Press Alt + R to read the document text or Alt + P to download or print.

No preview available

The URL can be used to link to this page

Home My WebLink AboutSchool Bldg Revenue Bonds (1)2 A RESOLUTION OF THE BOARD OF' COMMISSIONERS OF THE CITY OF PADUCAH, J KENTUCKY ACKNOWLEDGING :AS A MATTER' OF" OFFICI-AL RECORD AN° AGREEMENT `OF~ THE CITY OF PADUCAH AND THIS' ~BO~RD'"OF COMMISSIONERS `TO COOPERATE WITH,.-THE BOARD OF EDUCATION OF PADUCAH, KENTUCKY, IN THE ISSUANCE OF "CITY OF PADUCAH SCHOOL BUILDING REVENUE BONDS`, '.SERIES OF FEBRUARY 1, -1979;" IN AN .AGGREGATE PRINCIPAL AMOUNT WHICH CANNOT BE DETERMINED UNTIL CONSTRUCTION BIDS RAVE BEEN ~PU.BLICLY RECENED -AND COMPARED; IDENTIFYING. AND DESCRIBING "THE" SITES TO BE CONVEYED BY THE BOARD OF EDUCATION"TO THE CITY 'PURSUANT TO KRS 1:62.120 AND AGREEING TO ACCEPT ONE OR MORE: DEEDS OF CONVEYANCE THEREOF WHEN TENDERED; AGREEING TO EXECUTE WITH SAID BOARD- OF "EDUCATION A - "CONTRACT -0F LEASE AND RENT" CONFORM- ING TO THE REQUIREMENTS OF KRS 162.140 IN ORDER TO PRODUCE' TO THE CITY RENTAL REVENUES FROM WHICH THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE PAID; DESCRIBING. IN GENERAL TERMS--THE SCHOOL BUILDING :PROJECTS TO BE CONSTRUCTED AND RECONSTRUCTED UPON THE RESPECTIVE SITES AND FINANCED THROUGH THE ISSUANCE OF SUCH BONDS; PRESCRIBING THE FORMS OF THE BONDS AND INTEREST COUPONS; NAM- ING THE BANK WHERE PRINCIPAL AND INTEREST WILL BE PAYABLE; PROVIDING FOR THE RECEIPT OF 'RENTALS PURSUANT TO THE° "CONTRACT OF~~LEASE AND RENT" AND THE CUSTODY 'AND DISPOSITION `THEREOF;°-PRESCRIBING THE COVENANTS ~TO BE MADE WITH THE HOLDERS OF THEE BONDS AND COUPONS ; AND ARBIfiRA~E COVENANTS' TO''COMPLY WITH REGULATIONS OF THE INTERNAL REVENUE' SERVLCE; ~~PROVIDING FOR' THE CUSTODY , SAFE- KEEPING AND DISBURSEMENT OF SHE PROCEEDS OFD THE BONDS; AUTHORIIZING ADVERTISE- MENT OF THE. BONDS, WHEN AUTHORIZED - BY ORDINANCE , AT AN ADVERTISED PUBLIC COMPETITIVE- SALE SIN ACCORDANCE WITH-THE 'REQUIREMENTS .OF KRS- CHAPTER 424; ALL TO THE END THAT THE SUBSTANCE AND "DETAILS OF TIIIS RESOLUTION MAY BE INCOR- PORATED BY REFERENCE IN THE ORDINANCE, TO BE ADOPTED LATER, AUTHORIZING THE ISSUANCE OF SAID ~ BOND'S ; IN...ORDER TO ENABLE THE CITY TO SE.LZ AND DELIVER SUCH BONDS WITHIN THE VERY LIMITED PERIOD OF TIME WHICH WILL BE AVAILABLE; AND -RE- CITING THE LEGAL AUTHORITY FOR PROCEEDING IN THE ANNOUNCED AND INTENDED MANNER . WHEREAS, the Board of Education of Paducah, Kentucky, with the approval of the State Board of Education, acting through the State Department for Elementary and Secondary Education, has determined. tliat'?there is an urgent need and demand for the undertaking of three substantial projects .for the ~ construction of school buildings which will constitute additions to the existing buildings at Tilghman Senior High School and at the Morgan and Clark Elementary Schools, in the Paducah School District, together with substantial reconstruction of said existing school buildings; and in that connection the Board of Education has agreed to convey to the City of Paducah the sites of the respective construction projects as pro- vided by KRS 162.120; and the City of Paducah and this Board of Commissioners have agreed 3 to accept one or more conveyances of the school sites when tendered by the Board of Education, to authorize by Ordinance and according to the authority of KRS 162.1.20 to 162.290 "City of Paducah School Building Revenue Bonds, Series of February 1, 1979," to provide. the costs of the construction and reconstruction program , the fees of the Architects , the fee of the Fiscal Agent; capitalized interest and other costs, such School. Building Revenue Bonds to be offered by ther'Cty at -an advertised public competitive sale; and ' WHEREAS , in conformity with the requirements of KRS 162.140 the Boar"d of Education has agreed . to execute "with "the City of ~Padiicah a "Contract ~of Lease and Rent" whereby the Board 'of Education will- lease said sites and the buildings to be constructed and re- constructed thereon ~ for a period of one year , with exclusive options to the Board of Education to renew the same from year to year thereafter,.: for one. year at a time, at rentals to be payable semiannually so long as such lease "instrument is renewed and remains in effect , sufficient to enable the City to pay , solely from such rentals , the principal of and interest on the School Building Revenue Bond's which the City has agreed to issue , and also the costs of maintenance and insurance of the properties ; to the extent not paid by the Board of Education as lessee.; and the City :and: the Board "of Commissioners have agreed to enter into- such "Contract- of Lease and Rent" when tendered and found to ~be ? in accordance with statutory requirements; and " WHEREAS , the ~ plans and specifications prepared by the "Architects. have been - • approved by- the Superintendent: of Public' Instruction as required :by KRS Y62:.160 and filed in the office of the--City Clerk, and' because of the pressure of time as''hereinafter recited, the Board of~ Education has caused.;~advertsements to be published in its own name soliciting the-• submission of competitive construction bids , all in .the manner required by- ' law and- in the -manner which the-:City°itseif is r:equire~d to follow in such matters, so that it is in order for the City to agree that it will ratify and adopt construction constracts awarded by the Board of`tEducation on the basis thereof; and" WHEREAS , tYie Architects have ascertained to their satisfaction -that by reason of continually increasing costs` of Tabor and material attributable to inflation, construction contractors 'will not submit bids which are firm for more than sixty (60) days; and in order for the City to enter into construction: contracts" payable •frorn -bond proceeds it is necessary that the prospective School Building Revenue Bonds be authorized, pub"lcly sold, printed and' delivered "within -such periof of sixty (60) days after the opening of the first construction bids; but nevertheless the amount of the bond issue cannot be determined until the opening of `the' last ~'of the construction bids , presently contemplated to be done ion January 18 , 1979 , ' so 'that it is necessary to determine 'at thus time as many of the details and provisions of the bond `issue as may feasibly be determined, leaving the amount "of the bond issue', the maturity schedule of the bonds and the amounts of the annual rental payments to~ "be made 'by the' Board of Education to the City under the terms of the "Contract of Lease and Rent" to be determined in the bond-authorizing 4 Ordinance when such details are available; all to the end that this Resolution may be made a matter of ,official record in the office of the City Clerk and may be incorporated by reference into the- bond-authorizing Ordinance ,_ thus shortening the .text of such Ordinance and enabling the Board of. Commissioners to' give such" bond- Ordinance two readings, a week apart., as required by KRS -89.590," to allow ten (10) days for the Ordinance to become effective after adoption, to advertise the public sale of the bonds according to -KRS "Chapter 42.5 ,. to make an award of the bonds to the: beat :bidder , to cause. the bonds- to be printed and thereafter executed and delivered, all within such period of sixty (60) days; and WHEREAS , legal° authority- for the -adoption of this Resolution as am official public record of the City , 'and for incorporation. of the provisions hereof by reference in the bond-authorizing Ordinance- which cannot- be prepared° until a later date, exists in a decision of the highest Court of the Commonwealth in the case of City of Hazard v . Collins (1947), 304 Ky. 379; 200 SW 2d 933, NOW , THEREFORE , THE BOARD- OF COMMISSIONERS OF THE CITY OF PADUCAH , KENTUCKY, DOES HEREBY RESOLVE, AS FOLLOWS: SECTION 1. The Board ~of Commissioners hereby agrees to cooperate in carry- ing out the. proposed financing of school building- _projects upon -the sites hereinafter described, according to the plans and specifications prepared by Architects employed by the Board of Education: and approved by the Superintendent of Public Instruction and- by the Board of Education of- Paflticah, this agreement being conditioned only upon the per- formance by the Board of Education of Paducah of :all actions required`by KRS 162:120 to 162.290 to be performed on~ its part, as hereinafter" more particularly set forth;. it being clearly understood and agreed that. in the" issuarice~ of School `Building Revenue- Bonds according to said S atutes the -City shall agree to pay the principal of and interest on the` bonds from time to time solely from a special fund consisting or rentals received by the City from the leasing of the school sites and the buildings to be constructed and re-. constructed thereon, and that the City will not incur any indebtedness to the holders of said bonds , or of the interest coupons appurtenant thereto , in any manner payable from the general funds of the Gtp or from its tax revenues orfrom the' exercise of its -•- taxing powers . The -.test .of each bond shall , as hereinafter provided, and. as :provided in KRS 162.-190, clearly- ao state. SECTION 2. More specifically, the- Board of Commissioners acting for the City of Paducah, hereby agrees: (1) T.he Board .of Education has agreed, as required by KRS 162.120, ,that- it will execute and tender to the .C-ity one. or -more deeds whereby said- Board -will convey to the City in fee simple , . free of all- encumbrances , and -with covenant of general warranty of title, the sites- of the three school properties upon which buildings are sought to be constructed and reconstructed, the same being .particularly described. as €ollows: 5 SITE OF PADUCAH TILGIi1VIAN SENIOR HIGH SCHOOL Tract I Lots 9 through 16 ; inclusive , block 2 of Dossett's subdivision of the City of Fad!ucah as shown- on Plat Bood~ "D"~; page 23 in the McCracken County Court Clerk's Office , each of said' lots' fronting 50 feet on the South side of Clark Street 'and extending back in a southerly-direction 200 feet to " an- alley and- said lots comprising all that portion of pro- perty lying on -the South side of Clark Street :between.. 24th Street and 25th Street" in the.=City"of Paducah. Tract: II Lots 17 through.. 24; inclusive', Block`-"1-of D'ossett'~s subdivision as shown by plat. of said subdivision.-:recorded in Plat Book "D" , page 23, in the McCracken County Court `Cleerk's Office ,' each of "said lots fronting 50 feet on the -North side of- Clark Street and running" back in a northerly direction 165 feet to an alley, and said lots comprising all that portion of property fronting on the North side of Clark Street between 24th Street .and 25th Street in the City" of Paducah: `" -° Tract "IIi Lots 2 through "Z1, inclusive; of O. H. Shelton's Addition to the City of Paducah ; Kentucky , as .shown by plat of said additon° recorded in Plat Book "A" , pages 184 and 185 . - ~ " - TRACT N Beginning at a point where the South line of Lot No . 1 of O . H . Shelton's Addition intersects -the East. line ~of the land- of the" Wes End lmprovement- Company; -being thesame point where the South line of -the parcel :of real estate- evnveyed to : E : ~ J . Paxton by ;the West End I'inprovement Company by deed- =dated January 20th.., -192:5 , recorded inDeed' Book 142 , page 372 , aforesaid Clerk's :Office=., intersects the East line of the land: of Elie .West End Improvement; thence Westwardly-=with. the South line _of the parcel of real estate- sold by -the" West. End. Improvement Company to E . J . Paxton to a point-where the South line `~of said E. ": J : Paxton' parcel of real estate. intersects the :South line of the land of the. West End: Improvement Company in the East line of a 15-foot alley in 'O:: H. Shelton's Addition, common corner of Lot No. 2 of O. H. Shelton's Addition and E. J, Paxton's parcel of real-estate; thence` Eastwardly with the°:South line of the land of the. West End -Improvement Company to a point, where ,said line intersects the North line- of Lots-No . 4 of O : -H . Shelton's Addition; and thence in a Nor.-th'erly direction on "with the East - line of the land of the West End Improvement Company to the point of beginning. - . , , - - Tract V Also ~ all that property heretofore included in all streets and alleys in Paducah, Kentucky in the area bounded on the South by the North line of -Adams Street and the said .North-.dine of Adams Street, if extended, on the east by the west line of 23rd Street, and the said West line of 23rd Street, if ,extended, on the: north. by. the ~ South line of .Washington Street; and on the west by the East line of 25th Street, except, however, the alley extending from the east -line of 25th Street-_to ° the west lirie~ ~of 24th. Street, and situated between Washington and Clark Street, and except that portion of 24th Street. between the South- line of said alley; if ex- tended, and the South line of Washington Street. Said former streets and alleys: reverted to Grantor upon :closing of same . by judgment enter- ed in the McCracken Circuit Court on the 16th day of February, 1954, in an action sytled "City-of Paducah vs. Board of Education of Paducah,: Kentucky" . Being, in part, the same property conveyed to the City of Paducah, Kentucky , - by the- Board of Education of Paducah , ' Kentucky; by deed dated the 20th day of February, 1954, recorded in Deed Book 246, at page. 289, in the Office. of the Clerk of the-County Court."of•McCraeken County , Kentucky . 6 SITE OF CLARK ELEMENTARY SCHOOL Beginning at a stone on the North side of the Buckner Lane Road , or Broadway extended, at the intersection of the said Buckner Lane Road or Broadtnray :e~tended,~ with.. Fsi~dman Avenue, ., same; being. the South- east corner of the'landhereby described; thence Westwardly with. the North side .of said Buckner Lane;:: or Broadway extended; •537 feet to a ~ ' stone, -the Southeast corner °of the' lot 'or parcel -of ground.- conveyed Ito ~~` India Watkins by: deed~-date_d February 18th, 1927',., as shown by the - records of the-- McCracken County Clerk's `Office in Deed Book :161, page 49; thence Northwardly and with the East. ane~ of said India Watkins -lot or parcel of ground, just mentioned, 230.3 feet to a stone marker at the Northeast corner of said India Watkins• lot or parcel of ground , above mentioned; thence following a new line Northwardly and continuing the same~:~o.trse as:tlieEast line of the+ India .Watkins- lot or parcel of ground, above--:mentioned;•~175 feet to a stone marker in the South-line of Gregory ' Avenue ;(.being ;the ':'Gregory Avenue". of` the :Afton":Heiglits -Addition to Paducah, Kentucky;, as- shown by a Plan of: said addition 'recorded in Plat Book "A" ~ - atforesaid C~1erk's- Office);' tYience.-:at right. angles . Easfwardly and with the' South: line of said Gregory Avenue 528'.17 feet to a stone on the West side of Friedman Avenue: and"; at th~~ intersection of said Friedman. Avenue and Gregory Avenue; and thence at right angles Southwardly and with the West side of Friedman Avenue •3`32.9 feet to the point of beginning. Being the"'same property conveyed to Board of Education of Paducah, Ken- tucky, by~ Deed of Conveyance ':of Dow Wilcoxx and others dated' June 28,-~ 1928, and recorded in Deed Book page ~ ~ ~ ` _in:?the .Mc- Cracken County Court Clerk's Office . SITE.OF MORGAN ELEMENTARY SCHOOL Beginning at-the southwest. corner of the intersection of Georgia Street - _. ands youth ~ 28th Street; thence.; :South ~0 degrees: 41 -minutes-West- alorig° the West line of Georgia Street 413.8 feet `to the ,northwest .corner 'of'the" intersection - of Georgia Street • and 29th Street; thence 'South 77 degrees • 41 minutes East along the Nort line` of "29th: Street 850 feet more or less to the 'northeast: corner of~the intersection of :29t1i Street and -Mi'ssssppi ~~ Street; thence 'in a ;northerly ~ direction along the East ~ line of Missi-ssippi Street to the=;sauthea t corner of they intersection of Mississippi ~-Street and 28th Street; tYience South 78 degrees -East along .the- South line of ' 28th Street to the beginning. ---' Being part ~ of the property :conveyed to Board of Education of, Paducah ; Kentucky , -b:~ Deed of Gonveyanee of J . N . Bailey and his- wife , Pattie T . Bailey , ~ dated July: 1; 1929:; 'and. recorded in Deed -Book ~ 164, page 616 , McCracken County Court Clerk's Office .• (2) The Board of Education has agreed, as required by KRS 162.140,- that it will execute and tender to the City a lease instrument which may be designated "Contract of Lease and Rent" in they customary manner,--the same to conform to statutory~'requirements by providing that the- Board- of Education leases from the City- the above-described sites and the school buildings existing thereon, and to' be constructed and reconstructed thereon; -for a period of one year, with exclusive options to the Boards of -Education 'to renew such lease thereafter from year to year ,. for one year "at a time , until fhe final maturity date" of the bonds authorized- by the Ordinance to be adopted by the Board of Commissioners according to authority of KRS 162. i70, et seq.. ; and in accordance with the details hereinafter set forth. Said lease instrument shall also provide that so long as the same is renewed by the Board of Education and - is continued in 'force the Board ~of Education will pay to the City , rentals, in cash, in .such amounts and~:at such times as wil enable the Cit~r to pay, solely from such cash rentals, the principal of and interest on the School Building Revenue Bonds issued by the City, as and when the respective bonds and interest coupons become due 7 from time to time; and the Board of Education shall additionally agree that it will from its own resources pay, so long as the lease instrument is renewed and remains in force, all costs of maintaining the school properties in good condition and the cost of insuring the same against fire, windstorm and all of the hazards covered by the standard comprehensive or extended coverage endorsements, such insurance to be in the full insurable value of the improvements upon said sites , to be for the benefit of the bondholders , and to be written in the names of the City of Paducah and the Board of Education of Paducah and the bondholders , as their respective interests may appear , all premiums therefor to be paid by the Board of Education. Additionally said "Contract of Lease and Rent" shall pro- vide that from and after the first date when the School Building Revenue Bonds are sub- ject to redemption at the option of the City, the Board of Education may prepay rent, cause the then outstanding bonds to be called for redemption and retired, and obtain a reconveyance of the sites and all improvements thereon from the City to the Board of Education free and clear of all claims of the bondholders, by paying to the City an amount of money sufficient to enable the City to call and redeem all of the then outstanding bonds, including interest to the redemption date and the prescribed redemption premium as herein- after set forth; and said instrument shall also assign to each of the three school pro- perties an estimated percentage of the total amount of the bond issue representing, as nearly as may be, the amount of bond proceeds to be expended on each site, and shall grant to the Board of Education options to purchase and reacquire title to any or all of said described tracts, and the improvements thereon, upon paying to the City an amount of money sufficient to enable the City to call, redeem and retire that specified percentage of the ~ bonds then outstanding, in order that the Board of Education may re- acquire such title in the event of damage or destruction to the improvements thereon, or in the event the Board of Education shall desire to initiate the issuance of a new and separate issue of bonds for construction or reconstruction of further improvements there- on, all as hereinafter provided. When the Board of Education tenders to the City one or more executed copies of a "Contract of Lease and Rent" meeting the above requirements , together with evidence that the same has been duly authorized by the Board of Education according to law , the same shall be executed in the name and on behalf of the City by the Mayor, attested under seal by the City Clerk, and the City Clerk is directed to cause the same to be recorded in the office of the Clerk of the County Court of McCracken County , Kentucky . (3) The Board of Education having tendered to the City a contract made by the Board of Education with Gresham & Kerr-John Keeling, licensed Architects, having their place of business at 126 Second Street, Paducah, Kentucky, under the terms of which said Architects have been employed to prepare the plans and specifications for and to supervise construction and reconstruction of the school buildings upon the site of Paducah 8 Tilghman Senior High School, hereinabove described, and such contract having been examined and found to be satisfactory as to form and substance, the City of Paducah hereby approves and adopts said contract and agrees to the terms and conditions thereof; provided, however, all compensation payable to the Architects thereunder and all expenses to be reimbursed to them thereunder shall be paid to them by the City solely from the proceeds of the School Building Revenue Bonds and shall not be a liability of or payable from any other resources of the City of Paducah. Said contract of the ;,,. ~ - , architects may be endorsed to show this approval and acceptance by the City, and the Mayor is hereby authorized to sign such endorsement in the name and on behalf of the City with his signature attested under seal by the City Clerk. (4) The Board of Education having tendered to the City a contract made by the Board of Education with LPS Associates, Architects having their place of business at 2200 Broadway, Paducah, Kentucky, under the terms of which contract said Archi- tects have been employed to prepare the plans and specifications for and to supervise _... . construction and reconstruction of the school buildings upon the sites of the Clark and Morgan Elementary Schools, hereinabove described, and such contract having been examined and found to be satisfactory as to form and substance , the City of Paducah , hereby approves and adopts said contract and agrees to the terms and conditions thereof , provided, however, all compensation payable to the Architects thereunder and all ex- penses to be reimbursed to them thereunder shall be paid to them by the City solely from the proceeds of the School Building Revenue Bonds and shall not be a liability of or pay- able from any other resources of the City of Paducah. Said contract of the Architects may be endorsed to show this approval and acceptance by the City, and the Mayor is hereby authorized to sign such endorsement in the name and on behalf of the City with his signature attested under seal by the City Clerk. (5) The Board of Education having tendered to the City a fiscal agency contract made by the Board of Education with J .J . B . Hilliard , W . L . Lyons , Inc . , a licensed Municipal Bond Dealer having offices in Louisville and Paducah, Kentucky, for its services and expenses in providing financial advice concerning the amount. of the bond issue, the details thereof , the offering thereof at public sale , the preparation of a proper "Official Statement" to be furnished to prospective bidders providing to them all information neces- sary and pertinent to a proper evaluation of the bonds , and employing at the Fiscal Agent's expense recognized Bond Counsel to prepare ordinances , resolutions , deeds and other instruments involved, said fiscal agency contract is hereby approved and adopted by the City , provided , however , that the compensation of the Fiscal Agent thereunder shall be payable solely from the proceeds of the School Building Revenue Bonds, when actually received by the City, and shall not constitute a liability of the City payable from any other resources of the City whatsoever . Said contract of the Fiscal Agent may be en- dorsed to show this approval and acceptance by the City, and the Mayor is hereby 9 authorized to sign such endorsement in the name and on behalf of the City with his signature attested under seal by the City Clerk (6) `The Board of Education having, tendered to the. City :proper and satis- factory evidence that it ,has caused advertisements to be published in "its own name - soliciting the submission of -bids for they construction of the three separate projects for - the construction and reconstruction of school buildings upon -the sites herein'. described , - - - in all respects in accordance- with the manner in which the City- itself is required by law to advertise in'-that" respect, the= Board of :Commissioners' of the -City hereby approves and " accepts such evid~erice and hereby- adopts and ratifies : the ` Boards s solicitation of :~ con-' ° _ - struction bids thereunder; and the City hereby agr-ees that as a matter -of convenience _" and in order to save time the Board' of .Education may award construction "contracts on the' basis thereof,' to the -respective bidders determined by the Board of Education to be the respective lowest and hest bi-d.~ders : The Board= of -Education -may "tender' to the Board of Commissioners the constru~etion contracts which it awards on the basis of'-such advertised - competitive- -lettings ; and--the Board of ~ Commissioners agrees -that ithe City ~ will " at "that time adopt and ratify, such construction -contracts , and each° of .them. ; ascontracts" of the City, but for payment. ~of the amounts dues thereunder from time to time soiely -from the proceeds of School Building Revenue Bonds to be issued by the City, and not from any other resources of the. City :whatsoever : - ~ _ . The respective construction contracts may be written in the first instance in the name of the City of Paducah, whereupon the same shall be signed 'in the name and on behalf of the City by -the Mayor, "attested -under seal by the :City ;Clerk;- or such ;con- tracts may be'written'~in~~the-first-instance-in the"name of the Board of Education,'in. which. event they maybe endorsed to show- adoption and ratification thereof by tYieCity, in which"-event the endorsement -hail be executed ~ in ~: the name- and- on~ behalf .of-the City by the Mayor,. attested under seal by the "City Clerk:: In -either- event= an exec-uted copy of each contraet~,- together with evidence of the proper solicitation- of construction bids by advertising a5 ~ hererrrabove~ rec>ted -sha1L be" filed :in the office of -the City -Clerk and preserved as public records of the City" `as -m the case of any.:other. contracts -execute-d by the -City . ~ _ _ _ _ SECTIQN~ 3. When all. of the =actions and events ~ described in paragraphs ~ (1) , (2) and (6) , of Seeti~n 2 of thi-s =Resolution shall -have' been. performed and accomplished"; the Board of Commissioners hereby agrees Ghat it will adopt "a:n~ Ordinance. authorizing the issuance of,School Building .Revenue Bonds'~according"to the- authority::of KRS 162;-120 to 162.290, inclusive, in such aggregate principal amount as the Board ~of Education may request in order to -provide for the payment of ~ all costs: 'of" the ~ rthree school buiiding~ con- struction -and reconstruction projects .upon the ~ sites heren~above :described . Said,bonds shall be designated- "G;ity; of Paducah, School ~ Building; Revenue: Bonds',Series r•of Fell- ruary 1, 1979", shall be dated February 1, 1979, shall consist of negotiable coupons bonds 10 in the denomination of $5, 000 each, and shall bear interest at such rate or rates as may be established by the Board of Commissioners in "a resolufon to .be adopted upon the occasion o the .advertised puY~iic sale o said bonds as' hereinafter provided, and upon the basis of competition :among the: bdrders~ as hereinafter=provided, such interest to the - respective maturity dates of the lsonds to bey evidenced' by appurtenant interest coupons payable semannualYy~ ~on: February . 1 and August ~1~ of ~-each year ,= =coram~encing August 1, 1979. Said~~ bonds shall- be caused to mature serially in~warious:-amounts =on'~February 1 of each year, commencing February 1; '1'98'0', :accor`ding to a maturity` schedule' which'~shall ` be set forth- in the Ordinance authorizing issuance of °the bond=s; provided , ~ however , the City shall reserve the option to call and redeem t~Yie' bonds- of said series maturing on and after February°~1;~ 1990;- or such°- of ahem as: -may b`e °outstanding from time to time;' prior to maturity,', on any interest `payment date :on ors after Febr-nary 1, ~ 1989`; as a whole or from time toy `time in part in the- inverse order of their °-matur~.ty ~ (lens than -a11 of a"single maturity to' be ` selected` by lot) , and ~ in the event. any `of said bonds are °to= be redeemed, it shall be.agreed -that there -shall be'=paid to the holder' of each bond upon surrender thereof a-:premium, n~ additiom to principal 'and to the interest_ then accrued" and evidenced by interest- coupans~; such premiurn~ being stated ° as a percent' of the principal amount, as follows: - - , 3$ if redeemed on or after February 1, 1989, and on or prior'to February 1, 1992; 2% if redeemed after February 1, 1992, and on or prior to February 1, 19.95;..: and - _ _ . 1% if redeemed after'February 1, 1995, and prior to final maturity:: Notice of such redemption, identifying the bonds to be redeemed,' sha1T be ' given by publication, at least once, not less than thirty (30) days prior to' the" redemption date, in a~ neyrrspaper of general circulation throughout Kentucky; and in the case of any bonds to :be redeemed which may at `such time be registered as to principal- in the manner herein provided, by sending a 'copy of such notice by registered mail or "certified mail to the then registered holder of each bond to be redeemed;' provided, however, that any failure to ~ give notice by mail or any defect therein' sha1T '"not affect the validity and effectiveness of the redemption proceedings if notice by publication is given in proper and timely fashion as set out above; ° and if all bonds to be redeemed are then registered, and notice by registered or- certified mail is duly given, then publication of the redemption notice need not be made . Bonds so called `for 'redemption', and for the payment of which" funds are duly' provided. in accordance with any such notice shall"° cease to bear interest after the designated redemption date - SECTION-4. Both. principal: of and 'interest. on said bonds shall be payable in ` lawful money "of the United States of Amerie"a at the principal office of The Peoples First National Bank & Trust' Company , in the City 'of Paducah , Kentucky a leiik insured by 11 Federal 'Deposit Insurance Corporation ('Hereinafter referred to as "FDIC") . Each of said bonds shall be "executed- on" behalf `off `the City by -the 'reproduced facsimile"'of the' sgna`ttiire of the'"Mayor, 'sea`led with the' reproduced- facsimile of-the seal of the City and attested by the reproduced facsimile of the signature `of tYie 'City Clerk; and additionally either:--the~ Mayor or the City 'Clerk" sHa11 validate 'each bond- by manual signature. "'` The interest coupons attached to ~ said bonds shah be executed -with the repro- duced facsimile signatures of "the -'Mayor' 'and-" the"TCity Glerk. = If zany of the officers" whose signatures' ar facsimile signatures appear "on the bonds or` coupons shall cease to be `sticH, officer"s before the= delivery of the bonds; the - .. signatures and"facsimiles" shall; nevertheless; be valid for all purposes"; the same as-if" the officers 'had remained iri office' until deliver~t. ` ~ - - - --- "=" Any bond' ssuable' hereunder may be' signed", ' sealed or 'aftes#ed on behalf of "the City (by facsni'le signature;-" or' ma.nua'1 signature, as herein-provided) ~y% any 'person who at the' "acttiai -date of `the'~executibn of such-bond i`s the -proffer" officer"=of fhe- City` of Paducah, notwithstandiCrig that at'the date'of -such action such person--shall riot h~a~re'beeri such officer. All~of -saYd- band-s `together ~n-ith interest thereon; and any additional-bonfls~ ranking on a parity therewith which may be f ssued -and' outstanding from' time to 'tune under the: restrictions and` ~ conditions hereinafter' set forth , 'sfiall not constitute ~"an in= " debtedness of the pity of Paducah; -Kentucky;'-but sKall~~be secured by and s'IaIl be pay- able solely out of the "City of Paducah School Building Revenue Bond and Interest .., Redemption Fund -Series" of "February 1,- 1979" , Hereinafter created, and the -revenues from the use and occupancy of the said school buildingspledged to "said fund . - SECTION 5. Each of said bonds shall ~be fully negotiable, provided that upon presentation of any of said bonds" of the office of the City Treasurer, such bonds may be registered as to principal in the name of~ the holder thereof on books which shall be kept for that purpose, which r'egistratiori- shall be noted "on the back of the bonds so registered,` and thereafter the principal of the bonds so registered shall be payable only to the registered holder , his legal representative or assigns . Bonds so registered may be transferred to ono"ther'- -similarly registered holder upon presentation ~to the said " Treasurer with a legal assignment duly acknowledged; or proved; and may be restored to negotiability by being in- Iike "manner "registered as before. ~ ~ Registration of any of said bonds as to rznci al -shall not "affect -the ' ne otiabili ` of -the ~a urtenant cou oris , "and s P P g - t3' PP P uch coupons shall continue -to be transferable by "delivery . 'Each and every successive holder .. ,. .. of any or all of said bonds during- such time "as 'they "are payable tobearer , and such - holder of each of"the coupons ~appurteriant --(hereto ; ~ ~ shall be concl-usively "presumed to forego . ~ -. and renounce his or their equities ~in? favor of""'subsequent holders for =value without notice, and to agree' that said'-bonds -while" so payable to bearer ; and each of the coupons appurte- nant thereto, may be negotiated'- and' transferred ~by delivery by any person having pos- session thereof, howsoever such possession may have been acquired, and that any holder 12 who shall have taken any of said bonds or any of the coupons from any person for value and without notice thereby has acquired absolute.-title .thereto; free from any defenses enforceable. against any prior holder: and free from all equities and claims of ownership of any such prior holder . - - - - ~ - ~ - SECTION- 6. --Upon the receipt by the City of evidence satisfactory toit of the loss., theft , destruction or -mutilation of any outstanding- bond or bonds issued under the bond-authorizing Ordinance , and of -indemnity satisfactory to the City-; .rand- upon= surrender - and cancellation. of . such bond ~ or bonds if~-mutilated; ~ the City may execute and there may be delivered; ,a new bond or bonds of like tenor, maturity, interest rate and numbering in lieu ~ of such .lost, stolen, destroyed or mutilated bond or bonds; and each such new- bond shall be entitled to the same security and source of payment as the bond which it replace Each such .new bond may bear such endorsement, if any', as may. be- deemed necessary to :evidence -that pit has ,been issued- in lieu of a last;. stolen,destroyed or mutilated bond .= The -City may require the payment of the expenses -,incurred : by the City in connection therewith: In the event-.such destroyed or mutilated bonds,; or any of them, shall be-due°-and payable- within ~a reasonabie~time after notice to° the- City of such destruction or mutilation, the Gity ;may, by agreement with 'the claimant,. wi"th like security provisions: to; protect the City from ,loss,. enter into a written. agreement to pay the bonds and coupons when due; -instead- of causing a-bond or bonds to be manufactur-ed and delivered in~ lieu thereof . - - ` . SECTION 7. That said bands; and coupons and provisions for registration shall be in substantially. the .following: forms.:.- - . - -> (FORM- OF BOND-) , .. UNITED STATES OF AMERICA COMMONWEALTH OF KENTUCKY CITY OF PADUCAH - SCHOOL BUILDING REVENUE BOND SERIES. OF FEBRUARY- 1, 197.9 Number.. - - $5 , 000.00 KNOW ALL. MEN -BY THESE.. PRES-ENTS: - That the City,,.-of Paducah, Kentucky, acting by and through its Board of Commissioners. as its .governing body, for value-.received, .hereby promises- to pay to the bearer, or if this- bond. be--registered to -the registered holder hereof, soleiy -from the special fund herein. referred. to, the principal sum. of Five Thousand Dollars ($5-,000) on the 1st ,day of February,. and ~.n like manner- from said special fund.- to pay interest on said sum from the -date: hereof--until payment of, principal at the .rate of per cent _~ ~ $) :per,. annum., semiannually- on the-,1st days of Feb= ruary and AugL~ t in -each year ; commencing August 1, 1979 , except as the provisions hereinafter set forth with respect to prior redemption, may- be and become applicable hereto, such interest as may accrue on and prior to maturity. hereof to be paid only upon 13 presentation and surrender of the annexed interest coupons as the same severally mature, both principal and interest being payable in lawful money of the United States of America at the principal office of The Peoples First National Bank & Trust Company , in the City of Paducah , Kentucky This bond is one of an authorized series of bonds numbered consecutively from 1 to ,inclusive, issued by said City pursuant to an Ordinance duly adopted by its Board of Commissioners for the purpose of paying the costs of construction of new school buildings and the substantial reconstruction of existing school buildings upon the sites of Paducah Tilghman Senior High School , 'and of` Clark and Morgan Elementary Schools (hereinafter referred to as the "school buildings") , withnecessary "appurtenances, in the Paducah School District, in said City, as"more fully -set forth and identified in said Qrdinance , under and in full compliance with the Constitution and Statutes of the Common- wealth of Kentucky, including among others, Sections 162.120 to 162.29D, inclusive, of the Kenttucky Revised Statutes, now in full force and effect . Said City hereby reserves the right and option to call and redeem the bonds of said series maturing on and after February 1, 1990 , as may from time to time be out- standing, prior to maturity, on any interest payment date on or after February 1, 1989, as a whole, or from time to time in part- in the inverse order of their maturity °(less than all of a single maturity to be selected by lot) , and in the event any of said -bonds are to be redeemed it is agreed that there shall be paid to ~ the holder of each such bond ; upon _ .. . _ : ,... surrender thereof', a premium in addition to principal and to the interest then accrued and evidenced by interest coupons, in a sum which is expressed as a percentage of principal, as follows: 3% if redeemed on or after February '1, February 1, ,.1992; 1989 , and on or prior to 2 a if redeemed after February 1, 1992 , and on or prior to February ' 1, 1985; and 10 if redeemed after February 1, 1995 , and prior to final maturity .. Notice of such,. redemption, identifying the bonds to be redeemed., shall. be given by publication at least one time, not less than thirty (30) days prior. to the, redemption date, in a newspaper of general circulation throughout Kentucky; ,and by registered or certified mail to the then holder of each registered bond to be ,redeemed; ,provided , however., that any failure to give notice by mail or .any defect. therein shall, not affect the validity and effectiveness of the redemption proceedings if notice by ,publication .is given in proper and timely fashion as set out above; and if all of the bonds to_ be, redeemed are then , registered, and notice by .registered or certified mail is duly given, then publication of the notice of redemption need not be made.... All such bonds thus called. for. redemption and for the retirement of which funds are duly provided shall, cease to bear interest on such redemption date . 14 This bond and the series of which it forms a part and any additional bonds r~nkin~ on ~ parity ther~With ~hith may bo i~~uod end out~t~ndin~r from timo to time under the restrictions and conditions. set forth in said Ordinance do not constitute an indebtedness of the City of Paducah, Kentucky, and are not payable from its general funds or taxes , but are payable only froze and secured by a first lien upon the gross income and revenues to. be derived from leasing the school buildings and appurtenant facilities , the amount of which revenues shall be sufficient to pay the principal of and interest on said bonds .as and when the same become due and payable, and which shall be set aside as., .a special fund ,pledged for that purpose and identified as the "City of Paducah School Building Revenue.. Bond and Interest .Redemption Fund -Series of February 1, 1979" . Said City covenants that it will fix and charge such rates and will account for income and revenues from said school buildings and appurtenant facilities, sufficient. to pay ,promptly the principal of and interest on all bonds from time to time outstanding, which, by their terms, are payable from said special fund. A statutory mortgage lien which is hereby ,recognized as val-id and binding on the said school buildings and appurtenant facilities , and upon. any additions , extensions and improvements thereto , is created and granted by KRS 162.200 in favor of the holder or holders of this bond and the. series of which it forms a part and in favor of the holder or holders of coupons ,appurtenant to said bonds , -and said school buildings and any appurtenant facilities, additions, extensions and improvements thereto shall remain subject to said statutory mortgage lien until the payment in .full of the principal of and interest on this bond and the series of which ix forms a part and until payment in full of any additional bonds ranking on a basis of parity therewith which may be issued upon the conditions and subject to the restrictions. set forth in said Ordinance; provided, however , that said statutory mortgage lien is and shall be restricted in its application to the school buildings and appurtenant facilities, the costs of the construction or recon- struction of which are defrayed from the proceeds of the bonds issued or permitted to be issued under the provisions of the abovementioned Ordinance (including parity bonds, aforesaid) , together with appurtenances , equipment therein, those portions of the school sites physically occupied thereby, and such easements and rights-of-way for ingress, egress and the rendering of services thereto as may be necessary for the proper use and maintenance of the same; the right being hereby reserved to erect or construct upon un- occupied portions of the school sites described in said Ordinance other structures and improvements for school purposes free and clear of said statutory mortgage lien , even though the same are connected by using as party walls one or more walls of structures which are subject to said mortgage lien, providing the same are capable of use as separate entities in themselves , have their own outside entrances , no part of the costs of said additional structures and improvements are paid from the proceeds of the bonds of the series of which this bond is one, and provided the construction thereof shall not 15 interfere with ingress , egress and the rendering of services to the herein mentioned school buildings. Reference is hereby made to said ordinance whereunder the City reserves the right under specified circumstances (a) to release and convey school sites aild buildings upon psyzaent of specified sums to be used to redeem bonds , and (b) to release or convey certain easements , rights-of-way, etc . , free and clear of said statutory mortgage lien . This bond is exempt from taxation in the Commonwealth of Kentucky, and by the terms of the law pursuant to which it has been issued, shall be fully negotiable, but it may be registered as to principal in the name of the holder on the books for that purpose in the office of the Treasurer of the City of Paducah , Kentucky , such registration to be noted on the back hereof by such Treasurer , after which the principal of this bond shall be payable only to the registered holder , his legal representatives or assigns , and no transfer or negotiation hereof shall thereafter be valid unless made by legal assign- ment of the registered holder, duly acknowledged or proved and duly noted on said books and similarly noted on the back hereof, but this bond may be discharged from regis- tration and restored to negotiability by being transferred to bearer, after which it shall again be restored to negotiability and may be transferred by delivery , but it may again be registered as before . The registration of this bond as to principal shall not restrain the negotiability of the coupons appurtenant hereto by delivery merely. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required: to exist, happen and be performed precedent to and in the issuance of this bond have existed, have happened and have been performed in due time, form and' manner as required by law; and that the amount of this bond , together with all other obligations of said City , does not exceed any limit prescribed by the Constitution of the Commonwealth of Kentucky-, that this, bond; including interest hereon, is not an indebted- ness of said City or payable from taxes , but is payable only from revenues derived by said City from leasing the school buildings herein referred to , and that such revenues of said school buildings have been pledged to and will be set aside into the said identified special fund by~ said City for the prompt payment of the principal of and interest on all bonds which by their terms and by the terms of said Ordinance are made payable from said special fund . IN WITNESS WHEREOF, the City of Paducah, Kentucky, acting by and through its Board of Commissioners, has caused this bond to be signed with the reproduced fac- simile signatures of the Mayor and the City Clerk and sealed with the reproduced facsimile of the corporate seal of said City, has additionally caused this bond to be executed by the validating manual signature of either the Mayor or the City Clerk , and has caused the coupons hereto attached to be executed with the authorized facsimile signatures of the Mayor and City Clerk, and this bond to be dated the 1st day of February, 1979. 16 (FACSIMILE OF SEAL) ' ATTEST: CITY OF PADUCAH , KENTUCi~Y - By (Facsimile Signature.) ' Mayor Manual signature of the•'Mayor> =or - !, City Clerk (Facsimile Signature) - ,~ .. - - (FORM OF COUPON) * (Unless the bond to which this coupon is attached • shall have` been called for' prior redemption) ~~ "~ No. $ On the 1st day of ,the City of Paducah, Kentucky, will pay to bearer the amount shown hereon in lawful money of the United States of America out of its "City of Paducah School Building Revenue Bond and Interest Redemption Fund -Series of February 1, 1979", at the principal office of The Peoples ', First National Bank & Trust Company, in Paducah, Kentucky, as provided in and for interest then due on its "City of Paducah School Building Revenue Bond, Series of February 1, 1979", dated February 1, 1979, No. CITY OF PADUCAH , KENTUCKY By ~ -(Facsimile- Signature) Mayor ATTEST: _ (Facsimile Signature) City -Clerk * (This redeinp~tionlegend to° appear only on couporis~ maturing on and. after August 1, 1989. ) ~. - - (FORM OF REGISTRATION) ,' . , -- Date of In Whose Name Signature of Re istration '~ '. ' . -~ Re _ •ty. ,Treasurer . :. _~_ _- g gzstered Ci SECTION 8. That upon said City issuing bonds under the Ordinance the school buildings added to, constructed and reconstructed by said City through application of the bond proceeds and located on the sites hereinabove described shall, for the purposes of this Resolution and the Ordinance, be leased, rented and occupied as revenue-producing undertakings for an initial period commencing February 1, 1979 , and ending the last day of January, 1980, and thereafter on a fiscal year basis commencing as of February 1 of each year and ending on each succeeding last day of January, and the income and re- 17 venues from such lease, rental and occupancy including specifically the gross income and revenues from the Contract of Lease and Rent with the Board of Education of Paducah, Kentucky , shall be set: aside and held apart from all other funds of said City and sli~all be apportioned, •as-fallow~s:- - 1. There shall be and- there is hereby created an account, to be known as the' "City of" Paducah :School- Building Revenue- Bond and In"terest Redemption Fund -- Series of February 1; ; •1979" ~ (hereinafter re€erred to ~as ~ the . "Bond Fund'r) , into which there ~ shafil be paid and set aside all or such portion of the income" and revenues from said `school building properties as will be sufficient_to pay the ~iriterest 'on and principal°+of the bonds - hereby authorized as the-same are scheduled to become due. Ail sitrn"s" received` as accrued interest in the issuance of the bonds shall be deposited in the Bond Fund and applied toward the payment of the first interest coupons next thereafter becoming "due . There- hall -also- be dep,osit~ed ; in the Bond'- Fund such - additional-' amount of the -bond. proceeds as (together,.with the accrued interest deposited therein) equals interest to become° dire on said bonds on-August :1, -1979. It is :hereby determined that. the amount to ~b:e'~ et aside from accr-ued interest -from bond proceeds , and- annually from the gross income- and revenues , as aforesaid, and deposited into said Bond Fund during each fiscal period and year for the pur-pose of -paying. the- interest on-and principal , of tYie ; bonds shall- be as set forth in the Bond-authorizing :Ordinance; and-shall -be not less than° such annual amounts as~~wily be" sufficient to pay the bonds and interest -coupons -as- they respeetiVeiy. become due: The annual amounts may be computed -upon the assumption.that when the bonds :authorized by the Ordinance are publicly sold , -the interest rate =applicable ~.to all of- the"" bonds will be established at • six and -two-tenths per cent (6: 2 a)~ per annum; and _-each :annual • amount set forth in the Ordinance shall: be chef sum' required to pay the interest` coupons maturing in the respective fiscal year -and." on ~ebrua-ry ~-1 ~ in .tYte_ -next ensuing` _fiscal year; ~. together with the bonds maturing on February 1 in said next ensuing fiscal -.yeat^; °based upon -.said assumed interest- coupon. rate : - In~ the, "event- •that the interest rate :or~ mates: applicable to said bonds ,shall ~be:~established otherwise than as so assumed, or -if less than the. total ~~ authorized: amount... of bonds- be sold,; the respective annual payments into :the.. Bond Fund as set forth: in the Ordinance shall ~automaticaily be~: adjusted to sucli sums as will =ac- complish the .purposes set forth in this -paragraph-. ~ _ _ - - ,The :amount ~by which -any such- payment-"into said. Bond ~FUnd~ im:.any fiscal=year may exceed the aggregate arnourit of interest on :and~prncipal~ of: the bonds shall be~ Yield therein as,,a r-eserve for subsequent;-annual=interest--and-. principal :requirements; 'provided, however, that "any balances in >said Fund in-excess of the .interest; and principal-'`~requYre= ments for the current fiscal year and payments therefrom required to be made on the • next succeeding.February :-~~-and ;August 1 -shall be- used fio:.redeem ands retire `bonds in advance of maturity; and•provided. further-, that, no .,further payments•need,be_~made~into~~sad.~~Bond 18 Fund whenever and so long as the amount then held in such Fund is equal to the entire amount required to accomplish retirement of all of the bonds' then remaining outstanding and to pay allr:interest eta.accrue thereon, and including the amount of any premium in- cident to redemption, in the event it is desired that any of said outstanding bonds be redeemed prior- to 'atated" maturities as -in said' bonds provided: " =If;/'in any year; the` City shall; for any reason; fail"° to pay' into said Bond Fund the ~ttil' amount set. forth in theBond=authorizing Ordiria~nce, then an amount equivalent to such deficiency Sha1T be set apart sand paid into said' Bond Fund from the first availa7~le -gross income and revenues- of 'said- school building properties- for the following -year ~ or years and the same shall` be ` in addition. to the ;amount otherwise herein provided to be so set apart: and paid- during---such "succeeding year or years . All moneys held: in .said: -Bond Fund as aforesaid shall be deposited in ~T-he Peo ~ les First National Bank & Trust- Com an p p y, in~Paducah, Kentucky; which is a member of the Federal Deposit Insurance 'Corporation; and to ~ the extent tYiat'the same shall' cause ' deposits"of the City in said bank to exceed the amount insured by Federal Deposit Insurance Corporation, the same shall be ~-continuously secured by a valid pledge of'bonds or notes of the United States -Government having an equivalent market value; or shall, at the direction of the Board of Commissioners' of the City of -Paducah; Kentucky , b'e in- vested, . subject to they arbitrage covenants set forth 'in Section '18 hereof (a) in bills;=notes or bonds issued 'by the United'° States Treasury Department`; or (b) in certificates of time deposit of banks -which-are rriernbers of and` insured by Federal Deposit Insurance _ ,. Corporation .(FDIC) ; "and if :any such`:certificate of time deposit' shall be in an amount exceeding the" amount insured by FDIC, the excess shall be secured by a valid pledge of securities issued or fully. guaranteed as `toy'principal "and interest by the- United States Government; :which securities shall be held, actually or constructively, in the custody .. . o anotherFDIC' insured bank. The annual payments. so required in each fiscal year° shall be made in sem- annual installments, one on `or before .the 1st day of""July; "in a sum at' least equal to the interest coupons maturing° on the -ensuing August 1 in such year , and the balance on or before the next January 1 in such fiscal year; the frst'sucYi rental payment to be trade on or before January 1, 1980, inasmuch as provision is Herein made fo"r the payment of interest becoming-.due on .August I, 1979, from the proceeds of the bonds: Said Fund as next hereinbefore provided shall be used solely and only and is hereby pledged for the purpose of paying: interest, on, redemption premiums (if any) , and principal of the bonds which in the Ordinance will be authorized and per-mitted` to be issued, as the'satne be- - - come-. ue. - 2. Out ;of the balance of: the revenue and- income remaining `after: the aforesaid payments. into- the- Bond Fund, there` shall' be set aside into a' Maintenance Fund whatever 19 amount may be necessary and is not otherwise provided for the proper maintenance of said school building properties and to continuously insure said school build'in'gs and appurtenances against loss or damage by fire, 'lightning, windstorm'; or "other='calamity; `in the amount "of its full~~insurable value; - or, ~i*n lieu tYiereof ; the lessee" "of" said ` school build-" ing, if a lease thereof is then in force ,~ °may "pay the costs of ~fnaitenaiice' arr'd of providing and maintainiri~g 'such insurance . Such insurance shall' be for the use 'arid Tienefit of the holder or holders of °any bond ` or • bonds; it being' the 'intention of the -City" to =provide that insurance sha11•~be carried" which: s~hall~ be at all times equal" to 'at least- the full =nsii"table value of said school buildings . ~ ~ `~ ~ "" SEC"TION" 9: ~r6aid City hereby covenants anti agrees -with the holder or holders of the bonds which in said° Ordinance will~~lie `-authorized- and' permitted to" be 'issued, and each of -them , that it will faithfully and punctually perform all"= ditties wi"th` reference= to said scho-oI' buildi~rig ~propertie"s~: requirezi by ~ th~~`=Goristitutiori 'and 'laws of the Commonwealth of Kentucky, znclurling~ the making of reasonable "and s'~fficenf rentals for set--vices -'rendered" thereby, and will segregate-said revenues ands income andmake applcation'to=the re- spective funds created by this Resolution. `Tt "is 'they declared intention of the City to continue ` ~to lease said school building propertes~'to said' Board~~ of Education fore an extended period of yearn, as~ to be provided in ~a certain Resolution adopted by'"the Board` =of~ ` ' Education of rsaidScpool-District,. which Resolution and the 'proposed `Contract of"'pease and Rent: to be ~ set forth therein shall -be submitted to ~ this ~ Board of Commissioners of "said City, as~hereinaboYe-provided, and~~sha13, in~sad Bond=authorizing Ordinance, be" accepted~and ~ made_ a .part of the" City's records° and -tlie Mayor 'shall `be authorized td execute and acknowledge said "Contract of Lease~~ and ~'R'ent'r for-and on behalf -of said `Gity, and the City Cier~k snail be ~authorize"d-to- attest~~th°e same-and"affix the corporate =seal of the City thereto . The City further binds and obligates itself not to sell ~ mbr-tgate ; ` or' ` in any manner encumber nr -.-dzspose of said school'` build'in.gs ~ and appurtenant f~:citities , including additions and extensions , and the revenues derived therefrom 'except as specifically permitte:d~ and. provided herein, ~uritii~ all the bonds issued under the Bond- authorizing Ordinance "shall have•~ been ~~paid in full, =as~ toboth "principal and `interest . .- The City further covenants-and~'agre~es~^with the -holder°rof said- bonds =to maintain =said school buildings ->arid appurtenant facilities ins°good~ condition and to charge and "callecf ' ' such rents for services-rendered thereby so~ that the gross revenues'"will'=be sufficient - at all times to •provi~de~-forr the payment of" the interest on a'nd"'the principal ~~of the bonds which in said ~Orc3:inance~~~will~`be~authorized andpermitted to~ be issued; as and° when they mature, and to •pay the- maintenance -cost thereof, including" the cos€ of insurance, asp" hereinabo~re~ proiided `~or to 'cause` anylessee' ~of said pr" opertes' to ~ pay all such ~~costs'. ' Said "Contract of Lease and Rent" when tendere'd-to the City"by=said Board of Education and accepted and approved, shall reserve to said Board of Education the 20 right and option at any time on or after February 1, 1989; to prepay -rent. and thereby purchase and acquire the said school buildings and: appurtenances , • together with the sites thereof,. free and clear of the-statutory mortgage-lien which is provided by KRS 162.200 and herein recognized, upon payment to the City of a sum sufficient to redeem and retire all the bonds then outstanding,. in accordance with their` terms. - It has further been agreed that in said.. "Contr:act of Lease and Rent" it `will be ' provided that .said Board of Education q~f Paducah; Kentucky, shall have the right and option at any time=on-or after February 1, 1989; and from time ~tb time:,- to prepay rent - ~~ and thereby purchase and acquire any one or more of the said school buildings ,and appurtenances, together with the portions of rthe site or sites physically occupied thereby, and adequate easements for ingress-; egress,. ':and the rendering. of necessary services thereto , and ;obtain - a reeonveyance thereof from ~ said City free and clear of the statutory mortgage lien which is provided., by KRS 162:200` as a part of the security for the School Building Revenue -Bonds which said -City is -about to issue , upori~~ the followin=g conditions and by paging, to the City the following respective option prices in cash: - ~~OPTION °PRICES • Paducah Tilghman: Senior High School- `S•ite: A sum equal to the nearest.-multiple. of $5, 000.00 -at . or immediately .above a sum computed. by multiplying the principal amount of the maximum number of School Building Revenue Bonds issued by said City for' the financing of the- over-all construction program affecting aTl of the school buildings herein described by 50%; such percentage' :being an agreed estimate of the proportion of the total expenditure which will be made -from bond proceeds upon the properties herein described as the Paducah Tilghman Senior -High School Site Clarke Elementary School Site:- A sum, similarly computed, and: using as the percentage factor.: ~ 25 0. - Morgan Elementary School-,Site: A~asurn similarly computed; and using as the percentage factor: 25%. - REDUCTION OF OPTION PRICES AS BONDS. A1~E RETIRED In the event any of the above-mentioned options shall be exercised 'by said Board of Education at a-time when a. portion-i~ of said School Building Revenue Bonds issued by the -City have been paid by- the- City from the. `annual :rentals received by it from said... Boa-rd of Education; the app cable option prices shall be reduced by an amount which shall be =computed by -applying the respective percentage -factors- to the-' aggregate principal amount .of all bonds. so paid -and retired:, It is- expressly understood and agreed, however, that the exercising by said Board of Education=~ of any of its options to purchase and acquire -any of the school sites shall not reduce .the option prices other- wise applicable to the- remaining sites: - ,~ - 21 _ CREDIT .FOR,,. COLLECTED INSURANCE. PROCEEDS : IN THE EVENT OF DAMAGE OR DESTRUCTION The parties recognize the possibility that any of the school buildings herein referred to may be damaged or destroyed by fire or other natural hazards, resulting in the collection of insurance proceeds which are inadequate to provide all of the costs ,. ,,, _ ,, . , of repairing or reconstructing such premises so that the same will be acceptable for use and occupancy by said Board of Education for school purposes , and it is agreed that this is one of the controlling reasons for establishing oprion rights in favor of said Board of ..,. ,.,r .._..... ~ ,; _ Education. In the event of such circumstances, it is a eed that the o tion rice appli- cable to the property^in question shall first be computed and adjusted as hereinbefore set forth and shall then ~ be credited with the amount of the insurance proceeds actually collected as a result Hof such damages or destruction; and suchcollected insurance pro- ceeds shall immediately be deposited by the City in its Bond and Interest Redemption Fund . `REDEMPTION OF 'BONDS WHEN OPTION IS EXERCISED; .ADJUSTMENT,. OF OP_T,ION_ _PRICE__FOR, REDEMPTION. PRE1ViIITM , In. the .event .said Board of Education shall , .from time, to time exercise .any of its.. purchase options as herein,. set ,forth, ,it is .agreed, that the .City. shall, apply. the funds: . received from the._Board_ of Education and/or,.,insurance.proteeds to the, redemption of an equal principal amount of the__City!s said .School ,Building Revenue, Bonds then outstanding. f. - - Said Board of Education fully. ,understands, that .the .City's said School ,Building ,Revenue ;~~: Bonds will be subject , to, redemption only _ by, ,.the payment of a premium over and. above the r :, . _ principal amount of .such bonds , _ said ,premium .being, 3 0 of the, principal amount of each__bond ,~ or a eriod includin ,and. immedi „ p '. _ ' _ g ately following February. 1,. 1989 ,. and gradually di- _ , minishing or successive periods the , ' ._ ;_,' - reafter. Accordingly, and. in ,or-der_to .enable.. the . . said City to ,redeem and retire bonds as herein provided,, said Board of- Education agrees that in the event rit exercises any of said .options,, ., it will. pay to the City,., in_ addition to . . the specified option price as ;hereinabove. set ,forth ,_ a ,sum ,equal to _ the pr-emium which the Ci will be obh ed to a in ,order _to ,redeem, the _ prescribed portion, of its outstanding , tY g . P Y , School Building, Revenue. Bonds,- and. also ,the .cost of publishing the, redemption notice.. ADJUSTMENT. OF FU,TURE_,RENTALS. IF OPTION IS EXER~ISEl?;_. ~, . , _; It is understood and _ agreed..that_, the, annual. rentals herein. provided ,are for .the : . use and occupant b said Board of Education of all of the school buildings..eonsxructed, Y Y , . :. reconstructed and financed. ,through the., issuance of .said School .Building Revenue Bonds;... and it is therefore agreed., that_.if and when ,.said. Board of _ Education exercises any. of its _, _ .. options to purchase .and .acquire a property or properties, as herein set .forth , , .there _ should , :. be an adjustment as to the amount„ .of .rentals.„ applicable to ;future. years whenr ;said Board: ,. of Education will, not be using, and., occupying, the premises, so _ acquired ,. under.. the. terms of _,. the lease . In this connection , the parties ,agree ,, ., as follows: (a) There shall be no reduction in ,the rentals specified for the fiscal year in which an option is exercised. 22 (b) For all fiscal years after the fiscal year in which .any of such options may be exercised, the annual rentals payable by said Board. of Education_to the City, as herein set forth, may be reduced by .agreement of the parties, but not below such amount as may be necessary,: in order to provide to the City from. such rental payments a.~sum ~suf-; ficient to pay the principal of_ and interest on its remaining outstanding School Building, Revenue onds as and when, the bonds and interest coupons _ severally.. become ,due.. SECTION. 10. That for the further. protection of the holders of the: bonds which in the Bond-authorizing Ordinance will be authorized _ ' _ _ , _ _ _ ' and permitted to be, issued, and the coupons appurtenant thereto., a statutory .mortgage lien upon. said school buildings and _ ~ _ ., t .. ~ ~, appurtenant facilities, and upon any .additions,. extensions. and.. improvements thereto, is granted and created by ^KR,S 162.200 , which said, statutory ,mortgage lien is hereby reco mzedr and declared to be valid and bindin u on the deliver o an b g . _ , .. _ _., _ _ . , .:. -., _,, , ~, . ~ _ g T P . ? . Y.. Y ,.. onds .authorized to be issued under the. provisions o ' f said. Ordinance ,, ,and said statutory, mortgage lien shall remain in full force and effect until payment in full of all~-bonds issued pursuant to said Ordinance, including parity bonds if, any be issued; provided, however, that said statutory mortgage lien is and shall be restricted in its application to the school buildings and appurtenant facilities ; the costs of construction and reconstruction of ,G and additions to , which are defrayed from `the proceeds of the bonds issued ~ or permitted to be issued ~ under the provisions of said 'Ordinance , together with appurtenances , equipment therein , those portions of the respective school sites physically occupied thereby, and such easements and right-of=way' fo'r' 'ingress, egress and the rendering of services thereto as may be necessary for the proper use and maintenance of the same; the right being hereby reserved to erect or construct upon unoccupied portions of the school sites herein described other structures'' and improvements for school purposes free and clear of said statutory mortgage lien, even though the same are connected by using as party walls one or more walls of structures which are subject to said statutory mortgage lien , providing the same ~ are capable of use as separate entities in themselves and have their own outside entrances, no part of the costs of said additional structures and improvements are paid from the proceeds of`such bonds, and providing there shall be no obstruction or interference with ingress, egress and the rendering of necessary services to the school buildings herein referred to . , The City reserves the right (at the request of" the Board) to release and/or convey, with or without consideration, free of the statutory mortgage lien herein created securing the bonds , such easements , rights-of-way , licenses or other rights over , upon , or beneath the surface of the land herein described as may reasonably be required~~ for roads, utilities, drainage or other public purposes, provided (a) no such release or con- veyances shall interfere with the ownership and efficient operation of the school buildings and appurtenances (and the actual land on which the same are located) , added to, con- structed or reconstructed from the proceeds of the bonds, (b) ingress to and egress from 23 such school buildings shall not thereby be impaired, and (c) there shall be no reduction of the rentals otherwise required under the aforementioned Contract of Lease and Rent be- tween the City and °tfie Board . Any holder of" said bonds or of any" 'of the coupons-; either at law or in equity , by suit , action, mandamus , or other proceedings , may enforce and compel the performance of all duties.. required by the Constitution and Statutes of the Commonwealth of Kentucky,. including the charging and collection of sufficient rents, the segregation of~revenues and. income, and `tYie application thereof, .and ..may, by 'such' action, compel the performance of all duties imposed in the operation of aY _ adequate school system as provided 'by law , but only insofar as the failure to perform such duties ~wouid 'or could affect the interests of any holder or holders of any bond or bonds. ` If there is any .default in the payment of the principal of or intere t on any of said bonds., then,:,upon the _ filing of suit by ariy. holder : of said bonds or of any of the coupons , any court:having jurisdiction ~ of the action . niay ~ ap"point a receiver ~to administer said school building properties on behalf of the City and/or the Board: of Education 'of Paducah., Kentucky; withpower to-'charge and collect rents sufficient to provide for the payment of any bonds or. obligations outstanding, and- for" the .payment of"the operating:-.: expenses , including insurance ;:1 and to apply the incomes and revenues.. in .conformity : here- with,: and in conformity with the provisions of ~ said laws of Kentucky aforesaid ., ~EC~TIOi~ rl. ~Bonds.~vvhich in the=Bond-authorizing "Ordinance are ~~authorized. or permitted to be issued and from time to time outstandri-g shall not be entitled to priority one over "the other in the application of the "revenues ~ of said school .building properties or with respect ao ~ the statutory mortgage ~ lien securing their payment, regardless of the time or times of -their issuance , ~ it: being the infenton that :there shall. be ~ no priority :among such bonds regardless .of the fact that--~they may-be. actually; issued and delivered at. different times: _ ;... , . ~; - .- _. .". __ .. _: ,, ~ ~- __ ~" SECTION 12 TA~hile any ~of ~ the bonds which in the Bond-authorizing Ordinance are authorized or permtted._to :be~~is-sued~ are "outstanding;:the City -shall not~ssue~~any~, additional bonds or :incur any other obligations 'payable from the :°revenues of "said. s:ch,ool buildings , unless the lien: and . security :of: sucYi bonds or other obligations on= the revenues _ and on- the said -school buildings is made : junior::and subordinate : in :all respects to :the ~ ~~~ lien and security~ofthe bands;:provided, however;_-"said.Gity hereby reserves the right and privilege ofissuing additional bond's from time to time; p~ayab~le ~from-the~:ncome ~ ~~ and revenues ~of said school buildings. and "ranking ion a parity: with the bonds authorized by the Ordinance,, but only~if and to'?the extent. the issuance of such additional parity bonds may be rieces :any to' pay "the• costs:, not otherwise available, of completing the additions, construction and~:reconstruction~ of -said school buildings. _and: appurtenant facilities- in accordance .with ~ .the plans.. and specifications which- are .initially completed , approved by the Superintendent of Public Instruction of Kentucky and by said Board of Education, and 24 filed in the office of the City Clerk; but before any such additional bonds ranking on a parity asaforesaid are essued, the essuance thereof shall-be approved by the- proper agents of the State Board for Elementary and Secondary Education, as required Eby law, _and a Supplemental -Contract of Lease and Rent:: shall have been entered into, whereunder ,the respective annual ~ rental -payments during "the efe . of such additional bonds are increased • by the-amount "of ,the anrnzal~ interest and" principal , requerements of -such additional -bonds , and the interest p~aymerrt. dates` for such: additional'?'bonds shall be F`ebruary~ 1< and August 1 of each year-;~° and the principal maturity dates.:"sha.ll~-be on February. 1...:Any. additions, extensions 'or improvements made to said school building properties -hall likewi-se--be subject to said statutory- mortgage lien provided' in Section-"10 Thereof : - = `: `- SECTION 13. So long as any of said bonds •are-", outstanding; the City shall keep proper books of records and ~ accounts '(separate- from all :other records and 'accounts) in which complete and correct entries sha11~ rbe made ~ of all - transactions• xelating to' said school building properties. The City well furnish on written request-s of .any~~holder of said. bonds , within-=thirty ~(30)~~ days. after the close of each ~ six monthsr fiscal period';. -complete operating and income- statements in reasonable detail covering such sex : months' period and, within sixty (60} days after-- the -close. of each~.fiscal year; -complete financial statements of said project in reasonable ~~detael ;covering such ~ fiscal year : - - SECTION= 14. If `any~-seetion; -paragraph, clause-or provision of this Resolution shall be held ~ invalid , the "invalidity- of-: such- sectean; paragraph y' caause . or provesion shall not affect -any of.{fhe remaineng provisions _: ~ -- . -~ - - : - -SECTION 15:'-~ The Mayor is "authorized -to execute .and to cause- to be published (a) in~the -Paducah: Sun-; -which- pis a daily newspaper published en~the--City .of-Paducah, Kentucky:; (b) in The Courier=Journal , -Louisville:; Kentucky ; a. newspaper of ~:gerieral cir= culation-throughout:.Kentucky; and (c) `in The Daily Bond Buyer, New York, New York, a financial newspaper or journal of nationwide circulation among bond buyers , an appropriate form of "Notice o~ Sale of -".Bonds"; 'soliciting sealed, competitive -bids for_.the purchase of all the bonds which "in the ~ Bond--authorizing Ordinance are authorized , the same ~to be ~ re:- ceived en the office of -thee City Clerk untel ~a time at or prior 'to the occasion of ~: a regular,,. adjourned; or -speeeai meeting of the. Board of C'ommessioners; as. the. Mayor may" determine; upon which occasion the- sealed; competitive bids theretofore` received ~iri the office of the City Clerk; after~publie- opening~by'the ,Cety Clerk'and tabulation-and comparTSOn by the Fiscal Agent,-~-shall:-be referred -to the Board-of Commi sooners: forrconsiderateon:. StzcYi public notee`e-ahallr-be published as proveded en .KRS"~~.Chapter 42.4.; 'as amended; not less than 7 nor= more- than 21. days en advance - of" 'the :date stated therein-°for the opening rand considerateon -of ,purchase`:bds.' Such notice shall require bidders. to offer not less than 98-1/20 of the face amount of°the bonds-so'offered;" together :with:accrued .interest from~- the date -of the bonds to the date of delivery ; `-and -shall requere bedders~ to stipulate one 25 or more interest ,coupon rates of their own choosing providing each rate is a: multiple of one-eighth,-one-tenth or one-twentieth of_one_per. cent (1/8, 1/10, or 1/20 of lo) and is. no higher than 7-3/4%.per .annum, and only one,, coupon .rate may be specified; for, bonds maturing on the same date. Coupon ,rates shall be on an ascending. scale ;in ,.that no .rate . may be lower than any earlier rate . Bidders, shall be ,further advised that the,. City will not entertain any proposal .that interest becoming due as to .any bond on. any, ,interest payment ,date _ be .represented by more, than one coupon . _ Each, bond shall: bear interest at a single rate from,, ,date to maturity,. The right to reject bids and to waive any in- formalites or irregularities deemed by the Board of Commissioners to be .immaterial shall expressly be reserved. SECTION- 16. If, at the time the, bonds are. caused to be printed or otherwise manufactured, it shall be apparent that one. or more interest coupons will be past due by the time of delivery thereof., the manufacturer may be instructed Anot_ to manufacture such _. - ~-, past-due coupons, in which event a certificate__or .letter of the printer or manufacturer of the bonds shall .be furnished to the City Treasurer, and may be accepted by the City _ Treasurer -as evidence thereof; otherwise the City Treasurer shall detach and cancel such overdue coupons .,prior to delivery of the bonds . , _ _ _ SECTION 17 . When any bonds of the series .authorized. by said „Ordinance are sold and ,.delivered, the amount received ..from the purchaser as representing accrued. interest thereon, shall immediately be deposited in the Bond .Fund., and shall be applied toward payment. of the first interest .coupons next thereafter becoming ,:due,, There shall. also be deposited in the Bond Fund, from bond proceeds, an additional sum .which (to- g ' h such accrued interest) shall _be equal. to ,all interest accruing on the bonds on ether ,wit - -- -- - _ _ and prior., to. August ,1, 1979, which is the period anticipated to be required for completion of the school ,building. additions , construction and reconstruction projects . The remaining proceeds shall be deposited in the..."Construction .Fund" , as hereinafter provided , ,From such deposits in the "Construction Fund" there shall be paid all .expenses incident to the authorization, sale and delivery of the .bonds., including.. the fee of the Fiscal Agent. as contracted,.- and the charges made by Rating .Agencies., for: rating the;, bonds , if any such charges are incurred; , and thereafter the. entire balance shall be devoted, exclusively to the payment of costs of the school building construction and reconstruction .projects upon the . sites described., and according. to ,the plans and, specifications duly approved and filed as provided by KRS. 162.160 and 162.170;-- provided, however,. that if, prior .to the,,.time when, the bonds have .been :delivered to the purchaser thereof and the ,proceeds are .available , the Board of Education,, of Paducah shall. have found it necessary to advance frgm its- own funds various sums for architectural fees , amounts due to the contractors,,.: and other , . _ _ .. proper costs of said projects, the aggregate .of all such advancements may be, reimbursed to said Board of Education upon presentation by said Board of Educatian to the ,Con- 26 struction Fund Treasurer (hereinafter designated) of written certificates of the Architects with regard thereto , in such reasonable detail and authenticated in such manner as the Construction Fund Treasurer may reasonably require, showing (a) that the amount or amounts for which r ~, .: _ .:. - - . _ ... ., ...:.. .. eimbursement is requested are proper charges against the cost of ,. .,:,_ , =. said school building projects, and"(b) that aftersuch requested reimbursement, the funds ._. n ., , _ --.. .. remaining in they "Construction Fund" , hereinafter created , will be sufficierif to defray all 'ning~ costs of the projects. No~ reimbursement shall be made to said Board of Education if the effect thereof shall be to reduce the laalance in said "Construction Fund" _ _. _ below the amount shown by the certificate to be necessary to pay all remaining costs . The proceeds of the sale of said bonds, as aforesaid, shall be deposited' in cash in a bank .or trust company (hereinafter referred to as the ''Depository Bank") , which shall be a bank or trust com an in Paducah, Kentuck ,which is a member of and in- sured by FDIC, the same to be designated in the Ordinance authorizing issuance of the bonds, in a separate account designated "City of Paducah School Building Revenue Bonds, ~.. , . ,. ,. - _ . Series of ~ Februar 1, 1979, Construction Fund" , (hereinafter for convenience referred to as the "Construction Fund") , provided that simultaneously with the making of said deposit, such Depository Bank shall give security for said deposit (to the extent of the 'excess over the amount nsured,by FDIC) by making a pledge to the City Treasurer, the said Board of Education and the City of Paducah, Kentucky, of obligations of the United States Government having ~a market value', exclusive of accrued interest, at least. requal to the amount so de- posited . The securities ~ pledged ~ by the Depository Bank need not be of a market value exceeding the balances remaining in said account from time to time and as payments are .. _ _.. _ made out of said account, the Depository Sank shall be permitted to withdraw a portion of the pledged securities, provided, however, there shall remain pledged at all times securities having a' market value , ~ exclusive of accrued interest , equal to the balance remaining in said account to the extent not insured by FDIC . If the Board of Commissioners of the City of Paducah , Kentucky , shall determine - ,~.- _ .. at any time that the amount of bond proceeds being held for ~ construction costs is in excess of the amount necessary to be disbursed therefrom for the authorized purposes during the ensu. ng calendar month, it may .(subject to the arbitrage covenants hereinafter set forth) direct the Depository Bank to: ~ -` (a) make time ~ deposits thereof on aninterest-bearing basis in a bank or banks which areinsured by FDIC , evidenced by certificates of time deposit ' (issued in the name of said Construction Fund.and delivered into the custody of the Depository Bank), secured y p ~ g ~ p certificate of time deposit , at all times b~r a valid led e, on the art of each issuer of a of United States Government securities haven at all times Burin the continuance of the ,_. - ,r _ ,.. ..,-.. - - ~,,, - _ , certificate a current market value , (exclusive of accrued interest) at least equal to the _ ... ._ - . amount not insured by FDIC; the custody of such pledged United States Government 27 securities , whether actual or constructive , to be in a financial institution .other than the issuer of the certificate of time deposit in question; or . -(b) ~~:~invest suchexcess in obligations of the- United States Govet'n=meet- ors obligations the principal and interest of which, are"fully guaranteed""by the United States Government , having maturity dates or: ~bei•rfg subject to -`r'etirement at the option of the " holder: notcaater~ than -the date upon which. "it is anticipated the' proceeds thereof will be required -#or proper purposes of the ~ Construeton Fund . `~ -` " Provided:; ~ however; ~ that such -securities and%.or certificates of time' deposit'sha~l be reconvertedinto:- cash and. deposited in said' Construction Fund, as -and when additional cash is° required: to pay' const"ruction costs; such conversion into cash to -be made • by the Depostor~r- Bank,: when -necessary-, without further authority. All such' certificates of time despoit and securities shall be carried to the -credit of such =Construction Fund, aiid all income therefrom shalfi be: deposited; as"received' ixi said Construction Fund, and con- stitute apart thereof . Any expense necessarily incurred and reasonable as to amount in connection with the ~ making of suc-h dime deposits .=and investments and the safekeeping thereof shall be paid -out - of he Construction Fund : ~'• ~ A- Inasmuch as the School Building Revenue Bonds, Series of February 1, 1979, herein referred to ;: ~wiYl :be authorized sand issued :by'the :City at 'the request of the Board of Education of Paducah, for the purpose of paying the costs of adding to, constructing and reconstructingachool buildings to-be leased.; rented:and occupied by said Board of Education under" the fUContract of= Lease and Rent"• conforming to KRS 162.140, it is' directed that payments from the cash funds from time to ime ~ so deposited- in said: Construction Fund shall be made Ito defray ahe+ costs of they schooi building projects referred -to herein by checks drawn upon said fund by the Treasurer of the Board of Education of Paducah , Kentucky,=::hereby designated lthee'x.Construction'Treasure~r.", ra-ther than ~by the- City Treasurer;; :"provided;.. hoinrever said Construction Treasurer shall= furnish a fidelity bond in the penal sum of : at -least $2-U0 ; OQO ;:~ conditioned upon -faithful performance of the responsibilities incident to making disbursements from the Construction Fund and the making of a -true accounting therefor. ; - such- bonds to be separate :and. distinct from any and` all "bonds; given for the administration--of" other moneys , -arid- to have good _' corporate surety , provided by a surety company qualified to~do-business in Kentucky.-:Each- disbursement check 'shall b"e supported"'and- accompanied by~ a voucher signed ~by or on beYialf of the Architects having charge of the supervision of the:=pro}ect for which such payment- is made;`to "the effect - that the ariount:of said. "check has been earned by -the payee thereof under the terms of one of the construction contracts;. :provided-; -however; -that wit-h~ respect to =the project appurtenances ; -anti other items: required otherwise `than "as an incident `to the `construction contracts which are.. under the+-supervision -of one of-the. firms of Architects, the support- ing voucher may be signed by the Superintendent of Schools of said Board of Education or 28 other person thereunto authorized by said Board of Education. After all payments from the Construction Fund .have been :made for the additions , construction, reconstruction and completion of the school buildings protects on: `the sites described; -herein-, ; accordi~n-g~ to, the- plans 'arid specifications .filed in the ~ office ~of the City. - Clerk, approved by the B•oard~ of Education:of'sad°"School District and,by.the.`~tate ~~• Superintendent of Public Instruetian, 'any•-ba3ance remaining in said Construction Ftznd~~shall be transferred to the "City of Paducah School Building -Revenue Bond and Interest Re- ~~ °~ demption Fund, Series of February _l,~_ fi979!' , and may, ; at the request of "said Board' of Education, be credited-upon the -rentals--for.~the then. current or any--future rental year_~~ under the terms and conditions of the said "Coritr;act of Lease--and. Rent'F her_einbefore re- ferred to; or -may'; = at the -..request of -said :Board" of r Education be held .and used ~n said~~ ~B`ond Fund pursuant. to :the' provisions o~ Section 8' hereof . -- - - _ . : _ SECTION 18. (A) In this Section unless. a different meaning clearly appears from the context: - - - - - (i) "Code" means: the; Internal -Revenue Code of :195'4 of the. United States of America, Title 26 of the United States Code as amended to the date of adoption of this Resolution or as hereafter: amended, including valid ' Regulations of the Department of the Treasury thereunder; (ii) References to a provision of the Code by number or letter include reference to any law .hereafter ~ enacted as `amendment to or substitute for " such provision; (iii) Words which are used herein and in Section 102 of the Code shall have'tlie meaning;. given to-such words in or pursuantfo said Section; - (iv) "Bonds" means the "City o~ -Paducah ~School Building Revenue Bonds-, ~ . Series of February 1, 1979" , the sale of which Bonds will be authorized in and by the ~ Bond-authorizing Ordinance; (v-) "Board'--~of Commissioners" -means the Board= of Commissioners- of the City of Paducah, Kentucky, acting according to KRS 162.120 to 162.290, inc u sine : ~ - - (B)- The City -of Paducah and the Board "of Commissioners>shall at alI times: 'do and perform all acts and things required or permitted by law and necessary or desirable in order to assure that interest paid by the' City on the Bonds shall, for the- -~ purpose= of •Federal income taxation,- be exempt from income:- taxation `under any° valid "~ ~ - ._. . - provision q law . , _, ,:. (C) The City of Paducah and~aYie Board-of Commissioners shall not permit at'- any time or times any of the proceeds of the Bonds or other fund of the City .to be . . used directly :or indirectly to acquire any .securties or obligations the acquisition of which would cause any such Bond to be an -'!arbitrage bond" as defined :in Section- 108 of the Code. as then- in effect and: to~ be subject to -treatment under said Section-~-as an obligation not described in- subsection ~(a) (l) ,of said Section, unless,under 'any valid ; provision of law hereafter enacted , the interest paid by the City on the Bonds shall e_be __. excludable-:from the gross income of a recipient=-ther°eof for Federal. income tax purposes° without regard to ° compliance. with the ~ provisions of Section 103 of the Code . ~ - 29 (D) In order to assure compliance with this Section, thereby better securing and protecting the holders of the Bonds and the City, the City of Paducah from the date of adoption of this Resolution covenants that it will- not invest. in any obligation, or invest or direct the 'Board of -Commissioners . or any financial institution Yiaving -custody of any ~~: -~ moneysrelated toy the Bonds to invest (and said Board of. Commissioners and' fnancial- institutions shall not invest:) the proceeds' of said Bonds in any obligations that •pr_oduce a yield in excess of~~such applicable maximum yield.-as may be permitted by: the Code: (E) More specifically; at the~~tme of the-adoption of this"Resolution and oxi the ~ - basis of the 'facts, ~estin~ates and circumstances presently existing: (1) It is not expected that 'the proceeds : of the Bonds available for- the 'school buildings projects herein referred to will exceed the actual amount necessary to be expended .for such purpose`by as'much as 5 0; because 'the size of the bond issue will be determined on the basis of actual contracts, and the provision for possible. change orders and unforeseen contingencies will be small; . ... ,. (2) At least 85% of the spendable proceeds of the Bonds will be expended for the school :building projects within three years from and after the _.-~ - date of delivery of the Bonds; (3) Money received from the purchasers of the Bonds as representing accrued interest earne'd` at ~th~ time of delivery.- of ~ the Bonds° will be` _ applied to the payment of the first interest coupons thereafter matur- ing;: inasmuch as::it^s;specfically .provided:in this Resolution that such ~, shall be done; (4) Contracts for the services of the Architects have been entered into and contracts for construction of .the ~ pr-ojects w~r'ill shave been entered. into prior to the issuance of the Bonds , since this is required by the statutes "pursuant to:'wliich tYie "Bonds' v~ri71 be "is"sued;" and the' amounts _ of such contracts will vastly exceed the sum of $100 , 000 and vastly exceed 2-1 ~2 0 -o the amount' o - the^ bond= issue;; - ~ ~ '- (5) The school buildings projects twill not be sold prior to the final maturity of the Bonds , except that the "Contract of Lease and Rent" here- in authorized between the City and the Board of Education grants to the Board of Education the right to purchase and reacquire one or more or all of the properties :upon payment of specified sums which will be applied to the redemption and payment of Bonds . (F) The City of Paducah and the Board of Commissioners further covenant that prior to the issuance of said Bonds and as a condition precedent to such issuance the City shall certify by issuance of a certificate, supplemental to this Resolution, of a City Officer having responsibility for the issuance &f the Bonds and investment of funds, and by the- Construction` Treasurer herein given authority for disbursement of .the ,pro- ceeds of the Bonds, that 'on the basis of the: facts; estimates and circumstances. in existences on thedate of `:issue of -said ;Bonds including the' matters ~ apecificaily stated in the foregoing:=paragraph (E) ;- if they.' ar:e still- true 'at that time; it is: not expected that the proceeds of said issue ~of Bonds will ~:be used in a manner that.-would cause. sueh~.~° obligations to be arbitrage bonds , such certificate ~to b°e~ made in accordance ~+uith! the- provisions. of~Internal ti,evenue BervTce =proposed Regulations : 1 1103=.13 (a) (2)`(ii). adoptEd by the Department of the Treasury, Internal Revenue Service, pursuant to Section 103 (d) of the Code . 30 SECTION 20 . The provisions of this 'Resolution are intended to be incorporated by reference as a part •of the Bond-authorizing" Ordinance , to be adopted - at a later time ," and if so incorporate-d~ by: reference` they will, together -with the~~provisions of said Ordinance, constitute • a contract between= the City "of -Paducah :and the holders of -any "bonds and interest coupons from~~time to time outstanding pur`suart to the- provisions of said' Ordinance- and after the ~ -sale ' of ~ any "such boards or oc~upans ;- no change in" the provisions :hereof shall -.: be permitted :lnrhile~'any' of said-bonds -and coupons remain outstanding ands -unpaid, except : ~" as expressly- aixthorized' herein', • or in the Bond=authorizing Ordinance . SECTION 21. Ail Resolutions ,~ -or parts thereof ; in conflict with the provisions of this Resoi;ution`.are, to tYie extent of such: conflict;°hereby r.epeale~d."~ - SECTION: "22: -' This R.esolition shall° be in ~~full force and effect from and after its adoption and appr-oval , ~no. publication being ,required by + law . . SECTION 23. This Resolution, upon its adoption and approval, shall be re- corded or filed in the office of the City .Clerk.."as :otYrer 'Resolutions'' of ~the~ Board of Sri: ~ .. Commissioners are recorded or filed, and shall constitute an official record of the City - .. of Paducah, with thee'intent that•the'~text~-hereof, or any part'of the text hereof, be in- corporated by reference in .abond=authorizing `Ordinance to be adopted at s. later time, particularly in order to expedite the authorization and issuance of School Building Revenue Bonds° tinder ve restricted time irriitations~. ' ~ ~ ~ - x'Y' ADOPTED -$Y~ THE' BOARD OF ~OIVIMISSIONERS OF ~TFiE °CITY- OF PADUCAH , ., , _ ~.; KENTUCKY , at a properly convened meeting held on the. 9th: day of : `January , 1979. ATTEST: I ; • rthe und-ersgne.d ;°. City Clerk : of .thee. City ~~of •:Paducah ; ..Kentucky- : do :hereby_ :. certify that the "fore:going~is =a -true. and . complete. copy of a ResoIution.:.adopted: by" the . , Board of Co~nmissianers °of ,said City=. ats-a properly' coxi~ened-" meeting,--held; on ahe 9th.day of January; X1979;°:on the~rsarne occasion signed in°-open session by the`"1Vlayor:L as evidence of his approvak;~- attested` under-~seal;;by: me as rCity :Clerk:, ~ declared by the Mayor 'to be in full force anti: effect, and ordered t-o be~xecorded. . •• ~ ` W,1'F-NES S =tny: signature .=and the •sea3: of said -City , this 30th. day : of January ; " 1979 ,: (SEAL) City C erk City of Paducah , Kentucky