGUST 1, 1979 .
IT IS HEREBY CERTIFIED and RECITED that the issuance of this bond
and the series of which it is a part is duly authorized by law and by
a majority vote of the resident qualified electors of the City of
Friendswood, Texas, voting at an election duly held for that purpose
within said City on April 7, 1979; that all acts, conditions, and things
required to be done precedent to and in the issuance of this series of
bonds, and of this bond, have been properly done, performed and have
happened in regular and due time, foxm and manner, as required by law;
tha� suf�icient a�d proper provision for the levy and collection of
taxes has been made , which taxes, when collected, shall be appropriated
exclusively to the payment of this bond, and to the series of which it
is a part, and to the payment of the interest coupons thereto annexed
as the same shall become due, and that the total indebtedness of said
City including this bond and the entire series of which it is a part,
does not exceed any Constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Friendswood, Texas, by its City
Council , has caused its corporate seal to be imprinted or impressed
hereon in facsimile and this bond to be executed by imprinting hereon
the facsimile signature of the Mayor of the City of Friendswood,
. Texas, and countersigned by imprinting hereon the facsimile signature
of the City Secretary of the City of Friendswood, Texas, and the
interest coupons attached hereto to be executed by the imprinted
facsimile signatures of said Mayor and City Secretary (in accordance
with the provisions of Article 717j-1, Revised Civil Statutes of
, Texas , as amended) as of the date of this bond, the FIRST DAY OF
AUGUST, 1979 .
Mayor
COUNTERSIGNED:
City Secretary
(SEAL OF CITY)
VIII
That each of said Bonds Nos. 46 to 77, both inclusive, shall
contain on its face these words, being the redemption paragraph:
THE CITY OF FRIENDSWOOD, TEXAS, hereby reserves the right to
redeem this bond before maturity on any interest payment date on and
after March l, 1991, by paying the principal and accrued interest
therefor to the interest payment date fixed for redemption; and in
case this bond shall be called for redemption before maturity, notice
thereof shall be given to the Friendswood Bank, Friendswood, Texas,
at least thirty (30) days before the interest payment date fixed for
redemption, and notice of such redemption shall be published at
least once in a financial journal of general circulation in the State
of Texas; and should this bond not be presented for redemption after
� the same is properly called and notice given as aforesaid and provisions
for payment and redemption duly made, the same shall cease to bear
interest from and after the interest payment date so fixed for
redemption.
IX
That the form of the interest coupons shall be substantially as
follows, to-wit:
N0. $
ON THE FIRST DAY OF , ,
* (Unless the bond to which this coupon appertains has been properly
called for prior redemption and provisions for payment and redemption
duly made in accordance with its terms) the CITY OF FRIENDSWOOD,
TEXAS, promises to pay to bearer, without exchange or collection
charges to the holder at the Friendswood Bank, Friendswood, Texas,
the sum of DOLLARS ($ ) ,
in lawful money of the United States of America, being the interest
due that day on CITY OF FRIENDSWOOD, TEXAS, GENERAL O�LIGATION BONDS ,
SERIES 1979, dated August 1, 1979 , Bond No.
City Secretary Mayor
* (NOTE TO PRINTER: The expression in the first parenthesis of the
above coupon is to be included ONLY in those coupons affixed to
Bonds Nos. 46 to ?7, both incl.us vi e, which mature on and after
September 1, 1991. )
X
That the bonds authorized herein being a public security
which, under the laws of the State of Texas , is required to be registered
by the Comptroller of Public Accounts of the State of Texas, accordingly,
there shall be printed on the back of each of said bonds substantially
the following certificate, which as to the registration of each of
�said bonds by the Comptroller of Public Accounts af the State of Texas ,
' shall be manually signed by said Comptroller or by a Deputy designated
in writing to act for said Comptroller :
OFFICE OF THE COMPTROLLER
REGISTER NO.
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record in my
office a certificate of the Attorney General of the State of Texas ,
to the effect that this bond has been examined by him as required by
law, and that he finds this bond has been issued in conformity with
the Constitution and laws of the State of Texas , and that it is a
valid and binding obligation upon the City of Friendswood, Texas ,
and said bond has this day been registered by me .
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, this
Comptroller of Public Accounts ,
. State of Texas
XI
That a special fund, to be designated, "GENERAL OBLIGATION BONDS ,
SERIES 1979 , dated August l, 1979 , INTEREST AND SINKING FUND" , shall
be and the same is hereby created, which fund when collected, shall
be used to pay the interest on said bonds , and the principal thereof
as the same matures , and for no other purpose; and that while
said bonds, or any of them or any interest thereon are outstanding
and unpaid, there shall be annually levied and collected a tax upon
all taxable property in said City sufficient to pay the current interest
thereon and to create a sinking fund sufficient to pay each installment
of principal as the same becomes due, or a sinking fund of Two Percent
(2$) , whichever is greater, as required by Article XI , Section 7 , of
the Constitution of the State of Texas, said tax to be based upon the
latest approved tax rolls of said City, with full allowance being
made for delinquencies and costs of collection; and an ad valorem tax
at said rate and amount is hereby levied, and is hereby ordered to be
levied against all taxable property in said City, for each year while
any of said bonds or interest coupons appertaining thereto are outstanding
and unpaid; and said tax shall each year be assessed and collected and
applied to the payment of the principal of and interest on said bands.
, That the City Council hereby declares its purpose and intent to hereby
provide and levy a tax which is legal and which is fully sufficient
to pay the interest on said bonds as it falls due and to pay the
principal of said bonds at maturity, which tax will also fully comply
each year with Article XI, 5ection 7 of the Constitution of the State
of Texas; and it has determined that there exists available taxing
power and authority in the City for said purpose which is adequate
to permit the levy of a legally sufficient tax therefor, taking into
consideration all other outstanding obligations of said City.
XII
That the City Council of said City hereby specially covenants
and agrees with the owners and holders of the bonds authorized hereby
and with all subsequent owners and holders from time �o time of said
bonds that:
1. The City Council of said City will promptly utilize the
proceeds from the sale of said bonds (other than accrued interest
to date of delivery) for the purposes set forth in Section I
of this ordinance; and
2. No portion of the bonds hereby authorized is issued as a
part of an issue, all or a major portion of the proceeds of which
are reasonably expected to be used directly or indirectly to
a. acquire securities (within the meaning of 5ection
165 (g) (2) (A) of the Internal Revenue Code) or obligations
other than obligations described in Section 103 (a) (1) of the
Internal Revenue Code (except for a temporary period of time
to the extent permitted by 103 (c) (4) (A) of the Internal
R�venue Code) which may be expected at the time of the
issuance of such issue to produce a yield over the term of
the issue which is materially higher (taking into consideration
any discount or premium) than the yield on obligations of
' such issue; or
b. replace funds which were issued directly or indirectly
to acquire securities or obligations described in subparagraph
"a." ; and
3. The City Council will take such action in accordance with and
as required by regulations prescribed from time to time by the
Secretary of the Treasury or his delegate to carry out the purposes
of Section 103 (c) of the Internal Revenue Code so that no portion
of the bonds authorized hereby shall be classified as an "arbitrage
bond" within the meaning of Section 103 (c) of the Internal Revenue
Code. Specifically, but not by way of limitation, said City
Council covenants that it will make no use of the proceeds of
r such bonds so as to cause said bonds to be arbitrage bonds within
the meaning of Section 103 (c) of the Code as interpreted by
Sections 1. 103-13 and 1.103-14 of the Regulations promulgaged
for such purpose by the United States Treasury Department
interpreting such Code section; and
4 . Said City Council covenants that it will not permit to be
deposited to the credit of the Interest and Sinking Fund or
applied to the payment of the principal of or interest on the
bonds authorized hereby, any proceed5 from any grant, donation,
or income received from the United States Government, whether
pursuant to agreement or otherwise, if such deposit or application
would result in interest payable on said bonds being includable
in whole or• in part in Gross Income, under Section 103 ot the
Internal Revenue Code, for Federal income taxes.
XIII .
That the Mayor of the City of Friendswood, Texas, shall be and
he is hereby authorized to take and have charge of all necessary
records pending investigation by the Attorney General of the State
of Texas , and shall take and have charge and control of the bonds
herein authorized pending approval by said Attorney General and
registration by the Comptroller of Public Accounts of the State
of Texas. After the bonds have been approved by said Attorney
General, the bonds shall be delivered to the Comptroller of Public
Accounts for registration, and said Comptroller is hereby authorized
to deliver the registered bonds to City rlational Bank, Austin, Texas,
where they will be picked up and paid for by the purchaser.
XIV
That the bid of Rauscher Pier.ce Refsnes, Inc.
for
the bonds authorized at the price of par and accrued interest to date
of delivery plus a cash premium of $ -�- , having been
heretofore accepted, sale of said bonds to said purchaser shall be
and the same is hereby confirmed; and the Mayor and City Secretary
of the City of Friendswood, Texas , are hereby authorized, directed
and instructed to do all things necessary to deliver said bonds to said
• , � . ,
purchaser at and for the aforesaid price.
i
�
That the purchaser above named, having purchased the bonds herein
authorized subject to the final approving opinion of Messrs. Dobbins ,
Harris & Gonzalez , Attorneys at Law, San Antonio, Texas, approving the
validity of said bonds, which approving opinion is to be dated as of
the date of delivery of and payment for said bonds herein authorized,
the printing of a true and correct copy of said approving opinion on
the reverse side of each of said bonds with an appropriate certificate
pertaining thereto, executed by the facsimile signature of the City
Secretary of the City of Friendswood, Texas, is hereby approved and
authorized.
PASSED, ADOPTED AND APPROVED on this, the (�� day of
August, �979.
•,
. ,;� �
'- �' -�
Mayor
ATTEST:
.
City Secretary
(SEAL OF CITY)