80-10 Water Bond
ORDINANCE NO. 80-10
AN ORDINANCE RELATING TO THE SALE OF A SODAVILLE, OREGON GENERAL OBLIGATION WATER BOND AMENDING ORDINANCE NO. 80-7 AND DECLARING AN EMERGENCY.
THE CITY OF SODAVILLE, OREGON ORDAINS AS FOLLOWS:
Section 1.
Section 2. of Ordinance 80-7 as amended is hereby amended to read as follows:
(Terms of Loan).
That the City borrow $104,000.00 and issue as evident thereof a General Obligation Water Bond for the full principal amount of the loan. The bond shall be dated with the date of delivery thereof, and shall be in the principal installment as follows:
PROPOSED ISSUE AND DELIVERY DATE
July 18, 1980
PRINCIPAL AMOUNT
$104,000.00
The bond hereby authorized shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF OREGON
COUNTY OF LINN
CITY OF SODAVILLE, OREGON
GENERAL OBLIGATION INSTALLMENT WATER BOND NO. 1
KNOW ALL MEN BY THESE PRESENTS: The City of Sodaville, Linn County, Oregon hereinafter called the "Borrower", hereby acknowledges itself indebted and for value received, promises to pay to the order of the United States of America, acting through the Farmers Home Administration, United States Department of Agriculture, hereinafter called the "Government", the principal sum of $104,000, plus interest on the unpaid principal balance at the rate of 53 per annum. The said principal and interest shall be payable in the following installments on or before the following dates:
Interest only on the 18th day of duly, 1981 and the 18th day of July, 1982, and the sum of $6,167.00 annually thereafter on the 18th day of July until the principal and interest are fully paid, except that the final installment of the entire indebtedness evidenced hereby, if not sooner paid, shall be due and payable forty (40) years from the date of this bond. In lieu of coupons evidencing semi-annual interest, unpaid accrued interest shall be paid on the 18th day of January of each year and the amount of interest so paid shall be deducted from the next succeeding installment of $6,167.00 due the next succeeding 18th day of July.
All or part of the outstanding bond installments may be paid in inverse order on any interest payment date without premiums.
This bond shall be registered as to principal and interest in the name of the United States of America in an appropriate book in the Office of the Recorder of the borrowers, each registration to be noted on the back hereof by said Recorder and no transfer hereof shall be valid unless made on said book and similarly noted on the back hereof.
Both the principal and interest shall be paid to the United States of America as such registered holder at the Office of the Farmers Home Administration serving Linn County, Oregon.
Default hereunder shall constitute default under any other instrument evidencing a debt of Borrower owing to or insured by the Government or securing or otherwise relating to such a debt, and default under any other such instrument shall constitute default hereunder upon default and Government in its option may declare all or any part of said indebtedness immediately due and payable.
This bond is given as evidence of a loan to Borrower made by the Government pursuant to the Rural Development Act of 1972, as amended, and shall be subject to the present regulations of the Farmers Home Administration and to its future regulations not inconsistent with the express provisions hereof.
This bond is authorized and issued by virtue of the majority vote of the legal voters of the City of Sodaville, Oregon, voting at a special election called and held on the 18th day of September, 1979, and by virtue of Ordinance No. 46 of the City of Sodaville, Oregon, duly passed by the City Council and approved by the mayor of said City on December 8, 1979, and pursuant to the Constitutuion [sic] and Laws of the State of Oregon, and Charter of the City of Sodaville, Oregon, and law amendatory thereof and supplemental thereto.
This bond with interest thereon, is a general obligation of the City of Sodaville, Oregon, and in addition is payable as to principal and interest from the unobligated net revenues of the water facilities of said City. For the punctual payment of the principal of this bond with interest thereon as aforesaid, the full faith and credit of the City of Sodaville, Oregon, are hereby irrevocably pledged.
This bond is exchangeable at the sole expense of the Borrower
at any time, upon ninety (90) days written notice, at the request
of the registered owner hereof, and uoon surrender of this bond
negotiable coupon bonds payable to bearer registered as to principal
only of the denomination of $1,000.00 each, in the aggregate
principal amount equal to the unpaid orincipal amount of the
bond, and bearing interest on the unpaid principal balances at
the rate of 5% per annum.
It is hereby certified, recited, and declared that all acts,
conditions and things required to exist, happen, and be performed
precedent to and in the issuance of this bond have existed, have
happened, and have been performed in due time, form and manner as
required by law, that the amount of this bond, together with all
obligations of the Borrower does not exceed any limits prescribed
by the Constitution and Statutes of the State of Oregon and the
Charter and Ordinances of the City of Sodavilie, Oregon.
IN WITNESS WHEREOF, the City of Sodaville, Oregon, has
caused this bond to be signed by the Mayor of said City and its
corporate seal to be affixed hereto and attested by the recorder
of said city, all on the _. day of — , 19_
CITY OF SODAVILLE, LINN COUNTY, OREGON
BY: __________________________
Mayor
ATTEST:
__________________________
Recorder
__________________________
BOND REGISTRATION
DATE: __________________________
Registered in name of:
United States of America, Farmers Home Administration
__________________________
City Recorder
__________________________
Section 2.
Section 4 (b) 3., of Ordinance 80-7 is hereby amended to read as follows:
3. Reserve Fund, Water Account (bookkkeeping [sic] account) .
Out of the balance of income and revenue in the Enterprise Fund, Water Revenue Account remaining after the transfers required in item 1 and 2 above have been made, there shall annually be set aside and deposited in the Reserve Fund, Water Account the minimum sum Of $620.00 The Reserve Fund, Water Account shall be used and disbursed only for the purposes of paying the cost of repairing or replacing any damage to the Facility which may be caused by any unforeseen catastrophe and major maintenance and replacement, and when necessary, for the purpose of making payments of principal and interest on the bonds hereby authorized in the event the amount of the Debt Service Fund, Water Account is insufficient to meet such payments. Whenever disbursements are made from said account, and the balance falls below the FmHA required balance of $6,200.00, additional deposits shall be made until there is again accumulated the amount of $6,200.00 at which time the additional deposits may be discontinued.
Section 3. (Emergency Clause).
The Council desires and deems it necessary and advisable for the immediate preservation of the health, peace, and safety of the City of Sodaville that this Ordinance become effective at once, for the reason that the water system of said town is inadequate to meet its needs and plans for new construction and improvements must be commenced at once in order to be ready for use as soon as possible and, therefore, an emergency is hereby declared to exist and this Ordinance shall be in full force and effect from and after its passage and approval.