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HomeMy WebLinkAboutOrdinances Book 13, Page 33, No Ordinance Number33 ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, PROVIDING FOR THE ISSUANCE AND SALE OF SRECIAL OBLIGATION BONDS (SCHOOL BUILDING REVENUE BONDS) IN ACCORDANCE WITH SECTIONS 162.120 THROUGH 162.290 OF THE KENTUCKY REVISED STATUTES TO PROVIDE FUNDS TO FINANCE THE CONSTRUCTION OF A NEW PADUCAH HIGH SCHOOL BUILDING, PROVIDING AND DETERMINING THE DUTY OF SAID CITY IN CONNECTION WITH THE OPERATION OF THE SCHOOL BUILDING AND THE CREATION OF FUNDS SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SAID REVENUE BONDS AS AND WHEN THEY MATURE AND THE CREATION OF AN ADEQUATE MAINTENAN AND INSURANCE FUND, AND AUTHORIZING THE ACCEPTANCE OF A DEED FROM THE BOARD OF EDUCATION OF THE PADUCAH INDEPENDENT SCHOOL DISTRICT AND THE EXECUTION OF A LEASE OF SUCH FOREGOING BUILDING TO SAID BOARD OF EDUCATION, IN THE FORM OF a contract, lease and option. . WHEREAS, the Board of Education of the Paducah Independent School District and the Board of Commissioners of the City of Paducah desire to finance the construction of a new Paducah High School Building through the issuance of School Building Revemue Bonds pursuant to the provisions of KRS 162.120-300, and WHEREAS, pursuant to said procedure the Board of Commissioners of the City of Paducah has duly awarded and executed the contract for the con- struction of said school building for a price of 4.x'2,760,000, the performance of which contract has been secured by the execution of full performance bond by responsible, approved surety, and WHEREAS, the total costs in connection with said construction, for which funds are needed, exclusive of interest requirements for two interest coupon periods during construction, is as follows: General contract price $2,760,000 Unpaid balance of architect and engineerts fees (approximately) 55,000 Financing fees 10,625 Total Present Requirements $2,8253625 WHEREAS, the plans and specifications for the construction of said building and the financial and educational program in connection with the issu- ance of school building revenue bonds to finance the cost of said building have been approved by the Department of Education of the State of Kentucky, and the plans and specifications have been filed in the office of the City Clerk as required by KISS 162.160, and WHEREAS, the amount of bonds which has been approved by the State Department of Education and which it is desired that the Board of Commissioners authorize, issue and sell is 12,750,000, to be sold at not less than face amount, and 34 WHEREAS, it is desired that interest requirements on said bonds during the construction period of approximately sixteen (16) months (cover- ing the coupons falling due on October 1, 1954 and April 1, 1955) be provided for out of the proceeds of the sale of the bonds, and WHEREAS, the Board of Education of the District has pledged to transfer from its general building fund into the construction fund to supple- ment the proceeds of the sale of the bonds the sum of $?75,625 and has pledged a sufficient amount of the proceeds received in 1954 from the annual special school building tax to be deposited in said construction fund to bring the i total amount in said construction fund to an amount sufficient to pay the contract price for the construction of the building plus the unpaid balance of the architect and engineering fees and the financing fees, so that the total I cost of the building and unpaid expenses and interest requirements in connection i therewith as stated above will, when the $2;750,000 of bonds are issued and delivered, be provided as follows: Minimum proceeds of sale of bonds $2,7509000 c..Less: (1) interest during construction covering two coupon periods to be set aside out of sale proceeds (based on anticipated interest rate of 3-3/4%) 103,125 Net Proceeds of bonds after capitalizing interest requirements during construction 2,6463875 Plus: Amount pledged to the Construction Fund from the General Building Fund of the Board of Education 75,625 Amount pledged to the Construction Fund fron the .proceeds of the 1954 Special School Tax by the Board of Education (to be adjusted if necessary to provide exact requirements if interest rate on bonds is fixed at other than 3-3/40 103,125 Total amount available for requirements 2e ,.825 625 WHEREAS, the Board of Education has previously executed a deed transferring title to the site of said new High School Building to the City, which deed is dated February 20, 1954, and recorded in Deed Book 346, page 289, in the McCracken County Clerk's office, which deed was duly authorized by resolution of the Board of Education adopted at a meeting of said Board held on January 4, 1954, and ratified by resolution of said Board adopted at a meeting held on February 24, 1954, and , WHEREAS, the Board has agreed to use and occupy the proposed new school building so to be constructed from the estimated date of completion of said new school building on August 1, 1955, pursuant to the terms of the Contract, Lease and Option hereinafter referred to, which instrument has been examined and is not found and declared to be in conformity with statutory requirements, and in order to finance the funds necessary to be provided for said new school building, it is necessary that the city authorize, issue and Oil sell $2,750,000 of City of Paducah School Building Revenue Bonds, dated April 1, 1954, all pursuant to and as permitted by Sections 162.120 through 162.290 of the Kentucky Revised Statutes, NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF C014MISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: .1. The deed approved by the Board of Education of the Paducah Independent School District of McCracken County, hereinafter referred to as the Board, a copy of which deed is attached hereto, is hereby approved.and accepted by the City of Paducah, and the Contract, Lease and Option (copy of which is attachrd hereto) tendered by said Board, having been examined, considered and approved, the Board and City Clerk are authorized and empowered to execute said instrument on behalf of the City of Paducah, hereinafter referred to as the City. 2. That for the purpose recited in the preamble hereto there shall be and there are hereby authorized and ordered to be issued and sold the mego- tiable School Building Revenue Bonds of said City in the aggregate principal amount of $2,750,000, to be dated April 1, 1954, numbered 1 to 2,750, inclusive, and to consist of two thousand seven hundred and fifty bonds of the denomina- tion of $1,000.00 each. Said $2,750,000 of bonds shall bear interest payable semiannually, at a coupon rate or rates, not exceeding the legal maximum of 6% per annum, as maybe fixed by supplemental resolution as a result of the advertised.sale of said bonds and shall mature serially and in numerical order on October first of the respective years as set out below: The numbering of said bonds, maturities and principal and interest requirements of said $2,750,000 of bonds based on a tentatively anticipated interest rate of 3-3/4% per annum are as follows: Maturity October 1st Numbering Principal Interest (3-3/4fo Total Requirements 19546 1955 1-82 months $82,000 51,562.50 103,125.00 x'51,562.50 185,125.00 1956 83-168 167-257 86 000 89,600 100,050.00 96,825.00 186,050-00 185,825.00 1957 1958 258L350 1- 6 93,000 96 000 93,487.50 90,000.00 186,487.50 186,000.00 1960 447 546 100,000 86,400-00 82,650.00 186,400.00 186,650.00 1962 547-650 651-758 10 000 10$,000 7$,750.00 186,750.00 1963 1964 759-870 871-986 112,000 116 00070,500.00 74,700.00 186,700.00 186,500-00 1965 1966 987-1106 1106-1230 120,600 124,000 66,150.00 61,650.00 1$6,150.00 185,650.00 1967 1968 1231-1360 1361-1494 130,000 134,0100 57,000.00 52,125.00 187,000.00 186,125.00 187,100.00 1969 1970 1 95-1631� 1635-177$ 140,000 144,000 47,100.00 41,850.00 185,850.00 1971 1972 1778-1926 1927-2080 148,000 154 000 36,450.00 30,900.00 184 450 00 184,900.00 1973 1974 2081-2240 2241-2404 160,600 164,000 25,125.00 19,125.00 185,125.00 183,125.00 1975 1976 2405-2574 2575-2750 170,000 176,000 12,975.00 6,600.00 182,975.00 182,600.00 36 Said bonds shall bear interest from April 1, 1954, payable semi- annually on the first days of April and October of each year, both principal and interest being payable at the Citizens Bank 8i Trust Company, Paducah, Kentucky, subject to prior redemption only in inverse numerical order (less than all of a single maturity to be selected by lot) in whole or in part, at the City's option on any interest due date falling on or after October 1, 1959, upon notice of such prior redemption being given by publication at least once at least 94 thirty days prior to the date stated for redemption in a newspaper of general circulation in Kentucky, and upon payment of face amount plus accrued interest plus additional interest equal to 3i% of face value if the stated date, for prior redemption is on or before October 1, 1961, and on the same terms if redeemed thereafter except that the additional interest shall then be 22% I if on or before October 1, 1965, 2%o if thereafter and on or before October 1 1969, and 1% if thereafter. 3. Said bonds shall be signed by the Mayor of the City, sealed with the corporate seal of said City, andattested by the City Clerk, and the interest coupons attached to said bonds shall be executed with the facsimile signatures of said Mayor and City Clerk, and said bonds, together with the interest thereon, shall be payable only out of the "City of Paducah School Building Bond and Interest Redemption Fund of 1954", hereinafter created, and shall be a valid claim of the holders thereof solely against said fund and the income and revenues of the school property herein referred to, including all buildings and appurtenances thereon. 4. The aforesaid authorized issue of bonds in the amount of $2,750,000 and coupoms shall be in substantially the following form: UNITED STATES OF AMERICA COMMOM EALTH OF KENTUCKY COUNTY OF McCRACKEN CITY OF PADUCAH SCHOOL BUILDING REVENUE BOND No $ 1, 000.00 The City of Paducah, Kentucky, for value received hereby promises to pay to the bearer the sum of One Thousand Dollars ($1,000.00) on the first day of October 19 , and to pay interest thereon at the rate of _°fo per annum from April 1,,1954, payable semiannually on April first and October first w f each year, upon presentation and surrender of the annexed interest coupons as they severally mature, at the Citizens Bank & Trust Company, Paducah, Kentucky. 94 The bonds of the series of which this bond is one are subject to prior redemption only in inverse numerical order (less than all of a single maturity to be selected -by lot), in whole or in part, at the City's option, on any interest due date falling on or after October 1, 1959, upon notice of such prior redemption being given by publication at least once at least thirty days prior to the date stated for redemption in a newspaper of general circulation in Kentucky, and upon payment of face amount plus accrued interest plus additi 37 interest equal to 32f of face value if the stated date for prior redemption is on or before October 1, 1961, and on the same terms if thereafter except that the additional interest shall then be 22% if on or before October 1, 1965, 2% if redeemed thereafter and on or before October 1, 1969, and 1% if thereafter. This bond is part on an authorized issue of 14,750,000 of bonds, authorized to be issued by said City pursuant to.an ordinance or ordinances of the Board of Commissioners of said City to provide funds for the construction of a new high school building and Appurtenances pursuant to and in full compliance with the Constitution and statutes of Kentucky, including Sections 162.120 through 162.290 of the Kentucky Revised Statutes. This bond is payable solely from and secured by pledge of a fixed amount of the gross income and revenues to be derived from the leasing of certain school property, which have been set aside as a special fund and pledged for that purpose and identified as "City of, Paducah School Building Bond and Interest Redemption Fund of 1954", and this bond does not constitute an indebtedness of the City of Paducah, Kentucky, within the meaning of any consti- tutional provision or limitation. The City of Paducah, Kentucky, covenants that it will fix and maintain rentals and charges for the use of saidproperty including all improve- ments thereon adequate to maintain said City of Paducah school Building Bond and Interest Aedemption Fund of 1954,.and sufficient to maintain a fund adequate to pay the cost of maintenance and•the insurance on the property. A statutory mortgage lien which is hereby recognized as valid and binding on said school building property is hereby created and granted in favor of the holder or holders of this bond and the series of which it forms a part and in favor of the holder or holders of coupons appertaining to said bonds, hereinafter collectively referred to as the First Bond Issue, and said school building property and any appurtenances and additions thereto, together with equipment therein and such easements and rights of way for ingress, egress and the rendering of .services thereto as may be necessary for the proper use and maintenance of the same, shall remain subject to said statutory mortgage lien until the payment in full of the principal of and interest on the First Bond Issue; provided, however, the City reserves the right to issue bonds for the purpose of erecting or constructing upon the land described in the ordinance of the City authorizing the First Bond Issue, other structures and improvements free and cleas:•of such statutory mortgage lien and which other structures and improvements may or may not have a party wall with and adjoin the structures and improvements financed by the proceeds of the First Bohd Issue, provided that no part of the cost of said other structures and improvements is paid from the proceeds of the First Bond Issue; provided that upori the Board of Commissioners of the City adopting an ordinance or ordinances authorizing the issuance of other bond; for the purpose of providing funds to construct other buildings and improvements on said land, said statutory mortgage lien of the holder or holders of bonds of the First Bond Issue shall then be automatically partially released to the extent of the portion or portions of said land on which said subsequent buildings and improvements to be paid for from the proceeds of said subsequent issue or issues of bonds are located, together with such easements and rights of way for ingress and egress and the rendering of services thereto as may be necessary for the proper use and maintenance of the same, the exact legal description or descrip- tions of the portion or portions of the land to br partially released to be described in the said ordinance or ordinances of the Board of Commissioners author- izing the issuance of such other bonds, provided that in any event there shall bu continued such easements and rights of way for ingress and egress and the rendering of services thereto as may be necessary for the use of the building and appurtenances securing -the First Bond Issue, to the intent that the City may issue other bonds for the purpose of financing separate buildings and improve- ments which bonds will be secured by a first statutory mortgage lien upon said separate buildings and improvements. It is further provided that this covenant and agreement as to said partial release is and shall become fully effe$ti, upon the Board of Commissioners adppting an ordinance or ordinances authoriz- ing the issuance of such other bonds, without any action by the holder or holders of bonds of the First Bond Issue and the coupons appertaining thereto, but each holder by accepting, owning or holding bonds of the First Bond Issue or coupons appertaining thereto, agrees to the aforementioned covenant as to partial release which may be enforced against him by requiring him to take whatever steps are required of him by the City for the execution of a specific release or otherwise partially to release said property and he hereby further appo�ftts the Citizens Bank & Trust Company Paducah, Kentucky, as his agent to execute any such partial release of sucA property upon his behalf, if same is deemed necessary although such action is not necessary under the provisions hereinbefore stated), such appointment being effective so long as any bonds of the First Bond Issue are outstanding. 38 This bond and the coupon or coupons attached hereto shall pass by delivery. This bond is exempted 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 the amount of this 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 remains outstanding shall perform all duties imposed upon it by the Constitution and statutes of kentucky, including the taking of all steps necessary to produce annually a fund suffi- cient to pay the rental charges payable by the Board of Education of the Paducah Independent School District, for the use of such school property, and that such rental charges have been pledged to and will be set aside into a special account into the treasury of said City in an amount sufficient to pay the principal and interest on this bond and the issue of which it is a part as and when the same become due. IN WITNESS WHEREOF, the City of Paducah, in the Commonwealth of Kentucky has caused this -bond to be signed by its Mayor and its corporate seal to be hereunto affixed, attested by the City Clerk and the coupons attached hereto to be executed with the facsimile signatures of the Mayor and the City Clerk, all as of the first day of April, 1954. ATTEST: City Clerk BOND NO. CITY OF PADUCAH, KENTUCKY By Mayor (FORM OF COUPON) COUPON NO. Unless the bond to which this coupon is attached is redeemable and accordingly shall have been theretofore called for prior redemption, on the first day of , 19 , the City of Paducah, Kentucky, will pay to the bearer ) out of the "City of Paducah School Building Bond and nterestedt�emption Fund of 1954" at the Citizens Bank & Trust Company, Paducah, Kentucky, being six months interest on its School Building Revenue Bond, dated April 1, 1954, above numbered. ATTEST: City Clerk CITY OF PADUCAH, KENTUCKY By Mayor 5. From and after the completion of construction of the new high school building on or about August 1, 1955, the new school building property shall be operated on a fiscal year basis commencing October second of each year and ending October first of the following year, except that the first fiscal period shall be from August 1, 1955 to October 1, 1955, and on that basis the income and revenues of said property shall be set apart into a separate and special fund to be used for the retirement of the afo#esaid bonds and maintaining said property. 39 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 1954", (hereinafter called the Bond Fund), to be deposited with the payee bank of said bonds, into which there shall first be set aside from the proceeds of the sale of the bonds the amount received from the purchaser representing accrued interest, plus an additional amount sufficient to provide for interest which will accrue during the period required to complete the construction of the school building, and there shall also be set aside into said Fund from thr gross income and revenues of the property not less than the amounts set out in the table in Section 2 of this ordinance if said $2,750,000 of bonds are sold to bear interest at the rate of 3-31Vioo per annum, in ample time to pay the interest and principal as they fall due, which amounts are hereby exclusivley pledged to and shall be used only for the purpose of paying the interest on and the principal of said bonds as and when they mature. In the event said bonds are sold to bear an interest rate or rates other than at the rate of 3-3/40, said figures shall be automatically adjusted accordingly. In any event, there shall be set aside into said Fund and there is pledged such amounts as may from year to year be necessary to meet the principal and interest requirements of the outstanding City of Paducah School Building Revenue Bonds dated April 1, 1954• 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 mainte- nance 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 equal to at least the amount of the bonds at any time outstanding. Such insurance shall be for the use and benefit of the holder or holders of any bond or bonds. It is further agreed that in case the school building is totally destroyed by fire, windstorm or other hazard covered by insurance, the City shall have the right to expend such proceeds to restore the property; that if such proceeds are not expended by the City for restoration of said property at the earliest practical date, then to the extent needed all such insurance proceeds shall be used for the purpose of redeeming said outstanding bonds, and said propert shall be and become the property of the Board, in which case the City shall convey said property to the Board free and clear of all encumbrances. In the event of partial destruction by fire, windstorn or other hazard covered by insurance, it is agreed between the parties that the proceeds of such insruacne shall be used solely and only for the purpose of making the necessary replacements and repairs to the building, provided further that if following such partial or complete destruction any principal or interest payment is due and there are no other funds available for said payments, such insurance proceeds must be applied to the defaulted payments. 40 6. The City hereby oovenants 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 property which are required by the Con- stitution and laws of Kentucky, including 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 order. The City further covenants to maintain said property and to take all steps necessary to produce annually for the Board a sum sufficient to pay the rental charges for said property as provided in a certain Contract, Lease and Option approued by the Board of the 1st day of March, 1954 which has been submitted to this City and is hereby ordered accepted and executed by the Mayor and the City Clerk and is hereby made a part of this ordinance. The City further bonds and obligates itself not to sell, mortgage or ih any manner dispose of said property except by the mortgage provided in Sections 4 and 7 hereof, until all of the bonds herein authorized shall have been paid in full, both as to principal and interest. 7. For the further protection of the holders of the bonds herein authorized to be issued and the coupons attached hereto, a statutory mortgage lien upon said property and all improvements thereon is granted and created by Sections 162.120 through 162.290 KRS, which said statutory mortgage lien is hereby recognized and declared to be valid and binding upon the City and the property herein referred to and shall take effect immediately, such statutory mortgage lien being subject to the terms and conditions as set out in the form of said bonds which appears in Section 4 of this ordinance. Any holder of said bonds or any of the coupons either at law or in equity, by suit or other legal proceedings, may enforce and compel the perform- ance of all duties required by the Constitution and statutes of Kentucky, in- cluding 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 upon the City insofar as the failure to perform such duties affects the interest of any holder of the bonds or coupons herein authorized. If there be any default in the payment of the principal of or interest on any of said bonds, then upon the filing of suit by any holder of any of said bonds or any of the coupons, any court having jurisdiction of the action may appoint a receiver to administer the property with power to charge and collect rents sufficient to provide for the payment of interest and principal required by said bonds and maintain the maintenance and insurance fund herein provided f 8. The bonds authorized to the issued hereunder shall not be entitled to priority, one over the other, regardless of the fact that they may be issued and delivered at different times. 41 While any of the bonds herein authorized are outstanding, City shall not issue any additional bonds payable from the revenues of said 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. 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 City auditors, and will grant to any holder or holders of twenty-five per cent of the bonds -then outstanding the right at all reasonable times to inspect the property and all records and accounts of the City relating thereto. The school property mentioned herein as being subject to the statutory mortgage lien to secure the aforesaid issue of bonds is located in the City of Paducah, McCracken County, Kentucky, and more particularly described Lots 9 through 16, inclusive, block 2 of Dossettts sub- division of the City of Paducah as shown on plat Book "D" page 23 in the McCracken County Court Clerkts Office each of said lots fronting 50 feet on the south side of Ciark Street and extending back'in a southerly direction 200 feet to an alley and said lots comprising all that portion of property lying on the south side of Clark Street between 24th Street and 25th Street in the dity of Paducah. Lots 17 through 24, inclusive, Block 1 of Dossettts sub- division as shown by plat of said subdivision recorded in Plat Book "D", page 23 in the McCracken County Court Clerkts Office, each of said lots fronting 50 feet on the north side of Clark Street and running back in a northerly direction 165 feet to an alley, and said lots comprising all that portion of property fronting on the north side of Clark Street between 24th Street and 25th Street in the City of Paducah. Lots 2 through 21, inclusive, of 0. H. Sheltonts Addition to the City of Paducah Kentucky, as shown by plat of said ad- dition recorded in Plat Book "A", pages 1$4 and 1$5. Beginning at a point where the south line of Lot No. 1 of 0. H. Sheltonts Addition intersects the east line of the land of the West End Improvement Company, being the same point where the'south line of the parcel of real estate conveyed to E. J. Paxton by the West End Improvement Company by deed dated January 20th, 1925, recorded in Deed Book 142, page 372, aforesaid Clerkts office, intersects the east line of the land of the West End Improvement; thence westwardly with the south line of the parcel of real estate sold by the West End Improvement Company to E. J. Paxton to a point where the south line of said E. J. Paxtonts parcel of real estate intersects the south line of the land of the Wiest End Improvement Company in the east line of a 15 -foot alley in O. H. Sheltonts Addition, common corner to Lot No. 2 of 0. H. Sheltonts Addition and E. J. Pa$tonts parcel of real estate; thence eastwardly with the south line of the land of the West End Improvement Company to a point where said line intersects the.north line of Lot No. 4 of 0. H. Sheltonts Addition; and thence in a northerly direction on with the east line of the land of the West End Improvement Company to the point of beginning. 42 Also, all that property heretofore included in all streets and alleys in Paducah, Kentucky in the area bounded on the south by the north line of Adams Street and the said North line of Adams Street, if extended, on the east by the west line of 23rd Street and the said west line of 23rd Street, if extended, on the north by the south line of Washington Street, and on the west by the east line of 25th Street, ex- cept, however, the alley extending from the east line of 25th Street to the west line of 24th Street, and situated between Washington and Clark Street, and except that por- tion of 24th Street between the south line of said alley, if extended, and the south line of Washington Street. Said former streets and alleys reverted to the City upon closing of same by judgment entered in the McCracken Circuit Court on the 16th day of February, 1954, in an action styled "City of Paducah v. Board of Education of Paducah, Kentucky." Being the same property acquired by the City of Paducah, Kentucky, frmm the Board of Education of the Paducah Independent School District by deed dated February 20, 1954, and recorded in Deed Book 346, page 289 in the office of the County Clerk of County, Kentucky. 12. That said $2,750,000 of bonds, numbered 1 to 2,750, inclusive, shall be sold at public sale immediately after reasonable advertising, and the Mayor and City Clerk are hereby authorized and directed to make such adver- tising. That bidders shall be required to bid at least pas and accrued interest, and must name an interest rate or rates in multiples of 1/4o not to exceed the legal maximum of 60. That the Board of Commissioners shall in a resolution accepting the successful bid determine the exact rate or rates of interest which said bonds shall bear, and reserve the right to reject any or all bids. Upon failure of the successful bidder to take up and pay for the bonds when ready, the amount of the good faith check shall be forfeited by such bidder and such amount shall be deemed liquidated damages for such default, provided, however, if said bonds are not ready for delivery and payment within forty-five (45) days from the date of sale herein provided for, the bidder shall be relieved of any liability to accept the bonds hereunder. Delivery of the bonds will be made by the City of Paducah, provided the success- ful bidder may take delivery at a different place by paying the additional expense in connection with such delivery. That the proceeds of the sale of said bonds shall be used 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 additior:al amount sufficient to provide for interest which will accrue during the antici- pated period required to complete the construction of the school building intended to be financed thereby, shall immediately be deposited in the Bond Fund. The City Treasurer is authorized to sign whatever checks are necessary to accomplish that purpose. Thereafter, from the remaining proceeds there shall be paid all expenses incident to the authorization, sale and delivery of the bonds. The entire remaining proceeds, plus the amounts pledged by the Board of Education to be deposited in the fund for the construction of the building, 43 shall thereafter be devoted exclusively to payment of cost of the school build- ing and appurtenances upon the property described herein and according to the plans and specifications duly approved and filed prod:ided by KRS 162.160. The balance of the funds then remaining shall be deposited, until needed for construction purposes, in a special construction account at the Citizens Bank & Trust Company, Paducah, Kentucky called the "City of Paducah, Kentucky School Construction Account". Said bank shall invest for the benefit of said account such portion of said fund as is designated by the Board of Educatic in United States Government obligations maturing at such times as to make such funds available when needed for construction purposes, and the balance of the fund in said account shill be earmarked by a pledge of sufficient United States Govern- ment obligations or bonds of the issue herein authorized until expended. The money in that account shall be expended by payments made to defray the cost of construction of the school building herein referred to, such payments to be made upon checks drawn upon said bank by the City Treasurer, countersigned by a I representative of said Board of Education (to be designated by a written resolution of said Board) and accompanied in detachable form by a voucher (in duplicate) i entitled "Authorization for Payment" signed by the architect or engineer having supervision of the construction of said school building, in substantially 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 services furnished under an existing contract with the City of Paducah, Kentucky, relating to the con- struction of a new school building financed by the issuance of City of Paducah School Building Revenue Bonds, dated April 1, 1954s or for other work or services in connection therewith. It is further certified that all of said labor, materials, work and/or ser¢ides were furnished within the boundaries of the property describef in the ordinance of the Board of Commissioners of the City authorizing said bonds, which property is encumbered by said 00 bond issue, or were furnished in connection with improvements located within the boundaries of said property. Dated Architect or Engineer" The City Treasurer is hereby authorized to execute such checks from time to time in the necessary amounts upon the aforesaid voucher or "Authorization for Payment" being executed by the architect or engineer and presented to the City Treasyrer without any further meetings, authorizations, ordinances or resolutions of this Board of Commissioners. 44 Such checks, so long as the authenticating voucher (Authorization for Payment) shall remain attached thereto, shall be fully negotiable and a bank shall be authorized to honor and pay the same providing it assumes the responsibility for the propriety of all endorsements or all endorsements to it are guaranteed by a bank. Upon the payment of each such check, the authenti- cating original voucher attached thereto, shall be retained by said 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 voucher). After the architect certifies that the construction has been completed and paid for, any surplus remaining in the construction Account may be transferred to the Bond Fund. 14. If for any reason the funds obtained by the sale of said bond issue are not properly allocated, or if there is any misapplication of the proceeds, such improper allocation or misapplication shall not affect the validity of any bonds issued in accordance with this ordinance. 15. If any section, paragraph or clause of this ordinance shall be held invalid, the invalidity of such section, paragraph or clause shall not affect any of the remaining provisions of the ordinance. All ordinances, resolutions, and parts thereof in conflict herewith are hereby repealed and this ordinance shall take effect and be in force at once. (ATTACH SEAL OF CITY HERE) Playlor ATTEST: City Cler�.k Introduced by the Board of Commissioners March 2, 1954 Passed by the Board of Commissioners.March 9, 1954 Recorded by Sarah Thurman, City Clerk, March 9, 1954•