HomeMy WebLinkAbout0025_0023shall be continuously secured by a valid pledge of direct obli-
gations of, or obligations unconditionally guaranteed by, the
United States Government, 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 14. ADDITIONAL BONDS.: In addition to the right
to issue bonds of inferior lien as authorized by the laws of
this State, the Issuer reserves the right to issue 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 Bonds, 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 Texas;
(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 Issuer is in compliance with all other coven-
ants and undertakings in connection with all bonds then out-
standing and payable from the Net Revenues of the Utility,
System;
(C) the Net Revenues of the Utility System for either the
fiscal_. year ,or twelve-month period next preceding ;the date of
the passage of an ordinance authorizing the issuance of the
Additional Bonds ar certified by a certified public accountant
to have. been at least equal to one and one-half times the
average annual principal and interest requirements on all bonds
then outstanding against the Utility System and the bonds then
to be issued;
(d) a competent independent engineer certifies in writing
that in his opinion the average annual net earnings throughout
the life of the bonds then outstanding against the Utility Sys-
tem and the bonds then to issued shall be at least equal to one
and one-half times the average annual principal and interest
requirements on all bonds then outstanding against the Utility
System and the bonds then to be issued;
(e) the ordinance authorizing the issuance of the Addi-
tional Bonds shall provide (i) for an identical flow*of funds
as prescribed by Section 11 of the ordinances authorizing the
Parity Bonds; (ii) that allrevenues deposited in the special,
funds and accounts created and establisheu by such ordinances
shall• be commingled; and (9i.i) for appropriate additional or
larger payments to be made into said special.funds and accounts
and foi appropriate additional or larger amounts to be accumu-
lated in said special funds and accounts for allbondsthen
outstanding against the Utility -System and the proposed Addi-
tional Bonds, in full accord with the provisions of this Ordin-
ance.
(f) PROVIDED, FURTHER, that at any time after the "City
of Georgetown, Texas Utility System Revenue Bonds, Series 1966
and Series 1971" have, been refunded, paid off, cancelled and
retired, the Issuer may issue additional bonds on a parity in
all respects with the Bonds (without impairing the obligation
of contract with the holder of; the Bonds or obligations here-
after issued on a parity therewith) if the following terms.and
c0t1d4 Gtona haVe Lloen mot; (1) t1le app? 4 cAb le laws of the State
21