HomeMy WebLinkAboutOrdinances Book 10, Page 960, No Ordinance Number960
Ali ORDINA14CE AUTHORIZING W D PROVIDING FOR `['Illi
ISSUANCE OF OME HUNDRED AHD '.[TNENTY-SEVEN `l1iOU3AND
DOLLARS ($127,000.00) OF 1105PITAL REVEIRIE BONDS
OF TIIE CITY OF PADUCAH PURe3UANT TO KRS 216.080
to 216.240 FOR THE PURPOSE OF PAYING AMD RETIRING
AN OUTSTANDING I::SUE OF ONE HU MRED AND T.713"177 -SEVEN
THOUSA,!D DOLLARS (i;;127,000.00) OP SAID CITY' 3" THREE &
THREE-FOURTHS PERCENT (3 3/4;;) 11031ITAL REVE1Us: BONDS
AUTHORIZED 13Y A:I OI1DI:iA_C3 PA33131) AIID ADPROVED Oil
OCTOBEP. 22, 1940; PRESCRIBING Tl[E ;0114 OF SAID 00IIDS
AND OF TIIE COUPONS TliLitETO ATTAClIED; PROVIDING FOR
THE COLLECTIO11,3EGRIEGATIOM Ai?D DISTRIBUTION OF TIIE
REVENUE 0? SAID H031'ITAL; PROVIDING FOP, T[[ SAFEGUARD21 ,
PROTECTING AUD PAYING OF SAID BOIiDS; DIRECTING THE CIT
1.1ANAGER TO ADVERTISE AIiD HOLD A PUBLIC COMPETITIVE SALE
OF SAID FONDS; A17D PROVIDiiIG FOR T11E APPLICATIOU OPTHE
PROCEEDS OF SALE TO THE PURPOSE SET FORTH HEREIN
WHEREAS, the City of Paducah, in icCracken County,
I:entucky, a Kentucky municipality of the second class, has hereto-
fore by ordinance passed and approbed on July 13, 1939, established
and provided for the maintenance and operation of the Paducah
Municipal Hospital in said 'City; and
JHEREAS, by an ordinancepassed and anprobed on October
22, 1940,s aid City authorized and thereafter issued its 3-3/4%
City of Paducah 1!unicipal Hospital Revenue Eonds dated October 1,
1940, in the a2tregate principal sura of ',7150,000.00, for the
purpose of refunding outstanding bonds and constructing improve-
ments and additions to said hospital; and,
WHEREAS, it is the desire of said City to refund the
outstanding Q127,000.00 in principal amount of Siad 1940 bonds
by the issuance of a like amount of hospital revenue refunding
bonds, pursuant to Kentucky iievised Statutes 216,080 to 216,240;
and,
'WHEREAS, the issuance of such refunding bonds is ex-
pressly authorized by KRS 216.190: _
NOVI, THEREFORE, THE BOARD OF COi:4iSI3SIONER3 OF TIIE CITY
OF PADUCAH, KENTUCKY, DOES ORDAIN AS FOLLOI`•WS:
Section 1: That pursuant to Zrs 216.080 to 216.240,
said City shall pay and retire ;;127,000.00 outstanding of an
original issue of ,t';;150,000100 3-3/4.' "City of Paducah liunicipal
Hospital Revenue Bonds" dated October 1, 1940, and for the
purpose of providing funds for such payment there shall be and
there are hereby authorized to be i: -,sued, one hundred and twenty-
seven (127) bonds of the City of Paducah to be known as "City
of Paducah Municipal Hospital Revenue Refunding Bonds" in the
aggregate principal sum of One Hundred and Twenty-seven Thousand
Dollars (;'3127,000.00), to be dated as of the first day of April,
1944, to be numbered consecutively from one (1) to one hundred
and twenty-seven (127), inclusive, to be of the denomination of
I� One Thousand Dollars(,e'1,000.00) each, to bear interest at the
rate of three percent (3%) per annum, payable semi-annually on
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the first day of April and October in each year, commencing
October 1, 1944, evidenced by coupons attached to said bonds, and
subject to the right of prior redemption as hereinafter provided,
to mature in numerical sequence on October 1st.
$7,000.00 1944
9,000.00 1945
8,000.00 1946
9,000.00 1947
7,000.00 1948
92000.00 1949
8,000.00 1950
0,000.00 1951
7,000.00 1952
9,000.00 1953
8,000.00 1954 to 1958, inclusive
5,(-"00.00 1959.
The City of Taducah expressly reserved the right to
redeem on any interest payment date all or any of the bonds hereby
authorized, provided that unless all of the outstanding bonds are
to be redeemed, the bonds shall be called for redemption in their
inverse numerical order and that notice shall be -iven to the
holders thereof by publication, specifying the numbers of the
bonds to be redeemed, in a nevrspaper of Zeneral circulation in
Paducah, Kentucky, at least thirty (30) days prior to the rcdemp-
tign date specified in such notice, and provided further that on
the redemption date, the City of Paducaa shall nay to the hhlders
of the bonds so called the face amount thereof, to,ethor w—,th
accrued and unpaid interest to the redemption date, plus a premium
oil 34% of the face amount if redeemed prior to ripril 1, 1949,
?z? if redeemed on or after April 1, 1949, and prior to npril
1, 1954, and no premium if redeemed on or after April 11 1954.
Such publication shall be held and regarded as full and sufficient
notice, the holder or holders of any of the bonds issued,pursuant
to this ordinance shall be bound by this provision and after such
redemption -date all further interest shall cease on bonds included
in such notice and for which provision for payment has been made.
8ot� the principal of and interest on said bonds shall
be payable at the office of the Citizens Savings Bank in the City
of Paducah, Kentucky. Said bonds shall be sinned by the I:ayor
of said City and sealed with the 'corporate seal of said city,
attested by the City Clerk, and interest coupons attached to said
bonds shall be executed with the facsimile signatures of said
Mayor and said City Clerk. All of said bonds, togetlier with
interest thereon, shall be payable solely out of the "Paducah
Municipal Hospital 1fond and Interest Redemption lilund" hereinafter
referred to and out of the fixed amount of the gresa revenues of
said hospital pledged to said fund.
Section 2. That said bonds and coupons shall be in
substantially the followinti form, to-t,It:
(Form of Bond)
UNITED STATIeS OF AMZRICA
CO1i1:1O1i"1';AL`'w! 011" KLidTUCI,(
COUIi'Ff 0: IXCRACTMIT
CITE Oi PADUCAII IaUNMI PAL
H03'ITAL REVE TU Le RN UVDII?G
BOND
f rl, 000. UO
KN0�1 ALL ?J01 BY `ViIESF, Pj:,E3i.:."P3: That the City of
Pad :rah in the county of VcCraciten in the Commonwealth
of "Ientucky, ac:noc+ledges itself to owe and for value
received hereby promises to nay to the bearer, the suii
of One Thousand Dollars (:1,000.00) on the first day
of October, 19_, and to pay interest on said sum from
the date he_eof until paid or until this bond shall
be called for pa�micr_t at the rate of three percent
(311) per annum, payable semi-annually on the first
days of -April and October in each year, beginning
October 1, 1944, upon the presentation and surrender
of the annexed interest coupons as the Same severally*
mature, both principal and interest being payable at
the office of the Citizens Sabhgs Pank in the City of
Paducah, -Kentucky.
Said City hereby reserves the right, at its option,
to redeem this bond on any interest maturity date
upon thirty dayst published notice by the payment of
the face amount hereof and accrued interest, plus a
premium of 3,';v of the face amount if redeemed prior to
April 1, 1949, 2&1 if redeemed on or after April 1,
1949, and prior to April 1, 1954, and no premiwi if
redeemed on or after ^pril 1, 1954, after which redemp-
tion date all further interest on this bond shall cease.
This bond is issued by said City pursuant to an
Ordinance duly enacted, for the purpose of refunding
a prior bond issue under and in full compliance with
the provisions of KMS 216.080 to 216.240.
This bond is one of an issue of bonds numbered
consecutively from 1 to 127, aggregating the principal
sum of .,6127,000.00, which are payable only from and
secured by an exclusive pledge of a fixed amount of
the gross income and revenues to be derived from the
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operations of the Paducah i.!unicipal hospital, which
amount shall oe sufficient to pay the principal 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 th=
"Paducah•Iaunicipal Hospital fond and Interest Redemp-
tion Fund" and this bond does not constitute an
indebtedness of the City of Paducah :within the
meaning of any constitutional provisions or
limitations. The City of Paducah covenants that
it will fix such rates for hosnital services and
will colledt and account for the income and revenues
from such hospital as will Ice sufficient to nay
promptly the principal of and interest or. this bond
and the issue of which it forms a Part, as the same shall
become dne.
This bond shall be fully negotiable and is not
subject to taxation_ in the Cornmonwealth of Kentucky.
A statutory mort,-are lien, which is hereby rc-
coZnized as valid and binding on said hospital, to;ethHr
with the improvements and appurtenances heretofore or
hereafter added thereto, is creatce.. and -ranted to
and in favor of the holder or holders of this 'bond
and the issue of which it forms a.part and of any of
the coupons attached to said bonds, and said hospital
and all improvements and appurtenances thereof and
extensions hereto shall remain subject to such
statutovy mort^arrre lien until payment in full of the
principal of and -interest on this bond and the issue
of which it forms a part.
IT I3 HEREBY CERTIFIED, RECITED ACID DECLARED that
all acts, conditions and things required to exist,
happen, and be performed, precedent to and in the issuance
of this bond, do exist, have happened and have been
performed in due time, form and manner, as required by
law, and that the amount of this bond, together with all
other obligations of said.Cit,r, does not exceed any
limitation prescribed by the constitution or statutes
of the Commonwealth of Kentucky,* and that a sufficient
amount of the income and revenues of said hoonital
has been pledged to and will be sot aside into said
special fund by said City for the prompt payment of
the principal of and interest on this bond and the
issue of which it forms a part.
9Cn
III VITi;EaS tiJIIERLOF, the City o: i aducah has
caused this bond to be siCned by its duly authorized.
?.layer and its corporate seal to be hereto affixed,
attested by its duly authorized City Clerk, and the
coupon's hereto attached to be executed with the fac-
simile siCnatures of said Nayor and said City C1e5k,
,which officers, by the execution of this bond, do
adopt as and for their own proper signatures, their
respective facsimile signatures appearing on said
coupons, all as of the first day of April, 14fl4.
Cil of Paduc; it, Kentucky
(SEAL)
ATTEST:
CITr CLERK
City of laducah, Kentucky
(Form of Coupon)
Bond ISo. Coupon No.
1-15.00
On the first day of , 39 , the City
of Paducah, Kentucky, will pay to the 'bearer, out of
its "Iaducah I-:unicipal hospital Dond and Interest
Redemption I•und" the sum of ;15.00 at the office of
the Citizens Savin.gs Bank, Paducah, Kentucky, being
sir, months interest then due on its municipal hosiiital
revenue refundinC bond dated ypril 1, 1944.
Cit,;//of Padacait, Kentucky
City r, erk,
City of Paducah, Kentucky
Section 3. That from and after the delivery of any
bonds issued under the provisions of this ordinance said ;.uri-
cipal Hospital shall be operated on a fiscal year basis, the
first fiscal period boCinning April 1, 1944, and ondinC 3epteraber
30, 1944, and thereafter on an annual basis commencing October
lnt of each year and ending Santcmber 30th of the succeeding
year, and on that basis the income and revenues of said r.,uni-
cipal Hospital of the City of Paducah shall be set aside into
a separate and special fund to be used for the retirement of the
aforesaid bonds in providinC a depreciation fund for said hospital(,
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and in maintaining and operating said hospital as follows. to -wit:
That there shall be and there is herebj recognized and
continued in force an account heretofore created with the Citizens
Savings Bank and known as the "Paducah Municipal IIospital Lend
and Interest Redemption Fund" into which, in .addition to the fujds
now on deposit in said account, which shall aggregate not less
than the sum of x17,243.77 as of -pril 1, 1944, there shall be
set aside from the gross Weems and revenues of said Municipal
hospital such amount thereof as will be sufficient to pay the in-
terest on and the principal of the bonds hereby authorized, and
to accumulate a contingency fund as a safeguard against any
possible default Cro:•:ing out of the continLenc'_:s unforseen and
beyond the control of the City of Paducah. The additional
amounts necessary to be set aside into said fund are hereby
determined, as follows:
Fiscal year ending Principal Interest To be set ?Balance
September 30th. Maturing Maturing aside into at end
of year
1944 (17,000 Q1,905 ,4, 657.4II i12, 973.25
1945 9,000 3,600 11,200.00' 11,570.25
1946 8,000 3,330 11,937.50 12,183.75
1947 9,000 3,090 10J37.50 10,731.25
1948 7,000 2,020 11,375.00 12,206.25
1949 9,000 2,610 .10,075.00 10,751.25
1950 8,000 2,340 10,812.50 11,223.?5
1951 9,000 2,100 9,512.50 9,636.25
1952 7,000 1,830 10,250.00 11,056.25
1953 9,000 1,620 8,950.00 9,386.25
1954 8,000 1,350 9,687.50 9,723.75
1955 8,000 1,110 8,387.50 9,001.25'
1956 8,000 870 9,125.00 9,256.25
1957 8,000 630 7,825.00 8,451.25
1958 8,000 390 5,OOS.75 5,150.00
1959 5,000 150 - 1
The amount of which any such payment in any fiscal year
exceeds the aggregate 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 contingencies, and used solely
as herein provided.
Provided, however, that no further payments need be
made into said Redemption 14nd when the amount held therein is
equal to the entire amount of interest and prmncipal that will
be payable at the time of the call or maturity of all of the
bonds then remaining oltstand,inr,.
If in any fiscal year the City shall for any reason
fail to pay into said Redemption Fund the amounts above stipu-
lated, then an amount equivalent to such deficiency shall be set
apart and paid into said rund out of the first available gross
revenues of the following year or years, and the same shall
be in addition to the amounts otherwise herein provided to be so
966
set apart and paid during such succeeding year or years.
1111 moneys held in said fund shall be deposited in
40 Citizens ravings Bank, Paducah, Kentucky, and all such deposits
shall be continuously secured by insurance from the nederal D.posi
Insurance Corporation, or by a valid pledge of direct obli-rations
of the United States of America havin,- an equivalent market value
or shall be invested in direct obli;•ations•of the United States
::overnniont, provided, however, that the board of Commissioners
of the City of Paducah, or the L`.unicipal hospital Commission,
hereafter referred to, shall make sale of a suL'ficient amount of
such obli1,iations to meet interest and principal payments becoming
due in such year.
Such payments into said i,und, as nearl as practicable,
shall be made in equal monthly installments, on the 1st day of
each month, and in the event the income and revenues during any
one month are inadequate to.make the required payment into said
Pun(':, the deficiency shall be made up and paid as aforesaid from
the first income and revenues thereafter received, and same shall
be in addition to the payments otherwise provided to be made in
such succeeding month or months. The "Paducah i.iunieipal Hospital
Pond and Interest Redemption 1,und", as aforesaid, shall be used
solely and wholly for and is hereby e;xlusivZjly pledged to the
purpose of paying, the principal of and interest on the bonds
herein authorized to be 1.;sued.
In the event the City of Paducah shall fail or neglect
or refuse, for any reason, to make the payments into the "'Paducah
municipal Hospital Bond and Interest Redemption Fund" in the
amounts,at the times and in the manner above set forth, then the
holders of 25,E of the aggregate principal amount of the bonds
then outstanding may elect to declare the entire outstanding
indebtedness immediately due and payable and may proced to the
enforcement of the security rights created and provided for the
Protection of the bondholders by this ordinance and by the pro-
visions Of IMS 216.080 to 216.240.
Three (50) percent of the balance of the income and
revenues romaininZ after the aforesaid payments into the Redemp-
tion Fund shall be set aside to a fund to be known as the
"Faducah Municipal llos;ital Depreciation Fund", and shall be de- '
posited in a separate account in said Citizens Savin,s Bank and
shall be expended in making good any depreciation of said
hospital and the making of any extensions, additions.or replace-
ments to the property, the Loard of Commissioners of Paducah
967
hereby finding and determining that such proportion of the. balance
of the income and revenues is sufficient for said purpose. Any
accumulations of such "Paducah Municipal Hospital I.opreciation
Fund" may be invested in direct obligations of the United States
Government, Clarrants of the Commonwealth of Kentucky, Kentucky
Bridge Revenue Bonds, or Paducah Municipal Hospital Revenue
Refunding Bonds, as the "Eunicipal Hospital Commission", herein
after created, may designate, and if invested, the income from
the investments shall be carried in the "Paducah 14unicipal
Hospital Depreciation Fund", and said fund shall not be used for
any purpose other than as herein provided.
Ninety -Seven (97;") percent of the balance of the income
and revenues remainin^ after the payments into the Bond and Intere t
Redemption Fund shall be set aside and used for the reasonable
and proper operation and maintenance of said L:unicipal Hospital,
the j%oard of Commissioners of the City of Paducah hereby finding
and determininu that such proportion of such balance is necessary
for such operation and maintenance of said hospital, but not in
excess of the amount required for said purpose.
Section 4. That while the bonds authorized hereunder,
or any of therp, remain outstanding and unpaid, the rates for all
services rendered by said hospital to said City and to its
citizens or others shall be reasonable and just, takini into
account and consideration the cost and value of said hospital,
and the cost of maintaining and operating the same, and the proper
and necessary allowances for depreciation thereof, and the amounts
necessary for the retirement of all bonds and the accruing interes
on such bonds as may be sold and are unpaid under the provisions
of this ordinance, and there shall be chav8ed against all users
of said hospital, including said City, such rates and amounts for
hospital services as shall be adequate to meet the requirements of
this and the preceding sections hereof. Any hosbital services
rendered to the City shall in like manner be charged against the
City, and payment for same shall be made from the corporate funds
monthly into the special fund created by this ordinance as other
income and revenues of said hospital, and shall be apportioned
to operation and maintenance, depreciation, and bond and interest
redemption funds as other income and revenues.
Insofar as is consitent with the laws of Kentucky,
said City agrees that so long as any of the bonds hereby authorize
remain outstanding it will cause proper books of record and
account to be kept, separate and apart, from all other municipal
records and accounts, showing complete and clear entries of all
968
transactions relating to said hospital, and the holder of any of
said bonds shall have the right, at all reasonable times, to
inspect the system and all records, accuunts, and data of the
City relating thereto.
Section 5. That said City herety covenants and agrees
with the holder or holders of the bonds herein authorized to be
issued, or any of them, that it will faithfully and punctually
perform all duties with reference to said hospital, required by
the constitution and laws of the Common -wealth of Kentucky, in-
cluding the making and collecting of reasonable and sufficient
charges for hospital services rendered by said hospital, and
will segregate hhe revenues of said hospital and make application
thereof into the respective funds created by t'nis ordinance; and
the City hereby irrevocably covenants, binds, and obligates itself
not to sell, lease, mortgage or in any manner dispose of said
hospital, includin-, any and all extensions and additions that
may be made thereto, except the martSage as provided in .lection 6
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 agrees with the holders of said bonds
to maintain in good condition and continuously operate said
hospital, and to charge and colledt such rates and charges for
hospital service renderdd thereby, so that the -oras revenues will
be sufficient at all times to provide for the payment of the
operation and maintenance thereof and maintain the depreciation
fund and the bond and interest redemption fund as provided herein.
Section 6. That for the further protection of the
holders of the bonds herein authorized to be issued and the
coupons thereto attached, a statutory mortgage lien upon said
hospital and all properties connected therewith and appurtenances
thereto is granted and created by KRS 216.1:0, which said statu-
tory lien is hereby recognized 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 law, and
shall take effedt 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 proceed-
inEs, protect and enforce the statutory mortgage lieh hereby con-
ferred, and may by suit, action, mandamus, or other proceedings,
enforce and compel performance of all the duties required by
said statute, including the making and collecting of sufficient
rates and the segregation of the income and revenues and the
application thereof.
069
If there be any default in the payment of the principal
of or interest on any of said bonds, then upon the filin3 of a
suit by any holder of said bonds, or of any of the coiupons, any
court having jurisdiction of the action may appoint a receiver
to administer said hospital on behalf of the City, with power
to charge and collect rates sufficient to provide for the payment
of any bonds or obligations outstandirn against said hospital, an
for the payment of the operating expenses, and to apply the
income and revenues in confirmity wittz this ordinance and the
provisions of KRS 216.080 to 216.240.
Section 7. That the bonds authorized to be issued
hereunder and from time to time outstanding shall not be entitled
to priority one over the other in the application of the revenues
of said hospital, or with respect to the statutory mortgage lien
securing their payment, regardless of the time ov time3 of their
issuance, it being the intention of the -board of Coimnissioners
that there shall be no priority among the bonds authorized to be
issued under the provisions of this ordinance, regardless of the
fact that they may be actually issued and delivered at different
times, and provided further that the lien and security of and for
any bonds or obliations hereafter issued that are payable from
the income and revenues of said hospital shall be subject to the
priority of the bonds hereby authorized as may from time to time
be outstanding.
Section 8. That for the further protection of the
holders of the bonds herein authorized to be issued, and for the
Protection of the city's interest in said I:':unicipal hospital, the
City hereby covenants with the holders of said bonds and of the
coupons thereto attached that so long as any of the indebtedness
represented by said bonds or coupons remains outstanding and un-
paid, the City of Paducah will procure and maintain Insurance
upon the properties enbraced in the statutory martgage lien above
referred to, by which such properties will be continuously in-
sured in good and solvent insurance companies against loss or
damage by fire, windstorm and other natural hazards, such insur-
ance to be in an amount at all times at least equal to the then
unpaid balance of the indebtedness represented by the bonds and
coupons herein authorized. The policy or policies of such in-
surance shall be written in the name of the City of Paducah
and/or the "Paducah IBunicipal Hospital Commission" (hereinafter
referred to) as the -Ir interest may a;pear; and each of such
policies shall bear an endorsement by which the insurance company
970
issuing the same accepts notice of the existence of the statutory
mortgage lien existing in favor of the bondholders with respect
to the insured property; but such endorsements shall expressly
provide that any loss of damage occurrin;; thereunder shall be
adjusted with and payable solely to the City of aducah and/or
the "Paducah Vun icipal Iospital Commission" and tho respective
insurance companies shall be under no obligation to consult with,
adjust with or pay to the said bondholders or any of them, and
shall be under no oblL7ation to I,ok to the proper application
of the proceeds of any payment or settlement properly made to the
City of Paducah and/or the "Paducah I::unicipal Iospital Cam:;ission",
Section 9. In the event of any lo:3s or damage to
the Paducah runicipal Hospital within the terms of any such
policy or policies of insurance above referred to, the City cove-
namts and agrees with the holders of tho bonds and coupons herein
authorized that the proceeds of such insurance shall be devoted
exclusively ti the replacement or' reconstruction of the property
so damaged or destroyed so that the same shall be restored to a
condition at least as good as existed pa,ior to such loss or damage;
and in the event the proceeds of such insurance should -e 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-
v&de a sufficient additional sum to complete and pay for the same;
provided, however, that if the proceeds of such insurance shall
be sufficient to enable the City of Paducah to call in and pay
all the bonds then outstanding, to -;ether with accrued interest
to the date of call, in the manner provided by this ordinance,
then the City of (aducah may, at its election and option, use
such funds to call in, pay, cancel and retire all of the outstandin
bonds in lieu of replacin_;, reconstructing or restoring such loss
or damage.
Section 10. By the terms and provisions of Section 9
of the ordinance passed and approved on July 13, 1938, above re-
ferred to, there was created and established in accordance with
the requirements and provisions of KRS 216.240, a commission to
be knov.,n as the "Paducah &tunicipal Hospital Commission", Said
commission and the terms and provisions of said ordinance relat-
ing thereto are hereby expressly continued in full force and
effect and this ordinance shall not be construed to repeal or
supersede any of the provisions of Jection 9 of said ordinance
of July 13, 1930.
971
Section 11. That the bonds heroin authorized to Le is
shall be offered for sale at a public competitive sale to be held
on Saturday, Lfarch 25, 1944, at the hour of 10;00 A.!'., in the
office of the City Manager in and of the City of Paducah. Said
City Manager is hereby designated and appointed as a committee of
one to advertise and conduct said sale and to accept for and on
behalf of the City of Paducah such bid as may conform to the terms
and conditions hereafter set forth and as may appear to said City
I,Ianager to be the best bid received for said bonds.
The City L:anager of the City of Paducah is hereby directed
to prepare and cause to be published in a now.9paper of �e:,oral cir
culation in the City of Paducah, Kentucky, at least one week prior
to the date above fixod for said sale, a notice in words and figur
substantially as follows:
"::OTIC); OP LO::D GALE
"The Board of Commissioners of the City of=aducah,
McCracken County, Kentucky, hereby gives notico that on
Saturday, i"arch 25, 1044, at 10:(,0 h.!:., In the offiee of
the City I..anager in and of the City of 2aducah, sealed com-
petitive bids will be redeived for ,127,000.00 principal
amount of ?City of "aduca.h !:unicipal llospital Revenue Bonds?,
being one hundred and txenty-seven (lP7) bon..'.s of the denomin-
ation of ,1,000.00 each, nw:ii;�red consecutively from ortc (1)
to one hundred and tironty-seven (127) inclusive, dated April
1, 1944, and maturinZ. serially on October lot-. .;7,000.00 in
the year 1944, :;9,000.00 in the year 1945, .;;£3,000.00 in the
year 1946, `;9,000.00 in the year 1947, 7,000.00 in the year
1948, ,•9,000.00 in the year 1949, .;8,000.00 in the year 1950,
:;9,000 in the year 1951, ;:7,000.00 _n the year 19,92, .,:9,000.00
in the year 1953, :;;0,000.00 in each of the years 1954 to
1958, inclusive. and ;r5y:000.00 in the year 1959, . l.tlr coupons
attached for the semi-annual nayment of intcrost at the rate
of three (3;;) percent per annum. The bonds will be callable
in their inverse numerical order at par and accrued interest,
plus a premium of 3 1/2;,' .-of the face amount if redcened prior
to April 1st, 1949, 2 1�2p; if redeened on or after April 1,
1949, and prior to April 1, 1954, and no preniun if redeemed of
or after April 1, 1954. Said bonds are to be sold subject to t
principal of and the interest on said bonds not ;,ein-- subject
to Federal or Y,entue'_ty ad valorem or income taxation on the
date of their delivery to the successful purchaser. ?gull de-
tails concernin.- the bonds and cor.cernin.- the terms and con-
ditions of the sale can be obtainod by addressing the City
Manager of the City of Paducah. aids not con_orminL to the
terms and cinditions of the sale will not be considered,
"By order of the Board of Commissioners.
City Mana,er of the
City of Paducah, Kentucky."
The sale of said bones shall be held pursuant to the
followinl; terms and conditions, to�:ether with any other terms and
conditions not inconsistent herewith, as may be prescribed in
writin-1 by the said Cit y Yanager:
1. All bids shall be for all of the bonds.-idders
Will of for a dollar price and :rill not :,id on an
interest cost iasis or in any other manner r::iich
re miires computation to detormine which is the
hi hest and best bid. In addition to the dollar
price specified by the bidders, the purchaser
;will be oblitred to pay accrued interest on the
bonds from April 1, 1944, to the actual date of
delivery and payrrrent.
2 -ids shall be for bonds bearing a coupon rate
of 3; and no bid for bonds of any other coupon rate
shall be considered or deemed to be in compliance
with the terms and conditions of the sale.
S. It is anticipated that the bonds will be ready for
delivery within ten days atter the date of the sale
Lut delivery is not 1,uarantded until April 1, 1944.
4. Bidders will have no expenso in connection -with
the bonds. The approving legal opinion of :;t.iten E:
Stites, attorneys of Louisville, Kentucky, will be
furnished by the -City and ;rill accompany the bonds
schen delivered without e.cpense to the purchaser.
5. Pads shall be accompanied by a cortiflod or
bank c:ieck payable to the order of the City of Paducah
in the sum of 2,000.00. The check of the succeas-
ful bic;der will to cashed and held as a Guarantee of
performance and the amount thereof will be credited
upon the purchase price V!heti payment is made. All
other chec';s will immne-iiately be rot:u�ned.
6. The Cit;; of Paducah esnressly reserve the richt
to beject any and all biQs eschar for inadequacy of
price or for failure to comply .ath the terris and con-
ditions of tho sale or for any ot:ier reason deemed
sufficient to the Cit;,-ana;-er who has been appointed
and desi;-nated to conluct said sale by the —Board of
Commissioners.
The City t.:anager shall prepare a statement giving a
brief description of the binds and settin;C forth the terms and
conditions of the sale and shall furnish s -:ch statement to any
interested bidders who may request the same.
Section 12. That after the sealed competitive bids are
received, the City "anager 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 hi3hest and best
bid provided the same confo-rria to the tents and conditions of
the sale and appears to the City Ilana�;er to be advantageous to
the City of Paducah. In the evert the City I.:anager accepts any
such bid, he shall promptly notify the maker of such bid in
writinZ and such acceptance shall be binding upon title City of
Paducah.
Section 15. That the City Iuanager is authorized to
pay to I.Iessbs • Stein bros &; Coyce, Almstedt Bros and 'the Bankers
Bond Company the amount of compensation due to them undeb their
contract with the City of Paducah and if the aforesaid firms are
the purchasers of the bonds, the amount of said compensation may
be credited upon the purchase Price when payment is made. After
making the above mentioned payment to said firms, the City
Manager ajiall deposit the .remainder of the new proceeds of sale
with Citizens Savings Bank in the aforesaid bond redemption a coot
All slims received at the time of delivery of the bonds
alithorizod by this ordinance which represent accrued interest on
t: -,e bonds authorized o,y this ordinance, shall be deposited in the
"Paducah Iciunicipal Hospital Bond and Interest Rederiation Fund".
973
Section 14. That the provisions of this ordinance
shall constitute a contract between the City of Paducah and the
holders of the bonds herein authorized to be issued, and after
the issuance of any of the bonds no change, variation, or altera-
tion of any kind of the provisions of this ordinance shall be
made in any manner, except as heroin provided, until such time
as all of said bonds issued hereunder and the interest thereon
shall have been paid in full.
Section 15. That if any section, paragraph, clause
or provision of this ordinance shall be held invalid, the
invalidity of such section, paragraph, clause or ;:rovision shall
not affect any of the remaining provision: of this ordinance.
Section 16.
That all ordinances, resolutions and orders, or parts
thereof, in cinflict with the provisions of this ordinance are
to the extent of such conflict hereby repealed.
Introduced an given first reading on march 7, 1944.
Given second reading and finally passed and approved
on 1.1arch 14th, 1944, to become effective ben days thereafter as
provided by law.
(SEAL)
ATTEST:
CITi CL3iK
City of Paducah, Kentucky
G ,__—
,ti On �
rJ.t of Paducah, Kentucky