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HomeMy WebLinkAboutOrdinances Book 13, Page 861, No Ordinance Number$61 ✓' ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, PROVIDING FOR THE ISSUANCE AND SALE OF SPECIAL OBLIGATION BONDS (SCHOOL BUILDING REVENUE BONDS) IN ACCORDANCE WITH SECTIONS 162.120 THROUGH 162.290 OF THE KENTUCKY REVISED STATUTES, TO PROVIDE FUNDS FOR SCHOOL BUILDING PURPOSES, PROVIDING AND DETERMINING THE DUTY OF SAID CITY IN CONNECTION WITH THE OPERATION OF THE SCHOOL BUILDING PROPERTY AND THE CREATION OF FUNDS SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SAID REVENUE BONDS AS AND WHEN THEY MATURE AND THFii CREATION OF AN ADEQUATE MAINTENANCE AND INSURANCE FUND, AND AUTHORIZING THE ACCEPTANCE OF A DEED FROM THE BOARD OF EDUCATION OF THE PADUCAH INDEPENDENT SCHOOL DISTRICT AND THE EXECUTION OF A LEASE OF SUCH FOREGOING PROPERTY TO SAID BOARD OF EDUCATION IN THE FORM OF A CONTRACT, LEASE AND OPTION. WHEREAS, it is advantageous and to the best interest of all con- cerned that the City of Paducah, Kentucky, construct a new Southside Elementary School Building upon the school property which has been con- veyed to it by the Board of Education of the Paducah Independent School District, said property being hereinafter more particularly described, and that said property be used and occupied for school purposes by said Board pursuant to a Contract, Lease and Option as hereinafter provided, and WHEREAS, the City, acting by and through its Board of Commissioners, desires to provide funds as hereinafter set out to construct said new elementary school building on said land, and the plans and specifications have heretofore been prepared and filed in the office of the City Clerk and have been approved by said Board of Education and the State Superinten- dant of _.,Public Instruction, and contracts for said new building have been duly awarded, secured by 100% performance bond executed by responsible, approved surety, and WHEREAS, the said Board has agreed to use and occupy the school building so to be constructed, pursuant to the terms of the Contract, Lease and Option hereinafter provided, which instrument has been examined and is now found and declared to be in conformity with statutory require- ments, including KRS 162.140, and in order to pay the cost of constructing said new school building, it is necessary that the City authorize, issue and sell $160,000 of City of Paducah School Building Revenue Bonds dated ,April 1, 1958 (which is the amount of bonds which has been approved by the Kentucky'Department of Education), to be supplemented by the transfer by the Board of the sum of $33,267.80 (or more if needed) to provide the total cost of said building, all pursuant to and as permitted by Sections 162.120 through 162.290 of the Kentucky Revised Statutes. 862 NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, DOES ORDAIN AS FOLLOWS; 1. The Deed conveying said school property to the City, which has been executed and tendered by the Board of Education of the Paducah Independent School District of McCracken County, Kentucky, hereinafter referred to as the Board, is hereby accepted, and the Contract, Lease and Option also tendered to the City by said Board, having been examined, con- sidered and approved by this Board of Commissioners, the execution of both of which instruments was approved by said Board at a meeting held on March 7, 1958, the ,Mayor and the City Clerk are authorized and empowered to execute the same on behalf of the City of Paducah, hereinafter referred to as the City, and said instruments and the aforementioned resolution of the Board authorizing same are hereby approved and made a part hereof. 2. That for the purpose recited in the preamble hereto, there shall be and there are hereby authorized and ordered to be issued and sold the negotiable School Building Revenue Bonds of said city in the aggregate principal amount of $160,000, to be dated April 1, 1958, numbered 1 to 160, inclusive, and to consist of one hundred and sixty (160)bonds of the denomination of $1,000.00 each. Said ;160,000 of bonds shall bear interest payable semi-annually, at a coupon rate or rates, not exceeding the legal maximum of six per cent (6%) per annum, the exact rate or rates to be fixed by supplemental resolution of this Board of Commissioners as a result of the advertised sale of said bonds, and said bonds shall mature serially and in numerical order on April first of the respective years as set out �he numbering of said $160,000 of bonds and the maturities and principal and interest requirements of said bonds, based on a tentatively anticipated interest rate of four per cent (4%) per annum, are as follows• Interest Require- ments (Tentative Rate, 4% 6,400 5,880 863 Said bonds shall bear interest from April 1, 1958, payable semi- annually on the first days of April and October of each year, both princi- pal and interest being payable at the Citizens Bank & Trust Company, Paducah, Kentucky; bonds numbered 73 to 160, inclusive, being subject to prior re- demption, only in inverse order of maturities (less than all of a single maturity to be selected by lot), in whole or in part, at the Cityts option, on any interest due date falling on or after October 1, 1963, upon notice of such prior redemption being given by publication at least thirty days prior to the date stated for redemption in a newspaper of general circulation in Kentucky, and upon payment of face amount plus accrued interest plus additional interest equal to 3% of face amount if the stated date for prior redemption is prior to final maturity. All of such bonds as to which the City reserves and exercised the right of prior redemption and as to which notice as aforesaid shall have been given and for the retirement of which, on the terms aforesaid, funds are duly provided, will cease to bear interest on the redemption date. 3. Said bonds shall be executed on behalf of the City by being signed by the Mayor of the City, sealed with the corporate seal of said City, attested by the City Clerk, and the interest coupons attached to said bonds shall be executed with the facsimile signatures of said Mayor and City Clerk, and said bonds, together with the interest thereon, shall be payable only out of the "City of Paducah School Building Bond and Interest Redemption Fund of 1958," hereinafter created, and shall be a valid claim of the holders thereof solely against said fund and against the income and revenues of the school property herein referred to, includ- ing the appurtenances thereon. 1 4. The aforesaid authorized issue of bonds in the amount of $$160,000 and coupons shall be in substantially the following form: UNITED STATES OF AMERICA COMMONWEALTH OF KENTUCKY COUNTY OF MCCRACKEN CITY OF PADUCAH SCHOOL BUILDING REVENUE BOND NO. $1,000.00 The CITY OF PADUCAH, Kentucky, fob value received, hereby pro- mises to pay to the bearer the sum of ONE THOUSAND DOLLARS ($$1,000.00) On the first day of April, 19 , and to pay interest thereon at the rate of/ per annum from April 1 1958, payable semi-annually on April first an October first of each year, upon presentation and surrender of the annexed intOrest coupons as the same severally mature, at the Citizens Bank & Trust Company, Paducah, Kentucky. Bonds numbered 73 to 160, inclusive, of the series of which this bond is one are subject to prior redemption, only in inverse order of 864 maturities (less than all of a single maturity to be selected by lot), in whole or in part, at the City's option, on any interest due date falling on or after October 1, 1963, upon notice of such prior redemption being given by publication at least once at least thirty days prior to the date stated for redemption in a newspaper of general circulation in Kentucky, and upon payment of face amount plus accrued interest plus additional interest equal to 30 of face amount if the stated date for prior redemption is prior to final maturity. All of such bonds as to which the City reserves and exercises the right of prior redemption and as to which notice as aforesaid shall have been given and for the retirement of which, on the terms aforesaid, funds are duly provided, will cease to bear interest on the redemption date. This bond is part of an authorized issue of 4'0160,000 of bonds, authorized to be issued by said City pursuant to an ordinance or ordinances of the Board of Commissioners of said City to provide funds for the con- struction of a new school building and appurtenances pursuant to and in full compliance with the Constitution and Statutes of Kentucky, including Sections 162.120 through 162.290 0£ the Kentucky Revised Statutes. This bond is payable solely from and secured by a pledge of a fixed amount of the gross income and revenues to be derived from the leasing of said school building property, which have been set aside as a special fund and pledged for that purpose and identified as the "City of Paducah School Building Bond and Interest Redemption Fund of 195811, and this bond does not constitute an inddebtddness of the City of Paducah, Kentucky, within the meaning of any constitutional provision or limitation. The City of Paducah, Kentucky, covenants that it will fix and maintain rentals and charges for the use of said property, including all improvements thereon, adequate to maintain said City of Paducah School Building Bond and Interest R-demption Fund of 1958, and sufficient to maintain a fund adequate to pay the cost of maintenance and the insurance on the property. A statutory mortgage lien which is hereby recognized as valid and binding on said school building property is hereby created and granted in favor of the holder or holders of this bond and the issue of which it forms a part and in favor of the holder or holders of coupons attached to said bonds, and said school building property and any Appurtenances thereto shall remain subject to said statutory mortgage lien until the pay- ment in full of the principal and interest on this bond and the issue of which it forms a part; provided, however, that said statutory mortgage lien is and shall be restricted in its application to the school building and appurtenances thereto financed by this bond and the issue of which it forms a part, 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 expressly reserved to erect or construct upon the school site described in the ordinance authorizing the issuance of said issue of bonds, other independently financed school building projects free and clear of said statutory mortgage lien, which other independently financed school building projects may or may not have a party wall with and adjoin the school building and appurtenances which are subject to said statutory mortgage lien, provided no part of the cost of said other independently financed school building projects is paid from the proceeds of the sale of this bond and th4 series of which it forms a part; and provided the necessary easements for ingress, egress, sewage lines, septic tank lines or other utility lines shall be deemed to exist and con- tinue to exist for all school buildings, improvements and additions financed by this or other bonds. by delivery. This bond and the coupon or coupons attached hereto shall pas: This bond is exempted from taxation in Kentucky. It is hereby certified, recited and declared that all acts, cc tions 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 per- formed in due time, form and manner as required by law, and the amount of this bond, together with all other obligations of said City, does not exceee any limit prescribed by the Constitution or the Statutes of Kentucky, and the City, so long as this bond and the issue of which it forms a part remair outstanding, shall perform all duties imposed upon it by the Constitution and the Statutes of Kentucky, including the taking of all legal steps necesE to produce annually a fund sufficient to pay the rental charges which are payable by the Board of Education of the Padudah Independent School District for the use of such school building property, and that such rental charges have been pledged to and will be set aside into a special account into the treasury of said City in am amount sufficient to pay the principal and 565 interest on this bond and the issue of which it is a part as and when the same become due. IN WITNESS WHEREOF, the City of Paducah, in the Commonwealth of Kentucky, has cuased this bond to be signed by its Mayor and its corporate seal to be hereunto affixed, attested by the City Clerk and has caused the coupons attached hereto to be executed with the facsimile signatures of the Mayor and the City Clerk, which officials, by the execution of this bond, do adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons, all at of the date of this bond, which is April 1, 1958. ATTEST: City C er Bond No. CITY OF PADUCAH, KENTUCKY By mayor (FORM OF COUPON) COUPON No. Unless the bond to which this coupon is attached is redeemable and accordingly shall have been theretofore called for prior redemption, On the day of 19 the City of Paducah, Kentucky, wi=pay to t e earer ($ ) out of the "City ol rauuuahc oo Bui ing Bond and Interest e emption Fund of 1955" at the Citizens Bank & Trust Company, Paducah, Kentucky, being six months4 interest on its School Building Revenue Bond, in the amount of ;$1,000.00, dated April 1, 1955, numbered ATTEST: City er CITY OF PADUCAH, KENTUCKY By Mayor 5. From amd after the completion of construction of the school building on or about November 1, 1955, the new school building property, sometimes hereinafter referred to as the "property," the "school property," orthe "school building property," shall be leased, rented and occupied as a revenue producing undertaking on a fiscal year basis, commencing on April first of each year and ending on April first of the following year, except that the first fiscal period shall be from November 1, 1955, to April 1, 1959, and on that basis the income and revenues of said property, including specifically the income and revenues from the Contract, Lease and Option with the board, shall be set apart into a separate and special fund to be used for the retirement of the aforesaid bonds and for maintaining said property. There shall be and there is hereby created an account to be known as the "City of Paducah School Building Bond and Interest Redemption Fund of 195511, (hereinafter called the Bond Fund), to be deposited with the payee bank of said bonds, into which there shall first be set aside from the proceeds of the sale of the bonds the amount received from the III purchaser representing accrued interest, plus an additional amount suffi- cient (when added to said collected accrued interest) to provide for all interest which will accrue and become due (on October 1, 1958) during the period required to complete the construction of the school building, and there shall also be set aside into said Fund from the gross income and revenues of the school building property not less than the amounts set out in the table in Section 2 of this ordinance if said 4160,000 of bonds are sold to bear interest at the rate of four per cent (VA) per annum, in ample time to pay the interest and principal as they fall due, which amounts are hereby exclusively pledged to and shall be used only for the purpose of pay- ing the interest on and principal of said bonds as and when they mature. In the event said bonds are sold to bear an interest rate or rates other than at the tentatively anticipated rate of 4% per annum, said figures shall be automatically adjusted accordingly to such sums as will accomplish the purposes set forth in this section. In any event, there shall be set aside into said Fund and there is pledged such amounts as may from year to year be necessary to meet the principal and interest requirements of the outstanding City of Paducah School, Building Revenue Bonds dated April 1, 1958. j The balance of the income and revenues remaining after the afore- said payments into the Bond Fund have been made, shall be set aside into a maintenance fund and used for the maintenance of said school property and to pay the cost of insuring said property against loss or damage by fire, windstorm or other calamity in an amount substantially equal to either at least the amount of the bonds at any time outstanding, or the maximum in- surable value of the school building located thereon, whichever is lesser. Such insurance shall be for the use and benefit of the holder or holders of any bond or bonds. If, in any year, the City shall, for any reason, fail to pay into said Bond Fund the full amount above stipulated, then an amount equiva- lent 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 pro- perty 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 Citizens Bank & Trust Company, Paducah, Kentucky, and to the extent that the same shall cause deposits of the City in said bank to exceed the amount insured by the Federal Deposit Insurance Corporation, the same shall be continuously secured by a valid pledge of bonds of the issue herein authorized or bonds or notes of the United States Government, having an equivalent market value, or shall be invested in either of such types of 867 securities having a maturity date prior to the date when the sums invested will be needed for meeting interest and/or principal payments, or shall be secured by a surety bond with good corporate security furnished by an approved surety company qualified to do business in Kentucky. The annual payments so required shall be made in equal semi- annual installments on or before a date two weeks before the maturities of the respective interest coupons. Said Bond Fund as next hereinbefore pro- vided shall be used solely and only and is hereby pledged for the purpose of paying interest on and principal of the bonds herein authorized and per- mitted to be issued as the same become due. It is further agreed that in case the building on said premises is totally destroyed by fire, windstorm or other hazard covered by insurance, the City shall have the right to expend the proceeds of such insurance to restore the property; that if such proceeds are not expended by the City for restoration of said property at the earliest practical date, then all of such insurance proceeds shall be used for the purpose of redeeming said outstanding bonds, and said property shall then be and become the property of the Board, in which case the City shall convey said property to the Board free and clear of all encumbrances. In the event of partial destruc- tion by fire, windstorm or other hazard covered by insurance, it is agreed between the parties that the proceeds of such insurance shall be used solely and only for the purpose of making the necessary replacements and I, repairs to the building and appurtenances located thereon, provided further that if, following such partial or complete descruction, any principal or interest payments are due and there are no other funds available for said payments, such insurance proceeds must be first applied to the defaulted payments. 6. The City hereby covenants and agrees with the holder or hol ders of the bonds herein authorized that it will faithfullyand punctually perform all duties with reference to the school building property which are required -by the Constitution and laws of Kentucky, including the taking of all legal steps necessary to produce annually a fund sufficient to pay the rental charges which are payable by the Board of Education of the Paducah Independent School District, and the making and collection of reasonable and sufficient rentals for said property and will segregate the revenues of said property and make application of the respective funds created by this ordinance. The City further irrevocably covenants, binds and obligates itself to perform all duties imposed upon it by the Constitution and Statutes of Kentucky in relation to maintaining said school building property. It is •the declared intention of the City to continue to lease said school build- 868 ing property to said Board of Education (or its successor) for an extended period of years, as provided in the resolution adopted by said Board on the 7th day of March, 1958, and as provided in the Contract, Lease and Option approved in Section 1, hereof. The City further covenants and agrees with the holders of said bonds to maintain said school building property (or to cause it to be maintained) in good condition, and to charge and collect said rents for use of said property 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 herein authorized, as and when they mature, and to pay the maintenance cost thereof, including the cost of insurance, as hereinbefore provided. The City further binds and obligates itself not to sell, mortgage or in any manner dispose of said property except as specifically permitted and provided by this ordinance, until all of the bonds herein authorized shall have been paid in full, both as to princi- pal and interest. 7. For the further protection of the holders of the bonds herein authorized to be issued and the coupons attached thereto, a statutory mortga4 lien upon said school building property and all improvements thereon is granted and created by KRS 162.120=290, which said statutory mortgage lien is hereby recognized and declared to be valid and binding upon the City and on the property herein referred to and shall take effect immediately, such statutory mortgage lien being restricted and subject to the terms and condi- tions set out in the form of said bonds which appears in Section 4 of this ordinance. Any holder of said bonds or of any of the coupons, either at law or in equity, by suit or other legal proceedings, may enforce and compel the performance of all duties required by the Constitution and Statut of Kentucky, including the charging and collection of sufficient rent, the segregation of 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 affects the interest of any holder of the bonds or coupons herein authorized. If there be any default in the payment of the principal of or interest on any of said bonds, then upon the filing of suit by any holder of any of said bonds or any of the coupons, any court having jurisdiction of the action may appoint a Receiver to administer the property with power to charge and collect rents sufficient to provide for the payment of interest and principal requited by said bonds, to maintain the maintenance and in- surance fund herein provided for, and to apply the income and revenues in conformity with this ordinance and with the laws of Kentucky aforesaid, 869 8. The bonds authorized to be i-asued hereunder shall not be entitled to priority, one over the other, regardless of the fact that they may be issued and delivered at different times. 9. While any of the bonds herein authorized are outstanding, the City shall not issue any additional bonds payable from the revenues of said school building property unless the lien to secure such additional bonds is made inferior and subordinate in all respects to the lien securing the bonds herein authorized, subject, however, to the terms and conditions set out in the form of said bonds which appears in Section 4 of this ordinance. 10. So long as any of the bonds are outstanding, the City shall keep proper books and records (separate from all other records and accounts) of all transactions regarding said bonds. It will furnish to the original purchaser of said bonds and to the holder of any of said bonds, upon written request, not more than thirty days after the close of each fiscal period, complete operating and income statements certified by the auditors for the City or for the Board, and will grant to a ny holder or holders of twenty-five per cent of the bonds then outstanding, the right at all reasonable times to inspect the property and all records and accounts of the City relating thereto. 11. The scho®1 property mentioned herein as being subject to the statutory mortgage lien to secure the aforesaid issue of bonds is located in the City of Paducah, McCracken County, Kentucky, and more par- ticularly described as follows: Beginning at the southwest corner of the inter- section of 8th Street and Caldwell Street; thence Westwardly with the South line of Caldwell Street 346.5 feet, more or less, to the east line of 9th Street; thence Southwardly with the East line of 9th Street 346.5 feet, more or less, to the North line of Husbands Street; thence Eastwardly with the North line of Husbands Street 346.5 feet, more or less, to the West line of 8th Street; thence North- wardly with the West line of 8th Street 346.5 feet, more or less, to the point of beginning. Being the same property acquired by the City of Paducah, Kentucky, from the Board of Education of the Paducah Independent School District by deed. dated January 31, 1958, and recorded in Deed Book 393 page 91, in the office of the County Clerk of McCracken County, Kentucky. 12. That said ;160,000 of bonds, numbered 1-160, inclusive, shall be sold at public sale immediately after reasonable advertising, and the Mayor and City Clerk are hereby authorized and directed to make such advertising of a Notice of Bond Sale in such form as is approved by the Kentucky Department of Education. That bidders shall be required to bid at least face amount and accrued interest by sealed competitive bids, and must name an interest rate or rates in multiples of 1/4 of 1%, not to 870 exceed the legal maximum of six per cent (6%) per annum. That said bids shall be received in the office of the City Clerk until some day and hour when the Board of Commissioners is scheduled to be in session in a regular meeting, an adjourned regular meeting or a called special meeting. That the Board of Commissioners shall in a resolution accepting the successful bid determine the exact rate or rates of interest which said bonds shall bear, and the interest rate or rates on said bonds shall be automatically fixed at the rate or rates set out in said successful bid accepted in said resolution without the necessity of any further ordinance of the Board of Commissioners fixing said rate or rates. That the proceeds of the sale of said bonds shall be used only for school building purposes, and shall be expended on the property described herein. 13. Upon the sale and delivery of said bonds, the amount re- ceived from the purchaser as representing accrued interest thereon, plus an additional amount sufficient (when added to said collected accrued in- terest) to provide for all interest which will accrue and become due (on October 1, 1958) during the anticipated period required to complete the construction of the school building intended to be financed thereby, shall immediately be deposited in the Bond Fund. Thereafter, from the remaining proceeds there shall be paid all expenses incident to the authorization, sale and delivery of the bonds. The Commissioner of Finance (or the City Treasurer) is authorized to sign whatever checks, if any, are necessary to accomplish that purpose. The entire remaining proceeds shall thereafter be devoted exclusively to payment of the cost of the school building and appurtenances only upon the property described herein in accordance with the plans and specifications duly approved and filed, as provided by KRS 162.160. That pending expenditure of the proceeds then remaining, such funds shall be deposited, until needed for construction purposes, in a special construction account at the Citizens Bank & Trust Company, Paducah, Kentucky, called the "City of Paducah, Kentucky, School Construction Account." Such funds shall be supplemented by funds in the approximate amount of $33,267.80 to be deposited in said account by the Board of Education to supplement the proceeds of said bonds to cover the total cost of said building. To the extent that said Account shall exceed the amount insured by the Federal Deposit Insurance Corporation, the same shall be continuously secured by a valid pledge of bonds of the issue herein authorized, or bonds or notes of the United States Government having an equivalent market value, or shall be invested in either of suhh types of securities having a maturity date or dates at such time or times as to make such funds available when needed for construction purposes, or shall be secured by a surety bond with good corporate security furnished by an approved surety company qualified 871 to do business in Kentucky, such pledging, investing or securing to be determined in accordance with the designation of the Board of Education. The money in that account shall be expended by payments made to defray the cost of construction of the school building herein referred to, such payments to be made upon checks drawn upon said bank by t1n Commissi . of Finance (or the City Treasurer), countersigned by a representative of said Board of Education (to be designated by a written resolution of said Board) and accompanied in detachable form by a voucher in duplicate entitled "Authorization for Payment" signed by the Architects having supervision of the construction of said school building, in substantially the following AUTHORIZATION FOR PAYMENT It is hereby certified that is due the sum of $ , which represents an amount duly earned y and paya le to said party, its successors or assigns for labor, materials, work or services furnished under an existing contract with the City of Paducah, Kentucky, relating to the construction of a new elementary school building and appurtenances financed primarily by the issuance of City of Paducah School Building Revenue Bonds, dated April 1, 1958, or for other work or services in connection therewith. It is further certified that all of said labor, materials, work and/or services were furnished in connection with the construction of said new elementary school building located at the south west corner of Eighth and Caldwell Streets in Paducah, Kentucky/ Dated Architects" The Commissioner of Finance (or City Treasurer) is hereby authorized to execute such checks from time to time in the necessary amounts, upon the aforesaid voucher or "Authorization for Payment" being executed by the Architects and presented to the Commissioner of Finance, without the necessity of any further meetings, authorizations, ordinances or reso- lutions of this Board of Commissioners. Such checks, so long as the authenticating voucher (Authorization for payment) shall remain attached thereto, shall be fully negotiable, and the aforesaid bank shall be authorized to honor and pay the same providing it assumes the responsibility for the propriety of all endorsements, or provided all endorsements to it are guaranteed by a bank. Upon the payment of each such check, the authenticating voucher attached thereto, shall be retained by the depository bank and surrendered to the Commissioner of Finance at the time of the final accounting as between the Commissioner of Finance and the bank (with the Commissioner of Finance retaining the duplicate vouchers.) After the Architects certify that the construction has been completed and paid for, any surplus remaining in the Construction Account may be transferred to the Bond Fund. 872 14. If, for any reason, the funds obtained by the sale of said bond issue are not properly allocated, or if there is any misapplication of the proceeds, such improper allocation or misapplication shall not affect the validity of any bonds issued in accordance with this ordinance. 15. The provisions of this ordinance shall constitute a con- tract between the City of Paducah and the holders of any bonds and interest coupons from time to time outstanding pursuant to the provisions of this ordinance, and after the sale of any of such bonds or coupons, no change in the provisions of this ordinance shall be permitted while any of said bonds and coupons remain outstanding and unpaid, except as ex- pressly authorized by this ordinance. i 16. The Board of Commissioners hereby selects and designates Johnston & Seay, Registered Architects of Paducah, Kentucky, as the Architects for said new Southside Elementary School Building, and to exercise supervision over the construction thereof, the Board of Education having indicated that said Archi- tects are approved by said Board, as contemplated by KRS 162.160. i 17. If any of the officers whose signatures appear on the bonds or coupon$ cease to be such officers before delivery of the bonds, the signatures shall nevertheless be valid for all purposes the same as if the officers had remained in office until delivery, as provided in KRS 162.190. 1$. If any section, paragraph or clause of this ordinarm shall be held invalid, the invalidity of such section, paragraph or clause shall not affect any of the remaining provisions of the ordinance. 19. All ordinances, resolutions and parts thereof in conflict herewith are, to the extend of such conflict, hereby repealed. 20. This ordinance shall be introduced and remain on file for public inspection for at least one (1) week in the completed form in which it shall be put upon its final passage, and if adopted shall be in full force and effect ten (10) days thereafter. Mayor Pr_o Tem inston Gholson, Commissioner Introduced by the Board of Commissioners March 8, 1958 Passed by the Board of Commissioners March 15, 1958 Recorded by Sarah Thurman, City Clerk, March 15, 1958.