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1053 ORDINANCE NO. 1053 AN ORDINANCE SUPPLEMENTING AN ORDINANCE ENTITLED "AN ORDINANCE AUTHORIZING THE CONSTRUCTION OR ACQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVE- MENTS TO THE COMBINED WATER AND SEWER SYSTEM OF THE CITY OF SANFORD, FLORIDA, AND AUTHORIZING THE ISSUANCE OF $1,175,000 WATER AND SEWER REVENUE CER- TIFICATES FOR SUCH PURPOSES," AND PROVIDING FOR THE ISSUANCE OF $1,325,000 WATER AND SEWER REVENUE CERTI- FICATE~, SERIES 1971. BE IT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA: ARTICLE I STATUTORY AUTHORITY, FINDINGS AND DEFINITIONS SECTION 1.01. AUTHORITY OF THIS ORDINANCE. This Ordinance is adopted pursuant to the Charter of the City of Sanford, Florida, consti- tuting Chapter 26210, Laws of Florida, Acts of 1949, as amended, and othe~ applicable provisions of law, and pursuant to Section 3.04 (L) of an ordinance entitled: "AN ORDINANCE AUTHORIZING THE CONSTRUCTION OR ACQUI- SITION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE COMBINED WATER AND SEWER SYSTEM OF THE CITY OF SANFORD, FLORIDA, AND AUTHORIZING THE ISSUA OF $1,175,000 WATER AND SEWER REVENUE CERTIFICATES FOR SUCH PURPOSES," adopted by the City Commllssion of the City of Sanford on the 14th day of December, 1953 (hereinafter referred to as "Original Ordinance"), and is supplemental to said Original Ordinance. SECTION 1.02. FINDINGS. It is hereby ascertained, determined and declared: A. That the City of Sanford, Florida (hereinafter called the "City"), now owns, operates and maintains a combined Water and Sewer System for the purpose of supplying water and sewerage services in and to said City and its inhabitants. B. That it is necessary and essential to construct and acquire additions, extensions and improvements to said combined Water and Sewer System, as provided herein, in order to preserve the public health and safety of the citizens of the City of Sanford, and it is essential to physical and economic welfare of said City that such improvements be accomplished as provided in this Ordinance. C. That said Original Ordinance, in Section 3.04 (L) thereof, provides for the issuance of additional pari passu certificates under the terms, limitations and conditions provided therein, and the issuance of the Certificates authorized by this ordinance complies fully with the terms, limitations and conditions of said section. Do That the City is authorized to issue the Certificates authorized herein as pari passu additional obligations within the authorization contained in Section 3~04 (L) of said Original Ordinance~ E. That the net revenues derived or to be derived from said Water System of the combined Water and Sewer System are pledged in an amount sufficient for the payment of the interest on the following out- standing obligations of said City, together with an amount equal to $6~260 per annum for Sinking Fund purposes: $275,000 Series B Refunding Bonds, dated March 1, 1937, and all maturing September 1, 1977, being the bonds now outstanding of an original issue of $626,000 Series B Refunding Bonds authorized by resolution of the City Commission of said City adopted on February 1, 1937, hereinafter sometimes referred to as "Outstanding Bonds of 1937o" That the holders of said Outstanding Bonds of 1937 have a first lien on the net revenues derived from the operation of said Water System of said combined Water and Sewer System~ in the amount above stated, which lien is prior and superior to the lien on such net revenues of the holders of outstanding certificates of an issue of $1,175~000 Water and Sewer Revenue Certificates dated November 1, 1953~ issued pursuant to said Original Ordinance, to the lien on such net revenues of the holders of the outstanding certificates of an issue of $275,000 Water and Sewer Revenue Certificates~ dated November 1~ 1954, issued pmrsuant to an ordinance supplemental to said Original Ordinance, to the lien on such net revenues of the holders of the outstanding certificates of an issue of $200,000 Water and Sewer Revenue Certificates, dated May 1, 1962, issued pursuant to an ordinance supplemental to said Original Ordinance, to the lien on such net revenues of the holders of the outstanding certificates of an issue of $800,000 Water and Sewer Revenue Certificates, dated May 1, 19~4~ issued pursuant to an ordinance supplemental to said Original Ordinance, and to the lien on such net revenues of the holders of the Certificates authorized to be issued by this Ordinance. F. That the revenues of the Water System of said combined Water and Sewer System sre not pledged or encumbered in any manner, except as described in subsection E above~ and the revenues to be derived from the Sewer System of said combined Water and Sewer System are not pledged or encumbered in any manner, except for said outstanding Water and Sewer Revenue Certificates, dated November I, 1953, issued pursuant to said Original Ordinance; said outstanding Water and Sewer Revenue Certificates, dated November 1, 1954; said outstanding Water and Sewer Revenue Certificates, dated May 1, 1962; said outstanding Water and Sewer Revenue Certificates, dated May 1, 1964 (herei~after sometimes collectively referred to as "Outstanding Certificates"); and the Certificates authorized to be issued pursuant to this Ordinance. G. That the estimated revenues to be derived in each year hereafter from the operation of said combined Water and Sewer System will be sufficient to pay all the cost of the Water and Sewer System~ the principal of to be issued pursuant to this Ordinance, operation and maintenance of said and inter~st on the Certificates and said Outstanding Certificates as the same become due and payable~ and all sinking fund, reserve, and other payments provided for in this Ordinance and in said Original Ordi- nance and required payments for all other obligations payable from said revenues as the same become due. Ho That the principal of and interest on the Certificates to be issued pursusnt to this Ordinance and all of the sinking fund, reserve, and other payments provided for in this Ordinance will be paid solely from the revenues deri~ed from the operation of said combined Water and Sewer System and shall not constitute a debt of said City or be a lien on any real estate therein. SECTION 1.03. ORDINANCE CONSTITUTES CONTRACT. In consideration of the acceptance of the Certificates authorized to be issued hereunder by those who shall hold the same from time to time~ this Ordinance and said Original Ordinance shall be deemed to be and shall constitute a contract between the City of Sanford, Florida~ and such Certificate holders; and the covenants and agreemenvs herein set forth to be performed by said City shall be for the equal benefit~ protection and security of the legal holders of any and all such Certificates and the coupons attached thereto~ all of which shall be of equal rank and without preference, priority or -3- distinction of any of the Certificates or coupons over any other thereof except as expressly provided therein and herein. SECTION 1.04. DEFINITIONS. That all the definitions contained in Section 1.04 of said Original Ordinance, in addition to the definitions contained herein~ shall apply fully to the Certificates issued hereunder. ARTICLE II AUTHORIZATION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO SAID COMBINED WATER AND SEWER SYSTEM SECTION 2.01. AUTHORIZATION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS. That there is hereby authorized the construction and acquisition of additions, extensions and improvements to said combined Water and Sewer System, consisting of but not limited to the installation of secondary waste water treatment facilities and other purposes necessary~ appurtenant or incidental thereto, all in accordance with the over-all plans and specifications heretofore prepared by Clark, Dietz & Associates, Inc., Consulting Engineers of Urbana~ Illinois, and heretofore filed with and approved by this Commission, together with such modifications, changes or alterations as shall be necessary and desirable and approved by this Commission and the Consulting Engineers, at an estimated cost of $1,325,000. Such cost shall be deemed to include but not limited to the construction or acquisition of said additions, extensions and improvements to said Water and Sewer System; the acquisition of any lands or interest therein or of any fixtures, equipment or properties deemed necessary or desirable there- for~ interest upon certificates issued pursuant to this Ordinance to and including November 1, 1972; engineering and legal expenses; expenses for financial services or fiscal agents; expenses for estimates of costs of revenues; expenses for plans~ specifications and surveys; expenses of the authorization, issuance and sale of the Certificates authorized by this Ordinance; and such other expenses as may be necessary or incidental to the financing authorized by this Ordinance and the construction and acquisition of said additions, extensions and improvements to said combined Water and Sewer System. ARTICLE III AUTHORIZATION, TERMS, SECTION 3.01. purpose of financing the EXECUTION AND REGISTRATION OF CERTIFICATES AUTHORIZATION AND TERMS OF CERTIFICATES. For the cost of the construction and acquisition of said additions, extensions and improvements combined Water and Sewer System, there and Sewer Revenue Certificates~ Series Florida (hereinafter shall i971, called "Certificates"), to said be issued negotiable Water of the City of Sanford, in the aggregate principal shall cease on any as provided above, provided for. amount of One Million Three Hundred Twenty-five Thousand Dollars ($1,325,000). Said Certificates shall be dated November 1, 1971; shall be in the denomina- tion of $5,000 each; shall be known as '~Water and Sewer Revenue Certificates, Series 1971"; shall be numbered consecutively in numerical order from one upward; shall bear interest at such rate or rates not exceeding the maximum legal rate, such interest being payable semiannually on May 1 and November 1 in each year; shall be payable as to both principal and interest at the principal office of the Florida State Bank of Sanford, Sanford, Florida~ in lawful money of the United States of America; shall not be registrable; and shall mature serially in numerical order on November 1 at such time or times not exceeding thirty (30) years from the date thereof and in such amounts as shall be determined by the City prior to the sale of the Certi- ficates. The Certificates may be redeemed prior to their stated dates of maturity, either in whole or in part~ at such times and upon such terms as shall be determined by the City prior to the sale thereof. A notice of prior redemption of said Certificates shall be pub- lished at least once, at least thirty (30) days prior to the date of redemption in a financial papar published in the City of New York. Interest of the Certificates duly called for prior redemption, on the redemption date if payment thereof has been duly SECTION 3.02. FORM OF CERTIFICATES AND COUPONS. the Certificates and coupons shall be of substantially the with such omissions~ insertions and variations as may be necessary and desirable and authorized or permitted by this Ordinance or any subsequent ordinance adopted prior to the issuance thereof. Said Certificates shall be executed in the manner provided in said Original Ordinance and shall in all respects be subject to the conditions provided in said Original Ordi- nance, except that such Certificates and the validation legend appearing thereon may be executed by the facsimile signatures of the Mayor and City Clerk, provided that the sigrature of either the Mayor or City Clerk be The text of following tenor, manually applied to said Certificates and the corporate seal of the City or a facsimile thereof may be imprinted, impressed or otherwise reproduced thereon. The coupons attached to the Certificates shall be executed by the facsimile signatures of said Mayor and City Clerk. Said Certificates shall be in substantially the following form: NO. UNITED STATES OF AMERICA STATE OF FLORIDA CITY OF SANFORD WATER AND SEWER REVENUE CERTIFICATE SERIES 1972 $5,000 KNOW ALL MEN BY THESE PRESENTS, That the City of Sanford~ Florida (hereinafter called "City"), for value received, hereby promises to pay to the bearer, from the special funds hereinafter mentioned, the principal sum of FIVE THOUSAND DOLLARS and to pay, solely from such special funds, interest thereon from the date hereof~ at the rate of per centum ( %) per annum until payment of the principal sum, such interest to the maturity hereof, being payable semiannually on the first day of May and the first day of November in each year upon the presentation and surrender of the annexed coupons as they severally fall due. Both principal of and interest on this Certificate are payable in lawful money of the United States of America at the ~orida State Bank of Sanford, Sanford, Florida. This Certificate is one of an authorized lssue of certificates in the aggregate principal amount of $1,325,000 of like date, tenor and effect, except as to number, interest rate and date of maturity, issued to finance the cost of the construction and acquisition of extensions, addi- tions and improvements to the combined Water and Sewer System of the City (hereinafter called "system"), under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, including particularly Chapter 26210, Laws of Florida, Special Acts of 1949, as amended and supplemented, and other applicable provisions of law, and Ordinance No. 532, enacted by the City on the 14th day of December, 1953, as supplemented by Ordinance No. · enacted on the day of , 19. (hereinafter collectively ca~ed "Ordinance"), and is subject to all the terms and conditions of such Ordinance. It is provided in such Ordinance that the Certificates of this issue will rank on a parity with the outstanding Water and Sewer Revenue Certificates dated November 1, 1953; the Water and Sewer Revenue Certifi- cates dated November 1, 1952; the Water and Sewer Revenue Certificates dated May 1, 1962; and the Water and Sewer Revenue Certificates dated May 1, 1964 (hereinafter called "Outstanding Certificates") as to lien and sources of security. This Certificate, the Outstanding Certificates, and the coupons appertaining thereto are payable solely from and secured by a lien upon and pledge of the net revenues derived by the City from the operation of the system in the manner provided in the Ordinance. The lien of the holders of the Certificates of this issue and of the holders of the Out- standing Certificates on the net reven~es of the Water System of the com- bined Water and Sewer System is jmnior, inferior and subordinate to the lien thereon of the holders of certain outstanding Series B Refunding Bonds of the City dated March I, 1937. Notice by the Ordinance. (Insert Redemption Provisions) of such redemption shall be given in the manner required -6- This Certificate does not constitute an indebtedness of the City within the meaning of any constitutional or statutory provision or limita- tion, and it is expressly agreed by the holder of this Certificate and the coupons appertaining thereto that such holder shall never have the right to require or compel the exercise of the ad valorem taxing power of the City for the payment of the principal of and interest on this Certificate or the making of any sinking fund, reserve or other payments provided for in the Ordinance. ' It is further agreed between the City and the holder of this Certificate that this Certificate and the obligation evidenced thereby shall not constitute a lien upon the system or any part thereof or on any other property of or in the City, but shall constitute a lien only on the net revenues derived from the operation of the system in the manner provided in the Ordinance~ The City~ in the Ordinance, has covenanted and agreed with the holders of the Certificates of this issue to f~x~. establish and maintain such rates and collect suoh fees~ rentals or other charges for the ser- vices of the system,and to ~evise the same from time to time whenever necessar as wi~ · ~ · ~ Y, ~1 alway~ provide revenues in each year sufficient to pay ~±~ costs of operation and maintenance of t~e syste~ in such . ~undred thirty per centum (1~0%) of the ~rinci~al mn such year on the Certificates of this issue~ and on ali. other obliga- tions payable on a parity therewith~ plus one hundred per centum (100~) of all reserve and other payments Drovideg for in such Ordinance, and that such rates, fees, rentals or ot~er charges shall not be reduced so as to be insufficient to provide adequate revenues for such purposes; and the City has entered into certain further Covenants with the holders of the Certificates of this z.osue for the terms of which reference is made to the Ordinance. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Certificate exist, have happened and have been performed in regular and due form and time as required by the Laws and Cnnstitution of the State of Florida applicable thereto, and that the issuance of the Certificate of this issue does not violate any constitu- tional or statutory limitation or provision~ This Certificate and the coupons appertaining thereto are and have all the qualities and incidents of a negotiable instrument under the law merchant and Laws of the State of Florida. IN WITNESS WHEREOF~ the City of Sanford, Florida, has issued this Certificate and has caused the same to be signed by its Mayor and attested and countersigned by its City Clerk, either manually or with thier facsimile signatures, and the corporate seal of said City or a fac- simile thereof to be affixed~ impressed, imprinted, lithographed or reproduced hereon and the interest coupons hereto attached to be executed with the facsimile signatues of such officers; all as of the first day of November, 1971. (SEAm) ATTESTED AND COUNTERSIGNED City Clerk CITY OF SANFORD, FLORIDA Mayor No. FORM OF COUPON $ On the first day of , 19 , unless the Certificate to which this coupon is attached is callable and--has been duly called for prior redemption and provision duly made for the payment thereof~ the City of Sanford, Florida, will pay to the bearer at the Florida State Bank of Sanford, Sanford, Florida, from the special funds described in the Certi- ficate to which this coupon is attached, the amount shown hereon in lawful money of the United States of America~ upon presentation and surrender of this coupon, being six months' interest then due on its Water and Sewer Revenue Certifi~-~ ~e, Series 1971, dated November 1, 1971, No. (SEAL) ATTESTED AND COUNTERSIGNED City Clerk CITY OF SANFORD, FLORIDA Mayor VALIDATION CERTIFICATE This Certificate is one of the seri~ of Certificates which were validated and confirmed by judgment of the Circuit Court for Seminole County, Florida, rendered on the day of , 19__. City Clerk Mayor ARTICLE IV SECURITY OF CERTIFICATES SECTION 4.01. CERTIFICATES ON A PARITY WITH THE WATER AND SEWER REVENUE CERTIFICATES DATED NOVEMBER 1, lP53; THE WATER AND SEWER REVENUE CERTIFICATES DATED NOVEMBER 1, 1954; THE WATER AND SEWER REVENUE CERTIFICATES DATED MAY 1: 1962; AND THE WATER AND SEWER REVENUE CERTIFi- CATES DATED MAY 1, 1964. The Certificates issued pursuant to this Ordinance shall be on a parity and rank equally, as to lien on and source and security for payment from the revenues of said combined Water and Sewer System and in all other respects with the outstanding Water and Sewer Revenue Certifi- cates,dated November 1, 1953, issued pursuant to said Original Ordinance; with the outstanding Water and Sewer Revenue Certificates, dated November I, 1954, issued pursuant to an ordinance supplemental to said Original Ordi- nance; the Water and Sewer Revenue Certificates, dated May 1, 1962, issued pursuant to an ordinance supplemental to said Original Ordinance; and the Water and Sewer Revenue Certificates, dated May 1, 1964, issued pursuant to an ordinance supplemental to said Original Ordinance (hereinafter sometimes referred to as "Supplemental Ordinances") and any pari passu additional obligations hereafter issued pursuant to and within the terms, limitations and conditions contained in Section 3.04 (L) of said Original Ordinance. SECTION 4.02. CERTIFICATES SECURED BY ORIGINAL ORDINANCE. The Certificates authorized by this Ordinance shall be deemed to have been issued pursuant to said Original Ordinance (to which this Ordinance is supplemental) as fully and to the same extent as the $1,1Z5,000 Water and Sewer Revenue Certificates, dated November 1, 1953, originally issued pursuant to said Original Ordinance; the $275,000 Water and Sewer Revenue Certificates, dated November 1, 1954, issued pursuant to an ordinance supplemental to said Original Ordinance; the $200,000 Water and Sewer Revenue Certificates, dated May 1, 1962, issued pursuant to an ordinance supplemental to said Original Ordinance; and the Water and Sewer Revenue Certificates, dated May 1, 1964, issued pursuant to an ordinance supple- mental to said Original Ordinance; and all of the covenants and agreements contained in said Original Ordinance and the additional covenants contained in said Supplemental Ordinances shall be deemed to have been made for the benefit of the holders of the Certificates issued pursuant to this Ordinance and of any pari passu additional obligations hereafter issued within the terms, limitations and conditions contained in Section 3.04 (L) of said Original Ordinance as fully and to the same extent as for the holders of said Outstanding Certificates. Ail of the covenants, agreements and provisions of said Original Ordinance and the additional covenants contained in said Supplemental Ordinances (except as to details inconsistent with this Ordinance) shall be deemed to be part of this Ordinance to the same extent as if incorporated verbatim in this Ordinance and shall be fully enforceable in the manner provided in said Original Ordinance and said Supplemental Ordinances by any of the holders of Certificates issued pursuant to this Ordinance. The Water and Sewer Revenue Fund, the Water and Sewer Revenue 1953 Sinking Fund and the Reserve Account therein, and the Renewal and Replacement Fund~ created and established pursuant to said Original Ordi- nance and continued and maintained by said Supplemental Ordinances, shall be continued and maintained as provided in said Original Ordinance as long as any of the Certificates issued pursuant to this Ordinance or interest thereon are outstanding and unpaid; and the payments into said Water and Sewer Revenue 1953 Sinking Fund and the Reserve Account therein shall be increased by the amounts necessary for the Certificates issued pursuant to this Ordinance, as set out below, and no preference, priority or distinction of any kind shall exist or be exercised in payments from said Water and Sewer Revenue 1953 Sinking Fund or the Reserve Account therein between said Outstanding Certificates and the Certificates issued pursuant to this Ordinance and any peri passu additional obligations hereafter issued pursuant to the terms,limitations and conditions contained in said Origi- nal Ordinance. The payments into said Water and Sower Revenue 1953 Sinking Fund shall be increased by the deposit therein, on the fifteenth day of each month immediately following the issuance of the Certificates author- ized hereunder, of such sums as will be sufficient to pay one-sixth of the interest maturing on the Certificates on the next semiannual interest payment date and~ beginning with the fifteenth day of the month which is twelve months prior to the first principal maturity date of such Certifi- cates, one-twelfth of the amount of principal maturing on the next prin- cipal maturity date; provided, however, that interest on the Certificates herein authorized, to and including November 1, 1972, may be paid from the Construction Trust Fund. The City shall also, from the moneys remaining in said Water and Sewer Revenue Fund, deposit in the Reserve Account in said Water and Sewer Revenue 1953 Sinking Fund, in addition to the amounts required to be deposited therein for the Outstanding Certificates, on the fifteenth day of each month immediately following the issuance of the Certificates authorized hereunder, an amount equal to 20~ of the amount required to be deposited in the Water and Sewer Revenue 1953 Sinking Fund on such date as provided above; provided that no further payment shall be required to be made into said Reserve Account When there shall have been deposited therein, and as long as there remains therein, an amount equal to 120~ of the largest amount of principal and interest which will be required for the payment of principal of and interest on the Certificates herein authorized to be issued and on the Outstanding Certificates in any one succeeding year. SECTION 4.03. BOND REDE~PTION FUND FOR THE OUTSTANDING BONDS OF 1~37. The City further Covenants that it will use all the surplus revenues from said Water and Sewer System, which the City is entitled to receive as general funds under Section 3.04 (D) (7) of said Original Ordinance, after all other payments required by Section ~.04 (D) (7) of said Original Ordinance, for the maintenance of the fund for the redemp- tion of said Outstanding Bonds of 1937, created by an ordinance dated April 17, 1962, supplementing said Original Ordinance and designated as the "1937 Bond Redemption Fund"; said 1937 Bond Redemption Fund to be continued and maintained so long as any of the Certificates issued pur- suant to this Ordinance or interest thereon are outstanding and unpaid. From such surplus revenues, the City shall deposit in said 1937 Bond Redemption Fund the following amounts, on the fifteenth day of each month, at the following times: September September 15, 1972 to August 15, 1973 September 15, 1973 to August 15, 1974 September ].5, 1974 to August 15, 1975 - September 15~ 1975 to August 15, 1976 - September 15, 1976 to August 15, 1977 - 15, 1971 to August 15, 1972 - $1,978.00 per month 2,229.00 per month 2,312.00 per month 2,478.00 per month 2,728.00 per month 2,895.00 per month said 1937 3.o4 Such surplus revenues shall not be deposited by said City into Bond Redemption Fund unless all of the provisions of Section 1 through 6 thereof, of the Original Ordinance have been fully complied with. The moneys on deposit in said 1937 Bond Redemption Fund may be used by the City at any time for the purchase of Outstanding Bonds of 1937 at a price not exceeding the par value thereof and accrued interest thereon. The City shall, on July 1, 1972, and on each July 1 thereafter~ whenever the aggregate amount of moneys in said 1937 Bond Redemption Fund exceeds $20,000, call for tenders for the purchase of a sufficient amount of such Outstanding Bonds of 1937 to exhaust the amount of moneys in said 1937 Bond Redemption Fund as nearly as possible; such tenders to be received by said City between August 1 and August 8 of each year, the exact date to be determined by resolution of the City; and the City, on receipt of such tenders, may reject or accept the same; provided, however, that such tenders must be accepted by the City if the moneys in said 1937 Bond Redemption Fund cannot be invested in direct obligations of the United States Government which would produce a net interest yield of not less than 3% to said City. In the event the City refuses to accept such tenders, all moneys in excess of $20,000 then on deposit in said Fund shall be invested in direct obligations of the United States of America maturing not later than September 1, 1977. No further payment will be required to be made into said Bond Redemption Fund when the amount on -11- deposit therein is sufficient to retire all of the then Outstanding Bonds of 1937. Thereafter, from the surplus revenues remaining and prior to the use of such surplus revenues for the purchase or redemption of the Outstanding Certificates as provided for in Section 3.04 of said Original Ordinance, there may be transferred to the general funds of said City in each year an amount of not exceeding $40,000; provided, however, that as long as any of said Outstanding Certificates are unpaid, all of the provisions and covenants contained in said Original Ordinance, as now existing and as the same may be legally amended, shall be fully complied with and performed. ARTICLE V APPLICATION OF CERTIFICATE PROCEEDS SECTION 5.01. CONSTRUCTION TRUST FUND. Ail moneys received from the sale of any or all of the $1,325,000 Certificates issued pursuant to this Ordinance shall be deposited by the City of Sanford in a trust fund, to be known as the "Construction Trust Fund of 1971," and shall be used and applied by the City solely to the payment of the cost of the construction and acquisition of the additions, extensions, and improve- ments to said combined Water and Sewer System, as provided in this Ordinance~ and for no other purpose whatsoever. Said fund shall be main- tained by the City in an incorporated bank or trust company which has an aggregate capital and surplus of not less than $1,000,000; and all moneys at any time in said Construction Trust Fund shall be continuously secured in the same manner as deposits of state and municipal funds are required to be secured by the present laws of the State of Florida. No withdrawals shall be made from said Construction Trust Fund, except for payment into the Reserve Account of sufficient funds so that the amount in such account will equal the largest principal and interest due in any year thereafter on the parity certificates and on the certificates issued pursuant to this Ordinance; legal and engineering expenses; expenses for financial or fiscal services; interest to and including November authorization and issuance except drawals on the Certificates authorized by this Ordinance 1, 1972; and expenses in connection with the of the Certificates authorized by this Ordinane~ upon the certificate of the consulting engineers that such with- are proper and are for purposes provided for in this Ordinance. -12- If for any reason such proceeds, or any part thereof, are not necessary for or are not applied to such purposes, then such unapplied proceeds shall be deposited by the City in the Reserve Account in the Water and Sewer Revenue 1953 Sinking Fund established pursuant to said Original Ordinance and shall be used only for the purposes provided therein. Ail moneys in such Construction Trust Fund shall constitute a trust fund for such purposes, and there is hereby created a lien upon such fund, until so applied, in favor of the holders of the Certificates issued pursuant to this Ordinance. Any funds on deposit in the Construction Fund which, in the opinion of the City, acting upon the recommendation of the consulting engineers, are not ~mmediately necessary for expenditure, as hereinabove provided, may be invested in direct obligations of the United States of America or placed in time deposits of banks or trust companies represented by certificates of deposit fully secured as provided by law maturing in a period of ninety-one (91) days pr less. Ail such securities shall be held by the depository bank, and all income derived therefrom shall be deposited in such Reserve Account. ARTICLE VI MISCELLANEOUS SECTION 6.01. MODIFICATION OR AMENDMENT. No material modifi- cation or amendment of this Ordinance or of any ordinance amendatory hereof or supplemental hereto may be made without the consent in writing of the holders of two-thirds or more in principal amount of the Certifi- cates then outstanding; provided, however, that no modification or amendment shall permit a change in the maturity of such Certificates or a reduction in the rate of interest thereon or in the amount of the prin- cipal obligation thereof or affecting the unconditional promise of the City to pay the principal of and interest on the Certificates as the same shall come due, from the revenues of the combined Water and Sewer System, or reduce the percentage of Certificate holders required to consent to any material modification or amendment of this Ordinance without the consent of the holders of such Certificates. SECTION 6.02. SEVERABILITY OF INVALID PROVISION. If any one or more of the covenants, shall be held contrary to agreements or provisions of this Ordinance any express provision of law or contrary to -13- the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements and provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the provi- sions of this Ordinance or of the Certificates or coupons issued here- under. SECTION 6.03. VALIDATION AUTHORIZED. The City Attorney for the City of Sanford be and he is hereby authorized and directed to pre- pare and file proceedings to validate the Certificates authorized by this Ordinance in the manner provided by law. SECTION 6.04. TIME OF TAKING EFFECT. This Ordinance shall take effect in the manner provided by law. PASSED AND ADOPTED this A.D. 1972. Ma¸ Attest: 10th day of January S E A L ) As the City ~on of the City of Sanford, ~lorida. CERTIFICATE I, H. N. Tamm, Jr., City Clerk of the City of Sanford, Florida, do hereby certify that a true and correct copy of the foregoing Ordinance No. 1053, PASSED and ADOPTED by the City Con~nission of the City of Sanford, Florida, on the 10th day of January, 1972, was POSTED at the front door of the City Hall in the City of Sanford, Florida, on the llth day of January, 1972. As t~C~L~ty dle~k~g{ City of Sanford, Florida -14-