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Home My WebLink AboutSchool Bldg Revenue Bonds (4)320 _ A RESOLUTION OF THE. B,.OARD OF C.OMMI$SIONERS OF THE:.CITY OF h PADUCAH, KENTUCKY., ACKNQWLEDGIING_, AS A, MATTER: OF _ OFFICIAL -RECORD AN EE .ENT OF THE. - CLTY. _OF .P r „ ADUCAH_~ND_,. THIS B;QARD-. OF .COMMISSIONERS ,TO - - COOPERATE WITH THE BOARD OF EDUCATION OF PADUCAH,..-KENTUCKY, IN THE ISSUANCE OF,_ "CITY_OF PADUCAH. SCHOOL ,BU,ILDING, REVENUE BONDS:, -SERIES OF OCTOBER 1, 1979" , IN AN, AGGREGATE PRINCIPAL AMOUNT WHICH, ,CAN~LOT. BE ; . __ _: DETERMINED UNTIL CONSTRUCTION _BIDS,HAVE BEEN_PUBLICLY RECEIVED -AND COM- PARED; 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 ONE OR MORE DEEDS OF CONVEYANCE, ,THEREOF.. WHEN TENDERED; - AGREEING TO- EXECUTE WITH .SAID BOARD„OF ,EDUCATION.. A,_"..CONTRACT -OF LEASE;aANI},-RENT" ORMING TO. .THE„ REQUIREMENTS OF KRS. =162 ...140 .IN;.. ORDER- TO ,,PRODUCE: TO ,THE CITY RENTAL REVENUES FROM WHICH THE PRINCIPAL., OF AND II~.TER,EST ON_ THE- BONDS, WILL BE~ PAID; D.E.SCRIBING IN- GENERAL..TERM.S -THE:- SCHOOL BUILDING PRO- JECTS TO BE CONSTRUCTED AND RECONSTRUCTED.-UPON THE RE,SPECTIVE~--SITES AND FINANCED THROUGH THE ISSUANCE., OF :SUCH BONDS;,,.PR,ESCRIBING THE FORMS OF THE. BONDS _AND_ INTEREST .,COUPONS;. NAMING., THE .B.ANK WHERE; _PRINC:IPAL- ~ AND- :, E; PROVIDING FOR -THE, RE;CEIP.T , OF..; RENTALS PURSUANT E T WILL BE PAYABL, „ _. _ . _. } _ _ , F„ LEASE .AND., RENT!',.-, AND rTHE CUSTODX .AND: -DISP-OSITION TO THE CONTRACT O .. _. E - , t IBING T „ ., HE„_ COVENANTS ,,TO. BE MADE _WITN THE-: HOLDERS: OF THE .: BONDS AND COUPONS, AND ARBITRAGE COVENANTS TO COMPLY WITH REGULATIONS OF THE INTERNAL. REVENUEi SERVIrC,E;._~ PROVIDING. ~'O.R,:THE,.: CUSTODY', ,S;~3FEKEEPING AND DISBURSEMENT OF, THE., PROCEEDS OF,.THE BONDS,,.-AUT,HORIZINO ADVERTISE- ,., ,_~ MENT OF THE BO1vD5 , WHEN AUTHORIZED.. ~B.Y .ORDINAN.C. E , AT AN .ADVERTISED PUBLIC COMPETITIVE SALE: IAN ACCORDANCE WITH .THE REQUIREMENTS OF KRS CHAPTER 424; ALL TO, THE END THAT THE._S~UBSTANGE AND DETAILS OE ,'THIS RESOLUTION MAY BE INCORPORATED BY REFERENCE ,INS-THE ORDINANCE,.-TO BE _r ADOPTED LATER, AUTHORIZING:. THE ISSUANCE, QR SAID .B,ONDS r~,-Il~ ORDER:;TO EN- ABLE THE CITY TO SELL AND DELIVER. SUCH BANDS-,-I!a1ITIi~~T THE VERY >LI1ViITED PERIOD OF TIME~'WHZCH_ WILL B~ -AVAILABLE, ANU,.RECITING, THE LEGAL AUTHORITY FOR PROCEEDING IN THE ANNOUNCED SAND INTENDED MANNER. ,;. .: - . WHEREAS,, the, ,..,Board of,Educaton..of,Paducah-; :Kentucky., ;with: the approval -. R;:--. 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 ., ..- ,.- ~ .r,. . for the undertaking of two substantial projects for the construction ~ of school build- ings which will constitute (i) additions to the existing buildings at Tilghman Senior High School and (ii) additions to convert Brazelton Elementary School to a Middle 321 School, both projects being in the Paducah School District, together with substantial reconstruction of said existing school buildings; and in that connection the Board of Education has agreed to convey to the City of Paducah the sites of the respective construction projects as' provided by KR;S 162.120; and the City of Paducah and -this Board of Commissioners. have agreed to aceepf one- or more conveyances df theschool sites when tendered by the Board of Education, to authorize by Ordinance and according to ~ the authority of KR;S 162':120 to 162.290 "City of Paducah School Building Revenue Bonds ; .Series of October 1, 1979" , to provide the costs' of the construction and reconstruction program, the fees of the Architects, the fee of the` Fiscal Agent, capitalized. interest and other costs, such School Building 'Revenue: Bonds to be offered by `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 wills lease said"sites ~ and the buildings to be constructed ~-arid reconstructed thereonr fora periods of one-year, with ~exclusive~ options to the- Board ~of Education to-renew the sa-me ..from' year tozryear. ,tfiereafter, 'for one' year at a time, at rentals to: be~~payab~Ye semiannually: so: long as such lease ~instru= meat is renewed .and remains in effect; sufficient ~to enable the City to' pay, solely from such+ r"entais:;_ file principal of and interestcon the School =Building Revenue Bonds which .the:' City has ;agreed tor.-issue , and :also the ~ costs of maintenance `and ~ insurance of the properties, to the extent.-nox~~paid by' the" Boards of Education as lessee.;' and• " the City and the Board of Commissioners' have agreed to ent.e~~~_into st%ch ''"Contract of Lease and ~Renf" when `tendered acid found to. be in accordance with statutory _ . _. _. _. requirements; and : _. _ _ _ . -~ "_. . • :: ~ - -WHEREAS;:-the plans a.nd~ specifications.prepared by the Ar%chitects have been approved :by 'the ~Superintendent~ of:.Public~ Instruction= as required Eby ~KR,S ~162~.'150 ahd filed in~.the' office of the -City-.Clerk:,::~and'~ because of the°pres_sure :of time as' herein- after-;recited; the zB:©ard ~of~ Education-hasccaused advertisements to boypublished ~in its own name. •soiiciting-the-: submission of .co.~npettiue construction bids.; ally in ~ the= ' manner rrequired by law . and: izn ~ the manners which they Cityitself ~ is "required to follbwv~r~n. such matters;°~so: that~it:_is iri order for: the~City.~to agree that~it='will ratify and radopt..construction contraets;award~d by they-Board of Education'on the•bass' • thereof rand--. -- -. __. ~ .--~ -' -" .,--- _ :,. ~:~, . -. -: ~_WH~EREAS • the Architects have ascertained t+o ~ theirsatisfaction ~ that ` by reason af~,~contintzally increasing costs-_~of-labor-nnd materials attributable to inflation; con- struction 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 ~ p~ayable~ `from-` bona-;proceed~S~ i~ is -necessar~,y -t~at:,the ~=prvspective:~School° Building Revenue> Bonds be 322 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 approval of the last of the construction bids, presently in process of tabulation by'the ArcYiitects, so that it- is necessary to determine at this time as many of the details and provisions ` of the `bond issue as may feasibly be determined, `leaving the. 'amount ~-of the bond issue, "the maturity schedule of the- bonds and. the amounts of the annual rental payments~to~°be made by the"`Board of Education... to the, City under the terms of "the "Contract. of Lease and Rent" to be "~ determined in "the bond authorizing Ordinance when such detaz~ls are ava°ilable; alI to the end that-<this Resoiution~ may^'be m'ade a matter of official record= in the" office of the City Clerk and may be incorporated by2reference into the bond,:-authorizing Ordi- Hance ; thus ~ shortening the text of such Ordinance and enabling the Board of Com- missioners Yo give such bond Ordinance two readings, a week apart; as required by KRS 89.590, to ~ "allow ten (10)~ days:- for the Ordinance to become effective after adoption, to advertise the- public -sale of -the bonds according to KR,S" 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 (6U) days; and WHEREAS ; legal authority for the adoption of this Resolution as ~ an official public record of the. City , -and for incorporation of the provisionsi hereof by reference in the bond- authorizing: °Ordinance which- cannot be -prepared until a "later "date, ~ exists in a decision "of the: highest Cpurt of the Commonwealth in the case of -"City of Hazard v Collins (1947):;- 304 Ky:. 379, 200 SW2d 933, - -NOW, 'THEREFORE; THE BOARD OF. COMMISSIONERS OF THECITY 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 here inafter described, according to the- plans and. specifications prepared by Architects employed by the Board of Education and approved byahe -Superintendent of ~Publie Instruction" and by-the~ Board .of Education. of Paducah; ~ this agreeinerii being con- ditioned only upon the performance by the -Board of "Education of Paducah of all actions required by KRS 162:120 to. 162.290 to be performed on its part:,. as herein- after more particularly set forth, it "being clearly understood " and ' ogre°ed 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 b"ondsfrom 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 cou ons a ~ " p ppurtenant thereto , in any manner' payable from -the general-'funds 323 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: - . , _ . ,,., - r. .. - :. . • ~ ~SEC'TION 2. ` Nlor'e:sp.e''cifcally the Boarzt'°of Commissioners, =acting for the City of Paducah, .hereby ~agr~ees: - ,~ ;.-,- ,.. .. ... .- - ~ --(1) The--Board `of -Education .has .agreed,- as required by KR;S 162.120, that it will execute and tender to the City one or more deeds whereby said Board will convey- to the: Ci~y~:in fee simple~~,: free oftsll~-encumbran~ces~~~.and with. covenant of general-warr~anty.of -title, .the- site~_of the two achool: propertes.° upon: which buildings are sought to be constructed and reconstructed, the same being particularly described, as follows: - - -- SITE OF PADUCAH TII;GIiMAN SENIOR HIGH SCHOOL -:: Lots ~• 91 through -:16:,~~~:irrcli~ive , _~b1oc'k -~2 :nf Do~s~sett's:- subdivision ;:of the City of Paducah as -'shown on ~ Plat Bovk ''D" ;` page 23 in the McCracken County :Court Clerk! s :Office , -_ eaeh~ i~f~ said lots fronting 50 `feet on the .South .side of Clark Street, ands extending back in a southerly 'direction - - 200 feet~~to~'analley-and said `lots comisrising all~'th'at portion of•pro- perty lying on the South side of Clark `Street between'24th' Street and .. .. 25th Street n~ ahe~ ~~City. of ~ Padtzc ah : ; > - • .... c, • ~ : - . ~ . . ,. - -~r:ISots- '17" through 24,y ,inclusive,. Block l~. of rpossett's stzbdivisian.as shown " by~,glat of said subdivision recorded 'in~`Plat Book "'D" , page 23.; in the . j, - : NIO.Crackeri 'County> Courts Clerk's Office ; ~ ~each~ of~ said:, lots fronfiing 50 feet on the North side of Clark Street and running back in a northerly dir. ectiox~ 1&5 .feet :to . any alle ~' y;_;and~~said lots=~:comprising•:all that portion of property fronting on the North~~sde of Clark Street between 24th . , .; 5treet~. and_- 25th .Street in they City of::Paducah. ~ ,,_; ,. ._ . :.. ~ ~ - . Traet IiI ~ . . r.; Lots 2'° through a 21-; _ inclusive , of. O' H{ : -Shelton's ~ Addition _ rto the City of Paducah, ° Kentucky; as` shown by plat "of 'said addition- recorded in Plat ~~:,Book,rrAn~ ;,pages~.184,'and 18.5`.~~ ._,1.±:,'..:,.:r - ,., - -. .... . - Tract IV ~- Beginning at a point where. the ~South~!line~ of Lbt~-No~~l'~of: 0 H~.=~ Shel- ton's Addition intersects the East line of theland of 'the `West End Im- provement Company , being the same point where the South line of the parcel -of ~ real. estate conveyed to E . J . Paxton by the West End _ Im- provement Company by deed dated January 20th, 1925, recorded in Deed Book 142,'page 372; `aforesaid Clerk's Office, intersects-the East line of the land^• of the West.~End Improvement; thence" West~rardly with the South line of the parcel of real estate sold by the '.West End' Im- provement Company to E . J : Paxton to a point where the South line of E . J . Paxton's parcel of real estate intersects the South line of the land of the West End Improvement ~ Company in the East line of a 15-foot alley in O . H . Shelton's Addition , common corner of Lot No . 2 of O . H . _ - ~ , S~helton's Addition. ~and~ E .-~:J~: P~axtori's ,parcel ~:of • real• estat~e~; -'thence East~rardly with the- South dine of,'theland: of the West End Improvement ': ~ Company: -to : a .point :where said line intersects the, forth 'line of Lot No . " 4 of O . H . Shelton's Addition; and thence in a Northerly direction on with tYie East -line of the land .ref :the-~West~ Erid~ Improvement ~Coiripany to the point of beginning. - .. _...;.... , Tract. V ~ ~ _... ,, :: _ Also, all that property heretofore included in gallstreets ~ and alleys in Paducah, Kentucky, in the area bounded on the South by the North line of Adams Street and the said North line of Adams Street, if 324 extended, on the east by the west line of 23rd Street, and the said West line of 23rd Street, if extended, on the north by the South nine of Washington Street, and on the west by the East line of 25th Street, except, however, the alley extending from the east line of 25th Street - to the west line of 24th Street, and situated between Washington and Clark -Street, and •except that portion of`24th Street between"-the South line of said alley, if extended, and the South line of Washington Street. Said former streets and alleys reverted to YGrantor. upon clos- ing of same by judgment entered in the McCracken Circuit Court on "the 1"6th-day: of`-February 1954, -in an ~etion styled "City:-of Paducah vs . Board of Education of Paducah, Kentucky" . Being, in part, the same property conveyed to the City of Paducah, Kentucky ~- by; the Board- of~ Education of° Paducah, Kentucky, by 'deed dated the 20th day of February, 1954, recorded in Deed Book 246, at -- - _ page- 28'9:; ~in the office of the Clerk- of ahe~ County Court of McCracken County , Kentucky . SITE OF BRAZELTON ELEMENTARY SCHOOL (To Be Converted into a Middle School) - , - _- Tract I , .- Beginning at a point where the northerly line of Adams Street intersects with the easterly line of Lovelaceville (Lone Oak) Road; thence along the easterly:-~line of Lovelaceville Road 398':4Yfeet:more or less°to the -- -- -southwest;.-corner-~;of property '~a~r~owrred-by+~Team Supplg; Inc.-;: thence `. at an interior °angle~ of appro"Ximateiy. 11T degrees` .44 minutes along the _. -; _ ,southeasterly. iirxe~: af:pa~operty~ _ow~ned-~ by.: Team :Supply, :Inc . ;° X20:8_. 42 feet to a point; • thence at an interior angle- of '90 degrees 39 minutes .and along -~ the ~1aste~3y.--~ine~ ~o~ property-~awtned ~by~ Tream"Supply; Inc :. , in a north- westerly direction 162.7 feet to -the `southerly' line: _of Clark: Street; thence along the southerly line of Clark Street in an easterly direction 400.3 feet to a point in the westerly line of property owned by A. Allen (same be- ing 30 feet east of the northwest corner of Lot 8, Block 30, as shown by plat of -the' West End Improvement Company :found in the' McCracken Cir- ~: cut. Court ..Or.der:Book~~YYYY- Page 278A):,~•.thence al .right angies in a southerly- direction and with =tYe westerly -line of. A . "Allen 15$ : 68 feet; .:,-:the:nee~in -pan .;ea~te~ly _~direetion°,--alorig.~ the ~sautherly~~hne of property owned =- bye A Alen -arid -parallel to `Clark Street 183.03 feetmore ors lea's to a ~p~oirrt-~29 ;3~ ;feet; ;beyond the :southeast corner of~ A ::>.41Yen;~ thence : at an interior angle of approximately 19- degrees and yin a westerly direction to a point on the easterly line of the tract formerly owned by Terrell; thence at right angles in a southerly- direction 27.5 feet, more or less , to the northerly line of a public alley; thence along the northerly line of said - ~ alley in -;a~ westerly ~ direction 644.'63 feet;. hence' at right angles and in a --southerly-drecton 165-feet~to-;thy-northerly~lirte`~of Adams~8treet:; thence at right angles along the northerly ,line 'of: Adams Street 'in a;westerly di- rection 340 feet, more or less, to the point of beginning. Being the same property conveyed to Board of Education, Paducah, Independ- ent School':Distriet `by the following.: deeds- of .record in the- office of the -~~ ~1~eCraclten-~County,~,CourtiClerk; ~ - .. ,r~;-:- ~ ... .. ---Date - _ ,, .; ~~. .-_ .., ~ .. ; Deed hook/Page Number _ - ,, March ~7.:,~--1~9~65 ~,;.- , . .:- .,; : -~- = 465 .. ~- ~ : 83,.- - December 18, -1925 °" 148" - 344- ' AprSiY 15;.:124 - : - - ;:~ ..-~~:~ ; ,..- 1~8, r-= ~_ -.466 ; .:, ~ - , 'pctober 10; 1873 " - X' = 72 -. ~ _- - : Tract `-II _, Being Lots No . 34 -~ No :: 35 , No-.- 3 6"~ and No . - 37 , iri the Schmaus Addition -~-~-, to;the Crity .~of; Padixcah,_ Kentue~y; asr~sYiowri~ by ~a :ghat recorded°:in Plat -Book "A"; pages i90~191; in the-::Office of the .McCracken~C'ounty Court ~tClerk-and fronting 200 feet;~on`xhe Norfih~:si<de of: Ad~a.ins Street and extend- -- ing northwardly a uniform width "of 150: feet to the "south line- of a 15 foot public alley. -;~~~_~. ~~ .. ~y Being the same property conveyed° 'to Board of Education , Paducah Inde- pendent School District by the following deeds of record in the office of >tYier McG~racken -County C~ourt_~Cerkr ~:' ~. ~ ,, . _, ., _ _: 325 -Date ..... ... . .. . .. :_ ,: _,., _ . . ~ Deed Book/Page Number ,.,. -March .1, 1965.: ;_ .: ~r~~._,_ ,... ._s 465: --:, .: :80..-. ~,. ; : _. . ;:•- , July 14, 1952 602 - 424 . - -r-: -. .-: .:;.:1,97:9::. _..- _ ._. ~~ - - .,. ~ c;. ~. ; . :~Tra.cts;lfand~~~II .are: separ~ated~ by two-intersecting publicalleys, -one'of , which fronts 20 feet on Adams Street and extends northwardly a uniform - ~ -width>:of:.2D- :feet for a: distance 'of. ~ 165 ~ feet where it ~ meets perpendicularly a second public alley which runs parallel to Adams Street and which `~ : - extends. a uniform .~nridth~ of =,15~zfeet- along the .northerly-line of •Tract IL for a distance of 200 feet. _ _. is _ The foregoing Brazelton School Site , comprising Tracts I and II , being the same propertesr-conveyed .to.~the :City >of Paducah, Kentu%eky;: by the Board of Education of Paducah, Kentucky, by Deed dated the day ~~ of: S~eptemher;.,1979;.reearc~ed in, Doed Book ~ .., <,,,, at page , in the office of the County Court of McCracken County , Kentucky . :,; ;hr's ~ ,, _ - _ ,. 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 _ ... - -. ___ ..,.., ,.., r_ .,__ _.. .. -. .,. ~, ., 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 con- . , -: structed 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 hereinafter set forth. Said lease instru- ~~,, .. - - ment shall also provide that so long as the same is renewed by the Board of Edu- _ cation 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 .,,,,r . .._ __~ _.. r .. - ... _ .- Bonds issued by the City, as and when the respective bonds and interest coupons ., ,,...t, .- ... _ .~ _ ,~ . _, ~ . ... _.. 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 ,. _., ..._.._ ,,_...r .. -. , .. and the cost of insuring the same against fire , windstorm and all of the hazards covered by the standard comprehensive or extended coverage endorsements, such insurance to be in the full insurable value of the improvements upon said sites, to be for the benefit of the bondholders, and to be written in the names of the City of ...,, ...r.., ... .,._ ..._ ... _.. , .,. ,, Paducah and the Board of Education of Paducah and the bondholders, as their -. f 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 326 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- -calved for redemption and retired, and-=obtain a reconveyance of the sites and all- improvements thereon from<. the City to the Board of Education. free ~ anet: cleaxh:~ ofs-a~li ~-elains-.•:of ~the`~bondholtlers; Eby • praying to ahe City an.amount :.off::maney.~sufficentc ~ta -enable the :City to• :cull and :redeem ~ all of ~ahe then outstariding~ bonds:,:=including interest t~~ the'redempfiinri ,date and• the proscribed redemption premium as hereinafter set forth; and said instrument shall also assign to each ofi the ~ twoschool :properties, an estimated,! ~percentage• : of :the • total af~nount of the bond is sue representing , as ~ nearl3r ` as- may abe , -the ~ amount of . bond ~ proceeds to be expended on each site, and shall grant to the Board of Education options to purchase and re-acquire title to any or all of said described tracts , and the improve- ments thereon, upon paying to the City an amount of money sufficient to enable the City to call, redeem and retire that specified percentage of the bonds then outstand- ing, in order that the Board of Education may re-acquire such title in the event of • a..~ _ ~: 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 Gresham-Keeling-Jones, a firm of licensed Architects, ,~ .. .. .~ . _ ~ _ _. having their place of business at 1203 Broadway, Paducah, Kentucky, under the terms of which said Architects have been employed to prepare the plans and specifications for and to supervise construction and reconstruction of the school buildings upon the site of Paducah Tilghman Senior High School, hereinabove described, and such con- tract having been examined and found to be satisfactory as to form and substance, the City of Paducah hereby approves and adopts said contract and agrees to the terms and conditions thereof; provided, however, all compensation payable to the Architects thereunder and all expenses to be reimbursed to them thereunder shall be paid to them by the City solely from the proceeds of the School Building Revenue Bonds -. -- and shall not be a liability of or payable from any other resources of the City of 327 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 arid= on behalf of the :City :with his signature. attested° under: seal°by rthe City Clerk:°~ r:, _,,... ,_ .. ., _.. .. _. -~ X41- ,~ The Board bf iEducation having-: tendered -.to the: City : ~ _ contract ~~made by -the Board,of Education with Gresham-Keeling-Jones; Architects, having--their place of -business~~,at : x:203 Broa. dway ; ;Paducah ; Kentucky , - under- the:: terms of which- contract said' Architects :have been ~~:employed _ to- prepare ~.the:::pians and sp-ecifications for :and to supervise-;~ans~tructign and,~:reconstructian ro€ the -s-drool. buildings upon the site of the Brazelton .Elementary-; School ~ ; Yiereinabove = des:crihed;~ and such -contract' having been. examined-`and found to-be satisfactory=-as-to form and substance, the City of Paducah hereby approves :and:- adopts said- contract and agrees to the .terms and.conditions thereof;- provided>--however:;-~a11:; c~ampeneation .payable: to `:the r~Architects~thereunder and- all expenses -to- bereimbursed ao-.them-` thereunder- shall: be paid to' them b_y ahe City solely from the proceeds of the School Building Revenue Bonds :and shall not` be . -a liability Hof or payable-from any- other resources of the City of Paducah . Said contract of -. the Architects mag b-e endorsedt to show this : approval~~, and ~ acceptances by they • City-; end the -,A!fayar is:--hereby -authorized- .to signs such-. endorsement in the : name and~-on behalf :of;the ~Cty -.withchis-signature~atrtested: under._ seal: -by the ~Eity ~Cierk:~~~ :,,-(.53~ ,,:The :Board ;of~~Education Yraving:;tendere~d~to:.xhe City; a fiscal. agency con- tract madeY by , the~_ Board.: of:-,Education Tnrrth~ J : J : B .:. Hii~liard,::; _~ W : L : hyons , r.Inc :: , .a ~.. licensed: ;Municipal-Bond -Dealer having: offices ins houisvillt~ and:,Paducai~~;: Kentucky.;.: for its services~sand E ,expenses in providing financiai° advice :concerning the--amount of:::the bond issue-~thei~details th~reo~f,:~:~the -offerin.g .tYrereof at~pttbli~ saao, the preparation. of a proper: , "Offi~cial~ Stateraient~'~-to =17e:. furniah~d ~ to `lprospectiv~'- bidders:providi~ng~ to:° them all information necessary and pertinent to-a'proper-:evaluation.-of~ahe bonds';: and, -~ employing -at- the =Fiscal Agent's~-expense recogni-~d Bond :Cduns.el to:^'prepare ordinances , resolutions; -deeds+and~,other; instruments involved, said fiscal agency>ebntract is hereby apgrowed ~ and .adopted - by~ the ~City~ ~p:rovided ; -hoinrever ; :that ,the . compensation of theC,Fiseal Agent- thereunder.- shall-: axe;- pay~.ble solely ;~ronn ~tl~e ~ proceesls_.of the:~~SChool Building-;Revenue, Boxrds;; when ~-actuall~r -redeived ,byi the City; ~~and~~shall not -chrrstitute a labili:ty-of:'the ~City-~pay.-abie from a~iy;.otherrre~so~rces~~of~:tle- Citylw3atsoever..,_ ~ Sard contract ;af ~ the= Fi:scai :Agent may be=rendorsed ~to-shdw~ this..approval ~-and .acceptance by the;-;City,, °and;the.Mayor: is..herebyaufhorized :torsign~sueh. endor-sement~: in~ahe~• -° name: ~ anal on: -behalf of the City ~ with his -sgnature:attested und~er~ seal by' tyre .'City: Clerk . ;.,-(_6~ :The`:Board:-o~,;Educatiunz-having tendered=to~:the City ,proper ancl~.,"-. ,: sat~sf~ac.Cory, e~ridenc~> that..it- has: caused-:advertrsem~rrts: to -~be .pubslished :in r~s:~o~in : : name: >solieta~g--the~.s~zbmission ;o€ -bads ~ for the~;constructiom:'of-~tlie ~.two;-sep~arate~~pro=~ 328 j acts for the construction and reconstruction of school buildings upon the sites here- in described; m allrespects 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 Baard's .solicitation= -of construction bidsthereunder; 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 deter'- mined by the Board of ~ Edueation,~~to be the respective lowest and best bidders . The Board of ~Edzication may tender to the Board of Commissioners the- construction con= tracts w:hch`it.awards on-the basis of such advertised competitive lettings, 'and the Board:: of Commissioners agrees that the City will at~ that: time: adopt sand ratify "such construction. contracts ; and` peach of them , as, contracts of 'the City:; but -for payment of the- amounts .due- thereunder fromtime to time ° solely from the proceeds of School Building Revenue Bonds- to ~be issue-d •by' the City, and not-from any other resources of the City whatsoever . "' . - TYre`~respec#ive 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~ behal o -the City by the Mayor:;' attested.~under seal by the `City Clerk; or: -such contracts may 'be written. in they first ~nstance~ in the Warne'` of~ the Board of Education, in -which event.. they ~may'be endorsed+to• show adoption `:and ratification thereof by the Cit `" y, in whrch event the endorsement shall be~executed in' the name~'and on be= half ' of the ° City. by they Mayor-;- attested u°nder seal by the ° ~Ctq Clem . ` -In 'eitYer event- an° executed copy of each- contraet:, ~~together with evidence of: they =proper solicitation of construction` bids*by advertising as hereinabove recited shall be filed in the: office of the City 'Clerk and preserved gas public records° of-the • City as in the case of `a.nyi other.'contracts :executed by the City. SECTIOfiT 3 . - ~ When all of .tyre actions and events described in paragraphs (1) , - (2~}~,- and-• (6) ~ of, Section 2 of this Resolution shall have been performed and accomplished , the .Board of Commissioners :her'. eby ~~agrees that it -will adopt an Ordinance authorizing he issuance of Sch~oT Building Revenue Bonds according to .. the authority Hof. -KRS~ 162 :1'2"0 to r16~2'. 29'0,` inclusive°; ° in =such aggregate -principal amount . as the Board" of Education may<°raquest- in order to provide for the payment of all costs of t=he 'three° school building construction and reconstruction projects ` upon the sites-: hereinabove :described: ~ Said` bonds sliali be designated "City Hof Paducah School Building Revenue Bonds ; Series: of October 1, 1979" ; shall be dated October 1, 1979 ;~ shall consist of - rie~gotiab3e coupon :bonds in the`' denomination of $5, 0:00- each, .:and:: shall bear interest af: such rate or~ rates as may be' established by the Bgar..d of Commissioners=in a resolution to be adopted upon the 'occasion of `the 329 advertised public sale:'of said • bonds gas hereinafter provided.; and upon the basis of competition among'the bidders: as hereinafter provided~~ such- interest: to-~the~ respec-- tine: maturity' dates ::of 'the= bonds t©~ be-evidenced -~by appurteriant::interest ,co~uporr :.: payabie-'- sbiniannua3ly~on:=.April ~i and<~O~eto~er Yc:of~~>each-year, : comiaen~ngc~A~pril . l,• - 1980: ' Said ~~bonds -shall ~ bei caused-• to mature ~serixll in :various T~amsrunts" ors _ ::.~ .._ -; y" October 1 of each year; -conimercing ~October~;~l; 19$:0; :-actor-din:g:to a~:mat~z~rty~:~ ~~ sch~eduie: which Y~a11- be ~ as~ requested by the -$aard Krf Education -and ~whcYi shall be set .forth in~tle Orciirramee :authori2ing:issuan~e~~of--the-:bonds provided; ~however~;~. the -City sY~all -reserve° the option to call anal:redeem ~ the 'bonds:. Hof-staid series maturing on and after October 1, 1990, or such: ;of ~:-them:.as :may ~f~e'::czuts#andin,g-<from -time -to time, prior to ,maturity.;.~on any interest•spayznhnt:rlate_ort~:or:~,after~ October. 1; ~~989, as a whole -.or from" time -to~ time': in :.part in :the= :inverse=; order of -aheir: rnatu~rty .(less' ;tha,~'_,alhof a single ~~ ' 7riaturity~ Ito _be~ -selected-.by: ~iot~) ; c~anti "in tiie°~event-::any ~f ~ssaid~bonds_ ~.re-,-to- be redeemed, ~it- shall be_:agreecl~;that~:thereishallr-beepaid~ito~the-,:Yrolder:~~of~~ea~h.-bond:[upon: surrender thereof a premium , in addition to principal and to the interest then , ~accrueds sand evi- dented:: by:~.nterest coulrons; =such premium: being • stated as. --a: ger~cent -of ~th_e principal amount;.•~as foll~o°w•s:_--~~1 _ :-rr; . .~ . _ - - ,~:~ .~~,~ ~. . __ ._;r- _. ~ : - .... r, ~ ~ ~fl: fr,redeei~tted=: on:~r~: after •:Oetaber ~L, ~198.9~;:~•an~i bn or:~p~iQn to : ~:: October 1, 1995; 2 o if redeemed on or after April 1, 1996, and on or prior to r~, .~etober:.i;,`2001;~anri' ._ ~ ____ r;_ , ~ __. -.. .,., . _ ,~. -r ,,,-• . .., •r~.. . _:. - T - . 3 0 ~ if redeemed ~ on ` or' ~ after .April; 1: 2 fl02 : ands:p-riarr, to fnat--matur~ty_-, .: rt=,: .. ~ ~ 1~Totice of -such'.r..e~demprtion;::~rdentify3ng~ -they bonds~~to be>sed.~eemed; -shad ~be- given by publication, at least once, not less than thirty (30) days prior to the red-emp- tion~: date,, n-~ a~-newspaper~~ of.general °:cir.culation throughout I~entucky~;.'and in the case of :ate b~c~xrds . toy bae: redeemed ~-which ~may.~ at ~ ~tteh time ~;be rregistere~l~-~as:~tci.~ p~ri:n~cip~al ~in~; the m~arxer :ht*reih Fpravided:; by: s sendng-f a -colay of .-such ~,natiee _:by~:- registered ~°2nai1 ~; vr-;-certi- fied rr~ail ~>t~ the~~ then~registere:d: rh~older :-oi; each bond -to _b:e redeem-ed;,. prrnrded~-; however , tliat;ariy ~faii~ur~e°:to: give:irrotrce~:.by~~na~ll-~~i:any,:defect.Cherein-shall,not:-affect-tlze>vsalidity and ~ 3effectivex~•ess= of°~ the. ~ redemptivrr °pro~ceedings i~~:jnotice~> by =p~xblication is~ giveri~,n proper sand ~ tirnely-~fashiorr • as:~~set ,:orxt ~ abovi~; Kand: if ~ all k~ond~::to-.be redeemed are then registered-,- anid~ ~~iot~ce--by _ registered-r~or~cer-tified `mail is duly- given ~ then. publication of.the'-redemp:tion.;rie~tice-r-r~eed-.-not ~ie~:made:::~ Band~~sa~.calied for~~redemptvn,-,rand~.for the payrneivt: ~o£:-whichr^f~nds~>are..d~uiy ~provided-~i.n-: accordance ,with ~.a:ny ?such:_noti~e~~shall ceas~e~ toy b:ear:-~:interest-:after:the-:,dds:gnat~ed;redemption~-~latea .. _ :~ : .._,._fi:Kr:~<<< • ._ ~- t . - ~ ~r;SE~3~lf?N .;~4~:-~ Botha prix~i~al : of-,and: nte~est_: on:: saiel -bonds sha•11 be°:~pay~ble in la~.uful:.-money -of _the-:: United;T&tates;~a~ ifrmericar;at:.-~the :pirncpab°office-'.of•,:The- Peoples First -l~atiorral-Bank:&~~Trrxstr;Company.~., :.n;the-Ci4~;of~:-Paducah;, dientucky, xa~:~ba~rk,~zn- suredY,by Federal _i~eposit:Insurance Corgar-aton ~(i~iere-inafter: referred_to-,~a~:°"E~I~")`a 330 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 si;gnature.° of the City Clerk; and additionally efther~ 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 re- produced 'facsimile signatures of th'e -Mayor and the 'City Clerk . • ' If any of the officers whose 'signatures or .facsimile signatures -appear on the bonds. or~coupons •shali 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°n •office until-delivery. -Any .bond issuable hereunder may be signed, Baled or attested on behalf of the City` (by facs~:rriile signature; or manual 'signature, :as herein provided) by any person who `at -the actual date of theexecution 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 . ATl bf said bonds; together with •interest thereon;: and any additional -bonds ranking 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 Paducah, 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 -'S`eries of October 1, 19'79", hereinafter created, and the revenues from•°the: use and occupancy of-rthe: aid school buildings pledged to said ...fund - _.. _ _,.. ~ ,. ~ ~ .- `. SECTIQl~ 5. Each ~of said b'onds' shall -be ~ fully negotiable, provided that upon presentation of anyof-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, ~whicl registration shall be noted .on:~ the.: back: of the bonds so registered, and thereafter' the~~ principal Jof the bonds so~ registered -shall be payable 'only to •the: registered 'holder, his legal ~repre~senfative orb>assign~s~. B"onds o registered may be transferred to another similarly registered `holder upon presen-• tation~=to the•~said Treasur'er~ with a- legal `assignment duly acknowledged, or proved; and may ~be r~e~stored° to negotability,~by being in like manner regiatered~~as before. Registration~''of~any of~ said -bonds as to` principal shall not- affect the negotiability of the appurtenant coupons , and such coupons. shah` .continue to' bey =transferable by delivery, Each and'': every successiveholder of ariy or all of said bonds` during such. time' as they" are payable to bearer , an'd such Yiolder 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 °withoizt notice, and' to agree 331 that said :bonds' while so° p:ayabie` to bearer.,: r•artd~ each of the coupons appurtenant thereto, -may ~b~e negatiated~: and • transferred. by ~-delivery by ° any person=~ having pds~s~essdon,~thereof`.:howsoever ,-s~e~i-po~session~ ma.y: ~Y~aue--been: acquired, ~aneY than - ~ainy hold-erwho shalY~ ha~e,rtaken~anyof ~said:bonds~-or any: of th~~~c6upoirsffrom~ ~a~y person fc~m value .and-wa.th~ut'e -thereh'y hs.s ~~a~ciur-re`~i~~-alisaltlte 'title ttY~ereto,~rf~ee from ~anyclefen~e~.sYenforc~able agaiYt~sti atny-'=~r-~or~-lrolder_~a~`~ free°~~fror~-~a~ll ~eq~ities~ and-r claims:- o~ ;`owner~shpi:~f~: ~.ny~~ such p~iar hoirle~ :: ~~ _ .. . ~., _ r . .; ,. -.~ ., , :. , _.. ; SECTION 6. Upon ther-receipt` by=:the=City of'evid~nee~ staisfa~tory.~tc•-if of; theT-los~:~theft;.~d~stru~tior or ~muti:latrom~~of sny .outstanding-bancl- ar`:bonds issued - antler- th'~ribondi ~aLithoriz~ang-O~rli~nrance ,-=~r%d Hof 3n~emniftyl=satisfactory- to the`'-City;' ~ " and upon-:-surrender' and.,canceYlation of ~s~zc~~ bohd or :boride ifs mutilated;"the City` may.exeaute~and there--inay~ be delivered;°~a~ new-•.~:borrd orbonds.'•af=l~ke~~~tei~c5r-,,~ ` ~ r~ maturity;~iirrtferestr~ate a~rud numbering:in ~lzeur.df Tstrch~~:lost;~=:stolen, `~lestr~byed=.or: °~~ =' • mutilated. bond °or-.~lxond's.; ~ and -:ead~h ~~sue~ rre~d~ lictnd~shall= bye==entitled ~ tzr . the Ysame ' _ security. arid~~source ~f p~:ymentras^~the.~°b~orr~~.-whi_ch pit :r~gfaces: ~~Eaeh. su°c1~=•=new"- ~~-~ bond::uray-';bear~~ suctr endor~s~einent,..1f any.;rra.s~~.xi~ay be~~deemed necessary to'-'~vi~dene that-it ~has'.be=en>~issu~d,~i~s lieu-.ofr;a:`Tlost:;~~toren;-.:..destroyed.or uti~ated incl.'=~ The City.may_-r_equiru::thespaynr~nt::°of=the expenses~~ irl~[zrred by=-~tlt~e lCity' ~~ coririectior therewith. In the event such destroyed or mutilated bonds, or any of them; ~ shall be ~::due _ ~hd~~-pa~rable within a:~ neasa~able• thire~raftdr no~ti:ce= Ito the- ~Ci:ty-~o~f ` s~~h destruction or ~inutilatcrn;~~he-7Lity~~ay; ::by agreenent~~v~rith •th'e~:~claiman~,'~`wtY~=`dike seeurit~ pro- visione-_to ~proSeet°4fihe ~•City. =from.~~in~ss , _ ren#er~ rFta ~~a ~writteh==agreement `-to pay` ~tYie~ bonds rand couporrsr wizen> ~-d°ue ; =instead>:af :causing.-r~. bird ors bes~ncls' to iae manufactured Ladd delvere~drn;-a~eur°'thereo£: ~',~. -;r;.,~ .., r~`. ,~.. :. _ _: _ ~r . ~- :~ ~ ~ ; - _.... ..-. -+~-~~, ` - ~•- SE.CT•ION~~7~ _r,Tha.# said~bontY~~ andr coup~zsms -~cncl provisYons-fora-megistratiori shall bye `inr substantially they fol~lnwing forms:} . ~~ :._~_> ~- ; : s:: x .: r_= :~ n - ~ r . ~ ~s ; ci ; .. . ~.; ` .- -^.•r r : 4°' . "+ _,: T' .> .fa.3 . ??:'~. `~"~ ~~~(F SB~O }... I.. - f..., ,. .r~.n. •.:.~~? ., s _. _:. UNITED STATES"OF~i,~lf/IRRICY~~=-=~;'s°re:: ~.~-,.,_.. ;-~°+~:,r.~ ... COMMONWEALTH OF KENTUCKY ,~; n j. - -, ;_~:-. , r -, -: ~ ~= s a C:I TY ~ <I'ADi1G~iI~ - - .. _ .., .... .: .._ __ _ .... . '.._v .._ .. .. i ~ y SCHOOL BUILDING REVENUE BOND - SERIES OF OCTOBER 1, 1979 ... . „ . _ : ,~. Number -it'. ":;$5,000:0'0;` KNQW:~ALL:~ ME3~Yc~BYz~THESE= P~:ES~I'~T'S`.~= ; -_ ~ .p~ i,,, ~ rj ~- That the City of Paducah, Kentucky, acting by and through its Board of Commissioners as its governing body, for value received, hereby promises to pay to the bearer, or if this bond be registered to the registered holder hereof, solely from the special fund herein referred to, the principal sum of Five Thousand Dollars ($5, 000) on the 1st day of October, 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 332 per cent ( ~) per annum, semiannually on the 1st day of April and October in each year,- commencing April 1, 1980, 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 Hof the annexed interest coupons as the same severally mature;-`both' principal and interest. being-payable iri lawful moneSr of the United States of America at the principal office of-The .Peoples:First National Bank & Trust--Company-, in• the City of- Paducalr;' Kentucky. - - ~ This bond is one of an authorized series of bonds numbered consecutively from-- l to- 660;~ inclusive, issued by said City pursuant: to an Ordinance duly adopted by its Board af -Commissioner,s for- the: pttrpo'se of :paying the costs of ~_c~onstruction of new school buildings- and ahe substantial:reconstruction" of existing school buildings upon the sites of Paducah Tilghman Senior >High School; and of the Brazelton Elementary School (hereinafter referred to as the "school buildings") ; with necessary appurfienances, 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 Constitution and Statutes 'of the Commonwealth `of Kentucky , 'including among others; Sections 162;.120 to 162.29:0; inclusive, of the Kentucky Revised Statutes., `now`n full force ' and effect . - Said City-Yiereby reserves the rights and option: to caTY"'and' redeerri the bonds -of said --series maturing on and after -October 1; 1990; 'as may from time -to: dine "be outstanding; prior .to maturity, on any interest..payment-date.-on or_Aafter Oc#ober~ 1, 19.89; 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 toy be redeemed it is agreed that there 'shall: be paid to the holder of each such bond, upon surrender thereof, a premium in• addtioiY to principal anal to the interest then accrued and evidenced: by inter"es"t"'coupons, in a sum which is expressed as a percentage of principal; gas' fo7aows:' 3 o if redeemed on or after~Octbbe'r 1-, 1989, and on or prior to October 1, 1996; ~ `_ ~.,. , ;.''~ ,:~: L 45. 2% if redeemed on or after April 1, 1996, and on or prior to October 1, - 2001; and 1% if redeemed on or after,~:Aprl 1,'2U02, and prior' to final" maturity . Notice of such redemption , identifying the bonds to be redeemed , shall be given by publication at least one time, not less than thirty (30) days prior to the redemption date, in a newspaper of general circulation throughout Kentucky; and by registered or certified mail to the then holder of each registered bond to be re- deemed; provided, however, that any failure to give notice by mail or any defect -;~; . _:;~-, 333 therein shall not affect the validity and effectiveness of the redemption proceedings if notice by. publication is given in proper- and timely fashion as set out .above; and if_ all of the _ bonds ao be redeemed. are :then registered,. and notice by ,register-ell or _ . certifies mail is duly given, .then publication. of the notice of .redemption need ...not be made,. All such bonds thus .called for redemp-tion 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 for-rns a part and any additional bonds ranking on a parity,. therewith,. which -may be issued and. outstanding from time to. time under ,the restrictions and.- conditions.. set-.forth in said Ordinance do not con- stitute an indebtedness of .the City of Paducah,.. Kentucky, and. are.. not payable from its -general fund or taxes., but- ar-e payable. only from and- secured by a first .lien upon the gross. income and revenues ,to be derived- fr-om leasing. the. school buildings and. . appurtenant . facilities , the.. amount. of..which revenues shall. be :sufficient to pay the. - principal of and interest :on said bonds as and when the same become.. due and ;payable , and which .shall be set aside as a.. special fund, pledged for, that .purpose. and .... . - identified-. as the. "City ;of Paducah- School .Building Revenue. Bond :and, Interest Redemption. Fund-- -Series of October .1,.,179". _ Said~City covenants.ahat it will., , fix, .and charge- such rates and .,will -account for income .and revenues.: from aid school buildings and appurtenant facilities, , sufficient.. to. pay promptly= the principal of and - interest .on,.all bonds,,from time,..to time outstanding,. which:, by their terms.,=are payable from said.- special .fund. _ . -.. :. , _ ~. _.. , . A-.statutory mortgage =lien .which is hereby, recognized -as .valid ..and binding on the -said school buildings, and. ,appurtenant facilities., ~.a.nd -upon ..any -ad_ditions.,.- .. extensions and improvements thereto,-,s_created and. granted,.by-_KRS, 1,62:200-.in=.favor- of the :holder-,.or..holder.s of this._bgnd_.and the...seres .of...which._it~.forms,,a,p.a.rt and-in~ favor. of ,the..holder or.,holders of nterest._coupons .appurtenant. to said ..bonds,, ,and.-, -::.--, said school buildings and any appurtenant facilites., additions,, extensans..and . , ,... improvements thereto ..shall remain „subject: ao.-said.zstatutory xnorxgage_ Lien.. until, the: -,, payment in full of the principal of and interest ..on this, bond..,and ..the series.. of which it forms a part and until payment.-in--full -of any-:additional::bonds ranking orr a basis of parity therewith which may be issued.,upon.-the conditions and,subj-ect:to;the ,.~.,: -.- restrictions set forth in. said Or-.dnance;. ..provided, rhowever,~ that said. statutory:... mortgage. lien- is .and ;shall be .restricted. in its- application to the. school buildings -and appurtenant..- facilities,, the. costs-. of .,the coastruction..or, .reconstruction. ,of-.which. are ...; defrayed from ,the proceeds of .the -bonds :issued. or. permitted, to~,be, .issued, under .the- .- , provisions of .the:. above mentioned.; Ordinancs..(i~cic-lulling pa.rixy bonds.,- aforQ~ad)~,.:- - . r together. with appurtenances, ,equipment, therein,,;_ahose por.Lions._of.the...school-sites:- physically occupied: thereby , and such -easements,. and ,rights-of-~vay. „for, ingress,.... ; ~ - 335 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 andsealed'with the reproduced=facsimile ~of 'the .corporate seal of "said City, has additionally ceased this bond to be" executed by-the "validating manual 'sign`ature of either the "Mayor or the City- Clerk, -and: has caused--the-.coupons Yiereto"attached to be executed with the authorized facsimile signatures ~of the Mayor ~and° City Clerk; and this bond to' be dated the 1st`;da~ of October, 1979. ~.= ~ - . , . : - _ _ :r: CITY OF PADUCA~i, KENTUCKY ` _ -. - _ BY (Facsimile Signature) ... ~ , : ayor- . , (FACSIMILE OF SEAL) ATTEST: - ~ - - ~' - ° - Manual signature o£ ane Mayor ~ or City Clerk (Facsimile Signature) ,,~. , - •-City Clerk - Y .. -~ _ ;,, •..____ _. - , , ~-::. (FORM OF COUPON) - - - _._.r: .. _ ,.. _ _ . s . .~ _ * (Unless the bond to which this coupon is attached shall have <~ ~ - ' been called fog prior re-demptiori) " - = . -, _, . _ ....._ .. :. ,,, , .;.. t;" -. - " -- - ~ Orr the °lst - daSr r of- - ~ ~ ; ~ ; ~ "- ,: the :City: of Paducah , Kentucky , will pay to bearer the amount shown hereon in lawful money of the United States - -.crf America .out> ~f-its ~'~City=of Paducali~~"School _Building Revenue Bond arid' interest Redemption Fund -Series of October 1, 1979", at the principal office of The Peoples First -National-'Bank ~ & ~ Tr_ust Company; ins ~Paducali~,~ Kent~ieky, as provided in and for interest then due on its "City of Paducah School Building Revenue Bond, Series of October- 1,• 19:7:9", -dated~October.'1, 1979;: No. "~ ..~ - :, _ - .:,_ -` - - '~ c, CITY OF FADUCAH; KENTUCKY ATTEST: By (Facsimile Signature ) - ..(Facsimile:- Signature).: -_ _ _ .., . - _ _ , . - - ~: ~ , ~ ;; ° Mayor , ~ . , . r . ,, . City Clerk ., ,,, _ *(This redemption legend to appear only on coupons maturing on and after April 1, - _ ..~ __,. .. , .. . ,_ . Y - ~ ~: :.. _.- _. ..~- (FORM . (FORM OF REGISTRATION) _ ,. _ _ -Date of _ = :,,., _ _ - ~sln WYiose~ Name- _,, ~ ;:- ~ Signafure~=of Registration registered City Treasurer .... _ , ,: _,>.. SECTION 8. That upon said City issuing bonds under the Ordinance the _ - - sc hool buildings added to, constructed _and reconstructed by said City through appli- ,. - - 336 cation 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'Oetober °l, 1979; and ending the last day of September, 1980, and thereafter on a fiscal year basis- com- mencing as of7~October-:1 of each -year and ending on each succeeding last day of .. September, ~ and `-the income and revenues from -such lease ; rental and occupancy in- - cluding~,specifically" the gross income and revenues from the-Contract of Lease and Rent. with therBoard~ of -Education "of Paducah, Kentucky, shall be `set aside 'and held apart from all other funds of~ aid City andshall be apportroried, ~ as follows: -=--1: There shall be and there=is hereby created an account to" b`e known as the'"City of" Psduca:h School Building~Reveriiie Bond and Interest `Redemption .Fund - Series of October 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 building properties as will be sufficient to pay the interest on and princi- pal of the bonds hereby authorized as the same are scheduled to become due . All sums received as accrued interest in the issuance of the bonds shall be deposited in the 'Bond- Fund "and applied toward" the °payment of the first interest coupons next there- after 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 into said Bond Fund during each fiscal period and year for the purpose of paying the interest on and principal of the bonds °-shall b~e as set forth in the Bond authorizing Ordinance, and shall not be less than such annual amounts as will be - auffeent; to pay the--bonds': and interest coupons as they respectively become due. ...-.. .,, .. ._ 'r ... _.- .. .._.-.. _. _. .. _.. - ., i . ,. .. , T .. The anr~usa amounts may b'e computed 'upon the assumption that when the bonds authorized by the- ordinance are publiclysold ; the 'inter.-est rate-applicable to ~ all of the ~ b.onds will be established at six and seven-tenths- per "cent (6.7 0) per annum; ~ "arid each annual amount set-forth~~iri the ~Ordiriance s"halrbe the sum required to pay the interest coupons maturing in the respective fiscal year and on October 1 in the next ensuing fiscal year , together- with' the bonds maturing on October 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 ~totai~authorized amount of bonds be sold, the respective . - -, annual payments into the Bond Fund as set forth in the Ordinance shall automatically _....._.. _..__ _ _._ _ .... ..... .... .__... ~ -~.__,,._ __.___n,,.._______._.._.___....v._ _-_ ._-..--- "be adjusted to-much sums as will accomplish tYie 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 ..,~___...__~_ _...__.._.___.._. ._....._..._...__._.__....._ ~._._____..___~__. ___- _-_._ .__.-_.__.._.r _..____._ ..___._ .._ .. 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 requirements for f the current fiscal year and payments therefrom required 337 to be made on the next succeeding October 1 and April 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 and to pay all interest to accrue thereon, and including the amount of any premium incident to redemption , in the event it is desired that any of said outstanding bonds be redeemed prior to stated maturities as in said bonds provided. 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 and paid into said Bond Fund from the first available gross income and revenues of said school building properties for the following year or years and the same shall be in addition to the amount otherwise herein provided to be so set apart and paid during such succeeding year or years . All moneys held in said Bond Fund as aforesaid shall be deposited in The Peoples First National Bank & Trust Company, in Paducah, Kentucky, which 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, the same shall be continuously secured by a valid pledge of bonds or notes of the United States Government having an equivalent market value, or shall, at the direction of the Board of Commissioners of the City of Paducah, Kentucky, be invested, subject to the arbitrage covenants set forth in Section 18 hereof (a) in bills, notes or bonds issued by the United States Treasury Department, or (b) in certificates of time deposit of banks which are members of and insured by Federal Deposit Insurance Corporation (FDIC) , and if any such certificate of time deposit shall be in an amount exceeding the amount insured by FDIC , the excess shall be secured by a valid pledge of securities issued or fully guaranteed as to principal and interest by the United States Government, which securities shall be held, actually or constructively, in the custody of another FDIC insured bank. The annual payments so required in each fiscal year shall be made in semiannual installments, one on or before the 1st day of March, in a sum at least equal to the interest coupons maturing on the ensuing April 1 in such year , and the balance on or before the next September 1 in such fiscal year, the first such rental payment to be made on or before April 1, 1980. All moneys deposited in said Bond Fund as next hereinbefore provided shall be used solely and only and is hereby pledged for the purpose of paying interest on, redemption premiums (if any) , and principal of the bonds which in the Ordinance will be authorized and permitted to be issued, as the same become due. 338 2. Out of the balance of the revenue and income remaining after the aforesaid payments into the Bond Fund, there shall be set aside into a Maintenance Fund whatever amount may be necessary and is not otherwise provided for the pro- . _ _ _ ~ -_ __ _.. _ per maintenance of said school building properties and to continuously insure said school buildings and appurtenances against loss or damage by fire, lightning, wind- _ ... storm , or other calamity , in the amount of its full insurable value; or , in lieu there- . _ , _ _ .._ _ of, the lessee of said school building, if a lease thereof is then in force, may pay the costs of maintenance and of providing and maintaining such insurance. Such insurance shall be for the use and benefit of the holder or holders of any bond or . ~ _ _ - ._ bonds , it being 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 which in said Ordinance will be authorized and permitted to be issued , and each of them , that it will faithfully and punctually perform all duties ~,~. _ with reference to said school building properties required by the Constitution and laws of the Commonwealth of Kentucky, including the making of reasonable and sufficient rentals for services rendered thereby, and will segregate said revenues - - _ - - - _ . ~.. r- -.. ,_ . _ ,,, -~ and income and make application to the respective funds created by this Resolution. It is the declared intention of the City to continue to lease said school building pro- perties to said Board of Education for an extended period of years, as to be provided ~_ .. _ ,.. _ ., . _ ,_. n ... _. . ,. in a certain Resolution adopted by the Board of Education of said School District, ,~; - - - - _ ,- -- -, _- _ ;i_ ~ _~ which Resolution and the proposed Contract of Lease and Rent to be set forth therein .~ ~ _ .. - .. - : ~ ,.. shall be submitted to this Board of Commissioners of said City, as hereinabove pro- ,_ - -. '. ~r~ - , . vided, and shall, in said Bond authorizing Ordinance, be accepted and made a part .----~_ ~. of the City's records, and the Mayor shall be authorized to execute and acknowledge said "Contract of Lease and Rent" for and on behalf of said City, and the City Clerk shall be authorized to attest the same and affix the corporate seal of the City thereto . The City further binds and obligates itself not to sell, mortgage, or in any manner -_-- _ ~ ., - ~ - _ ... encumber or dispose of said school buildings and appurtenant facilities, including _.. ~ - - additions and extensions, and the revenues derived therefrom, except as specifically permitted and provided herein, until all the bonds issued under the Bond authorizing Ordinance shall have been paid in full, as to both principal and interest. The City further covenants and agrees with the holder of said bonds to maintain 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 sufficient at all times to provide for the payment of the interest on and the principal of the bonds which in said Ordinance will be authorized and permitted to be issued , as and when 339 they mature , and to pay the maintenance cost thereof , including the cost of insurance , as hereinabove provided; or to cause any ~ lessee of said properties to pay all such costs . Said "Contract of Lease and Rent" when tendered to the City ~by said Board of Education and 'accepted and approved; shall' reserve to said Board of Education the right and option at any time on or after October 1, 1989, to prepay rent and thereby purchase and acquire the said school buildings and appurtenances , together with the sites thereof, free and clear of the statutory mortgage lien which is provided by KRS 162.200 and herein recognized, upon payment to the City of a sum sufficient to redeem and retire all the bonds then outstanding, in accordance with their terms. It has further been agreed that in said "Contract of Lease and Rent" it will be provided that said Board of Education of Paducah, Kentucky, shall have the right and option at any time on or after October 1, 1989, and from time to time, to prepay rent and thereby purchase and acquire either or both of the said school buildings and appurtenances, together with the portions of the site or sites physi- cally occupied thereby, and adequate easements for ingress , egress , and the rendering of necessary services thereto, and obtain a reconveyance thereof from said City free and clear of the statutory mortgage lien which is provided by KRS 162.200 as a part of the security for the School Building Revenue Borids which said City i about to issue , upon the following -conditions and' liy 'paying to the City the ~ follo~tring respective, option :prices in cash: " OPTION~-'PRLCES ,.., . ~ _ _- .- -,, -:. ;. .,_ .. - ~ Padueahr Tilghman Senior High' School Site: A sum-equal tor'the. nearest. multiple of ~$5 ,'000 . Ufl at or immediately above -a sum computed- by ~multipYyng the principal amount of the ~maximurn number of School Building -Revenue Bonds ~ issued' by said "-City fors ~.tlefinancing .of they :over=ally construction p~co~gram a'ffec`ting alrl of the school ~bnildings-herein described by 520; such percentage being a'n- agreed ~~~' estimate of the propostion of the total expenditure `which will xse made. ~fr'.am bond ""- proceeds upon the properties -her.ein--described asp the Paducah Tilghman Senior High School Site..., Brazelton Eiementary.-::(1Vhddie)" School" S-te:- A --sum; . similarly computed; and using- as- the percentage factor.:.- ;48;0.., -~ __,~. .... . ___ ,..._.T - ... .... '' '~ '°-~. REDUCTION~.OF :OPTION`PRICES~ AS BONDS ARE RETIRED ` "' " In the event any of the above=mentioned options shall' be exercised by ~ said' Board of Education at a': time . when a porfio`ri' `of sardSchool Building `=Revenue Bonds issued. by: theCity `have been-paid. by the~~Cty.:-from-~the annual rentals received by it from~~ said `Board ~ of Education,.__the applicable~~ option prices shalh`be reduced by- an amount'.. which shalX bo:-eomputed;-by -applying the r~esp~ective. percentage ~fact+ors: to~~the " aggregate prncpah~amount -of-;-all :,bonds ~ so- paid--andretired : It: is expressly under=. - 340 stood and agreed, however, that the exercising by said Board of Education of any of its option"s to purchase and :acquire any of -the school sites shalt not reduce the option prices otherwise applcable° to the .remaining sites .- -- '" -CREDIT= FOR COLLECTED"1NSURANCE~~FROCEEDSP IN .THE - - EVENT OF DAMAGE OR DESTRUCTION The parties recognize the possibility that any of the school buildings herein referred to may be damaged or destroyed by fire or other natural hazards, resulting in the collection of insurance proceeds which are inadequate to provide all of the costs of repairing or reconstructing such premises so that the same will be acceptable for use and occupancy by said Board of Education for school purposes , and it is agreed that this is one of the controlling reasons for establishing option rights in favor of said Board of Education. In the event of such circumstances, it is agreed that the option price applicable to the property in question shall first be computed and adjusted as hereinbefore set forth and shall then be credited with the amount of the insurance proceeds actually collected as a result of such damages or destruction; and such collected insurance proceeds shall immediately be deposited by the City in its Bond and Interest Redemption Fund . REDEMTPION OF BONDS WHEN OPTION IS EXERCISED; - ~ ADJUSTMENT' OF OPTION PRftICE FOR; `REDEMPTION PREMIUM ~~ - in- the- event said Board of ~ Education shall, `from time -totime --exercise any of its purchase options as herein set forth, it is agreed that the City shall apply; the ,funds received from the Board of Education and/or insurance proceeds "fo_ tihe-:redemption of an equal principal ~amount-:of t=he City's said' ScYiool Building Revenue Bonds then out- standing : - Said`-Board ~:of, Education- fully understands that the CityTs sad'School: ' r -: Building -Revenue Bonds will b`e-°subject~~o~ redemption only by the payment of a~"-premium over and above nthe -principal- amount,of such-bonds; said premium being 3% of the principal- amount of peach°"bond-,for a period"including and immediately- following" October--;; -1989, and gradually diminishng~for- successive periods thereafter. Accord- ingly; arid;'in .order- to enabie-~the 'said City° to-redeem andr_etire-bonds as herein provided, said Board of Education agrees that in the event it exercises any :of said options;--it -will pay to the: .:City, in -addition "toile- 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 pr~'scribed.-portion- of- ifs`- outstanding ~~ScliooT -Btzildirig Revenue Bonds, and ~ alsa the - cost- of publishing 'the: redemption notice . ~ - - - ~ ADUSTMENT OF-:FUTURE RENTALS,=IF•°OPTlON lS: EXERCISED': " It is understood -and agreed` that- the::annual. rentals herein°_provded_:are .for the use--and occupancy `by said'-Board_of~ Education of all of `the -school`buildings`eon= structed:,• reconstructed. and financed through -the issuance -of said School- ~Bxildirig' " Revenue Bonds; and- *fis therefore' agreed that if and when ~ said""Board" of Education ` 341 exercises any of its options to purchase and acquire a property or properties as herein set forth, there should be an adjustment as to the amount of rentals applicable to future years 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 any of such options may be exercised, the annual rentals payable by said Board of Education to the City, as herein set forth, may be reduced by agreement of the parties,- but not below such amount as may be necessary in order to provide to the City from such rental payments a sum sufficient to pay the principal of and interest on its remaining outstanding School Building Revenue Bonds as and when the bonds and interest coupons severally become due . SECTION 10: That for the further protection of the holders of the bonds which in the Bond authorizing Ordinance will be authorized and permitted to be issued, and the coupons appurtenant thereto, a statutory mortgage lien upon said school build- ings and appurtenant `facilities , and upon any additions , extensions and improvements thereto, is granted and created by KR.S 162.200, which said statutory mortgage lien is hereby 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 --. ,: ~~. ,. r, -, ,. .. , statutory mortgage lien shall remain in full force and effect until payment in full of all bonds issued pursuant to said Ordinance , including parity bonds if any be _ _ .. . issued; provided, however, that said statutory mortgage lien is and shall be restricted ., in its application to the school buildings and appurtenant facilities , the costs of con- struction and reconstruction of, and additio , ns to , which are defrayed from the proceeds of the bonds issued or permitted to be issued under the provisions of said Ordinance, together with appurtenances, equipment therein, those portions of the respective school sites physically occupied thereby, and such easements and rights-of-way for ingress, egress and the rendering of services thereto as may be necessary for the proper use and maintenance of the same; the right being hereby~-reserved to erect or ,, construct upon unoccupied portions of the school sites herein described other structures and improvements for school purposes free and clear of said statutory mortgage lien, even /though the same are connected by using as party walls one or more walls or structures which are subject to said statutory mortgage lien, providing the same are :; , .. capable of use as separate entities in themselves and have their own outside entrances , no part of the costs of said additional structures and improvements are paid from the proceeds of such bonds , and providing there shall be no obstruction or interference 342 with ingress, egress and the rendering of necessary services to the school buildings herein referred to . The City reserves the right, (at. .the ,request of the Board) to release and/or conve ,with or, without consideration, .free of the statutor mortgage lien herein Y ., y_ created securing the bonds, such easements, rights-of-way, licenses or, other rights over , upon,. or beneath the surface of the land _ herein described as may .reasonably be required for roads, utilities, drainage or other public purposes,., provided (a) no such release„ or conveyances shall interfere with the ownership and efficient operation of the :school buildings and appurtenances ,(and the actual land on which the same are located) , .added to , constructed, or reconstructed from the proceeds of the bonds , (b ) ingress. to and egress from scuh school buildings- shall not .thereby be_impaired, and (c) there shall be no reduction of the rentals otherwise required under. the afore- mentioned Contract of Lease and Rent between. the City and the Board . , , Any holder of said bonds or of any of the coupons , either at law. or in equity, by suit, action, -• mandamus, or other proceedings,_ _ may enforce and compel the _ .p erformance of all duties q . re _ uired, b Y, ion and the Constrtut _ y . Statutes. of, the Commonwealth ; of .Kentucky,, including the charging and collection of sufficient rents, the segregation of revenues and income , and the, application thereof , and .,may , by ,such ,action , compel the, performance of all duties imposed in the operation of an adequate school system. as provided by, _ law , but only insofar. as the failure to perform. such duties would or could affect the interests of any holder _or_holders, of any bond, or bonds. . If there is any default in the payment of the principal, of or interest on any of said bonds,,. then, .upon the filing of suit by. anyr holder of „said bonds or of any. of the ,,coupons , any court ha g j .diction , of the action may appoint a receiver to vin uris ' 'd school _buildin ro erties on behalf of the City and/or the, Board of administer sai _ g. -p--..p ; - .. ,- _ Education of Paducah, ,.Kentucky , with power to charge and. _ collect rents sufficient to _ ~ r, provide .for, the payment of any bonds or obligations.. outstanding, and for the. payment p _ g _ex enses , includin insurance , and to a 1 _ the income an reven of the o eratin. p _ _~_. ->g .t; ..,__ ,~, ~f~- .,.._. PP Y.,- ~ ,,,- .._... ues in conformity herewith, and in conformity with the, provisions of said laws of Kentucky aforesaid . SECTION 11. Bonds which in the Bond authorizing Ordinance are authorized p to be issued and from time to time outstanding shall not be ,,entitled to or ermitted 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, re- gardless of the 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 actually issued and delivered at different times . .-. - _ .... _ ,v. _ _ ,.. ~ ... - _ _ . 3 . .. ~ .. 343 SECTION 12. While any of the bonds which in the Bond authorizing Ordi- nance 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 secu'r`ity of"such `bonds ~ or `fother obligations on tiie revenues and on the said school buildings is` made~~Juriior and sub- ordinate 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 from 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 otlierwise available,` of` completing the additions, construction and recon- - _ . r.. - struction of said school buildings and appurtenant facilities in accordance with the plans and specifeatioiis~ which -are 'initially completed, 'approved by the- Superintendent _ . _ _ _ of Public Instruction af' Kentucky and by said Board of Education, "-arid filed in the office of the PCity' Clerk; but =before any such additional bonds ranking on a parity as aforesaid are issued, ~ the issuance^ thereof shall be approvecY`by''the proper agents of the State Board for• Elementary 'and Secondary Education, as required ~y` law, and a _ __ . Supplemental Contract of Lease -and Rent shall have been entered into , whereunder ._ the respective annualrental' payments -during- the life of such additional` bonds are increased ` by the amount of the 'annualinterest ~ and principal requirements of such additional bonds; and the interest -payment dates for such additional bonds shall be . April =3~ and° October 1 of each year, ~ and 'the principal maturity dates shall be on October ' 1. Any ~additians; extensions or p ''' im rovements" made to sand school building ... grope"sties shall likewise=be' subject to said statutory mortgage lien provided in Section a10 hereof', ~ : ` , .. ' . ~ ~ _ _ _ _ '~ '' SECTION X13.' ~So~ long as any of said °bonds are -outstanding, the~~Ctyshall keep proper books of 'r"ecords-"'and accounts (separate from all other records ~ and ~ - accounts) in which complete and correct entries shall be 'made''of' all 'transactions re= - _ - . lating` to said school building properfies =~ Th"e City will furnish` on~ "written request of any Polder of said bonds`; witYiin' thirty` '(30) days after the- close of each six months' fiscal period,'complete`'operatrng arid" "in'come statements in 'reasonable detail covering .. such six' montY~s'~-period- arid, within sixty (60) days after the close of each fiscal year-, complete' fnancal~~ statements ~ of "said` project ~in reasonable detail covering such fiscal year . " ~ = - , ::, , .. :. - _ - _ - - - SE-CZ'IO1V 14. If anq'-seeton, paragraph; clause or provision of this ' Resol-ztion shaaa beheld}"invalid; fYe invalidity'of' sucYi section,'-paragraph; clause or . .. provision ~ shall not -affect any of the remaining-provisions`. ~ - 344 SECTION 15. The Mayor is authorized to execute and to cause to be published (a) in The Paducah Sung-which, is a daily newspaper published in the City of Paducah, Kentucky, (b) in The Courier-Journal, Louisville, Kentucky, a newspaper. of general circulation -throughout -Kentucky,.,. and (c) in The- Daily Bond Buyer;• New York, New York,- afinancial -newspaper- or journal- of .nationwide circulation among bondA buyers, an appropriate form of "Notice of Sale... of Bonds!' , soliciting sealed., competitive bids. for the purchase of all• the bonds. which in the .Bond authorizing Ordinance- are- authorized, the same to be- •received in the office .of the ~ City Clerk until, a itime= at <;~' prior to the occasion of,a regular, ,.adjourned,. ,or. special meeting of the Board Hof Cea~missioners, as the Mayor .may determine; ...upon. which.--occasion the. -sealed, competitive bids theretofore received in the office..: of ,the City-.Clerk-,,; after. ;public< opening by the City Clerk and tabulation. and comparison by the :Fiscal Agent, shall be referred to the Board of Commissioners for.-consideration. .Such public notice shall be published as-•provided in KRS Chapter- 424, . as amended, -not less than 7 nor. more than 21 • days in advance of the date stated •therein for- the opening and consideration of purchase ~bids . Such notice shall require-bidders to offer not_less than~98o of the face amount of the. bonds so offered, .together with accrued interest from the date.-. of the bonds to the- date of delivery,,,,, and shall- require bidders. to• stipulate. one or more interest coupon- rates of their own choosing, •pr-oviding each• rate is <a multiple- of one-eighth., •one-tenth; or one-twentieth, of one.-.per cent (1/.8,- 1/10 or ;1/.20. of3r]~),,,a.nd.-is,_._~g higher han 7-3/4% per .annum, and ,-only- one .coupon .rate may be- specified. for• bonds~,matu~;ng on the - same .,date, -Coupon rates ,shall be.~on~ an .ascending scale in that- no .rate- may belower than -any.-earlier, rate. ,-;.Bidders shall be ..further advised that the•City-will not entertain any. proposal: that. .interest becoming due as to-:any -bond= on -any °interest - payment date be represented by more than one coupon . Each bond shall -bear interest at a single..rate from; date to maturity-. - --The: right to. reject ,bids and fio-wave any in- formalities or ..irregularities deemed -by...the Board. of Commissioners to-be immaterial shall ,-expressly .be-.reserved.. - - -.. • -; - - - SECTION 16 .- _If, at the .time ,the bonds. are .caused,.to be printed or.,other- wise manufactured, it .s,hall be .apparent: that on;e or. more- inter-est. coupons wi11~ -be ---_ ; past due by the tune ,of delivery.. thereof , the ,-manufacturer may ,b:e~ instructed .not- to manufacture such past-due coupons.,. in-which- event,,a>-4certifi-cateror~-le~t~r; of the printer or manufacturer .of. tile, bonds ;shall. be..furnished- to the,-.C~t~.Treasurer, and.. -- may be accepted by the City Treasurer as evidence thereof; otherwise the City- Treasurer -shall.; detach .and cancel such .overdue coupons prior to -delivery <-of the bonds . SECTION.. 17. .When. any bonds: =of -the; series authorized by -said- Ordnance• are sold and delivered, the amount r.e.ceived• from the purchaser asrepresenting accrued interest thereon, shall immediately be deposited in the Bond Fund, and shall 345 be applied toward payment of the first interest coupons next thereafter becoming due . The remaining proceeds shall be deposited in the "Construction Fund", as herein- after provided . From such deposits in the "Construction Fund" there shall be paid all expenses incident to the authorization, sale and delivery of the bonds, including the fee of the Fiscal Agent as contracted, and the charges made by Rating Agencies for rating the bonds, if any such charges are incurred; and thereafter the entire balance shall be devoted exclusively to the payment of costs of the school building ;. , ~ _ ~ . construction and reconstruction projects upon the sites described, and according to the plans and specifications duly approved and filed as provided by KRS 162.160 and 162.170; provided, however, that if, prior to the time when the bonds have been delivered to the purchaser thereof and the proceeds are available, the Board of Education of Paducah shall have found it necessary to advance from its own funds various sums for architectural fees, amounts due to the contractors, and other proper costs of said projects, the aggregate of all such advancements may be reimbursed to said Board of Education upon presentation by said Board of 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 the 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 re- maining in the "Construction Fund" , hereinafter created , will be sufficient to defray all remaining costs of the projects. No reimbursement shall be made to said Board of Education if the effect thereof shall be to reduce the balance in said "Construction Fund" below the amount shown by the certificate to be necessary to pay all remaining costs . The proceeds of the sale of said bonds, as aforesaid, shall be deposited in cash in a bank or trust company (hereinafter referred to as the "Depository Bank") , which shall be a bank or trust company in Paducah, Kentucky, which is a member of and insured by FDIC, the same to be designated in the Ordinance authorizing issuance of the bonds, in a separate account designated "City of Paducah School Building Revenue Bonds , Series of October 1, 1979 , Construction Fund" , (hereinafter for con- venience referred to as the "Construction Fund") , provided that simultaneously with the making of said deposit, such Depository Bank shall give security for said deposit (to the extent of the excess over the amount insured by FDIC) by making a pledge to the City Treasurer, the said Board of Education and the City of Paducah, Kentucky, of obligations of the United States Government having a market value, exclusive of accrued interest, at least equal to the amount so deposited. The securities pledged by the Depository Bank need not be of a market value exceeding the balances re- maining in said account from time to time and as payments are made out of said account, 346 the Depository Bank shall be permitted to withdraw a portion of the pledged securities, provided, however, there shall remain pledged at all times securities having a market value, exclusive of accrued interest, equal to the balance remaining in said account to the extent not insured by FDIC . If the Board of Commissioners of the City of Paducah , Kentucky , shall determine at any time that the amount of bond proceeds being held for construction costs is in excess of the amount necessary to be disbursed therefrom for the authorized purposes during the ensuing calendar month, it may (subject to the arbitrage covenants hereinafter set forth) direct the Depository Bank to: (a) make time deposits thereof on an interest-bearing basis in a bank or banks which are insured by FDIC , evidenced by certificates of time deposit (issued in the name of said Construction Fund and delivered into the custody of the Depository Bank) , secured at all times by a valid pledge , on the part of each issuer of a certificate of time deposit, of United States Government securities having at all times during the continuance of the certificate a current market value (exclusive of accrued interest) at least equal to the amount not insured by FDIC; the custody of such pledged United States Government securities , whether actual or constructive , to be in a financial institution other than the issuer of the certificate of time deposit in question, or (b) invest such excess in obligations of the United States Government or obligations the principal and interest of which are fully guaranteed by the United States Government , having maturity dates or being subject to retirement at the option of the holder not later than the date upon which it is anticipated the proceeds thereof will be required for proper purposes of the Construction Fund . Provided, however, that such securities and/or certificates of time deposit shall be reconverted into cash and deposited in said Construction Fund, as and when additional cash is required to pay construction costs; such conversion into cash to be made by the Depository Bank, when necessary, without further authority. All such certificates of time deposit and securities shall be carried to the credit of such Con- struction Fund; and all income therefrom shall be deposited, as received, in said Construction Fund and constitute apart thereof. Any expense necessarily incurred and _ _.,., _ .. .. _.. , , - - y. ,.,..., ._ . reasonable as to amount in connection with the making of such time deposits and in- vestments and the safekeeping thereof shall be paid out of the Construction Fund . Inasmuch as the School Building Revenue Bonds, Series of October 1, 1979, herein referred to, will be authorized and issued by the City at the request of the Board of Education of Paducah, for the purpose of paying the costs of adding to, con- structing and reconstructing school buildings to be leased, rented and occupied by _ - - ,. .. ~. -, .. .. r said Board of Education under the "Contract of Lease and Rent" conforming to KRS 162.140, it is directed that payments from the cash funds from time to time so de- 347 posited 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 Treasurer of the Board., of Education of Paducah, Kentucky, hereby., designated r. -~ ~ the "Construction . Treasurer" , . rather than by the City Treasurer; _- .., provided, . however., _ saic~..Construction Treasurer.. shall fur-nish a fidelity bond .in the penal sum of at least $200, 000 , con- ditioned upon faithful performance of 'the responsibilities incident to making disburse- meats from the .Construction Fund and the making of a true. accounting therefor , such 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 disbursement 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, con- struction .contracts..which are under the. supervision of one of the firms..of .Architects, e supporting . voucher may be signed : by the Superintendent of .Schools of said Board th 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 coinpLetion of the school buildings .projects on the sites described 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 Supeintendent of Public Instruction , any balance remaining in said Construction Fund shall be, transferred to the "City of Paducah .School Building Revenue Bond and Interest Redemption Eund, Series .of Octpber 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 ."Con- tract 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 pursuant to the .:provisions of Section 8 . hereof. .. .. , SECTION .18.. (A) In this Section. unless a different meaning .clearly appears from the context: (i) "Code" means' the Internal Revenue Code of _1954 of; the United States of America, Title 26 rof fhe .United States Code as amended to the ,date of adpption of this. Resolution or as .hereafter _,. amended, including. valid Regulations of the Department of the , .. Treasury thereunder; . (ii) References to a provision of the Code by number or letter include reference to any law hereafter enacted as amendment to or substitute for such provision; 348 (iii) Words which are used herein and in Section 103 of the Code shall have the meaning given to such words in or pursuant to said Section; (iv) "Bonds" means the "City of `Paducah School Building _ Revenue Bonds, Series of October 1, 1979!!, the sale of which Bonds will' 'be authorized' iri and by the Bond` authorizing Ordinance; ~ " f~(v) "'"Board of rCommissioners" "means the Board of Commissioners of the City of ,Paducah,. Kentucky, acting accordin.g_ to KRS .162.120 to .., ;. _ " ~ 162.290, inclusive. ~ .' ~ ~ -- -- _ . "~~- ~ The City of Paducah aiid the Board of "Commissioners shall at all times do and perform a1T acts `arid" things required or permitted -by law ~ and neces- Y... sary or desirable in `order to assure that interest paid by the City~on the Bonds shall, for the purpose of"Federal income taxation, be exempt from income taxation _ _ ~ ,..,...,::.lid'. _ :- under an va 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 the Bonds or other funds of the City to -. be useddirectly or indirectly to acquire any securities or' obligations the acquisition of which would -cause ~ any such Bond to be ~ an "arbitrage bond"~ asdefined in Section . ., o .. 10.3 of the Code as then in effect and' to be subject to `treatment under said Section as an obhgatiori n got described in subsection (a) (1)" of said Section, unless; under any valid provision 'of 1"aw 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 se- curing and protecting the ~ holders of ~ the fonds ~ 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 related to the Bonds to invest (and said ,: -. Board of Commissioners and financial institutioris -shall `riot invest) tYe proceeds of said Bonds 'n~ any obligations that produce a yield in± excess of such applicable maximum yield' as may be permitted by the Code . - (E) More specifically, at the time of the adoption of this Resolution and on the basis` of~ the facts, estimates and ci"rcumstances presently existing: (1) It is not expected that the proceeds of tie ~Bonds-~~' available_,~or the school buildings pro7'ects herein referred.,to will exceed the actual _amounf necessary to `be -expended, for such purpose by as much as _5 0, because the size of .the bond _ A.. . _ issue _ will be ;determnedA' on the .basis, 'of actual contracts, .and __, the provision for possible change orders and unforeseen ,con- tingencies will be small; 349 (2) At least 85 0 of the spendable proceeds of the Bonds will be, expended- for .the school building projects within three years from and after the date of delivery of the Bonds; (3) Money received from the purchasers of the Bonds ~as -representing accrued .interest .;earned~_ at the time-of delivery of the -. Bonds will be applied to the payment of the first interest coupons thereafter maturing, .inasmuch 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 for. construction of -the projects will, .have been entered into prior to the issuance of the Bonds , since this is required -by .the. statutes .pursuant •to which the .Bonds-. will be issued; and the amounts of such contracts will vastly exceed the sum of $100, 0. 00 and. vastly~.~exceed_ .2-1/ 2%. of the ..amount. of the bond 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 the City and the Board of Education grants to the Board of .Education the right to purchase and reacquire one or more or all of the properties upon payment of specified sums which will be applied to the redemption and payment of Bonds . (F) The City of Paducah and the Board of Commissioners further covenant that prior to ..the issuance :of said Bonds and as a condition precedent to such issu- ance the City shall certify by issuance of a certificate, supplemental to this Resolution, of a City Officer having 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 circum- stances in existence on the date of issue., of said Bonds, including the matters specifically stated in the foregoing paragraph (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 Service proposed Regulations .... „ ., ,: , 1.103-13 (aj (2) (ii) adopted by the Department of the Treasury, Internal Revenue Service , pursuant to Section 103 (c) of the Code . *'~'~'~ ~ In numbering, Section 19 omitted by inadvertence ------ SECTION 20. The provisions of this Resolution are intended to be incor- porated by reference as a part of the Bond-authorizing Ordinance, to~ be,-adopted at a later time, and if so incorporated by reference they will, together with the pro- visions of said Ordinance,__constitute- acontract 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 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 pro- visions of this Resolution are , to the extent of such conflict , hereby repealed .