ORD 2002-07TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2002 - 07
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING
ORDINANCE NO. 2001-28 AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION
BONDS BY AMENDING SECTION 5 OF THAT ORDINANCE PROVIDING FOR THE
FORM OF THE INITIAL BOND; PROVIDING A CUMULATIVE CLAUSE; PROVIDING
FOR SAVINGS; PROVIDING SEVERABILITY; PROVIDING FOR PUBLICATION;
PROVIDING ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, on December 3, 2001, the Town Council of the Town of Trophy Club, Texas, approved
Ordinance No. 2001-28 authorizing the issuance of general obligations bonds which were lawfully and favorably
voted for at an election duly held the Town of Trophy Club, Texas, on July 15, 2000;
WHEREAS, the bonds authorized thereby were issued and delivered pursuant to Chapter 1331, Texas
Government Code;
WHEREAS, the meeting of the Town Council was open to the public and public notice of the time, place
and purpose of such meeting was given pursuant to Chapter 551, Texas Government Code, the "Open Meetings
Act";
WHEREAS, a portion of Section 5 of Ordinance No. 2001-28 authorizing a mandatory call was omitted;
and
WHEREAS, this Ordinance amends Section 5 of Ordinance No. 2001-28 to include the language providing
for a mandatory call and does not affect the validity of the bond sale, issuance or prior approval by the Town.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS:
SECTION 1.
INCORPORATION OF PREMISES
That the above and foregoing premises are true and correct and are incorporated herein and made a part
hereof for all purposes.
SECTION 2.
AMENDMENT TO SECTION 5
Section 5 of Ordinance No. 2001-28 is hereby amended to be and read in its entirety as follows, and all
other sections, paragraphs, phrases, clauses, or terms of Ordinance No. 2001-28 shall remain the same:
"SECTION 5.
FORM OF INITIAL BOND
The form of the Initial Bond, including the form of Registration Certificate of the Comptroller of
Public Accounts of the State of Texas to be endorsed on the Initial Bond, shall be substantially as
follows:
FORM OF INITIAL, BOND
NO, R-1$3,000,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
TOWN OF TROPHY CLUB, TEXAS
GENERAL OBLIGATION BOND, SERIES 2002
The TOWN OF TROPHY CLUB, in DENTON COUNTY (the "Issuer"), being a political
subdivision of the State of Texas, hereby promises to pay to
SALOMON SMITH BARNEY, INC.
or to the registered assignee or assignees of this Bond or any portion or portions hereof (in each case, the
"registered owner") the aggregate principal amount of
THREE MILLION DOLLARS
in annual installments of principal due and payable on September 1 in each of the years, and in the
respective principal amounts, as set forth in the following schedule:
YEAR
AMOUNT
YEAR
AMOUNT
2003
90,000
2013
150,000
2004
95,000
2014
155,000
2005
100,000
2015
165,000
2006
105,000
2007
110,000
2008
115,000
2018
540,000
2009
125,000
:raw1:r-
2010
130,000
x.::i-a:
:�:{::i==r
2011
135,000
2021.
615,000
2012
140,000
2022
230,000
and to pay interest, from the date of this Bond hereinafter stated, on the balance of each such installment of
principal, respectively, from time to time remaining unpaid, at the rates as follows:
2
maturities 2003,
5.625
%
maturities 2013,
4.450
%
maturities 2004,
5.625
%
maturities 2014,
4.550
%n
maturities 2005,
5.625
%
maturities 2015,
4.650
%
maturities 2006,
5.500
17o
44 w
a,.r.:{:
%p
maturities 2007,
5.500
°Ia
%
maturities 2008,
5.500
%
maturities 2018,
4,750
%
maturities 2009,
5.500
%
maturities 2010,
4.125
%
%
maturities 2011,
4.250
%
maturities 2021.,
5.000
%
maturities 2012,
4.350
%
maturities 2022,
5.000
%
with said interest being payable an September 1, 2002, and semiannually on each March 1 and September 1
thereafter while this Bond or any portion hereof is outstanding and unpaid.
THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Bond are payable in lawful
money of the United States of America, without exchange or collection charges. The installments of principal and
the interest on this Bond are payable to the registered owner hereof through the services of JPMORGAN CHASE
BANK, HOUSTON. TEXAS, which is the "Paying Agent/Registrar" for this Bond. Payment of all principal of and
interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each principal
and/or interest payment date by check. or draft, dated as of such date, drawn by the Paying Agent/Registrar on, and
payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond
Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such
check or draft shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each
such principal and/or interest payment date, to the registered owner hereof, at the address of the registered owner, as
it appeared on the fifteenth day of the month next preceding each such date (the "Record Date") on the Registration
Books kept by the Paying Agent/Registrar, as hereinafter described, or by such other method acceptable to the
Paying Agent/Registrar requested by, and at the risk and expense of, the registered owner. The Issuer covenants with
the registered owner of this Bond that on or before each principal and/or interest payment date for this Bond it will
make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance,
the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on
this Bond, when due.
IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a
legal holiday, or a day on which banking institutions in the city where the Paying Agent/Registrar 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 Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and
payment on such date shall have the same force and effect as if made on the original date payment was due.
THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas, in the
principal amount of ;3,000,000, for the purpose of constructing and improving the Town's streets.
ON SEPTEMBER 1, 2011, or any date thereafter, the unpaid installments of principal of this Bond may be
prepaid or redeemed prior to their scheduled due dates, at the option of the Issuer, with funds derived from any
available source, as a whole, or in part, and, if in part, the Issuer shall select and designate the maturity, or maturities,
and the amount that is to be redeemed, and if less than a whole maturity is to be called, the Issuer shall direct the
Paying Agent/Registrar to call by lot (provided that a portion of this Bond may be redeemed only in an integral
multiple of $5,000), at the redemption price of the principal amount, plus accrued interest to the date fixed for
prepayment or redemption.
THE Bonds of this Series scheduled to mature on SEPTEMBER 1, 2018 and 2021 are subject to mandatory
redemption prior to their scheduled maturities, and shall he redeemed by the Issuer, in part, prior to their scheduled
maturities, with money from the Mandatory Redemption Account of the Interest and Sinking Fund, with [lie
particular Bonds or portion thereof to be redeemed to be selected by the Paying Agent/Registrar, by lot or other
customary method (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at a
redemption price equal to the par or principal amount thereof and accrued interest to the date of redemption, on the
dates, and in the principal amounts, respectively, as shown in the following schedule:
September 1, 2018 Maturity
Mandatory Redemption Dates Principal Amounts
20.1.6 $170,000
2017 180,000
2018 190,000 (payment at maturity)
September 1, 2021 Maturity
Mandatory Redemption Dates Principal Amounts
2019 $195,000
2020 205,000
2021 215,000 (payment at maturity)
The principal amount of the Bonds required to be redeemed on each such redemption date pursuant to the foregoing
operation of the Mandatory Redemption Account shall be reduced, at the option of the Issuer, by the principal
amount of any Bonds, which at least 45 days prior to the mandatory sinking fund redemption date, (1) shall have
been defeased or acquired by the Issuer and delivered to the Paying Agent/Registrar for cancellation, or (2) shall
have been purchased and canceled by the Paying Agent/Registrar at the request of the Issuer at a price not exceeding
the principal amount of such Bonds plus accrued interest to the date of purchase, (3) have been redeemed pursuant to
the optional redemption provisions set forth above and not theretofore credited against a mandatory sinking fund
redemption. During any period in which ownership of the Bonds is determined by a book entry at a securities
depository for the Bonds, if fewer than all of the Bonds of the same maturity and hearing the same interest rate are to
be redeemed, the particular Bonds of such maturity and bearing such interest rate shall he selected in accordance
with (lie arrangements between the Issuer and the securities depository,
AT LEAST 30 days prior to the date fixed for any such prepayment or redemption, a written notice of such
prepayment or redemption shall be mailed by United States mail, first class postage pre -paid, by the Paying
Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due
provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required prepayment or
redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus accrued interest
thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption is given,
and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be
so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due
date, and shall not bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as
being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus
4
accrued interest to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds
provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such prepayments
or redemptions of principal of this Bond or any portion hereof.
THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and
unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof
and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the
capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other
requirements for such transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar for
cancellation, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to
the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any portion or
portions hereof in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or
any such portion or portions hereof is or are to be transferred and registered. Any instrument or instruments of
assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any
such portion or portions hereof by the initial registered owner hereof. A new bond or bonds payable to such assignee
or assignees (which then will be the new registered owner or owners of such new Bond or Bonds) or to the initial
registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered
owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond or any portion
or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conversion and
exchange of this Bond or any portion hereof, The registered owner of this Bond shall be deemed and treated by the
Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and
discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar
shall not be affected by any notice to the contrary.
AS PROVIDED above and in the Bond Ordinance, this Bond, to the extent of the unpaid or unredeemed
principal balance hereof, may be converted into and exchanged for a like aggregate principal amount of fully
registered bonds, without interest coupons, payable to the assignee or assignees duly designated in writing by the
initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being
assigned and transferred by the initial registered owner, in any denomination or denominations in any integral
multiple of $5,000 (subject to the requirement hereinafter stated that each substitute bond issued in exchange for any
portion of this Bond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying
Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. If
this Bond or any portion hereof is assigned and transferred or converted each bond issued in exchange for any
portion hereof shall have a single stated principal maturity date corresponding to the due date of the installment of
principal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at
the rate applicable to and borne by such installment of principal or portion thereof. Such bonds, respectively, shall
be subject to redemption prior to maturity on the same dates and for the same prices as the corresponding installment
of principal of this Bond or portion hereof for which they are being exchanged. No such bond shall be payable in
installments, but shall have only one stated principal maturity date. AS PROVIDED IN THE BOND ORDINANCE,
THIS BOND IN ITS PRESENT FORM MAY BE ASSIGNED AND TRANSFERRED OR CONVERTED ONCE
ONLY, and to one or more assignees, but the bonds issued and delivered in exchange for this Bond or any portion
hereof may be assigned and transferred, and converted, subsequently, as provided in the Bond Ordinance. The
Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and
exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall
pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall
not be required to make any such assignment, conversion, or exchange (i) during the period commencing with the
close of business on any Record Date and ending with the opening of business on the next following principal or
interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior
to maturity, within 45 days prior to its prepayment or redemption date.
IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the Issuer, resigns, or otherwise
ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and
legally qualified substitute therefore, and promptly will cause written notice thereof to be mailed to the registered
owner of this Bond.
IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly voted,
authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist,
and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed,
and been done in accordance with law; that this Bond is a general obligation of the Issuer, issued on the full faith and
credit thereof; and that ad valorem taxes sufficient to provide for the payment of the interest on and principal of this
Bond, as such interest and principal come due, have been levied and ordered to he levied against all taxable property
in the Issuer, and have been pledged for such payment, within the limit prescribed by law.
BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the
terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that
the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing
body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a
contract between the registered owner hereof and the Issuer.
tN WITNESS WHEREOF, the Issuer has caused this Bond to be signed w
Mayor of the Issuer and countersigned with the manual signature of the Town Sec
official 1 of the Issuer. be duly impressed on this Bond, and has caused th'a nd
Town Secretary/ or
L
(TOWN SEAL)
AZ
n
6
manual signature of the
the Issuer,aused the
dated nuary�, 2002.
FORM OF REGISTRATION CERTIFICATE OF THE
COMPTROLLER OF PUBLIC ACCOUNTS:
COMPTROLLERS REGISTRATION CERTfFICATE:
REGISTER NO.
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 that this Bond has been registered by the Comptroller of Public Accounts of the
State of Texas.
Witness my signature and seal this
(COMPTROLLER'S SEAL)".
Comptroller of Public Accounts of the State of Texas
SECTION 3.
CUMULATIVE
This ordinance shall be cumulative of all provisions of the Ordinances of the Town, except when the
provisions of this Ordinance are in direct conflict with the provisions of such Ordinances, in which event the
conflicting provisions of such Ordinances are hereby repealed. Any complaint, action, claim or lawsuit which has
been initiated or has arisen under or pursuant to any conflicting Ordinance on the date of adoption of this Ordinance
shall continue to be governed by the provisions of such Ordinance and for that purpose the Ordinance shall remain in
full force and effect.
SECTION 4.
SAVINGS
All rights and remedies of the Town of Trophy Club, Texas, are expressly saved as to any and all violations
of the provisions of any other Ordinance affecting the issuance of bonds which have secured at the time of the
effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal,
whether pending in court or not, under such Ordinances same shall not be affected by this Ordinance but may be
prosecuted until final disposition by the courts.
SECTION 5.
SEVERABILITY
If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof
to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding
shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares it
would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall
remain in full force and effect.
SECTION 6.
PUBLICATION
The Town Secretary of the Town of Trophy Club is hereby directed to publish, the Caption and Effective
Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code.
SECTION 7.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance by
copying the exact Caption and Effective Date in the minutes of the Town Council and by filing this Ordinance in the
ordinance records of the Town.
SECTION S.
EFFECTIVE DATE
This Ordinance shall become effective from and after its date of adoption and publication as provided by
law, and it is so ordained.
PASSED AND APPROVED by the T
January, 2002.
ATTES
Town Secretary
Town of Trophy Club, Texas
[SEAL] +�O� TRoiO�.�-
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CD
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APPROVED AS TO
Town Attorney
Town of Trophy Club, Texas
EFFECTNE: January 16, 2002
:his 7°i day of