HomeMy WebLinkAboutOrdinances Book 17, Page 255, Ordinance Number 70-8-366255
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ORDINANCE NO. 70-8-366
AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING THE ISSUANCE
OF $412,000 CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS, SERIES B, AND
$350,000 CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS, SERIES C, FOR THE
BENEFIT OF PADUCAH JUNIOR COLLEGE (NOW KNOWN AS UNIVERSITY OF KENTUCKY,
PADUCAH COMMUNITY COLLEGE).
WHEREAS, at a meeting held on October 31, 1963, the Board
of Trustees of Paducah Junior College, a municipal junior college of
the City of Paducah, Kentucky, existing pursuant to Ms 165.160 to
165.200, inclusive, adopted a certain resolution requesting that the
Board of Commissioners of the City of Paducah, Kentucky, as the legis-
lative body of said City acting under authority of KRS 165.165,
create and establish a Consolidated Educational Buildings Project of
Paducah Junior College and create and establish an issue of Consoli-
dated Educational Buildings Revenue Bonds, issuable from time to time
and payable as to principal and interest solely from the revenues of
said Consolidated Educational Buildings Project; and
WHEREAS, at a meeting held on November 12, 1963, the City's
Board of Commissioners duly adopted, subsequently published and caused
to become effective, a certain ordinance (hereinafter called the
"Ordinance"), identified by its title or caption, as follows:
AN ORDINANCE OF THE BOARD OF COMMISSIONERS AS THE
LEGISLATIVE BODY OF THE CITY OF.PADUCAH, KENTUCKY,
UNDER AUTHORITY OF KRS 165.165, CREATING AND ESTABLISHING
A CONSOLIDATED EDUCATIONAL BUILDINGS PROJECT OF PADUCAH
JUNIOR COLLEGE; CREATING AND ESTABLISHING AN ISSUE OF
CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE -BONDS OF THE
BOARD OF COMMISSIONERS OF SAID CITY, FOR THE BENEFIT OF
SAID PADUCAH JUNIOR COLLEGE; PROVIDING FOR THE ISSUANCE
FROM TIME TO TIME OF SAID BONDS; PROVIDING FOR THE
PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS
SOLELY FROM CERTAIN IDENTIFIED AND PLEDGED REVENUES OF
SAID COLLEGE; SETTING FORTH CONDITIONS AND RESTRICTIONS
CONTROLLING THE FUTURE ISSUANCE OF PARITY BONDS; AND
PROVIDING FOR A PUBLIC SALE OR SALES.
AND WHEREAS at said meeting of November 12, 1963; the City's
Board of Commissioners adopted another ordinance (hereincalled the
"Series A Ordinance") authorizing the issuance of $1,350,000 "City of
Paducah, Paducah Junior College Consolidated Educational Buildings
Revenue Bonds, Series A," dated November 1, 1963, of which Bonds
$1,173,000 principal amount are outstanding and unpaid at the time of
the adoption of this ordinance, such bonds maturing in various amounts
on November 1 in each of the years 1970 to 1989, inclusive, without
default, and without deficiency in the amounts required by the Ordinance
256
and the Series A Ordinance to be paid into the "Consolidated Educational
Buildings Project Bond and Interest Sinking Fund" (the "Bond Fund"); and
WHEREAS, the Ordinance authorizes the issuance by the City
of additional series of said Bonds, pursuant to series ordinances
authorizing the same; the Board of the College has determined that it
is in the best interest of the Board and of the College to undertake
the erection and completion of a new Library=Classroom Building, with
necessary equipment, exterior utilities and site improvements, which
has now been constructed and completed and constitutes a part of the
Consolidated Educational Buildings Project, at an aggregate cost
(including payments to contractors, the fees of Architects, Engineers,
the Fiscal Agent and other necessary incidental costs, an allowance
for a discount in the sale of bonds, etc.) of $1,219,500, which is
to be provided from the following sources:
(a) A grant from the United States Department of Health,
Education and Welfare (HEW) in the estimated sum of
$461,000;
(b) The issuance of Consolidated Educational Buildings
Revenue Bonds, Series B, as hereinafter authorized, in
the amount of $412,000 pursuant to a Loan Agreement with
HEW; and
(c) The net proceeds of the $350,000 Consolidated Educational
Buildings Revenue Bonds, Series C, as hereinafter author-
ized;
AND WHEREAS, in anticipation of financing from such enumerated
sources the Board of the College, acting in the best interests of the
Board and of the College, has borrowed monies for interim financing
purposes from Paducah banks, and has from these borrowed monies
completed the aforesaid new Library -Classroom Building, with
necessary equipment, exterior utilities and site improvements;
and
WHEREAS, it has been ascertained that the average of the
annual Revenues from the Consolidated Educational Buildings Project
for the two Fiscal Years immediately preceding the proposed issuance
of the Series B Bonds and the Series C Bonds (being the income derived
by the Board of the College from the source established in the Ordinance
for the Revenues of the Project, as specifically permitted by the pro-
visions of Section 7.11 of the Ordinance), as adjusted in the author-
ized manner, was equa; to more than 1.40 times the maximum Aggregate
Principal, Interest and Bond Fund Charges (a defined term), in any
257
succeeding twelve-month period ending November 1, on the Series A
Bonds, the Series B Bonds, and the Series C Bonds, and a statement to
that effect will be filed with the Trustee by the Treasurer of the
College prior to the time of issuance of the Series B. Bonds and the
Series C Bonds, thereby complying with the conditions and restrictions
set forth in Section 7.11 of the ordinance permitting the issuance of
Bonds ranking on a basis of parity and equality with the Series A
Bonds as to security and source of payment, and in all other respects;
and
WHEREAS, by a certain Agreement dated June 2, 1967, made
by the Board of Trustees of Paducah Junior College with the Board of
Trustees of the University of Kentucky (under authority of Chapter 189,
Acts of the General Assembly of Kentucky for the Regular Session of
1966, now codified as KRS 164.593), it was provided, in substance,
(i) that the University, in stages to be completed and made effective
as of July 1, 1968, would undertake to support the College as a
Community College of the University, (ii) that thereupon the College
should be known as "University of Kentucky, Paducah Community College,"
(iii) that nevertheless the corporate existence of Paducah Junior
College should continue as before, with the right to receive the pro-
ceeds of taxes voted for its benefit by the people of the City of
c
Paducah, Kentucky, and by the people of McCracken County, Kentucky
(the proceeds of such taxes to be used to supplement the curriculum
of the College over and above the curricula provided for the Univer-
sity's Community Colleges generally); and with the right and power
specifically reserved to the College and the Board of Commissioners
of the City of Paducah to finance additional buildings for the College,
and (iv) that the University would collect and receive the Student
12 Registration Fees thereafter paid by students enrolled in the College,
but only as an agent for the College, and subject to the right of the
College and the Board of Commissioners of the City to pledge the same
for such future financing; these being no more than summarizations of
certain important features of the aforesaid Agreement, to the 'text of
which reference is hereby made for the full content thereof; and
WHEREAS, The Board of the College has now requested that the
Board of Commissioners of the City take proper action to authorize the
aforesaid Series B Bonds and Series C Bonds, and it is the purpose of
the Board of Commissioners of the City to comply with such request
258
through the adoption of this ordinance,
NOW THEREFORE THE BOARD OF COMMISSIONERS OF THE CITY OF
PADUCAH, KENTUCKY, HEREBY ORDAINS, AS FOLLOWS•
ARTICLE I - Definitions and Authority
Section 1.01. This ordinance (hereinafter referred to as
"Series B and Series C Ordinance") is adopted in accordance with
ARTICLE II, Section 2.03 of the Ordinance.
SECTION 1.02. (A) All terms which are defined in ARTICLE I
of the Ordinance shall have the same meanings, respectively, in this
Series B and Series C Ordinance as such terms are given in said Article
of the Ordinance.
(B) In this Series B and Series C Ordinance, Series B Bonds,
and Series C Bonds, shall mean the Bonds authorized by ARTICLE II of
this Series B and Series C Ordinance.
ARTICLE II - Authorization of Series B Bonds and Series C Bonds
SECTION 2.01. Pursuant to the provisions of the Ordinance
there are hereby authorized to be issued by the Board of Commissioners
of the City of Paducah, Kentucky, as the governing body of said City,
for the benefit of Paducah Junior College (now known as University of
Kentucky, Paducah Community College), a series of Bonds in the principal
amount of Four Hundred Twelve Thousand Dollars ($412,000), designated
as "Consolidated Educational Buildings Revenue Bonds, Series B" (the
"Series B Bonds); and a series of Bonds in the principal amount of
Three Hundred Fifty Thousand Dollars ($350,000), designated as "Consoli-
dated Educational Buildings Revenue Bonds, Series C (the "Series C
Bonds"). Said Series B Bonds and Series C Bonds are hereby declared
to have been authorized under the Ordinance and in conformity with
the provisions of Section 7.11 of the Ordinance.
Section 2.02, Said Series B Bonds and Series C Bonds are
being issued for the purpose of paying the costs (to the extent not
otherwise provided) of erecting and completing an educational building
with necessary appurtenances upon the New Campus of the College in
McCracken County, Kentucky, consisting of a new library -classroom
building, with equipment, exterior utilities and site improvements,
all of which have been completed, and have become and constitute parts
of the Consolidated Educational Buildings Project of said College.
259
Section 2.03. The principal of and interest on said Series B
Bonds and Series C Bonds shall be payable in any coin or currency of
the United States of America, which at the time of payment thereof is
legal tender for the payment of public and private debts, at the prin-
cipal office of The Citizens Bank and Trust Company of Paducah, in the
City of Paducah, Kentucky, Trustee (or successor Trustee appointed
pursuant to the provisions of the Ordinance) which is hereby also
appointed Paying Agent for the Series B Bonds and Series C Bonds. With
respect to the Series B Bonds, only, the holders of the Bonds.and appur-
tenant coupons shall'have the option of presenting the same for payment
at the principal office of Chemical Bank, in the Borough of Manhattan,
New York, New York, which is hereby appointed an Alternate Paying Agent
for the Series B Bonds.
SECTION 2.04. Said Series B Bonds and Series C Bonds shall
be executed on behalf of said Board of Commissioners with the reproduced
facsimile signature of the Mayor of the City of Paducah and attested
by the manual signature of the City Clerk, and the facsimile of the
corporate seal of said City shall be imprinted thereon. Interest on
said Series B Bonds and Series C Bonds falling due on and prior to
maturity shall be represented by appropriate interest coupons to be
attached to each of said Series B Bonds and Series C Bonds, which
coupons shall be executed with the facsimile of the official signa-
tures of said Mayor and said City Clerk.
Section 2.05. For the purpose of securing the payment of
both the principal of and interest on all the Series B Bonds and
Series C Bonds, and to secure for the benefit of all the holders
thereof the faithful performance of the covenants and provisions con-
tained in the Ordinance in the manner and to the extent as permitted
and provided in the Ordinance and in Section 165.165 and Sections
162.340, et seq., of the Kentucky Revised Statutes, The Citizens Bank
and Trust Company of Paducah, in the City of Paducah, Kentucky, was
in the Series A Ordinance designated as Trustee under the Ordinance
for the holders of all of said Series A Bonds, and such designation
is hereby confirmed for securing the payment of both principal of and
interest on the Series B Bonds and Series C Bonds, with the powers
and duties set forth in the Ordinance and with no liability in connec-
tion with any action or omission to act under the Ordinance except for
260
its own negligence or willful breach of trust. Execution of the
authentication certificate of the Trustee appearing on the respective
Series B Bonds and Series C Bonds shall conclusively establish the
acceptance as to such Series B Bonds and Series C Bonds by the Trustee
of the trusts and provisions with respect thereto as set forth in the
Ordinance.
Section 2.06. The Series B Bonds shall be dated August 1,
1970, and bear interest payable on November 1, 1970, and semiannually
thereafter on May 1 and November 1 of each year, at a coupon rate or
coupon rates averaging no more than three per cent (3%) per annum, the
exact rate or rates of interest for said Series B Bonds to be fixed as
a result of advertised sale and competitive bidding for said Series B
Bonds, as hereinafter provided. Said Series B Bonds shall be numbered
and scheduled to become due and payable in numerical order on November 1
of the respective years, as follows:
form, and shall be registerable as to principal only. The Series B
Bonds numbered 1 to 82, inclusive, shall be in the denomination of
$5,000, and the Series B Bonds numbered 83 and 84 shall be in the
denomination of $1,000.
MATURITY SCHEDULE, SERIES
B BONDS
BONDS NUMBERED
PRINCIPAL AMOUNT
DATE OF MATURITY
(Inclusive)
1
$ 5,000
November
1,
1971
2
5,000
November
1,
1972
3
5,000
November
1,
1973
4
5,000
November
1,
1974
5-6
10,000
November
1,
1975
7-8
10,000
November
1,
1976
9-10
10,000
November
1,
1977
11-12
10,000
November
1,
1978
13-14
10,000
November
1,
1979
15-17
15,000
November
1,
1980
18-20
15,000
November
1,
1981
21-23
15,000
November
1,
1982
24-26
15,000
November
1,
1983
27-29
15,000
November
1,
1984
30-32
15,000
November
1,
1985
33-37
25,000
November
1,
1986
38-42
25,000
November
1,
1987
43-47
25,000
November
1,
1988
48-52
25,000
November
1,
1989
53-57
25,000
November
1,
1990
58-62
25,000
November
1,
1991
63-67
25,000
November
1,
1992
68-72
25,000
November
1,
1993
73-77
25,000
November
1,
1994
(78-82
25,000
November
1,
1995)
( $5,000
denomination)
(83-84
2,000
November
1,
1995)
( $1,000
denomination)
)
Section 2.07.
Said Series B Bonds shall
be issued in coupon
form, and shall be registerable as to principal only. The Series B
Bonds numbered 1 to 82, inclusive, shall be in the denomination of
$5,000, and the Series B Bonds numbered 83 and 84 shall be in the
denomination of $1,000.
261
Section 2.08. The Series B Bonds maturing November 1, 1981,
and thereafter (being the Bonds numbered 18 and upwards) shall be
subject to redemption by the Board of Commissioners 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 on or after May 1, 1981, at the redemption prices,
expressed in percentages of principal amount, with respect to each
Bond as set forth below, plus in each case accrued interest to the
date of redemption"
Redemption
If Redeemed Price
On or after May 1, 1981, through November 1, 1985, inclusive 102%
On or after May 1, 1986, through November 1, 1990, inclusive 101%
Without premium if redeemed thereafter to final maturity.
Section 2.09. The Series C Bonds shall be dated August 1
1970, and shall bear interest payable on November 1, 1970, and
thereafter semiannually on May 1 and November 1 of each year, at the
coupon rate or coupon rates such that the difference between the
highest coupon rate and the lowest coupon rate shall not exceed two
percentage points (2%), the exact rate or rates of interest for said
Series C Bonds to be fixed as a result of advertised sale and com-
petitive bidding for said Series C Bonds, as hereinafter provided.
Said Series C Bonds shall be numbered and scheduled to become due and
payable in numerical order on November 1 of the respective years, as
follows:
MATURITY SCHEDULE, SERIES C BONDS
130NDS NUMBERED PRINCIPAL AMOUNT DATE OF MATURITY
(Inclusive)
1-3
$15,000
November
1,
1971
4-7
20,000
November
1,
1972
8-11
20,000
November
1,
1973
12-15
20,000
November
1,
1974
16-18
15,000
November
1,
1975
19-22
20,000
November
1,
1976
23-26
20,000
November
1,
1977
27-30
20,000
November
1,
1978
31-34
20,000
November
1,
1979
35-38
20,000
November
1,
1980
39-43
25,000
November
1;
1981
44-48
25,000
November
1,
1982
49-53
•25;000
November
1,
1983
54-59
30,000
November
1,
1984
60-65
30,000
November
1,
1985
66-70
25,000
November
1,
1986
SECTION 2.10. The said Series C Bonds shall be issued in
coupon form, in the denomination of $5,000, and shall be registerable as
262
to principal only.
Section 2.11. The Series C Bonds maturing November 1, 1981,
and thereafter (being the bonds numbered 39 and upwards) shall be sub-
ject to redemption by the Board of Commissioners in whole or from time
to time in part in the inverse order of their maturities (less than
all of a single maturity to be selected by lot) on any interest pay-
ment date on or after November 1, 1980, at the face amount thereof,
together with interest to the redemption date and a redemption premium
equal to two per cent (2%) of the face amount thereof, to final maturity.
Section 2.12. The Series B Bonds and Series C Bonds and cou-
pons and provisions for registration appertaining thereto and the
certificate of the Trustee to.be endorsed on said Series B Bonds and
Series C Bonds shall be in substantially the following respective forms
(with proper adjustments to conform to the respective texts), to -wit:
(FORM OF BOND)
UNITED STATES OF AMERICA
COMMONWEALTH OF KENTUCKY
CITY OF PADUCAH
PADUCAH JUNIOR COLLEGE
NOW KNOWN AS UNIVERSITY OF KENTUCKY
PADUCAH COMMUNITY COLLEGE)
CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BOND
SERIES
No.
The Board of Commissioners as the Legislative Body of the
City of Paducah, McCracken County, Kentucky, acting under authority
of Section 165.165 and Sections 162.340 et seq., of the Kentucky Re-
vised Statutes, for the benefit of Paducah Junior College, now known
as University of Kentucky, Paducah Community College (hereinafter
referred to as the "College"), for value received, hereby promises
to pay, solely from the special fund provided therefor, as hereinafter
set forth, to the bearer, or, if this Bond be registered, to the
registered owner hereof, as hereinafter provided, the sum of
Thousand Dollars ($ ) on.the first day of November, 19
and to pay, solely from said special fund, interest thereon from the
date hereof until payment of principal at the rate of
per cent
( %) per annum, such interest being payable on November 1, 1970,
and thereafter semiannually on the first days of May and November
in each year, except as the provisions 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 date of this Bond
to be paid only upon presentation and surrender of the annexed cou-
263
Pons as they severally mature, both principal and interest being
payable in any coin or currency of the United States of America which
at the time of payment thereof is legal tender for the payment of
public and private debts, at the principal office of the Trustee,
The Citizens Bank and Trust Company of Paducah, in the City of
Paducah, Kentucky,*(or, at the option of the holder, at the principal
office of Chemical Bank, in the Borough of Manhattan, in the City of
New York, N.Y.)*
This Bond is one of a duly authorized issue of Bonds desig-
nated as "Consolidated Educational Buildings Revenue Bonds" (herein
after referred to as the "Bonds") issued and to be issued under and
in full compliance with the Constitution and Statutes of the Common-
wealth of Kentucky, including among others, Section 165.165 and
Sections 162.350 to 162.380, inclusive, of the Kentucky Revised
Statutes now in full force and effect, and under and pursuant to the
Ordinance adopted by the Board of Commissioners on November 12, 1963
(hereinafter referred to as the "Ordinance"), and the Series B and
Series C Ordinance adopted by the Board of Commissioners on
1970.
As provided in the Ordinance, the Bonds may be issued from
time to time pursuant to separate ordinances in one or more series,
in various principal amounts, may bear interest at different rates
and may otherwise vary as in the Ordinance provided. The aggregate
principal amount of Bonds which may be issued under the Ordinance is
not limited except as provided in the Ordinance, and all bonds issued
and to be issued under the Ordinance are and will be equally secured
by the pledges and covenants made therein, except as otherwise ex-
pressly provided or permitted in the Ordinance.
This Bond is one of a series of Bonds of various maturities
designated as "Consolidated Educational Buildings Revenue Bonds,
Series ' (hereincalled the "Series _ Bonds") issued in the
aggregate amount of $ under the Ordinance for the purpose
of financing the costs (to the extent not otherwise provided) of
erecting and completing an educational building and necessary appur-
tenances as a part of the Consolidated Educational Buildings Project
of said College (hereinafter referred to as the "Project"). Copies
-- - -- - �••=
---Ab co appear only in the Series B Bonds
264
of the Ordinance, the Series A Ordinance, and the Series B and Series C
Ordinance, are on file at the office.of the Trustee. Reference is
hereby made to the Ordinance pursuant to which The Citizens Bank and
Trust Company of Paducah, in the City of Paducah., Kentucky, has been
designated as Trustee for the holders of the issue of Bonds of which
this Bond is one and for the provisions, among others, with respect
to the custody and application of the proceeds of the Bonds; the
rights, duties and obligations of said Board of Commissioners, of the
Board of Trustees of said College, and of the Trustee, and the rights
of the holders of the Bonds; and by the acceptance of this Bond, the
holder hereof assents to all of the provisions of the Ordinance.
Under authority of the Statutes pursuant to which this Bond is issued,
this Bond shall have all the qualities and incidents of a negotiable
instrument, and subject to the provisions forregistration endorsed
hereon and contained in the Ordinance, nothing contained in this Bond
or in the Ordinance shall affect or impair the negotiability of this
Bond.
The holder of this Bond shall have no right to enforce the
provisions of the Ordinance or to institute action to enforce the
covenants therein, or to take any action with respect to any default
under the Ordinance, or to institute, appear in or defend any suit or
other proceedings with respect thereto, except as provided in the
Ordinance. The Ordinance provides for fixing, charging and collecting
fees for the services of said Project, which fees will be sufficient
to pay the principal of and the interest on said Bonds as the same
become due and to provide reserves for such purposes and also to pay
the costs of operation and maintenance of the Project to the extent
the same are not otherwise provided. The Ordinance provides for the
creation of a special account designated "Consolidated Educational
Buildings Project Bond and Interest Sinking Fund" (herein called the
"Bond Fund") and for the deposit to the credit of said Bond Fund of
a fixed amount of the gross Revenues of said Project sufficient to
pay interest on the Bonds as the same becomes due and to pay or retire
the principal of the Bonds at or prior to the maturity thereof, and
to provide a reserve for such purpose, which Bond Fund is pledged
to and charged with the payment of said principal and interest.
265
The issue of Series Bonds of which this Bond is one and
all other bonds as may be outstanding from time to time under the
Ordinance, are payable only from a fixed amount of the gross Revenues
derived from the operation of said Project which will be set aside
in said Bond Fund, and this Bond does not constitute any indebtedness of
the Board of Commissioners, the City of Paducah, Paducah Junior College,
the Board of Trustees of said College, or of the University of Kentucky
within the meaning of any provisions or limitations of the Constitution
of the Commonwealth of Kentucky.
The Series _ Bonds maturing November 1, 1981 and thereafter
(being the Bonds numbered _ and upwards) shall be subject to re-
demption at the option of the Board of Commissioners 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 on or after I *(at the redemption prices,
expressed in percentages of principal amount, with respect to each
Bond as set forth below, plus in each case accrued interest to the
date of redemption:
If Redeemed Redemption Price
In the event the Board of Commissioners shall exercise its
option to redeem any of the Series _ Bonds of which this Bond is a
part, notice of such redemption identifying the Bonds to be redeemed
will be given to the Trustee at least forty-five (45) days prior to
the specified redemption date and such notice shall be published at
least once not less than thirty (30) days prior to the specified
redemption date in a newspaper or financial journal of general cir-
culation published in each of the Cities of Louisville, Kentucky, and
New York, New York. Any Bonds called for redemption and for the pay-
ment of which funds are deposited with said Trustee on the specified
redemption date shall cease to bear interest on said redemption date.
This Bond shall pass by delivery unless registered as to
principal on the books of said Board of Commissioners at the office
of the Trustee under the Ordinance, and such registration noted hereof,
after which no valid transfer hereof shall be effective unless made
on said books and similarly endorsed hereon at the written request
*text after this point, to conform appropriately
266
of the registered holder or his duly authorized representative, but
this Bond may be discharged from registration by being in like manner
registered to bearer whereupon full negotiability and transferability
by delivery shall be restored but may again from time to time be
registered as aforesaid. Such registration, however, shall not
affect the negotiability of the interest coupons which shall always
remain payable to bearer and transferable by delivery merely. The
Board of Commissioners, the Trustee, and the Paying Agents may treat
the bearer of this Bond, if not registered as to principal, and the
bearer of any coupon hereto appertaining, whether or not this Bond
be so registered, or if this Bond be registered as herein authorized,
the person in whose name the same is registered, as the absolute
owner for the purpose of making payment and for all other purposes.
A statutory mortgage lien, which is hereby recognized as
valid and binding on said Project, is created and granted to and in
favor of the holder or holders of this Bond and the issue of Bonds
of which it is one, and in favor of the holder or holders of the cou-
pons attached thereto, and said Project shall remain subject to such
statutory mortgage lien until the payment in full of the principal
of and interest on this Bond and the issue of Bonds of which it is
one.
This Bond shall not be valid or become obligatory for any
purpose, or be entitled to any security or benefit, under the Ordinance,
until it shall have been authenticated by the execution of the Trustee
of the certificate hereon endorsed.
It is hereby certified, recited and declared that all acts,
conditions and things required to exist, to happer, and to be �>er-
formed 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; that the amount of this Bond, together with all
other obligations of said Board of Commissioners and of the City of
Paducah and of said Oaducah Junior College (now known as University
of Kentucky, Paducah Community College), does not violate any pro-
vision or exceed any limit prescribed by the Constitution or Statutes
of Kentucky; that said Project will be continuously operated; and
that a sufficient portion of the gross Revenues therefrom has been
pledged to and will be set aside into said Bond Fund for the payment
of the principal of and interest on this Bond and the issue of which
267
it is one, and all other bonds which by their terms and the terms of
the Ordinance are payable from said Bond Fund, as and when the same
Will respectively become due.
IN TESTIMONY WHEREOF, The Board Of Commissioners as the
Legislative Body of the City Of Paducah, Kentucky, has caused this
Bond to be executed on its behalf by the reproduced facsimile signa-
ture of the Mayor, and the facsimile of the corporate seal of said
City to be imprinted hereon, attested by the manual signature of the
City Clerk, and the coupons hereto attached to be executed with the
facsimile signatures of said Mayor and City Clerk, all being done
as of the first day of August, 1970.
(Fa esimile )
Mayor
City of Paducah, Kentucky
(Facsimile of
Seal of City)
ATTEST:
(Manual Sicrnature)
City Clerk
(FORM OF COUPON)
No.
On the first day of
19 * (unless the
Bond to which this coupon is.attached shall have been duly called
for prior redemption and payment of the redemption price duly made
or provided for) the Board of Commissioners as the Legislative Body
of the City of Paducah, Kentucky, acting for the benefit of Paducah
Junior College (now known as University Of Kentucky, Paducah Com-
munity College), will pay to bearer
Dollars
($---) in any coin or currency which at the time of pay-
ment hereof is legal tender for the payment of public and private
debts out of its "Consolidated Educational Buildings Project Bond
and Interest Sinking Fund," at the principal office of The Citizens
Bank and Trust Company of Paducah, in the City of Paducah, Kentucky
(*The phrase in parenthesis should appear only in coupons maturing
on and after
attached to Bonds numbered
--- to
, inclusive.)
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(or, at the option of the holder, at the principal office of
Chemical Bank, situated in the Borough of Manhattan, in the City
of New York, N. Y.), as provided in and for interest then doe on
its Consolidated Educational Buildings Revenue Bonds, Series
dated August 1, 1970, Number
ATTEST:
(Facsimile)
City Clerk
(Facsimile)
Mayor
City of Paducah, Kentucky
(FORM OF AUTHENTICATION CERTIFICATE)
This Bond is one of the Bonds described or provided for in
the withinmentioned Ordinance.
THE CITIZENS BANK AND TRUST COMPANY
OF PADUCAH, TRUSTEE
Paducah, Kentucky
By
Authorized Officer
(FORM OF REGISTRATION TO BE PRINTED
ON EACH SERIES BOND)
Date of Name of Signature of Authorized
Registration Registered Holder Officer of Trustee
Section 2.13. The City Clerk is hereby authorized and directed
to cause appropriate forms of notice of sale of the Series B Bonds
and of the Series C Bonds to be published in the Paducah Sun -Democrat,
a legal newspaper published in Paducah, Kentucky, and having the largest
circulation therein, and in The Louisville Courier -Journal, a legal
newspaper published in the City of Louisville, Kentucky,which will
afford state-wide notice of the sale, and in The Daily Bond Buyer, a
financial journal published in the City of New York, New York, which
is a publication having general circulation among bond buyers and
said newspapers and financial journal are hereby declared to be
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qualified to publish such notices for the Board of Commissioners within
the meaning and provisions of KRS Chapter 424. Such notices shall
be published in said newspapers and financial journal at least once
and shall appear not less than seven days nor more than twenty-one
days prior to the scheduled date of sale of said Bonds. Such notices
shall be in the customary form and shall specify that sealed com-
petitive proposals for the purchase of such Bonds shall be received
at a designated place and until some day and hour when the Board of
Commissioners will be in session. In the case of the Series B Bonds
a minimum bid of face amount and accrued interest shall be required;
and in the case of the Series C Bonds; a minimum bid of 991% of par
plus accrued interest shall be required. The right to reject any or
all bids shall be expressly reserved. On the occasion set forth in
such notice the Board of Commissioners shall consider all proposals
made pursuant to such notice, award the Series B Bonds and Series C
Bonds in the manner and for the purposes herein provided, establish
the interest coupon rate or rates which each series shall bear, and
take all other necessary and proper steps in the sale and issuance
of the said Bonds.
The City Clerk may cause to be prepared multiple copies of
a statement giving a more complete and particular description of the
Series B Bonds and Series C Bonds, provisions for the security and
payment thereof, disposition of bond proceeds and other information
that is not possible to give within the limits of the published
notices, and furnished copies of such statement to all interested
bidders upon request. Such statement may contain a particular
description of the terms and conditions upon which the Series B
Bonds and Series C Bonds are offered for sale, in order to bring
about uniformity in the proposals which may be submitted for the
purchase of said respective series.
SECTION 2.14. There is hereby established in the custody
of the Trustee a Construction Account to be designated "Paducah
Junior College Consolidated Educational Buildings Project - Bond
Proceeds Series B and Series C Construction Account" (the "Construction
Account"). There shall be deposited in said Construction Account,
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270
when and as received, all funds received from all sources for the
construction and completion of the Library -Classroom Building and
appurtenances, hereinbefore identified, including (i) the proceeds
of the Grant from HEW, (ii) the proceeds of the Series B Bonds, and
(iii) the net proceeds of the Series C Bonds (after first paying
from the proceeds of the series C Bonds the contractual fee of the
Fiscal Agent). From the monies received from the purchasers of the
Series B and Series C Bonds the Trustee shall then set aside and
deposit into the Bond Fund all sums which have been received as
representing accrued interest on said Bonds from August 1, 1970, to
the date of delivery and payment; and thereafter the Trustee is
authorized to pay any and all proper expenses incident to the is-
suance of the Series B and Series C Bonds which are not contracted
to be paid by the Fiscal Agent. From the remaining funds in said
Construction Account,(including the proceeds of the HEW Grant, when
received). There shall then be paid all sums which the City and/or
Paducah Junior College have borrowed from banks for the purpose of
financing construction of the aforesaid Library=Classroom building,
with necessary equipment, exterior utilities and site improvements,
including interest on such borrowings at the agreed rate or rates
to the date of such payment. Upon payment, all such Notes shall be
cancelled and delivered to the Treasurer of Paducah Junior College for
its permanent records. Any remaining balance shall be applied by the
Trustee to payment of other costs, if any, of the said building project,
including equipment, exterior utilities and site improvements, and to
reimburse the College for any costs and expenses certified by the
Treasurer of the College to have been advanced or paid by the College;
and when all costs are certified to have been paid in full, then the
Trustee shall transfer any remaining balance in the Construction Account
to the Bond Fund, and credit the same to the reserve provided for therein.
Section 2.15. A certified copy of this Series B and Series C
Ordinance shall be filed with the Trustee, and this Series B and
Series C Ordinance shall take effect immediately upon its adoption
and publication, and the filing of a certified copy thereof with the
Trustee.
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GIVEN FIRST READING by the Board of Commissioners of the
City of Paducah, Kentucky, at a properly convened meeting held on
August 11, 1970.
ADOPTED at a meeting of the Board of Commissioners held on
August 18th, 1970, signed as provided by law, attested under seal by
the City Clerk and ordered published at the earliest convenient date.
MayOR Protem
City of Paducah, Kentucky
H. E. Fisher, Commissioner
(SEAL) John Hornsby, mmissioner
ATTEST:
City Clerk
271