10-B-36 - Issuance of General Obligation Bonds n
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ORDINANCE NO. 10-8-36
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE ISSUANCE OF "CITY OF
SCHERTZ, TEXAS GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2010", LEVYING AN ANNUAL AD VALOREM TAX, WITHIN
THE LIMITATIONS PRESCRIBED BY LAW, FOR THE PAYMENT OF
THE BONDS; PRESCRIBING THE FORM, TERMS, CONDITIONS, AND
RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE
ISSUANCE, SALE, AND DELIVERY OF THE BONDS, INCLUDING THE
APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT
PERTAINING THERETO; AUTHORIZING THE EXECUTION OF A
PAYING AGENT/REGISTRAR AGREEMENT, A PURCHASE
CONTRACT, AND AN ESCROW DEPOSIT LETTER; COMPLYING
WITH THE PROVISIONS OF THE DEPOSITORY TRUST COMPANY'S
LETTER OF REPRESENTATIONS; AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, the City Council (the City Council) of the City of Schertz, Texas (the City)
has heretofore issued, sold, and delivered, and there are currently outstanding obligations in the
aggregate original principal amount of $2,840,000 being the obligations set forth on Schedule I
hereto which is incorporated by reference for all purposes to this ordinance (the Refunded
Obligations); and
WHEREAS, the City Council intends to issue an aggregate principal amount of
$ in limited tax refunding bonds (the Bonds), the proceeds of which will be
utilized to provide for the (i) refunding of the Refunded Obligations and (ii) payment of the costs
of issuance of the Bonds; and
WHEREAS, pursuant to the provisions of Chapter 1207, as amended, Texas Government
Code (the Act), the City Council is authorized to issue refunding bonds and deposit the proceeds
of sale under an escrow agreement to provide for the payment of the Refunded Obligations, and
such deposit, when made in accordance with the Act, shall constitute the making of firm banking
and financial arrangements for the discharge and final payment of the Refunded Obligations; and
WHEREAS, the Act permits that the deposit of the proceeds from the sale of the
refunding bonds be deposited directly with any designated escrow agent which is not the
depository bank of the City; and
WHEREAS, when firm banking arrangements have been made for the payment of
principal of and interest to the stated maturity or redemption dates of the Refunded Obligations,
then the Refunded Obligations shall no longer be regarded as outstanding except for the purpose
of receiving payment from the funds provided for such purpose and may not be included in or
considered to be an indebtedness of the City for the purpose of a limitation on outstanding
indebtedness or taxation (if appropriate) or for any other purpose; and
Ordina~~ce 10-B-35.docx