HomeMy WebLinkAboutOrdinances Book 15, Page 673, No Ordinance NumberAN ORDINANCE PROVIDIN3 FOR THE A6WUISITION BY THE CITY
OF PADUCAH, KENTUCKY, OF A BUILDING SUITABLE FOR USE AND
OCCUPANCY FOR INDUSTRIAL PURPOSES, INCLUDING APPURTENANCES
THERETO AND OF THE SITE UPON 11THICH SUCH BUILDING IS LOCATED,
IN ORDER THAT SAID CITY I -AY BE PROVIDED ?•TITH FACILITIES
FOR INDUCING INCREASED PRIVATE INDUSTRY IN THE COMMUNITY
AS A MEANS OF AVOIDING AND CONSEQUENCES OF UV MPLOYI•ENT
AND TO PROMOTE THE GENERAL V•'ELFARE OF SAID CITY, AUTHOR-
IZING AND PROVIDING FOR THE ISSUANCE OF INDUSTRIAL BUILDING
REVENUE BONDS IN CONNECTION TI12,;RZWITH VIIICH t-IILL BE PAYABLE
SOLELY AVID ONLY FROM REVENUES AND RENTAL INCnM9E FROM SAID
INDUSTRIAL BUILDING AND AUTHORIZING THE EXECUTION OF A
CONTRACT OF LEASE AND RENT I:1HEREBY SAID BUILDING ?:'ILL PRO-
DUCE REVENUES AND RENTAL INCOME SUFFICIENT TO PAY THE IN-
TEREST ON AND PRINCIPAL OF SAID REVENUE BONDS AS THE SATE
BECOME DUE.
1,JHEREAS, the City of .Paducah, a city of the second class, in McCracken
County, Kentucky, is located in an agricultural section of the Commonwealth,
and there does not exist a sound balance between agriculture, commerce and
industry in that there is a surplus of unemployed factory workers in the City
available for industrial employment, and it is necessary for,the general wel-
fare and economy of the City of encourage the increase of industry, and
.7HEREAS, Reliance Diecasting Company, a corporation of Paducah, Ken-
tucky, has offered to utilize manufacturing facilities in or,near said City in
such manner as to afford, at full capacity, substantially increased employment
among such factory workers, provided said City acquires a building suitable for
industrial purposes for the manufacture of products and will lease the same to
said corporation upon terms which will be sufficient to pay the cost of the
acquisition of said building and appurtenances and of the site upon which such
building is located, together with the interest, insurance and maintenance
charges, all as set forth in the terms and provisions of an agreed contract of
lease and rent hereinafter identified, and Rupert Diecasting Company, a Missouri
corporation, has guaranteed or will guarantee tl,e performance of all obligations
of Reliance Diecasting Company i.n connection with the latter's agreement w-1th
the City, and
?:HE EAS, the Board of Comrissicners of said City is of the opinion that
the operation of a manufacturing plant as proposed will promote the general
welfare of said City and all of its citizens and inhabitants, and
?.'HEREAS, under the provisions of the Constitution and laws of Kentucky,
including particularly KRS Sections 103.200 to 103.285, inclusive, said City
is authorized to acquire such industrial building with appurtenances and such
site and lease the same as hereinafter proposed, and for the purpose of paying
the cost of such acquisition, as well as expense incident thereto, is authorized
as aforesaid to issue its revenue bonds, payable solely from the revanues and
rental income derived from the project, all as hereinafter provided,
NO'aI, THEREFORE, BE IT ORDAINED BY THE BOARD.OF C0M1:ISSI01':ERS OF THE
CITY OF PADUCAH, KENTUCKY, AS F•OLLCI,',S:
674
Section 1. That in order to promote the general welfare of the City
of Paducah, Kentucky, and its inhabitants by providing opportunities for
permanent employment there shall be and there is hereby authorized to be
acquired an existing building suitable for use and occupancy for industrial
purposes, and the appurtenances thereto and the site upon which such building
and appurtenances are located, hereinafter described. It is hereby found
and declared that the acquisition of said site and building is for a public
corporate purpose and that the leasing thereof to Reliance Diecasting
Company, as hereinafter provided, is necessary for a solution of public
problems as described in the preamble hereto. Said building and site, as
hereinafter more particularly described, together with all improvements
thereto and extensions thereof, are hereinafter sometimes referred to as
the "Project."
Section 2. That for the purpose of financing the cost of said Project
there shall be and there are hereby authorized to be issued the negotiable
Industrial Building Revenue Bonds of said Cit.; of Paducah in the aggregate
amount cf X400.000 dated August 1, 1965, in the denomination of u1,000
numbered 1 to 400, inclusive, bearing interest at a rate or rates to be
determined at the time of the public sale of such bonds, based upon competi-
tive bidding, such interest to be payable February 1, 1966, and semi-annually
thereafter on the fist days of August and February of each year, and said
revenue bonds shall be scheduled to mature serially and in numerical order
on August 1 of the respective years as follows:
Year Principal Amount Year Principal Amount
1966 $12,000 1975 $24,000
1967 15,000 1976 26,000
1968 16,000 1977 27,000
1969 17,000 1978 29,000
1970 18,000 1979 30,000
1971 19,000 1980 32,000
1972 20,000 1981 34,000
1973 22,000 1982 36,000
1974 23,000
provided, however, all of said revenue bonds numbered 187 to 400, inclusive,
as may be outstanding from time to time, shall be subject to redemption by
said City prior to maturity as a whole, or in part in the inverse order of
their maturity (less than all of a single maturity to be selected by lot),
on any interest payment date on or after August 1, 1975, upon terms of par
and accrued interest at the coupon rate to the redemption date, plus a
redemption premium in an amount equal to two per cent of the principal amount
thereof, if called for redemption on or prior to February 1, 1980, and one
Per cent of the principal amount thereof if called for redemption thereafter
and prior to maturity. Notice of any such redemption shall be given by
Publication at least once not less than thirty days prior to the redemption
675
date, in a newspaper of general circulation throughout the Commoni•:ealth of ten-
tucky. Both principal and interest shall be payable in lawful money of the United
States of America at the principal office of The Paducah Bank, Inc., in the City
of Paducah Kentucky. Each of said revenue bonds shall be executed or, behalf of
said City of Paducah with facsimile signature cf the Mayor and attested by the
manual signature of the City Clerk, and the corporate seal of said City shall
be ipprinted thereon, and the interest coupons attached to such bonds shall be
executed with the reproduced facsimiles of the signatures of said Mayor and said
City Clerk. Said ravcnue bonds and the interest thereon shall not constitute an
indebtedness of the City of Paducah within the meaning of the Constitution of
Kentucky but shall be payable from and secured stalely and only by a pledge of the
"Industrial Building Revenue Bonds Sinking Fund," hereinafter created, and shall
be a valid claim of the holder or holders thereof only against said Fund and the
revenues and rental income from said Project as same are hereinafter pledged to
said Fund.
Section 3. That said revenue bonds and interest coupons appertaining thereto
shall be fully negotiable, provided, that upon presentation at the office of People's
First National Bank and Trust Company, Paducah, Kentucky, the Trustee provided
for hereunder, of any of said revenue bonds, same may be registered as to,principal,
and such registration shall be evidenced by notation to that effect on the reverse
side thereof by such Banc, after which no transfer shall be valid unless made at
the request of the registered o ner, his legal representatives or assigns, on
the books of said Bank and similarly endorsed thereon. Such registered revenue
bonds may be so transferred to bearer, whereupon, full negotiability by delivery
shall be restored, but they may again, from time to time, be registered or trans-
ferred to bearer as before. Such registration of any of said revenue bonds shall
not affect the negotiability by delivery only of the interest coupons thereunto
appertaining.
Section 4. That said revenue bonds and interest coupons and provisions
for registration shall be in substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
COMMOWEALTH OF KENTUCKY
COUNTY OF Me CRACKEN
CITY OF PADUCAH INDUSTRIAL BUILDING REVENLC BOND
No.
'P1,000
KN06;'ALL 1EN BY THESE PRESENTS, that the City of Paducah, a municipal
corporation and political subdivision in the County of McCracken and Commonwealth
of Kentucky, for value received, hereby promises to pay to the bearer hereof or,
if this revenue bond be registered, to the registered holder hereof, but solely
from the source and in the manner hereinafter provided, on the first day of
August, 19 , the sum of One Thousand Dollars (;;1,000) and to pay interest on
said sum from the date hereof at the rate of per cent ( %)
per annum on February 1, 1966 and semi-annually thereafter on the first days of
Lugust and February of each year until paid, except as the provisions herein-
after set forth with respect to redemption prior to maturity may be and becoma
applicable hereto. All such interest accruing on and prior to maturity hereof
676
is payable only on presentation and surrender of the respective annexed interest
coupons, as they severally mature, and both principal and interest are payable
in lawful money of the United States of America at the princiapl office of .The
Paducah Bank, Inc., in the City of Paducah, Kentucky.
This revenue bond is one of an issue numbered 1 to 400, inclusive
aggregating :;400,000 principal amount, authorized by ordinance duly adopted by
the Board of Commissioners of said City pursuant to and in full conformity with
the Constitution and laws of the Commonwealth of Kentucky, and particularly
under the provisions of Sections 103.200 to 103.2853 inclusive, of Kentucky
Revised Statutes, for the purpose of financing the cost of an industrial building
for said City, all as more fully identified and provided in said ordinance.
The revenue bonds numbered 187 to 400, inclusive, of said issue, as
may be outstanding from time to time, are subject to redemption prior to matur-
ity by said City at its option, as a whole or in part in the inverse order of their
maturities (less than all of a single maturity to be selected by lot), on any
interest payment date on or after August 1, 1975, upon notice given by publi-
cation at least once not less than thirty days prior to the redemption date,
in a newspaper of general circulation throughout the Commonwealth of Kentucky.
Said revenue bonds shall be redeemable upon terms of par and accrued interest at
the boupon nate* to- thb_-redeinption-data;:plus a redemption premium in an amount
equal to two per cent of the principal amount there of, if called'for redemption
on or prior to February 1, 1980, and one per cent of the principal amount thereof
if called for redemption thereafter and prior to maturity. Said revenue bonds
when thus called for redemption and funds for the retirement thereof are duly
provided will cease to bear interest on such redemption date.
This revenue bond shall be fully negotiable unless registered.as -to
principal in the name of the holder on the books of Peoples First National Bank
and Trust Company, Paducah, Kentucky, Trustee with reference.to such bonds,
such registration being noted hereon by such Bank after which no transfer shall
be valid unless made on said books and similarly noted hereon, but it may be
discharged from such registration by being transferred to hearer, after which
it shall be again negotiable by delivery. Such registration of this revenue
bond shall not restrain the negotiability of the attached coupon; 1,;� aeli7A=;
merely.
This revenue bond and the issue of which it is a part are and will
continue to be payable solely and only as to both interest, principal and re-
derptior from and secured by a pledge of a sdffici=nt portion of the revenues
and rental income derived from the operation of said industrial building pro-
ject, which portion is required to be set apart and transferred to a special
fund created for that purposo. It is provided by said Sections 103.200 to 103.285
inclusive, of Kentucky Revised Statutes and in the proceedings supporting this
issue of revenue bonds that said City shall fix and maintain rates and collect
charges for the use and occupancy of said industrial building project which
Will provide revenues and rental income at least sufficient at all tires to pay
the interest on and principal of said revenue bonds as the sane become due and to
provide for the operation and maintenance of said project. This revenue bond
does not constitute an indebtedness of said City within the meaning of the
Constitution. of Kentucky, nor shall said City be obligated to pay this revenue
bond or interest thereon except from the revenues and rental income from said
industrial building project.
Under a Contract of lease and Rent entered into between the City of
Paducah, Kentucky, and Reliance Diecasting Company, the latter or such City
has the right to withdraw, free and clear, of the security of the bonds of the
issue of which this bond is a part, an unimproved portion of the site of such
industrial building for use as the site for an addition to the original building
or for a new building, with or without a party wall which may be a wall of the
original building, all as is more specifically set out in the ordinance author-
izing the issue of bonds, of which this bond is a part, and in such Contract
of Lease and Rent. Each holder of bonds of the issue of which this bond is a
part, by accepting and holding same, agrees that the be&. designated herein as
the Trustee for this bond is authorized as his agent to execute a quitclaim
deed upon his behal_*, conveying any title or claim he may have to such released
land, to Reliance Diecasting Company or such City, as the case may be, if for,
any reason it should be deemed necessary in order for such party 'to obtain good
title to such land (although such action will not be necessary under the pro-
visions herein and under the provisions governing such release).
Neither this bond nor any appertaining interest coupons shall be valid
cr obligatory unless this bond is authenticated by Peoples First National Bank
and Trust Company, Paducah, Kentucky, as Trustee, its successor or successors,
by the execution of the Trustee's Certificate endorsed hereon.
It is hereby certified and recited that all acts, conditions --nd things
required by the Constitution and lamas of Kentucky and the proceedings authorizing
the issuance of this revenue bond, have happened, exist and have been performed
as so required in order to make this a valid and legal revenue bond.
IN ETITNESS i%'HEREOF, said City of Paducah,'Kentucky, has caused this
revenue bond to be executed on its behalf with the reproduced facsimile signature
of its Mayor, attested by the manual signature of its City Clerk, and reproduced
facsimile of its corporate seal of said City to be imprinted hereon, and has
caused the interest coupons hereto attached to executed by its Mayor and City
Clerk by their reproduced facsimile signatures, all as of the first day of Au-
gust, 1965.
(Seal of City)
Attest:
City Clerk
CITY OF PADUCAH, KENTUCKY
BY
(Form of Coupon)
Number
N
On the first day of 19_, (unless the revenue
ore reab
bond described below shall have been theretofdeemle and shall have been
duly called for previous redemption and payment of the redemption price duly
made or provided for), the City of Paducah, Kentucky, will pay to the bearer upon
presentation hereof the amount shown hereon, in lawful money of the United States
of America at the principal office of The Paducah Bank, Inc., Paducah, Kentucky,
as provided in and being interest due that day on its Industrial Building Revenue
Bond dated August 1, 1965, numbered
Mayor
City Clerk
(Form for Registration of Ownership to Be Printed
on the Back of Each Revenue Bond)
I
i
I Date of Registered Signature of
! Registration In Y]hose Name Bond Registrar
J
(Fora of Trustee's Certificate)
This is to certify that this bond is one of a series of authorized
i bonds, numbered 1 through 400, in the aggregate principal amount of ;400,000,
referred to in the within bond and in the ordinance authorizing same.
PEOPLES FIRST RATIONAL BANK AND TRUST COMPANY
Paducah, Kentucky
By
Authorized Officer
Section 5. That upon the adoption of this ordinance the City Clerk is
hereby authorized and directed to cause notice of the public sale of the bonds
herein authorized to be published in the newspaper published in Paducah, Kentucky,
677
678
which has the largest circulation within such City, in The Courier -Journal,
published in Louisville, Kentucky, and in The Bond Buyer, published in New York,
New York, in order to comply with legal requirements. That prior to the time
stated in such notice, sealed competitive bids may be filed with the City Clerk at
the City Hall, Paducah, Kentucky, for the purchase of such bonds. Such notice
shall provide that such bids shall be made on the form of Bid Form which may be
obtained from the City Cleric or the City's Fiscal Agent. Such notice and such
bid form shall be in the customary form and shall provide that the right is
reserved to reject any and all bids. Such notice of sale may or may not provide
for each bidder to furnish a certified or cashier's check as guaranty.of its
good .faith. At or after the tirm stated in such notice, such proposals shall be
opened and the successful bid shall be accepted by ordinance or resolution of the
Board of Commissioners.
Section 6. That the proceeds received through the issuance and sale
of said revenue bonds shall be applied first to the expenses in connection with
the issuance and sale of such bonds and then to the purpose of paying the other
costs of said Project, provided, all sums received as accrued interest shall be
promptly deposited in the "Industrial Building Revenue Bonds Sinking Fund"
hereinafter created. There shall be paid by the City or by a bank acting as
agent for the City, pursuant to directions of the Mayor or Treasurer of the•..Cftd,
immediately upon the City or such agent receiving paymant for the bonds herein
authorized, the full amount of the fee of The Kentucky Company for :its services
as fiscal agent in assisting the City in connection with the issuance of the
bonds herein authorized. Such fiscal agency fee shall be paid without any
further authorization by anyone else and prior to the payment of any part of the
proceeds of such bonds into the Sinking Fund or the acquisition fund herei.ng
provided for. Such proceeds (less the amount paid to such fiscal agent and
into such Industrial Building Sinking Fund) shall be deposited in an acquisition
fund with the Trustee, or upon the directions of the Mayor and City Treasurer, shall
be paid, in whole or in part as they may direct, to the Greater Paducah Indus-
trial Development Association, Inc., upon delivery by that corporation of a deed
of general warranty, conveying the property hereinafter described to the City.
Notwithstanding any of the other provisions within contained, a conveyance of
the property comprising such Industrial Building Project may be made to the City
even though the improvements on such project are not complete whenever such 1;L00;000
of bonds are ready for delivery on any date on or after August 1, 1965, with such
conveyance to be made not later than the time such bonds are taken up and paid for
and thereafter, upon the completion of such project, amounts in such acquisition
fund shall be converted into cash and used to the extent necessary to pay the
cost of the completion of such project, with payment to be made to the order of
Greater Paducah Industrial Development Association, Inc.
11henever there are amounts in the acquisition fund provided for herein,
in the Sinking Fund provided for in Section 8 herein or in any other fund estab-
lished by this ordinance, such Contract of Lease and Rent or otherwise in connection
with such Project, which are not needed immediately for the purposes for which such
fund or funds were established, such amounts which are not immediately needed may
be invested in direct obligations of or obligations guaranteed by the United
States Government or may be placed in interest-bearing deposits in a bank or banks,
provided that the maturities of such obligations and the times when such interest
nearing deposits may be withdrawn are such that the proceeds Of same will be avail-
able at the time or times when same are needed for the purposes for which such
funds are held, and provided further that all of such investments are first
approved by the Lessee of such property, unless and until a court of competent
jurisdiction shall rule that the requirement of such approval is unauthorized
and invalid. Each cash deposit:by the City in any bank, whether or not such de-
posit is an interest-bearing ore, to the extent that any deposit is in excess of
the amount insured by the Federal Deposit insurance Corporation, shall be fully
secured by a surety conpany or companies authorized and qualified to do business
in Kentucky or by a pledge of obligations of the United States Government having
at -all times a market value of not less than such amount in excess of the amount
covered by such Federal >Iaposit Insurance Corporation insurance.
All of such investments, as well as the income therefrom, shall be
carried to the credit of the particular fund from which each was used to make
such investments. As and when any such funds thus invested may be needed, a
sufficient amount of such invsstreats, if necessary, shall be sold and converted
into cash to the credit of the particular fund in which such investments are
held. If full payment for acquisition of the project is not made immediately
upon receipt of the proceeds from the sale of the bonds as hereinbefore provided,
and any such proceeds are instead deposited in the acquisition fund hereinabove
alternatively provided for, then all vouchers or orders for disbursements of
such proceeds from the acquisition fund for the acquisition costs shall be approved
by the Mayor and City Treasurer. Any surplus remaining after accomplishing the
aforesaid purpose shall be paid into said "Indust:^al Building Revenue Bonds
Sinking Fund.11 ?'?itlrout limiting the generality of the forego_ng term, "acqui-
sitior, costs," such term '_ncludes the test of the plant and appurter-uices, in-
cluding the site therefor, necessary legal fees in connection, with such Project,
end all other necessary costs necessary to be incurred in connection with such
Project. Reimbursement may be made to those 1.110 have already incurred necessary
expenses in connection with such Project in contemplation of the issuance of the
bonds herein authorized.
679
68o
Section 7. The revenue bonds issued hereunder and from time to time
outstanding shall not be entitled to priority ore over the other in the appli-
cation of the revenues and rental income pledged to the payment thereof or with
respect to the security for such payment, regardless of the time or times of their
issuance, and any other revenue bonds or obligations hereafter issued tat are
payable from the revenues or rental income of said Project shall be subject to
the priority of the annual interest and Sinking Fund requirements in favor of
the revenue bonds hereby authorized and from time to time outstanding.
Section 8. That said Project shall be acquired and opened for use and
occupancy by Reliance Diecasting Corporation as expeditiously as may be and shall,
so long as any of the revenue bonds hereby authorized are outstanding, be oper-
ated and maintained as a revenue-producing undertaking. It is hereby repre-
sented that said Project will be acquired and opened for use on or before
August 1, 1965, or as soon thereafter as possible and is located upon.a tract
of land situated in McCracken County, Kentucky, described as follows:
Beginning at a stake on the South side of the Paducah-
Hink leville Gravel Road where a line known as Allen
Lane intersects said road, said beginning point being
the Northwest corner of the 50 acre tract of land out
of which this tract is carved runs thence with the East
line of said line South 3 degrees East 633 feet to a
post in the North line of the Paducah -Illinois Railroad
Company's right-of-way; runs thence with the North line
of said railroad right-of-way South 70 degrees East to
a stake in the :lest Line of T•larren Avenue there said
point intersects the North line of said right-of-vay
as shown by plat of same dated September 21, 1950, as
made by H. F. Henson., Surveyor; thence North 3 degrees
West a distance of approximately 714 feet to a stake in
the South line of the Paducah-Ilinkleville Gravel Road;
thence South 84 degrees Vest and with the South line of
said Paducah-Hinkleville Gravel Road a distance of 375
feet to the point of beginning.
Being the same land conveyed to Big Burley Realty, In-
corporated, by James E. King and others, by deed dated
July 9, 1958, and of record in Deed Book 397, page 190,
in the N'cCracken County Court Clerk's office.
It is the declared intention of the City to lease such Project to
Reliance Diecasting Company for an extended period of years under a Contract of
lease and Rent hereinbefore referred to the form of which shall provide sub-
stantially as is provided in Exhibit A filed in the office of the City Clerk
of the City prior to the time of the presentation of this ordinance to the Board
Of Commissioners; provided, however, that the Conditional SaleJContract
dated I•lay 1, 1;65, between Rupert Diecasting Company (the Guarantor under
such Contract of Lease and Rent) and Reliance Diecasting Company (the Lessee
under such Contract of Lease and Rent) filed in the office of the City Clerk and
marked as Exhibit B, shall be considered as having its terms incorporated.into
such Contract of Lease and Rent, and it is the declared intention of the City
to treat such Conditional Sales Contract as being incorporated into such Con-
tract of Lease and Rent as fully as if copied therein.
The Mayor is hereby authorized to execute and acknowledge said Contract
of Lease and Rent for and on behd.lf of said City, and the City Clerk is hereby
authorized to attest same and affix thereto the corporate seal of said City.
Said Contract of Lease and Rent and the proceeds thereof, including all monies
received under its tens and conditions, are hereby declared to constitute reve-
nues and rental income.from said Project and are hereby ordered paid into the
"Industrial Building Revenue Bonds Sinking Fund," as hereinafter created and pro-
vided. In said Contract of Lease and Rent the City has agreed that Reliance
Diecasting Company, may at its option remit the required rental paym:.ntS there-
under direct to the Trustee herein by check or checks payable to the order of
said Trustee for deposit in said Sinking Fund, with advice to the City of such
remittance, and such provision is hereby expressly approved. Said City of Paducah
hereby covenants and agrees that so long as any of the revenue bonds hereby author-
ized are outstanding it will preserve and enforce said Contract of Lease and Rent
and such Conditional Sale Contract incorporated by reference therein in substan-
tially the form as hereinbefore identified and trill not permit any change or varia-
tion in the terms of the guaranty of hupert Diecasting Company, a Missouri corpor-
ation, as set forth in such Contract of Lease and Rent. If for any reason. Re-
liance Diecesting Company ceases to use and occupy said Project in accordance with
the terms of said Contract of Lease and Rent, then the City covenants and agrees
to cause said Project to be used and occupied by any other tenant or tenants that
that may be determined to serve the general welfare of said City and that will agree
to pay at least like rentals and otherwise carry out the obligations of said cor-
poration as expressed therein. All revenues and rental income from said Project,
together with any future extensions and improvements thereto, shall be kept
separate and apart from all other funds of the City and shall be paid directly to
such Trustee for the account of the City.
It is hereby recognized that under the terms and provisions of the
authorized use and occupancy of said Project by Reliance Diecasting Company,
said corporation will, in addition to the cash rental payments, also pay the cost
of maintenance and operation of said Project, and insurance premiums. For the
purpose of paying the cost to said City of maintaining and operating said Project
and the cost of insurance thereon, to the extent that such costs are not other-
wise provided and paid, them may be withdrawn each month from said revenues and
rental income after making the minimum payment into the "Industrial Building
Revenue Bonds Sinking Fund," as hereinafter provided, such amounts as may be
reasonably necessary for that purpose, and said City covenants and agrees that so
long as any of the revenue bonds hereby authorized are outstanding it will cause
said Project to be maintained, operated and insured, and to fix, charge and collect
sufficient rentals for that purpose. The City further agrees to establish all
funds and to take all action which may be required by YRS 103.200 through KRS
103.285.
681.
682
There shall be and there is hereby created a special fund to be known
as the "Industrial Building Revenue Bonds Sinking Fund" (hereinafter sometimes
called the "Sinking Fund"), into which there shall be set apart and paid each
month from the revenues and rental income from the Project sufficient amounts
to pay the interest on the revenue bonds as the 'same becomes due and to create
a sinking fund to retire the bonds at or prior to maturity. All sums received
as accrued interest shall be paid into the Sinking Fund, and in'addition it is
hereby determined and agreed that commencing August 1, 1965, there shall beset
apart and paid into the Sinking Fund from the revenues and rental income from
the Project or from the excess bond proceeds remaining after acquisition of the
Project, in equal monthly installments, the following minimum annual amounts::
During the Rental
During the Rental
Year Ending
Total Annual
Year Ending
Total Annual
July 31
Rental
July 31
Rental
1966
$43,676.67
1975
;;38,280.00
1967
45,956.67
1976
38,840.00
1968
46,056.67
1977
3$,280.00
1969
46,096.67
1978
38,660.00
1970
46,076.67
1979
37,920.00
1971
38,320.00
1980
38,120.00
1972
38,180.00
1981
37,976.65
1973
38,980.00
1982
-0-
1974
38,660.00
The foregoing schedule of minimum annual amounts to be paid into the
Sinking Fund are stated on the assumed basis that the revenue bonds hereby
authorized are sold to bear an interest rate of 6% per annum and in order to
build up within five years from August 1, 1965, a reserve equal to the average
armual principal and interest requirements on such bonds, based upon such
assumed interest rate. Each annus! mintnam payment shall be automatically in-
creased or decreased by the difference betwear. (1) the actual interest and
principal requiraments on such bonds from t'_r-e to time outstanding and in order
to maintain such reserve, in event less than :,400,000 of bonds, and/or such
bonds are sold to bear interest at a rate or rates other than such assumad rate,
and (2) the interest and principal requirements computed on the basis of the
sale of ;'400,000 of bonds at 6 per annum plus such debt service reserve each year
daring the first five years as aforesaid, computed on the basis of such 6 per
annum interest rate. Such reserve equal to the average annual principal and in-
Lerest requiraments on such bonds shell be estrblished and maintained at all
times after Au nst 1, 1970, and shall be used only to nay the interest and prin-
cipal on such bonds if for any reason there should be no other funds available
for such purpose. If for any reason the amount of such raserve should have to
be used to nay such interest on and principal of such bonds, such resarve Miall
be re-established from the first revenues of such project aftar the payment of the
other areeunts which are required to be paid into the Sinking Fund.
683
Notwithstanding any of the other provisions herein contained, any and
all amounts which may be paid into said Sinking; Fund from any surplus left in
the acquisition fund after the completion of the acquisition of such project
shall be credited to the amounts which would otherwise be due from the Company,
the initial .lessee, and shall reduce the amounts of such rental paynnnts to the
extent of such surplus in such Sinking Fund.
- . Notwithstanding any of the other provisions herein contained, no further
payments need be made into said Sinking Fund when and so long as the amount there-
in is sufficient to retire all of the revenue bonds then outstanding payable
therefrom, plus the amount of interest due and thereafter to become due on said
revenue bonds on and prior to such retirement.
All of the funds provided to be paid into the Industrial Building Favenue
Bonds Sinking Fund to meet the minimum payments into said Sinking Fund, as here-
inbefore provided, are hereby pledged and ordered used for that purpose, and all
monies transferred and paid into said Sinking Fund or provided to be paid into
said Sinking Fund shall be used solely and only, and are hereby pledged for the
purpose of paying the principal of and interest on bonds hereby authorized. The
amounts deposited in said Sinking Fund from revenues and rental income during any
year immediately prior to August 1 may to the extent required for interest and
principal payments due on or before the .following Pugustl, be invested in direct
obligations of the United States of America.baving a maturity date or being sub-
ject to redemption at the option of the holder not more than one year from the date
Of investment therain, or August 1, 1982, whichever is earlier.. Any funds in
said Sinking Fund in excess of the above provisions shall be invested in direct
obligations of the United States of America having a maturity date or being sub-
ject to redemption at the optioi of the holder not more than five years from the
date of the investment therein, or August 1, 1982, whichever is earlier, the
particular issue, interest rates and maturities of such obligations referred to
only in this sentence to be first approved by F.elianca Diecasting Company, unless
and until a court of competent jurisdiction shall rule that the requirement of
such approval is unauthorized and invalid. Fluctuation thereafter in the value of
any obligations of the .United States of America purchased shall not affect the
amounts which would cthen,,ise be required to be paid into such Sinking Fund if all
of such Sinking Fund has been retained in cash. All such investments, as well as
income therefrom, shall be carries to the credit of said Sinking Fund. As and
when such funds thus invested may be needed for the purposes of ::uch Sinking
Fund, the Trustee shall cause a sufficient amount of such ii -vestments to be sold
and converted into cash to the credit of said Sinking Fund. Such: Sinking kund
shall be established and kept at all ti. es with such Trustee, to be used exclu-
sively by the Trustee for the paytrent of the principal of and interest on such
bonds.
684
Not less than ten days prior to each interest payment date there shall
be withdrawn by the Trustee from the Sinking Fund and made available at the plane
of payment a sufficient amount to pay the interest and principal, becoming due on
such bonds on such succeeding interest payment date. If and when the amount in
the Sinking h'und is sufficient to retire all of the revenue bonds then outstanding
payable therefrom, plus the amount of interest due and thereafter to become due on
and prior to the retirement of such bonds, then such bonds may be called for re-
demption on the next succeeding redemption date, and funds sufficient to accomplish
such redemption shall be withdrawn from the Sinking Fund and made available at the
place of payment.
Section 9. ?ihenever there is in the Sinking Fund a surplus in the sum
of i??5,000 or more in excess of the amounts required to pay the current interest
and principal becoming due within the next ensuing twelve months, plus a sum
equal to the average annual principal and interest requirements of the bonds hereby
authorized, in the following manner:
The Board of Commissioners may designate a date which shall be not
less than fifteen days nor more than thirty days from the ti:ce said date is
designated, at which time it will receive sealed tenders of bonds and act upon
such offers in open session. Notice of the time and place of receiving such sealed
tenders shall be published in a newspaper or financial journal of general circu-
lation puhlished in Idew York, New York. The entire available surplus for the
retirement of bonds computed as aforesaid may be used to purchase bonds offered
at the lowest price„ which shall take into consideration the interest rate, price
offered, maturity date and other pertinent factors; provided, however, if and to
whatever extent tenders are not received at prices equal to or less than the re-
demption terms on the next succeeding redemption date the City shall reject such ten-
ders and may use and apply such .funds to the redemption of bonds. All bonds so
purchased or redeemed shall be cancelled.
Any and all action taken under this Section 9 as to 'tenders or the prior
rademotion of such bonds shall be optional with the City but only with the consent
of the Lessee, unless and until a court of competent jurisdiction shall rule that
the requirement of such consent is unauthorized and invalid.
Section 10. The City covenants and agrees that so long as any of
bonds hereby authorized remain outstanding proper books of record and accounts
will be kept separate and apart from all other municipal records and accounts,
showing complete and correct entries of all transactions relating to said project,
and that the holders of any of said bonds shall have the right at all reasonable
tines to inspect all records, accounts and data relating thereto.
Section 11. The City hereby covenants and agrees with each and every
folder or the holders of the bonds herein authorized that it will faithfully and
punctually perform all duties with reference to said project required by the ..
Constitution and laws of l<entucky and this ordinance and will cause to be charged,
685°
collected and accounted for sufficient revenues and rental income therefrom to
meet the requirements of this ordinance and will segregate said revenues and
rental income and make application thereof as herein provided. So lone; as any
of the bonds herein authorized are outstanding or until funds have been deposi-
ted with the Trustee of said Sinking Fund sufficient to retire all of said bonds
and pay all interest to accrue thereon to the date of such ratiremant, said
City further covenants and agrees not to sell., convey, transfer, mortgage or
encumber said project nor any of the revenues or rental income therefrom, ex-
cept as may be specifically herein permitted and provided, and further that the
structural portions of the Project will be continuously insured against loss or
damage by fire, with Uniform Extended (,overage Endorsement covering perils of
windstorm, hail, explosion, riots, civil commotion, aircraft, vehicles, and
smoke (except as limited in the present Uniform Standard Extended 'Coverage
Endorsement) and such other casualties and events as may be provided for under
uniform coverage in an amount equal to at least the lesser of the full insurable
value of such project or an amount equal to the total face amount of such bonds
which are at the particular tine outstanding, and to pay premiums thereon and
keep such insurance in full force and effect during the entire time any of the
bonds authorized hereunder are outstanding or the interest thereon remains un-
paid, to the extent that the revenues from such project are sufficient to pay
the premiums .for such insurance or shall require a lessee of such industrial
building project to carry such insurance at all times and to pay the cost thereof.
All such insurance policies whether in the name of the City or in the name of a
lessee, shall be in companies authorized to transact business and in good standing
in the State of Kentucky. Each such policy shall be so written or endorsed as
to make losses, if any, payable to the City and the lessee as their respective
interests may appear, and each policy shall have standard mortgage clauses
attached payable to the Trustee as its interest may appear. The original or
originals of all such insurance policy or policies, whether procured by the City
or a lessee shall be delivered to and retained by said Trustee. any lessee
shall retain a duplicate copy or certificate of each of such policies of in-
surance, and a similar duplicate copy or certificate of each of such policies
of insurance shall be furnished to the City for its records. Any such policy
may provide that the insurer is not liable to the extent of the first w1,000
Of any loss, with the result that the lessee is its otm insurer to the extent
Of ;;13000 as to such property. As an alternate to the above a lessee may insure
such property under a blanket insurance policy or naliciss which cover not only
such property but other properties, and in the event the insurance coverabe Tor
such property is by such blanket insurance coverage, it shall be sufficient to
furnish to the Trustee a duplicate copy or certificate of each such blanket
policy of insurance, instead of furnishing to the Trustee the original or ori-
686
ginals of such blanket insurance policy or policies.
The City shall require any lessee of such project to carry public
liability insurance withr`e£erence to such industrial building project in mini-
mum amounts of ;,100,000 for the death of or personal injury to one person and
000,000 minimum liability for personal injury or death with reference to each
occurrence.in connection with wuch industrial building project, and a minimum of
'25,000 for property damage for any .occurrence in connection with such project.
The City shall be made an additional insured under such policies. Any such policy
referred to in this literary paragraph may provide that the policy does not cover
the first S1,000 of loss, with the result that the lessee is its own insurer to
that extent. The insurance provided for in this literary paragraph -may be by
blanket insurance policy or policies.
The City agrees that it will require each lessee of such project ini-
tially, when any policies herein provided for are placed in effect, to furnish
to such Trustee a complete written list of all such insurance policies in .force,
setting forth the names of the companies, character, amount and expiration of
each policy, and will require that such complete list will be furnished thereafter
each year on or before August 10.
Section 12. Each of the following events is hereby declared an event
of default, that is, if;
(a) Payment of the principal and, if any premium is due, of such
premium, of and upon any of the revenue bonds either at the date therein speci-
fied for their payment or by proceedings for redemption or otherwise, shall not
be made; or
(b) Payment of any installment of interest shall not be made on the
dates specified in the appurtenant coupons for the payment of such coupon or
within thirty days thereafter; or
(c) Default shall be made in the due and punctual observance or per-
formance of any of the covenants, conditions and agreements on the part of the
City, in the bends or in this ordinance or in any pertinent law contained, and
such default shall continue for a reriod of thirty days after written notice
specifying such default and requiring same to be remedied shall be given to tine
Board of Commissions rs,in writing by the holder or holders of bonds.
Section 13. Upon the happening of any event of default specified in
Section 12 hereof, then and in every such case the holder of any one or more of
the revenue bonds hereby authorized then outstanding may proceed to protect and
enforce the rights of the holders of all of the revenue bonds then outstanding by
suit, action or special proceedings in equity or at law, or by a preceeding in
the office of any state or federal. board or officer having jurisdiction either for
M
687
the specific performaree of any covenant or agreement or execution of any power
of for the enforcement of any proper legal or equitable remedy that shall be
deemed most effectual to protect and enforce the rights aforesaid.
If there be any default in the payment of the principal o£ and interest
on any of said bonds or if there be any default in the provisions herein made for
such payment, then upon the filing of suit by any holder of said bonds or of any
of the coupons any court having jurisdiction of the action may appoint a receiver
to administer said project on behalf of the City, with power to charge and collect
rents sufficient to provide for the payrn!ent of any revenue bonds or obligations
outstanding against the project and for the payment of operating expanses and to
apply the revenues and rental income in ccnformity with this ordinance and the
provisions of said statute laws of Kentucky. The reasonable attorneys' fees
and costs of the bondholder or bondholders in connection with obtaining the ap-
pointment of such receiver shall be 'taxed as costs and shall be a charge against
the revenues of such Project.
Section 14. Notwithstanding anything to the contrary that may be herein
provided, the City or the Lessee shall, after the acquisition of the original
Project, for only the purposes hereinafter set forth, have the right to ccnstruct
a new building or addition to the original building, with or without a party wall
which may be a wall or walls of the original building, on any of the land of the
premises herein described and constituting a part of the project, other than the
land on which the main industrial building itself is actually located and suffi-
cient land to permit ingress .to and egress from such main industrial building.
Upon the beginning of construction of any such addition to the original main
industrial building or upon the beginning of construction of any such separate
building by the City or the Lessee,, immediately by virtue of such beginning of
construction and without any further act of anyone, the land upon which such addi-
tion or separate building is constructed by the Lessee, the City shall have the
right and shall be obligated to execute a deed to such land and an additional amount
of land surrounding said addition or separate building as nay be necessary as
determined by the Lessee in order to utilize such addition or building effectively
and to provide reasonable ingress thereto and egress therefrom, conveyi.g the
title thereto ir. fee simple to the Lessee, provided, however, that in any evert and
at all ti.es there shall be reasonable ingress from public ways to such indus-
trial building constructed from the proceeds of the bonds authorized herein and
reasonable egress therefrom to public ways, and provided that the effective use of
such original building can riot be impaired. Such reasonable ingress to and a&ress
from such original industrial bu4.ldings shall include, without limiting the gern-
erolity of such tolms reasonable ingress to and eZress From such building by
persons, trucks and vehicles and by .railroad 'through the use o£.a railroad sour
esl.
tract which may be constructed adjacent to such original building,, All of! such
land not released pursuant to the foregoing provisions shall continue to be used
in conjunction with such original building. It shall not be necessary for anyone
to execute a deed upon behalf of the holders of such bonds herein authorized.
It shall be provided in the form of the bonds herein authorized, as is herein-
before set forth, that each bondholder, by accepting such bonds, consents 'that
the Peoples First national Bank and Trust Company, Paducah, Kentucky, the
Trustee hereunder, is authorized as the agent of each bondholder to execute a
quitclaim deed upon behalf of all of the holders of the bonds herein authorized,
conveying all title and claim which they may have to such released land to the
City, if for any reason it should be deemed necessary in order for the latter to
obtain title or in order for it to convey good title to such land described in
such dead executed by the City (although such action shall not be necessary
under the provisions herein and under the provisions set forth in such bonds).
?:'ithout limiting the generality of the foregoing, the,execution of a deed by the
City, conveying such land released, to the Lessee, shall be sufficient authority
for the Trustee to execute a quitclaim deed conveying any and all title or claim
the holders of any of such ;;400,000 of bonds may have to the Lessee. Upon the
release of such land there shall be paid by the one constructing such addition
or new bgilding into such Sinking Fund cash at the rate of :x500.00 per acre
for the land released, provided that such per acre price shall be reduced by the
percentage amount thereof, which percentage shall he the same as the percentage
of such bonds of such issue as has been then retired. Such release may be ob-
tained if such addition or such new building is constructed by the City of
Paducah and leased to Reliance Diecasting Company, or if such construction is by
Reliance Diecasting Company, as the case may be. In connection with constructing
such addition or such new building, the City or Reliance Diecasting Company, as
the case may be, shall have the right to make sufficient connection passageways
between the existing building and such new Wilding or addition through the
existing wall or walls of the original main industrial building constructed from
the proceeds of the bonds herein authorized, so long as such main original in-
dustrial building is rot damaged and so long as the structural support of such
existing building is sufficiently maintained.
The City shall not construct a new building or an addition to the ori-
ginal building pursuant to the foregoing provisions except upon the basis of such
new building or addition being leased to Reliance Diecasting Company, for the
full period that any of the bonds herein authorized will be outstanding, e:ccept
that such Company may be given an option to purchase such addition or such new
building, together with the land released to be used in connection therewith
during such period.
Nothing shall be done in connection with the construction or operation
of such addition or such new building which will impair in any dray the operation
of the main industrial building or the revenues and rental income derived there-
from. In connection with constructing such new building or such addition to the
existing building, any part of the industrial building project which secures the
bonds herein authorized, other than the main original industrial building proper,
may be moved and relocated on land which continues to be a part of the original
project, if it is desired to construct such addition or such new building on the
site where such facilities to be moved were originally located or if such moving
or relocation is necessary in order to use properly such facilities in connection
with such original project or such addition or new building.
If land is released from such project pursuant to the provisions herein
contained, additional land may be released from time to tit+.e from such original
project or from a subsequent industrial building project established by the City on
land released from the original project pursuant to the same provisions as are
herein contained as to land released in the first instance. In such event or events,
nothing shall be done which will impair in any way. the operation of such original
building or the revenues and rental income derived therefrom.
Section 15. The provisions of this ordinance shall constitute a con-
tract between the City of Paducah and the holders of the revenue bonds herein
authorized to be issued, provided that modifications, alterations and amendments
of this ordinance and of the rights and obligations of the City and of the holders
of bonds issued and outstanding hereunder may be made as in this section provided.
In the event it shall appear desirable and to the advantage of both the
City and the holders of the revenue bonds the City may propose modifications,
alterations and amendments of this ordinance in the following manner: The Board
of Commissioners shall adopt an ordinance modifying, altering or amendinZ this
ordinance but rroviding therein that said ordinance shall not become effective
unless and until it has had the approval of the holders of the bonds as hereinafter
set out. Immediately upon the adoption of said ordinance the Board of Comrissioners
shall set a, tire and place for and call a meeting of the holders of the bonds.
Every such meeting shall be held at such place in the City of raducah,
Nertucky, or in such other place as may be specified in the notice calling such
meati.n;. `.'rittan notice of any such meeting, stating the place and tha t1n+
thereof and in general terms the business to be submitted, shall b3 mailed ret
less than thirty days before such maeting to each erTntr f hands regi:;t_rcl ',q ;.o
rrircipal then outstandi.n,E, addressed to him at his address nprsaring on the
registration boor^,, and to the Trustee and shall be published at laast once in
each of two s::cce sive calendar weeks immediately preceding the week which 9nel.udes
the date fixed for such meeting, in a rawspaper or financial journal of general
669
circulation published in the City of New York, Idem York.
At such meeting there shall be submitted to the holders of the bonds
for their approval the ordinance theretofore adopted proposing the modifieaLion,
alteration, or amendment.
All holders of bonds outstanding at the time of such meeting shall
be entitled to vote thereat, and such attendance may be in person or by proa/.
Each person seeking to attend or vote at such meeting must, if required, pro-
duce good proof of ownership of bonds or of personal identity as shall be
satisfactory to the inspectors of votes. Every proxy shall be signed by the
holder of revenue bonds or by his duly authorized attorney and shall be witnessed,
and its genuineness if• questioned shall be established to the s- isfaction of
the inspectors of votes. The holders of revenue bonds and the holders of
proxies present shall, by a majority vote, irrespective of the amount of their
holdings, select two persons from those present to act as inspectors of votes,
who shall count all votes cast at such meeting and who shall make and file with
the secretary of the me, -,tin.,- their verified written report in duplicate of all
such votes cast at said xee'ting.
The holders -or persons entitled to vote the same of not less than
sixty -sir, and two-thirds per cent (66 2/3%) in the principal amount of the
bonds entitled to be voted at any such meeting must be present at such meeting
in person or by proxy in order to constitute a quorum for the transaction of
business, less than a quorum, however, having poser to adjourn.
Any such modifications or alterations or amendments of this ordinance
or of any rights and obliggations of the City or of the holders of the bonds
in any particular may be ?pproved at such meeting or at a due adjournment
thereof and held in accordance with the provisions of this section, but only
by a resolution duly by the affirmative vote, in person or by proxy, of the '.
holders or persons entitled to vote the same of sixty-six and two-thirds per
cent (66 2/31�) or more in aggregate principal amount of the bonds outstanding
when such meeting is held, ,provided, however, that no such modification, .
alteration or amendment shall be made which will (a) permit an extension of
the time of payment at maturity of the principal of or interest on any revenue
bone., or a reduction in the rate of interest thereon without the written consent
of the holder of such revenue bond, or (b) reduce the percentage of holders of
such bonds required by the provisions of this section for the taking of any
action under this section, and provid=,d further than no such modification,
alt -.ration or amendment herein authorized which in the opinion of the Trustee
affects the rights, duties or immunities of the 'Trustee under this ordinance may
be made without the consent of the Trustee.
691
A record of the proceedings of each such meeting shall be prepared
by the secretary of the meeting and shall have attached thereto the'original
counterparts of the reports of the inspectors of votes and afficavits by one
or more persons having knowledge of the facts, setting forth a copy of the
notice of the meeting and a copy of the record of any adjournment thereof,
and showing that said notices were duly given as herein provided. Such record
shall be. signed and verified and filed with the City Clerk, and thereupon the
proposed modifications, alteraticns and amendments, as aforesaid, shall become
effective, but otherwise shall be null and void.
Section 16. Peoples First National Bank and•Trust Company, Paducah,
Kentucky, is hereby designated as the Trustee hereunder, and the duties of such
Trustee shall be as follows:
(a) to notify all registered holders of the bonds herein authorized
of .any failure by any lessee of such project to pay the rental payments at the
time or times required under any agreement for the leasing of such project;
(b) to receive such funds of which it is hereby designated depository
and to transfer and disburse monies by it in accordance with the provisions of
this ordinance, but such Trustee shall not be liable for the payment of any
monies and shall be liable only to account for the monies actually received
by it;
(c) to retain possession of all insurance policies placed in force
pursuant to the provisions of such Contract of Lease and'Rent herein referred
to, -if and when such Contract of Lease and Rent becomes effective, and as to
which it is provided in such instrument that the Trustee shall retain possession
of such policies and to transfer any proceeds from such policies in accordance
with the provisions of such Contract of Lease and Rent, to retain possession of
all other insurance policies which may be issued pursuant to the provisions of
Section 11 hereof, to see that all policies of insurance provided for hereunder
are maintained in full force and effect at all times and that such policies of
insurance comply with the requirements herein provided, and to give notice to
all registered holders of the bonds herein authorized of any failure by any
lessee to keep the insurance policies in force which are required hereunder;
it being provided, however, that as to the City, the Lessee and any other lessee
of such project the Trustee shall not be required to pay any premium on any such
Policy, the obligation of the Trustee being to request that the proper party
place all insurance required in effect and upon the failure of the proper party
to do so to notify all registered holders of the bonds herain authorized of such
failure;
(d) to authenticate the bonds herein authorized, as herein provided;
(e) to register the principal of the bonds as herein provided;
(f) to provide at the place of payment fluids sufficient to pay the
692
0
interest on and principal of such bonds as same fall due and as coupons repre-
senting such interest and bonds representing such principal are presented for
payment, to the extent that there are monies in the Sinking Fund referred to
herein sufficient for such purpose;
(g) to make periodic reports, not less than annually, to the City,
the Lessee, the Guarantor of the Contract of Lease and Rent, any holders of the
outstanding Industrial Building Revenue Bonds of the City requesting same, and
the Fiscal Agent.in connection with the original issuance of such bonds, con-
taining any pertinent information regarding the status of the Sinking Fund,
including but not being limited to the status of the reserve fund in said Sink-
ing Fund;
(h) to invest surplus amounts of cash in the funds herein provided to
be held by '.he Trustee in direct obligations of the United States Government,
to hold such obligations, to sell same and to credit the proceeds to the funds,
all as herein provided, such Trustee to have the right to take all of such actions
without any further authorization by the City of Lessee or any other party,
except as is otherwise herein provided; and
(i) upon receipt by the Trustee of actual notice of any default of
the City in any of the terms, conditions, covenants or agreements of the ordi-
nance or ordinances authorizing such bonds, or should the City fail to meet the
obligations imposed upon it hereunder, the Trustee may, in its discretion, or
shall, upon the request in writing of the holder or holders of a majority in
amount of the outstanding bonds herein authorized, and upon being properly in-
demnified against its costs and expenses, proceed at once to file suit in any
court of competent jurisdiction for such relief as may be proper for the benefit
of the holder or holders of such bonds, and, without limiting the generality of
the foregoing, if there is any default in any or the covenants or undertakings of
such City as herein set out in any manner jeopardizing the payment of the principal
of or interest on any of said bonds, then upon the filing of suit by the Trustee
as herein provided, any court having jurisdiction of the action may appoint a
receiver to administer such project upon behalf of the City, with power to charge
and collect rents and revenues sufficient to provide for the payment of all bonds
and obligations outstanding secured by such project and for the payment of the
operating expenses and to apply the income and revenues in:conformiyy -with.this
ordinance and the provisions of the statute laws of Kentucky aforesaid. Reason-
able attorneys' fees and court cost: incurred by such Trustee in obtaining the
appointment of such receiver shall be a proper charge and shall be payable out of
the income and revenues of such project securing the bonds herein authorized.
The provisions herein as to the Trustee bringing suit upon behalf of such bond-
holders are in addition to any and all rights which any bondholder or bondholders
may have to bring suit upon their own behalf. The Trustee may, in its discretion,
693
or shall, upon request in writing of the holder or holders of a majority in ar:ount
of the outstanding bonds herein authorized, and upon being properly indemnified
against its cost and expenses, ask to join in any suit which may have already '
been brought upon behalf of any holder or holders of such bonds. In determining
whether or not a majority of the holders of the outstanding bonds have so re-
quested the Trustee to join in any suit, the bonds held by any person or persons
who have already brought a pending suit may be included in the amount of bonds
to determine whether the holders of a majority in amount of the outstanding
bonds have requested that the Trustee join in any such pending suit.
The Trustee shall have notduties except those specifically set out
in this ordinance and in such Contract of Lease and Rent.
The Trustee, in administering the trust herein created, shall be en-
titled to the advice of counsel and shall be protected for any acts taken in good
faith in reliance upon such advice. The Trustee shall not be_liable for any
action taken or omitted to be taken by it in good faith and believed by it to be
within the discretion or power conferred upon it by this ordinance, or be re-
spcnsible for the consequences of any oversight or error of judgment, and the
Trustee shall be answerable only for its own acts, receipts, neglects, and de-
faults and not for those of any person, firm or corporation employed and selec-
ted with reasonable care. The Trustee may require evidence satisfactory to it of
the ownership of bonds by the person making any request as to any bonds. The
Trustee shall be entitled to reasonable compensation for its services.
The Trustee may at any time and shall, at the request of the holders of
not less than seventy-five (75%) per cent of the face amount of the bonds herein
authorized then outstanding, resign the trust thereby created, by filing its
resignation with the City Clerk of the CiUj of Paducah, Kentucky, and notifying
the original purchaser or purchasers of the bonds herein authorized. Thereupon
the City shall designate a successor trustee, and if the City does not so desig-
nate a trustee within tan days, then the holders of a majority in amount cf such
bonds may designate a trustee, which in either of such events shall be an incor-
porated bank or trust company in the City of Louisville, Kentucky, having trust
powers and having a combined capital and surplus of over ;13000,000, and which is
willing to accept such trusteeship under the terms and conditions stated herein
and in such Contract of Lease and Rent.
Section 17. That the execution of the acceptance by Peoples First
I•dational Bank and Trust Company, Paducah, Kentucky, Trustee, at the end of this
ordinance shall be sufficient for it to becone a party hereto as Trustee, nur-
suant to the terms set out herein, without the execution of any other irstrmaent.
Section 12. That in connection with the sale of the bonds herein author-
ined the City Clerk is hereby authorized to furnish copies of ",'Otice of Bond Sale,
694
Further Information as to Sale of Bonds and Bid Form in substantially tiie form
as attached to the minutes of the meeting at which this ordinance is proposed for
adoption..
Section •19. That the Mayor and the City Clerk are hereby authorized
and directed to execute a Contract of Agreement between the City and the Lesseo,
in substantially the form marked Exhibit C filed in the office of such Clerk prior
to the presentation of this ordinance to the Board of Commissioners.
Section 20. If any section, paragraph, clause or provision of this
ordinance shall be ruled by any court of competent jurisdiction to be invalid,
the invalidity of such section, paraLraph, clause or provision shall not affect
any of the remaining provisions.
Section 21. All ordinances, resolutions and orders, or parts thereof,
in conflict with the provisions of this ordinance are, to the extent of such
conflict hereby repealed.
Adopted and approved August 3, 1965.
CITY OF PADUCA1i, KE�NfTUCCK7Y
payor
(Seal of City)
Attest:
City Clerk
Peoples First National Bank and Trust Company, Paducah, Kentucky,
hereby accepts its appointment as Trustee as set out in the foregoing ordi-
nance and arees to fulfill all of its duties as Trustee as set out therein.
(Seal of Bank)
PEOPLES FIRST NATIONAL BANK AND TRUST
COAUANY, Paducah, Kentucky
By
Title
P — �