11-B-17 - General Obligation refunding Bonds, Series 2011- ~ FINAL
ORDINANCE NO. I1B17
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 201.1", 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 $2,610,000 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
$2,675,000 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
1 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 far 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
95075237.2
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
WHEREAS, The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (as the
successor in interest to The Bank of New York, New York, New York) currently serves as the
paying agent for the Refunded Obligations; and
WHEREAS, BOKF, NA dba Bank of Texas, Austin, Texas (which is pat the depository
bank of the City} is hereby appointed as the Escrow Agent (hereinafter defined) for the Bonds;
and
1 WHEREAS, BOI{F, NA dba Bank of Texas, Austin, Texas is hereby also appointed as
~. Paying Agen#/Registrar (hereafter defined} far the Bonds; and
WHEREAS, the City Council also hereby finds and determines that the Refunded
~, Obligations are scheduled to~mature or are subject to being redeemed, not more than twenty (20)
years from the date of the refunding bonds herein authorized and being issued to restructure the
City's debt service and associated tax rakes in the coming years, and such refunding will result in
a net present value savings of $270,021.02 (10.345633%} and a gross savings of approximately
$305,506.21, including the City's contribution of $69,000.00; and
WHEREAS, the City Council hereby finds and determines that the issuance of the 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 - Puz~ose. General
obligation xefunding bonds of the City shall be and are hereby authorized to be issued in the
aggregate principal amount of TWO MILLION SIX HUNDRED SEVENTY FIVE
THOUSAND AND NO/100 DOLLARS ($2,675,000), to be designated and bear the title of
CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION REFUNDING BONDS, SERIES
2011" {the Bands), fox the purpose of providing funds for the {i) discharge and final payment of
the Refunded Obligations and (ii) payment of the costs of issuance of -the Bonds, all in
conformity with the laws of the State of .Texas, particularly Chapter 1207, as amended, Texas
~, Government Code, the City's Home Rule Charter, and an ordinance adopted by the City Council
on June 7, 2011.
SECTION 2: Fully Registered Obligations - ,Authorized Denominations - Stated
_ -Maturities -Interest Rates - Dated Date. The Bonds shall be issued as fully registered
obligations, without coupons, shall be dated June 1, 2011 {the Dated Date), and shall be in
denominations of $5,000 or any integral multiple thereof, and the Bonds shall become due and
~. payable on September i in each of the years and in principal amounts {the Stated Maturities) and
bear interest on the unpaid principal amounts from the Dated Date, or from the most recent
Interest Payment Date {hereinafter defined) to which interest has been paid or duly provided for,
-- to Stated Maturity, at the per annum rates, while Outstanding, in accordance with the following
schedule:
95075237.2 _2,_
';
0
i
Years of Principal Interest
Stated Maturity Amounts ($) Rates
2012 270,000 2.00
2013 285,000 2.00
2014 290,000 2,00
2015 300,000 2,00
2016 300,000 2.00
2017 300,000 2.00
2018 225,000 2,25
20i 9 230,000 2.50
2020 23 5,000 2, 75
2021 240,000 3.00
The Bonds shall bear interest on the unpaid principal amounts from the Dated Date, or
from the mast recent Interest Payment Date to which interest-has been paid or duly provided for,
to the earlier of redemption or Stated Maturity, while Outstanding, at the rates per annum shown
in the above schedule {calculated on the basis of a 360-day year of twelve 30-day months}.
Interest on the Bonds shall be payable on March 1 and September 1 in each year, commencing
March 1, 2012 {the Interest Payment Date), while the Bonds are Outstanding.
SECTION 3: Pa ent of Bonds - Pa ing A;~entlRegistrar.
The principal of, premium, if any, and the interest on the Bonds, due and payable by
reason of Stated Maturity, redemption, or otherwise, shall be payable in any coin or currency of
the United States of America which at the time of payment is Iegal tender for the payment of
public and private debts, and such payment of principal of, premium, if any, and interest on the
Bonds shall be without exchange or collection charges to the Holder {as hereinafter defined) of
the Bonds.
The selection and appointment of BOKF, NA dba Bank of Texas, Austin, Texas (the
Paying Agent/Registrar} to serve as the initial 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 corporate trust office of the Paying Agent/Registrarbnoks and records (the Security Register)
far the registration, payment, and transfer of the Bonds, all as provided herein, in accordance
with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially
final form, as Exhibit A hereto, and such reasonable rules and regulations as the Paying
Agent/Registrar 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 a
corporation organized and doing business under the Iaws of the United States of America or of
any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar
shall be subject to supervision or examination by federal or state authority and authorized by law
to serve as a Paying AgentlRegistrar.
95075237.2 _3 _
The City reserves the right to appoint a successor Paying AgentlRegistrar upon providing
the previous Paying Agent/Registxar with a certified copy of a resolution ar ordinance
terminating such agency. Additionally, the City agrees to promptly cause a written notice of this
substitution to be sent to each Holder of the Bonds by United States mail, first-class postage
prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
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 appearing on the Security Register (the Holder or Holders) maintained on behalf of the
City by the Paying Agent/Registrar as hereinafter provided {i) on the Record Date {hereinafter
def ned) for purposes of payment of interest on the Bonds, (ii) on the date of surrender of the
Bonds for purposes of receiving payment of principal thereof at the Bonds' Stated Maturity or
upon redemption of the Bonds, and (iii) on any other da#e far any other purpose. 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 Agent/Registrar, 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 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 nrronth next preceding an Interest Payment Date for the Bonds
(the Record Date) and shall be paid {i) by check sent by United States mail, first-class postage
prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the Security
Register or {ii) by such other method, acceptable to the Paying Agent/Registrar, 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, a Sunday, a legal holiday, or a day on which banking institutions in the city
where the corporate trust office of the Paying Agent/Registrar is located are authorized bylaw 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 anon-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 Agent/Registrar, 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 of a Band appearing on the Security Register at the close of business on the last business
day next preceding the date of mailing of such notice.
s
95075237.2 -4-
~! SECTION 4: Redemption.
A. Optional Redemption. The Bonds having Stated Maturities on and after
September 1, 2020 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on September I, 2019, or on any date thereafter, in whole or in part, in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar) at the redemption price of par plus accrued interest to the
date of redemption.
B. Exercise of Redemption Option. At least forty-five (~15) 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 Agent/Registrar 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
I~ 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 Agent/Registrar 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, by the Paying Agent/Registrar to each
Holder of a Band to be redeemed, in whole or in part, at the address of the 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 of redemption 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 corporate trust office of the Paying Agent/Registrar
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 Agent/Registxar, then on
the redemption date designated in such notice, interest on said Bonds (or the principal amount
thereof to be redeemed) called for redemption shall cease to accrue, and such Bonds shall not be
45075237.2 -5_
deemed to be Outstanding in accordance with the provisions of this Ordinance. This notice may
also be published once in a financial publication, journal, or reporter of general circulation
among securities dealers in the City of New York, New York (including, but not limited to, The
Bond Buyer and The Wall Street Tournal), or in the State of Texas (including, but not limited to,
The Texas Bond Reporter). Additionally, this notice may also be sent by the City to any
registered securities depository and to any national information service that disseminates
redemption notices.
E. Transfer/Exchan e of Bonds. Neither the City nor the Paying Agent/Registrar
shall be required 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 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
p~•
SECTION 5: Execution - Re~astration. The Bonds- shall be executed on behalf of the
City by its Mayor under khe seal of the City reproduced or impressed thereon and attested by its
City Secretary. The signature of any of said officers on the Bonds maybe manual or facsimile.
Bonds bearing the manual or facsimile signatures of individuals who were, at the time of the
Dated Date, the proper officers of the City shall bind the City, notwithstanding that such
individuals or either of them shall cease to hold. such offices prior to the delivery of the Bonds to
the Purchasers {hereinafter defined}, all as authorized and provided in Chapter 1201, as amended,
Texas Government Code.
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
Agent/Registrar 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 G: Rye ,istration -Transfer -, Exchange of Bonds -Predecessor Bonds. The
Paying AgentlRegistrar shall obtain, record, and maintain in the Security Register the name and
address of every owner of the Bonds, or, if appropriate, the nominee thereof. Any Bond may, in
accordance with its terms and the terms hereof, be transferxed 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 Agent/Regist~rar.
Upon surrender for transfer of any Bond at the corporate trust office of the Paying
Agent/Registrar, the City shall execute and the Paying AgentlRegistrar shall register and deliver,
in the name of the designated transferee or transferees, one or more new Bonds of authorized
denomination and having the same Stated Maturity or its redemption, in whole or in part, and of
alike interest rate and aggregate principal amount as the Bond or Bonds surrendered for transfer.
95075237.2 _6_
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 corporate trust office of the Paying AgentlRegistrar. Whenever any
Bonds are so surrendered for exchange, the City shall execute, and the Paying AgentlRegistrar
shall register and deliver, the Bonds to the Holder requesting the exchange.
All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the
corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the Holder at
his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and
binding obligations of the City, evidencing the same obligation to pay, and entitled to the same
benefits under this Ordinance, as the Bonds surrendered upon such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this Sectian 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 17 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.
SECTION 7: Initial Bonds. The Bonds herein authorized shall be initially issued as a
single fully registered Bond in the aggregate principal amount of $2,675,400 with principal
installments to become due and payable as provided in Section.2 hereof and numbered T-1 (the
Initial Bonds}, and the Initial Bonds shall be registered in the name of the Purchasers or the
designee thereof. The Initial Bonds shall be the Bonds submitted to the Office of the Attorney
General of the State of Texas for approval, certified and registered by the Office of the
Comptroller of Public Accounts of the State of Texas and delivered to the Purchasers. Any time
after the delivery of the Initial Bands, the Paying AgentlRegistrar, pursuant to written
instructions from the Purchasers, ar the designee thereof, shall cancel the Initial Bonds delivered
hereunder and exchange therefor definitive Bands of like kind and of authorized denominations,
Stated Maturities, principal amounts bearing applicable interest rates, and shall be lettered "R"
and numbered consecutively from one {1}upward for transfer and delivery to the Holders named
at the addresses identified therefor; all pursuant to and in accordance with such written
instructions from the Purchasers, or the designee thereof, and such other information and
a documentation as the Paying Agent/Registrarmoy reasonably require.
SECTIONS: FORMS.
A. Forms Generally. The Bands, the Registration Certificate of Comptroller of
Public Accounts of the State of Texas, the Registration Certificate of Paying AgentlRegistrar,
and the form of Assignment to be printed on each of the Bonds shall be substantially in the forms
95475237.2 -7-
i
1 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 insurance legends in the event the Bonds, or any Stated
Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform
Securities Identification Procedures of the American Bankers Association) and such legends and
endorsements (including 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, produced by any
combination of these methods, 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.
1
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1
95075237.2 _g_
B. Form of Definitive Bond.
REGISTERED
NO.
United States of America
State of Texas
Dated Date:
June 1, 2011
REGISTERED OWNER:
PRINCIPAL AMOUNT:
REGISTERED
PRINCIPAL AMOUNT
Counties of Guadalupe, Corral, and Bexar
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION REFUNDING BOND,
SERIES 2411
Interest Rate; Stated Maturity; CUSIP NO:
The City of Schertz, Texas (the City), a body corporate and a municipal corporation in
the Counties of Guadalupe, Corral, and Bexar, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the order of the Registered Owner specified
above, or the registered assigns thereof, on the Stated Maturity date specified above {or so much
thereof as shall not have been paid upon prior redemption), the Principal Amount specified
above and to pay interest on the unpaid Principal Amount hereof from the Dated Date or from
the most recent interest payment date to which interest has been paid or duly provided for until
such Principal Amount has become due and payment thereof has been made or duly provided
for, to the earlier of redemption or Stated 1Vlaturity, while Outstanding, at the per annum rate of
interest specified above computed on the basis of a 360-day year of twelve 30-day months; such
interest being payable on March 1 and September 1 of each year, commencing March 1, 2012.
Principal on this Bond shall be payable to the Registered Owner hereof (the Holder),
upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar
executing the registration certificate appearing hereon or a successor thereof. 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 each interest payment date. All payments of principal of, 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 Agent/Registrar 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 Agent/Registrar,
requested by the Holder hereof at the Holder's risk and expense.
95075237.2 -g..
This Bond is one of the series specified in its title issued in the aggregate principal
amount of $2,675,000 (the Bonds) pursuant to an ordinance adopted by the governing body of
the City (the Ordinance), for the purpose of providing funids for the {i) discharge and final
payment of the Refunded Obligations and (ii) payment of the costs of issuance of the general
obligation refunding bonds, under and in strict conformity with the laws of the State of Texas,
including Chapter 1207, as amended, Texas Government Code and the City's Home Rule
Charter.
As specified in the Ordinance, the Bonds having Stated Maturities on and after
September 1, 2020 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on September 1, 2019, or on any date thereafter, in whole or in part in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated Maturity selected 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 the 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 in 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 Agent/Registrar at its 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.
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 Agent/Registrar, 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 Agent/Registrar shall not be
required to issue, transfer, or exchange this Bond within forty-five {45} days of the date fixed for
redempHan; provided, however, such limitation of transfer shall na# be applicable to an exchange
by the Holder of the unredeemed balance hereof in the event of its redemption in part.
The Bonds of this series are payable from the proceeds of an annual ad valorem tax
levied upon all taxable property within the City within the limitations prescribed bylaw.
.~
Reference is hereby made to the Ordinance, a copy of which is on file in the corporate
trust office of the Paying Agent~Registrar, 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 the Bonds; the conditions upon which the Ordinance maybe amended or
b' supplemented with or without the consent of the Holders; the rights, duties, and obligations of
the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond maybe
sso~s2~~.a - l o-
redeemed or discharged at or prior to the Stated Maturity thereof, and deemed to be no longer
Outstanding thereunder; and for the other terms and provisions specified in the Ordinance.
Capitalized terms used herein have the same meanings assigned in the Ordinance.
This Bond, subject to certain limitations contained in the Ordinance, may be transferred
on the Security Register upon presentation and surrender at the 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, or its redemption, in whole or in part, of authorized denominations, bearing khe 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 Agent/Registrar, and ariy 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 hexeof for purposes of receiving payment of principal hereof at its Stated Maturity or
its redemption, in whole or in part, and (iii} on any other date as the owner hereof for all other
purposes, and neither the City nor the Paying AgentlRegistrar, or any such agent of either, shall
be affected by notice to the contrary. In the event of anon-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 ffteen (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 an 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 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 issuance
of the Bands does not exceed any constitutional or statutory limitation; and that due provision
has been made for the payment of the principal of, premium if any, and interest on the Bonds by
the levy of a tax as aforestated. In case any provision in this Bond or any application thereof
shall be deemed 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.
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95075237.2 ' 11-
IN WITNESS WHEREOF, tlae City has caused this Bond to be duly executed under its
official seal.
CITY OF SCHERTZ, TEXAS
iv~ayvi
ATTEST:
City Secretary
(CITY SEAL}
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95075237.2 _12_