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HomeMy WebLinkAboutCommunity Development Block Grant Program129 A RESOLUTION REGARDING THE CITY OF PADUCAH'S ALLOCATION OF RENTAL PAYMENTS RESULTING FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT ..PROGRAM, OCCUPYING. AND UTILIZING SPACE IN .THE CITY HALL ANNEX _ BE IT RESOLVED BY .THE BOARD OF COMDZISSIONER.S .OF ,THE CITY OF PADUCAH , .KENTUCKY: _ _. _ SECTION _1, That effective as of July 1, 1979.,. the City of Paducah _ . shall for a. three (3) ,,year period receive rental payments. from the Community Develop- ... ment_.Block_ Grant Program as a result of said Program occupying and utilizing space. in property owned, by he City of Paducah and .commonly referred to as City. Hall Annex. SECTION 2. That the City of Paducah shall, as of July 1, 19.79, begin, ,,receiving, level ,monthly rental. installments from the, ,Community Development Block. Grant Program. _ The.. aforesaid. monthly rental installments shall. equal the total sum of $15 ,.741.45, for the first rental. year; .the total sum _ of $14 , 511.6.5 for the second rental .,year and, the total sum of ,$13, 377.93 for. the.. third. ,and final rental .year . The aforesaid annual rental amounts having been. computed under., the ..provisions . of _ _ Federal, Management Circular 74-4, Attachment_B_, and as is. more particularly. set forth in the letter to, 1!/tr . Randall E . Grief , ..Director , Community Development Block Grant Program , from , Mr . Allan B . Kleet, CPA; dated. February 28 , 1979. _ _ SECTION 3. That ,in_ addition to ,the. aforesaid rental payments, _Offective . as of July 1,,, 1979, .,the .Community Development Block _Grant_1?rogram shall_.also be __ responsible for all utility payments and ,payments _for...all ordinary maintenance. of _.. _. the. building and grounds.. of the City Hall ,Annex.. _ _ _ _ . _ _ , .. ... _ _ SECTION 4. _ _ .That nothing set ,forth herein shall be _ construed. to limit the ability of ,the City of. Paducah . to reassign .the Community Development Block _ Grant Program . o _ other office. space in other ,facilities .owned by the. City, of_ _ . r Paducah, if, the. City of Paducah deems, that _it is _in the. best. interest. of. the ,City- - .__ that such reassignment be accomplished . _. __ _ .. _ ._ . ._ _.. _ _ _ .. _ _ _ . _ _ _ SECTION 5. That this resolution shall be in full force and.. effect fr---om and after the date. of its adoption.. __. _ _ _ _. __ . _ _ _ ` Mayor Protem Commissioner Passed by the Board of Commissioners April 10 , 1979 Recorded by Louise McKinney, City Clerk, April 10, 1979. 130 RESOLUTION RE: "CITY OF PADUCAH SCHOOL BUILDING .REVENUE BONDS , SERIES OF JUNE 1, 1979" A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, ACKNOWLEDGING AS A MATTER OF OFFICIAL RECORD AN AGREEMENT OF THE CITY OF PADUCAH AND THIS BOARD OF COMMISSIONERS TO COOPERATE WITH THE BOARD OF EDUCATION OF PADUCAH, KENTUCKY, IN THE ISSUANCE OF "CITY OF PADUCAH SCHOOL BUILDING REVENE BONDS , SERIES OF JUNE 1, 1979" , IN AN AGGREGATE PRINCIPAL ~ _ AMOUNT WHICH WILL BE DETERMINED WHEN CONSTRUCTION BIDS HAVE BEEN PUBLICLY RECEIVED AND COMPARED , AND SAID BOARD OF EDUCATION SHALL HAVE MADE ITS NEEDS KNOWN TO THE CITY; IDENTIFYING AND DESCRIBING THE SITES TO BE CONVEYED BY THE BOARD OF EDUCATION TO THE CITY PURSUANT .TO KRS 162.120 AND AGREEING TO ACCEPT CONVEYANCE THEREOF WHEN TENDERED; AGREEING TO EXECUTE ONE OR MORE DEEDS OF WITH SAID BOARD OF EDUCATION A "CONTRACT OF LEASE AND RENT" CONFORMING 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; NAMING THE BANK WHERE PRINCIPAL AND INTEREST WILL BE PAYABLE; PRO- VIDING 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 THE BONDS AND COUPONS, AND ARBITRAGE COVENANTS TO COMPLY WITH REGULATIONS OF THE INTERNAL REVENUE SERVICE; PROVIDING FOR THE CUSTODY, SAFEKEEPING AND DISBURSEMENT OF THE PROCEEDS OF THE BONDS; AUTHORIZ- ING ADVERTISEMENT OF THE BONDS , WHEN AUTHORIZED BY ORDINANCE , AT AN ADVER- TISED PUBLIC COMPETITIVE SALE IN ACCORDANCE WITH THE REQUIREMENTS OF KRS CHAPTER 424; ALL TO THE END THAT THE SUBSTANCE AND DETAILS OF THIS RESOLUTION MAY BE INCORPORATED BY REFERENCE IN THE ORDINANCE , TO BE ADOPTED LATER , AUTHORIZING THE ISSUANCE OF SAID BONDS , IN ORDER TO ENABLE THE CITY TO SELL AND DELIVER SUCH BONDS WITHIN THE VERY LIMITED PERIOD OF TIME WHICH WILL BE AVAILABLE; AND RECITING 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 that there is an urgent_ need. and demand for ,the undertaking of substantial projects .for the construction. of school buildings; which will constitute additions to the existing buildings at the Jackson and Cooper Elementary Schools, in the Paducah School District, together with substantial reconstruction of said existing school buildings; and 131 in that connection the Board of Education has agreed to convey to the City of Paducah the sites of the respective construction projects as provided by KRS 162.120; and the City of Paducah and this Board of Commissioners have agreed to accept one or more conveyances of r ,. , _. ... . _: _ the school sites when tendered by the Board of Education, to authorize by Ordinance and according to the authority of KRS 162.120 to 162.290 "City of Paducah School Building Revenue Bonds, Series of June 1, 1979", to provide the costs of the construction and recon- struction program, the fees of the Architects, the fee of the Fiscal Agent, and other costs, such School Building Revenue Bonds to be offered by the City at an advertised public competitive sale; and WHEREAS , in conformity with the requirements of KRS 162.140 the Board of Education has agreed to execute with the City of Paducah a "Contract of Lease and Rent" whereby the Board of Education will lease said sites and the buildings to be constructed and reconstructed 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 Bonds, Series of June 1, 1979, 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 Com- missioners 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 162.160 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 advertisements 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 itself is required to follow in such matters, so that it is in order for the City to agree that it will ratify and adopt construction contracts awarded by the Board of Education on the basis thereof; and WHEREAS , the Architects have ascertained to their satisfaction that by reason of continually increasing costs of labor and materials 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 from bond proceeds it is necessary that the prospective School Building Revenue Bonds, Series of June 1, 1979, be authorized, publicly sold , printed and delivered within such period 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 on April 4, 1979, so that it is necessary and desirable to determine at this time as many of the details and provisions of the bond issue as may feasibly be determined, leaving 132 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 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 re- quired 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 424, to make an award of the bonds to the best 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 an 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 carrying 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 Paducah, this agreement being conditioned only upon the performance by the Board of Education of Paducah of all actions required by KRS 162.120 to 162.290 to be per- formed on its part, as hereinafter more particularly set forth; it being clearly understood and agreed that in the issuance of School Building Revenue Bonds according to said Statutes the City shall agree to pay the principal of and interest on the bonds from time to time solely from a special fund consisting of rentals received by the City from the leasing of the school sites and the buildings to be constructed and reconstructed 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 City or from its tax revenues or from the exercise of its taxing powers . The text of each bond shall , as hereinafter provided , and as provided in KRS 162.190 , clearly so state . SECTION 2. More specifically, the Board of Commissioners, acting for the City of Paducah, hereby agrees: (1) The Board of Education has agreed, as required by KRS 162.120, that it will execute and tender to the City 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 133 title, the sites of the two school properties .upon which buildings are sought to be con- structed and reconstructed, the same being particularly described, as follows: _, ..DESCRIPTIONS OF ,THE .SITES OF THE ,JACKSON AND, ,,, ;, ., . , COOPER ELEMENTARY.. SC.HOOLS_ LN PADUCAH , KENTUCKY SITE OF THE ~AC.KSON ELEMENTARY .SCHOOL ~ _ Beginning at a point in the West line of North 21st Street,. 13 feet on a . perpendicular line South of the South line of Park Avenue if extended; thence in a Southeasterly direction along- the West line. of North 2.lst Street 415.8 feet more or less to the Northwest corner of the inter- section of North 21st Street and Clay_,Street;, thence„ at right angles .and in a southwesterly direction along the North line of Clay Street 215 feet more or less; thence at right- angles .and in a Northwesterly direction 165 feet more or less to the North line of a 15 foot public alley which runs :parallel to. Clay Street; thence. at right angles in a .Southwesterly direction parallel to Clay Street 364.75 feet more or less; thence at an approximate interior angle.. of 62-1/2 degrees . in a northerly direction . 503.91 feet more or less to a point 13 feet South of the South line of Park ,Avenue; thence at right -angles in ,_ an easterly direction parallel to the South line of Park Avenue 420.8 feet more or less to the point of beginning. _ Being the same property conveyed, to the Board of Education. of the Paducah Independent School District by Deeds as follows: Date Recorded in Deed Book March 6, 1926 April 30 , ,1974 September 3, 1966 June 7, 1966_ _ June 7, 1966 .May 15 , 1964 _ August 26 , 1966 September. 13, 1966. 562., 481 478 478 456 480 481 SITE OF. THE COOPER ELEMENTARY SCHOOL Page Number 275 . 370 76 232 234 .65,4 579 78 Beginning at a point where the.. Northerly line of Elizabeth Street inter- sects with the Easterly line of South Sixth Street; thence in a North- westerly direction along the Eastern line:.. of South,... Sixth. Street 6.67 feet;. thence at right angles in a Northeasterly direction parallel to Elizabeth Street 152 feet 6 inches; thence.. at .right angles in a Northwesterly . direction running parallel to South Sixth Street 65 feet; thence at right angles.. in a Northeasterly direction .running. parallel._to Elizabeth Street 503 feet more or less to a point 50 feet West of the Westerly line of South Fourth Street.; .-,thence at, right,- angles- in-,a ,Southeasterly direction paral- lel to South Fourth Street 231 feet; thence at right angles in a North- easterly direction 50 feet .more.- or..less to ,the Westerly line. of South. Fou"rth Street; thence at right angles ~in a Southeasterly direction along the West. line of South Fourth Street 150. feet more or less to the North line of George Street; thence at right angles in a Southwesterly direction ,along the North line of George Street 406 feet 6 inches; thence at right angles in a Southeasterly direction parallel to South Sixth Street 348 ,feet. 9 _inches more, or less to _ the Northerly line of .Elizabeth Street; thence at right angles along the Northerly line of Elizabeth Street in a Southwesterly direction 334 feet:. more or less to. the point. of beginning. Being the ..same property. conveyed to the. Board of Education. of Paducah Independent School District by Deeds as follows: Date Recorded in Deed Book Page Number September 7 , 1917 ~ 112 494 January_29, 1920 123 _ ..567 _ January 27, 1920 123 409 February 1.3, .1926 149 - - . 378 February 16, 1926 148 557 .October 19, 1926 154 .3.39 .. _ February 15, 1965 464 614 April 11, 1964 _ 456 _ . _ 116:, __ November 9 , 1963 452 287 October 22, 1963 451 417 134 June 12, 1964 457 476 June 15, 1927 167 ~_ 218 June 12, 1890 40 555 .. -- _ _ And being., the same properties conveyed by the. Board, of, Education of Paducah , Kentucky , fo the City of Paducah , Kentucky , by Deed dated the day of April , ..1979,, recorded in Deed Book.. begin- ning at Page ., in the office -of the Clerk of the County Court, of McCracken County, Kentucky, When such deed or deeds are tendered to the City the same shall be accepted and the City Clerk is hereby instructed ~ to cause each of them to be recorded in the office of the Clerk of the County Court of McCracken County , Kentucky . (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 the 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 Board of Education to renew such lease thereafter from year to year , for one year at a time , until the final maturity date of the bonds authorized by the Ordinance to be adopted by the Board of Commissioners according to authority of KRS 162.170, et seq. , and in accordance with the details herein- after set forth . Said lease instrument shall also provide that so long as the same is re- newed 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 will enable the City to pay , solely from such cash rentals , the principal of .and interest on the School Building Revenue Bonds issued by ,the ~Ci e_ bonds and, interest coupons ty ;, ~as and when the respectiv become due 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 , sucYi insurance. to be in the full insur- able 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 holders of said bonds , Series of June 1, 1979 , 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. provide ..that .from and after the first date when the School Building Revenue Bonds are subject _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 bond- holders , by paying to the City an amount of money sufficient to enable the City .to -call 135 and redeem all of the then outstanding bonds , including interest to the redemption date and the prescribed redemption premium as hereinafter set forth; and said instrument shall also assign to each of the two school properties 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 either of said described tracts, and the improvements thereon, upon pay- ing 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 reacquire 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 thereon, 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 Peck Associates, Inc. , Architects, having their place of business at Citizens Bank Building, Paducah, Kentucky, under the terms of which contract said Architects have been employed to prepare the plans and specifications for and to super- vise construction and reconstruction of the school buildings upon the sites of both Jackson and Cooper Elementary Schools, hereinabove described, and such contract having been examined and found to be satisfactory as to form and substance , the City of Paducah here- by approves and adopts said contract and agrees to the terms and conditions thereof , pro- vided, 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, Series of June 1, 1979, 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 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 ser- vices and expenses in .providing financial advice concerning the amount of the bond issue , Series of June 1, 1979, the details thereof, the offering thereof at public sale, the prepar- 136 ation of a proper "Official Statement" to be furnished to prospective bidders providing to them all information necessary 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, Series of June 1, 1979, when actually received by the City, and shall not con- stitute aliability of the City payable from any other resources of the City whatsoever . Said contract of the Fiscal Agent 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 proper and satisfactory evidence that it has caused advertisements to be published in its own name soliciting the submission of bids for the construction of the two separate projects for the construction and reconstruction of the 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 evidence and hereby adopts and ratifies the Board's solicitation of construction bids thereunder; and the City hereby agrees 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 best bidders . The Board of Education may tender to the Board of Commissioners the construction contracts which it awards on the basis of such advertised competitive lettings , and the Board of Com- missioners agrees that the City will at that time adopt and ratify such construction con- tracts , and each of them , as contracts of the City , but for payment of the amounts due thereunder from time to time solely from the proceeds of School Building Revenue Bonds, Series of June 1, 1979, 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 contracts may be written in the first instance in the name of the Board of Education, in which event they may be endorsed to show adoption and ratification thereof by the City , in which event the endorsement shall 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 executed copy of each contract, together with evidence of the proper solicitation of construction bids by advertising as hereinabove recited shall be filed in the office of the City Clerk and preserved as public records of the City as in the case of any other contracts executed by the City . ~ ~_ 137 SECTION 3. When all of the actions and events described in paragraphs (1) , (2) and (5) of Section 2 of this Resolution shall have been performed and accomplished, the Board of Commissioners hereby agrees that it will adopt an Ordinance authorizing the issuance of School Building Revenue Bonds, Series of June 1, 1979, 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 two school building construction and reconstruction projects upon the sites hereinabove described . Said bonds shall be designated "City of Paducah School Building Revenue Bonds, Series of June 1, 1979", shall be dated June 1, 1979, shall consist of negotiable coupon bonds in the denomination of $5,000 each, and shall bear interest at such rate or rates as may be established by the Board of Commissioners in a resolution to be adopted upon the occasion of the advertised public sale of said bonds as hereinafter provided , and upon the basis of competition among the bidders as hereinafter provided , such interest to the respective maturity dates of the bonds to be evidenced by appurtenant interest coupons payable semi- annually on June 1 and December 1 of each year, commencing December 1, 1979. Said bonds shall be caused to mature serially in various amounts on June 1 of each year, com- mencing June 1, 1980, according to a maturity schedule which shall be as requested by the Board of Education and which shall be set forth in the Ordinance authorizing issuance of the bonds; provided, however,' the City shall reserve the option to call and redeem the bonds of said series maturing on and after June 1, 1990 , of such of them as may be out- standing from time to time, prior to maturity, on any interest payment date on or after June 1, 1989, as a whole or from time to time in part in the inverse order of their maturity (less than all of a single maturity to be selected by lot) , and in the event any of said bonds are to be redeemed, it shall be agreed that there shall be paid to the holder of each bond upon surrender thereof a premium , in addition to principal and to the interest then accrued and evidenced by interest coupons , such premium being stated as a percent of the principal amount, as follows: 3$ if redeemed on or after June 1, 1989 , and on or prior to June 1, 1994; 2 $ if redeemed after June 1, 1994 , and on or prior to June 1, 1999; and 1 o if redeemed after June 1, 1999 , and prior to final maturity . Notice of such redemption , identifying the bonds to be redeemed , shall be given by publication, at least once, not less than thirty (30) days prior to the redemption date, in a newspaper 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 shall not affect the validity and effectiveness of the redemption proceedings if notice by publication is given in proper and timely 138 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 America at the principal office of Citizens Bank and Trust Company of Paducah, in the City of Paducah , Kentucky , a bank insured by Federal Deposit Insurance Corporation (hereinafter referred to as "FDIC") . Each of said bonds shall be executed on behalf of the City by the reproduced facsimile of the signature of the Mayor, sealed with the reproduced facsimile of the seal of the City and attested by the reproduced facsimile of the signature of the City Clerk; and additionally either the Mayor or the City Clerk shall validate each bond by manual signature . The interest coupons attached to said bonds shall be executed with the reproduced fac- simile signatures of the Mayor and the City Clerk. If any of the officers whose signatures or facsimile signatures appear on the bonds or coupons shall cease to be such officers 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 in office until delivery . Any bond issuable hereunder may be signed, sealed or attested on behalf of the City (by facsimile signature, or manual signature, as herein provided) by any person who at the actual date of the execution of such bond is the proper officer of the City of Paducah, notwithstanding that at the date of such action such person shall not have been such officer . All of said bonds, together with interest thereon, and any additional bonds rank- ing on a parity therewith which may be issued and outstanding from time to time under the restrictions and conditions hereinafter set forth, shall not constitute an indebtedness of the City of Pacucah, Kentucky, but shall be secured by and shall be payable solely out of the "City of Paducah School Building Revenue Bond and Interest Redemption Fund, Series of June 1, 1979", hereinafter created, and the revenues from the use and occupancy of the said school buildings pledged to said fund. SECTION 5. Each of said bonds shall be fully negotiable, provided that upon presentation by any of said bonds at 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 registration 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 another 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 139 in like manner registered as before . Registration of any of said bonds as to principal shall not affect the negotiability of the appurtenant coupons, and such. 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 toy bearer; and such holder of each of the coupons appurtenant thereto , - shall be conclusively 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 t~ bearer, -and each :of-ahe coupons appurtenant;-thereto;- may be -negotiated ar~d transferred by delivery by -any -person having possession- thereof., howso- ever such-~pos°session may-have been acquired, and that any holder 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-: to .it of they loss , ,theft,. destruction or mutilation -of any • outstanding bond- or bonds: issued under: the authorizing--Ordinance, and of indemnity -satisfactory to -they -City, and--upon -surrender and cancellation ~ of -such bond or -bond , -if mutilated.; the City may -execute: and there may. -be delivered ,- a :new bond- or bonds of :like. -~xenor ; -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 ta:-the same security.,and~-source of -payment :as-,the bond.:which it r:epiaces. Each- such new ,bond may bear .-such;-endorsement; if, any, -as may •be deemed necessary to evidence that it has beef. issued in lieu of .a lost, stolen,: destroyed or m~:ttilated~ bond. The City may require the payment of -the- expenses incurred by .the City in: connection therewith . In-ahe -:event .such ..destroyed ,or: mutilated bonds , or -any :of them;. shall be due: and payable -within, .a reasonable -time after notice to -the City of ~ such , destruction ~or mutilation , the City may,. by agreement with-the-claimant,. with likes security.; provisions to: protect theCity :from lass , enter into , a written agreement ao pays ahe bonds and coupons ~ w:hen due, =instead of causing a :bond or -bonds to be~ manuiacttxred:: anti delivered ~ in lieu, thereof .~ ~; :- SECTION 7-. • That- said .bonds and coupons and provisions .for..registration shall be in substantially the,following-forms:.- ... ~ ~ .. . __.- ~.-{FORM OF BOND) , - ~, ,_. :, ~, , ,:: :„ ~, :.-- -UNITED: ST~4TES:,OF=-AMERICpi-~_ -:,.-,. ,,,., ..., COMMONWEALTH OF KENTUCKY . CdTY .OF L?ADUCAH : ; - - .., .. , ... .:. , . ~. , SCHOOL BUILDING REVENUE BOND ..:...- ,_ ,.-- ,,, ._ ,...,,.; SE1t;IES -OF..JikNE 1; ,1979, ;......,- ~ ,._, ; ,-- ---- .: .. Number-.- - ,.. ,- - .,.. -•,- .,..<.,~: ,;-: .. , $5~OUO.UOx~ ~ ,, - , :KNOW ALL,.MEN B:Y-THESE-PRESENTS.:. ;, ~ ; . _~ ~ -:.- ~; -, That---.the City of Paducah:, :Kentucky-; acting byand through -its Board of Com- ~~ missioners as -its =governing,=body, for• value _received:;- hereby promises:- to-.pay-.to~ the bearer, or.-:..i~ tY~is bond- be r-egistered~,to rtYc],E, r-egistered holder--hereo€,-,-solely ;from. the: special 140 fund herein referred to, the principal sum of Five• Thousand Dollars ($5,000.00) on the 1st 'day of June , and in 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 June and December in each year , commencing December 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 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 Citizens Bank and Trust Company of Paducah, 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 reconstriz¢tiori of exist"ing "school buildings upon the sites of Jackson and Cooper Elementary Schools {hereinafter referred to as the "school buildings") , with necessary appurtenances , - in the Paducah School District , in said City , as more fully set "forth and identified in said 'Ordinance, under and in full compliance with the- Con- stitution and Statutes of" the Commonwealth of Kentucky, ` including among others, Sections 162.120 to 162:290 , inclusive , of the Kentucky -Revised Statutes , now in full force ~ and effect . Said City hereby reserves the rigYit` and option to call and redeem -the bonds of" said series maturing `on and after June 1, 1990" "as may from time to time be outstanding, `prior to maturity, on any interest payment date on or after June 1, 1989, as a whole, or from' time to time in part in the ~ inverse order ~ of their maturity (Tess 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 June 1, 1989, and on or prior to" June 1, 1994; 2 % if redeemed after June 1, 1994 , and on or prior to June 1, 1999; and 1% if redeemed after June 1, .,;1999, and prior `to final maturity. Notice of such redemption, 'ident'ifying 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, how- ever , 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 Uy 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 141 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'. ' - 'This bond- and' the~~series`~ of which it forms•'a part and' any additional bonds " ` - -- °` ranking on ~~: `parity `therewith which- may be~-issued 'aricr'oiztstanding~ from tune .tc .time under `t'he 'restrictions sand conditions ~ set• forth `in~ sad'~~Ordinanee' do • not' °consttute ` an - indebtedness of 'the` City Hof Paducah; Kenttieky , and are `not `payable 'from ~ its general funds ~:-or taxes-,`~b~ut~'are payable =only from and'secured~ by. a°first. lien upon-the! gross income and revenues to be derived from leasing the school bu'ildings' and appurtenant facilities on the °sites '-described in-the proceedings ; ~tYte• amounts ~of- which revenues shall `besufficient to -pay the principal of and interest'on' said'~bonds ~as arid when the `same become due and payable , and which -shall be `set aside as a special fund 'pledged for that purpose'-and =` i~dentifie'd as the "City: of Paducah School Building Revenue Bond aril Interest Redemption Fund'', Series of:June ~1, 19T9" : ~ ~ 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; sufftcent•to p-ay promptly tile` principal Hof and nterest'.on allbondsfrom 'time to timeoutstanding; ~whi'ch, 'by their terms; are payable froii~ said 'special ~fuiid~. ' ' `~ Y~ statutory mortgage lien which :is hereby reco`gnized' as valid a;nd' binding on the~said school' buldings~and appurtenant:facilities; and uporr~any additions;' extensions and 2mprovements-~ there,toP pis ~er~eated- ands gr~anted'by 1~R•S i6~:20U in favor of theholder or holders-of~-this bond and the series of which~it forms a ~part:~a.rid in favor of the holder or holders of. interest coupons .appurtenant `to said bonds , and said •school buildings and any. appurtenant facilities , additions ; extensions • and -improvements thereto shall remain sub- ject~ to sandstatutory mortgage lien until they payment in full of theprincipal -of and interest ~on this .bond•~'and the=•series ~of which ~itfarms~ a part and until payment in fuli~ of~ any ad;diti6nal -bonds cranking: on a basis , of parity- therewith which ~ may ~ bei: issued upon ~ the conditions and subj ec~ to ~the~ restrictions set forth' in' said Ordinance; ~ provided ; however , that said= statutory' ~iriortgage: lien ~s aid` sha111 be.~ rnstricted'in `its- applications to the school buildings- and ~- appurtenant: ifaclties~; tile' costs' of the construetibn_ ors =reconstruction of which -are defrayed from the proceeds 'of` the bonds ssued~~orr`permitted to ~be~'issued sunder the prouision~s of the above=mentioned Ordin'ance' (including parity bonds, afo~~said) ;' 'together with: appurtenances; equipment ~thereiri~, -thosre ~portians' of~ the'school 'sites phys~icaTly occupies ~thereb~r~, and~~sucheasements `and~rYghts=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 `construc't` upon unoccupied 'portions of the school sites describe-d' irisaid Ordinance other structures and improvements 'for school purposes free::and clear. of `said=stattttory`~mortgage lien, even tliough the'same~ area etinnected' by using ;as party:; walls: one ors more- walls of structures which aresubject tosaid mortgage 142 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 'strtzetures and improvements are paid from the proceeds of the bonds of the series of which this bond i:s one, and provided the construction thereof shall not 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 and buildings upon payment 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 assignment 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 registration and restored to negotiability by being-transferred to bearer, after which it shad 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. buildins 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 facsimile 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 i 143 validating manual signature of either the Mayor or the City Clerk, and has caused the cou 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 June, 1979. CITY OF PADUCAH , KENTUCKY By (Facsimile Signature) Mayor (FACSIMILE OF SEAL) ATTEST: Manual signature of the Mayor or the City Clerk (Facsimile Signature) City Clerk (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 PaducahSchool Building Revenue Bond and. Interest Redemption Fund, Series of June 1, 1979" , at the principal office of Citizens Bank and Trust Company of Paducah, in Paducah, Ketucky, as provided in and for interest then due on its "City of Paducah School Building Revenue Bond, Series of June 1, 1979", dated June 1, 1979, No. CITY OF PADUCAH, KENTUCKY By (Facsimile Signature) Mayor ATTEST: (Facsimile Signature) City Clerk '~ (This redemption legend to appear only on coupons maturing on and after December 1, 1989. ) (FORM OF REGISTRATION) Date 'of - ~ ~ : ~ In Whose Name Signat re of Registration Registered City Tr surer 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 June 1, 1979, and ending the last day of May, 1980, and thereafter on a fiscal year basis commencing as of June 1 of each year and ending on each succeeding last day of May, and the income and revenues from such lease, rental and occupancy including specifically the gross income and revenues from the Con- 144 tract 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 shall be apportioned, as follows: 1. There shall be .and there is hereby created an `aocount' to be known as the "City of Paducah School Building Revenue Bond and Interest Redemption Fund, Series of June 1, 1979" (hereinafter referred to as the "Bond Fund") , into which there shall be - - ~, paid and set aside all or such portion of the income and revenues from said school build- ing properties as will be sufficient to pay the interest on and principal of the: bonds here- by contemplated as the same are scheduled to become due. All sums received as accrued w_ . .. . ~_,. ..,,.. ,. .,_ .~ ..._._...... ,;r interest in the issuance of 'the' bonds shall be deposited in the Bond Fund and applied to- ward the payment of the first interest coupons next thereafter becoming due . It is hereby ~, ~ ; determined that the amount to be set aside from accrued interest, and annually from the gross income and revenues, 'as aforesaid; and deposited intosaid Bond Fund during each fiscal period and year for the purpose of paying the interest on and principal of the bonds shall be ~as hereafter to be set forth in the bond-authorizing Ordinance, -and shall be not less ,. , .. . ,, .,. ... .. ,.. .,. „. .;... than such annual amounts as will be sufficient to ~ pay the bonds and interest coupons as .. they respectively 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%) per annum; and each annual amount set forth in the Ordinance shall be the sum required to pay the interest coupons maturing in the respective fiscal year and on June 1 in the next ensuing fiscal year , together with the bonds maturing on June 1 in said next ensuing fiscal year, based upon said assumed interest coupon rate. In the event that the interest rate or rates 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 automatically be adjusted to such sums as will accomplish the purposes set forth in this paragraph. The amount by which any such payment into said Bond Fund in any fiscal year may exceed the aggregate amount of interest on and principal of the bonds shall be held therein as a reserve for subsequent annual interest and principal requirements; provided, however , that any balances in said Fund in excess of the interest and principal require- ments for the current fiscal year and payments therefrom required to be made on the next _. succeeding June 1 and December 1 shall be used to redeem and retire bonds in advance of maturity; and provided further, that no further payments need be made into said Bond 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 _ _ ... . _. _ _ ~. .f. _ ~. -- .. , and to pay all interest to 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 . -.... - - - 11. - - ~ , redeemed prior to stated maturities as in said bonds provided . 145 If, in any year, the City shall, for any reason, fail to pay into said Bond Fund the full amount set forth in the -bond-authorizing Ordinance; then an amount' equivalent to such deficiency shall be set apart .ands ~pa.d into said Bond Fund from 'the first available gross income and 'r"evenues ` of said school ~ building :properties for the following- year or _ _ yeas and ~ the.-' same hall be in addition to '-the a-mount otherwise .herein provided to be so set apart and paid during such`: succeeding' year or years:. - • All rnorieys, held in ~said,•Bond Rind as` aforesaid 'shall Abe deposited in Central Bank ° and Trust Company of Paducah; ~ in' RaducaY; Kentucky , whicYr is a member of the Federal Deposit Insurance Corporation, `and^to~ the -extent that the same shall cause deposits of the City in said bank- ~to exceed.-.~the 'amount insured by Federal Deposit Insurance Corporation; tYe same' shall be continuously secured by a valid -pledge of bonds or notes of 'the United .States Government having" an equivalent °market value, ~"orshall, at the direction of the Boards-.of Commissioners of ahe~`City: =of:°Paducah; Kentucky, be invested, subj'cet~to~the~ ~arbitrage~,covenants s;efi forth in 'S'ection 18 hereof (a) in. bills, 'notes ~or bonds issued •by~ the ~U~rited States Treasury ~ Department; or +(b) in certificates of time 'deposit of banks which arse members ~of and insured by Federal Deposit. Insurance Corporation- (FDIC) , and ~f -any such: certificate of,°~time 'deposit shall ~e in° any=amount exceeding the mount - insured "-by FDIC:, the"~excess. shalk bey:secured by avalid'-pledge of securities' issued or fully guaranteed•-•as to-•principal°and~interest~.by the United "States Government;• which -;secu-rifles- s~rali. ~be- held;, actually or coMStructively, ' in `the custody of ano'ther'FDIC insured bank. - _. - ._ ...~~ ,, - The -annual.payments sorequired in=each fiscal year shall'be made in semiannual installments ; :one " on or~ - before the 1st. day' ~ of November°, 'in a ~ sum at least ~ equal to the interest cotzporrs~ matur~rng on the°:ensuing =December 1 in such year, and the `balance on or before "ahe -next May: 1-in such fiscal>y~e~ar~ the• first =such rental payment to :be made on or before-November~„k:; 1379: :-Said °~Ftzn'd as ~rrext_~hereinbeforeprovided shall be used solely and~;only~.~and is hereby~~pe~lged-for~tYie purpose of ~payrg interest on; rederription premiums :¢if • any) , and •prncipal~:-of he bonds;. Series of~~June 'L; 1973; ~ twhch ~ in then Ordinance will bey autY~orized~Fand",permitted to be~ issued;- •as the same become due`.' --- - - - :" = -- ~- -2 ." -.Out of°:"the balancEof~~the' revenue"and~income'r~emainng after the aforesaid payments • into the Bond Ftin.d, where. ~shalh bye setaside ~ intro a Maintenance Fund -whatever amount •ma be' rrecessar and is' oat otherrniase: ro~ided'`for the ro er mainfen`ance of Y" Y' p P P' said. schools building properties .and':~to continuously ins~xre said"'school buildings 'and -appurtenances against loss- or=damage by fire lightening, winds'torm`;' or other ~ calamity , in the arrrount.'of its full insurable value;- or iri lieu thereof; tle` lessee of said school building, if a lease thereof is then.in'-force=,-`may'pay the edsts of maintenance anti Hof -providing and- maintaining~ such- insurance , Such-~ insurance shall `be for the use and benefit of -they ~hoider or .holders of any -bond or-~ bonds, "Series ~ of June' 1, 19.79 , it "being 146 the intention of the City to provide -that insurance shall be carried which shall be at all times equal to at: least the full insurable -value of said school' buildings:.. • -SECTION 9;. Said City-hereby covenants and agrees with: the holder or holders of the-bonds; Serie~s-~of ~June-~1; 19>79;~~:whch in said Ordinance will be authorized and per- rutted to -be issued , and :-each of them ; that it will., faithfully axd punctually ~ perform all duties with reference to said--school buidrrg-propertiesr required: by the: Constitution and laws of the Cornmanwealth ~:of Kentucky, includ.~ing 'the' :making-.: of seasonable- and sufficient rentals for services• rendered- thereby ~ ,and ~vi,ll.~ egregate~ said revenues:- aril income -and ~ make -~ ~- applcationFto the-~respectve~ funds created Eby, thss~ Resolution.: • Lt .is the declared .intention of~ •the~~Cty -to- .continue to; lease said--school- building properties to ~s:aid ,Board of -Education for an, ; extended =period ~ of years ; as to:-~be provided in a certain Resolution :adopted by the Board of.~ Education-~of- said School .District; : which-~Resoluton and the: proposed Contract of :Lease and REnt - to be: set-forth' therein. shall be -s~zbmitted to this. Board :~ of• Commissioners of said City; as hereinabove _pro~ded , an!d -shall, in aid bond-authorzng~;Ordinance , be accepted. and made ~a- part`- of they City's records ;~ ~anfl the l~iayor shall- be `authorized to -- execute and' acknowledge said "Contract-;vf Lease- and Rent" for a:nd on behalf of said City, -and • the Gity• ~Cler-k slaall_-be: ~authori~zed 'to attest they same and affix the corporate ~ seal of the -City, thereto,. •, Thee, City further=binds and ob3igates itself.-not to elT :mortgage, `or~'in any manner -encumber or ::dispose' •of said ° school buildings and appurtenant ~ facilities , ~ including additions•:and- extensians~, and-the-:revcnues~ derived--therefrom -excep# as specifically per- mitted and provided herein, until all the bonds issued under the bond-authorizing - - ;Ordinance ~ shall ~ have ~ been p&d in :full; as fo: both princip°ai ~,nd .interest : The City fur- -ther covenants- and-~agrees:;withahe holder-of said :bonds; Series of.June ~l 1979, to main- Main said:- school buildings and appurtenant facilities in good condition ~ and to- charge and - collect -such-rents :for: services rendered ~ thereby ~so -.that the gross revenues ` will be suf- ficient at all-•.times to-provide. for--•the- payment of the "interest on and the principal' of the .bonds--w~hieh in, said - Ordinance • will bey authorized and permitted to be issued; : as -and when they mature, and to, pay the maintenance•-cost' thereof", includng~the cost of. insurance, as hereinabove provided; ;or tq cause any lessee of said properties to pay aTl such costs. -. ~, Said:,"GontrEact of Lease. and=-Rent'•'- when: tendered to the -City by said Board of -Education: and .accepted ,and approved; s-hall~~reserve to- "said Board of Educatan• the 'right and option.. at: -any time on. or after. June 1,._,1989., to prepay rent ands thereby purchase and acquire., the said. ,school , ,buldin-gs and ~:agpurtenances,, -together. r with the sites ~ thereof , free and .clear of, :thee-s-tatutory mortgage-=lien which is provided .by KRS 162:2U0 and .herein recognized,, upon payment to the; City ~of =~ suxnsufficient- to r-edeem and m~etire all the bonds then outstanding,- in accordance-<with their. terms. It :has further been agr.eed~ that in~-~said --"Contract- of Lease arid~~ Rent?' ~ it will be - provided} that said Board -of Education of ,.Paducah,"`Kentucky, shall-"have°`the'rght'-and option 147 at any time on or after June 1, 1989, and from time to time, to prepay rent and thereby purchase and acquire either of the said school buildings and appurtenances , together with the portions of the site or` cites `physically occupied thereby, and adequate easements for ingress, egress, and the rendering of necessary services thereto, and obtain a recon- veyance thereof from said City free and clear of the statutory mortgage lien which is pro- ..- --<,.. --, _ -~~.~ ;~.- ~- ,_ vided by KRS 162.200 as a part of the security for the School Building Revenue Bonds, Series of June 1, 1979, which said City is about to issue, upon the following conditions and by paying to the City the following respective option prices in cash: . __ ... ,, OPTION PRICES . _ . ,. .~.. .. ..._ ,r, r. .., err. -~ -q-~ .. ---'-. ~- - - - .. Jackson Elementary School Site: 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, Series of June 1, 1979, issued by said City for the financing of the over-all construction program affecting all of the school buildings herein described by 53%; 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 Jackson Elementary School Site. Cooper Elementary School Site: A sum, similarly computed, and using as the percentage factor: 47%. REDUCTION OF OPTION PRICES AS BONDS ARE RETIRED _ ~~ In the event either of the above-mentioned options shall be exercised by said Board of Education at a time when a portion of said School Building Revenue Bonds, _ _ Series of June 1, 1979, issued by the City have been paid by the City from the annual rentals received by it from said Board of Education, the applicable 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 either of its options to purchase and acquire either of the school sites shall not reduce the option - ... ~ , ' _ price otherwise applicable to the remaining site . CREDIT FOR COLLECTED INSURANCE PROCEEDS IN THR EVENT OF DAMAGE OR DESTRUCTION - ;''The parties ~•reeognize ~the~ possblty. that either of ahe school buildings herein re- ferred t~ may be damaged or destroyed by fire or .other ~ natural hazards , resulting in the coliection~: of insurance proceeds' which .are' inadequate to provide 'all of the- costs of repair- ing or reconstructing such premises so that the same will be acceptable for use and occu- paney by ~ said Board- of Education for schools -purposes , an+d it is agreed that this is one ofF,the controlling: reasons °for establishing option -rights in favor Hof -said Board of Education. In the event of~ such circumstances, =it is agreed- that the -option :price • applicable =to the pro- perfiy in question shall ~ first be computed and adjusted as hereinbefore set' forth and shall thert..be-.credi~ed_ with-the amount of=~the~ insurance proceeds actually collected as a result of a 148 such damages or destruction; and such- collected insurance proceeds shall immediately be deposited by the City in its Bond and Interest Redemption Fund, Series of June 1°, 1979. REDEMPTION OF BONDS WHEN OPTION- IS EXERCISED; ADJUSTMENT OF OPTION PRICE FOR REDEMTPION PREMIUM In the event said Board of Education shall, from time to time exercise either of its purchase options as herein set forth, it is agreed that the City shall apply the funds re- ceived from the Board of Education and/or insurance proceeds to the redemption of an equal principal amount of the City's said School Building Revenue Bonds, Series of June 1, 1979, then outstanding. 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 principal amount of such bonds, said premium being 3% of the principal amount of each bond for a period including and immediately following June 1, 1989, and gradually diminishing for successive periods thereafter. Accordingly, and in order to enable the said City to redeem and retire bonds as herein provided , said Board of Education agrees that in the event it exercises either 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 premium which the City will be obliged to pay in order to redeem the prescribed portion of its outstanding School Building Revenue Bonds, Series of June 1, 1979, and also the cost of publishing the redemption notice . ADJUSTMENT OF FUTURE RENTALS IF OPTION IS EXERCISED It is understood and agreed that the annual rentals herein provided are for the use and occupancy by said Board of Education of all of the school buildings constructed , reconstructed and financed through the issuance of said School Building Revenue Bonds, Series of June 1, 1979; and it is therefore agreed that if and when said Board of Education exercises either 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 when 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 . (b) For all fiscal years after the fiscal year in which either 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 sufficient to pay the principal of and interest on- pats. ~remaining--out~staneling ScYiool- Building Revenue. Bonds, Series of June 1, 1979, as and when the bonds and interest coupons severally be- come due ... . - . SECTION 10. That for the- further protection of the holders of the bonds., Series of June 1; 1979 , 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 appurtenant facilities, ands upon. any additions, extensions and im- provements thereto; is granted and created by KRS 162.2U0, which said statutory mortgage 149 lien. is hereby recognized and declared ~ to ° be valid and binding upon the delivery of any -bonds ~ authorized~to• be issued under. the°provisions of said Ordinance; and > said statutory nor~tgage-lien :shall remain ixi~ fuli~force~~and effect until pa~rinent in fulljof' ali.bonds, issued pursuant to_ said Ordinance, includng'parity• bonds if any be ssued;':~provded, however, that said ~statutory-~mortgage lien is and shad be restricted it its application. Ito the-=school --buildings and appurtenant facilities,~~tYie• costs of~ construction and .reconstruction of; and additions -to; which rare 'defrayed -from: they°proceeds of the bonds issued nor permitted to be issued-under--the•. prov~rsions:ofsaid°~Ordinance,= together with` appurtenances; .equipment -; tl~rereix2;°-those portions. of-the~ respectitre: school -cites physically occupied ~~thereby, and such ~~easements and- right-of-way_ for. in:gress, ~ e~gress~~and the rendering of services thereto as may . be-a necessary .for- the.' proper use _and maintenance ~ ~of the same; the" right being hereby meserved -to- ~er.ect ' or construct upon unoccupied p°ortions of the = school sites herein -described other.; structures:: ~and~improvements for".s:chaol purposes free a:nd clean of said statutory; mor!tgage•aien, Ueven=thougli the carne are ,connected by ~ using'as party walls one or more walls of structures which ~~are subject toy said' statutory mortgage lien;: providing -ahe` -same are--capable ;of use° gas separate ennti~es in-~ hensselves and ~ have' their own outside °entrances ;; Tncz part-rof: thee. costs.'_~of .-said additional structures ~ and improvements • are paid from the proceeds--of-suchrbonds:, aiiet^~providing?there sha~.l be no-obstructien or=interference with- ingress; `-egre`ss and`~the r~n~d~eririg~of necessary: services to' the school buildings herein referred -tr-r. ~- -- ~ - ~. _ . _ .. .. > . ~ __ = - ~ - - ` ~ _ Y„.,, -.. T ~he° CYity reser-ves.~the -right r(at thee-request of they Board:-of Education) to release and/or ,convey ; with -or ~~wthout Y-consid;eraton;~ - frees _of the statutory ~ mortgage Wien ~_~herein created. securing rthe :bonds:..such .easements, rghts-~of-vvay,:licenses or. pother rights over, upon; orF beneath,the ssurfa,ce~:of~..-the nand herein 'described- as°~may reasonably be required for:-roc-ds,~-uti ides;- :drainage -or~,-~other:gublic ~purpases, provcied' (a) nfl such release or conv~eyarxces_ .shail~interfere: wth_the= ~.owner~ship and : efficient: operation ~ of -tYe-:school~ buildings acrd- appurtenances ~ (an'd:~ xhe .actual. land or1- which::the s~ame~ are-rlocated) addeel ~to;: con- ~structed~~or reeonstructedr-from~ the°p~roceeds of+the~~bonds;-' (b~) rngress•to.~~and egress - fro,m:-such.;:schooi;,buildings-:aha11-not: thereby~~b.+s~ impaire'd~,r and- (c)~-`there'~s~hall -be no reducton• arf~ the:: r~eutals~ ~otherwse :r~e~uired! under ~the'=afor=ementnrted `Contract` ~of Lease and Rent between the: Gi ~ and ~ the Board Hof ~ ~ducatinn•:~ ~ ~ ~ • - ~ ; ~, ~, _. , -_.. _,,. , ,. , . ty - .., r. - - ~ ~A-ny~holder-_of ~said:•bonds- or of -any_ ~of~~the coupens ; ~ either at law =or iii equity , by ^stits ~a.etion„ mandamus, ~.or. bthc~r proceedings, •mcy ~~nforce~ and`compel -thes~performance of ---a11, duties -required::by° ~ the ~ :Constitutio-n: ~a'nd~ ~ Statutes ::of ~ they=Commonwealth of Kentucky , including the charging a7rd collectiom.~of`.sufficient~ rents; the segr-egatio~rn~of revenues and-•rrcorne;;~-and•ti~e~appiication~'hereo£;:~arid~~may~; `by.such:acton;~"compel the=perfi~rmance of a11.-duties imposed in_ the. operati~ori~:of~:an.adequate'school^aystem~as=provded~•'by law, but only insofar as the failure to perform such duties- should ~~or ~~edulr3; affect .tlre ..interests of any holder or holders of any bond or bonds, Series of June 1, 1979. 150 If there is any default in the payment of the principal of or interest on any of said -bands; then; upon the filings of` suit by any holder of said bonds or of ~ any of 'the - ~ cou::po~ns., any; -court havrng -jurisdiction" of :the actiori~ may appoint a receiver to administer -- -said school "building properties ion beliaif=of the City and/or he: -Board of" Education"-of - - ,Paducah, Kentucky, .with power 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,- and to apply the income and revenues in conformity here- with, and in conformity with the: provisions`of "said laws of Kentucky aforesaid. - - - - ~-ySEC`TION 11: Bonds, Series of June 1, -1979, which in the bond-authorizing Ordinance are authorized. or permitted to-be i-sued -and from time to time outstanding shall not be ;entitled to priority one over the other in the "application of "the revenues of said =school- building :properties or with- respect: ~ to the statutory. mortgage lien"securing their- payment, regardless of ahe "time or times: of -their issuance," it. being the intention that there shall-be no -priority among such bonds" regardless . of 'the "fact° that°they may be y . ., actuail issued~:and •delivered at::different times..: '-.- -'- ~ ~' ~' ~ ~° - - SEC~IOl~}'~12: While any-of the bonds which in the'~bond-authorizing Ordinance are authorized or-permitted -to. be issued :are outstanding; the City -shall not issue any additional bonds or incur any other obligations- payable from the revenues of said: school buildings, unless the lien--and security of such`"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 of -the- bonds; provided , however , said City hereby reserves the right and privilege -of issuing additional bonds from time to time; payable fr-om the income and revenues' ~of said school -buildings 'and ranking on 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 necessary to pay the costs; °not-otherwise available;` of"-completing the' additions, construction and reconstruction of -said- chooi ~ building -and appurtenant faclities• .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 filed in the -office of the City Clerk;-- but before any such -additional bonds ranking on a parity ,~- as aforesaid -are issued; -the issu`ance` thereof:,shall be approved: by the proper agents of the State Board for Elementary and Secondary Education, as required by law, and a 'SUpple- --~ mental Contract ~of `Tease and Rent- shall have been entered into,. whereunder the respective annual rental" payments during' the life ~of such additional bonds are increased by the amount of the annual interest 'and principal requirements= of such "additional bonds :and the interest payment dates for such additional bonds shall be" June 1 and December 1 of each year, and - the- principal~maturty dates shall be "ori June -1. Any additions,. extensions of improvements made'~~to,said ~ school building properties shall likewise- -be subject to -said statutory mortgage lien provided in Section ~ 10 hereof : - - 151 - - SEC~TION~l13: :So-,-long as any~_of said: bonds .are outstanding,- the City shall keep proper book -of_re~ords :-and- accounts ~{separate from >all other records and. accounts) in w~chcomp~lot-e- and .correct ~ent~es -shali~;be~~rrrade- of all.~transactions~relatng to said school building. paropert.es-r- ~~ie :Gity- X311 ~-f-urnsl~ -©n :writ?t~n~rrequiest~ of. any.. hnider ~ of•--said~ bonds, - ~ S:eres-:-of_ Jane ,1,, :,1979;:,-rw~thin thirt3r -.(30):-daysafter °xhe~~ctose of eacfii six months' fiscal period,;-eomple~e- operating,-and -income stFa_temenr~ts•:in:realonable°:detail-cover-ng~auch six months' period and, within sixty (6Q)_~ days ~a:ftet+.~the -close of each ~fi~scal :.year; complete finaneal•~-statements of -said projECt- :in rsa~sonable: detail -:,covering such . fiscal year . r --- ,-~ SE-CTIQhT X1-4 ti-_ if ,-a.ny- -se~ton~, -•:;paragraph:, blause ~ or: provision ~ Hof ~ this Resolution shalt- ~e she-ld: in~rali-e}.,-:tie- nYaldi.~y:af su~h~~s~~tion, paragraph,: clause or provision shall - not affect -;anY: -of tl~e remaining-,provisions: ~ ., • ~ • ~ - ~ - - ; - -- SEETIO~T- 1.5- .:~~e NiayQr; pis authorized to execute °•and~ to~ cause to<<be published (a} in ,the .Padu~ah,Sun_, -.~vhach::is;r;a~daly~~nevvspaper: pv~biished:_n~ahe City: of :Paducah, .etucky,.;.(b)~~.rr,T~e;~Cot~rier-~~oupnal; -Lou.sville~,---Kentucky; a newspaper<~of~ gene~ai cirot~lation, <throughout Ken#ucky-, and : ~ (c) im The ! 1)ai1y: Bond Buyer ; New::Ysork~;~ New York , a~.finanaial~ne~v-sp~.per o~ jopp~al o€-nat3~on~!vide cir.e~trlaton~.:among:-bond buyers;-~.an~ appro- pxiate.,-form of 'Ll~otiee~_of_Sale~of~;Bonds"-,- solcfiirig s~aled,~~competitive"bids°:•for~_thg~~ purehase::oi~--alL:the: bands: whch:,~,n; the; band-authori.rzing ordinance :areauthorized; 'the same ~to be-,r.eee~red ~ the,~offiee-.-of~ _the Cites El~e~k~ until -~ time at~r pr"ior=~to~;tle~ erccason of a -regttlar;;,adjottrned,,r or;-specal_meetingyof the•Board of~,Commissioner~s, `as:-the• Mayor raay - deter••mine. ; rupon :which- eeeasian ~h~ sealed,° _ competitive:::bids theretofore; ~r~ec:eive:~d in the: of faee.:of-:the: City ~ Cl~e~!k-; ~ ;afte_r -gubl:3c ~per~i~g ~-bey the ~ :City ~ Cl,erl~~rand tabulation .and comparison-.-~y ~,~-Vie--Eiseal Agent;-~sha11<,be ~.r,eferred-to the Boards of Commissioners•,for con- sderat~on; -,Snob-~ptlblic;:,natiee ,_sha~~ be~-pt~b°li~hed as provide-dr•i:n- KBS Chapter.<. 424; as amended>, ~no~~;less;. -than- 7-,-nor mare-tha:n -~21, °days i.r~~:;:advance: o£::the -date- stated::therein for - - the-opening•:,and ¢ansic~er~at-on-.~of_3pt~r~nasa,,~ds;:_~r: Su~:ii -noti:ce shaiY•~-regtaire `bd~ders~:to off-~=.-not,less thane-98--1,¢40 :oftthe €ace"arlaoun:t--o€~:the ,bon:d~s:-;~o-•-of€ered;:-toget~ex~ witch aeerued~:-interest ~.•from; -they: date; of , t;he= bonds- to ~ the': d~ate• ~of-;delivery.;. -ands shaiY- mequire bidder-s ~to,,stipu~a~e,:ons- qr-;m©~e inte-res:t c~upon~ftes:vf,t~:teir~=ownx:~choosing~~providi.ng ~eae-h. =fat-e s~ a., mulct plc of-.one-,eigY~t~rb; ~'orxe~tentY~: ; or - ox~e ~ ,twenti.~etlz • rot :one per ~~cent ~ (~1/:8 , 1/ 10 or..~/~2~4-.of-1 ~)~ dud- is -uo hgher--~-han 7-;3/~% per:-:annum;: andaniy> orr~ coupon rate ~~may be specified- for fond-s :maturing- arr~~he-s•axne~ d~ate~::- Coupon rates shaR~~~be on.:an ::ascei3:ding scale • in- that-=nor xtate ray-tie loTn~er?--than • .an~.~,-earlier:: rate.:, - ~ ~ Bidders ~ shall, b~ f~rther~ ~: advised that the City will not entertain any~_propvsa~l -that interesfi bec6ming :due ~.as Ito any bond on, any-in#erest~:payment date be:>_~epresented by more}•than~r~ne~coupon. Each bond shall- bear- interest.,al;~a=:sing}e~-:r,a~e- frQm~:date-•~to, maturity.'-^ the. eight to: rejeet~~bds- and to waive and>,nfor~al~tie~s,-or--irregularities; deemed-b~~~he ~~oar~k•.-of Commissionersf~to be im- material. -shall? expressly.-b:e~~reserwed ~; 152 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 not to manufacture such past-due coupons , in which event a certificate or letter` of the printer o"r '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 of June 1, 1979, authorized by - said Ordinance are- sold and delivered,~•the_amount received fr-om the purchaser as representing accrued interest thereon, shat immediately be deposited in the Bond Fund, Series of June 1, 1979, and shall be applied• toward "payment of the first interest coupons next thereafter becoming due . The remaining proceeds shall be deposited in the "Con- struction Fund, Series of June 1, 1979" , as hereinafter provided . ` From such deposits in said -"Construction. -Fund"~ tYiere -shall be paid all expenses incident to the authorization, sale. and delivery of the bonds , including the fee `of the F"fiscal Agent as contracted , and "° the- charges made by"Rating Agencies for rating the bonds , if any such charges are in- curred;~ and.: thereafter the, entire balance shall be devoted exclusively to the payment of - costs bf the- school building construction and reconstruction projects upon the sites described, and according to the plans and. specYficafions duly approved and filed as provided by KRS 162.16U 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 from its own funds various sums for..'architectural fees, amounts due to tYie contractors, and other proper costs of said project"s, the aggregate of all such =advancements may be reimbursed to said Board of Education upon presentation by said Board of Education to the Construction 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- they =amount or""amounts for which "reimbursement is requested. are~;proper:charges against the -cost of said school' building `projects; 'and (b) that after ~ such requested reimbursement, the funds remai"ning in the "Construction Fund" , hereinafter created, will `be sufficient to defray all remaining costs'of the- projects. No reimbusement shall be made: to said Board. of -Education if the"effect thereof shall be to re- duce the balance- in ~-said "Construction .Fund" below the amount- shown by the- certificate -- to be necessary to' pay all remaining'-costs: - -The proceedsr'of the sale . of -said bonds- shall be deposited in cash in Citizens ..Bank and 'Trust Company of. Paducah, Paducah, Kentucky" (hereinafter referred to as the "Depository Bank") , which is a' bank which is a member of and insured by FDIC , in a separate account designated "City of Paducah School Building-Revenue Bonds,- Series of 153 June 1, --1~9"79y -Construction .Fund"~ (:hereinbefore• and hereinafter for-~=conveniencesometimes referred •tcr-as the~~-~~!Corrstrucfiion Fund") ,:provided that -simultaneously with: the making of said -deposit;~=siich~ Depository °Bank shall-"•give~ security for said. deposit (to the extent of the -excess.--over- fhe~~amount -in-sured Eby FD"iC~=by ~maki~g a -pledge .to the City° Treasurer:; the said Board of Education and the City'of. Paducah; °Kentucky, of. obligations of: the°Unxted States ~ Go~rernrnent having a ~market-vaiue, •exciizsive' of accrued- inter_est:,~ at least equal to the-,amount-=soy-depasxted::•;_-The-.securities-pb~e~dgeri by the" Depository Bank need°no~t:be of a marke=t value exceeding tyre ~ baianoes ~renra~ining ~ in ~sa~id account from'.`Cm.e" to -trrie~~ and as pay~ents~ .area-.made~;~~out~>of~sai.d acccount- the ~Depositciry: Bank:~sh~.11--be~permitted='~to~ with- draw• •a~ portion -crf ..the': _gledged• seeurities~; `provided; :hotnrever thet`e hallremain-- p-le~dged at all 'tune - ~~securities:-having: ~a market value-, exclusive of accrued' ~interest;~- "equa-l.r-to the ba]:ance remaining-~in-said recount to-~therektent~~not- insured=by FDIC: ~-.= •- - " -~ : ",," ~'Tf. the ~,$oa'rd-•of°~~Comrnissioner:s~ of thefrCity< of~ P~aducah= Kentucky,shall ~ctetermine at any~ti7ne'~that'th~-`amourrt_=~of bond ~prnceedsTsb~eing held for- constr-ueton=;costs is in=excess -of~ the-:!amount -nen:es;~sary ~fo: `be- disbursed therefrom far fihe° authorized purp-oses~ during the ensuing=calendsr=month, its=may ~~(subj:ect~to~-the arbitrage covenants herei~nafter,~set`forth) direct the Depository Bank-.to: ~ i -,_ ,., -~: ~ ~ , : ~ ._ _-_ _..- , . _. .-_ _~ ~_ - - ~ • ~-- -(a)~ ~ make-, time =deg~osits:~there~of :orr ara: interest°bearin~g .basis ~ in= a~°bank~~or^ banks whicl-r ~ are "incur"ed°_-by ~ ~'DI:C ; evidea~.ced ~y.:cer~tifmcates of time deposit :braving- :maturity dates not~~later~°than~~:the^:d~es~"upon .wllich:it ~is•contempistecY tbe-•proc~eds~~:tbrereof'wr11=be•~needed fore prop~er-~purposes- of~-said Construction°~Fund~ (issued in 'th'ey:na:me' of~'said. Construction Fund~~~anci deliver~ed,•3nto:>theT: cizsto~dy~ of~ thery~epo:sitory-Bank), ~ :secured =~ati alr times=.~Y a pledge";ron=th~e~--part ~of-~each°° issuer~rof ~arcertficate:-of tixne.-deposa=t, :of o}xligations~.of-.~the United-"State~~~~Govcrnnrent:; ~~.or.- abligationa-tlie-prirrcipal~~ and ~~nterest` of~wshich are,::fulay guaranteed by ~"the~~~ffinited Btates~~rC~o~rern~nent having: at ~ ail ~t"'rmes~.t:du~rng=~>tYte~ continuance of the°-certr`ficate~a c•t~rrent~market.+valuez(e~clusi~ze~:iif~:accrued interest~,~at~lea=st-=equal: =to the amount. riot: insured==~Y _i~I~LC, °:tkre r~custod~i of °sueh~pbedgecb United ~ States Governmen+~ se~rities wl2ether~=aetuai'~-or~=constructive,:•~ta~be-~in-~a.~han:ciaxl°_-institution°:ot-her.=tlian~ the issuer>>vf•thercertifi~eat~~~of times deposit,•in question.;:.:ors-. .~ ' ~ T -.~ ~ ' -- -~ - ~(b)~r -invest ~sueli~~,excess'-in~~-obiigations~-of~the .IJi~itedsStates .Government- or' obli:gations~ the prxrlcpail-sand-:interestR•~of:~whi:ch:~are- fix~rly .guarantee~3•iy the'Urrited`=States Goverrrment,.:having rrriaturri.ty datesY:or :being-=subject to:~reti~eYrient °at=~ftie op'Ci~on~`of-=tlre holder -not ~ 3eter~ -than the ~~-ciateis =upon ~vhieli it` is=ra~rti.cipated~ •rhe=~~px~~3ceeda•=thereof r ~rill`~ b'e'•~r~equired or proper purposes of .the ~ ConstructionFund :~= ~ '~ ~ -~: <: ~_ • -- - . ._- `~ ~ ~: - - _ ~~ ~Provided: however , .that. such: ~se~urties, an~i~or ° certificates J.of ~tinie deposit shall bye re~convex~teel •int6~-~ca.~sh~arid -depositeri ~in ^said=~Construsetion: ~'und~,: as-'and= where - a~d~ditional cash is requiredTto•;pay:=carrstr;txetio~n:{costs,:-. s_u~h<-convey=sion>intoccash~.ta=be::m~aiie -1~~ the Depository Dank;::~wbZert=-necessar3~,'~wthout~further:authority.. -All~such certificates :to time 154 deposit and securities shall be carried to the credit of such Construction Fund; and all income therefrom shall be deposited., as received, in said Construction Fund and cons- stitute a part thereof . Any expense necessarily ,incurred.. and reasonable as to amount in connection with the making: of such time-deposits and 'investments' and the safekeeping thereof: shall be paid out of the Construction Fund.` °inasmuch as the School Building Revenue.. Bonds, Series of -June 1,' 1979,. herein referred to, ~wiTl be authorized and issued by the City at he request of the- Board -of Education of Paducah, for the purpose -of'- paying the costs of adding to, construucting and re- constructing school buildings to be .leased ,rented and occupied by `said Board of °:Education under' the "Contract of Lease ind Rent" conforming to KRS 162.140, it isdirected- that pay- menu .-from-- the ~ cash -funds from time to dime so °deposited in- said Construction Fund shall be made to defray the -costs, of the: school-building projects referred to .herein by checks drawn upon-said°:fund by--the Assistant Treasurer of the City of Paducah,` Kentucky, here- by designated as he - "Construction Treasurer-" , rather than-by~ the City Treasurer (it having been agreed that a-:designee of -the Board of Education will be-appointed. Assistant City Treasurer expressly for- such purpose);' provided, however, said Construction '-Treasurer shall furnish a fidelity bond in the penal sum of at least $200 , 000 , -conditioned upon faith- performance of the `responsibilities incident to making disbursements from the Construction Fund. ":Series of June 1, 1979" (which fidelity bond.- may also cover said "Construction Treasurer" in connection with disbursements made from the "Construction Fund,. Series of February 1,- 1979" , -and other similar Construction Funds which may be similarly created and established in :connection with the -future issuance by the City of other "City of Paducah School Building Revenue Bonds'' which may :hereafter be authorized and issued) , and the -making of a true- accounting therefor,. sucY- bond to be separate and distinct from any and all -bonds given for the administration of other moneys, and to have good- corporate surety, provided by a surety company qualified to do business in Kentucky.:: Each disbar ement check -shall be supported and accompanied by a voucher signed- by or on behalf of the Architects having charge' of the supervision of: the project for which.. such payment is made , to the effect that the amount of said check -has been earned by the payee thereof under- the terms of one `of 'the construction contracts; provided , _ however ` that with respect to the project appurtenances, and other items required otherwise than as an incident to the construction. contracts which -are under the supervision of the Architects, the supporting voucher 'may -be signed by the Superintendent` of Schoois of said Board of ~ Education or 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 projects on .the sites de"scribed -herein, according to the plans and specifications filed in the office of the City Clerk , approved by 'the Board ' of Education of said. School District and by the State Super- intendent of Public Instruction, any balance remaining in said Construction Fund shall be 155 transferred to the "City of Paducah School Building Revenue Bond and Interest Redemption Fund , Series of June 1, 1979" , 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 "Contract of Lease and Rent", hereinbefore referred to; or may, at _the request of said Board of Education be held and used in said Bond Fund, Series of . ; - -_ ,- . June 1, 1979, pursuant to the provisions of'~Section 8`"hereof. - SECTION 1~8. (A)" In' this Section' finless a different meaning- clearly appears from the context: ` (i) ' ~ -"Code-" 'means the Internal R`everiue~ Code' of` 195~1'~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 Regu- lations 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 103 of the Code shall have` ther`meanirig' given ~fo ~ such words `in or"~ pursuant' tosaid' -Section; .~... ~ "(ivj~` "Bonds" means the'"'City of PadizeaY School Building Revenue Bonds, Series of June 1, 1979", the sale of which Bonds will be authorized in and by the Ordinance which will hereafter be' "adopted , authorizing' the afore- said "City of Paducah School Building Revenue Bonds, Series of June 1, 1979" : - ` ~ - '(v) "-Board of ~ Commissioners" means the Board` of Commissioners of the City of Paducah, Kentucky, .acting according to KRS 162.120 to 162.290, ' inclusive:. ~ _ ..- ,. (B) The City of Paducah and the Board of Commissioners shall at all 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, Series of June 1, 1979, shall, for the purpose of Federal income taxation, be exempt from income taxation under any valid provision of law . (C) The City of Paducah and the Board of Commissioners shall not permit at any time or times any of the proceeds of said Bonds or other funds of the City to be used directly or ,indirectly to acquire any securities or obligations the acquisition of which would cause any such Bond to be an "arbitrage bond" as defined in Section 103 of the Code as then in effect and to be subject to treatment under said Section as an obligation not described in subsection (a) (1) of said Section, unless, under any valid provision of law hereafter enacted, the interest paid by the City on the Bonds shall be excludable from the gross income of a recipient thereof for Federal income tax purposes without regard to compliance with the provisions of Section 103 of the Code . (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 having custody of any moneys 156 related to the Bonds to invest (and said Board of Commissioners and financial institutions -. , shall not invest) the proceeds of said Bonds in any obligations that produce a yield in excess of such applicable maximum yield as~ may be permitted by the Code. .. ... .~~.. ..__ -,--.° ,'--err -,,, ..-.. __.. __.. - -. ... _.. (E) More specifically, at the time of the adoption of this Resolution and on the _ ~, .. . basis of the facts , estimates and circumstances presently existing: ,- --r• .- - -- ,-.,- - - ,- -, - ~ .. (1) It is not reasonably expected ythat~ the proceeds of the ~ Bonds available for the school, buildings-, p~oj.eets. her-ein- referred to wi1L;,exceed: the actu~.l amount necessary to be expended for such purpose by as much as ~5~a, be- ~:--,--, -x- -~ cause=ahe--size,~of the-~ond~~~sst~e=,v~i1 b~-;determined on the; basis of actual _ _~ _ _ contracts , and the provision for possible change orders and unforeseen con- tingencies will be small; _ -:; ...- ... . , _ .(~)~ ~~4t,- least-, 85 0 of the; spend~.ble..p~oceeds_;of th ,Bands-will , .~ -. _ , , , . ; ~ _ ~ .. - ~,.. ;_ _ ~ be expended ' g p j ears--from,;.and after the date for-. the ~ •school buildin ro ects with~.n three y ;..... -, ,,=~: of-..delivery of;the: Bands., ,~..,-r - - _._.- _ - .. _. .. ... (3) Money received from the purchasers of the Bonds as representing ac- crued interest earned at the time of .delivery of the -Bonds will_ be applied :- ~ r -to- the Trpa3~~ent - of --the fir-st;. ~nter.~st ,coupons therea.fte~.~ maturing,,. inasmuch . .- .. .s .. - .- _. ~. as it is specifically provided in this Resolution that..-such shall be done; (4) Contracts for the services of the Architects. have been entered into and -., - contracts_ fors- construction ;of aloe ~rqj>ec~s: ~vill_.haVe been entered into prior to the issuance of the Bonds , since this is required by the statutes pur- - -su~a.nt ~to , which >the Bondsf will be ~ssued,N .and ,the amounts of such contracts will• vastly ;exceed the _ sum -of $100., 0.0.0 and vastly exceed 2-1/ 2 0 of the _ : . ,-., _. .. am~oux~t, of ~-the boxLd-. issue,, -..,, .... ~ ,.. - (5) The school buildings projects will not be sold prior to~:,the final maturity of the Bonds, except that the "Contract of Lease and Rent" herein authorized - ~ between- xhe; City- and the- Boe.rd-. of _ E.duca.tion -grants to the Board of Educa- tion 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 r havi ,, F .. .. , , ;_ . ; - .._. , ng responsibility for the issuance of the Bonds and investment of funds, and by . the Construction Treasurer herein given authority for disbursement~~of the proceeds, of the Bonds, that on the basis of the facts, estimates and circumstances in existence on the date _ ., .. ds , including the matters specifically stated in the foregoing paragraph of issue of said Bon . ~ ~ _ (E) , if they are 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 such `obligations to be arbitrage bonds, -. _ such certificate to be made in accordance with the provisions of Internal Revenue Ser- vice proposed Regulations 1.103-13 (a) (2) (ii) adopted by the Department of the Treasury, Internal Revenue Service, pursuant to Section 103 (d) of the Code. SECTION 20. The provisions of this Resolution are intended to be incorporated .-.r,.._ .. -_.., T,_ .. - _ . - ,.. - by reference ~as a part of the Ordinance, to be adopted at a later time, authorizing the Bonds _ . _. -- herein identified , and if so incorporated 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 pursuant to the provisions of said _ - Ordinance and after the sale of any such) bonds or coupons , no change in the provisions --- - - .. _ 157 hereof shall be permitted while any of said bonds and coupons remain outstanding and unpaid, except as expressly authorized herein, or in the bond-authorizing Ordinance. SECTION. 21, All_ Resolutions, or part thereof, in conflict with the provisions of this Resolution are, to the extent of such conflict, hereby repealed. SECTION 22. This Resolution shall be in full force and effect from and after its adoption and approval, no ,.publication being required by law. SECTION 23. This Resolution, upon its adoption and approval, shall be recorded or filed in the office of the City Clerk as other Resolutions of the Board of Commissioners are recorded or filed , and shall constitute an official record of the City of Paducah , with the intent that_the text hereof, or any part, of the,text .hereof, be incorporated by reference in abond-authorizing Ordinance to be adopted at a later time, particularly in order to expedite the authorization and issuance of School Building Revenue Bonds, Series of June 1, 1979 , under very restricted time limitations . ADOPTED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, at a properly convened meeting .held on the 10th day of April., 1979. APPROVED: Mayor protem (SEAL) City of Paducah, Kentucky CERTIFICATION :~ I, the undersigned, City Clerk of the City of Paducah, Kentucky, do hereby certify that the foregoing is a true .and complete .copy of a Resolution... adopted by the Board of Commissioners of said City .at a ,properly convened meeting, held on the 10th day of April, 1979, on the same occasion, signed in open session by the. Mayor Protem. as evidence„ of his approval, attested under seal by me as ,City Clerk , declared by the Mayor Protem , to be in full force and effect and ordered. to be recorded in my office . WITNESS my signature and the seal of said City, this, 10th day of April, 1979. City ler City ~~b( Paducah,. Kentucky (SEA-L)