Res 1992-038 - Laserfiche WebLink

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BOND INFORMATION Authority for Issuance The Bonds are issued pursuant to the general laws of the State of Texas, particularly Articles 1111, et seq., V ATCS, and an Ordinance approved by the City Council. Security for Bonds The Bonds are special obligations of the City payable, both as to principal and interest, solely from and secured by a subordinate lien on and pledge of the Net Revenues of the System after the payment of maintenance and operating expenses and the debt service on prior lien bonds outstanding. Maintenance and operating expenses include contractual payments which under Texas laws and their provisions are established as operating expenses. The Bonds are not a charge upon any other income or revenues of the City and shall never constitute an indebtedness or pledge of the general credit or taxing powers of the City. The Ordinance does not create a lien or mortgage on the System and any judgment against the City may not be enforced by levy and execution against any property owned by the City, except Net Revenues. As additional security, there has been established a Reserve Fund which shall be funded in an amount at least equal to the average annual debt service requirements of all outstanding Previously Issued Bonds, and the Bonds and any Additional Bonds issued on a parity with the Bonds. The Reserve Fund will be funded over a sixty month period in accordance with the provisions of the Ordinance (see "Selected Provisions of the Bond Ordinance"). Pledged Revenues All of the Net Revenues of the System with the exception of those in excess of the amounts required to establish and maintain the Revenue, Reserve and Interest and Sinking Funds for all outstanding revenue bonds are irrevocably pledged for the payment of the Bonds and interest thereon. The payment of the Bonds and the interest thereon shall constitute a subordinate lien upon the Net Revenues of the System. Rates The City has covenanted in the Ordinance that it will at all times charge and collect for services rendered by the System rates sufficient to pay all operating, maintenance, replacement and improvement expenses, any other costs deductible in determining Net Revenues and to pay interest on and the principal of the Bonds, and to establish and maintain the funds provided for in the Ordinance. The City has further covenanted that, if the System should become legally lisble for any other indebtedness, it will fix and maintain rates and collect charges for the services of the System sufficient to discharge such indebtedness. Redemption of Bonds The City reserves the right, at its option, to redeem Bonds having stated maturities on and after January 1, 2002, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on January 1, 2001, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed and if less than all of a maturity is to be redeemed, the Paying Agent/Registrar shall determine by lot the Bonds, or portiODl thereof, within such maturity to be redeemed. Not less than 30 days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each registered owner of a Bond to be redeemed, in whole or in part, at the address of the registered owner appearing on the registration books of the Paying Agent/Registrar at the close of business on the business day next preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the bondholder. Additional Bonds The City may issue a portion of its $10,980,000 remaining revenue bond authority in late 1992. Paying Agent/Registrar The initial Paying Agent/Registrar is Ameritrust Texas N.A., Dallas, Texas. In the Ordinance the City retains the right to replace the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds are outstanding and any successor Paying Agent/Registrar shall be a commercial bank or trust company organized under the laws of the State of Texas or other entity duly qualified and legally authorized to serve as and perform the duties and 5