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HomeMy WebLinkAboutOrdinances Book 15, Page 938, No Ordinance Number938/ v ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, PROVIDING FOR THE ISSUA14CE AND SALE OF TWO HUNDRED THOUSAND DOLLARS ($200,000) OF CITY OF PADUCAH SCHOOL BUILDING REVENUE BONDS, DATED MAY 1, 196 IN ACCORDANCE WITH SECTIONS 162.120 THROUGH 16.2.290 OF THE KENTUCKY REVISED STATUTES, TO PROVIDE FUNDS TO FINANCE THE COST, NOT OTHERWISE PROVIDED, OF THE CONSTRUCTION OF A NEW ADDITION TO THE KACKSON ELEMENTARY SCHOOL BUILDING; PROVIDING AND DETERMINING THE DUTY OF SAID CITY IN CONNECTION WITH THE OPERATION OF SAID SCHOOL BUILDING PROPERTY AND THE CREATION OF FUNDS SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS AND WHEN THEY MATURE AND THE CREATION OF AN ADEQUATE MAINTENANCE AND INTSURANCE FUND; AND AUTHORIZING THE ACCEPTANCE OF A DEED FROM THE BOARD OF EDUCATION OF THE PADUCAH INDEPENDENT SCHOOL DISTRICT TO THE CITY, 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 concerned that the City of Paducah, Kentucky, construct a new school building addition to the Jackson Elementary School upon the school property which has been con- veyed to the City by the Board of Education of the Paducah Independent School District, said property being hereinafter more particularly described, and that said proposed addition, together with the existing building to which it will he connected, 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 finance the cost, suppleme by funds of the Board of Education, to construct said new school building add' tion on said land, and the plans and specifications have heretofore been pre- pared and filed in the office of the City Clerk and have been or will be approved by said Board of Education and by the State Superintendent of Public Instruction, and contracts for said new building have been or will be shortly duly awarded, secured by 100% performance bond, executed by responsible, approved surety, and WHEREAS, said Board of Education has agreed to use and occupy the school buildinr, so to he constructed, together with the existing school build• ing to which it will he connected, pursuant to the terms of the Contract, Lease and Option hereinafter provided, which instrument has been examined and is now found and declared to he in conformity with statutory requirements, including FRS 1(,2.140; and in order to pav the cost, not otherwise provided, of constructi.n said new school huil.di.ng addi.ti.on, it is necessary that the City authorize, issue and Sell $7.00,000 or City or Paducah School Rui.l.ding Hevenue Bonds, dated Mov 1, 19(•(. (which is the amount of bonds which has heen rlted approv(,d by the K,ontuckv Dopartmcmt or Educntion) , all. pursuant. t.0 and ,Is perms teed t,v "octi.ona 1(,2.12() t1hroiii1i 162.290 of tho Kentaickv Revised .Stat.ute: , 939 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: 1. The Deed 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, havin? been examined, considered and approved by this Board of Commissioners (the execution of both of which instru- ments was approved by said Board by resolution duly adopted at a meeting held on April 21, 1966), the Chairman and the Secretary of said Board of Commis- sioners are authorized and empowered to execute said Contract, Lease and Option on behalf of the City of Paducah, hereinafter referred to as the City, and said instruments and the aforementioned resolution of the Board of Educatior 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 herebv authorized and ordered to be issued and sold the negotiable School Building Revenue Bonds of said City in the aggregate principal amount of $200,000, to be dated May 1, 1966, numbered 1 to 200, inclusive, and to consist of 200 bonds of the denomination of $1,000.00 each. Said $200,000 of bonds shall bear interest payable semi-annually, at a coupon rate or rates, not exceeding the legal maximum of six percent (60) 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 May first of the respective years as set out below. The numbering of said $200,000 of bonds and the maturities and principal and interest requirements of said bonds, based on a tentatively anticipated interest rate of four percent (4%) per annum, are as follows: Tentative Estimated Interest Maturity, Requirements Total May 1, Principal Numbering (4i) Requirements 1967 $15,000 1-15 $ 8,000 $ 23,000 1968 17,000 16-32 7,400 24,400 1969 18,000 33-50 6,720 24,720 1970 19,000 51-69 6,000 25,000 1971 20,000 70-89 5,240 25,240 1972 21,000 90-110 4,440 25,440 1973 20,000 111-130 3,600 23,600 1974 • 22,000 131-152 2,800 24,800 1975 24,000 153-176 1,920 25,920 1976 24,000 177-200 960 24,960 Said bonds shall bear interest from May 1, 1966, payable semi-annually on the first days of May and November of each year, both principal and interest being payable at the Citizens Bank and Trust Company, Paducah, Kentucky. Bonds numbered 90 to 200, inclusive, shall be subject to prior redemption, on any interest due date fallon7 on or after May 1, 1971, in accordance with the Provisions contained in the bond form set out below. 3. Said bonds, and the interesr coupons attached thereto, shall be executed on behalf of the City in the manner provided in the bond form 9LO set out below, 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 1966," 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, including the appurtenant thereon. 4. The aforesaid authorized issue of Bonds in the amount of $200,000, 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 KNOW ALL MEN BY THESE PRESENTS: That the City of Paducah, Kentucky, for value received, hereby promises to pay to the bearer the sum of ONE TOUNSAND DOLLARS ($1,000.00) on the first day of May, 19 , and to pay interest on said sum from the date hereof, at the rate of per annum, from May 1, 1966, payable semi-annually on May first and November first of each year until paid, beginning November 1, 1966, except as the pro- visions hereinafter set forth with respect to prior redemption may be and become applicable hereto, such interest as may accrue on and prior to the maturity of this bond to be paid upon presentation and surrender of the annexed interest coupons as the same severally mature, both principal and interest being payable, without deduction for exchange or collection charges, in lawful money of the United States of America, at the Citizens Bank and Trust Company, Paducah, Kentucky. This bond is part of an authorized issue of Two Hundred Thousand Dollars ($200,000) of bonds, authorized to be issued by said City pursuant to proceedings of the Board of Commissioners of said City to provide funds, supplemented by funds provided by the Board of Education of the Paducah Indpeendent School District, for the construction of a new school building and appurtueances, pursuant to and in full compliance with the Constitution and Statutes of Kentucky, oncluding Sections 162.120 through 162.290 of the Kentucky Revised Statutes. Bonds numbered 90 to 200, inclusive, maturing on and after May 1, 1972, of the series of which this Bond is one and as may be outstanding from time to time, are subject to redemption by said City prior to maturity, in whole or from time to time 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 falling on or after May 1, 1971, upon payment of face amount 941 plus all accrued interest evidenced by interest coupons maturing on and prior to the redemption date, plus a redemption premium in an amount equal to $20.00 per $1,000 bond if redeemed on or after May 1, 1971, and prior to final maturity. In the event that any of said bonds are called for redemption as aforesaid, Notice thereof identifying the bonds to be redeemed shall be given by publication at least'once not less than thirty (30) days prior to the redemption date in a neti�spaper of general circulation throughout Kentucky. All of said bonds as to which said City reserves and exercises the right of redemption and as to which Notice as aforesaid shall have been given, and for the retirement of which, upon the terms aforesaid, funds are duly provided, will cease to bear interest an the redemption date. Notice of such redemption may be waived with the written consent of the holder(s) of the hond(s) so called for redemption. This bond is payable solely from and secured by the 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 1966," and this bond does not constitute an indebtedness 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 Redemption Fund of 1966, and sufficient to main- tain a fund adequate to pa?, the cost of maintenance`and the insuranee 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 payment in full of -the principal of 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'buildi:ng and appur- tenances thereto financed by this bond and the issue of which it forms a part, and to the existing building (on said site) to which the proposed new school building is to be connected, and to 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 proceedings of the Board of Commissioners authorizing the issuance of 942 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 buildings and appurtenances which are subject to said statu- tory 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 the series of which it forms a part; and provided the necessary easements for ineress, ecress; sewage lines, septic tank lines and other utility lines, shall be deemed to exist and continue to exist for all school buildings, improvements and additions financed by this or other bonds. The revenue pledge securing this bond is secured by and subject to all of the provisions of this paragraph. This bond and the coupon or coupons attached hereto shall pass by delivery. This bond is exempt from taxation in Kentucky. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this bond, do exist, have happened and have been performed in due time, form and manner as required by law, and that the amount of thia bond, together with all other obligations of said City, does not exceed 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 remain outstanding, shall pefrorm all duties imposed upon it by the Constitutio and the Statutes of Kentucky, including the making and collection of reasonable and sufficient rentals payable by the Board of Education of the Paducah Inde- pendent School District, (required) for the use of such school building propert 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 an amount sufficient to pay the principal and interest of this bond and the issue of which it is a part as and when the same become due. IN WITNESS WHEREOF, said City of Paducah, in the Commonwealth of Kentucky, has caused this Bond to be executed on its behalf with the duly authorized reproduced facsimile signature of the Mayor of said City, and the reproduced facsimile of its corporate seal to be imprinted"hereof, attested by the manual sia_nature of its City Clerk, and the coupons hereto attached to be executed with the duly authorized reproduced facsimile signatures of said Mayor and said City Clerk, and this bond to he dated the first day of May, 1966. ATTEST City C erk CITY OF PADUCAH, Kentucky By (Facsimile Signature) Mayor 51 943 (FORM OF COUPON) BOND NO. 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 first day of , 19 The City of Paducah, Kentucky, will pay to the bearer the amount shown hereon, without deduction for exchange or collection charges, out of the"City of Paducah School Building Bond and Interest Redemption Fund of 196(." at the Citizens Bank and Trust Company, Paducah, Kentucky, being; six months, interest on its $1,000 School Building Revenue Bond, dated May 1, 1966, above numbered. CITY OF PADUCAH, Kentucky By (Facsimile Signature) ATTEST: (Facsimile Signature) City Clerk 5. From and after the completion of construction of the school building addition to the Jackson Elementary School, estimated to be on or about November 1, 1966, the new school building property, which, together with the existing building on the site herein described to which the propose new addition is to be attached, are sometimes hereinafter referred to as the "property," the "school property", or the "school building property," shall be leased, rented and occupied as a revenue producing undertaking on a fisca year basis, commencing on May first of each year and ending on May first of the following year, except that the first fiscal period shall be from Novemb r 1, 1966, the estimated completion date, to May 1, 1967, and on that basis th 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 1966" (hereinafter called the Bond Fund), to be deposited with the payee ban 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 purchaser representing accrued interest, plus an additional amount sufficient (when added to said collected accrued interest) to provide for all interest which will accrue and become due (on November 1, 1966) during the period required to complete the construction of the school building, and there shall also be set aside 9L4 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 $>200,000 of bonds are sold to bear interest at the rate of four percent (4%) 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 solely and only for the purpose of paying the interest on and principal of said bonds as and when they mature. In the event that said bonds are sold to hear an interest rate or rates other than at the tentatively anticipated interest rate of 4/ per annum, said figures shall be automatically adjusted according 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 hereby 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 May 1, 1966. The balance of the income and revenue remaining after the aforesaid payments into the Bond Fund have been made, shall be set aside into a main- tenance 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 to the maximum insurable value of the school buildings 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 equivalent 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 property 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 gears. All moneys held in said Bond Fund as aforesaid shall be deposited in the Citizens Bank and Trust Company, Paducah, Kentucky. Said Bank shall invest for the benefit of said Bond Fund such portion of said fund as is designated by the Board of Education, in United States Government obligations or in Certificates of Deposit of said Depository Bank, maturing as same will be needed for meeting interest and/or principal payments, and any of such funds (in excess of the amount insured by the FDIC) not invested in United States Government obligations, shall be earmarked and secured by a pledge of an equivalent amount of United States Government obligations or bonds of the issue herein authorized, or by a surety bond with rood corporate surety furnished by an approved surety company qualified to do business in Kentucky, 945 until expended. Interest earned on such investments shall be credited to the Bond Fund and applied to the purposes thereof. The annual payments so required shall be made in ample.amounts in such installments and at such times, at least two weeks before the maturities of the respective interest coupons, as needed to meet the requirements of said bonds and coupons. Said Bond Fund, as next hereinbefore provided, shall he used solely and only and is hereby pledged for the purpose of paying inter- est. on and principal of the bonds herein authorized and permitted to be issued, as the same become due. It is further agreedthat in case of buildings on said premises is damaged or 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 damaged property; that if such.proceeds are not expended by the City for restoration of said property at the earliest prac- tical date, then all of such insurance proceeds shall be used for the -pur- pose of redeeming said outstanding bonds, and said property shall then be and become the property of the Board of Education, in which case the City shall convey said property to said Board of Education, free and clear of all encumbrances. In the event of partial destruction 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 repairs to the buildings and appur- tenances located thereon, provided further that if, following such partial or complete destruction, 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 holders of the bonds herein authorized that it will faithfully and 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, in connection with said property, 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 resolution. 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 building property to said Board of Education (or its successor) for an extended period of years, as provided in the resolution adopted by said Board of Education on the day of April, 1866, 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 adequate rents for use of said property so that the cross 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 hinds and obligates itself not to sell, mortgage or in any manner dispose of said property except as specific- ally permitted and provided by this Ordinance, until all of the bonds herein authorized shall have been paid in full, both as to principal and interest. ?. For the further protection of the holders of the bonds herein authorized to be issued and the coupons attached thereto, a statutory mort- prage lien upon said school building property, and all improvements thereon, is granted and created by KRS 162.120-162.290, which said statutory mortgage lien is'hereby recognized'and declared to he valid and binding upon the City and on the property herein referred to and shall take effect immediately, such statutory mortgage lien bein)T restricted and subject to the terms and conditions set out in the form of said bonds, which appears in Section 4 hereof. Any holder of said 'bonds or of any of the coupons, may, either at law or in equity, by suit or other legal proceedings, enforce and compel the performance of all duties required by the Constitution and Statutes 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 per- form 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 of 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 required by said bonds, to maintain the maintenance and insurance fund herein provided for, and to apply the income and revenues in conformity with this Ordinance and with the laws of Kentucky aforesaid. 8. 'The bonds authorized to be issued hereunder shall not be entitled to priority, one over the other, regardless o.f the fact that they may be issued and delivered at different times. 947 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 hereof. 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 of Education, and will grant to any holder or holders of twenty-five percent of the bonds then outstanding, the right at all reason- able times to inspect the property and all records and accounts of the City relating thereto. 11. The school property mentioned herein as being subject to the statutory mortgage lien to secure the aforesaid issue of bonds is the Jackson Elementary School site located in the City of Paducah, McCracken County, Kentucky, and more particularly described as Follows: BEGINNING at the Southwest corner of the intersection of Twenty-first Street and Park Avenue; thence in a Southerly direction along the West line of Twenty-first Street 265.8 feet to the north line of a 15 ft, alley; thence in a Westerly direction along the North line of said 15 ft. alley 579.75 feet to a stake; thence in a Northerly direc- tion in a straight line 516.19 feet to a point on the South line of Park Avenue 416.2 feet West measured along the South line of Oark Avenue from the Southwest corner of the intersection of Park Avenue and Twenty-first Street; thence in an Easterly direction along the South line of Park Avenue 416.2 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 Inde- pendent School District by Deed dated April 21, 1966, and recorded in Deed Book , Page in the office of the County Clerk of McCracken County, Kentucky. 12. That said $200,000 of bonds, numbered 1 to 200, inclusive, shall be sold at public sale immediately after legal advertising, and the Mayor and City Clerk are hereby authorized and directed to make such adver- tising of a Notice od 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, not to exceed four (4) different rates, repeti- tion of a rate not to be considered a different rate, in multiples of 1/0 Of 1% or 1/10 of 1%, with no more than two percent (2%) differential between the hiFhest and the lowest interest rates bid, and not to exceed the legal 91, 8 Maxium of 6% per annum. That all bonds of the same maturity shall bear the same and a single interest coupon rate from the date thereof to maturity, and interest becoming due on any interest payment date may not be represented by more than one coupon on any bond. That the Board of Commissioners shall reserve the right to reject any and all bids and to waive any informality or irregularity in any bid. That bids shall be received in the office of the City Clerk until some day and hour when the Board of Commissioners is sched- uled to be in session at a rer.,ular, adjourned regular, or called, special session, as the Mayor may determine. That the Board of Commissioners shall, in a resolution accepting the successful bid, which may be adopted at its first reading, 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 ordinance or other proceedines 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 only on the property described herein. 13. Upon the sale and delivery of said bonds, the amount received from the purchaser as representing accrued interest thereon, plus an additional amount sufficient (when added to said collected accrued interest) to provide for all interest which will accrue and become due (on November 1, 1966) during the anticipated period required to complete the construction of the school building addition intended to be financed thereby, shall immediately be deposite 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. There shall next be reimbursed to the Board 6f Education of the Paducah Independent School District, out of such proceeds, the apgregate of any and all advancements as said Board of Education shall have found it necessary to expend, whether by direct repayment to said Board of Education for any of its own funds advanced or by direct repayment to a bank or banks of any interim financinp arranged by said Board of Education for said purpose, to pay .for architects' fees and/or amounts due to the contractors in connection with the construction of said school building addition in contemplation of the issuance o these bonds, upon presentation by said Board of Education to the City Treasurer of statements with regard thereto, in such reasonable detail and authenticated in such manner as the City Treasurer may reasonably require. Said City Treasurer is authorized to sign whatever checks, if any, are necessary to accomplish that purpose. The entire remaining proceeds shall thereafter be devoted exclusiVre ly to the payment of the costs of said new school building addition and appurtenances only upon the property described herein and according to the plans and specifications duly approved and filed as provided by KRS 162.160. 949 That pendinrr expenditure of the proceeds then remaining, such funds shallbe deposited, until needed for construction purposes, in a construction account at the Citizens Rank and Trust Company, Paducah, Kentucky, called the "City. of Paducah, Kentucky, School Construction Account." That there shall a he deposited in said Account whatever amounts shall be paid direct by the of Education to supplement the proceeds of said bonds to provide the total construction cost. Said Bank shall invest for the benefit of said Account such portion of said Account as is designated by the Board of Education, in United States novernment obligations or in Certificates of Deposit of said Depository Rank, maturing at such time or times'as to make such funds available when needed for construction purposes, and any of such funds (in excess of the amount insured by the FDIC) in said Account not invested in United States Government obligations shall 're earmarked -and secured by a pledge of an equivalent amount of United States Government obligations, or bonds of the issue herein authorized, until expended. Interest earned on such investments shall be credited to the Construction Account and applied to the purposes thereof.. Pending disbursements for the authorized purposes, the proceeds -of said bonds shall he subject to a .first and paramonnt lien and charge infavor of;the holder or holders of the bonds for their further security. The money in that account shall be expended by payments made to defray the costs of construction of the school building herein referred to, such payments to be made upon check drawn upon said Pank by the City Treasurer, countersigned by a representative of said Board of Education (to be designated-bv a written resolution of said Board of Education) and accompanied in'detachable form by a voucher in dupli- cate entitled "Authorization for Payment" signed by the Architests having supervision of the construction of said school building, insubstantially the following form: "Authorization for Payment It is hereby certified that is due the sum of $ , which represents an amount duly earned by and payable to said party, its successors or assigns, for labor, materials, work or ser- vices furnished under an existing contract with the City of Paducah, Kentucky, relating to the construction of a new addition to the Jackson Elementary School Building, and appurtenances, financed by the issuance of City of -Paducah School Building- Revenue Bonds, dated May 1, 1966,, or for other work or ser*ices in connection therewith. It is further certified that all'of said labor, materials, work and/or services were furnished in connection with said'new school building addition or in connection with improvements located at said Jackson Elementary School site. Dated PECK & ASSOCIATES, Paducah, Kentucky By Architect" 950 Said City Treasurer is herebv 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 .City Treasurer, without the necessity of any further meetings, authorizations, ordinances or resolutions 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 an FDIC Bank. Upon the payment of each such check, the authenticatinF voucher attached thereto, shall be retained.by the depository bank and surrendered to the City Treasurer at the time of the Final accounting as between the Treasurer and the Bank (with -the City Treasurer retaining the duplicate vouchers). After the*Archi- tects certify that the construction has been completed and paid for, any surplus then remaining in the Construction Account may be expended in con- nection with the improvement; -alteration or equipping of said Jackson Elementary School Building property.in the same manner, upon the Certification of said representative of the Board of Education, without any such voucher or Author- ization for.payment being required to be signed by said Architects, or such surplus may be transferred to the Bond Fund, at the joint direction of said representatives and the City Treasurer. 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 nto affect the validity of any bonds issued in accordance with this Ordinance. 15. The provisions of this Ordinance shall constitute a contract 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 chance in the provi- sions of this ordinance shall be -permitted while any of said bonds and coupons remain outstanding and unpaid, except as expressly authorized by this Ordinance. 16. The Board of. Commissioners hereby selects and designates Peck &. Associates, Registered Architects, of Paducah, Kentucky, as the Architects for said new school buildine addition, and to exercise supervision over the construction thereof, the Board of Education having indicated that said Architects are approved by said Board, as contemplated by KRS 162.160. 17. If any of the officers whose signatures appear on said bonds or coupons cease to be such officers before delivery of the bonds, their signatures shall nevertheless he valid for all purposes the same as if said 951 officers had remained in office until delivery, as provided in KRS 162.190. 18. That the previous action and the proposed action of said Board of Education and of this Board of Commissioners of the City in connection with the awarding of the Contracts for the construction of said new school building_ addition by said Board of Education and in connection with the adoption of said action of the Board of Education as the action of this Board of Commission and the interim financing arrangements for such construction made by said Board of Education, be and the same are hereby authorized, approved, ratified and confirmed by this Board of Commissioners, regardless of whether the chronolog- ical steps in connection with the employment of said Architects and in connec- tion with the award of said construction contracts, were in literal compliance with the provisions of KRS 162.120-290. 19. If any section, paragraph or clause of this Ordinance shall he held invalid, the invalidity of such section, paragraph or clause shall not affect any of the remaining provisions of the Ordinance. 20. All motions, ordinances, resolutions and parts thereof in conflict herewith are hereby repealed, and this Ordinance shall take effect and be in force at once. Mayor (ATTACH SEAL OF CITY HERE) Attest: ulty Clerk Introduced by the Board of Commissioners April 26, 1966. Passed by the Board of Commissioners May 5, 1966 Recorded by Sarah Thurman, City Clerk, May 5, 1966.