HomeMy WebLinkAboutOrdinances Book 9, Page 667, No Resolution NumberF.
A RESOLUTIO:,' AUTHOF'I:.ING THE MAYOF AND COTTTI SSIONFR OF PUBLIC
FI7ANCE TO PLEDGE '117MPORARILY SIXTY (60) ONE THOUSAND (fp1000.00) DOLTAF
BONDS TO THE PEOPLFS NATIONAL BANK, AND ONE HUNDRED AND EIGHTY (180)
ONE THOUSAND (,x1000.00) DOJLAR BONDS TO THE CITIZENS SAVINGS BANK OF
THE ISSUE OF DECEPBER 1, 1931 OF FUNDING BONDS OF THE CITY OF PADUCAH,
PTNDING A SALE OF SAID ENTIRE ISSUE OF B014DS OF THREE HUNDR-D AND FIFTY
TFOUSAND (,,350,000.00) DOLLARS, FOR TFE PURPOSE OF PROTECTING TFE NOTES
AND OBLIGATIONS OF TAF CITY OF PADUCAH FOR `.' ICH SAID BONDS WERE ISSUED,
AND PROVIDING THE MANNER III':".fHICH SAID BONDS SHALL BE SELECTED.
"dHEREAS, the City of Paducah is indebted to the Peoples
National Bank in a sum aggregating Sixty Thousand ($60,000.00) Dollars
for moneys borrowed during the year 1931, and is likewise indebted to
the Citizens Savings Bank in Paducah in the aggregate sum of One Hundre(
and Eighty Thousand (180,000.00) Dollars for moneys borrowed during
the year 1931, and
VFjTER-AS, the City of Paducah has prepared and offered to sell
an issue of Three Hundred and Fifty Thousand 0;350,000.00) Dollars of
Funding Bonds of said city for the ourpose of funding its floating
indebtedness, and for the specific purpose of paying the said two items
of indebtedness aforesaid., and
::'HEREAS, on account of the condition of the bond market at the
present" time it is found to be impossible to sell and dispose of said
bonds for an amount required by the Constitution and laws of "the state,
and
'..TIEREAS, said indebtedness aforesaid is no,,*., due and it is
desired by the City to protect the same ,.ith a pledge of said bonds
until said bonds can be sold, NO{J, THEREFORE,
•, BE IT RESOLVED BY THE BOARD OF COM'JISSIOTTrRS OF THE CITY CF
PADUCAH, KENTUCKY:
SECTION 1.
That.the Mayor and Commissioner of Public Finance be and they
are hereby authorized and empowered to deposit with the Peoples
National Bank of Paducah Sixty Thousand (5,660,000.00) Dollars of the
Funding Bonds of the issue of December 1, 1931, and to deposit
,^iith the Citizens Savings 'Bank One Hundred and Eighty Thousand
(;;180,000.00) Dollars of said bonds of the issue
IM
Page 667
of December 1, 1931 to be pledge as security for the indebted-
ness now due and owing to said banks and their customers by
reason of notes executed by the City of Paducah to said banks
during the year 1931, and for the payment of which notes said
bonds were authorized to be issued. In selecting said.bonds
they should be taken as ngarly pro rata as possible from each
years issue and the whole period of time for which said bond
shall run, and a list of said bonds by numbers and dates of
maturities shall. be made in duplicate; one to be retained in
the office of the Commissioner of Public Finance and one to be
delivered to each of said banks, respectively, and said bonds
will be receipted for by said banks, but the said bonds, though
.held as a pledge or collateral to said notes, shall not be
sold by saidbanks but upon thirty days notice at any time the
banks may require the city to take up said bonds and replace
them with others or other satisfactory security should the said
banks become dissatisfied with said security. At any time
when ;he City of Paducah can sell said bonds for a price
required by the Constitution and laws of the state said banks
will release said bonds to purchasers and receive the amount
of indebtedness for which said bonds are pledged from the City
of Paducah out of the proceeds of said sale.
SECTION 2.
This resolution shall be in effect from Its
adoption.
Signed��c.�lJ�
u`F'ayor
Passed by the Board of Commissioners January 2, 1932
Recorded by Clerk, January 1932.
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