Loading...
HomeMy WebLinkAboutOrdinances Book 16, Page 479, Ordinance Number 68-2-21479j .. ORDINANCE NO. 68-2-21 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING THE ISSUANCE OF ONE MILLION .TWO HUNDRED SEVENTY THOUSAND DOLLARS ($1,270,000.00) PRINCIPAL AMOUNT OF CITY OF.PADUCAH VOTED PUBLIC FACILITIES BONDS FOR THE PURPOSE OF PROVIDING FUNDS TO ACQUIRE CERTAIN PROPERTY KNOWN AS FOREST HILLS; ORDERING AND PROVIDING FOR THE LEVYING OF AN ANNUAL TAX SUFFICIENT TO PAY THE INTEREST ON AND THE PRINCIPAL OF SAID BONDS, TO THE EXTENT THAT FUNDS ARE NOT OTHERWISE AVAILABLE TO MEET SUCH REQUIREMENTS; PRESCRIBING THE FORM OF SAID BONDS; PROVIDING FOR THE VALIDATION OF SAID BONDS BY THE McCRACKEN CIRCUIT COURT AS REQUIRED BY LAW; AND PROVIDING FOR THE PUBLIC SALE OF SAID BONDS. WHEREAS, by Section 1005 of Title X of the Housing Act of 1964 (P.L. 88-560), enacted by the Congress of the United States of America, the Congress of the United States of America authorized and directed the Federal Housing Commissioner to sell to the Paducah - McCracken Development Council, Inc., of Paducah, Kentucky, for a total price of $1,000,000.00, all right, title and interest of the United States in and to the housing project in Paducah known as Forest Hills, and WHEREAS, in contemplation of the conveyance by the Paducah - McCracken Development Council, Inc., of said project to the City of Paducah, Kentucky, the said City in the regular general election held on November 7, 1967 submitted to the voters of said City for approval a proposed general obligation bond issue in the amount of $1,270,000.00 for the purpose of providing funds to acquire said project, to finance improvements thereto, and to provide for the initial operation thereof, which bond issue was overwhelmingly ap- proved by a majority of substantially more than two-thirds of the voters who voted insaid election, and WHEREAS, the City of Paducah now desires to incur an in- debtedness in the principal sum of One Million Two Hundred Seventy Thousand ($1,270,000.00) Dollars through the issuance of its City of Paducah Voted Public Facilities Bonds, dated April 1, 1968, for the purpose of acquiring said certain property known as Forest Hills in said City (hereinafter sometimes referred to as the "Forest Hills Project" or "Project") to finance improvements thereto, 480 (including the razing of improvements thereon), and to provide for the initial operation thereof, and WHEREAS, the incurring of said indebtedness through the issuance of such Bonds in the amount of not exceeding $1,270,000.00 for such purpose was duly approved and authorized by the voters of said City atthe regular election held on November 7, 1967, as aforesaid, pursuant to Ordinance duly adopted by the Board of Com- missioners of said City on September 13, 1967, pursuant to Section 66.050 of the Kentucky Revised Statutes and Section 157 of the Ken- tucky Constitution, the amount of such proposed indebtedness being within the limits prescribed by Section 158 of the Kentucky Constitu- tion. NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, DOES ORDAIN AS FOLLOWS: SECTION 1. ELECTION VALIDITY HELD; FULL AMOUNT OF BONDS TO BE ISSUED. It is hereby found and declared that at an election held in the City of Paducah, Kentucky, on the regular election day, November 7, 1967, the question as to whether or not said City shall incur an indebtedness of not exceeding $1,270,000.00 by the issuance of Voted Bonds not exceeding that amount, for the purpose of financing the acquisition of the existing Forest Hills Project, financing improve- ments thereto (including the razing of any improvements thereon) and to provide for the initial operation thereof, was duly and properly submitted to the qualified voters of said City after compliance with all publication and other legal requirements necessary for the hold- ing of said election; that the number of votes cast in favor of in- curring said indebtedness was 4,617 votes YES to 1,630 votes NO; that more than two-thirds (2/3) of the qualified voters who voted on that proposition cast their votes in favor of the incurring of said indebtedness as required by Section 157 of the Constitution; that the City is able to issue the full -amount of said $1,270,000.00 of Bonds without exceeding the ten percent (101%) debt limit prescribed in Section 158 of the Kentucky Constitution; and that it is necessary that the full authorized $1,270,000.00 of Bonds be issued for the prescribed purposes. SECTION 2. AUTHORIZATION OF BONDS 481 That for the purpose of acquiring said Forest Hills Prpject, to finance improvements thereto (including the razing of any improvements thereof) and to provide for the initial operation thereof, Bonds entitled "City of Paduca Public Facilities Bonds" in the principal sum of $1,270,000.00 shall be issu and sold in accordance with the terms of this Ordinance, bearing interest at rate or rates not to exceed six percent (6%) per annum, the exact rate or rates of interest to be determined by sealed, competitive bids at the pub- lic, advertised sale, as hereinafter provided. SECTION 3. DETAILS OF.BONDS That said Bonds shall be dated April 1, 1968, and shall consist of two hundred fifty-four (254) Bonds of the denomination of Five Thousand ($5,000.00) Dollars each, numbered consecutively from 1 to 254, inclusive, bearing interest payable semi-annually from April 1, 1968, on April 1 and Oc 1 of each year, beginning October 1, 1968, both principal and interest being payable as The Paducah Bank, Inc., Paducah, Kentucky. Said Bonds shall mature serially on October first in each of the respective years as hereinafter provided. The numbering, maturities,and total principal and interest requirements, based on a tentatively anticipated interest rate of five and one-half percent (5�%) per annum, computed on a fiscal year basis ending on October first in each of the respective years of maturity, are as follows: Maturity October 1 Principal 1968 $ --- 1969 25,000 1970 30,000 1971 30,000 1972 30,000 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1980 1991 1992 35,000 35,000 35,000 40,000 40,000 45,000 45,000 50,000 50,000 55,000 55,000 60,000 65,000 65,000 70,000 75,000 80,000 80,000 85,000 90,000 Numbering 1-5 6-11 12-17 18-23 24-30 31,37 38-44 45-52 53-60 61 -69 70-78 79-88 89-98 99-109 110-120 121-132 133-145 146-158 159-172 173-187 188-203 204-219 220-236 237-254 Tentative Estimated Total Estimated Interest Principal and Requirements Interest (5 -/,) Requirements $ 34,925 $ 34,925 69,850 94,850 68,475 98,475 66,825 96,825 65,175 95,175 63,525 98,525 61,600 96,600 59,675 94,675 57,750 97,750 55,550 95,550 53,350 98,350 50,875 95,875 48,400 98,400 45,650 95,650 42,900 97,900 39,875 94,875 36,850 96,850 33,550 98,550 29,975 94,975 26,400 96,400 22,550 97,550 18,425 98,425 14,025 94.025 9,625 94,625 4,950 94,950 sober 482 SECTION 4. BONDS SUBJECT TO PRIOR REDEMPTION Bonds of said authorized issue numbered 70 through 254, in- clusive, maturing on or after October 11 1979, shall be subject to prior redemption in whole or in part on or after October 1, 1978, in accordance with the provisions contained in the Bond Form set out in Section 6 hereof. SECTION 5. EXECUTION OF BONDS; REPLACEMENT OF LOST OR MUTILATED BONDS Said Bonds shall be executed on behalf of said City with the reproduced facsimile signature of the Mayor, and the reproduced facsimile of the Corporate Seal of the City shall be imprinted thereon, attested by the manual signature of the City Clerk, and the interest coupons attached to said Bonds shall be executed with the reporduced facsimile signatures of said Mayor and said City Clerk, which officials, by the execution of appropriate certifica- tions shall adopt as and for their own proper signatures their said respective facsimile signatures. If any officer whose signature, or a facsimile of whose signature, appears on any Bond or coupon, shall cease to be such officer prior to the delivery of the Bonds, said signature or facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. The signature, or a facsimile reproduction of a signature, of any such officer who may be in office at the time of delivery of any Bond, shall be valid and suffi- cient for all purposes, notwithstanding the fact that such officer may not have held such office as of the date of the Bonds. In case any Bond issued hereunder shall become mutilated or be destroyed or lost, the City shall, if not then prohibited by law, cause to be executed and delivered a new Bond of like date, number, maturity and tenor, in exchange and substitution for and upon cancellation of such mutilated Bond and its interest coupons, or in lieu of and in substitution for such Bond and its coupons destroyed or lost, upon the holder or owner paying the reasonable expenses and charges in connection therewith, and in the case of a Bond destroyed or lost, his filing with the City evidence satis- factory to said City that such Bond and coupons were destroyed or lost and of his ownership thereof, and furnishing indemnity satis- factory to said City. 483 SECTION 6. BOND FORM. The aforesaid authorized issue of $1,270,000.00 of Bonds and coupons, shall be in substantially the following form: UNITED STATES OF AMERICA COMMONWEALTH OF KENTUCKY COUNTY OF McCRACKEN CITY OF PADUCAH VOTED PUBLIC FACILITIES BOND NO. $5,000.00 KNOW ALL MEN BY THESE PRESENTS: That the City of Paducah, McCracken County, Kentucky, for value received, hereby promises to pay to the bearer the sum of FIVE THOUSAND DOLLARS ($5,000.00 on the first day of October, 19 and to pay interest on said sum from the date hereof, at the rate of per annum, payable semi-annually on April first and October first of each year until paid, beginning October 1, 1968, except as the provisions hereinafter set forth with respect to prior redemption may be and become applicable hereto, such in- terest 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 main office of The Paducah Bank, Inc., Paducah, Kentucky. All of the property of said City subject to ad valorem taxation for City purposes is subject to the levy of taxes for the payment of the principal of and interest on this Bond and the issue of which it is a part, without limit as to maximum rate or amount, and the full faith, credit and resources of said City are irrevocably pledged for the payment of such principal and interest. This Bond is one of a series of Two Hundred Fifty -Four (254) Bonds (said Bonds and the appertaining interest coupons be- ing hereinafter sometimes collectively referred to as "the Bonds" or as "these Bonds") of like tenor and effect (except for numbers, maturities and interest rates), aggregating the principal sum of $1,270,000.00, authorized by an Ordinance duly adopted by the Board of Commissioners of the City of Paducah, Kentucky, and is- sued for the purpose of acquiring certain property known as Forest Hills, to finance improvements thereto (including the 484 razing of any improvements thereon) and to provide for the initial operation thereof, all being done pursuant to the affirmative approval of more than two-thirds of the votes cast by the voters of said City at a regular election duly held on November 7, 1967, in conformity with Section 66.050 of the Ken- tucky Revised Statutes, and Section 157 of the Kentucky Constitu- tion. The incurring of the indebtedness evidenced by these Bonds has been approved by judgment of the McCracken Circuit Court, Mc- Cracken County, Kentucky, as required by Sections 66.210-220 of the Kentucky Revised Statutes. Bonds numbered 70 through 254, inclusive, maturing on or after October 1, 1979, of these Bonds as may be outstanding from time to time, are subject to redemption by said City prior to Imaturity, 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 October 1, 1978, upon payment of face amount plus all ac- crued interest evidenced by interest coupons maturing on and prior to the redemption date, plus a redemption premium expressed in terms of a percentage of the face amount of the respective Bonds so called for redemption, as follows: 3/ if redeemed on or after October 1, 1978 and on or before April 1, 1983; 2% if redeemed thereafter and on or before April 1, 1988; and 1% if redeemed thereafter 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 days prior to the redemption date, in a newspaper of general cir- culation throughout Kentucky and in a financial publication or journal of general circulation among purchasers of bond issues published in New York City, New York. All of said Bonds as to which said City reserves and exer- cises the right of redemption as to which notice as aforesaid shall have been given for the retirement of which, upon the terms aforesaid, funds are duly provided, will cease to bear interest on the redemption date. Notice of such redemption may be waived with the written consent of the holder(s) of the Bond(5) so called 485 for redemption. This Bond is exempt from taxation in the Commonwealth of 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 requdred by law; that the amount of this Bond, together with all other obligations of said City, does not exceed any limit pre- scribed by the Constitution or statutes of the Commonwealth of Kentucky; that the issuance of this Bond was duly approved by a final decision of the Circuit Court of McCracken County, Kentucky, as required by Section 66.210-220 of the Kentucky Revised Statutes; that provision has been made for the levy and collection of an annual tax without limit as to maximum rate or amount, sufficient (to the extent that funds are not otherwise available, provided and applied) to pay the principal of and interest on the Bonds and coupons as same become due and payable; that provision has been made for the segregation and pledging of the proceeds of said tax (to the extent needed) for the purpose; and that the full faith, credit, revenues and resources of said City are hereby irrevocably pledged for the prompt payment of the Bonds and interest coupons as same severally mature from time to time. IN TESTIMONY WHEREOF, said City of Paducah, in the Common- wealth of Kentucky, has caused this Bond to be executed on its be- half with the duly authorized reproduced facsimile signature of the Mayor of said City and the reproduced facsimile of its cor- porate seal to be imprinted hereon, attested by the majual signa- ture 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 be dated the first day of April, 1968. CITY OF PADUCAH, KENTUCKY By (Facsimile signature) ATTEST: Mayor City Clerk (Facsimile Seal) (FORM OF COUPON) BOND NO. COUPON NO. $ On the first day of 19 Unless the Bonds to which this coupon is attached is redeem- able and accordingly shall have been theretofore called for prior redemption, -arid payment of the redemption price duly made or pro- vided"for, The City of Paducah, Kentucky, will pay to the bearer the amount shown hereon, without deduction foi exchange -or collection charges, at the main office of The Paducah Bank, Inc., Paducah, Kentucky, being six months' interest on its $5,000 Voted Public Facilities Bond, dated April 1, 1968, above numbered. CITY OF PADUCAH, KENTUCKY By (Facsimile Signature) Mayor ATTEST' (Facsimile Sicsnature) City Clerk SECTION 7. VALIDATION OF BONDS. It being mandatorily required by Sections 66.210 and 66.220 of the Kentucky Revised Statutes that an action be filed in the McCracken Circuit Court for the purpose of seeking an approving Judgment of the Court, holding that the indebtedness evidenced by said Bonds has been properly submitted to and approved by the voters of the City and may properly and validly be incurred within constitutional limits, and a substantial amount of time having elapsed since said election without anyone having come forward and instituted an action wherein such mandatory requirement might be met, it is obviously necessary that the City of Paducah initi- ate such an action. Accordingly, the Mayor and other City of- ficials are hereby authorized to file such action in said Court. Such action shall be a Declaratory Judgment suit instituted by the City of Paducah as Plaintiff, and naming as defendant one or more citizens and taxpayers of said City whom the Court shall be requested to designate as class representatives of, for and on behalf of themselves and of, for and on behalf of all other citi- zens and taxpayers similarly situated. The court costs and ex- penses of such suit shall be borne by the City of Paducah. 486 487 G� SECTION 8. SALE OF BONDS. When, as and if an approving Judgment of said McCracken Cir- cuit Court is entered in said action as required by law, approving and upholding the validity of the Bonds herein authorized under KRS 66.210-220, said Bonds shall then be offered for sale at a public sale after legal advertising, and the Mayor and/or the City Clerk are hereby authorized and directed at the proper time to make appropriate advertising of said sale and to conduct same in accord- ance with the terms herein specified. That said Mayor and/or City Clerk are authorized to sign the appropriate form of Notice soliciting purchase bids and -to -cause the same to be published in conformity with Chapter 424 of the Kentucky Revised Statutes, at least one time, not less than seven days nor more than twenty- one days prior to the designated sale date (a) in THE PADUCAH SUN -DEMOCRAT, which is the newspaper having the largest bona fide circulation which is published in the City of Paducah, Kentucky, and is the newspaper meeting the requirements of KRS 424.110=120 for publication in which official publications of the City of Paducah are required to be published, (b) in THE COURIER -JOURNAL, a daily newspaper published in Louisville, Kentucky, and having general circulation throughout the Common- wealth of Kentucky, and (c) in THE BOND BUYER, a financial journal published in New York City, New York, and of general circulation among bond issue purchasers. The published Notice shall be in the customary form or forms, shall identify the Bonds offered for sale, shall desig- nate a day and hour for the receiving and public opening and consideration of purchase bids, which time will be the time of a regular, adjourned regular, or called, special meeting of the Board of Commissioners as may be determined by the Board or by the Mayor. That bidders shall be required to bid at least face amount $1,270,000.00) plus accrued interest by sealed, competi- tive bids, must name an interest rate or rates in multiples of 1/8 of 1% or 1/10 of 1%, not to exceed six percent (691) per an- num, with no more than 2% differential between the highest and the lowest interest rates. That all Bonds of the same maturity shall bear the same and a single interest coupon rate from the 488 date thereof to maturity, and interest becoming due on any in- terest payment date may not be represented by more than one coupon on any Bond. That the Board of Commissioners shall re- serve the right to reject any and all bids and to waive any informalities or irregularities in any bid. That said bids shall be received in the office of the City Clerk until some day and hour when the Board of Commissioners is scheduled to be in session at a regular, adjourned regular; or called, special session. That the Board of Commissioners shall, in the Resolu- tion accepting the successful bid, determine the exact rate or rates of interest which said Bonds shall bear, and the in- terest rate or rates on said Bonds shall then be automatically fixed at the rate or rates set out in said successful bid and accepted in said Resolution, without the necessity of any fur- ther action by the Board of Commissioners fixing said rate or rates. That bidders shall be required to deposit a good faith check by cashier's check or certified check, in the minimum amount of two percent (2/) of the face amount of the Bonds offered for sale. The Mayor and City Clerk are additionally authorized, in connection with such sale, to sign, cause to be reproduced in memeo- graphed, printed or other multiple copy form, and to supply any in- terested party upon request, the Official Terms and Conditions of Sale of Bonds, giving a more detailed description of the Bonds and setting forth terms and conditions calculated to bring about uni- formity in bidding. Standard Bid Forms shall be required. Suggested forms of a "Notice of Bond Sale," the "Of- ficial Terms and Conditions of Sale of Bonds," and the "Bid Form," having been prepared and submitted by Bond Counsel, and the same having been examined by the Board of Commissioners and found to be in order, the same are hereby approved and may be used for the purpose of this Section.. SECTION 9. DISPOSITION OF PROCEEDS OF BONDS., That upon the sale, delivery of and payment for said $1,270,000.00 of Bonds by the successful purchaser, the proceeds of said Bonds shall forthwith and simultaneously be applied as follows: 489 (a) There shall be taken out of the proceeds of said sale and deposited in the Sinking Fund hereinafter created, an amount equal to all accrued interest collected from the success- ful'purchaser of said Bonds, representing accrued interest from April 1, 1968 to the date of delivery of the Bonds. (b) There shall be paid out of such proceeds the fee to which Stein Bros. & Boyce, Inc,. Starks Building, Louisville, Kentucky 40202, is en- titled under its Fiscal Agency Agreement with the City, for its services as Fiscal Agent in connection with the issuance of said Bonds.: (c) The entire remaining proceeds of the sale of said, Bonds shall be devoted solely toward the costs:of acquiring said Forest Hills Project, financ- ing improvements thereto (including the razing of any improvements thereon) and to provide for the initial operation thereof. Pending expenditure of such remaining proceeds, same shall be deposited and maintained by the City Treasurer as a sole and separate entity from all other public funds of the City of Paducah in an account which shall be designated as the "Forest Hills Acquisition, Improvement and Operation Account", and all moneys in said fund are hereby set aside, earmarked and pledged exclusively for the purposes authorized by the voters of said City as hereinabove recited. The sum of One Million Dollars ($1,000,000.00) shall be taken from the proceeds of the sale of said Bonds and applied immediately toward the purchase price of said Forest Hills Project, under such appropriate closing procedure as shall be deter- mined by the Mayor, with the advice and assistance of Corporation Counsel. 490 (d) It isthe intention of the City -that said Forest Hills Project shall be leased by the City to a non- profit tax-exempt corporation organized or to be organized and known as "Forest Hills Public Project Corporation", which corporation shall have full and absolute power and discretion to manage the Project. Upon the execution of the contemplated --lease the entire proceeds of the sale of said bonds remain- ing after the payment of:the items referred -to in subparagraphs (a), (b) and (c) above and the pay- ment of incidental expenses incurred in connection with said purchase, including expenses incurred in connection with organizing the aforementioned nonprofit tax-exempt corporation, the execution of the lease, etc., shall be paid over immediately to said corporation to be used solely, as required, by it for the cost of financing improvements thereto (including the razing of any improvements thereon), and for the maintenance,.expenses and operation of said Project. So much of said amount as shall have been paid over to said corporation as, in the discretion of said corporation; -constitutes surplus shall'be secured and/or invested and rein- vested in accordance with the provisions of KRS 66.480. SECTION 10'. SINKING FUND. That there shall be and there is hereby created an account to be known as "City o£:Paducah Voted Public Facilities (Forest Hills) Bonds Sinking Fund of 1968" (hereinafter called the "Sinking Fund"), to be deposited with The Paducah Bank, -Inc.; Paducah, Kentucky. That for the purpose of meeting the principal and interest requirements on said Bonds .(except to -the extent funds are herein- after otherwise available or provided), there shall be and:is here - be ordered to be levied upon all property within said -city, which' is now or may hereafter be subject to taxation for City purposes, a direct annual tax, in addition to all other taxes, sufficient in 491 amount to pay the principal of and interest on said Bonds as same become due, this tax being levied as required by Section 159 of the Constitution of the Commonwealth of Kentucky and pertinent provisions of the Kentucky Revised Statutes. That the Board of Commissioners of the City, which is the legal taxing authority of the City, shall annually compute the rate of said tax , in and to the extent that same is required to be levied and if and to the extent that funds are not otherwise available or provided, and said tax shall be levied and collected at the same time as other municipal property taxes and shall be.in addition to other prop- erty taxes. The proceeds from said tax shall be kept separately in said Sinking Fund and applied solely for the purpose for which same is levied, as required by said Section 159 of the Kentucky Constitution. That the amounts to be so provided shall be the requirements set out in the table in Section 3 of this Ordinance if said Bonds are sold to bear interest at the rate of five and one-half percent (5-1/2%) per annum; provided that if said Bonds are sold to bear interest at a rate or rates other than at said tentatively antici- pated interest rate of 5-1/2% per annum, said figures shall automati- cally be increased or reduced accordingly to such sums as will ac- complish the purposes set forth in this section. Notwithstanding the fact that the City is mandatorily re- quired by Section 159 of the Kentucky Constitution to levy a tax upon all taxable property in the City for amortization of the Bonds, such levys shall be suspended in any year in which there is deposited from another source (viz., the revenue derived from said Project) into the Sinking Fund, such funds as would ordi- narily be generated by the mandatory tax levy required by said Section 159. The City hereby declares, as stated in Section 9 (d) above, its intention and determination that said Project shall be leased by the City to a nonprofit tax-exempt corporation for a term until all of said bonds and coupons are.paid in full•,. or until sufficient funds are accumulated for the payment of same, which corporation shall have full and absolute power and.discre- tion to manage the Project to the end that adequate income and revenues may be generated by the Project so that the levying of 492 ad valorem taxes for amortization of said Bonds will be completely unnecessary. Said lease shall provide that 'after'paymerit for the cost of improvements thereto, (including the razing of any improvements thereon), and the cost of maintenance,: operation and other expenses, and in -lieu -of tax payments to the City of Paducah -and -McCracken County, all net revenues of said Project then remaining in each year shall be paid into said Sinking Fund and shall be, and are here- by, pledged for the sole purpose of paying the principal and interest on the bonds herein authorized and to accumulate at the earliest possible time a reserve (the "Sinking Fund Re- serve") sufficient to redeem all:of said bonds in accordance with the provisions of Section 4 hereof. No payments shall be made by the City from tax -revenues into said Sinking Fund whenever and so long as the amount there- in is equal to not less than the maximum annual amount required for the payment of such principal and interest requirements on all the outstanding bonds during any fiscal year (April l of any year to March 31 of the succeeding year) thereafter. SECTION 11. IMPROPER ALLOCATION OR MISAPPLICATION OF PROCEEDS DOES NOT AFFECT VALIDITY OF BONDS. If, for any reason, the funds obtained by the sale of said Bond Issue are not properly allocated, or if there is any misap- plication of the proceeds, such improper allocation or misapplica- tion shall not affect the validity of any Bonds issued in accord- ance herewith. SECTION 12. ORDINANCE CONTRACTUAL WITH BONDHOLDERS That 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 change in the provisions of this Ordinance shall be permitted while any of said Bonds and coupons remain outstanding and unpaid other than to cure any defects or to eliminate any inconsistencies, which changes in any event shall not adverse- ly affect the rights of bondholders. SECTION 13. SEVERABILITY CLAUSE. That if any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of same shall not affect the validity of any of the remaining provisions hereof., SECTION 14. PROVISIONS IN CONFLICT REPEALED. That all motions; resolutions or ordinances or parts thereof in conflict herewith.be, and the same.are;-hereby amended or repealed to the extent of such conflict. SECTION 15. EFFECTIVENESS OF ORDINANCE: This Ordinance shall be introduced at a meeting of the Board of Commissioners and remain on file for at least one week for public inspection in the completed form in which.it-shall be put at the time of passage, and if adopted shall be -in full force and effect ten days.thereafter. 41 Ma yor Introduced by the Board of Commissioners February 13, 1968 Passed by the Board of Commissioners February 21, 1968 Recorded by Sarah Thurman, City Clerk, February 21, 1968.