1992B23- OBLIGATION BONDS, SERIES 1992
DRAFT 11/13192
C\b(/6~,8~
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE ISSUANCE OF $620,000 "CITY
OF SCHERTZ, TEXAS GENERAL OBLIGATION BONDS, SERIES
1992"; LEVYING A CONTINUING DIRECT ANNUAL AD VALOREM
TAX 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
AGENTIREGISTRAR AGREEMENT; AND PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, the City Council of the City of Schertz, Texas (the City) hereby finds
and determines that general obligation bonds of the City in the total principal amount
of $620,000 should be issued and sold at this time, being a portion of the general
obligation bonds approved and authorized to be issued at an election held on
January 10, 1987 in the City, the respective authorized purposes and amounts
authorized to be issued therefor, amounts previously issued, amounts being issued
pursuant to this ordinance, and amounts remaining to be issued from such voted
authorization subsequent to the date hereof being as follows:
Amounts
Amounts Previously Amounts Sold Unissued
Purpose Authorized Issued this Sale Bonds
Street
Improvements
and Incidental
Drainage
$1,080,000
$460,000
$620,000
$-0-
; and
WHEREAS, the City Council hereby finds and determines that the issuance of
the general obligation bonds is in the best interests of the citizens of the City, now,
therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS THAT:
SECTION 1: Authorization - Designation - Principal Amount - Purpose.
General obligation bonds of the City shall be and are hereby authorized to be issued in
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the aggregate principal amount of $620,000 (SIX HUNDRED TWENTY THOUSAND
AND NO/100 DOLLARS), to be designated and bear the title "City of Schertz, Texas
General Obligation Bonds, Series 1992" (the Bonds), for the purpose of constructing
street improvements and drainage incidental thereto, in conformity with the laws of the
State of Texas, particularly Texas Revised Civil Statutes Annotated Article 1175, as
amended, the City's Home Rule Charter, an election held in the City on January 10,
1987, and pursuant to the provisions of this bond ordinance (the Ordinance) adopted
on November 17, 1992 by the City Council.
SECTION 2: Fully Relristered Oblil!ations - Authorized Denominations -
Stated Maturities - Interest Rates - Date. The Bonds are issuable in fully registered
form only; shall be dated November 1, 1992 (the Bond Date) and shall be in
denominations of $5,000 or any integral multiple thereof (within a Stated Maturity);
and the Bonds shall become due and payable on February 1 in each of the years and
in principal amounts (the Stated Maturities) and bear interest on the unpaid principal
amounts from the Bond Date, or from the most recent Interest Payment Date
(hereinafter defined) to which interest has been paid or duly provided for, at per annum
rates, while Outstanding, in accordance with the following schedule:
Year of
Stated Maturitv
Principal
Amount ($)
Interest
Rate (%)
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
50,000
50,000
50,000
100,000
100,000
70,000
SECTION 3: Pavrnent of Bonds - Pavinl! Al!ent/Relristrar. The principal
of, premium, if any, and interest on the Bonds, due and payable by reason of Stated
Maturity, redemption, or otherwise, shall be payable, without exchange or collection
charges to the Holder (as hereinafter defined), appearing on the registration and
transfer books maintained by the Paying AgentlRegistrar (hereinafter defined), in any
coin or currency of the United States of America which at the time of payment is legal
tender for the payment of public and private debts.
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The Bonds shall bear interest at the per annum rates established in Section 2,
and interest thereon shall be payable on February 1 and August 1 of each year (the
Interest Payment Date) commencing February 1, 1994.
The selection and appointment of New First City, Texas--Austin, NA, Austin,
Texas to serve as the initial Paying AgentlRegistrar (the Paying Agent/Registrar) for
the Bonds is hereby approved and confirmed, and the City agrees and covenants to
cause to be kept and maintained at the principal corporate trust office of the Paying
AgentlRegistrar books and records (the Security Register) for the registration, payment,
and transfer of the Bonds, all as provided herein, in accordance with the terms and
provisions of a Paying AgentlRegistrar Agreement, attached hereto in substantially final
form as Exhibit A, and such reasonable rules and regulations as the Paying
AgentlRegistrar and the City may prescribe. The City covenants to maintain and
provide a Paying AgentlRegistrar at all times while the Bonds are Outstanding, and any
successor Paying AgentlRegistrar shall be (i) a national or state banking institution, or
(ii) an association or corporation organized and doing business under the laws of the
United States of America or of any state, authorized under such laws to exercise trust
powers. Such Paying AgentlRegistrar shall be subject to supervision or examination by
federal or state authority and shall be authorized by law to serve as a Paying
AgentlRegistrar.
The City reserves the right to appoint a successor Paying AgentlRegistrar upon
providing the previous Paying AgentlRegistrar with a certified copy of a resolution or
order terminating such agency. Additionally, the City agrees to promptly cause a
written notice of this substitution to be sent to each Holder by United States Mail,
first-class postage prepaid, which notice shall also give the address of the principal
corporate office of the successor Paying AgentlRegistrar.
Both principal of, premium, if any, and interest on the Bonds, due and payable
by reason of Stated Maturity, redemption, or otherwise, shall be payable only to the
registered owner of the Bonds (the Holder or Holders) appearing on the Security
Register (i) on the Record Date (hereinafter defined) for purposes of paying interest
thereon, and (ii) on the date of surrender of the Bonds for purposes of receiving
payment of principal thereof upon redemption of the Bonds or at the Bonds' Stated
Maturity. The City and the Paying AgentlRegistrar, and any agent of either, shall treat
the Holder as the owner of a Bond for purposes of receiving payment and all other
purposes whatsoever, and neither the City nor the Paying AgentlRegistrar, or any agent
of either, shall be affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall be payable only upon
presentation and surrender of the Bonds to the Paying AgentlRegistrar at its principal
corporate trust office. Interest on the Bonds shall be paid to the Holder whose name
appears in the Security Register at the close of business on the fifteenth day of the
month next preceding the Interest Payment Date for the Bonds (the Record Date) and
shall be paid (i) by check sent on or prior to the appropriate date of payment by United
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States Mail, first-class postage prepaid, by the Paying AgentlRegistrar, to the address
of the Holder appearing in the Security Register, or (ii) by such other method,
acceptable to the Paying AgentlRegistrar, requested in writing by the Holder at the
Holder's risk and expense.
If the date for the payment of the principal of, premium, if any, or interest on
the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on which banking
institutions in the city where the Paying AgentlRegistrar is located are authorized by
law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a day. The payment on such date shall have the same
force and effect as if made on the original date any such payment on the Bonds was
due.
In the event of a non-payment of interest on a scheduled payment date, and for
thirty (30) days thereafter, a new record date for such interest payment (a Special
Record Date) will be established by the Paying AgentlRegistrar, if and when funds for
the payment of such interest have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due interest (the Special
Payment Date--which shall be fifteen (15) days after the Special Record Date) shall be
sent at least five (5) business days prior to the Special Record Date by United States
Mail, first-class postage prepaid, to the address of each Holder appearing on the
Security Register at the close of business on the last business day next preceding the
date of mailing of such notice.
SECTION 4:
Redemption.
A. Optional Redemption. The Bonds having Stated Maturities on and after
February 1, 2005 shall be subject to redemption prior to Stated Maturity, at the option
of the City, on February 1, 2004, or on any Interest Payment Date thereafter, as a
whole or in part in principal amounts of $5,000 or any integral multiple thereof (and
if within a Stated Maturity at random and by lot by the Paying AgentlRegistrar), at the
redemption price of par plus accrued interest to the date of redemption.
B. Exercise of Redemption Option. At least forty-five (45) days prior to a
date set for the redemption of Bonds (unless a shorter notification period shall be
satisfactory to the Paying AgentlRegistrar), the City shall notify the Paying
AgentlRegistrar of its decision to exercise the right to redeem Bonds, the principal
amount of each Stated Maturity to be redeemed, and the date set for the redemption
thereof. The decision of the City to exercise the right to redeem Bonds shall be entered
in the minutes of the governing body of the City.
C. Selection of Bonds for Redemption. If less than all Outstanding Bonds of
the same Stated Maturity are to be redeemed on a redemption date, the Paying
AgentlRegistrar shall select at random and by lot the Bonds to be redeemed, provided
that if less than the entire principal amount of a Bond is to be redeemed, the Paying
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AgentlRegistrar shall treat such Bond then subject to redemption as representing the
number of Bonds Outstanding which is obtained by dividing the principal amount of
such Bond by $5,000.
D. Notice of Redemption. Not less than thirty (30) days prior to a
redemption date for the Bonds, a notice of redemption shall be sent by United States
Mail, first-class postage prepaid, in the name of the City and at the City's expense, to
each Holder of a Bond to be redeemed in whole or in part at the address ofthe Holder
appearing on the Security Register at the close of business on the business day next
preceding the date of mailing such notice, and any notice of redemption so mailed shall
be conclusively presumed to have been duly given irrespective of whether received by
the Holder.
All notices of redemption shall (i) specify the date ofredemption for the Bonds,
(ii) identify the Bonds to be redeemed and, in the case of a portion of the principal
amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the
redemption price, (iv) state that the Bonds, or the portion of the principal amount
thereof to be redeemed, shall become due and payable on the redemption date specified,
and the interest thereon, or on the portion of the principal amount thereof to be
redeemed, shall cease to accrue from and after the redemption date, and (v) specify that
payment of the redemption price for the Bonds, or the principal amount thereof to be
redeemed, shall be made at the principal corporate trust office of the Paying
AgentlRegistrar only upon presentation and surrender thereof by the Holder. If a Bond
is subject by its terms to redemption and has been called for redemption and notice of
redemption thereof has been duly given or waived as herein provided, such Bond (or
the principal amount thereof to be redeemed) so called for redemption shall become due
and payable, and if money sufficient for the payment of such Bonds (or of the principal
amount thereof to be redeemed) at the then applicable redemption price is held for the
purpose of such payment by the Paying AgentlRegistrar, then on the redemption date
designated in such notice, interest on the Bonds (or the principal amount thereof to be
redeemed) called for redemption shall cease to accrue and such Bonds shall not be
deemed to be Outstanding in accordance with the provisions of this Ordinance.
E. TransferlExchanl!e of Bonds. Neither the City nor the Paying
AgentlRegistrar shall be required (1) to transfer or exchange any Bond during a period
beginning forty-five (45) days prior to the date fixed for redemption of the Bonds or (2)
to transfer or exchange any Bond selected for redemption, provided, however, such
limitation of transfer shall not be applicable to an exchange by the Holder of the
unredeemed balance of a Bond which is subject to redemption in part.
SECTION 5: Relristration - Transfer - Exchanl!e of Bonds - Predecessor
Bonds. A Security Register relating to the registration, payment, transfer, or exchange
of the Bonds shall at all times be kept and maintained by the City at the principal
corporate trust office of the Paying AgentlRegistrar, and the Paying AgentlRegistrar
shall obtain, record, and maintain in the Security Register the name and address of
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each Holder of the Bonds issued under and pursuant to the prOVISIOns of this
Ordinance. Any Bond may, in accordance with its terms and the terms hereof, be
transferred or exchanged for Bonds of other authorized denominations upon the
Security Register by the Holder, in person or by his duly authorized agent, upon
surrender of such Bond to the Paying AgentlRegistrar for cancellation, accompanied by
a written instrument of transfer or request for exchange duly executed by the Holder
or by his duly authorized agent, in form satisfactory to the Paying AgentlRegistrar.
Upon surrender for transfer of any Bond at the principal corporate trust office
of the Paying AgentlRegistrar, the Paying AgentlRegistrar shall register and deliver,
in the name of the designated transferee or transferees, one or more new Bonds
executed on behalf of, and furnished by, the City of authorized denominations and
having the same Stated Maturity and of a like interest rate and aggregate principal
amount as the Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds may be exchanged for other Bonds of
authorized denominations and having the same Stated Maturity, bearing the same rate
of interest, and of like aggregate principal amount as the Bonds surrendered for
exchange, upon surrender of the Bonds to be exchanged at the principal corporate trust
office of the Paying Agent/ Registrar. Whenever any Bonds are so surrendered for
exchange, the Paying AgentlRegistrar shall register and deliver new Bonds executed on
behalf of, and furnished by, the City to the Holder requesting the exchange.
All Bonds issued upon any transfer or exchange of Bonds shall be delivered at
the principal corporate trust office of the Paying AgentlRegistrar, or sent by United
States registered mail to the Holder at his request, risk, and expense, and upon the
delivery thereof, the same shall be valid obligations of the City, evidencing the same
debt, and entitled to the same benefits under this Ordinance, as the Bonds surrendered
in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made
without expense or service charge to the Holder, except as otherwise herein provided,
and except that the Paying AgentlRegistrar shall require payment by the Holder
requesting such transfer or exchange of any tax or other governmental charges required
to be paid with respect to such transfer or exchange.
Bonds canceled by reason of an exchange or transfer pursuant to the provisions
hereof are hereby defined to be Predecessor Bonds, evidencing all or a portion, as the
case may be, of the same debt evidenced by the new Bond or Bonds registered and
delivered in the exchange or transfer therefor. Additionally, the term Predecessor
Bonds shall include any Bond registered and delivered pursuant to Section 15 in lieu
of a mutilated, lost, destroyed, or stolen Bond which shall be deemed to evidence the
same obligation as the mutilated, lost, destroyed, or stolen Bond.
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SECTION 6: Execution - Registration. The Bonds shall be executed on
behalf of the City by the Mayor, or Mayor Pro Tem, under its seal reproduced or
impressed thereon, and attested by the City Secretary. The signature of said officers
on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile
signatures of individuals who are or were the proper officers of the City on the Bond
Date shall be deemed to be duly executed on behalf of the City, notwithstanding that
such individuals or either of them shall cease to hold such offices at the time of delivery
of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in
subsequent exchanges and transfers, all as authorized and provided in the Bond
Procedures Act of 1981, Texas Revised Civil Statutes Annotated Article 717k-6, as
amended.
No Bond shall be entitled to any right or benefit under this Ordinance, or be
valid or obligatory for any purpose, unless there appears on such Bond either a
certificate of registration substantially in the form provided in Section 8C, executed by
the Comptroller of Public Accounts of the State of Texas or his duly authorized agent
by manual signature, or a certificate of registration substantially in the form provided
in Section 8D, executed by the Paying AgentlRegistrar by manual signature, and either
such certificate upon any Bond shall be conclusive evidence, and the only evidence, that
such Bond has been duly certified or registered and delivered.
SECTION 7: Initial Bond(s). The Bonds herein authorized shall be issued
initially either (i) as a fully registered bond in the total principal amount of $620,000
with principal installments to become due and payable as provided in Section 2 and
numbered T-1, or (ii) as one (1) fully registered Bond for each year of Stated Maturity
in the applicable principal amount, interest rate, and denomination and to be numbered
consecutively from T-1 and upward (the Initial Bond(s)) and, in either case, the Initial
Bond(s) shall be registered in the name of the initial purchaser(s) or the designee
thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney
General of the State of Texas for approval and certified and registered by the Office of
the Comptroller of Public Accounts of the State of Texas. At any time after the
delivery of the Initial Bond(s) to the initial purchaser(s), the Paying AgentlRegistrar,
upon written instructions from the purchaser(s), or his or their designee, shall cancel
the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of
authorized denominations, Stated Maturities, principal amounts, and bearing applicable
interest rates for transfer and delivery to the Holders named and at the addresses
identified therefor; all in accordance with and pursuant to such written instructions
from the initial purchaser(s), or his or their designee, and such other information and
documentation as the Paying AgentlRegistrar may reasonably require.
SECTION 8:
Forms.
A. Forms Generallv. The Bonds, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Certificate of Registration, and the form
of Assignment to be printed on each of the Bonds shall be substantially in the forms
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set forth in this Section with such appropriate insertions, omissions, substitutions, and
other variations as are permitted or required by this Ordinance and may have such
letters, numbers, or other marks of identification (including identifying numbers and
letters of the Committee on Uniform Securities Identification Procedures of the
American Bankers Association) and such legends and endorsements (including
insurance legends and any reproduction of an opinion of counsel) thereon as may,
consistent herewith, be established by the City or determined by the officers executing
the Bonds as evidenced by their execution thereof. Any portion of the text of any Bond
may be set forth on the reverse thereof, with an appropriate reference thereto on the
face of the Bond.
The definitive Bonds shall be printed, lithographed, or engraved or produced in
any other similar manner, all as determined by the officers executing the Bonds as
evidenced by their execution thereof, but the Initial Bond(s) submitted to the Attorney
General of Texas may be typewritten or photocopied or otherwise reproduced.
B. Form of Bond.
REGISTERED
NO........
REGISTERED
$. . . . . . . . .
United States of America
State of Texas
Counties of Guadalupe, Comal and Bexar
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BOND,
SERIES 1992
Interest Rate:
Bond Date:
November 1, 1992
Stated Maturity:
CUSIP NO:
REGISTERED OWNER:
PRINCIPAL AMOUNT: .................................... DOLLARS
The City of Schertz, Texas (the City), a body corporate and municipal corporation
in the Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the
Registered Owner named above (the Holder), or the registered assigns thereof, on the
Stated Maturity date specified above, the Principal Amount stated above (or so much
thereof as shall not have been paid upon prior redemption) and to pay interest on the
unpaid Principal Amount hereof (computed on the basis of a 360-day year of twelve
30-day months) from the Bond Date specified above, or from the most recent Interest
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Payment Date to which interest has been paid or duly provided for, at the per annum
rate specified above; such interest being payable on February 1 and August 1 of each
year (the Interest Payment Date) commencing February 1, 1994.
Principal and premium, if any, of this Bond shall be payable to the Holder
hereof, upon presentation and surrender, at the principal corporate trust office of the
Paying AgentlRegistrar executing the registration certificate appearing hereon, or its
successor. Interest shall be payable to the Holder of this Bond (or one or more
Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name
appears on the Security Register maintained by the Paying AgentlRegistrar at the close
of business on the Record Date, which is the fifteenth day of the month next preceding
the Interest Payment Date. All payments of principal of, premium, if any, and interest
on this Bond shall be in any coin or currency of the United States of America which at
the time of payment is legal tender for the payment of public and private debts.
Interest shall be paid by the Paying AgentlRegistrar by check sent on or prior to the
appropriate date of payment by United States Mail, first-class postage prepaid, to the
Holder hereof at the address appearing in the Security Register or by such other
method, acceptable to the Paying AgentlRegistrar, requested by the Holder hereof at
the Holder's risk and expense.
This Bond is one of the series specified in its title issued in the aggregate
principal amount of $620,000 (the Bonds) pursuant to the authority conferred at an
election held within the City on January 10, 1987 and by an ordinance adopted by the
governing body of the City (the Ordinance), for the purpose of constructing street
improvements and drainage incidental thereto, in conformity with the laws of the State
of Texas, particularly Texas Revised Civil Statutes Annotated Article 1175, as amended,
and the City's Home Rule Charter.
The Bonds stated to mature on and after February 1, 2005 may be redeemed
prior to their Stated Maturities, at the option of the City, on February 1, 2004, or on
any Interest Payment Date thereafter, in whole or in part in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated Maturity at random and
by lot by the Paying AgentlRegistrar) at the redemption price of par, together with
accrued interest to the date of redemption, and upon thirty (30) days prior written
notice being given by United States Mail, first-class postage prepaid, to Holders of the
Bonds to be redeemed, and subject to the terms and provisions relating thereto
contained in the Ordinance. If this Bond is subject to redemption prior to stated
maturity and is of a denomination in excess of $5,000, portions of the principal sum
hereof in installments of $5,000 or any integral multiple thereof may be redeemed, and
if less than all of the principal sum hereof is to be redeemed, there shall be issued,
without charge therefor, to the Holder hereof, upon the surrender of this Bond to the
Paying AgentlRegistrar at its principal corporate trust office, a new Bond or Bonds of
like Stated Maturity and interest rate in any authorized denominations provided in the
Ordinance for the then unredeemed balance of the principal sum hereof.
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If this Bond (or any portion of the principal sum hereof) shall have been duly
called for redemption and notice of such redemption has been duly given, then upon
such redemption date this Bond (or the portion of the principal sum hereof to be
redeemed) shall become due and payable, and, if money for the payment of the
redemption price and the interest accrued on the principal amount to be redeemed to
the date of redemption is held for the purpose of such payment by the Paying
AgentlRegistrar, interest shall cease to accrue and be payable hereon from and after the
redemption date on the principal amount hereof to be redeemed. If this Bond is called
for redemption, in whole or in part, the City or the Paying AgentlRegistrar shall not
be required to issue, transfer, or exchange this Bond within forty-five (45) days of the
date fixed for redemption; provided, however, such limitation of transfer shall not be
applicable to an exchange by the Holder of the unredeemed balance hereof in the event
of its redemption in part.
The Bonds are payable from the proceeds of an ad valorem tax levied, within the
limitations prescribed by law, upon all taxable property within the City.
Reference is hereby made to the Ordinance, copies of which are on file in the
principal corporate trust office of the Paying AgentlRegistrar, and to all of the
provisions of which the Holder by his acceptance hereof hereby assents, for definitions
of terms; the description of and the nature and extent of the tax levied for the payment
of the Bonds; the terms and conditions relating to the transfer or exchange of this
Bond; the conditions upon which the Ordinance may be amended or supplemented with
or without the consent of the Holders; the rights, duties, and obligations of the City
and the Paying AgentlRegistrar; the terms and provisions upon which this Bond may
be discharged at or prior to its Stated Maturity or redemption and deemed to be no
longer Outstanding thereunder; and for the other terms and provisions thereof.
Capitalized terms used herein have the same meanings assigned in the Ordinance.
As provided in the Ordinance and subject to certain limitations contained
therein, this Bond is transferable on the Security Register of the City, upon surrender
of this Bond for transfer at the principal corporate trust office of the Paying
AgentlRegistrar, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Paying AgentlRegistrar duly executed by the Holder hereof,
or his duly authorized agent, and thereupon one or more new fully registered Bonds of
the same Stated Maturity, of authorized denominations, bearing the same rate of
interest, and of the same aggregate principal amount will be issued to the designated
transferee or transferees.
The City and the Paying AgentlRegistrar, and any agent of either, shall treat the
Holder hereof whose name appears on the Security Register (i) on the Record Date as
the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date
of surrender of this Bond as the owner hereof for purposes of receiving payment of
principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii)
on any date as the owner hereof for all other purposes, and neither the City nor the
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Paying AgentlRegistrar, or any such agent of either, shall be affected by notice to the
contrary. In the event of a non-payment of interest on a scheduled payment date, and
for thirty (30) days thereafter, a new record date for such interest payment (a Special
Record Date) will be established by the Paying AgentlRegistrar, if and when funds for
the payment of such interest have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due interest (the Special
Payment Date--which shall be fifteen (15) days after the Special Record Date) shall be
sent at least five (5) business days prior to the Special Record Date by United States
Mail, first-class postage prepaid, to the address of each Holder appearing on the
Security Register at the close of business on the last business day next preceding the
date of mailing of such notice.
It is hereby certified, covenanted, and represented that all acts, conditions, and
things required to be performed, exist, and be done precedent to or in the issuance of
this Bond in order to render the same a legal, valid, and binding obligation of the City
have been performed, exist, and have been done, in regular and due time, form, and
manner, as required by law, and that the issuance of this Bond does not exceed any
constitutional or statutory limitation. In case any provision in this Bond or any
application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions and applications shall not in any way be
affected or impaired thereby. The terms and provisions of this Bond and the Ordinance
shall be construed in accordance with and shall be governed by the laws of the State
of Texas.
IN WITNESS WHEREOF, the City has caused this Bond to be duly executed
under its official seal.
CITY OF SCHERTZ, TEXAS
ATTEST:
Mayor
City Secretary
(CITY SEAL)
[The remainder of this page intentionally left blank.]
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C. * Form of Relristration Certificate of Comptroller of Public Accounts to
Appear on Initial Bond onlv.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER ~
OF PUBLIC ACCOUNTS ~ REGISTER NO. ...........
~
THE STATE OF TEXAS ~
I HEREBY CERTIFY that this Bond has been examined, certified as to validity,
and approved by the Attorney General of the State of Texas and duly registered by the
Comptroller of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this .........................
Comptroller of Public Accounts
of the State of Texas
(SEAL)
* NOTE TO PRINTER. Do not print on definitive bonds.
D. * Form of Certificate of Pavinl! Al!entlRelristrar to Appear on Definitive
Bonds onlv.
This Bond has been duly issued under the provisions of the within-mentioned
Ordinance; the bond or bonds of the above entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts, as shown by the records of the Paying
AgentlRegistrar.
NEW FIRST CITY, TEXAS--AUSTIN, N.A.,
Austin, Texas,
as Paying AgentlRegistrar
Registered this date:
By
Authorized Officer
* NOTE TO PRINTER: Do not print on the Initial Bond.
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E. Form of Assimment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers
unto (Print or typewrite name, address, and zip code of transferee):
(Social Security or other identifying number: .............................
................) the within Bond and all rights thereunder, and hereby irrevocably constitutes
and appoints ......................................................
attorney to transfer the within Bond on the books kept for registration thereof, with
full power of substitution in the premises.
DATED: .................................
NOTICE: The signature on this assignment
must correspond with the name of
the registered owner as it
appears on the face of the
within Bond in every particular.
Signature guaranteed:
F. The Initial Bond(s) shall be in the form set forth in paracraph B of this
Section. except that the form of the sinl!le fullv registered Initial Bond
shall be modified as follows:
(i) immediately under the name of the bond the headings "Interest Rate
. . . . . . . . ." and "Stated Maturity. . . . . . . . " shall both be completed "as
shown below";
(ii) the first two paragraphs shall read as follows:
The City of Schertz, Texas (the City), a body corporate and municipal corporation
in the Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the
Registered Owner named above (the Holder), or the registered assigns thereof, on the
first day of February in each of the years and in principal amounts and bearing interest
at per annum rates in accordance with the following schedule:
YEARS OF
STATED MATURITY
PRINCIPAL
AMOUNTS ($)
INTEREST
RATES (%)
(Information to be inserted from
schedule in Section 2 hereof).
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(or so much thereof as shall not have been paid upon prior redemption) and to pay
interest on the unpaid Principal Amounts hereof from the Bond Date at the per annum
rates of interest specified above computed on the basis of a 360-day year of twelve
30-day months; such interest being payable on February 1 and August 1 of each year
(the Interest Payment Date) commencing February 1, 1994.
Principal of this Bond shall be payable to the Holder hereof, upon presentation
and surrender, at the principal corporate trust office of New First City, Texas--Austin,
N.A., Austin, Texas (the Paying Agent/Registrar). Interest shall be payable to the
Holder of this Bond whose name appears on the Security Register maintained by the
Paying AgentlRegistrar at the close of business on the Record Date, which is the
fifteenth day of the month next preceding the Interest Payment Date. All payments of
principal of, premium, if any, and interest on this Bond shall be in any coin or currency
of the United States of America which at the time of payment is legal tender for the
payment of public and private debts. Interest shall be paid by the Paying
AgentlRegistrar by check sent on or prior to the appropriate date of payment by United
States Mail, first-class postage prepaid, to the Holder hereof at the address appearing
in the Security Register or by such other method, acceptable to the Paying
AgentlRegistrar, requested by the Holder hereof at the Holder's risk and expense.
G. Insurance Legend. If bond insurance is obtained by the City or the
Purchaser (hereinafter defined), the Definitive Bonds and the Initial Bond(s) shall bear
an appropriate legend as provided by the insurer.
SECTION 9: Definitions. For all purposes of this Ordinance (as defined
below), except as otherwise expressly provided or unless the context otherwise requires:
(i) the terms defined in this Section have the meanings assigned to them in this
Section, certain terms used in Section 16 of this Ordinance have the meanings assigned
to them such Section, and all such terms, include the plural as well as the singular;
(ii) all references in this Ordinance to designated "Sections" and other subdivisions are
to the designated Sections and other subdivisions of this Ordinance as originally
adopted; and (iii) the words "herein", "hereof', and "hereunder" and other words of
similar import refer to this Ordinance as a whole and not to any particular Section or
other subdivision.
Bonds shall mean the "City of Schertz, Texas General Obligation Bonds,
Series 1992", dated November 1, 1992, authorized by this Ordinance.
City shall mean the City of Schertz, located in the Counties of Guadalupe,
Comal, and Bexar, Texas.
Closing Date shall mean the date of physical delivery of the Initial Bonds in
exchange for the payment in full by the Purchaser thereof.
Depository shall mean an official depository bank of the City.
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Government Securities shall mean direct obligations of the United States of
America, including obligations the payment of principal of and interest on which
is unconditionally guaranteed by the United States of America, and United
States Treasury obligations such as its State and Local Government Series in
book-entry form.
Holder or Holders shall mean the registered owner, whose name appears in the
Security Register, for any Bond.
Interest Payment Date shall mean the date semi-annual interest is payable on the
Bonds, being February 1 and August 1 of each year, commencing February 1,
1994 while any of the Bonds remain outstanding.
Ordinance shall mean the ordinance adopted by the City Council on
November 17, 1992 authorizing the issuance ofthe bonds.
Outstanding shall mean, as of the date of determination, all Bonds issued and
delivered under this Ordinance, except:
(1) those Bonds canceled by the Paying AgentlRegistrar or delivered
to the Paying AgentlRegistrar for cancellation;
(2) those Bonds for which payment has been duly provided by the City
in accordance with the provisions of Section 17 of this Ordinance by the
irrevocable deposit with the Paying Agent/ Registrar, or an authorized escrow
agent, of money or Government Securities, or both, in the amount necessary to
fully pay the principal of, premium, if any, and interest thereon to Stated
Maturity or redemption, as the case may be, provided that, if such Bonds are to
be redeemed, notice of redemption thereof shall have been duly given pursuant
to this Ordinance or irrevocably provided to be given to the satisfaction of the
Paying AgentlRegistrar, or waived; and
(3) those Bonds that have been mutilated, destroyed, lost, or stolen and
replacement Bonds have been registered and delivered in lieu thereof as provided
in Section 15 of this Ordinance.
Purchaser shall mean the initial purchaser of the Bonds named in Section 19 of
this Ordinance.
Stated Maturity shall mean the annual principal payments of the Bonds payable
on February 1 of each year the Bonds are Outstanding as set forth in Section 2
of this Ordinance.
SECTION 10: Bond Fund: Investments. For the purpose of paying the interest
on and to provide a sinking fund for the payment, redemption, and retirement of the
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Bonds, there shall be and is hereby created a special Fund to be designated "GENERAL
OBLIGATION BONDS, SERIES 1992, INTEREST AND SINKING FUND" (the Bond
Fund), which Fund shall be kept and maintained at the City's Depository, and money
deposited in such Fund shall be used for no other purpose and shall be maintained as
provided in Section 16. Authorized officials of the City are hereby authorized and
directed to make withdrawals from the Bond Fund sufficient to pay the principal of and
interest on the Bonds as the same become due and payable and shall cause to be
transferred to the Paying AgentlRegistrar from money on deposit in the Bond Fund an
amount sufficient to pay the amount of principal and/or interest stated to mature on
the Bonds, such transfer of funds to the Paying AgentlRegistrar to be made in such
manner as will cause immediately available funds to be deposited with the Paying
AgentlRegistrar on or before the last business day next preceding each interest and
principal payment date for the Bonds.
Pending the transfer of funds to the Paying AgentlRegistrar, money in any Fund
established by this Ordinance may, at the option of the City, be placed in time deposits
or certificates of deposit, as permitted by the provisions of the Public Funds Investment
Act, as amended, Texas Revised Civil Statutes Annotated Article 842a-2, secured (to the
extent not insured by the Federal Deposit Insurance Corporation) by obligations of the
type hereinafter described, or be invested, as authorized by any law, including
investments held in book-entry form, in securities including, but not limited to, direct
obligations of the United States of America, obligations guaranteed or insured by the
United States of America, which, in the opinion of the Attorney General of the United
States, are backed by its full faith and credit or represent its general obligations, or
invested in indirect obligations of the United States of America, including, but not
limited to, evidences of indebtedness issued, insured or guaranteed by such
governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks,
Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage
Association, Farmers Home Administration, Federal Home Loan Mortgage Association,
Small Business Administration, or Federal Housing Association; provided that all such
deposits and investments shall be made in such a manner that the money required to
be expended from the any Fund will be available at the proper time or times. All
interest and income derived from deposits and investments in any Fund shall be
credited to, and any losses debited to, such Fund. All such investments shall be sold
promptly when necessary to prevent any default in connection with the Bonds.
SECTION 11: Levv of Taxes: Excess Bond Proceeds. To provide for the
payment of the debt service requirements on the Bonds being (i) the interest on the
Bonds, and (ii) a sinking fund for their redemption at Stated Maturity or a sinking fund
of 2% (whichever amount shall be the greater), there shall be and there is hereby levied
for the current year and each succeeding year thereafter while the Bonds or any
interest thereon shall remain Outstanding, a sufficient tax on each one hundred dollars'
valuation of taxable property in the City, adequate to pay such debt service
requirements, full allowance being made for delinquencies and costs of collection; said
tax shall be assessed and collected each year and applied to the payment of the debt
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service requirements, and the same shall not be diverted to any other purpose. The
taxes so levied and collected shall be paid into the Bond Fund. The City Council hereby
declares its purpose and intent to provide and levy a tax legally and fully sufficient to
pay the said debt service requirements, it having been determined that the existing and
available taxing authority of the City for such purpose is adequate to permit a legally
sufficient tax in consideration of all other outstanding indebtedness.
Accrued interest and premium, if any, received from the Purchaser of the Bonds
shall be deposited to the Bond Fund and ad valorem taxes levied and collected shall be
deposited to the Bond Fund. In addition, any surplus proceeds from the sale of the
Bonds, including investment income thereon, not expended for authorized purposes
shall be deposited in the Bond Fund, and such amounts so deposited shall reduce the
sum otherwise required to be deposited in the Bond Fund from ad valorem taxes.
SECTION 12: Security for Funds. All money on deposit in the Funds for which
this Ordinance makes provision (except any portion thereof as may be at any time
properly invested as provided herein) shall be secured in the manner and to the fullest
extent required by the laws of the State of Texas for the security of public funds, and
money on deposit in such Funds shall be used only for the purposes permitted by this
Ordinance.
SECTION 13: Notices to Holders-Waiver. Wherever this Ordinance provides
for notice to Holders of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if in writing and sent by United States Mail,
first-class postage prepaid, to the address of each Holder appearing in the Security
Register at the close of business on the business day next preceding the mailing of such
notice.
In any case where notice to Holders is given by mail, neither the failure to mail
such notice to any particular Holders, nor any defect in any notice so mailed, shall
affect the sufficiency of such notice with respect to all other Bonds or Holders. Where
this Ordinance provides for notice in any manner, such notice may be waived in writing
by the Holder entitled to receive such notice, either before or after the event with
respect to which such notice is given, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Paying AgentlRegistrar, but
such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
SECTION 14: Cancellation. All Bonds surrendered for payment,
redemption, transfer, exchange, or replacement, if surrendered to the Paying
AgentlRegistrar, shall be promptly canceled by it and, if surrendered to the City, shall
be delivered to the Paying AgentlRegistrar and, if not already canceled, shall be
promptly canceled by the Paying AgentlRegistrar. The City may at any time deliver to
the Paying AgentlRegistrar for cancellation any Bonds previously certified or registered
and delivered which the City may have acquired in any manner whatsoever, and all
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Bonds so delivered shall be promptly canceled by the Paying AgentlRegistrar. All
canceled Bonds held by the Paying AgentlRegistrar shall be destroyed as directed by
the City.
SECTION 15: Mutilated - Destroved - Lost and Stolen Bonds. If (i) any
mutilated Bond is surrendered to the Paying AgentlRegistrar, or the City and the
Paying AgentlRegistrar receive evidence to their satisfaction of the destruction, loss, or
theft of any Bond, and (ii) there is delivered to the City and the Paying AgentlRegistrar
such security or indemnity as may be required to save each of them harmless, then, in
the absence of notice to the City or the Paying AgentlRegistrar that such Bond has
been acquired by a bona fide purchaser, the City shall execute and, upon the City's
request, the Paying AgentlRegistrar shall register and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of the same Stated
Maturity and interest rate and of like tenor and principal amount, bearing a number
not contemporaneously Outstanding.
In case any such mutilated, destroyed, lost, or stolen Bond has become or is
about to become due and payable, the City in its discretion may, instead of issuing a
new Bond, pay such Bond.
Upon the issuance of any new Bond, or payment in lieu thereof, under this
Section, the City may require payment by the Holder of a sum sufficient to cover any
tax or other governmental charge imposed in relation thereto and any other expenses
and charges (including attorney's fees and the fees and expenses of the Paying
AgentlRegistrar) connected therewith.
Every new Bond issued pursuant to this Section in lieu of any mutilated,
destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of
the City, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance
equally and ratably with all other Outstanding Bonds.
The provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement and payment of
mutilated, destroyed, lost, or stolen Bonds.
SECTION 16: Covenants to Maintain Tax-Exempt Status.
A. Definitions. When used in this Section, the following terms have the
following meanings:
"Code" means the Internal Revenue Code of 1986, as amended by all
legislation, if any, effective on or before the Closing Date.
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"Computation Date" has the meaning set forth m Regulation Section
1.148-8(b)(1).
"Gross Proceeds" when used with respect to the Bonds or any other issue
of obligations of the City, means original proceeds, amounts received (including
repayments of principal) as a result of investing the original proceeds of the
issue, transferred proceeds, sinking fund proceeds, amounts invested in a
reasonably required reserve or replacement fund, securities or obligations
pledged by the City as security for payment of debt service on the Bonds or such
other issue, and any other amounts used to pay debt service on the Bonds or
such other issue, together with earnings from the investment of the foregoing.
"Investment Property" means
(1) a share of stock in a corporation or a right to subscribe for or to
receive such a share,
(2) any indebtedness, evidence thereof, or obligation, including without
limitation United States Treasury bonds, notes, and bills (whether or not of
State and Local Government Series) and bank deposits, (whether or not
certificated or interest bearing or made pursuant to a depository contract),
(3) any annuity contract, or any other deferred payment contract acquired
to fund an obligation of the City, or
(4) any other property held for investment,
but excluding Tax-Exempt Obligations.
"Issue Price" means the aggregate initial offering price of each Stated
Maturity of the Bonds to the public, at or below which a substantial amount of
each Stated Maturity of the Bonds were sold to the public, including accrued
interest and premium or discount, if any. For purposes of this definition, the
term "public" does not include (a) the Purchaser, (b) members of the syndicate,
if any, managed by the Purchaser, or (c) any bondhouses, brokers, dealers, and
similar persons or organizations acting in the capacity of underwriters or
wholesalers.
"Nonpurpose Investment" means any Investment Property in which
Gross Proceeds of the Bonds are invested and which is not acquired to
carry out the governmental purposes of the Bonds.
"Rebatable Arbitrage" has the meaning set forth in Regulation
Section 1.148-2.
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"Regulations" means any proposed, temporary, or final Income Tax
Regulations issued pursuant to Sections 103,141 through 150 of the Code,
and 103 of the Internal Revenue Code of 1954 which are applicable to the
Bonds. Any reference to any specific Regulation shall also mean any
proposed temporary or final Income Tax Regulation designed to
supplement or replace the specific Regulation referenced.
"Tax-Exempt Obligations" mean (i), except as otherwise defined in
the Regulations, obligations the interest on which is excludable from the
gross income of any owner thereof under section 103 of the Code and is
not an item of tax preference under section 57 of the Code, including any
beneficial interest in a trust, the assets of which consist exclusively of
such obligations, but excluding shares in any mutual fund which is
invested in such obligations, unless such fund is described in Regulation
Section 1. 148-8(e)(3)(iii), and (ii) one-day certificates of indebtedness
issued by the United States Treasury pursuant to the Demand Deposit
State and Local Government Series Program.
"Yield" of
(1) any Investment Property has the meaning set forth in
Regulation Section 1.103-13(c) as supplemented by Regulation
Section 1.148-9, and
(2) the Bonds has the meaning set forth in Regulation
Sections 1.148-3 and 1.148-9.
B. Not to Cause Interest to Become Taxable. The City shall not use,
permit the use of, or omit to use Gross Proceeds or any other amounts (or any
property the acquisition, construction, or improvement of which is to be financed
directly or indirectly with Gross Proceeds) in a manner which, if made or omitted,
respectively, would cause the interest on any Bond to become includable in the gross
income, as defined in section 61 of the Code, of the owner thereof for federal income
tax purposes. Without limiting the generality of the foregoing, unless and until the
City shall have received a written opinion of counsel nationally recognized in the field
of municipal bond law to the effect that failure to comply with such covenant will not
adversely affect the exemption from federal income tax of the interest on any Bond,
the City shall comply with each of the specific covenants in this Section.
C. No Private Use or Private Pavrnents. Except as permitted by
section 141 of the Code and the regulations and rulings thereunder, the City shall, at
all times prior to the last Stated Maturity of the Bonds,
(1) exclusively own, operate, and possess all property the
acquisition, construction, or improvement of which is to be financed
0034925
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directly or indirectly with Gross Proceeds and not use or permit the use
of Gross Proceeds or any property acquired, constructed, or improved with
Gross Proceeds in any activity carried on by any person or entity other
than a state or local government, unless such use is solely as a member
of the general public, or
(2) not directly or indirectly impose or accept any charge or other
payment for use of Gross Proceeds or any property the acquisition,
construction, or improvement of which is to be financed directly or
indirectly with Gross Proceeds, other than a charge or other payment
merely as a member of the general public or interest earned on
investments acquired with Gross Proceeds pending application for their
intended purposes, either or both.
D. No Private Loan. Except to the extent permitted by section 141 of
the Code and the regulations and rulings thereunder, the City shall not use Gross
Proceeds to make or finance loans to any person or entity other than a state or local
government. For purposes of the foregoing covenant, Gross Proceeds are considered
to be "loaned" to a person or entity if (1) property acquired, constructed, or improved
with Gross Proceeds is sold or leased to such person or entity in a transaction which
creates a debt for federal income tax purposes, (2) capacity in or service from such
property is committed to such person or entity under a take-or-pay, output, or similar
contract or arrangement, or (3) indirect benefits, or burdens and benefits of
ownership, of Gross Proceeds or any property acquired, constructed, or improved with
Gross Proceeds are otherwise transferred in a transaction which is the economic
equivalent of a loan.
E. Not to Invest at Hil!her Yield. Except to the extent permitted by
section 148 ofthe Code and the regulations and rulings thereunder, the City shall not,
at any time prior to the final Stated Maturity of the Bonds, directly or indirectly
invest Gross Proceeds in any Investment Property (or use Gross Proceeds to replace
money so invested), if as a result of such investment the Yield from the Closing Date
of all Investment Property acquired with Gross Proceeds (or with money replaced
thereby) whether then held or previously disposed of, exceeds the Yield ofthe Bonds.
F. Not Federallv Guaranteed. Except to the extent permitted by
section 149(b) of the Code and the regulations and rulings thereunder, the City shall
not take or omit to take any action which would cause the Bonds to be federally
guaranteed within the meaning of section 149(b) of the Code and the regulations and
rulings thereunder.
G. Information Report. The City shall timely file the information
required by section 149(e) of the Code with the Secretary of the Treasury on such
form and in such place as such Secretary may prescribe.
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H. Rebate of Arbitral!e Profits. Except to the extent otherwise
provided in section 148(f) of the Code and the regulations and rulings thereunder or
except to the extent the City complies with Subsection J. of this Section:
(1) The City shall account for all Gross Proceeds (including all
receipts, expenditures, and investments thereof) on its books of account
separately and apart from all other funds (and receipts, expenditures, and
investments thereoD and shall retain all records of such accounting for at
least six years after the day on which the last Outstanding Bond is
discharged. The City may, however, to the extent permitted by law,
commingle Gross Proceeds of the Bonds with other money of the City,
provided that the City separately accounts for each receipt and
expenditure of Gross Proceeds and the obligations acquired therewith.
(2) Not less frequently than each Computation Date, the City shall
calculate or cause to be calculated by a nationally recognized accounting,
financial advisory firm, or financial institution, in accordance with rules
set forth in section 148(f) of the Code and the regulations, Temporary
Regulations, and rulings thereunder, the Rebatable Arbitrage. The City
shall maintain such calculations with the official transcript of the
proceedings relating to the issuance of the Bonds until six years after the
final Computation Date.
(3) As additional consideration for the purchase of the Bonds by
the Purchaser and the loan of the money represented thereby, and in
order to induce such purchase by measures designed to insure the
excludability of the interest thereon from the gross income of the owners
thereof for federal income tax purposes, the City shall pay to the United
States out of the Bond Fund or its general fund, as permitted by
applicable statute, regulation, or opinion of the Attorney General of the
State of Texas, the amount described in paragraph (2) above, at the times,
in the installments, to the place, in the manner, and accompanied by such
forms or other information as is or may be required by section 148(f) of
the Code and the regulations and rulings thereunder.
(4) The City shall exercise reasonable diligence to assure that no
errors are made in the calculations required by paragraph (2) and, if such
error is made, to discover and promptly to correct such error within a
reasonable amount of time thereafter, including payment to the United
States of any Correction Amount as described in Regulation Section
1.148-l(c)(2), including any penalty related thereto.
I. Not to Divert Arbitral!e Profits. Except to the extent permitted by
section 148 of the Code and the regulations and rulings thereunder, the City shall not,
at any time prior to the earlier of the Stated Maturity or final payment of the Bonds
0034925
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enter into any transaction that reduces the amount required to be paid to the United
States pursuant to Subsection H. of this Section because such transaction results in
a smaller profit or a larger loss than would have resulted if the transaction had been
at arm's length and had the Yield of the Bonds not been relevant to either party.
J. No Rebate Reauired. The City need not comply with the covenants
and duties imposed by the provisions of Subsection H. of this Section if
(1) the City is a governmental unit with general taxing powers;
(2) 95% of the Net Proceeds of the Bonds and all income from
the investment thereof will be used for the governmental activities of the
City;
(3) the aggregate face amount of all debt obligations issued or
expected to be issued by the City or any subordinate entity in the calendar
year in which the Bonds are issued (including the Bonds but excluding
obligations to be redeemed with proceeds of the Bonds within 90 days
after the date on which the Bonds are to be issued) is not reasonably
expected to exceed $5,000,000; and
(4) the City otherwise satisfies the requirements of paragraph
(4)(c) of section 148(D of the Code and the regulations and rulings
thereunder.
K. Elections. The City hereby directs and authorizes the Mayor,
Mayor Pro Tem, City Secretary, or City Attorney, either or any combination of the
foregoing, to make such elections in the Certificate as to Tax Exemption or similar or
other appropriate certificate, form, or document permitted or required pursuant to the
provisions of the Code or the Regulations, as they deem necessary or appropriate in
connection with the Bonds. Such elections shall deemed to be made on the Closing
Date.
L. Qualified Tax-Exempt Oblil!ations. The City hereby designates the
Bonds as qualified tax-exempt obligations for purposes of section 265(b) of the Code.
SECTION 17: Satisfaction ofOblil!ation ofCitv. If the City shall pay
or cause to be paid, or there shall otherwise be paid to the Holders, the principal of,
premium, if any, and interest on the Bonds, at the times and in the manner stipulated
in this Ordinance, then the pledge of taxes levied and all covenants, agreements, and
other obligations of the City to the Holders shall thereupon cease, terminate, and be
discharged and satisfied.
Bonds, or any principal amount(s) thereof, shall be deemed to have been
paid within the meaning and with the effect expressed above in this Section when (i)
0034925
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money sufficient to pay in full such Bonds or the principal amount(s) thereof at Stated
Maturity or to the redemption date therefor, together with all interest due thereon,
shall have been irrevocably deposited with and held in trust by the Paying
AgentlRegistrar, or an authorized escrow agent, or (ii) Government Securities shall
have been irrevocably deposited in trust with the Paying AgentlRegistrar, or an
authorized escrow agent, which Government Securities have been certified by an
independent accounting firm to mature as to principal and interest in such amounts
and at such times as will insure the availability, without reinvestment, of sufficient
money, together with any money deposited therewith, if any, to pay when due the
principal of and interest on such Bonds, or the principal amount(s) thereof, on and
prior to the Stated Maturity thereof or (if notice of redemption has been duly given
or waived or if irrevocable arrangements therefor acceptable to the Paying
AgentlRegistrar have been made) the redemption date thereof. The City covenants
that no deposit of money or Government Securities will be made under this Section
and no use made of any such deposit which would cause the Bonds to be treated as
arbitrage bonds within the meaning of section 148 of the Code (as defined in Section
16).
Any money so deposited with the Paying AgentlRegistrar, and all income
from Government Securities held in trust by the Paying AgentlRegistrar, or an
authorized escrow agent, pursuant to this Section which is not required for the
payment of the Bonds, or any principal amount(s) thereof, or interest thereon with
respect to which such money has been so deposited shall be remitted to the City or
deposited as directed by the City. Furthermore, any money held by the Paying
AgentlRegistrar for the payment of the principal of and interest on the Bonds and
remaining unclaimed for a period of four (4) years after the Stated Maturity, or
applicable redemption date, of the Bonds such money was deposited and is held in
trust to pay shall upon the request of the City be remitted to the City against a
written receipt therefor, subject to the unclaimed property laws of the State of Texas.
SECTION 18: Ordinance a Contract - Amendments - Outstandinl!
Bonds. The City acknowledges that the covenants and obligations of the City herein
contained are a material inducement to the purchase of the Bonds. This Ordinance
shall constitute a contract with the Holders from time to time, shall be binding on the
City, and shall not be amended or repealed by the City so long as any Bond remains
Outstanding except as permitted in this Section. The City may, without the consent
of or notice to any Holders, from time to time and at any time, amend this Ordinance
in any manner not detrimental to the interests of the Holders, including the curing
of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the
City may, with the written consent of Holders holding a majority in aggregate
principal amount of the Bonds then Outstanding affected thereby, amend, add to, or
rescind any of the provisions of this Ordinance; provided that, without the consent of
all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall
(i) extend the time or times of payment of the principal of, premium, if any, and
interest on the Bonds, reduce the principal amount thereof, the redemption price
0034925
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therefor, or the rate of interest thereon, or in any other way modify the terms of
payment of the principal of, premium, if any, or interest on the Bonds, (ii) give any
preference to any Bond over any other Bond, or (iii) reduce the aggregate principal
amount of Bonds required for consent to any such amendment, addition, or rescission.
SECTION 19: Sale of the Bonds: Use of Bond Proceeds. The sale of
the Bonds to
(the Purchaser and having all the rights, benefits, and obligations of a Holder) at the
price of par, plus accrued interest to the date of delivery of the Bonds, less a discount
of $ , is hereby confirmed. Delivery of the Bonds to the Purchaser shall
occur as soon as practicable after the adoption of this Ordinance, upon payment
therefor in accordance with the terms of sale.
Proceeds from the sale of the Bonds shall be applied as follows:
(1) Accrued interest and premium, if any, received from the Purchaser
shall be deposited into the Bond Fund.
(2) The balance of the proceeds derived from the sale of the Bonds
(after paying costs of issuance) shall be deposited into the special construction account
or accounts created for the projects to be constructed with the bond proceeds. This
special construction account shall be established and maintained at the City's
Depository and shall be invested in accordance with the provisions of Section 10 of
this Ordinance. Interest earned on the proceeds of the Bonds pending completion of
the projects financed with such proceeds shall be accounted for, maintained, deposited,
and expended as permitted by the provisions of Texas Revised Civil Statutes
Annotated Article 717k-9, as amended, or as required by any other applicable law.
Thereafter, such amounts shall be expended in accordance with Section 11.
SECTION 20: Control and Custodv of Bonds. The Mayor of the City
shall be and is hereby authorized to take and have charge of all necessary orders and
records pending investigation by the Attorney General of the State of Texas including
the printing and supply of definitive Bonds and shall take and have charge and
control of the Initial Bond(s) pending its approval by the Attorney General, the
registration thereof by the Comptroller of Public Accounts and the delivery thereof to
the Purchaser.
Furthermore, the Mayor, Mayor Pro Tem, City Secretary, Director of
Finance, or City Manager, either or all, are hereby authorized and directed to furnish
and execute such documents relating to the City and its financial affairs as may be
necessary for the issuance of the Bonds, the approval of the Attorney General, and
their registration by the Comptroller of Public Accounts and, together with the City's
financial advisor, bond counsel, and the Paying AgentlRegistrar, to make the
necessary arrangements for the delivery of the Initial Bond to the Purchaser and the
initial exchange thereof for definitive Bonds.
0034925
-25-
SECTION 21: Remedies in Event of Default. In addition to all the
rights and remedies provided by the laws of the State of Texas, the City covenants
and agrees particularly that in the event the City (a) defaults in the payments to be
made to the Bond Fund, or (b) defaults in the observance or performance of any other
of the covenants, conditions, or obligations set forth in this Ordinance, the Holders
of any of the Bonds shall be entitled to a writ of mandamus issued by a court of
proper jurisdiction compelling and requiring the City Council of the City and other
officers of the City to observe and perform any covenant, condition, or obligation
prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any
default shall impair any such right or power or shall be construed to be a waiver of
any such default or acquiescence therein, and every such right and power may be
exercised from time to time and as often as may be deemed expedient. The specific
remedies herein provided shall be cumulative of all other existing remedies and the
specification of such remedies shall not be deemed to be exclusive.
SECTION 22: Official Statement. The City Council ratifies and
confirms its prior approval of the form and content of the Official Statement prepared
in the initial offering and sale of the Bonds and hereby approves the form and content
of any addenda, supplement, or amendment thereto. The use of such Official
Statement in the reoffering of the Bonds by the Purchaser is hereby approved and
authorized. The proper officials of the City are hereby authorized to execute and
deliver a certificate pertaining to such Official Statement as prescribed therein, dated
as of the date of payment for and delivery of the Bonds.
SECTION 23: Printed Opinion. The Purchaser's obligation to accept
delivery of the Bonds is subject to its being furnished a final opinion of Fulbright &
Jaworski, Attorneys at Law, approving certain legal matters as to the Bonds, said
opinion to be dated and delivered as of the date of initial delivery and payment for the
Bonds. Printing of a true and correct copy of said opinion on the reverse side of each
of the Bonds with appropriate certificate pertaining thereto executed by facsimile
signature of the City Secretary of the City is hereby approved and authorized.
SECTION 24: CUSIP Numbers. CUSIP numbers may be printed or
typed on the Bonds. It is expressly provided, however, that the presence or absence
of CUSIP numbers on the Bonds shall be of no significance or effect as regards the
legality thereof, and neither the City nor attorneys approving said Bonds as to legality
are to be held responsible for CUSIP numbers incorrectly printed or typed on the
Bonds.
SECTION 25: Benefits of Ordinance. Nothing in this Ordinance,
expressed or implied, is intended or shall be construed to confer upon any person
other than the City, the Paying AgentlRegistrar, bond counsel, and the Holders any
right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any
0034925
-26-
provision hereof, this Ordinance and all its provisions being intended to be and being
for the sole and exclusive benefit of the City, the Paying AgentlRegistrar, bond
counsel, and the Holders.
SECTION 26: Inconsistent Provisions. All ordinances, orders, or
resolutions, or parts thereof, which are in conflict or inconsistent with any provision
of this Ordinance are hereby repealed to the extent of such conflict and the provisions
of this Ordinance shall be and remain controlling as to the matters contained herein.
SECTION 27: Governinl! Law. This Ordinance shall be construed
and enforced in accordance with the laws of the State of Texas and the United States
of America.
SECTION 28: Effect of Headings. The Section headings herein are
for convenience only and shall not affect the construction hereof.
SECTION 29: Severabilitv. If any provision of this Ordinance or the
application thereof to any circumstance shall be held to be invalid, the remainder of
this Ordinance and the application thereof to other circumstances shall nevertheless
be valid, and this City Council hereby declares that this Ordinance would have been
enacted without such invalid provision.
SECTION 30: Public Meetine:. It is officially found, determined, and
declared that the meeting at which this Ordinance is adopted was open to the public
and public notice of the time, place, and subject matter of the public business to be
considered at such meeting, including this Ordinance, was given, all as required by
Texas Revised Civil Statutes Annotated Article 6252-17, as amended.
SECTION 31: Authorization of Pavinl! Al!entlRegistrar Acreement.
The City Council of the City hereby finds and determines that it is in the best interest
of the City to authorize the execution of a Paying AgentlRegistrar Agreement
concerning the payment, exchange, and transferability of the Bonds. A copy of the
Paying AgentlRegistrar Agreement is attached hereto as Exhibit A and is incorporated
herein by reference as fully as if recopied in its entirety in this Ordinance.
SECTION 32: Incorporation of Preamble Recitals. The recitals
contained in the preamble to this Ordinance are hereby found to be true, and such
recitals are hereby made a part of this Ordinance for all purposes and are adopted as
a part of the judgment and findings of the City Council of the City of Schertz, Texas.
SECTION 33: Emerl!encv. By reason of the urgent necessity to issue
the Bonds as soon as possible to enable the City to proceed with needed public
improvements, an emergency is hereby declared to exist making it necessary to the
preservation of the public peace, property, health, safety that this Ordinance become
effective immediately upon its passage, and it is so enacted.
0034925
-27-
PASSED AND ADOPTED on the 17th day of November, 1992.
CITY OF SCHERTZ, TEXAS
Mayor
ATTEST:
City Secretary
(CITY SEAL)
Exhibit A - Paying AgentlRegistrar Agreement
0034925
-28-
'"
RAUSCHER PIERCE REFSNES,INC.
Thomas M. Anderlitch
Vice President
December 14, 1992
Ms. June G. Krause
City Secretary
City of Schertz
Post Office Drawer I
Schertz, Texas 78154
Re: $620,000
CITY OF SCHERTZ, TEXAS
General Obligation Bonds, Series 1992
Dear June:
Please find enclosed herewith a copy of my letter to Rauscher Pierce Refsnes, Inc.,
Purchasers of the above-referenced issue of Bonds, which you should find self-explanatory.
You will need to plan to deposit the Good Faith Check you are holding, in the amount of
$12,400.00, on December 17, 1992. Rita or I will advise you when funds have been wired
and the totals should be handled as follows:
$ 607,600.00
12.400.00
Principal amount less Good Faith Check
Good Faith Check
$ 620.000.00
To be deposited in Construction Fund Account
$ 1.733.84
To be deposited in Interest & Sinking Fund Account
We are also enclosing a debt amortization schedule for your records.
If you have any qucstions or require additional information, pleasc do not hcsitatc to
contact us, and with best wishes for the Holiday Season, I remain,
Yours truly,
~"~"li"h
Vice President
TMNrgj
Enclosure
1600 NCNB Plaza, 300 Convent. San Antonio, Texas 78205 . (512) 225-6611
Member New York Stock Exchange, Inc.
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RAUSCHER PIERCE REFSNES,INC.
Thomas M. Anderlitch
Vice President
December 14, 1992
Ms. June G. Krause
City Secretary
City of Schertz
Post Office Drawer I
Schertz, Texas 78154
Re: $200,000
CITY OF SCHERTZ, TEXAS
Combination Tax and Junior Lien Revenue
Certificates of Obligation, Series 1992
Dear June:
Please find enclosed herewith a copy of my letter to Rauscher Pierce Refsnes, Inc.,
Purchasers of the above-referenced issue of Bonds, which you should find self-explanatory.
You will need to plan to deposit the Good Faith Check you are holding, in the amount of
$4,000.00, on December 17, 1992. Rita or I will advise you when funds have been wired and
the totals should be handled as follows:
$ 196,000.00
4.000.00
Principal amount less Good Faith Check
Good Faith Check
,$ 200,000.00
To be deposited in Construction Fund Account
$
522.67
To be dcposited in Interest & Sinking Fund Account
We are also enclosing a debt amortization schedule for your records.
If you have any questions or require additional information, please do not hesitate to
contact us, and with best wishes for the Holiday Season, I remain,
Yours truly,
~:"lil<h
Vice President
TMNrgj
Enclosure
1600 NCNB Plaza, 300 Convent. San Antonio, Texas 78205 . (512) 225-6611
Member New York Stock Exchange, Inc.
RAUSCHER PIERCE REFSNES,INC.
Thomas M. Anderlitch
Vice President
December 14, 1992
Mr. Danny Palaci
Municipal Ca Iering
Rauscher p(e'rce Refsnes, Inc.
2500 Tower, 700 North Pearl
Pia of the Americas
allas, Texas 75201
Re: $200,000
CITY OF SCHERTZ, TEXAS
Combination Tax and Junior Lien Revenue
Certificates of Obligation, Series 1992
Dear Danny:
In accordance with your telephone conversation with Rita, the agreed delivery date for the
above-referenced issue of Bonds is Thursday, December 17, 1992, and the amount is as
follows:
Principal $ 200,000.00
Add: Accrued Interest from
12/1/92 through 12/17/92 522.67
Sub-total $ 200,522.67
Less: Good Faith Check 4.000.00
TOTAL DUE CITY $ 196,522.67
These funds should be wired by 10:00 a.m. on the 17th to New First City, Texas - Austin,
Austin, Texas (Attention: Ms. Mary Dyer), ABA #114921800, for unconditional credit to
the City of Schertz, Texas. It is my understanding that you have provided Ms. Dyer wiIh
registration and delivery instructions.
1600 NCNB Plaza, 300 Convent. San Antonio, Texas 78205 . (512) 225-6611
Member New York Stock Exchange, Inc.
Mr. Danny Palacio
December 14, 1992
Page 2
If you have any questions or require additional information, please do not hesitate to
contact me, and with kind regards, I remain,
Yours truly,
1:: ~~do"itoh
Vice President
TMNrgj
cc:
Mr. Kerry R. Sweatt
City Manager
City of Schertz
Ms. June G. Krause
'(..-/City Secretary
City of Schertz
Ms. Mary Dyer
Trust Division
New First City, Texas - Austin
Mr. W. Jeffrey Kuhn
Fulbright & Jaworski
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RAUSCHER PIERCE REFSNES,INC
Thomas M. Anderlitch
Vice President
December 14, 1992
Mr. Danny Pal .
Municipal iering
Rausche ierce Refsnes, Inc.
2500 R Tower, 700 North Pearl
PI a of the Americas
allas, Texas 75201
Re: $620,000
CITY OF SCHERTZ, TEXAS
General Obligation Bonds, Series 1992
Dear Danny:
In accordance with your telephone conversation with Rita, the agreed delivery date for the
above-referenced issue of Bonds is Thursday, December 17, 1992, and the amount is as
follows:
Principal $ 620,000.00
Add: Accrued Interest from
12/1192 through 12/17/92 1.733.83
Sub-total $ 621,733.83
Less: Good Faith Check 12.400.00
TOTAL DUE CITY $ 609,333.83
These funds should be wired by 10:00 a.m. on the 17th to New First City, Texas - Austin,
Austin, Texas (Attention: Ms. Mary Dyer), ABA #114921800, for unconditional credit to
the City of Schertz, Texas. It is my understanding that you have provided Ms. Dyer with
registration and delivery instructions.
1600 NCNB Plaza. 300 Convent. San Antonio, Texas 78205 . (S12) 225-6611
Member New York Stock Exchange, Inc.
Mr. Danny Palacio
December 14, 1992
Page 2
If you have any questions or require additional information, please do not hesitate to
contact me, and with kind regards, I remain,
Yours truly,
~.
Thomas << Anderlitch
Vice President
TMNrgj
cc:
Mr. Kerry R Sweatt
City Manager
City of Schertz
Ms. June G. Krause
~ Secretary
City of Schertz
Ms. Mary Dyer
Trust Division
New First City, Texas. Austin
Mr. W. Jeffrey Kuhn
Fulbright & Jaworski
OFFICIAL BID FORM
Mayor and City Council
City of Schertz (the "City")
I400 Schertz Parkway
P.O. Drawer 1
Schertz, Texas 78I54-0890
November 17, 1992
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement, dated October 20, I992 which terms are incorporated by reference
to this proposal, we hereby submit the following bid for $620,000 CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION BONDS, SERIES
1992, dated December 1, 1992 (the "Bonds').
For said legally issued Bonds, we will pay you the par value thereof, plus accrued interest from their date to the date of delivery to us, plus a cash
premium of S -0- for Bonds maturing June I and bearing interest per annum as follows:
June I, I995 7.25 % June I, 1999 6.875 %
June I. I996 7.25 % June I, 2000 5.25 %
June I. I997 7.25 % June I, 200I 5.40 %
June I, I998 7.25 % June I, 2002 5.60 %
June I, 2003 ;'.80 %
Interest cost, in accordance with the above bid, is:
Gross Interest Cost: $ 423,180.62
Plus: Premium $ -0-
NET INTEREST COST $ 423,180.62
EFFECTIVE INTEREST RATE Ii ~14101i
June I, 2004 5.90 %
June I, 2005 6.10 %
June I, 2006 6.25 %
June I. 2007 6.35 %
June I, 2008 6.40 %
%
Th I ' , I B d h II b . d' h f Rau.sche.r Pierce. Refsnes, Inc.d. ) W '11'd .
e mHa on s a e reglstere In t e name 0 ,lsyn Icate manager. e Wl proVl e New First
City, Texas--Austin, Austin, Texas, the Paying Agentl Registrar, on forms to be provided by the Paying Agent/Registrar, with our registration
instructions at least five business days prior to the date set for initial delivery.
Cashier's Check of the NationsBAnk Bank. D8.11c~s . Texas, in the amount of $12,400.00, which represents
our Good Faith Deposit (is attached hereto) or (I..".b.lolmOlll.~~~:toI.-mllllloniDit>of:tbid~ and is submitted in accordance
with the terms as set forth in the Official Notice of Sale, said check is to be applied to the purchase price of the Bonds.
We agree to accept delivery of and make payment for the Bonds in immediatelv available funds at the principal corporate trust office, New First
City. Texas--Austin, Austin, Texas, not later than 10:00 A.M., Austin, Texas time, on December 15, 1992, or thereafter on the date the Bonds
are tendered for delivery, pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the City, by the date of initial delivery of the Bonds, a certificate relating to the
"issue price" of the Bonds in the form and to the effect attached to or accompanying the Official Notice of Sale, with such changes thereto as
may be acceptable to the City.
Respectfully submitted,
RAUSCHER PIERCE REFSNES, INC.
By: ~ -' tJ,...o " t.-J
uthorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Schertz, Texas, subject to and in accordance wit
of Sale and Official Bid Form, this the 17th day of November, 1992.
. T:
ceretary, City of Schertz, Texas
cturn Good Faith Check is hereby acknowledged:
Firm:
By:
BOND YEARS
$620,000
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS
SERIES 1992
Dated: December I, 1992
Due: June 1
Year
OblIgation Years
UblIgatlOn Cumulative
Amount Years Obligation Years Year
$ 25,000 62.500 62.500 1995
25,000 87.500 150.000 1996
25,000 112.500 262.500 1997
25,000 137.500 400.000 1998
25,000 162.500 562.500 1999
25,000 187.500 750.000 2000
25,000 212.500 962.500 2001
25,000 237.500 1,200.000 2002
50,000 525.000 1,725.000 2003
50,000 575.000 2,300.000 2004
50,000 625.000 2,925.000 2005
100,000 1,350.000 4,275.000 2006
100,000 1,450.000 5,725.000 2007
70,000 1,085.000 6,810.000 2008
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005.
2006.
2007.
2008.
AVERAGE LIFE . 10.73387 YEARS
OFFICIAL BID FORM
Mayor and City Council
City of Schertz (the "City")
1400 Schertz Parkway
P.O. Drawer I
Schertz, Texas 78154-0890
November 17, 1992
Dear Ladies and Gentlemen:
Subject to the terms of your Official Notice of Sale and Official Statement, dated October 20, 1992 which terms arc incorporated by reference
to this proposal. we hereby submit the following bid for $200.000 CITY OF SCHERTZ. TEXAS COMBINA TlON TAX AND JUNIOR LlEN
REVENUE CERTlFICATES OF OBLlGATION, SERIES I992, dated December I, I992 (the "Certificates'').
For said legally issued Certificates, we will pay you the par value thereof, plus accrued interest from their date to the date of delivery to us, plus
a cash premium of $ - 0- for Certificates maturing September 1 and bearing interest per annum as follows:
September 1, 1994 7.00 % September I, I997 7.00 % September I, 2000 5.10 %
September I, I995 7.00 % September I, I998 5.70 % September I, 200I 5.40 %
September I, 1996 7.00 % September 1, 1999 5.00 % September 1, 2002 5.60 %
September I, 2003 5.80 %
Interest cost, in accordance with the above bid, is:
Gross Interest Cost: $ 94 600.00
Plus: Premium $ -0-
NET INTEREST COST $ 94,600.00
EFFEcrIVE INTEREST RATE 5.733333 %
Rauscher PIerce Refsnes, Inc.
The Initial Certificate shall be registered in the name of (syndicate manager). We will provide New
First City, Texas--Austin, Austin, Texas, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, with our
registration instructions at least five business days prior to the date set for initial delivery.
Cashier's Check of the NationsBank Bank, Dallas. Texas, in the amount of $4,000.00, which represents
our Good Faith Deposit (is attached hereto) or (kamtllalaKDlzdemlr:3li:kIitk:X:1[JDrUqH1m::mr.0bB:1I~Xb(S:B~ and is submitted in accordance
with the terms as set forth in the Official Notice of Sale, said check is to be appHed to the purchase price of the Certificates.
.We agree to accept delivery of and make payment for the Certificates in immediatelv available funds at the principal corporate trust office, New
First City, Texas-.Austin, Austin, Texas, not later than 10:00 A.M., Austin, Texas time, on December IS, 1992, or thereafter on the date the
Certificates are tendered for delivery, pursuant to the terms set forth in the Official Notice of Sale.
The undersigned agrees to complete, execute, and deliver to the City, by the date of initial delivery of the Certificates, a certificate relating to
the "issue price" of the Certificates in the form and to the effect attached to or accompanying the Official Notice of Sale, with such changes
thereto as may be acceptable to the City.
Respectfully submitted,
RAUSCHER PIERCE REFSNES, INC.
BY:~~
Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Schertz, Texas, subject to and in a cordance w t the Official Notice
of Sale and Official Bid Form, this the 17th day of November, 1992.
Return Good Faith Check is hereby acknowledged:
Firm:
By:
CERTIFICATE YEARS
$200,000
CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND JUNIOR LIEN REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1992
Dated: December 1, 1992
Due: September 1
Year Amount
1994 $ 10,000
1995 10,000
1996 10,000
1997 10,000
1998 10,000
1999 10,000
2000 10,000
2001 10,000
2002" 60,000
2003" 60,000
Obligation Years
uDllgatlon Cumulative
Years Obligation Years Year
17.500
27.500
37.500
47.500
57.500
67.500
77.500
87.500
585.000
645.000
17.500
45.000
82.500
130.000
187.500
255.000
332.500
420.000
1,005.000
1,650.000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
AVERAGE LIFE . 8.333 YEARS