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HomeMy WebLinkAboutAuthorizing the Issuance and Sale of $1,650,000.00 Funding Bonds of City of South BendORDINANCE No. 3az� Passed by the Common Council of the City of South Bend, Indiana Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by Clerk of Common Council 7 Clerk J ORDINANCE NO. AN ORDINANCE authorizing ance and sale of g Funding Bonds of the -%t Bend, St. Joseph County, and providing details in therewith. the issu- no0.00 of South Indiana, connection WHEREAS the City of South Bend, St. Joseph County, has heretofore.authorized and issued various Special Improvement Bonds under the provisions of the Barrett Law and has incurred a liability in connection therewith due to certain diversions and losses and such liability has been established by the Supreme Co of Indiana in the case of Read vs. Beczkiewicz decided by said Court on February 1, 1939; and WHEREAS pursuant to said decision of the Supreme Court, said cause was remanded to the St. Joseph Superior Court Number 2, St. Joseph County, Indiana, and on the /8th day of August, 1940s in Cause No. 54558, said Court rendered judgment against the City of South Bend in favor of the holders of Special Improvement Bonds issued by said City of South Bend in the aggregate sum of $ /,A" _ ZZ , of which sum $ 1,26Z 412 , 43 bear interest f the date of said judgment at the rate of six per cent per annum; MT011 WHEREAS the City of South Bend has no funds out of which said judgment can be paid and it is advisable and legally feasible i that Funding Bonds be authorized and issued by said City for the purpose of paying the indebtedness of said City represented by sai judgment; NOVI, THEREFORE, Be It Ordained by the Common Council of the City of South Bend, St. Joseph County, Indiana, as follows: -1- Section 1. That for the purpose of paying and the indebtedness of the City of South Bend, Indiana, as evidenced by judgment rendered in the case of Read vs. Beezkiewicz, Cause No. 54558, in the St. Joseph Superior Court Number 2 of St. Joseph County, Indiana, there be issued Funding Bonds of said City in the aggregate amount of $ i, 4SO, 000. 0o . Section 2. That said Funding Bonds shall be in the de- nomination of $1,000 each, shall be numbered from 1 to 14-s-o , in- clusive, shall be dated October 1, 1940, shall bear interest at a rate not exceeding four per cent per annum, payable April 1, 1941 and semi - annually thereafter on October 1 and April 1 of each year until paid, shall be payable, both principal and interest, in law - ful money of the United States of America at the office of the City Treasurer of the City of South Bend, and shall mature serially on October 1 of each of the years 1942 to 1947, inclusive, in accord- ance with the following schedule: Year Amount 1942 65,000 1943 105,000 1944 240,000 1945 420,000 1946 515,000 1947 3o4r, too Section 3. That said Funding Bonds shall be executed on behalf of said City of South Bend by the Mayor of said City, count signed by the City Controller., and attested by the City Clerk and the seal of said City, and -the interest coupons attached to said bonds shall be executed by the facsimile signatures of said Mayor, City Controller and City Clerk, and said officials shall, by the execution of said bonds, adopt as and for their own proper signatu their respective facsimile signatures appearing upon said coupons. -2- Section 4. That said bonds and coupons shall be in sub- stantially the following form: (Form of Bond) UNITED STATES OF AMERICA STATE OF INDIANA COUNTY OF ST. JOSEPH CITY OF SOUTH BEND FUNDING BOND No. 0 KNOW ALL MEN BY THESE PRESENTS, that the City of South Bend, in the County of St. Joseph and State of Indiana, hereby acimowledges itself to owe and for value received promises to pay to bearer the sum of (0 ), in lawful money of the United States of America, on the first day of October, 19 , with interest thereon at the rat of Per Cent (_%) per annum, payable April 1, 1941 and semi - annually thereafter on October 1 and April 1 of each year on presentation and surrender of the interest coupons hereto at- tached as they severally become due. Both principal hereof and interest hereon are hereby made payable at the office of the City Treasurer of the City of South Bend, in the City of South Bend, Indiana. For the prompt payment of this bond, both principal and interest at maturity, and for the levy of taxes sufficient for tha purpose, the full faith, credit and resources of said City are hereby irrevocably pledged. This bond and the issue of which it forms a part are issued by said City for the purpose of obtaining funds to pay a valid judgment heretofore rendered against said City of South Bend -3- pursuant to and in all respects in compliance with the requirements and provisions of an Act of the General Assembly of the State of Indiana entitled "An Act concerning municipal corporations," ap- proved on the 6th day of March, 1905, and proclaimed to be in effec by the proclamation of the Governor of said State on the 15th day o April, 1905, and all laws amendatory thereof and supplemental there to, and an ordinance duly and legally adopted by the Common Council of said City of South Bend on the day of , 1940. And it is hereby certified and recited that all conditions, things and acts required by law to exist, to be or to be done pre- cedent to and in the issuance of this bond and of the series of which it forms a part, have existed, have been, and have been per- formed in due form and time, and that this bond, together with all other bonds of the issue of which this bond constitutes a part, is and are within each and every limit prescribed by law. IN WITNESS WHEREOF, the City of South Bend, St. Joseph County, Indiana, by its Common Council, has caused this bond to be signed by its Mayor, countersigned by its City Controller, and attested by its City Clerk, and its corporate seal to be hereto affixed,and the coupons hereto attached to be signed by the fac- simile signatures of said officials, and said officials by the exe- cution of this bond do adopt as and for their respective proper signatures their respective facsimile signatures appearing upon sai coupons, all this first day of October, 1940 Attest: City Clerk, City of South Ben -4- Mayor, City of South Ben Countersigned: City Controller, City of South Bend No. (Form of Coupon) On the first day of 19 , the City of South Bend, St. Joseph County, Indiana, will pay to bearer Dollars ($ ) at the office of the Treasurer of the City of South Bend, in the City of South Bend, Indiana, for interest due that day on its Funding Bond, dated October 1, 1940, numbered City Clerk Mayor City Controller Section 5. That for the purpose of paying the principal and interest on said Funding Bonds as the same shall mature, there shall be annually levied and collected a special tax on all of the property in said City of South Bend subject to taxation in an amou sufficient for that purpose; provided, however, that the provision herein made for the levy of taxes shall not preclude the payment o principal or interest on said Funding Bonds from any other funds lawfully available for that purpose. Section 6. The holder or holders of said Funding Bonds shall always be subrogated to all of the rights, remedies and privileges possessed by or inured to the holder or holders of cl represented by the judgment being paid from the proceeds of said Funding Bonds. Section 7. That said Funding Bonds be advertised for- 6 sale in the manner provided by law by the City Clerk and be sold T�/P�ry 10.'TRO / /eie by to the best bidder who shall bid not less than par and accrued interest to date of delivery of the bonds and the lowest interest rate and interest cost to the City of South Bend; -5- provided, however, that the right shall be reserved to reject any or all bids. All bids shall be required to be accompanied by a certified check payable to the City of South Bend, Indiana, for one per cent (1 %) of the amount of such bid, which check shall be for- feited to the City by the successful bidder if he shall refuse to accept and pay for said bonds. Section 8. The proceeds received from the sale of said Funding Bonds shall be applied to the payment and satisfaction of the indebtedness represented by the judgment heretofore rendered against the City of South Bend by the St. Joseph Superior Court Number 2 in Cause Number 54558, entitled "Read vs. Beczkiewiez." Provided, however, that no Funding Bonds shall be issued by said City of South Bend in connection with liability arising against said City on account of bonds now owned by it and none of the proceeds of such Funding Bonds shall be used to pay any such liability. Section 9. That all ordinances, resolutions, or acts in conflict herewith are repealed in so far as such conflict exists and this Common Council hereby declares that an emergency exists due to the necessity of maintaining the credit of the City of Sou Bend, and this ordinance shall be in full force and effect from a after its passage. VI Tm,r Signed: _g_ CJ Presented to Mayor for approval , 1940. Approved Signed: Ist k`& READING S///'P/'V n COMMITTEE OF THE WHOLE PUBLIC HEARING 3rd READING NOT A PROVED REEEMIED / 1940. Mayor of the City of South Bend, Indiana MK/bf 11 -- -7-