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05-19-1950 Special Meeting2,2 2 A special meeting of the Mayor and Council was held at the City Hall May 19,.19509 7:45 P. M. Mayor J. M. Gibson presided over the meet- ing. Councilmen; P. P. Shaw, H. L. McEntyre, Stanley McCalla, C. W. Jones and Howard Hames were present. Lex Jelley, representating John- son, Lane & Space and Cit-Y Attorney, Harold Willingham present also. Plans were submitted for the building of an apartment house to be 10- cated on Spring street and jointly owned by John and Emaline Collier. Motion made by H. L. McEntyre and seconded by P. P. Shaw to approve plan. Voted unanimous. Plans to be referred to building commission. Motion made by P. P. Shaw and seconded by Howard Hames to give Beer Companies doing business in the City of Smyrna a 5% deduction of Beer Tax collected, this to be effective June 1, 1950. Voted unanimous. Motion made by H. L. McEntyre and seconded by Stanley,McCalla to give all City employees who have been employed one year with the City a weeks vacation with pay. Voted unanimous. The following Ordinance, motion made by P. P. Shaw and seconded by C. W. Jones was unanimously adopted: 14 AN ORDINANCE PROVIDING FOR THE CALL AND REDEMPTION OF �o OUTSTANDING WATER AND,SEWERAGE REVENUE CERTIFICATES OF THE CITY OF,SMYRNA, DATED JULY 1,,1946; TO FINANCE IN WHOLE OR IN PART THE, ACQUISITION{OF`SAID OUTSTANDING CERTIFICATES AND TO AUTHORIZE THE :ISSUANCE-,OF,WATER,AND SEWERAGE REVENUE ANTICIPATION CERTIFICATES OF-SAIDCITY�FOR'THE ACQUISITION OF SAID OUTSTANDING CERTIFICATES AND FOR THE CONSTRUCTION, IMPROVING, AND EXTENDING THE WATER AND SEWERAGE FACILITIES OF SAID CITY; TO PROVIDE RATES FOR THE SERVICES i AND FACILITIES'TO BE FURNISHED BY THE SYSTEM AND THE CREATION OF CERTAIN FUNDS TO PAY THE PRINCIPAL AND INTEREST 'OF SAID CERTIFI- CATES; TO PROVIDEEREMEDIES OF THE HOLDERS OF SUCH CERTIFICATES, AND FOR OTHER PURPOSES. Jt WHEREAS, under and -by virtue of the authority of the � i Revenue Certificate,Law (Ga. Laws 1937, page 761,. as amended, (i Ga. Laws 1939, page 362), City of Smyrna, Georgia, (hereinafter 1b sometimes referred to as the "City"), has heretofore issued $215,000 principal amount of City of Smyrna Water and Sewerage Revenue Anticipation Certificates, all dated as of July 1, 1946, bearing interest at the rate of three per centum (3%) per annum, payable semi-annually on the 1st days of January and July in each year and the principal maturing in annual installments on January 1st, as follows, I t and $5,000 in each of the years 1948 to 1952,-inclusive, $6,000 in each of the years 1953 to 1957, inclusive, 17,000 in each of.the years 1958 to 1962,,inclusive, 8,000 in each of the years 1963 to 1967, inclusive, 9,000 in each of the years 1968 to 1972, inclusive, $10,000 in each of theryears 1973 to 1976, inclusive, WHEREAS, under and by virtue of the authority of the Revenue Certificate Law, the City is authorized -to acquire addi- tional water and sewerage facilities b 1 tion g y the addition:;thereto of #� improvements and extensions to its present system and to combine its water system and -sewerage system as one -revenue producing undertaking and to.maintain said combined system as,added to, ex- tended and improved -for its own use and for the use of the public f� a. t~ r t 4i a 6 .. . 2• e and is further authorized to prescribe, revise and collect rates, t. fees, tolls and charges for the services and facilities furnished by its water and sewerage system'as now existing and as hereafter added to and improved, and in anticipation of the collection of anticipation certifi- revenues from said system to issue revenue antieip t cater to finance in whole or in part the cost of.such addition,' alterations, extensions, improvements and betterments to the exist- ing system; and I WHEREAS, it wi11 be to the advantage of the.City-to ac- quire all of its outstanding Water and Sewerage Revenue Certifi- cates, dated July.l, 1946, in that the right will be given to the 1 City to provide for the,issuance of additional certificates in the , future ranking on a parity with the certificates now proposed to be issued; and WHEREAS, the existing system needs additional waterand sewerage facilities in order to protect the health and weifare of i the residents of the City and environs and a thorough investigation has been made and it has been determined that the. City should I issue at this time Three Hundred Fifty Thousand.Dollars ($350,Ob0) principal amount of certificates; and WHEREAS, it has been proven that as additions, extensions and improvements are made to the existing facilities, additional .demands will be made upon the City°for further extensions and im- provements and,that provision.should be made to finance such f improvements by the issuance bf revenue certificates having equal rank and dignity to the lien on the revenues to pay the certifi- '' cates now proposed to be issued and that provision should be made for the issuance of additional certificates not exceeding one hundred'fift thousand dollars ($150,000) under the terms and Y ' conditions as (hereinafter'more- fully`•se't rforth; and', WHEREAS, the,City has.received an offer from Johnson, 1 Lane, Space &'Co. and Associates, of Atlanta, Georg a,"to purchase at par, plus a.premiumjof $6,500 and accrued interest to date of !' I , i II „ delivery Water and Sewerage Revenue Certificates in the amount of t Three Hundred Fifty Thousand Dollars ($350,000) hereinafter authorized ?or thejpurpose`ofacquiring $195,000 principal amount -outstanding certificates, dated July 1, 1946 and paying the cost of additions, extensions and'improvements to its existing water t and sewerage system; and. WHEREAS, under the terms of the ordinance authorizing the issuance of the two hundred fifteen thousand dollars '($215,000) principal amount of certificates hereinabove described, adopted April 15,_19460 it was provided that the said certificates might be redeemed prior to their respective maturities at the option° of the City on the first day of January in any year riot -earlier than January 1, 1950 from any monies which might be made available for such purpose; and WHEREAS, there is now or will be by the time of the -actual delivery of the certificates hereinafter authorized sufficient monies'in the Sinking Fund to pay the $3,000 interest due on January 11, 1951 on the certificates outstanding, the $5,000 prin'- cipal amount of certificates due January 1, 1951 and the $9;750 required call premium; and WHEREAS, from the proceeds of the sale of the certifi- cates hereafter authorized, the City will deposit with the Paying Agent one hundred ninety-five thousand dollars ($195,000) for the purpose of paying the principal on said certificates maturing after January 1, 1951; and WHEREAS, during the early part of the year 1946 the F Mayor and Council of the City of Smyrna made investigation as to the value of the water and sewerage system as then existent, at which time it was determined that the value of such system was forty thousand,dollars ($4o,000) and since that time it has ex- pended in improving and adding to:said system the approximate sum of $215,000 (proceeds from the sale of certificates dated July 1, 1946), which makes the total gross value of the system } 3 � 4 P as now existent stand at two'hundred fifty-five thousand dollars ($255,000), but f6r the purpose of complying with subsection (d) of section 3 of the Revenue Certificate Law, as amended,(Ga. Laws a 1939, page 362; et seq.), there should be deducted from the value of the system the principal amount of certificates dated July 1, 1946 now outstanding or for which no provision for payment has been made, which amount aggregates the sum�'of one hundred ninety- five thousand dollars ($195,000), leaving anet value of said system of sixty thousand dollars,($60,000). NOW, THEREFORE, BE IT.,ORDAINED by the Mayor and Council of the City of Smyrna and it is hereby..ordained by authority of same -that for the purpose of.complying with subsection (d) of section-3 of the Revenue Certificate Law, as amended (Ga.•Laws 1939, page'362, et seq.) and in order to formulate the basis on which the City can pledge a proportion of the revenues,of said I� system, the value of the City's existing water and sewerage system is hereby determined at sixty thousand dollars ($60,000). ,. I BE IT�FURTHER ORDAINED by'the,authority aforesaid that the one hundred ninety-five thousand dollars ($195,000) principal R amount of City of Smyrna Water and Sewerage Revenue Anticipation Certificates, datedJuly 1, 1946, be called, for redemption and { thenedessary amount-to'pay the principal, required premium and 8 the charges of the Paying Agent,be deposited with the Paying Agent, The -Fulton National Bank of.Atlanta; Atlanta, Georgia,, for that �I purpose, such deposit to be made prior to or simultaneously with the delivery -and receipt of the proceeds of theWater and Sewerage Revenue Certificates herein authorized tobe'issued; BE IT FURTHER ORDAINED by the authority aforesaid that the notice of call and redemption be substantially in the follow- ing form and that said notice shall be filed with The Fulton National Bank of Atlanta anda similar signed notice or notices shall be given a.11registered owners of any certificates as'shown I, on the books of the Treasurer of the City of Smyrna and that said notice be published in "The Atlanta Constitution", a newspaper of 1 general circulation published in the.City of Atlanta, Georgia. jl IC I ,I a NOTICE OF -REDEMPTION CITY OF SMYRNA WATER AND SEWERAGE ANTICIPATION CERTIFICATES NOTICE IS'. HEREBY GIVEN' to the holders of the following describedcertificates of the City of Smyrna, Georgia, that said m 1 certificates have been called for redemption on January 1 ,` 951 said certificates being in the aggregate principal amount of $195,000, known as City of Smyrna Water' and Sewerage Revenue Anticipation Certificates, dated July 1, 1946, in denominations of $1,000 each, due serially on the 1st day of January, as follows: 5,000 in the year 1952, 6,000 in each of the years 1953 to 1957, inclusive, 7,000 in each of the years 1958 to 1962, inclusive, 8,000 in each of the years 1963 to 1967, inclusive, + 9,000 in each of the years 1968 to 1972, inclusive, $10,000 in each of the years 1973 to 1976, inclusive, and numbered 2i to 215, inclusive. Funds for the payment of said certificates and for all l inte'rest due to January 1, 1951, and for the required premiums l will be available at The Fulton National Bank of Atlanta, Atlanta, ,Georgia, and said above described certificates and all unmatured coupons thereto appertaining should be presented to said bank. Said certificates will.cease-to bear interest on and after January 1, 1951. This notice,is given under and pursuant to`ordinance of xt,he, Mayon., and Council y,of the City 'of Smyrna, adopted the day of 1950. . i Mayor Clerk * City of Smyrna, Georgia follows: BE IT FURTHER ORDAINED by the authority aforesaid, as .ARTICLE I , AUTHORIZATION, FORMi AND REGISTRATION OF CERTIFICATES Sect on'l. Under authority of the Revenue.Certificate Law, for_the purpose of paying the cost in whole or in part of improving, adding to and.'extending the water and sewerage system r f - 'A e . of the City of Smyrna, and for the purpose'of acquiring by -redemp- tion- the outstanding certificates of said City, dated July l,t. r r 1946;,�in the -principal) amount of. One Hundred Ninety -Five Thousand Dollars`($19 5,000), and paying the redempt.ion'premiums, which imust be paid thereon in order to call for redemption such of said certificates -as do not mature on or prior to January 1, 1951, i1there be and is hereby authorized to be issued Revenue Anticipa- tion Certificates of the City of Smyrna in the principal amount of Five Hundred Thousand Dollars`($500,000). The principal and interest of all certificates shall be payable solely from a special fund hereinafter created and designated "City of Smyrna Water and Sewerage Sinking Fund", and all of the covenants, agreements and provisions of this ordinance shall be for the equal and proportionate benefit and security of all holders of the certificates and -interest coupons issued hereunder'. To pay the principal of andintereston said certificates there be and is hereby pledged seventy-five per centum (75%) of the gross revenues of said system which said pledge and allocation is more fully hereinafter provided for, of which said authorized amount of." certificates the principal'*, amount of Three Hundred Fifty Thousand Dollars ($350,000) shall now be issued, and4the remaining One Hundred Fifty Thousand Dollars, ($150,000) principal amount of certificates, all or any part, may be issued and sold only on the following conditions: (a) An independent and recognized firm of Certified Public Accountants shall certify in trip- licate to the governing body of the City that seventy- five per centum (7 %) of the gross -revenues of the water 1-1 0 i and sewerage system for a full twelve consecutive ' months period immediately preceding the date the proceedings are passed authorizing such issuance of certificates total an amount equal to not less than 4 ff one and one-half times the largest combined principal and interest requirements for any succeeding full twelve months period on the certificates then out- standing and on the additional certificates proposed to be issued. Ykt.-a (b ) One ' of the certificates of the said Certified -Public Accountants shall'be furnished to the original r � {, purchasers ,of w,the certificates of this series. (c) The governing body of the City shall pass -.prope'r_ proceedings ;reciting ,that all,, of ;the above re- ��x a �, quirements have been met and authorize the issuance of all or a part of said certificates.. which proceedings shall, among others, provide'for the date and rate or rates of interest the certificates are to bear, maturity dates and redemption provisions, and the interest on said certificates shall be payable semi- annually and the certificates shall mature serially in annual installments (but not necessarily equal in- stallments') within thirty years from July 1, 1950, provided if any such certificates so issued shall mature after"July 1, 1976, necessary steps will have been taken by the City to- assure a sufficient source of water supply up to July 1, 1980, and provided further that any such proceeding or proceedings shall restate or,reaffirm by reference all the.terms, condi- tions and provisions of this ordinance`. (d) Such additional certificates and all proceedings relative.thereto and the security therefor shall be validated as prescribed by law. T (e) An opinion of.counsel for the City stating that the issuance of the additional certificates has been duly authorized. The principal 'and interest of all of ' the certificates of this issue or of any subsequent issue or issues when properly authorized as hereinbefore in this`section provided for, shall be 'payable solely from the revenues as hereinafter provided, and from !the water and sewerage system sinking fund hereinafter created, and I fall the covenants, agreements and provisions of this ordinance _ shall be for the equal and proportionate benefit and security of all the holders of the certificates and interest coupons without preference, prior;itybor 'd-istinction as to .lien or otherwise of any one .certificate over, any other certifricate . Section 2. The Three Hundred Fifty Thousand Dollars, rP " j(r$350, 00O of5 _certificates Tnow Ito; be issued shall be designated t"CITY OF SMYRNA WATER AND SEWERAGE REVENUE ANTICIPATION CERTIFICATES SERIES 1950"; in denominations of $1,000 each, numbered�l to 350, ,inclusive, to bear interest at -the rate of three per centum (3%) per annum, payable semi-annually, on the first days of January and I Fjuly in each year, and the principal shall mature in annual install- ments on the first day of January, r 10,000 in each of the years 1952 to 1955, inclusive, 11,000 in each of the years 1956,to 1958, inclusive, 12,000 in the years 1959 and 1960, 13,000 in each of the years 1961 to*1963, inclusive, 14,000 in the years 1564 and 1965, each of the ears 1 66 to 1�68 inclusive � 15,00o in y 9 9 16,000 in the years 1969 and 1970, 17,000 in the years 197,1 and 1972, 18,000 in the years 1973 and 1974, 19,000 in the year 1975, 20,000'in the year 1976. Section 3. The certificates shall be signed by the Mayor and attested by the Clerk of the City of Smyrna and the corporate a seal of the City shall be affixed. The coupons to be attached to the certificates shall be executed with the facsimile signatures of said officers. In case any officer whose signature shall appear 2' I-3 I � I R on the certificates or coupons shall cease to be such officer before .delivery of such certificates, such signatures shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The certificates and in- terest coupons to be'attached thereto shall be substantially in the, following form, to -wit: 7 I I I t. k r I I� I-4 I a y } F ria UNITED STATESOF, AMERICA d "� «_ STATE OF GEORGIA CITY: OF SMYRNA WATER AND SEWERAGE REVENUE ANTICIPATION CERTIFICATE 4. SERIES 1950 No. $1,000.00 FOR VALUE RECEIVED, the. City of Smyrna, a municipal ,corporation of the County of Cobb, State of Georgia, hereby promises to pay, solely from the special fund provided therefor, as herein- after set forth, to bearer, or'if registered as herein provided, to the registered owner hereof, on..the-lst day of January, 19 , the . principal sum of ONE THOUSAND DOLLARS and to pay solely from said special fund interest thereon at the rate ofthree per centum (3%) per annum, payable semi-annually on -the 1st days of January and July in each year, until payment of the principal amount hereof, upon the presentation and surrender of the annexed interest coupons as they respectively become due. Both the principal of and interest on this certificate are payable in lawful money of the United States of America at,the office of i The Fulton National Bank of Atlanta, Atlanta, Georgia. This certificate is one of a series of like tenor, except `as to numbers and dates of maturity, aggregating the sum,of $350000, issued for the purpose of improving, repairing,'inaking additions,.extens'ions, alterations and improvements to its water .and sewerage system and acquiring the outstanding Revenue Certifi- cates of the City dated July 1, 1946, and is issued under authority' of the Revenue Certificate Law (Ga. Laws 1937, 761, as amended, Ga',. Laws 1939, 362) of the State of Georgia, and the Charter of :the City of Smyrna, and duly authorized by ordinance of the Mayor and Council of the,$City of Smyrna, passed on the day of 1950. -In addition.to the aggregate principal amount of certificates t of thisseries, the City" of Smyrna may, under certain 1 j Sc r•. ! ?� •,,, elf'- ;` I-5 0 sa , I ° I�conditions as provided in said ordinance, issue not exceeding I 1$150,000 principal'amount`of Water and Sewerage Revenue.Anticipa- �tion Certificates, and if issued in whole or in part,+will rank on 1`a parity with the certificates of this series. Reference to said ilordinance is hereby made for a description of the fund charged 1with and pledged to the payment of the principal of and ,interest on ,,the certificates of this or.any other series, the nature and extent tof the security and a;statement of rights, duties and obligations r iof the City, and the rights of the holders of the certificates, and the terms and conditions under which all or a part of the total- ($500,000) authorized amount of.certificates may be issued, to all the provisions of which the holder hereof, -by the -acceptance of lthis certificate, assents. 1 The ordinance provides, among other provisions, for pre- scribing and revising rates and for collecting fees and charges for the services, facilities and commodities furnished by-the existent water and sewerage system, and all further additions and improvements thereto, sufficient to provide funds to pay the cost of maintaining,"repairing and operating such system, and to pay the certificates and the interest thereon, `and to provide for the i payirientiinto-a� special"f`und., to be*des'ignated `Water and Sewerage System; Sink.irig. Fund", of:,a= percentage of the revenues of the system sufficient to pay the principal of and,interest.on the certificates r ras the same°becomeldule and payable in�ihe current fiscal year, ;and to create and maintain a reserve to pay the principal of and interest on the certificates, as,same mature in the'next succeeding fiscal year. This certificate shall not be -deemed to,constitute a debt °of' the City of Smyrna, or a pledge of the faith and credit -of said City; nor shall the. City be subject to any pecuniaryrliability thereon. This.certificate shall not be payable from; or charged 'upon, any funds other than the revenue pledged to the payment 1-6 thereof, and is payable solely from the fund provided therefor from a percentage of the earnings of the water and sewerage system of the City of Smyrna, including all future additions thereto. No holder of this certificate shall'ever have the right to compel the exercise of the taxing power of the City to pay the same, or the interest thereon, or to enforce payment thereof against any property of the City, nor shall this certificate, or --any interest coupon, constitute a charge,lien or encumbrance, legal or equit- able, upon any property of the City. The .certificates of said issue may be redeemed prior to their respedtive-maturities at the'opiion of the City either in part, on the 1st day of January in any year, not earlier than January 1, 1955, from monies in Fthe Waterrand Sewerage System Sink- ing Fund not required for-paying1the 'principal and -'interest coming due upon such certificates in the then current fiscal year and in x the next.succeeding fiscal year, or in whole, on the 1st day of January, not earlier than January 1, 1955, from'any monies which may be made available for.such purpose. Such redemption may be made upon at least thirty days'' prior notice by publication and otherwise as'provided in the ordinance, at the principal amount thereof and accrued interest, together with a.premium of five per centum of such principal amount if redeemed on or prior to January 1, 196� four per centum ()+%) if redeemed thereafter and on or prior to January,l, 1964, three per centum (3%) if redeemed there] after and on or prior' to January 1, 1969, two per centum (2%) if re- deemed thereafter'and on or prior to January 1, 1974, and one°per centum (1%) if redeemed thereafter before maturity. If the cer- tificates are called in part, then any certificate so called for redemption shall be in the inverse order of their numbering. This certificate shall be fully negotiable for'all pur- poses as declared by the Revenue Certificate Law and is'issued-with 1j the intent that .the laws of the State of Georgia shall govern its i i. construction. { x 1-7 11 I� ., jt i R { . ; In case of.default, the holder'of this certificate shall be entitled to the remedies provided by the ordinance and the Revenue Certificate Law'of 1937, and any amendments thereto. This certificate may be registered as to the payment of principal and interest on,the books of the Treasurer of the City of Smyrna, and thereafter the principal and interest thereof shall Ve payable to the registered owner, and no transfer thereafter shall be valid unless made on the books of the Treasurer, and an endorsement of such registration upon the back of this certificate unless the last registration shall have been made to bearer. This certificate shall continue subjectrto successive registration and transfer to bearer at the option of the owner. It is hereby recited and certified that all acts, condi- tions and things required to be done precedent to and in the issu- ance of this Water and Sewerage Revenue Anticipation Certificate have been done, have happened and been performed in due and legal form as required by law, and that provision has been made for the allocation of the percentage of the anticipated charges„and fees from the water and -sewerage service necessary and sufficient in amount to pay the principal and interest of said certificates as they mature in the current year, and in the next succeeding year, and that said funds are irrevocably allocated and pledged for the payment of said certificates and interest thereon. IN WITNESS WHEREOF the City of Smyrna has caused this certificate to be signed by its Mayor, and its corporate seal to be hereunto affixed, and attested by its Clerk, and has caused the annexed interest coupons to be authenticated with the facsimile` signatures of its said officers as of the lst day of July, 1950. CITY OF SMYRNA ,4+ H A. Mayor. }. Attest: Clerk t F r y C!=6rU-P-0-N , No. On the lst day of.— _ , 19 , unlessthe herein- after mentioned certificate -shall have been c&ll.6d for previous t redemption and provision made for the payment thereof, the City of Smyrna, Cobb County, Georgia, promises to pay -to bearer at The Ful- ton National Bank of Atlanta, Atlanta, Georgia, Fifteen & no/100 Dollars in lawful money of the United States of'America, solely from the special fund referred to herein, and for the semi-annual interest then due upon its Water and Sewerage Revenue Ahticipation Certifi= date,, Series 1950, dated July 1, 1950, numbered Clerk Mayor VALIDATION CERTIFICATE l STATE OF GEORGIA ) COUNTY.OF COBB ) The undersigned Clerk of the Superior Court of Cobb County, State of Georgia, keeper of the records and seal thereof i DOES HEREBY CERTIFY that this,certificate was validated and con - 'firmed by judgment of the Superior Court of Cobb County, Georgia, on the day of , 1950, and that no appeal has been prosecuted therefrom. IN WITNESS �trHEREOF, I have hereunto set my hand and affixed the seal of the Superior Court of Cobb,County, Georgia, on this the day of , 1950• I I� (S E A L) f• t C f Clerk, Superior Court, Cobt County, Georgia i t CERTIFICATE OF REGISTRATION At the request of the holder of the within certificate for its conversion into a registered certificate, I have this day. cut off all coupons attached to said certificate, and the within j certificate .is hereby converted,into a registered certificate, i with the principal theredf and interest thereon payable to the registered holder. Hereafter no transfer -thereof while registered shall be,,effectual unless made on the.books of the Treasurer of the City of Smyrna by the registered holder, or.his attorney, and 'noted thereon. But this certificate may be discharged from registration by being so transferred to bearer in which case ' the Treasure% will r`eattach heretd'all coupons then unmatured, I which were detached therefrom. ¢ • y x Treasurer;, ,City of Smyrna DATE OF REGISTRATION IN WHOSE NAME REGISTERED TREASURER 1-10 Y { 1 _l i t ,.t t ' 1p e a e r '1 I Section 4. Title to the certificates, and to the l interest coupons, thereto appertaining, shall pass by delivery in I the same manner as a negotiable instrument payable to bearer, un- less such certificate is registered, in the manner hereinafter f provided. The certificates may be registered as to the payment of "principal and interest on the books of the Treasurer of the i City of Smyrna kept'for that purpose, and thereafter the principal and interest thereof shall be payable to the registered owner, and no transfer thereafter shall be valid unless made on the books of the Treasurer of the City of Smyrna, and an endorsement of such, registration shall have been made to bearer. The certificate shall continue subject to successive registration and transfer to bearer at the option of the owner. At the request of the holder of any certificate for its conversion.into a registered certificate the Treasurer will cut off all coupons attached to the certificates sought to be registered, and will make proper notation of registra. tion, and will pay all interest as it accrues on said registered certificates to the registered holder thereof. The certificates may be discharged from registration by being transferred to bearer in which case the Treasurer will reattach to the certificates all coupons then unmatured which may have been detached therefrom. Section 5. The lien on the,revenues of the water and I sewerage system created by virtue of this ordinance and the issu- ance of certificates hereunder, or under authority of subsequent I proceedings as provided by Section 1 of this .Article, shall be pri j and superior to any other certificate or obligation of any kind or character. Y 4 1 7 - f i + 4 1-11 . ARTICLE II REDEMPTION OF CERTIFICATES BEFORE MATURITY ` Section 1. The certificates secured hereby may be `redeemed at the option of the City in part on the 1st day -of January I in any year not earlier than January 1, 1955, from monies in the Sinking Fund not required for paying the principal and interest jcoming due upon the certificates in the then current fiscal year and in the next succeeding fiscal year, or in -whole. on the lst day of January -in any year not earlier than January 1; 1955, from any monies in the Sinking Funa which'may be made,available for such purpose and deposited with the paying agent on or before the date fixed for redemption. At least thirty (30) days' notice before [any date upon which any such redemption is to'be made, a notice of intention so to redeem signed by the Mayor and attested by the Clerk of the City of Smyrna designating the redemption date and the -certificates to be redeemed shall be published in'a newspaper of general circulation in,he"City of -Atlanta, Georgia, and shall .be filed attthe.placefat which°the principal -and interest of the certifi-cates' shall be payable and"�shall" be mailed, postage prepaid, to all registered owners of certificates to be,redeemed whose ad- dresses shall appear upon -the books of registration hereinabove �providedf6r; but failure so to mail any such notice shall not iaffect the validity of the proceedings for such redemption. The redemption of certificates under this Article shall be made by the (payment of the principal amount of the certificates to be redeemed 'and accrued'interest to date of redemption, together with a premium yof five per centum (5%) of such principal amount if redeemed on or prior to January"1, 1959, four per centum (4%) if redeemed there- after and on or prior to January 1., 1964, three per centum (3%) if redeemed thereafter and on or prior to January-1, 1969, two per centum (2%) 'if redeemed.'thereafter`and on or prior to January 1, 1974, and one per centum (l%) if'redeemed thereafter before maturity. :If-the-certificates,.are redeemed. in.-Ipart',','puch redemptioh as to said :certifAat6s shall be"in 'the inverse ord6r.of the numbers of the (certificates and maturities, beginning with certificate No. 350 Viand working backwards. Section 2. Nothing herein contained shall be construed ,to limit the right `of the City to purchase with the excess monies, as hereinabove defined," in the Sinking Fund and for sinking fund purposes, certift.cates, in'the open market at A price less than the callable pi?ice hereinabove set forth. Any such'certificate,so pur- chased cannot -be reissued and shall be disposed of as -is provided ti in Section 4 of this Article.. Section 3. Notice having been.given in the manner and -under the conditions hereinabove provided, the certificates so designated for redemption shall on the redemption date designated in such notice, bb.come and be due and payable at the r"edemption price hereinabove specified, and from and after the date of redemp- tion so designated, unless default shall be made in the payment of certificates called for redemption', interest on the certificates so designated for redemption shall cease to accrue and interest coupons maturing after the redemption shall become void. Section 4. Certificates redeemed and unmatured coup,onb appurtenant thereto shall be cancelled or otherwise mutilated And . j'destroyed, and record of such mutilation shall be made and pre- served in the records of, the City of Srflyrna. 11-2 F1 u ARTICLE III CUSTODY AND APPLICATION OF PROCEEDS OF CERTIFICATES Section 1. A special fund is hereby created and desig- nated "Water and Sewerage Construction Fund", sometimes herein- after referred to as "Construction Furid", for.the credit of which there shall be de ositedlwitph the-Xity Depository the proceeds of all of the certificates which are issued under.the provisions of this ordinance, incl.udii g accruede inter.e`st,, ,or "any other funds acquired by gift, donation, grant or otherwise, except the sum of One Hundred Ninety-five Thousand Dollars ($195,000) to be paid directly from the proceeds of the sale of said certificates to The Fulton National .Bank as Paying Agent for the City's Water and Sewerage Revenue Certificates, dated July 1, 1946. The monies in the Construction Fund shall be held by the Depository in trust and applied to the payment of the cost of acquiring,' constructing, reconstructing,' improving, bettering and extending the present water and sewerage system -of -the City of Smyrna, in accordance with'and subject to the provisions and restrictions set forth in this Article andthe City covenants that it will not cause or w permit to be paid from the Construction Fund any sums except in accordance with provisions and restrictions', provided, however., any monies in said Construction Fund which are not presently or immediately needed for a period of several months during the I course of construction, may upon the proper resolution adopted i by the Mayor and.Council, be invested in United States Government Short Term Bonds or Certificates and to.be so held until needed for the purpose of paying for construction. All monies in the Construction Fund and securities held for said Fund shall be sub- ject to a lien and charge in favor of the holders of the certifi- cates issued under the provisions of Article I of this resolution, and outstanding at any time, and shall be held for the future security of such holders until paid out, as hereinafter provided. c 1 III-1 r I ' 1 W. e t The Bank of Smyrna, Smyrna, deorgia is hereby designated the Depository for the Construction Fund, , and any securities purchased out of said fund. Section 2. For the pu'rpose.of this Article the cost of constructing, reconstructing, improving, bettering, adding to and extending the waver and sewerage system shall include the purchase or condemnation of lands, easements, rights of way, drilling bf� wells, laying of water and sewer mains and: conduits, purification plants, storage tanks and,reservoirs, installation of fire hy- drants, sewer disposal facilities, and any and all necessary ..material for the construction of'a modern and efficient water and sewerage system, without intending thereby to limit or restrict or to extend any proper definition of such cost, as contained in the Revenue Certificate Law, as amended, or usual and incident to the modernization and operation of an efficient water Arid sewerage system, which in addition shall include: (a) Interest accruing upon the certificates prior � M to the commencement of" -and during the construction and` " F reconstruction of the water and sewerage system, as added to•and improved and for six months after the date of the completion of the improvements to said - system and.the reasonable fees of°paying agents for r E` the payment of such interest;.,, (b) The -cost of indemnity and fidelity bonds either,'to secure, deposits in - the Construction Fund or. .to insure the faithful completion of any."construction contract pertaining to said improvement`s to said system; (c) Any taxes or any, charges lawfully levied or assessed against the undertaking; (d) Fees and expenses of engineers for engineering studies, surveys and estimates, and the preparation, of plans and supervising of construction; r (e) .Legal expense's and fees,, cost of audits and of preparing and issuing the certificates and all other items of expense not elsewhere in this section j specified incident to the construction, adding to 'I and improvement ,of the water and sewerage system; (Ff) Payments made for labors' contractors, builders and materialmen in connection with the construction and payment for machiriery'and�equipment-and for the restora- # tiori* of property -damaged or:destroyed- in¢connection i `with such construction and the repayment ofl,any loan, I or advance made the City to accomplish any of the l ' foregoing purposes. Section 3. All payments from the Construction Fund shall be made upon checks signed by the Clerk and Mayor or Mayor Pro,Tem of the City of Smyrna, but before they shall sign any such checks there shall be filed with the Depository.: (a) A requisition for such payment stating each Amount' to be paid and the name of the person, firm or corporation to whom payment thereof is due; (the above mentioned check may be considered as the = requisition required hereby); and (b) A .certificate attached to the requisition and certifying: 1. That an obligation in the stated, amount -has been incurred by the City, and that the same is a proper charge against the Construction Fund and has not been paid, specifying the purpose and circumstances of such obligation in reasonable detail, and to whom such obligation is owed, accompanied by the bill or statement of account for such obligation, or a copy thereof; and III-3 2. That they have no notice of any vendor's, mechanic's, or other liens or rights to liens, chattel mortgages, or`conditional sales con- tracts which should be satisfied or discharged before such payment is made; and 3. That such requisition contains no item representing payment on account of any retained percentages which the City is, at the date of such -certificates, entitled to retain. (c), No requisition for payment shall be made until the City has been furnished with proper certificate of the engineers that insofar as such obligation was in- curred for work, material, supplies or equipment in connection with the undertaking, such work was actually performed, or such material, supplies or equipment was actually installed in or about the construction, or delivered at the site of the work for that purpose. Section 4. No payment shall be made from the Construction Fund which will reduce the amount in the Construction�Fund below an amount sufficient to pay interest on the certificate's then outstanding that may become due and payable up to and including the time the water and sewerage system,`as added to and improved, will be completed as#estimated by the 'engineers, and for six months thereafter, provided, however, should there be in the Sinking Fund, hereinafter'provided for, monies for -the payment of such interest, then' this section becomes Inapplicable: - Section 5. All requisitions.and ;certificates as required by ,this Article,, shall be -retained- by' he City; subject at all times to inspection of any officer of the City, and the engineers; and the duly authorized agent or representative of the firm pur- chasing the certificates. Section 6. When the water and sewerage system, as added to and improved, shall have been completed said fact shall be j evidenced by a certificate from the•engineers, stating the'date of completion, and should there then be any balance:in th'e z I Construction Fund, such balance shall be paid into the Sinking Fund hereinafter provided for. r* y 4 1 • r4 ' ♦d • t • . I' A • y '4 r i K ' I i l x r �a ARTICLE HIV , REVENUES AND FUNDS Section, `The City- covenants` that 'it is now operating, and -shall thereafter operate,, its water andseweragesystem on a fiscal yearly basis, to -wit: January lst through December 31st, but should.it at some future date be deemed desirable to change its. fiscal year., `then same can be done by proper ordinance so authoriz- ing... Section 2. 'Beginning as of the. date' of issuance and r � delivery of the certificates herein authorized, and at all t`imeb thereafter, so long as.the,certificates are outstanding.and unpaid, issued pursuant to this ordinance,' all revenues arising from the v r. ..operation of the water and sewerage system of•the City of Smyrna,, as then improved and extended,•and thereafter improved, added to and extended, shall be.collected by the City, or by its agents or employees, and deposited promptly with the Depository,* to the, credit of a special fund which is hereby created and designated as "Water and Sewerage Revenue•Fund" (hereinafter.sometimes called ti the "Revenue Fund") and shall be disposed of as hereinafter provided.' Section 3, The existing water and sewerage system now owned'by the City of Smyrna having•been determined as having a value of $60,000 and the value of the -said system which the City is to acquire by adding to, improving and making betterments thereto, .being in the sum of $410,000 less $195,000 to be used to acquire outstanding certificates dated July 1, 1946, the Mayor and Council, of the City -of Smyrna, under and by'virtue of the authority set forth in subsection (d). of Section 3 of the Revenue Certificate Law, as amended, (Ga. Laws 1939, 362, et seq.), do hereby pledge seventy-five per centum (75%) of the monies in the Revenue Fund to the, payment.of the City of Smyrna: Water and Sewerage Anticipation Certificates, and the interest thereon,,such percentage as herein pledged being such part of the gross revenues of the said system as the cost of the..are.construction, improvements, betterments, or b t r IV-1 F. rt u I extension of`�the system bears to the said cost, plus the -value of ' r the existing system before reconstruction, improvements, betterments fi or extensions, such pledged percentage of revenues being actuaily less than that.-authorized.by law to be pledged. The revenues of the said system as now existent and as hereafter added to, extended and improved, as received by the City, shall -immediately be subject to the lien of this pledge without any physical delivery thereof �-or further act,•and the lien of this -pledge shall be valid and binding -as against all parties of any kind, in tort, contract, or otIherwise against the City, irrespective of whether such parties a have notice thereof. i 1. There be and is hereby created and designated the 'tCity of Smyrna Water and Sewerage System Sinking Fund" ('hereinafter sometimes'called the "Sinking Fund" into which said fund, beginning in the month of July,. 1950, there shall first be paid from -the revenues re- ceived,by the City from the operation of the water and sewerage system the hereinhfter'stated sums for the purpose of,paying the interest and principal requirements on said certificates coming due in the then current fiscal year and to create and maintain a surplus in said Sinking Fund equal to the principal and interest require- inents on the certificates coming due in the next succeed-- ing fiscal year,:and from month to month.thereafter, up _4 to and including the"month of December, 1951,'the sum of I� $1,500 per month and beginning in the month of January-, 1952'and from month to month thereafter;, up to and including the month Hof, December„ 1959, = the sum 'of $2,10'0 l per month, and beginning the month,of. January, 1960 and -from month toY month thereafter, until sufficient funds + are on hand, -to.. spay alI `outstanding certificates at the { respective maturities and the interest which will be- come due and payable thereon, the sum of $1,675 per month; provided that the amounts IV-2 a 7 .M V t herein stipulated to be paid monthly into said sinking fund does not exceed the 75% of revenues pledged under this• section. If, for any reason, the 75% pledge of the revenues of the said sys-tem in any month amounts to a.sum less j than the required monthly sums to be paid into the I 1 ` sinking fund, then the difference shall be added to the amount required to be set aside and deposited in the sinking fund in.the next succeeding month. 2. Revenues produced and collected by the City I from the -operation of said system shall next be used to. pay the reasonable and necessary cost of operating and maintaining the'water and sewerage`system, including salaries, wages, cost of material and supplies, insurance, and such other charges as may properly be made -for the purpose of operating and maintaining the said system, in accordance with sound business practice. ,Section 4. The City covenants and agrees that it at all times, and from time to time, will prescribe and place into effect a schedule of rates, fees and charges for the services,,facilities Iand commodities to be 'furnished by its water and sewerage system and as often as it shall appear necessary, will revise ° and adjust such schedule -of rates, fees.and charges,'as may be necessary to produce funds sufficient at all times to maintain and operate said r system on a sound businesslike basis, and to provide sufficient ,revenues for the rcreation' and maintenance of a sinking fund, which eshall be sufficient to,discharge the payment ofthe principal and *y interest requirements in the current fiscal year, and in the next succeeding: fiscal. year., 'In the event the City shall fail to adopt a schedule or schedules of rates, fees and charges,'or to revise its schedule or schedules of'rates, fees and charges, in accordance with the pro- visions of this section, any certificate holder, without regard to whether any default, as defined in Article VII of this ordinance, IV-3 a h ? 1 j' 4 714 shall have occurred, may -.institute= and prosecute in any court of competentur`isdiction, an appropriate action.to compel the City to adopt a schedule or schedules of rates, fees and charges, in accordance with requirements of, this section. Section 5. Such funds as shall from time to time remain in the Revenue -Fund, after the payment into the Sinking Fund of the amount arrived at on the above percentage basis, and if the Sinking Fund is at all times maintained*so as to have deposited -therein an amount sufficient topay the principal and interest coming due in the current year and in the next fiscal year, and f after the payment of reasonable and necessary cost- of operating and maintaining the water and sewerage system, may be withdrawn from said Revenue Fund and used by the.City as it may so determine, provided said Revenue Fund shall in no event ever be less than One Thousand Dollars ($1,000), to meet any emergency or unforeseen - (contingency affecting the said system. All transfers from the Revenue Fund, and all Section 6. [payments from said Fund into other Funds, orto other sources, shall [be made -by check signed'by the Clerk,of the -City of Smyrna, Georgia, land by the Mayor, or Mayor Pro Tem. Section 7. The City covenants and agrees that the*Sink (ing Fund herein provided will be kept as a separate fund from the other deposits and the depository holding said Sinking Fund shall be designated as "Sinking Fund Custodian" and said Sinking Fund Custodian be, and is hereby designated as the Bank of Smyrna, Smyrna, Georgia, and said custodian to comply with all necessary. Irequirements,as hereinafter more specifically provided under Article V of this ordinance. The Fulton National Bank of Atlanta, Atlanta, Georgia, is hereby designated as the paying agent for the certifi- Cates, which said certificates and the coupons thereto appertaining shall be�paid at,par.. The City may from time to time designate a successor Sinking Fund Custodian, provided said Custodian complies t with the provisions of'Article V of this ordinance. f t� ' � x F -F 'P Ts IV-4 r 0 7 Section 8. Subject to the terms and conditions set forth in this ordinances monies in the Siaking.Fund shall be disbursed by the Mayor and Council for (a) the payment of interest upon certificates secured hereby as such interest falls.due, and (b) the payment `of the principal of the certifi- cates secured hereby at their respective.maturities, and a (c) the redemption of certificates secured hereby before maturity at the price and'71nder the conditions provided therefor in Article II hereof, or (d) the purchase of certificates in the open market, provided, however, the price paid shall not exceed the authorized call price, and (e) the payment of the necessary charges of the paying agent for paying certificates and interest. .Monies in the Sinking Fund not required to pay the in-, terest coming due July 1, or the interest and principal coming due Y. January 1 of any.•yea.*, may, in the discretion of the Mayor and Council, and after proper resolution.of said body, be invested in short term notes or certificates or bonds. of stated redemption F value of theiUnit,ed"States'Government, any such notes, bonds and certificates to be held by the.. Sinking Fund} Custodian for the bene- f t of -raid Sinking Fund. 'The monies in the Sinking Fund and all securities held in and for said fund and the income therefrom are hereby pledged to and charged with the payments mentioned in this section. Section 9. All certificates paid, purchased or redeemed, either at or before maturity, shall be delivered `to the Clerk of the City of Smyrna when such payment or redemption is made, to- gether with all unmatured coupons appertaining..thereto, and such certificates and coupons shall thereupon be cancelled and shall not .be reissued. All interest coupons shall be cancelled upon their payment and delivered to said Clerk. All certificates and coupons so cancelled shall be cremated in accordance with the practice now prevailing with the Mayor and Council of the City of Smyrna. 0 0 ARTICLE 9 DEPOSITORIES OF MONIES AND SECURITIES FOR DEPOSITS Section 1. Except as otherVise provided in this ordi- nance, all monies received by the City under the terms of this ordinance shall, subject to the giving of security or the filing of surety bonds as hereinafter provided, be deposited with the Depository, or with the Sinking Fund Custodian -in the name of the City. A11 monies,deposited under the provisions of this ordinance shall -be applied in accordance with the -terms hereof, and for the purposes set forth in this ordinance, and shall not k be subject to lien or attachment by any creditor of this City'. s No monies, whether belonging to the Construction Fund, the Revenue Fund, or the Sinking.Fund, or any other fund, shall be deposited or remain on deposit with the Depository, or the r Sinking Fund Custodian:, in an amount in excess of the amount guaranteed by the Federal Deposit Insurance Corporation, unless such institution shall have pledged for the benefit of the City and the holders of the certificates, as collateral security for the monies d'eposited,.direct obligations of, or obligations the principal and interest of tahieh unconditionally guaranteed by ,the United States Government) or other marketable securities eli- gible as security for`the=deposit of trust funds under regulations of� the Board .of Governrs ,of the Federal Reserve System and having j /!. f a market value (exclusive of accrued interest) at least equal to T the amount of such deposit. f rv. S V-1 f c I ARTICLE VI �' PARTICULAR COVENANTS ; Section 1. The City covenants that it will promptly pay the principal of, and interest on,°every certificate.is8ued I ' hereunder and secured hereby at the place and on the dates and in the manner herein, and in said certificates and in the coupons thereto appertaining,,, specified, and any premium required for the redemption of said certificates, according to the true intent and meaning thereof,. The principal, interest charges of the paying agent, and premiums, if any, are payable solely out of the reve- nues of the water and sewerage system, which revenues are hereby Pledged to -the payment.thereof in the manner and to the extent hereinabove particularly specified, and nothing in the certificates or coupons or in this ordinance shall'be const`r.ued as obligations 1 of the City of Smyrna, to levy'or to pledge any form of taxation whatever therefor or to make any appropriation for their payment, except fromrevenues of,the said. system, .and no certificate holder shall have any recourse to the power of taxation. Section 2. The City covenants that it -has and will continue to'enforce reasonable rules and regulations governing the water and sewerage.system and the operation thereof, and'that all compensation, salaries, fees and wages paid by it in connec- tion with the maintenance,'repair and 'operation of such system will be reasonable, and that no more persons will be employ.ed by it than are.necessary, and, -that it will operate same in an effi- cient anV economical manner; and,will at all times maintain the .same in good repair, rand. id s.ouna operating condition and will make all necessary repairs, renewals and replacements, and that it will' c'omply/,with ;all validf :acts; "rules, ;regulations, orders. afid.directions of any legislative, executive, administrative, or, judicial body applicable to such undertakings and enterprise. i jil k I i VI-1 Y ^ 1 The City further covenants and agrees that any contracts for labor, materials, or construction shall also provide that payments thereunder shall not be made by the City in excess•of ninety per cent (90%) of current estimates made by the City or its engineers, except payment of the final balance under any such contract. Section 3. The City further covenants that it will { not create, or suffer to be created, any lien or charge,upon such water and sewerage system or any part thereof, or upon the revenues f derived therefrom, ranking equally with or prior to the certifi- cates, except the lien and charge of the certificates herein + authorized upon such revenues, and that it will pay or cause to be discharged, or will make adegiiate.provisions to satisfy and discharge, within sixty (60) days after the same shall accrue, all lawful claims and demands for labor, materials, supplies or other objects which, if unpaid, might by law become a lien upon ,such system, or an art thereof, or upon the revenues therefrom y � y P � P provided, however, that nothing.in this Section contained shall require the City to pay, or cause to be discharged, or make' pro- vision for, any 'such lien or charge, so long as the validity i thereof shall be contested in good faith, and by appropriate a legal proceedings. Section 4. The City covenants that it will insure and at all times keep 'the following properties belonging to the water 4 and sewerage system.4insured to the full insurable value thereof, in a responsible insurance.company•or companies, authorized and qualified- uhder the laws of the State of Georgia to assume the risks thereof; against loss`or damage thereto, from the following causes: < a.. F i . Y All buildings, and all machinery and equipment ' therein against loss or damage by fire, lightning'," tornado, or winds; All other property against loss or damage by fire or lightning if the same is not fireproof, and against loss or damage from other causes customarily insured.•against by companies engaged in similar business. All, such policies }shall°be for the benefit, &` of the City, shall be made payable to the City,and shall be deposited with the,.Clerk of the Mayor and , CouAnc.'il 'of Ahej City, of h§mFrna-. , s The proceeds of all insurance policies referred to in this Section shall be available for and shall, to the}extent necessary and desirable, be applied to the repair and replacement of the damaged or destroyed property, Section 5. All insurance policies shall be open to the inspection of the certificate holders and their representa- tives at al•l.reasonable times. �i Section 6. The City covenants that"it will keep the fi funds and accounts of the water and sewerage system separate from all other funds and accounts,of the City, or any'of•its department and that•it will keep accurate records and accounts of,all,items of cost and all expenditures relating to the water and sewerage system, and of the revenues collected and the application of..s.uch revenues', and of the number of consumers, and that it will keep said records'and-accounts with respect to its physical properties e in such manner that it -will be -possible at all times to identify both the amounts and the items of all additions and retirements. Such records.and accounts shall be open to the inspection of all interested persons. j 'f • + ' The City further covenants that at least semi-annually I each year it will cause to be"filed with the original purchasers of the certificates issued hereunder, copies of any material `re- visions of charges and fees or change in management during the �I preceding six months, Wand a report 'signed by ,the Clerk ofthe Mayor and Council, setting forth in respect of the preceding six months and of the twelve months period ending with such last month. �I (a) A separate income and expense account of such water and sewerage system; (b) All payments t'o, and withdrawals from, ,1 the Construction Fund, the Revenue Fund and the Sinking Fund; (c) The -aggregate amount of certificates issued, paid, purchased, or redeemed; iI (d) A'balance`sheet as of the end of said six �I months; y + ('e) The amount on deposit at the end of such i six months period to the credit of each. of. the, above funds. The City further covenant's that in the month of Januar"y r �I in each year, or -as soon thereafter as practical, it will cause ,i an audit to be made of its books and accounts pertaining to the said system by an independent and recognized firm of Certified Public Accountants of suitable experience and responsibility, to be chosen by the Mayor and Council. #Such"demi-annual reports -And audit reports shall be open to the 'inspection of a114;interested,persons and a copy of same { shall be sent to the original purchasers of,,the,certificates. - Y -� The City `further covenants that -••it will cause any additional re- ports or audit's relating to such system to be made, as required it ,by law,,and that from time to time as often -as may be requested, + I' vI-4 LI it will furnish to the original purchasers.of certificates issued hereunder such other information concerning such enterprise; or the operation thereof, as any of them may reasonably request. I The cost of such audits shall be treated as a part of the cost of operation. Section 7. The City covenants that so long as the certificates, or any of them, shall be outstanding, and except as 'I in this ordinance otherwise permitted, it will not sell or other- wise dispose"of, or encumber the water and sewerage system, or any part thereof, and will not create or permit -to be created, any charge or lien on the revenues of -such enterprise ranking equally with, or prior to, the charges or lien of such revenues of the I - certificates issued -under and secured.by this ordinance.. t ' Section 8. The City covenants that it will not sell the water and sewerage system`, as a whole or substantially as a whole,- unless the proceeds' of 'such- sale shall be at least suffi- cient ,t,o provide for the redemption' of alr certificates and any- `' interestaccr".ued, or to `accrue, issued under and secured by this ordinance, and `that the proceeds of any such sale shall„be depo- sited with the Sinking Fund Custodian in trust, and by it applied to the extent necessary, to the purchase or redemption of such cer- tificates . VI-5 I ' f ARTICLE VII REMEDIES Section 1. Each of the following events is hereby declared=an"event of default", that.is to say, if: (a) Payment of -the principal of any of the certificates shall not be made when the same shall become due and payable, either at its maturity or by proceedings for redemption; or (b) Payment of any installment•of interest shall not be made when,the same becomes due and payable-, or. within thirty (30) days thereafter; or (c) The -City shall, for any reason, be rendered.. incapable of fulfilling its obligations hereunder; -or (d) An order or decree shall be..entered, with f the -consent or acquiescence of the City; appointing a Receiver, or,,Receivers,;of the water and sewerage system,, or of the revenues thereof, or any proceedings r shall be instituted, with the consent or acquiescence of` I , f the City, for the,purpose of effecting a composition i ' between the City and its creditors, or for the purpose of adjusting the claims of such creditors, pursuant to ! any Federal. or State statute now or hereafter enacted, if the claims of such creditors are under any circum- stances payable out of the revenues of the water and seweragessyst'em,'or if such•order or decree, having r - been.entered without -the consent and acquiescence -of the City, shall not be vacated or discharged or stayed on appeal within sixty` (60)_ days after entry thereof, or: if such proceeding,. ]iaving..=been .instituted without the consent or acquiescence of'the City, shall not be withdrawn, or a.ny'orders entered shall not be vacated, discharged_or stayed on appeal, within sixty (60). days after the institution of such proceedings, or the entry F ; ' of such orders; or a M1 (e) The City shall make default in the due and punctual performance of any other of the covenants, conditions, agreements or.provisions contained in the certificates or in this ordinance, on the part of the City to be performed, and such default shall continue for thirty (30) days after written notice, specifying such default and requiring same -to be'remedied, shall have been given to the City by any'certificate holder. Section 2. Upon the happening and continuance of any 'event of default specified in Section l of this Article, then and in every such case the holders of not'less than fifty-five (55%) per cent in the principal amount of the certificates then out- ' 4 st11 anding may, by a notice in writing to the City, declare the prin— cipal of all of the certificates then outstanding (if not then due x and payable) to be due and payable immediately, and upon such declaration the same shall become and be immediately -,due and paya- }} ble, anything in the certificate or in this ordinance contained 1 to the'contrary notwithstanding; provided, however, that if at any time after the principal of the certificates shall Have been so declared to be due and payable, all arrears of interest, if any, upon all the certificates then outstanding, and all other indebtedness secured hereby, except the principal -of any certifi- cates not then due by their terms, and the interest accrued on such certificates since the last interest payment date, shall have been paid, or shall have been provided for by deposit with -the-bank or ;trust, company at which 'the principal and interest of such certificates shall- be payable, of'a sum.sufficient to pay the same, and every other default in the observance or performance of`any covenant,. condition ;or agreement in tie. certificate, or ,i in -this ordinance contained, shall be made good, or provision therefor satisfactory to such certificate holder shall have been I VII-2 i • made, then and in every such case the holders of not less than fifty-five (55a) per cent.in,principal amount of the certificates �I then outstanding may, by �.rritten notice to the City, rescind an annul such declaration and its,consequences, but no such rescission or annulment. shall .extend to, or affect, any subsequent default or impair any right consequent thereto. Section 3.. Upon the happening and continuance of any event of default as provided In Section 1 of this Article,, thens and`in},every. sucl�,case any certif cate,holder may proceed, subject to ,the •provisions of, Section-5 of this Article, to protect, and ` enforce the rig)ats of the certificate holders under this ordinance by aesuitt act•idn:'or"'special proceedings Firi equity, or at law, I either for the appointment of -a Receiver of the water and sewerage h } system as authorized by the Revenue 'Certificate Law, or for the special performance of any covenant or agreement contained herein I, . i or in aid or execution of any power herein granted,xor for the.. enforcement of any proper legal or equitable remedy as such cer- tificate holder shall deem most -effectual to protect and enforce the rights aforesaid, in so far' as such may be authorized by law. Section 4. In case any proceeding taken by any certifi- cate holder on account of any default shall have been discontinued or abandoned for any reason, or shall have been determined ad- versely to such certificate holder, then and .in every such case the City and the certificate"holders shall be restored to their former positions and rights hereunder, respectively -"and all rights, remedies,.powers and duties of the certificate holders shall continue as though no such proceedings had been taken. Section 5. No .one, or more, holders of the certificates hereby secured shall have any right in any manner whatever by his or their action to affect, disturb,' or prejudice the security of G n a f f 9 VII-3 I ~ f this ordinance, or to enforce any right hereunder, except in the manner herein provided, and all proceedings at law or in equity shall be instituted, had, and maintained for the equal benefit of all holders of such outstanding certificates and coupons. S6ction 6. No`remedy herein conferred upon the.certifi- cate holders�is intended to be exclusive.of any other remedy, or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every -other, remedy given hereunder F or.n.ow or` hereafter existing at law or in equity', or by _statute. Y Section 7. No delay or omission of the holder of the certificates to exercisse4any right.or power accruing upon any, default o6curring and contihuing a's aforesaid, shall impair any r such default, or an acquiescendo, therein; and every power.and remedy given by•this Article,to the holders of the certificates, time to`time respectively, may be exercised from and as,often as may be deemed expedient. r 1l I - I . 4 7 • .� f IT .r t ' i , .i ,p�, '•llr I 1 r F 4 P , a VII-4 4 i ARTICLE VIII MISCELLANEOUS`PROVISIONS AND DEFINITIONS Section 1. Any bank or trust company with, or into which, the paying agent mentioned in Section 7 of Article IV of this - ordinance may be merged or consolidated, or to which the assets and the business of such paying agents may be sold, shall be deemed the succes"s_or of such such paying• agents, for the purposes of this ordinance. Whenevera.used in this ordinance, the singular shall 4 'include the plural,..and the plural shall include the singular, s unless' the corit:ext otherwise indicates. The term "fiscal year." shall be deemed to be the period ` commencing on the first day of January and ending on the last day ,of December. �y i. • Y p J Section 2. In case any one or more oftheprovisions of, this ordinance, or the certificates or coupons issued hereunder, Ki shall for any'reason be held to be illegal or invalid., such ille- gality or invalidity shall not affect any other provision of this .. r ordinance, or. said certificates or coupons, but this ordinance and said certificates and coupons shall be construed and enforced P as if such illegal or invalid provisions,had not been contained therein. Section 3. The provisions of this ordinance shall con- stitute a contract by and between the City of Smyrna and the holders of the certificates authorized to be issued hereunder, and after the issuance of said certificates, this ordinance shall not to repealed or amended in any respect which will adversely affect the right; Cates, nor shall any ordinance in holders, �so long ordinance, or thi and interests of the holders of said certifi- the Mayor and Council of,the City of Smyrna pass any way adversely affecting the rights of such as any of,the certificates authorized by this E).interest thereon, shall remain unpaid. Any,. subsequent -ordinance, or ordinances, authorizing the issuance of all or any part of the certificates provided for under,Section 1, Article I of this ordinance shall in nowise con- flict with the terms and conditions,of this ordinance; but,shall for all legal purposes, contain all the covenants, agreements and provisions of this ordinance for the equal protection and benefit of all certificate holders. Section 4. `The term "Mayor and Council" shall be con- ve nin body of the City of Smyrna, strued to,mean the present gor r g y Y Y , and any successor or successors. ,in; office to said present body, -and any person, body' or;authority to whom, or which, may hereafter be delegated bylaw the dutie's,, powers, authority, obligations or liabilities of the present body, either in whole, or in relation to the water and sewerage system. Section Any and all ordinances, or parts of ordi- nances, in conflict with this ordinance this day passed be, and are, hereby repealed, and this ordinance shall be in full force and effect from and after its adoption. 4 r i . CLERK'S CERTIFICATE GEORGIA, COBB COUNTY. Clerk of the City of Smyrna �do hereby CERTIFY that the foregoing pages of typewritten matter constitute a true and correct copy of the ordinance passed by the Mayor and Council of the City of -Smyrna and being duly assem- -§W bled on the day of �,w/ 19501 in connection with the issuance of $350,000'.00 Water and Sewerage Revenue Anticipa-tion Certificates, the original of which ordinance has been duly recorded in the Minute Book of said Body, which is in my custody and control. WITNESS my official hand and seal this day of /M 1950. 01 4, evol 44v(.4v Clerk % 4 (S E A L), Ilk I 223 May 19, 1950 (Special meeting min. con.) Motion made by'C. W. Jones and seconded -by H. L. McEntyre to employ Mr. J. T. Brown as general forman of new waterworks construction work, and also to employ an assistant to Mr. Brown, to be effective during construction 'peftod only. Voted unanimous,, Motion made by H. L. McEntyre and second by Co W. Jones to pay Mr. Brown, as general forman $75 per week and assistant $45 per week during -construct- ion period of waterworks system. Voted unanimous Motion made by Stanley McCalla and seconded by Howard Hames to give Mayor authority to execute a loan for $10,000 at 3% interest with the Bank of Smyrna, to be paid back with funds received from issuing new Revenue Certi- ficates. Clerk to attest same. Voted unanimous. Mayor Gibson appointed Mr. Shaw and Mr. Hames to secure.a forman for rec- omendation to the Council for approval to supervise the construction work. Meeting adjourned. Ali L Z2Z: 1/1 A special meeting of the Mayor May 25, 1950, 7:30.P. M. Mayor J. M. Gibson, presiding P. P. Shaw, H. L..McEntyre, C. Hamese lerk and Council was held at the City Hall, with the following Councilmen present; W. Jones, Stanley.McCalla and Howard Motion made by Councilman Jones that all new construction jobs on the water and sewerage systems shall be approved by the City council before started. Seconded by.H.. L. McEntyre. Voted unanimous. Motion made by Councilman McEntyre by,the. City as assistant forman on construction, provided he is proven .-` ion within two week period, of .time t( 7 Voted unanimous. that one, Frank McCutcheon be retained the water and sewerage improvement qualified and suited for said.posit- from the day employed. Seconded by Motion made by Councilman Jones, to out in all houses on the new 6" water main that are not already out in on the following streets; Powder.Springs, Brown Circle, Hill Street, and Fleming Street. Seconded by P. P. Shaw. Voted unanimous.-_" Motion made by Councilman Shaw that chairman of the police committee , Councilman McEntyre, be authorized to spend $45.00 to have the City police car' -painted. The aforementioned $45.00 being the lowest.and best b U on said job, Seconded by Howard Hames. Voted unanimous. Meeting adjourned. Minutes anley McCalla. Wrm-W00 000 A .: LI .71A.Mm7m.