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HomeMy WebLinkAboutOrdinances Book 10, Page 365, No Ordinance Numberri Pare 365 AN ORDINA !CE AL'TriOttIZING AND PhUV:L), (d '•'Uh "iI_L r;U::"' 1'ri.:CTIO'fi OF CERTAIN ADDIU.0�1:1 Iti1PHOVE,-:1-J!15 TO TH,� !_!i r",L HOSPITAL; A['IHOhIZIi.G THE ISSUMITCE OF' OIdE HUI'i.)l: ,i;D FIFTY THOUSA !i) DOLLARS (:'.:150,000.00) OF HOS?ITA'L HEVENLE BONDS OF 'LAE ! CITY OF' _'J.DIMAH Ul'IDL-i P:ND PUhST1f,I'.T TO Ci4,2MH 92 OF THE 1938 ACTS OF THF: GE::i1.,!1L A"'-SE:-BLY O.i' is . i'l C:a POii THE i'UhtOSE OF' PROVIDING FUNDS FOii SUCH C071STitUCTI01: A?i..- 70; TitF_ HETIREI.LITT 0;1 E/ISTING FOUR PERChPI'C (4,) 'iOS?ITAL LL-VLMBOPDS AUTHOHIZEi ORDINANCE PASSE!) 'Yi.ill APPIWIJE'D ON JULY 15, 1938; PhOVIDT; G Trlc: I='Ui.: OFSAIDOF THE COUPONS MLRE.TO ATTACHrD; °aU':%IGINC FOI; THE COLLEC is UN, SL 1i hG l'IOI hC:D vaS PtiIBU`PTOiQ OF '['ift RLVcr:UES SAID HOSr'_ PAL Ii:.PrtOViD; kOVIDING FOh THE SAFENNJARDIN, G, PhOTECTI�:G A.:U PAYING OF' SAIL) IJIHLCTING THE CITY TO ADVhHTISE A:ij '-TOLL) A PU LIC (:U�,.rh'P, T1VE "ALF: OF SAIL) '30NDS HhREBY AU'Ei0,1IZED; A�!L) P,OVIL)iWG FOR '.NHL APPLICATION OF THE PROCEEDS OF SALE TO THE PURPOSLS SET FORTH H'.,iIN. vdHEREAS the City of Paducah in :'.:cCracken County, Kentucky, a Kentucky municipality of the second class, has heretofore by ordinance passed and approved on July 13, 1938, established and provided for the mainter:ante and operation of the Paducah Piinici- pal Hospital in said City and by said ordinance authorized the iesuance of One hundred Thousand Dollars ('c100,0DO.00) principal amount of '.City of Paducah-.unicipal iiosaital Revenue 7.onds" dated as of July 1, 1933, maturin, serially on January 1st in the years 1941 to 1960 inclusive, with coupons attached for the semi-annual payment of interest at four percent (4J,) per annum, the proceeds from the sale thereof to be applied to the payment of the cost of I acquiring, improving and equipping said municipal hospital, and 'iiHEhr.i'.S, Pdinety Nine Thousand Lollars (zt99,000.OD) prin- cipal amount of said .four percent (4p) bonds have heretofore been executed, issued and delivered for value received to Disaster Loan Corporation, which Corporation is still the o,. -mer and holder thereof; arra bond numbered one hundred (100) has never been issued and still remains in the custody of the officials of the City of Paducah, and VMEi?EAS ,, portion of said Paducah ?,'unicipal Hospital has heretofore been damages by .fire and :it is considered necessary I jand desirable that a new addition or wing be constructed in the place thereof at a cost of approximately liinety Thousand Dollars (?, 90,000.00) according to plans, specifications and cost estimates I� heretofore prepared and submitted to the Board of Commissioners of the Ci Ly of Paducah, and Page 366 WHEREAS the pork Pro rens Administration of the United I' States Government has made a commitment to furnish to the City o£ Paducah the s= of Forty '.thousand Sollars (040,000.00) or its egi.ivalent in labor and/or R terials, and it is now both necessarj i, and desirable that the City should provide the balance of the Ij I estimated cost of such additions by the issuance of Ona Hundred and Fifty Thousand Lollars ("150,000.00) or_ncipal amount of new three and three-fourthsrcent pe (3-3/4f) hospital revenue bonds, � i �I the net proceeds from the sale of t:h:ich mai be used for the retire- ment of the outstanding bonds above referred to ann to provide I the City's portion of the expense and cost of constructing said additions and improvements, and, 'MALAS the four percent (4;) bonds heretofore issued and now outstandin; as above set forth are not callable, but Disaster Loan Corporation has Indicated its willingness to sur- render the same for cancellation upon payment be said Disaster Loan Corporation for the per value of sold bonds, to7e1thev with interest accrued thereon to lie date of such surrender, cancella-t II tion and payment, and ;•iHEREAS the issuance of additional bonds is expressly ii authorized by Chapter 92 of the 1935 Acts of the General Assembly) �i of Kentucky, NOYJ 'LNEHEFORE E IT ORDAINED BY THE BOARD OF COl[1LISSIONEHS OF THE CITY OF PADiiCAH, fEiITLCICY, AS FOLLO'eiS: j Section 1. Additions and improvements to the Paducah I Yunicipal Hospital shall be constructed In accordance with the I plans, specifications and cost estimates duly prepared for and approved by this Board of Commissioners. Section 2. Simultaneously with the delivery of the i bonds authorized by Section 3 of this ordinance, bonds numbered one (1) to ninety nine (99) inclusive of the issue of "City of I Paducah i:'unicipal Hospital Revenue Bands" isa;ed by the City of Paducah under date of July 1, 1938, shall with the consent of and by agreement with Disaster Loan Corporation be paid, canceled and 1 retired in the manner hereafter set forth in this ordinance. I Simultaneously with the payment, cancellation and re- tirement of said bonds numbered one (1) to ninety nine (99) in- I clusive of said ism e, bond numbered one hundred (10D) of said I issue shall be cancelled and voided by the City L:ana,;o:r of the i I City of Paducah and thereafter all of said bonds, to_ether M th � I I the unpaid coupons thereto attached, shall be destroyed by .fire 11 by the City ..:an a nr and the City ° anaZer shall theroaf ter ma' e Pale 367 and file with the Board of Commissioners a certificate to the effect that all of _.a'u Fronds have been so canceled and lectroyed.l Section 3. Per the purpose of lefrayin_ the City's portion of the cost of the additions and improvements referred to in Seftion 1 of this ordinance, anti for the purpose of pro- vidin; funds for the payment of the bonds referred to in g.ection 2 of this ordinance, there shall he and there are hereby authorized , II to be issued, pursuant to the provisions of Chapter 92 of the 19381 jActs of the general Assembly of Kentucky,inow codified as Sections j 32351-1 to 32::51-18 inclusive in the April, 1939, number of i �i Paldwin's Kentucky Statutes service), one hundred and fifty (150) bonds of the City of Paducah to be l.noem as "City of Paducah Yunic,ipal r ii Hosoital Revenue Ponds" in the a Bre ate principal sum of One i Hundred and 71fty Thousand Dollars (;;5150,000.00), to be dated I' as ci the first daof October, 1940, to be numbered consecutively, i I from one (1) to one hundred and fifty (150), both inclusive, to be of the denomination of One '=:-iousand Dollars (i,>1,000.00) each, to bear interest at the rate of three and three-fourths percent (3-3/4Q per annum, payable semi-annually on the first day of April and the first day of October in each year, commencing April 1, 1941, evidenced by coupons attached to said bonds, and to mature serially in the followini amounts on October lst, of each of the following years: I I Bond humbers Tnelusive Principal 0 aunt Date of Waturity 1 to 8 F_jb,_ j3.00 October 1, 1941 � 9 to 15 7,000.09 October 1, 1942 16 to 23 8,000.00 October 1, 1943 24 to 30 7,000.00 October 1, 1944 31 to 38 8,000.00 October 1, 1945 39 to 45 7,000.00 October 1, 1946 i 46 to 53 8,000.00 October 1, 1947 54 to 60 7,000.00 October 1, 1948 61 to 68 0,000.GO October 1, 1949 69 to 75 7,000.00 October 1, 1950 76 to 83 8,000.00 October 1, 1951 ` 84 to 90 7,000.00 October 1, 1952 91 to 98 8,000.00 October 1, 1953 99 to 105 7,000.00 October 1, 1954 106 to 113 8,000.00 October 1, 1955 114 to 120 7,000.00 October 1, 1956 1.21 to 128 8,000.00 October 1, 1957 129 to 135 7,000;00 October 1, 1958 1 136 to 143 8,000.00 October 1, 1959 144 to 150 7,000.00 October 1, 1960 i i Both the principal of and interest on said "ponds shall be payable at the office of the Citizens Savings Bank Paducah, Kentucky, in such funds as are on the respective dates of payment legal tender for the payment of debts due to the United States of America. i Said bonds shall be s:i. zned by the L.ayor of said City i, v and sealed with the corporate seal of said City, attested by the i I; City Clerk, and interest coupons attached to said bonds shall be executed with the facsimile signatures of said Yayor and said Page 368 11 City Clerk, and the City officers by the ezeciation of said bonds shall adopt as and for their own proper si.,_narures, the respective I facsimile si^natures on said coupons. All of said bonds to;-cther -with interest thereon shall be payable solely out of the "Paducah i I, "unicipal Hospital Bond and Interest Redemption Fund" hereinafter Ijreferred to and out of the fixed amount of the ;dross amount of the, revenues of said hospital which are hereinafter pledged to said fu -id. !I Section 4. Said bonds and coupons shall be in sub- I stanti.ally the followin,- form, to-wi-t: I I ji (Form of Bond) i T?''T IED S'TA'['E'S OF M,'EHICA Oflv4EAL`Cf OF KEp;TiCKZ C ?i Dl TY 01` L:rCL�Cti,r I CI i i:ICI?AL '.n. 131,000.00 G :—r i -Er! 3Y TH-I SE P3ES _IT'S: That the City of Paducah in the Col.uity of ,'cCracken in the Commonwealth of Kentucky, acknowled es itself to owe and for value received hereby promises to pay out of, and only out of, its Paducah i.:uaicipal hospital Bond and Interest redemption Fund", to the bearer, the sum of One Thousand Dollars (1..1,000.00) on the first day of October, 19 , and to pay interest on said sum frolt the date hereof until paid at the rate of three and three- fourths percent (3-3/4b) per annum, payable semi-annually on the first days of April and October in each ,year, beginnin? April 1 1941, upon the presentation and surrender of the annexod interest coupons as the same severally mature, both principal and interest cc'n° payable at the office of the Citzzens Savin -s Skan awtcah, Kentucky, in such funds as are at the time of the respec- tive payments le -al tender for the satisfaction of debts due the i' ited States of America. This bond is issued by said City pursuant to an ordinance duly enacted, for t -le purpose of refunding a prior bond issue and to provide additional funds for the construction of additions and � improvemEnts to the Paducah i,.unicipal Eospital in and of said city of Paducah, under and in full compliance with the constitution andl statutes of the Commonwealth of Kentucky, includin, anion-, others Chapter 92 of the Acts of the rreneral Assembly of Kentucky, 1938 Regular Session. I This bond and the issue of which it is a part is payable only from and secured by an exclusive pledge of a fixed amount of the L,orss income and revenues to be derived from the operations off said hospital, which amount shall be sufficient to pay the principi al hereof and interest hereon as and when the same shall become due and payable, and which shall be set aside as a special fund for that purpose and identified as the "Paducah .duricipal Hospitals fond and Interest r(edemption =und" and this bond does not con- stitute an in iebtedness oi' the City of Padi:cah within the mean— in-of any constitutional provisions or limitat_ons. The City of J Paducah covenants that it %!Ill fix such rates for hospital ser- vices and vrill collect and account for the income and revenues from such hospital as will be surf tient to pay promptly the j principal of and interest on this bond and the issue of ..ha9ch it nrms a ;part, as the sarse shall become due. This bond shall be fully negotiable and shall pass by �delivery. The City shall treat the holder of this bond or of any i of the coupons h.creof as the absolute owner thereof. �I 'CfZis bond is subject to call for redemption prior to its states maturity on any interest due date aftec October 1, 1943, providing that if less than all of the bonds outstandinz are to be called, the bonds shsll be called in their inverse J numerical order and providin,, further that notice of the calling hereof shall be iven by publication in a newspaper of eneral circulation in Paducah, Kentucky, at least thirty (;J) days prior to the aiedemption date soer,i.fied in such notice and providin Pare 369 further that on the redemoti.on date, the City of Paducah shall to the pay holder hereof the face amount hereof plus accrued interest to the redemption date at the rate specified herein. . A statutory mort„aZe lien, which is hereby recognized as valie and binding on said hospital, to ether with the improve- ments and appurtenances heretofore or hereafter added thereto, is created and granted to and in favor of the holder O.r holders of this bond and the issue Of v;l-:ich it f'or'ms a part and of any of the coupons attached to said bonds, and said hospital and all improvements and appurtenances thereof and extcr:slons thereto shall: remain subject to such stats tory rrlOrL;a,e lien ulLil the pa ment in full of the prinicpal of and i :interest on th:i^ bond and the Issue of which it forms a part. This bond is exempL from ta;:at _on :in th.c rin : ::r„' Of i.entucl;y, wealth IT is acts, conditions <^,r;l C ., L_ .... 'J that all 1)CIM, and to e performed,'once c:t rn n,_i ,.n c,e e :ist have ?1a�pened , nd, do and u ave Jeen pex orme n and ^tanner, as "L:. orm rec2,_r'ed by law ant Lnat the c�ouui; th:is Load, L o ether ;>>th all ot-2er obli_at,'.ons o said Cst am lima. tation rescribed by . , Moes not exceed p the const* or statutes o_ the CommonwealLh of r.en:uckan that f J, at a surf c1*.ent amol-r.nt of the in- come and rsvenues o sa'd :".ospi- tat has been ire set aside into a "eci.al full b:� the City .� - Bled ted to and c; ill o' Paducah ventucliy, or the prompt oa;,ment of the ?rincipa.l o," and Interest oil this bond ana the i::s :,, , .:'.r. �+h it Corms a Dart. the Ci bOn•II to be s :. Gy O.. PF;i UL; C;a .• hascaused this .. I1eC1 by Its 1Ul1 al r}�Or ized ,. a`jor and has caused its corporate seal t0 be hereto affixed, atLesLed by its duly aL'LI!.orized City Cler!<, and has caused the coupons hereto attached to be e ecutea ,:ith the facsir::ila s.71 natures of said ._a•ror and said Ci ty Clerl--, v;l c}; off.i cers by the execnL:i on of this bond, do -.dont s and for their' orrn proper s -naLures the respective f si -;na tares ao car-r_; on ' ' acsi:nil e p said coupons, all as of Llio first day October, 1940. of — --- (SI3J,L) a'Tor • City Of Paducah,__ i, NEST: ---- —___ City Clerk City of Paducah, Kentucky i (FGKI,' O:' COPPOii) Bond :'o. -- Coupon No, 10.75 i Unless the bond to which this coupon is attached shall have been called for prior redemption, On the first day of Ii Paducah, Kentucky, will ' �9 the City of its °Paducah Muninipal i?ospitaltBondeandrInterest R`d only out Fund the sum of '.18.75 Fund at the office of the Citizens-'avin�sp�a�g i<entucicy, bei six months interest; jPaducah, then due on its muni.ci i pal hospital revenue bond above numbered. dated October 1, 1940. ii r-- City of 2aai:.caii, itentucl:y — City of Paducah, Kentucky S .,T I EC _OT: 5. That from and after Lhe ieliver;,* o;” any bonds issued under the provisions of this ordinance sa:i;l t.unic_inal hospital shall be operated on a .fiscal year basis � commenc-InL- October 1st of each year and end n eota,iiber 30th of the sue- ceedin,�;ear y and on that basis the income and revenues of said �::unicipal "Ospi tal of the City of Paducah shall be set aside Into Pale 370 a separate and special fu,d to be used for the retirement of the aforesaid bonds in providin.- a depreciation fund for said hospital and in maintaining and operat.in3 said hospital as fol'lows, to-wit:i That there shall be and there is hereby created an account to b e known as the "Paducah Municipal Hospital ;ond and In•erest Redemption Fund" to which there shall be set aside the "-rocs income and revenues of said Hurn:icipal r;ospiLal such amount thereof as :rill be sufficient to pqy the inLerest on and the principal of i the bonds hereby authorized, and to accumulate a contin,;ency fund as a safeguard against any possible default -rowing out of the con- i tinr;encies unforseen and beyond the control of the City of Naducah� The amount necessary to be set aside into said fund is hereby I determined, as follovrs: To Be ;,et Balance At For the Fiscal Principal interest Aside Into t:nd of I Year Lndin^•_ aturina !riaturinr Bond Fund Year Sept: 30, 1941 x;8,000.00 5;5,625.00 p18,000.00 4,375.00 Sept. 31, 1942 7,000.00 5,325.00 18,000.00 10,050.00 Sept. 30, 1943 8,000.00 5,062.50 18,000.00. 14,987.50 Sept. 30, 1944 7,000.00 4,762.50 9,275.00 12,500.00 Sept. 30, 1945 8,O')O.00 4,500.00 11,21-).�O 11,2JO.00 Sept. 30, 1946 7,OJO.00 4,2JO.00 11,.::7._) 11,937.50 Sept. 30, 1947 8,000.00 3,937.50 10,t J 10,657.50 Sept. 30, 1948 7,000.00 3,637.50 1l,.°:';_:. _ 11,375.00 Sept. 30, 1949 8,0-)0.00 3,375.00 10,0'/C._' 10,075.00 Sept. 30, 1950 7,J:10.00 3,075.00 10,811�.2.J 10,812.50 Sept. 30, 1951 8,000.00 2,812.50 9,512.6) 9,512.50 Sept. 30, 1952 7,000.00 2,512.50 10,250.00 10,25000 Sept. 30, 1953 8,000.00 2,250.00 8,950.00 8,950..00 Sept. 30, 1954 7,000.00 1,950.00 9,6S7.5) 9,607.50 Sept. 30, 1955 8,000.00 1,6'.7.50 8,3&7.50 8,387.50 Sept'. 30, 1956 7,000.00 1,387.50 9,125.00 9,125.00 Sept. 30, 1957 8,000.00 1,125.03 7,025.;iJ 7,-25.00 Sept. 30, 1958 7,0"0.00 825.00 8,562.50 8,562.50 Sept. 30, 1959 8,000.00 562.50 7,262.50 7,262.50 Sept. 30, 1960 7,000.03 262.50 --- The amount by which any such payment in any fiscal year exceeds the a=%;re ate amount of interest on and principal of said bonds becoming due in such year, shall be held in said Redemption Fund as a reserve for continmencies, and used solely as herein pro- vided, j Provided, however, that no.'urther payments need be made into said geder,ption Fund when the amount held therein is equal_ t o I the entire amount of interest and principal that will be payable at the time of the maturity of all of the bonds then remainin,7 out- standing. It in any fiscal ,year the City shall for any reason fail to pay into said Redemption Fund the amounts above stipulated i then an amount equivalent to s uch def ic i ency shall b,• set apart i and paid into said Fund our of the first available ;rocs reve:n..,es of the following fiscal year or years, and the same shall be in I addition to the amounts otherwise herein provided to be so set apart and paid during such su.cceedin_� year or years. Ir- Pa_ -e 371 �! All moneys held in said fund shall be deposited in Citizens it Savin s Bank, and all such deposits shall be continuously secured by insurance from the Federal Deposit Insiv ance Coro oration, or by a valid plede of direct obli,;ations of the United States of America havin_; an eo_ulvalent market value, or shall be invested i Iin direct obli.,atlons of the United States Government, provided, I however, that the i_oard of Commissioners of the City of Paducah, i or the I•:unicipal Hosoi tR1 Commission hereafter created, shall it make sale of a sufficient amount of such obligations to meet interest and principal payments becomin7, due in such year. Such payttents into said Fund shall be as near as prac- ticable made in equal monthly installments, on the lst day of II each month, and in the event the income and revenues during any one year are inadequate to make the required payment into said Fund, the deficiency shall be ma,:e up and paid as aforesaid from the first income and revenues thereafter received, and same shall II be in addition to the payments otherwise provided to be made in :I q such succeedinC months or month. Cie "Pad rah :.u.nicipal Hospital i }Bond and interest R�dempt_.on Fund", as afroesaid, shall be used i solely and wholly for and is hereby exclusively pledged to the I i purpose of payin; the nrir_cipal of and interest on the bonds herein authorized to be issued. In the event the City of Padr.cah shallf a:1 or ne^_lect or refuse, for any reason, to rnalce the payments into the "Paducah i.:unicipal Hospital Pond and Interest hedemption Fund" in the amoun's, at the times and in the manner above set forth, then the holders of 25" of the agyre„ate principal amount of the bonds then out- standinS may elect to declare the entire outstandin; indebtedness i immediately due and payable and may proceed to the enforcement of the security rihts created and provided for the protection _ i i of the bondholders by this ordinance and by the provisions of (1hapter 92 of the Acts of the General Assembly of -entucky, 1938 He-ilr3r Session. Three (3;) percent of the balance of the income and revenues remai.nin after the aforesaid payments into the iedempt:ion Fund shall be set as:icp to a fund to be known as the "Paducah i unicipal 9osoital Depreciation Fund", and shall be deposited in a separate account in said Citizens Savin --,s Hanl- , I and shall be e,:pcndeci in makin �-ood any deorer.i.ati.on of said hospital and the makin7, of any extensions, additions or replace- mentsto the property, the Board of Commis si.orers of Paducah hereby findin; arid determining that such proportion of the balance of the income and revenues is sufficient for said purposes. Any I accumulations of such "Paducah I..unicipal `osoital Depreciation Pa"e 372 Fund" may be invested in direct obli^at=ons of the United States i; Government, 'i�arrants of the Commonwealth of Kentucky, Kentucky �I rid3e Revenue Bonds, or Paducah Municipal 7osoital R„venue Bonds, as the "Municipal Hospital Commission", hereinafter created, may designate, a nd if Invested, the income from the investment shall be carried in the "Paducah i:.unicipal T-Iospital Depreciation ^iurd" I and set forth, and the proceeds thereof shall not be used for any purpose other than as herein provided. jNinety-seven (97,'x) percent of the balance of the income �I and revenues remaining after the payments into the ''.ond and Interest Redemption Fund shall be set aside and used for the .proper opera- tion and maintenance of said L:unicipaj Hospital, the Board of Commissioners of the City of Paducah hereby flndin; and determining i that such proportion of such balance is necessar;;for the proper i operatioh and maintenance of said hospital, but not in excess of the amount required for said purpose. Sect:i on 6. '>rTat ^Mhi.le the bonds authorized hereunder, I or any of them, remain outstandin- and unpaid, the rates for all 1 services rendered by said hospital to said City and to its citizens I or others shall be reasonable and jus L, Lakin-- into account and consideration the cost and balue of Baia hospital, and the costs of maintaining and operat'n- the same, and the proper and neces- sary allowances for depreciation thereo_', and the amounts necessa. for the r eitrement of all b onds and the accruing interest on such bonds as may b e sold and are unpaid ucder the provisions of this i ordinance, and there shall be char.,ed a;ra'.ist all users of said J I hospital, including said City, such rates and amounts for hospitall service as shall be adequate to meet the requirements of this and �- the preceding sections hereof. r:ny hospital services rendered to I the Carty shall in li_':e manner be charged against the City, and payment for same shall be made from the corporate ilznds monthly II into the special fund created by this ordinance as other income and revenues of said hospital, and shall be apportioned to opera- i li tion and maintenance, depreciation and bond and interest redemp- '� I I tion funds as other income and revenues. Ij Insofar as is consistent with the laws of --entucky, said � r,i ty a;;rees that so lonL as any of the bonds hereb;,- authorized j, remain outstanding it will c ause proper books of record and a ccoualt to be kept, separate and apart from all other municipal records and accounts, showing complete and clear entries of all transactions relatin^ to said hospital, and the holder of any of said bonds shall have the right, at ally easonable tunes, to Inspect the i system and all records, accounts, and data of the city relat:in. i thereto. Ya e 373 SECTIOIQ 7. The Eaid City of Paducah hereby covenants and agrees with the holder or holders of the bonds herein authorizld to be issued, or any of them, that it u.'i.11 fai.thfilly and Punc- tually perform all duties with reference to said hospital, required by the constitution and lows of the Commonwealth of Kentucky, including the making and collectins of reasonable and sufficient char^es .for hospital services rendered by said hospital, and will se -.re: -ate the revenues of said hospital and the application of the respective funds created by this ordinance; and the ^,ity here irrevocably covenants, binds and obli-ates itself not to sell, lease, mort-a:a or :in any manner disposo of said hospital, in- cludinv; any and all extensions and additions that may be made thereto, except the r:ort-a-e as provided in Section 8 hereof, until all the bonds herein authorized to be :issued shall have been paid in full, both principal and interest, and the City further covenants and a-rees with the holders of said l:onds to maintain in ood condition and continuously operate said hospital, and to char. -e and collect such rates and chanes for hospital service reddered thereby, so that the -ross revenues will be sufficient at all times to provide for the payment of the opera- tion and maintenance thereof and maintain the depreciation fund and the bond and interest redemption Bind as provided herein. Section e. That for the further protection of the holders of the bonds herein authorized to be issued and the coupon thereto attached, a statutory mort]q}:e lien upon sa:i.d hospital and all properties connected therewith and appurtenances thereto is ,,ranted and created by �!hapter 92 of the Arts of the C:eneral Assembly of Kentucky, 1938 Regular Session, which said statutory lien is hereby reconized and declared to be valid and binding upon the City of Paducah, and upon all the properties constituting the hospital of said City, as provided by later, and shall take effect immediately upon the delivery of any bonds authorized to be issued under the provisions of this ordinance. Any holder of said bonds, or of any of the coupons, may, either at law or in equity, by suit, action, mandamus, or other oroceedin;s, protect and enforce the statutory mort,.age lien hereby conferred, and may by suit, action mandamus, or other proceedin-s, enforce and compel perrormance of all the duties required by said statute, inclu.din'] tyro mac'n and collectinT of sulTicient rates and the seLre=;ration of the income and revenues and the application there- of. Pale 374 if there be any default in the payment of the principal I of or interest on any of said bonds, then upon the Pilin; of a suit by any holder of said bonds, or of any of the coupons, any court hav_in-- jurisdiction of the action may appoint: a receiver to administer said hospital on behalf of the City, with power to I cbar;e and collect rates sufi'icient to )eovidc for the pwrment of i any bonds or obli-at'ons outstandin- a-ainst said hospital, and for the payment of the operat:i.n- expenses, and to a. -:ply the incomel Iand revenues in conformity tit this ordinance'aid the c,rovisions of said statute laws of i�entucky. Section 9. 'Chat the bonds authorized to be issued i hereunder and from time to time outstandin,; shall not be entitled to priority one over the other in the application of the revenues of said hospital, or with respect to flie sta to i:Ory mprt ;ar,e lien securing their payment, regardless of the time or tunes 0f.their issuance, it being the intention of the Board of Commissioners I that there shall be no priority amonS the bonds authorized to be issued under the provisions of this ordinance, .re-ardless of the fact that they may be actually issued and delivered at ciffErent times, and provided further that i:' -ie le`_n a:ji! security of and for any bonds or obl:i::ations herea^ter issued that are _ca.cable from the income and revenues of the hospital shall be subject to flee priority of the bonds 'ter•eby authorized as may from time to time be outstandin3. Sect on 10. Phat for the further protection of the I holders of the bonds herein authorized t) be issued, and for the j protection of the City's interest in said i:iunicipal Hospital, the City h-reby covenants sri th the holders of said bonds and of the coupons thereto attached that so lon_ as any of the indebtedness represented by said bonds or coupons remains outstanding and un- paid, the City of Paducah will procure and malnta:in insurance i upon the nrouerties embraced in the statutory mortra;e lien above referred to, by cr'ni.ch such propnrties will be conLi.nuously in- i cured in food anti solvent -insurance companies a_-alnst loss or da::,a.-e by fire, windstorm and other nate„ral hazards, such insur- ance to be in an arnount at all times at least equal to the then i unpaid balance of the indebtedness represented by the ronds and coupons herein authorized. The policy or policies of such in st:rance shall be written in the name of the City of Paducah I and/or t'ne "Paducah ..:unicipal hospital Commission” (hereinafter referred to) as their interests may appear, and each of such i I lli policies shall bear an endorsement by which the insurance coir;pang it issuin, the same accents notice of the existe: ce of the statutory mor•t._a�e lien er.istin_; in favor of the bondholders t:pit?tr•es_.:ect4�'Va/'�u Pa -•e 375 to the insured .property; but; such endorsement shall expressly provide that any loss or damage occurin,, thereunder shall be V adjusted with and payable solely to the City of Paducah anchor the *PPaducah L:unioipal ospital Co r,iission" and the r espce.tive ; i insurance companies shall be under no obl'_;a'I;I.on to consult with, adjust with or pay to the said bondholders or any of tl-iem, and shall be under no obli_ation to look to the proper appl'ica'tion of the proceeds of any payment or settlement ,r operly made to the City of Paducah and/or the "Paducah L'unicfoal Hospital Commission", Section 11. In the event of any loss or dama_,e to the Paducah Liuni.cipal Hospital within the terms of any such policy or policies of insurance above efer•red to, the City cove- nants and a7_rees with the holders of the bonds and coupons herein authorized .nat tie proceeds of such insurance shall be devoted exclusively to the replacement or reconstruction of the property so damaZed or destroyed so that the same shall be restored to a condition at least as •ood as e::isted prior to such loss or derma,�e and in the event the proceeds of such insuranee should be insuf- ficient to complete and :pay for all such loss or damage, the City of Paducah covenants and agrees that it will appropriate and pro- vide a sufficient add:i.tional sum to complete and nay for the same; provided rovrever, that if the proceeds of such insurance shall be sufficient to enable the City of Paducah to call in and pay all t' -.e bonds then outstanding, to -ether with accrued interest to the date of call, in the manner provided by this ordi:iance, then the City of Paducah may, at its election and option, use such funds to call in, pay, cancel and retire a_1 of the outstandin.S bonds in lieu of replacinZ, reconstructin3 or restoring such loss or damage. Section 12. By the terms and provisions of Section 9 of the ordinance passed and approved on J,ly 13, 1938, above re- ferred to, there was created and established in accordance with the requirements and provisions of Chapter 92 of the 1938 Acts of the General Assembly of Kentucky, a cor.Lnission to be ;_nomas the "Paducah i:'nnicipsl 'osoital Commission". Said Commission a nd the terms and provisions of said ordinance relatinz thereto are hereby expressly continued in full force and effect and this ordinance shall not be construed to repeal or supersede any of said provisions of said ordinance of Jrly 13, 1938. Section 13. The City of Paducah expressly reserves he ri;ht to call in for payment prior to matirity on any interest due date after October 1, 1943, all or any of the bonds then out- Pa;;e 376 standing providin;L that unless all of the outstanding bonds are tol be called, the bonds shall be called in their inverse numerical order and that notice of the callinL; of such bond or bonds shall I be -iven to the holders thereof by -)ublishin_; a notice in a news- paper of-eneral circulation in ?aducah, K+n tufky, at least thirty (30) days prior to the redemption date specified ins uch notice, � i and orovidin_; further that on the -redemption date, the Cit,* of Paducah shall pay to the ovm ers and holders of the bond or bonds so called, the face amount thereof, to,,ether . ith i-nteres t to the i redemption date at the rate specified in said bonds and in this ordinance. Section 14. The bonds herein authorized to be issued shall be offered for sale at a public competitive sale to be held on Firday, i:ovember 1, 1940, at the hour of 2:00 o'clock P.M, in I the o£'fice of the City .,anaZer in and of the City of Paducah. I The City Pr:anager of the City of Paducah is hereby desi,,nated and appointed as a co:;r:itteo of one to advertise and conduct said sale and to accept for and on behalf of the Citi* of P<ducah such i bid as may conform to the terms and conditions hereafter set forth and as may appear to said City-;,:anaZer to be the best bid i receiped for said bonds. I. The City ,.anaZer of the City of Paducah is hereby,* directed to prepare and cuase to be published in a newspaper of Zeneral circulation in the City of Paducah, Kentucky, at least one week prior to the date above fixed for said sale, a notice in words and figures substantially as follows: °Iv0'PICE OF BOND SALE j "The Board of Commissioners of the City of Paducah, i,':cCracken County, Kentucky, hereby dives notice that on Friday, November 1, 1940, at Y, in the office of the City t.:a ra er in and o£ the City of ?aducah, sealed compet'tive bids will be received for :,,150,0JO.00 principal amount of 'City ! of Paducah 1unicipal Hospital revenue Bonds', beim one hundred and fifty (150) bonds of the denomina- tion of '1,000.00 each, numbered consecutively fron one (1) to one hundred and fifty (150) inclu- sive, dates October 1, 1940, and maturing serially '0,000.00 and %,7,000.00 in alternate years on October lst, in the years 1941 to 1960 inclusive, i with coupons attached for the sem_ -annual payment of interest at the rate of three and three-fourths (3-3/4';') percent per annum. Pae bonds will be callable after October 1, 1943, at par and accrued interest. Pull details concernin,,, the bonds and concerning the terms and cond'tions of the sale can be obtained by addressing the Ciba 1,:ana;_;er of the City of iaducah. Bids not conformin; to the terms and conditions of the sale will not be considered. "By order of the Board of Commissioners, i i City F. uiar`;er of the City of Paducah, I,entucky. Page 577 The sale of said bonds shall be held pursuant to the folloviin- terms and conditions, to -ether ::�i t1a any other terms and conditions not inconsistent herewith, as may be prescribed in writinZ by the said City Liana ;er; 1. All bids shall be for all of the 'ponds. Bidders will o'fer a dollar price and v:ill noL bid on an interost cost basis or in any other manner which i regvired computation tod etermine which is the • I hi.rhest aid best bid. In addition to the dollar price specified by the bidder, the purchaser I� will be obli5ed to pay accrued interest on the II bonds from October 1, 1940, to the actual sate i of -delivery and payment, 2. Bids shall be for bonds bear:in:� a coupon rate of 3-3/4,; and no bid for bonds of any other coupon rate shall be c onsidered or deemed to be in com- pliance with the terms and conditions of the sale, 3, it is anticipated that the bonds will be ready for delivery -;.,ithin ten days after the date of the sale bnt delivery is not ;uaranteed until December 1, 1940. 4. Bidders will have no e._;ense in connection with the bonds. The aporovin- le: -al opinion of Grafton ?: Grafton, attorne t; s of Loisville, ;ientucky, will be furnished L r the C ' t and vri ll accompany the bonds when -ielivered ..i tnont e:;pense to the ptirchaser. 5. Bids shall be accompanied by a certified or bank check pa -fable to the order of the City of Paducah in the sum of :.:5,000,00. The check of the success- ful bidder will be cashed and held as a uavantee of performance and the amount thereof vri.11 be cred.i.ted upon the purchase price vr`ie-1 nay]Ment is made. All other chec:s ;;ill immediately be re- turned. 6. The City of Paducah expressly reserves the r i -ht to reject any and all bids either for inadequany of price or for failure to compl,- is i th the terms and conditions of the sale or for any other reason deemed sufficient to the City 1,1ana er vino has been appointed and desi-nated to conduct said sale by the Board of Commissioners. The City 1,1ana.,er shall Ir epare a statement „ivin5 a brief description of the bonds and setting forth the terms and conditions of the sale and shall fulunish such statement to any interested bidder who may request the same. Section 14. After the sealed comtetit:ive bids are re- ceived, the C'' y :_ana,er :is authorized to reject any and all bids on behalf of the City of Paducah and is authorized to accept the bid which appears to him to be the h,.hest and best bid providinS the same conforms to the 'terms and conditions of the sale and appears to the City ,.ana.-er to be advanta eous to the City of Paducah. In the event the City :iana-er accepts any such bid, he shall promptly notify the maker of such bid in crritine and such accepLnance shall be bindinC, upon the City of Paducah. Section 15. V+hen the bonds have been received from the printer and have been executed and are re4dy.for delivery, the Cit ,y i:anazer shall make arranSements 7: :i th 'Disaster Loan Corpo- ration and with lne purchaser of the bonds so gnat the bonds may be delivered to the purchaser and the purchaser may pay the pur- Pa„e 378 chase price thereof and so that simultaneously payment may be I nade to Disaster Loan Corporation for the bonds held by it. From the proceeds of sale the City P::anaer is authorized and directed to pay to Disaster Loan Corporation upon the surrender of its bonds a sum equal to the nar value thereof, to;ether with interest', accrued Ve reon to the date of surrender and payment. The City Mana3er is also authorized to pay to i,essrs, Stein eros 1: Boyce the amount of compensation due to them under their contract with the City of Paducah and if Stein Pros. & Boyce is the purchaser of the bonds, the amount of said compensation may be credited upon the purchase price when payment is made. After mak'nZ the I abovb mentioned payment to Disaster Loan Corporation and to Stein j Bros. z Boyce, the City !tanager shall deoosit the remainder of 'the! I net n,) ceeds of sale with Citizens Savin^s Bank in a Special account arra said funds shall thereafter be paid out upon order • I I of the City ?•:ana.-er solelyf or the payment of costs in connection with the construction of the new addition or ::iin� authorized by this ordinance in connection with the ?aducah T.urricipal 7?ospital. All sums received at the time of delivery of the bonds authorized by this ordnance cr'ni ch represent accrued interest on the bonds authorized by this ordinance, shall be deposited in the "Paducah Municipal Hospital -"ond and Interest Redemption Fund” Section 16. That the provisions or this ordinance shall constitute a contract betti:reern the City of Paducah and the holders of the bonds herein authorized to be issued, and alter the issuance of any of the bonds no chap -le, variation, or altera- tion df any kind of the provisions of this ordinance shall be made in any manner, except as herein provided, until such time as all of said bonds issued hereunder and the interest thereon shall{ i have been paid in full. Section 17. That if any section paragraph, clause or provision of this ordinance shall b e held invalid, the invalidilty of such section, pararaph, clause or provision shall not :affect any of the remainin.- provisions of this ordinance. . Section 16. -That all ordinances, resolutionsand orders or parts thereof, in conflict with the provisions of this !� ordinance are to the extent of such conflict hereby repealed. Section 19. 1rhis m dinance shall be introduced at a re;ular meeting of the Hoard of Commissioners and shall r emain on file I'! in its completed form for public inspection at least one (1) week. i I' before bean; put upon its final oassa;e, and if adopted, said ordinance shall be in full force an', ffect ten (10) days thereafter. ; Mayor intro ',„..:ii october 15, 1940 to ., the ?c.2rc] , f Commissioners, October �2, 1940 „- ,+• •i I. ::a -rt, City Clerk, October 23 1940 z .