HomeMy WebLinkAbout0005_4Council may direct. Any obligations in which money is so invested shall be
kept in escrow in said Depository and shall be promptly sold and the proceeds
of sale applied to the making of payments required to be made from the Contin-
gency Fund, whenever such payments are required to be made under the foregoing
provisions df this Ordinance.
(e) SURPLUS FUNDS: All moneys remaining in the Utility System Revenue
Fund after the requirements of subsections (a), (b), (c), and (d) of this Sec-
tion 13 have been met (including any increased payments into the aforesaid
Bond Fund, Reserve Fund, and Contingency Fund as may be necessary by reason
of the issuance of Additional Bonds in the future under the provisions of the
Ordinances authorizing the Parity Bonds), and after all deficiencies shall
have been made up and all replacements made, shall be either used or accumulated
for the making of improvements, extensions and additions to the Utility
System, or may, in the discretion of the City be used for any other proper city
purpose now or hereafter permitted by law, including the use thereof in re-
tiring in advance of maturity any Additional Bonds then outstanding, in accord-
ance with provisions made for their prior redemption, or may be used to pur-
chase the Parity Bonds and Additional Bonds on the open market at not exceeding
the market value thereof. All bonds so paid, redeemed or purchased shall be
cancelled and shall not be re -issued. Nothing herein shall be construed, how-
ever, as impairing the right of the City to pay in accordance with the pro-
visions thereof any junior lien bonds hereafter legally issued by it.
Section 14. Security for Funds. All monies which are to be paid into
the Depository under the provisions of the Ordinances authorizing the Parity
Bonds shall be secured in accordance with the laws of the State of Texas ap-
plicable thereto, and the City covenants especially that such money shall be
continuously secured by a valid pledge of direct obligations of, or obligations
unconditionally guaranteed by, the United States of America, having a par
value, or market value when less than par, exclusive of accrued interest, at
all times at least equal to the total amount of money on deposit in the several
Funds in the Depository.
Section 15. Additional Bonds. In addition to the right to issue bonds
of inferior lien as authorized by the laws of this State, the City of George-
town reserves the right to issue not only the $75,000.00 balance of revenue bonds
voted at the election held February 26, 1966, and which is not herein authorized
to be issued, but also further and additional bonds from time to time payable
from the net income and revenues of the Utility System; and, when issued in
compliance with law and the terms and conditions hereinafter appearing, such
Additional Bonds shall be equally secured by a first lien on and pledge of the
Pledged Revenues; and the Additional Ponds, when issued, shall be payable from
the Utility System Revenue Bonds Interest and Sinking Fund and shall be in all
respects of equal dignity and on a parity with the Parity Bonds, PROVIDED
that in each instance:
(a) The Additional Bonds are authorized and issued in conformity with
the Constitution and applicable Statutes of the State of T"xas;
(b) The Bond Fund, the Reserve Fund, and the Contingency Fund contain
the amount of money then required to be on deposit therein and the City is
in compliance with all other covenants and undertakings in connection with all